Ofcom - 1996

January Oftel published two reports comparing quality of service offered by telecoms operators, one for residential and one for business customers. The Comparable Performance Indicator reports show how eight leading telecoms companies in the UK performed across five areas, e.g. repairing faults on time.

A consultative document setting out Oftel’s proposals for a revised price cap for National Transcommunications Ltd ( NTL), the privatised transmission network operator was published.

Oftel published BT’s compliance plans relating to the DG’s Direction of 22 September 95 requiring BT to eliminate unfair subsidies to the Network Applications part of its Apparatus Supply Business.

April A publicity campaign was launched to publicise a code change for Reading. Parallel running began on 8 April, with the new (0118) code scheduled to take over on 1 January 98.

The first quarterly update of Market Information (issued November 95) was published. Figures were collected directly from operators, with over 30 fixed link and 4 cellular network operators taking part.

The first public hearing on the price control review took place in London, followed by a hearing in Glasgow.

The latest Comparable Performance Indicator reports for business and residential customers were published covering the period from October to December 1995.

Oftel announced proposals for discontinuing mandatory regulation of installation and maintenance of private switching systems.

May Oftel published its Management Plan for 1996/97.

Public hearings on the price control review were held in Cardiff, Belfast and Birmingham and the second phase of the consultation ended.

An interim statement of Oftel’s initial conclusions on the National Transcommunications Ltd (NTL) price control review was published.

Nynex Cablecomms Ltd became the first to offer number portability to new customers, a move welcomed by Oftel.

The Department of Trade and Industry announced their decision to liberalise international facilities licensing in the UK, opening up the field to full competition and ending the BT/Mercury duopoly. As a result, Oftel will be examining ways in which new operators can share existing facilities.

Oftel supported action taken by the Office of Fair Trading (OFT) to improve the terms used in consumer contracts by the mobile phone industry through. At this time Oftel receives around 4,000 complaints and queries a year about mobile phones, many from customers who are unhappy about contract terms.

A report was published on the methodology used to derive the long run incremental costs of a modern telecoms network.

The Director General made amendments to Mercury Communication Limited’s licence, drafted in the early 1980’s when Mercury was BT’s sole competitor. A number of conditions now thought to be inappropriate were deleted, in line with Oftel’s commitment to withdraw from detailed regulation where market forces allow; and the 28 day advance notice obligation to publish changes in tariffs was modified so that changes need be published only on the day that they become effective.

The DG ordered an investigation into allegations that BT had misused customer information by telephoning ex-directory customers of cable companies as part of a ’Winback’ campaign to invite the customers to return to BT. Oftel asked BT to respond to a number of questions.

July Oftel submitted to BT the final combined proposals on Retail Price Control arrangements from August 1997 and the introduction into BT’s licence of a condition prohibiting anti-competitive behaviour.

A consumer guide about Oftel’s work in promoting the interests of customers was published.

A consultation document was published on the future pricing of international private leased circuits, following the DTI’s announcement on 6 June that the existing BT/Mercury duopoly in international facilities was to end.

Oftel announced that they could find no evidence to invalidate BT’s explanation that an encoding error was the cause of the complaints surrounding their Winback campaign. Later in July, a further investigation was ordered and an explanation requested from BT after Oftel received a complaint from the Consumers’ Association saying that BT’s customer-facing staff were supplying misleading and incorrect information about the services offered by cable operators. Oftel also requested details from the Cable Communications Association after the CCA informed Oftel that it had received details of further ex-directory cable customers receiving calls from BT staff during and beyond the period of the investigation whose conclusion Oftel announced on 22 July.

August BT accepted Oftel’s proposals on price control and fair trading, after three changes to the licence amendments regarding the fair trading condition proposed on 18 July.

Oftel published the results of a joint Oftel/ICSTIS market research survey into premium rate services. One clear message which emerged from the survey was a preference for all premium rate services to be moved onto the distinctive 09 range of numbers. This idea was amongst those put forward in a consultative document published on 5 August setting out Oftel’s proposals for a new National Numbering Scheme. London, Cardiff, Belfast, Southampton and Portsmouth were confirmed as areas which would need a new code within the next five years. The document put forward proposals for utilising the 8 billion new numbers freed by PhONE day in 1995 and introduced the idea of a new “ Corporate Numbering Range” for large businesses. The consultation period runs until October 18.

September Following evidence submitted by the Consumers’ Association, the Director General issued an Order under section 16 of the Telecommunications Act, requiring BT to tighten controls over the way in which its staff talk to customers about its competitors.

Kingston Communications’ call metering systems were approved by the British Approvals Board for Telecommunications.

Oftel announced the end of the “designated maintainer” regime – Oftel will no longer formally approve those who provide maintenance services, or register installers and maintainers to provide connection services, and customers whose telephone systems include private switching systems are no longer required to enter into a contract with an Oftel approved maintainer for their system maintenance.

BT offered to convert, free of charge, hardwired telephone connections to modern plug and sockets. Oftel welcomed the move which gives customers the freedom to choose whether to buy a telephone and who to buy it from.

October Cable & Wireless announced a merger of Mercury Communications with Bell Cablemedia, Nynex and Videotron to create a new company C&W Communications.

A Statement was issued on the future regulation of premium rate services.

November BT announced its plans to merge with American telecoms company MCI, in which BT already holds a 20% share.

CableTel announced the launch of a new pricing package for schools to enable them to get on-line access to the Internet and other services.

December Oftel issued a determination that BT should modify its payphones so that Mercury customers could indirectly access Mercury from BT payphones by dialling ‘133’.

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