NOTICE UNDER THE PROPOSED CONDITION 22.10(A) OF PART 2 OF SCHEDULE 1 TO THE PUBLIC TELECOMMUNICATIONS OPERATORS (“PTO”) LICENCES AND THE PROPOSED CONDITION 26.10(A) OF PART 2 OF SCHEDULE 1 TO THE CLASS LICENCES TO RUN BRANCH SYSTEMS TO PROVIDE TELECOMMUNICATIONS SERVICES (“TSL”) AND INTERNATIONAL SIMPLE VOICE RESALE SERVICES (“ISVR”)

THIS NOTICE REPLACES A NOTICE PUBLISHED IN THE LONDON AND EDINBURGH GAZETTES ON FRIDAY 5 OCTOBER 2001 WHICH WAS ALSO DUE TO BE PUBLISHED IN THE BELFAST GAZETTE ON THAT DATE BUT WHICH WAS NOT SO PUBLISHED.

CONTROLLED PREMIUM RATE SERVICES

1. On 14 September 2001, the Director General of Telecommunications (the “Director General”) in accordance with section 12(2) of the Telecommunications Act 1984 as amended by the Electronic Communications Act 2000 (the “Act”) gave 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 for the running of telecommunications systems which the Secretary of State has designated by order under section 9 of the Act as public telecommunication systems, collectively referred to hereinafter as the “PTO licences”. 2. On 1 October 2001, the Secretary of State in accordance with section 7(12) and (13) of the Act gave notice that he proposes to revoke the class licences to run branch systems to provide Telecommunications Services and International Simple Voice Resale Services (referred to hereinafter as the TSL and ISVR licences, respectively), and to grant new TSL and ISVR licences. 3. The effect of the relevant proposed modifications to the PTO, TSL and ISVR licences would be to widen the definition of what type of premium rate services (“PRS”) might be caught under those licences by replacing the current definition of ‘Controlled Services’ with the definition of ‘Controlled Premium Rate Services’. This would have the effect of strengthening 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 General. 4. The proposed modifications take the form of replacing the current Condition 22 (entitled ‘Controlled Services’) of the PTO licences with a new Condition 22 (entitled ‘Controlled Premium Rate Services’). Similarly, a new Condition 26 (which makes provision in identical terms to that of the new proposed Condition 22 of the PTO licences) will replace the current Condition 26 of both the TSL and the ISVR licences. References below are to sub-paragraphs of the proposed Condition 22 of the PTO licences, which shall also be taken to be referring to the corresponding sub-paragraphs of the proposed Condition 26 of both the TSL and the ISVR licences. 5. The text of the proposed modifications and their effect are set out in full in the Oftel Statement entitled ‘ Regulation of Premium Rate Services: Licence Modification ’ which was published on 24 July 2001. Copies of the full text of the proposed modifications and the statutory Notice are available via Oftel’s website ( www.oftel.gov.uk ) and are also available from Gabrielle Dakhama at the address below (telephone 020-7634 8735; e-mail: gabrielle.dakhama@oftel.gov.uk ). 6. The proposed Condition 22.9 provides that, for the purposes of ascertaining whether a service is a Controlled Premium Rate Service, the Director General shall determine an amount for the charge of the Call by means of which the service is obtained or the rate according to which such Call is charged or both which, when exceeded, means that sub-paragraph 22.11(a)(iii)(A) of the definition of Controlled Premium Rate Services is satisfied. 7. The procedure for making the determination is set out in the proposed Condition 22.10. However, it should be noted that the making of the final determinations will, of course, be subject to the outcome of the respective statutory public consultations, and whether the proposed modifications are finally made to PTO licences, and the TSL and ISVR licences successfully revoked and re-granted. Accordingly, the consultations on the contents of this Notice should not be taken to fetter the Director General’s discretion as to the making of the proposed modifications themselves, nor the discretion of the Secretary of State to revoke and re-grant the TSL and ISVR licences. 8. In accordance with the procedure detailed in the proposed Condition 22.10(a) of the PTO licences, on the one hand, and the proposed Condition 26.10(a) of the TSL and ISVR licences, on the other hand, the Director General is now notifying all licensees operating under those licences, together with all interested parties and the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS) that he is minded to set the amount for the charge of the Call by means of which the service is obtained at 10 pence and the rate according to which such Call is charged at 10 pence per minute. In other words, the amount for the charge of the Call by means of which the service is obtained must exceed 10 pence or the rate according to which such Call is charged must exceed 10 pence per minute in order to satisfy the definition of Controlled Premium Rate Services as detailed in sub-paragraph 22.11(a)(iii)(A) of the PTO licences and sub-paragraph 26.11(a)(iii)(A) of the TSL and ISVR licences, respectively. 9. In proposing that amount, the Director General has had regard to the current prevailing standard rates for premium rate calls of the licensees operating under the PTO licences. The Director General notes that while premium rate calls are available at a rate of less than 10 pence or 10 pence per minute, this is not standard practice, and that the vast majority of premium rate calls would be offered at a price in excess of 10 pence or 10 pence per minute. 10. The Director General is also notifying licensees of both the TSL and ISVR licences, and all other interested parties, by publishing this Notice in the London, Belfast and Edinburgh Gazettes and by placing a copy in the Official Journal of European Communities. 11. The Director General is seeking comments on the amount of the proposed charge and rate set out in this notice, and representations should 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 9 November 2001. 12. There will then be a further period of 14 days in which to make observations on any representations which have been received in accordance with the procedure outlined in the new proposed Condition 22.10. Such comments-on-comments are therfore sought by no later than 23 November 2001. The Director General will then prepare a draft determination and statement of reasons, and invite further comments for a period of not less than 14 days prior to making his final determination. As stated above, the making of the final determination will be subject to whether the proposed modifications are finally made to the PTO, TSL and ISVR licences. 13. 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. D Edmonds, Director General of Telecommunications 12 October 2001.