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

PROPOSED MODIFICATIONS TO THE LICENCES OF ALL PUBLIC TELECOMMUNICATION OPERATORS (PTO)

1. 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 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 29 August 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”. 2. The effect of the proposed modifications to the PTO licences would be to widen the definition of what type of premium rate services (“PRS”) might be caught under the PTO licences by replacing the current definition of ‘Controlled Services’ with the definition of ‘Controlled Premium Rate Services’. In broad terms, only live PRS are currently caught by the former definition. As a result, there is no code of practice governing the provision of PRS other than live PRS (such as recorded PRS) that can be recognised by the Director under the PTO licences. The proposed modifications take the form of replacing the current Condition 22 (Controlled Services) of the PTO licences with a new Condition 22 (Controlled Premium Rate Services). 3. The reason why the Director is making the above-mentioned proposal is to strengthen the regulatory regime in the PRS industry, so that the provision of a potentially larger category of PRS (other than simply live PRS) could be governed by a code of practice recognised by the Director. In this way, the Director will have more ‘backstop’ powers to require network operators to cut off such services that are not complying with the code of practice administered by the Independent Committee for the Supervision of Standard of Telephone Information Services (“ICSTIS”) following it making such a request to the Director and the Director considers it appropriate to make such a direction. 4. The Director also proposes to make modifications of a relatively minor drafting nature to the current Condition 23 (Provision of Special Facilities Relating to Chatline and Message Services) by replacing it with a new Condition 23. The Director is making this proposal because it is necessary to refer to certain definitions now contained in the proposed new Condition 26 and the Director also considers that Condition 23 could be made clearer in certain other parts. 5. The text of the proposed modifications and their effects are set out in full in the Oftel Statement entitled ‘Regulation of Premium Rate Services: Licence Modification’, which was published on 24 July 2001. The document is available via Oftel’s website (www.oftel.gov.uk). The Director is seeking comments on the proposed modifications to the PTO licences. Interested parties have 28 days from the day after publication of this notice to make representations on the proposed modifications. There will be no further period for interested parties to make comments on any comments made during the above-mentioned period. In accordance with section 12(6D) of the Act, representations made against the proposed modifications shall be taken to constitute an objection only if they are accompanied by a written statement that they are to be so taken. 6. Copies of the full text of the proposed modifications (and a full list of licences affected) are also available from Gabrielle Dakhama at the above address (telephone: 020 7634 8735; e-mail: gabrielle.dakhama@oftel.gov.uk. 7. Representations on the proposed modifications can be made to Gavin Daykin, Regulation of PRS Consultation, Numbering Unit OFTEL, 50 Ludgate Hill, London EC4M 7JJ (telephone: 020 7634 5338; e-mail: gavin.daykin@oftel.gov.uk) by no later than 5 October 2001. 8. The Director is required by section 12(2) of the Act to consider any representations or objections on the proposed modifications duly made and not withdrawn. Subject to such consideration, and to receiving any objection to the respective modifications by the licensees of the PTO licences, the Director proposes to make the modifications as soon as practicable after the statutory consultation has been completed. 9. Any confidential material should be clearly marked as such and separated out into a confidential annex. All representations and objections received by Oftel, with the exception of material marked confidential, will be made available for inspection in Oftel’s Research and Intelligence Unit.