Communication to the Commission of intended measures under Article 7(3) of Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services

1. The Office of Communications (“OFCOM”) are proposing to modify:

(a)Directions 1, 3 and 4 given under SMP Services Condition OA2 at Annex 4 of

The Regulatory Financial Reporting obligations on BT and Kingston Communications statement, dated 22 July 2004, which relates to BT’s obligations under SMP services conditions OA1 to OA34(Ref: UK/2004/0045); and

(b) a Direction given under SMP Services Condition FA10.2 at Schedules 2, 4 and 5 to the Notification set out in Annex 2 of the Review of the wholesale

local access market, dated 16 December 2004, which relates to BT’s obligations under SMP services condition FA10(Ref: UK/2004/0094).

2.OFCOM are also proposing to give a consent under SMP services condition OA1 to extend the period within which BT must publish its Regulatory Financial Statements and any corresponding audit opinions after the end of the period to which they relate as set out in SMP Condition OA6(b), from four months to six months for the reporting period ending 31 March 2006; SMP services conditions OA1 and OA6 being set out in Schedule 2 to the notification at Annex 2 of the statement published by Ofcom on 22 July 2004 entitled The regulatory financial reporting obligations on BT and Kingston Communications.

3. These proposals is supplementary to the market analysis procedure and ssignificant

market power assessment undertaken by OFCOM in accordance with Article 16 of Directive 2002/21/EC for the:

-Fixed geographic call termination market review (Ref: UK/2003/0003);

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-Wholesale international services market review (Ref: UK/2003/0006);

-Fixed narrowband wholesale exchange line, call origination, conveyance and transit market review (Ref: UK/2003/0011-0016);

-Fixed narrowband retail market review (Ref: UK/2003/0007-0010);

-Retail leased lines, symmetric broadband and wholesale trunk segments market review (Ref: UK/2003/0035-0039);

-Wholesale broadband access market review (Ref: UK/2003/0032-0034); and

-Wholesale local access market review (Ref: UK/2004/0094).

4.Ofcom are also proposing to revoke the SMP services conditions imposed on BT as set out in Schedule 2 of The Regulatory Financial Reporting obligations on BT and Kingston Communications statement, dated 22 July 2004 as they apply to the market defined in Schedule 1, Part1, Wholesale Market 8 of that notification, which is the market for "Inter-tandem conveyance and transit on fixed public telephone networks in the UK excluding the Hull Area”.

5.This proposal is supplementary to the market analysis procedure and significant market power assessment undertaken by OFCOM in accordance with Article 16 of Directive 2002/21/EC for the Review of BT’s network charge controls – Explanatory Statement and Notification of decisions on BT’s SMP status and charge controls in narrowband wholesale market dated 18 August 2005. (Ref: UK/2005/0165)

6.Ofcom hereby notifies the European Commission and other NRAs of its intended measures in accordance with Article 7 (3) of Directive 2002/21/EC. OFCOM’s proposed measures are set out in full in the attached draftstatement.

7.5.Ofcom are also conducting a national consultation under Article 6 of the Framework Directive at the same time.

86.Responses to this consultation are due to be sent to Sheira Hamilton, International Policy Advisor, Ofcom at by14 June23 March 2006.

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