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Presentation – Zahid Deen, Competition Group. Universal Service -Telecommunications. 23 October 2009. Snapshot of current universal service. Acts as ‘safety net’ to extend access to basic fixed line services Meet reasonable requests for connection to a fixed location
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Presentation – Zahid Deen, Competition Group Universal Service -Telecommunications 23 October 2009
Snapshot of current universal service • Acts as ‘safety net’ to extend access to basic fixed line services • Meet reasonable requests for connection to a fixed location • A Social (Low cost) tariff • Reasonable access to Payphones • Access for end-users with a disability (includes provision of a Text Relay service) • Other requirements e.g. around directory information and billing • At affordable and uniform prices
Who sets the scope of the USO? • Directive 2002/22/EC • Broad framework (Smorgasbord) • Requirement for “transparent, non-discriminatory and competitively neutral” and “not more burdensome than necessary” Europe BIS • Statutory Instrument: Universal Service Order • Describes, at a high level, the extent of USO in the UK • s65-72 Communications Act 2003 • Describes Ofcom’s powers and obligations in securing universal service consistent with the Order • Sets Universal Service Conditions on designated Universal Service Provider(s) Ofcom BT & KCOM • The UK designated Universal Service Providers
Ofcom will consult on a Framework for reviewing the USO • Intend to issue first consultation document in 2010 • Consultation likely to set out a high level frameworks for assessing financial and social costs and benefits of the USO – aim is more sustainable and better aligned USO
Blue Skies for future USO... • Universal broadband – a ‘commitment’ • Government has proposed 2Mbps availability across the UK • Mobile??? • Government proposes revised obligations for spectrum awards in order to push coverage • Other – such as new services for end-users with a disability (e.g. video relay) • Different services may have different impacts and cost implications
…….Ultimately, a decision for Government • Ofcom’s role is to implement the USO • Government set the scope of USO – they determine if new services should be included • Some of the discussion about what should be part of USO relates to what services are necessary for participating in society • Government also influences how participation should occur - in public services (e.g. will broadband be essential in order to access some public services?)