• further statement on service provider proposals
• National Numbering Scheme statement, statutory consultation on National Numbering Scheme conventions
• draft determination of final charges for standard services for 1995/1996
• consultative document on interoperability
• consultative document on universal service giving firm proposals and draft licence modifications

• Report from their Educational Task Force, with recommendations on charges and standards of service for provision of telecommunications to educational establishments
• Statement on Number Portability (all operators except mobile) and licence modifications, and a Consultative Document on Mobile Number Portability and licence modifications
• Statement on promoting competition, including an updated classification of BT’s businesses (necessary for policing anti-competitive behaviour) and a measure giving BT greater flexibility to offer lower prices to independent service providers. The statement also announced OFTEL’s intention to set up an Independent Service Provider Forum for ISPs to raise issues
• consultation document on Universal Services, with proposals for basic levels of universal service to 2001.

• document on domestic obligations in a global market, essentially relating to BT’s progress as a global telecommunications company
• guidelines on the operation of the Fair Trading Condition, and a Fair Trading Condition Enforcement Procedure
• guidelines on the Regulation of Conditional Access for Digital Television Services, setting out how the Regulator would propose to deal with anti-competitive behaviour in relation to the provision of conditional access services.

• a programme for the removal of restrictions on how mobile telephone operators can market airtime and distribute their products
• proposals to amend operators’ licences to provide telephone number portability, to allow customers to keep their existing number when changing operators. Until now this requirement has only been applied to BT, although 11 other operators do offer the service
• proposals for the organisation of interoperability of services across competing networks, both at customer interfaces - between networks and customer premises equipment - and at the network interfaces at which network operators interconnect their systems (OFTEL, April 1997b).

• the composition of the body to advise on enforcing the Fair Trading Condition
• amendments to the proposals for network charge controls, now to run from 1 October 1997(see retail pricing above)
• consultation about the proposed merger of BT with MCI (a US telecom company) to create a major global telecom company - called Concert

Also, the Department of Trade and Industry issued the Cordless Class Licence, under which telecommunications operators will be able to offer digital public access cordless services to others on a commercial basis without needing to apply for a licence or pay a fee.

• OFTEL began a consultation process with the telecommunications industry on connecting schools to the information superhighway, following receipt of BT’s proposals on the subject.
• the Independent Television Commission (ITC) announced the award of licences for broadcasting digital terrestrial TV in the UK to the British Digital Broadcasting Consortium (BDB)

• BT had been instructed to change certain procedures associated with its personal numbering service
• Proposals aimed at ensuring that all schools in the UK have access to the Internet at affordable rates, with the participation and co-operation of the telecommunications industry, had been published
• Mobile telephone owners would, from 1998, be able to keep their numbers when switching to another mobile network.
• Proposals for extending the regulatory regime covering the operation of conditional access services in the digital domain were published jointly by OFTEL and the Department of Trade and Industry.
• Final plans for network charges - the way BT charges other network operators in the UK for carrying their calls over its network - were published
• Measures to ensure that BT continues to meet its UK licence obligations as it becomes an international company were announced.

• BT is required to constrain its prices for the lowest spending 80% of its residential customers to 4.5% below the rate of inflation in each year
• BT announced a 10% cut in evening national call rates
• The status of Mercury plc as a "Well Established Operator" was changed as regulatory constraints on the company on certain international routes were lifted.

• OFTEL published plans for collecting and publishing information on international calls between the UK and other countries
• wide-ranging proposals for the future regulation of the Information Society were set out by OFTEL.

• 3 modifications were being made to British Telecom’s licence
• Agreement had been reached with the 4 mobile telephone operators to a scheme where, by 1 January 1999, mobile telephone users will be able to keep their number when they change operators
• A framework would be provided to encourage BT and other telecom operators to share underground cable ducts and telegraph poles, instead of each operator having to build new ones.
• Details of how BT’s interconnection charges had been set were published

• OFTEL published guidelines on wiring on customer premises.
• OFTEL set out its approach to determination of Significant Market Power in regulation of the UK telecommunication industry
• OFTEL issued guidelines for access charges for digital television: it does not propose to set a price control but expects these to be negotiated. It will only intervene in the event of a complaint.
• OFTEL issued a code of practice for services to disabled customers: the proposal is for the incorporation into every operator's licence of a requirement for a basic level of services and facilities.

• OFTEL issued a consultation document on the rights and obligations of operators under the EU interconnection Directive. It also explained the identification of BT and Kingston Communications as having Significant Market Power in the UK leased lines market.
• evidence was heard by the House of Commons Select Committee Inquiry into Audio-Visual Communications and the Regulation of Broadcasting, including a submission by OFTEL entitled "Beyond the Telephone, the Television and the PC" (OFTEL, March 1998).
• the Office of Fair Trading (OFT) published draft guidelines on the provisions of the proposed Competition Bill, which will, if enacted, replace several Acts of Parliament which currently regulate competition between businesses. The Bill foresees concurrent enforcement between the OFT and the Regulators of the utilities - including OFTEL
• the Department of Trade & Industry published a Green Paper entitled "A Fair Deal for Consumers: Modernising the Framework for Utility Regulation", covering water, gas, electricity and telecoms. Responses are invited until 31 May 1998
• the Wireless Telegraphy Act received Royal Assent, and will pass into law on 18 June 1998. The Act is the first major modernisation of the radio licensing framework for almost 50 years. Charges for the use of the radio spectrum have been substantially altered (to take effect in three months time). They should encourage more efficient use of the available spectrum, and should mean that smaller users are no longer discriminated against.

• Government publishes proposals for a Secure Electronic Commerce Bill, a major part of which is the announcement of amendments to BS 7799 the standard for information security management and a general code of practice. Additional elements of the Bill promote the legal recognition of digital signatures and the licensing of Trusted Third Parties (detailed comments in Section 3).
• OFTEL announces changes to the licence of Mercury Personal Communications and Orange, changing their status as Significant Market Powers (SMP) and thereby removing their obligation to provide airtime to other mobile service providers. They retain WEO (Well Established Operator) status, and OFTEL will continue to apply the regulations relating to unfair cross subsidisation from other areas of their business.
• Government publishes key IT strategy document entitled "Our Information Age"
• Publication of "Broadband Britain", a report outlining the Government's policy to give cable operators the scope to convert their networks to digital and continue their network build before they face open competition, while at the same time encouraging PTOs to provide entertainment services to those part of the UK not currently served by the cable industry.

• The Independent Television Commission (ITC), Office of Fair Trading, and OFTEL, announce the formation of The Standing Committee on Competition in Communication.
• Following successful trials during 1997, Nortel and United Utilities are to jointly develop the "Digital Power Lines" technology allowing transmission of electronic data along in situ power cables. Each will take a 50% stake in the newly formed company NOR.WEB DPL. The EC Merger Taskforce granted approval for this joint venture in March 1998.
• OFTEL announces action against fax companies who use block calling to send "junk" faxes. The move strengthens the Telecommunications Service Licence (TSL).
• President of the Board of Trade announces that restrictions on British Telecom and other public telecoms operators (PTOs) preventing them from offering broadcast entertainment nationally are to be lifted progressively.

• OFTEL announces that it has taken action against a company to stop them making telesales calls to customers who do not wish to receive them.
• The Department of Trade and Industry (DTI) announces the formation of a joint public/private company, Radio Spectrum International Consulting Limited (RSIC), to provide spectrum management consulting services to international administrators as well as providing IT services to the Radiocommunications Agency (RA).
• BT announces pilot scheme to provide Internet access without the need to subscribe to an Internet Service Provider.

• The Data Protection Act 1998 has completed its parliamentary phase and received Royal Assent, allowing it to be passed into law. But theBill will not become law by the intended October 1998 deadline. A delay will enable the consideration of secondary and complementary legislation.It is now hoped that the legislation will become effective in the New Year.
• The Department of Trade and Industry (DTI) and the Department for Culture, Media and Sport (DCMS) have jointly published a Green Paper entitled "Regulating Communications: Approaching convergence in the Information Age".
• Government announces the implementation of the revised Voice Telephony Directive (98/10/EC).
• DTI announces a public consultation on the draft Regulations for the implementation of the Telecoms Data Protection Directive (97/66/EC). It is proposed that the Regulations should come into force at the same time as the new Data Protection Act (probably by the end of 1998).
• OFTEL announces its intention to charge telecoms operators for blocks of numbers which they receive. This brings the UK into line with most other European countries, where operators are charged for all or part of number blocks they are allocated.
• OFTEL announces the introduction of Carrier Pre-Selection (CPS), a service whereby customers can be connected to the telephone network by one operator, but may send their calls via another if they wish.
• OFTEL announces changes to the Licence granted to Kingston Communications and Hull City Council to operate services in the Hull area. A number of changes to Kingston’s licence will be made by DTI by the end of 1998, in order to ensure compliance with the requirements of European legislation. To date BT has not been allowed to operate in the Hull area. However as the UK telecommunications market has opened up , it has become progressively more difficult to defend it’s exclusion from the region on competitiveness grounds.
• OFTEL grants approval for the use of set-top boxes which meet the required standards. The Independent Television Commission (ITC) is to rule on the standards for compatibility between networks.
• The Department of Trade and Industry (DTI) announces the allocation of a dedicated radiowave frequency to allow electricity, gas and water meters to be read remotely. AMR (Automated Meter Reading) will allow utilities companies to collect data not only for billing purposes, but also for measuring demand for services etc.

• Proposals for a Millenium Conformity Bill have been put before Parliament. It will be an offence under the Act to falsely claim compliance. There is no information currently available regarding a time scale for the introduction of this Bill.
• OFTEL announces the findings of its investigation into the competitiveness of access to indirect access operator services from payphones. As there are likely to be relatively few locations where it would be economic to introduce new payphones in competition with existing BT payphones (BT owns the vast majority of payphones in the UK and its payphone network covers the whole of the UK), OFTEL has determined that supply of access to other operator services from payphones is not commercially attractive for other companies and therefore BT's services could not be deemed as anti-competitive. BT has suggested that in the future directory services may be offered by an independent company.
• OFTEL proposes index-linking the Payphone Access Charge (PAC) which is charged on free phone calls (ie 0800 and 0500 numbers) from payphones. BT makes an internal charge from its Network business to its Retail business to reflect the PAC on its own calls from payphones. network. OFTEL proposes that the charge should be subject to indexation by a RPI-X factor in order to avoid the need thereafter for annual regulatory review of the level of the PAC.

• OFTEL announces that BT will be required to make changes to the provision of its directory information database, directory CD-ROM and on-line service to enable other people, who do not hold a Public Telecommunications Operators (PTO) Licence, to compete in these markets on equal terms. The change will take effect on 01/01/ 1999.
• BBC begins trials of digital television broadcasting. Sky is set to launch it’s digital satellite service at the beginning of October 1998. Digital broadcasts through aerials will begin in November, digital cable is expected to be in operation by the end of the year.
• The Independent Television Commission (ITC) announces that it will allow digital television operators to provide sets with embedded software allowing access only to those services provided by that operator. Furthermore it will not require operators to provide the corresponding software to allow others ‘open access’ to their services. ‘Open access’ would allow users to switch between various digital terrestrial, satellite and cable broadcasts. However ITC has requested that all operators provide a common interface to allow interconnection of services.

• The Independent Television Commission (ITC) has identified potential frequencies for 20 new terrestrial local TV Restricted Service Licences (RSLs). Organisations who have bid to broadcast in these areas will now undergo a further stage of application and the awarding of licences will be judged primarily on the quality of service is offered to the consumer.

• The ITC confirmed that BBC Digital Services will be exempt from its rulings on ‘channel bundling’ (which concerns the way in which pay TV channels are provided) enabling the BBC’s public service channels to continue to be received free of charge by either cable, satellite or terrestrial digital broadcast.

• OFTEL has given its approval to British Telecom to allow competing telecoms companies access to its local loop, using BT switches and networks to provide service to local businesses and residential customers.

• The UK national digital radio franchise has been awarded to Digital One. The licence is effective for 12 years and transmission is expected to start in October 1999.

• The Department of Trade and Industry (DTI) publishes ‘Net Benefit : the Electronic Commerce agenda for the UK’ a document outlining the Government’s approach to encourage the use of E-commerce.

• The Inland Revenue and Customs & Excise departments have released a joint statement on UK tax policy regarding electronic commerce.

• The Radiocommunications Agency (RA) published proposals to enable spectrum licences to be traded between licence holders.

• The RA has authorised the introduction of Private Mobile Radio (PMR 446), a new hand portable mobile radio service. PMR 446 will be licence exempt and is designed for use over short distances such as in offices, factories or construction sites. The service will replace Short Range Business Radio (SRBR) which requires a licence. No new SRBR licences will be issued and SRBR will cease to operate on 31 December 2003.

• The DTI announces the creation of a Special Representative on the Digital Economy, the so-called ‘e-envoy’. The post holder will be responsible for developing and implementing the strategy for e-commerce which will be contained in the Competitiveness White Paper due to be published next month. Applications for the post have been invited by January 1999.

• The Government has published proposals for an Electronic Commerce Bill. It is hoped that electronic commerce will be promoted as the legislation will :
  • allow users to place greater reliance on electronic signatures ; as courts will recognise electronic signatures as meeting the required legal standards.
  • remove obstacles in existing laws - wherever it makes sense to do so - which insist on the use of paper.
  • maintain effectiveness of existing law enforcement powers in the face of increasing criminal and terrorist use of encryption.
  • make it easier to update telecom licences
• The Department for Culture, Media and Sport (DCMS) has announced revisions to the digital terrestrial television (DTT) points system which will restrict the number of DTT services which one owner can provide

• The DCMS has announced proposals to relax the regulations surrounding the ownership of digital radio services. Comments on the proposals have been called for by mid-January.

• The deregulation of the electricity supply market continues with the second phase opening up four more suppliers’ markets. Eight suppliers have now opened their markets.

• OFTEL has proposed changes to the system of charging telecom companies for their licences.The new proposals are for a uniform method of charging based on the turnover of companies who hold specialised individual licences, such as domestic Public Telecoms Operators. New entrants to the market would pay a minimum flat fee for the first two years. The changes would come into effect in time for next year's licence fee payments and will not affect telephone users. The consultation ends on 24 December 1998. Licence requirements have to be brought into line with the EC Licensing Directive (97/13/EC) by 31 December 1998.

• OFTEL has determined how it expects BT and Kingston to recover the costs of introducing Carrier Pre-Selection (CPS).

• The Department of Trade and Industry launches the Competitiveness White Paper ‘Our Competitive Future: Building the Knowledge Driven Economy’. The most significant measures are:
  • an Electronic Commerce Bill to remove legal barriers to online trading and introduce a Code of Conduct for e-commerce transactions.
  • £20 million (30MECU) extra funding for the DTI’s Information Society Initiative
  • reform of telecommunications legislation and a review of the effectiveness of current mergers regulation
  • tripling the number of businesses using e-commerce to 1 million by 2002
  • rolling out the network of Local Support Centres to full National coverage
  • the launch of a national award recognising excellence in digital business
• Following an investigation by the Monopolies and Mergers Commission into the price of calls made to mobile phones OFTEL has announced that the cost of calls from a BT line to Vodafone or Cellnet mobile phones, will fall by 25%. Additionally, operators will no longer be able to charge for unanswered calls on Vodafone and Cellnet's networks.