FAQs about the new regulatory framework

1. FAQs about the new regulatory framework Lucy Rhodes lucy.rhodes@oftel.gov.uk

2. FAQs by ISPs • Frequently asked questions by Internet service providers about the new regulatory framework – Version 1:0 http://www.oftel.gov.uk/publications/eu_directives/2003/ispfaq0303.htm • Common questions asked by ISPs • Open-ended • Disclaimer

3. Disclaimer! The FAQs posted here are intended to be helpful and informative but they need to be read with the understanding that the answers are general in nature and apply to typical examples. They cannot be taken as applying absolutely to individual cases where a particular set of circumstances needs to be taken into account. Nor can they act as a substitute for specific legal advice. These FAQs do not fetter the discretion of the Director General of Telecommunications or Ofcom to resolve any dispute or investigate any matter to which this guide relates. Where terms defined by the Communications Bill are explained in the FAQs, the explanations cannot replace the formal Bill definitions but are written so as to make those definitions more comprehensible to people with a non-legal background. References to the Communications Bill in this set of FAQs are references to the print of 5 March 2003 that may be subject to change as it passes through Parliament.

4. About the new regulatory framework - the directives • 5 new directives -http://www.oftel.gov.uk/ind_info/eu_directives/index.htm • Come into force on 25 July 2003 • Technology neutral • Harmonised framework across Europe

5. About the new regulatory framework - the Bill • The Communications Bill • Implements the Directives and sets out the regulatory structure for all communications services • Transfers functions to Ofcom http://www.communicationsbill.gov.uk

6. Ofcom www.ofcom.org.uk

7. About the new regulatory framework - end of the licensing regime • General authorisation regime replace licensing regime • General conditions and specific conditions replace licence obligations • Will provide a more streamlined and flexible regime for current and new communications providers

8. About the new regulatory framework - new terms • ‘Electronic communications’ • Providers of an electronic communications network (ECN) • Providers of an electronic communications service (ECS)

9. Who are providers of ECNs and ECSs ?

10. About the new regulatory framework - what’s it going to be like for ISPs? • The provision of an ECS does not extend to the provision of content services www.oftel.gov.uk/publications/eu_directives/2002/intg0902.htm • Technology neutral • Proportionate regulation

11. 1 Will ISPs need to notify Ofcom about their intention to offer services? • PECN/S will no longer be required to obtain a licence or permission from the NRA before they can offer those networks or services. • They may be required to submit a notification of their intention to offer networks or services, but that is all. • Oftel does not intend to impose notification • http://www.oftel.gov.uk/publications/licensing/2003/fees0203.htm

12. 2 Will ISPs be required to pay administrative fees? • Ofcom will be able to require providers of designated electronic communications networks, electronic communications services and associated facilities to pay a yearly administrative charge. • £5 million turnover threshold • http://www.oftel.gov.uk/publications/licensing/2003/fees0203.htm

13. 3 Will ISPs be required to negotiate interconnection? • Most ISPs (except VISPs) will fall within the definition of a provider of a public electronic communications network and be subject to draft general condition 1 on general access and interconnection obligations. • www.oftel.gov.uk/publications/eu_directives/2002/intg0902.htm.

14. 4 Will ISPs be required to comply with general conditions proposed by Oftel relating to consumer protection issues? Yes.

15. Will ISPs be required to offer contracts? • Yes. All providers of public electronic communications services must offer to enter into a contract at the request of an end-user.

16. Will ISPs need to publish information on their quality of service? • NRAs will be able to direct that providers of an ECS publish information on their QoS, following a consultation • Only relates to ECS, not content type services • Initial view is that unlikely to extend this area to include ISPs

17. Will ISPs be required to comply with codes of practice? • All providers of ECS to residential and small business customers will be required to produce a basic code of practice - setting out the ISP’s relationship with its customer in easy-to-understand language. • Codes of practice dealing specifically with customer complaint handling and dispute resolution. • 18 February 2003 - Oftel published guidance on how it plans to assess codes of practice procedures for compliance with the Communications Act. www.oftel.gov.uk/publications/ind_guidelines/2003/cop0203.htm.

18. Will ISPs be required to comply with a dispute resolution scheme? • All consumers of an ECS must have recourse to an out-of-court settlement procedure that is transparent, simple, inexpensive, fair and prompt. • The Telecommunications Ombudsman Service (est. June 02) is Oftel's and the Government's preferred solution • Any system needs to be approved by Ofcom

19. 5 Will ISPs be required to offer itemised billing? • No. Only providers of publicly available telephone services will be required to provide itemised bills in certain circumstances • However all providers of public electronic communications services will be required to provide accurate bills to consumers

20. 6 Will the wholesale products ISPs buy be affected? • The introduction of the new Directives requires Member States to carry out reviews of competition in markets, in order to ensure that regulation remains proportionate. • SMP conditions proposed in these reviews are likely to be relevant to ISPs to the extent that they will impact the wholesale products that are available to them, e.g. NTS and FRIACO.

21. 7 Will Ofcom regulate Internet naming and addressing? • No. • This has been specifically excluded from the new regulations. • It is likely that the key functions associated with the Internet domain name system will continue to be performed by an independent organisation – see www.nominet.org.uk.

22. 8 Will Ofcom regulate content available over the Internet? • Content provided over the Internet is specifically excluded by the draft Bill from direct regulation • Ofcom will have a statutory duty to promote public awareness that Internet content is unregulated, and how users can regulate and control access to it themselves • Establishment of the Content Board • Function to promote Internet media literacy

23. Summary • 25 July 2003 new Directives • Licensing regime replaced by general authorisation • Licence conditions replaced by general conditions • Technology neutral • Appropriate regulation • FAQs on the web site - open-ended