NOTICE UNDER SECTION 12(2) OF THE TELECOMMUNICATIONS ACT 1984

PROPOSED MODIFICATION OF ALL PUBLIC TELECOMMUNICATIONS OPERATORS (“PTO”) LICENCES

The Director General of Telecommunications (the “Director”) in accordance with section 12(2) of the Telecommunications Act 1984 as amended by the Electronic Communications Act 2000 (the “Act”) hereby gives notice that he proposes to make modifications to all telecommunications licences granted by the Secretary of State for Trade and Industry (the “Secretary of State”) under section 7 of the Act to particular persons during the period beginning on 22 June 1984 and ending on 15 June 2001 which the Secretary of State has designated by order under section 9 of the Act as having public telecommunications systems, collectively referred to hereinafter as the “PTO licences”.
The effect of the modifications, which the Director proposes to make, is set out in the Schedule below.
The reason for the proposed modifications is that it is necessary to give operators a general authorisation to refuse to connect apparatus or to disconnect apparatus or withdraw apparatus from service where that apparatus is damaging the network. However this will be balanced by a requirement that where operators do take action under this condition they will be required to inform the Secretary of State and the Director at the earliest practicable opportunity. The reasons are more particularly set out in the Explanatory Memorandum entitled “Explanatory Memorandum for section 12 Modification to Standard Licence Condition 5(4)(c)”.
Section 12A(7) of the Act provides that a modification is deregulatory if:

(a) the effect of the conditions to be modified is to impose a burden affecting the holder of the licence in which those conditions are included;
(b) the modification would remove or reduce the burden without removing any necessary protection; and,
(c) the modification is such that no person holding a licence granted under section 7 of the Act to a particular person would be unduly disadvantaged by the modification in competing with the holder of the licence in which those conditions are included.

In the opinion of the Director, the proposed modifications to the PTO licences are deregulatory within the meaning of section 12A (7) for the reasons set out in the Explanatory Memorandum.
The consultation procedure comprises two stages. In the first stage, representations on or objections to the proposed modifications may be made to:

Frank Phillips, OFTEL, 50 Ludgate Hill, London EC4M 7JJ (telephone 020 7634 8871, e-mail frank.phillips@oftel.gov.uk) by no later than 15 August 2001.

Any confidential information should be clearly marked as such and separated out into a confidential annex. All representations or objections received by Oftel, with the exception of material marked confidential, will be made available for inspection in Oftel’s Research and Intelligence Unit.
In the second stage, interested parties are invited to send comments to Frank Phillips, details as above, by no later than 5 September 2001, on representations or objections received in the first stage.
Any representations against the proposed modifications must be accompanied by a written statement that they are to be taken as objections to the modifications.
Copies of the full text of the proposed modifications and the Explanatory Memorandum, and a full list of licences affected, can be obtained from Julia Bradford at the above address (telephone 020 7634 8838, e-mail julia.bradford@oftel.gov.uk). Copies can also be obtained from Oftel’s website.
Schedule
1. Condition 5(4)(c), which reads as follows:
“(c) is in the opinion of the Secretary of State and the Director causing serious damage to a network or harmful radio interference or harm to the network or its functioning and the Licensee has been authorised by the Secretary of State and the Director to refuse connection, or to disconnect such apparatus or withdraw it from service.”
To be deleted and replaced by the following wording:
“(c) is causing serious damage to a network or harmful radio interference or harm to the network or its functioning; and the Licensee may refuse connection of that apparatus, disconnect that apparatus or withdraw that apparatus from service provided the Licensee at the earliest practicable opportunity informs the Secretary of State and the Director of its action; or”