DETERMINATION RELATING TO CONTROLLED PREMIUM RATE SERVICES UNDER THE PROPOSED CONDITION 22 OF PART 2 OF SCHEDULE 1 TO THE PUBLIC TELECOMMUNICATIONS OPERATOR (“PTO”) LICENCES AND UNDER THE PROPOSED CONDITION 26 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

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 Director General hereby gives notice that he proposes to make a determination under sub-paragraph 22.5 of the new proposed Condition 22 of the PTO licences and sub-paragraph 26.5 of the new proposed Condition 26 of the TSL and ISVR licences to recognise a code of practice to be issued by ICSTIS (which is annexed to the Director General’s draft determination) for the purposes of sub-paragraphs 22.3 and 26.3 of those respective licences. 5. The making of the final determination will, of course, be subject to the outcome of the respective statutory public consultations and whether the proposed modifications are finally made to the PTO licences, and the TSL and ISVR licences successfuly revoked and re-granted. The consultation on the draft determination shall not be taken to fetter the Director General’s discretion as to the making of the proposed modifications themselves, nor the Secretary of State’s discretion as to the revoking of the TSL and ISVR licences. 6. The text of the proposed draft determination together with the Explanatory Memorandum is available via Oftel’s website (www.oftel.gov.uk) or may be obtained from Oftel’s Research and Intelligence Unit at the below address. 7. Representations on the proposed draft determination may be made to: Gavin Daykin, Oftel, 50 Ludgate Hill, London EC4M 7JJ (telephone 020 7634 5338; fax 020 7634 8784; e-mail: gavin.daykin@oftel.gov.uk) by no later than 9 November 2001. There will be no further period for interested parties to make comments on any comments made during the above-mentioned period. 8. 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 Edmond, Director General of Telecommunications 12 October 2001.