This consultation started on 6th January 2009 and ends on 16th January 2009.
1.1 Carrier Pre-Selection (CPS) is a mechanism that allows consumers who have a BT line to select, in advance, alternative communications providers to carry some or all of their telephone calls without having to dial a prefix.
1.2 This dispute is about the charge British Telecommunications plc (BT) makes to CPS operators (CPSOs) when it applies CPS to a line (except where CPS is provided in combination with Wholesale Line Rental (WLR), when a different charge applies). This charge is listed in BT’s Carrier Price List as “Set-Up – Switch change effected” and referred to in this document as the “CPS set-up charge”.[(-1-)]
1.3 Ofcom has determined that BT has significant market power (SMP) in various narrowband wholesale markets and imposed a number of SMP conditions on BT including a requirement to provide CPS under SMP Condition AA8.[(-2-)] This SMP condition, among other things, entitles BT to recover from other communications providers the reasonable costs it incurs in providing CPS.
1.4 The current CPS set-up charge of £2.47 has been in effect since 1 November 2007 , when BT introduced new charges for various CPS and WLR transactions.
1.5 On 23 September 2008 Cable & Wireless (C&W), on behalf of itself, THUS plc (THUS), Gamma Telecom Ltd (Gamma) and Opal Telecom Ltd (Opal), together “the CPSOs”, referred a dispute between the CPSOs and BT to Ofcom for resolution.
1.6 In its submission, C&W argues that the CPS set-up charge is, and has been, set at a level that enables BT to recover certain retail costs. C&W argues that BT is not entitled to recover its retail costs from CPSOs. C&W therefore asked Ofcom:
to determine the proper amount of the CPS set-up charge from 28 November 2003 to the date of the determination of this dispute; to determine the proper amount of the CPS set-up charge going forward; and to require BT to make any necessary repayments to the CPSOs in dispute.1.7 Ofcom’s duty and powers to resolve certain disputes are set out at sections 185-191 of the Communications Act 2003 (“the 2003 Act”). On 15 October 2008 Ofcom decided that it was appropriate for Ofcom to resolve this dispute and informed the parties to the dispute of its decision.
1.8 In resolving this dispute, Ofcom has considered all its general statutory duties and community obligations under section 3 and 4 of the 2003 Act. In the context of this dispute, Ofcom has had particular regard to its duty under section 3(1)(b) of the 2003 Act to further the interests of consumers in relevant markets, where appropriate, by promoting competition, in line with its duty under section 4 of the 2003 Act to promote competition in communications markets in accordance with the policy objectives of Article 8 of the Framework Directive[(-3-)]
1.9 In summary, based on the submissions of the parties and the evidence gathered in this dispute, for the reasons set out in this draft determination and explanatory statement, Ofcom’s provisional conclusion is that:
The following documents relating to this consultation are available: Dispute about per-customer line transaction charges for Carrier Pre-Selection Dispute about per-customer line transaction charges for Carrier Pre-Selection How To Respond Responses
http://www.tellthemwhatyouthink.org/consultation/con-1878-dispute-about-per-customer-pre-selection
seen at 21:25, 10 January in All consultations.