Oftel threatens to intervene on CPS

UK telecoms regulator Oftel has announced that it will intervene if carriers cannot agree on how to implement a service that lets customers use more than one operator.

The watchdog has said that it will set charges for carrier pre-selection (CPS) if operators cannot agree a price among themselves.

CPS allows the automatic re-routing of calls, enabling customers to use more than one operator for local, national and international calls. Currently, users need to dial a prefix or buy an adaptor to re-route calls.

In March this year, Oftel ruled that BT must pay competitors 50 per cent of the cost of providing CPS auto-diallers - the £8 phone boxes that plug into the normal BT socket - after the telco missed the January deadline for upgrading its network.

BT's delay in fully implementing the service, which is important for competition, has become a political minefield.

The European Commission said in June that it will open formal infringement proceedings against the UK for failing to implement the CPS service on time. The European Union (EU) had set 1 January 2000 as the day on which operators in Europe should introduce CPS, but the UK was given an extension until 1 April 2001.

An Oftel spokesman said that the Commission is now satisfied with the watchdog's revised deadline of the end of the year. He added that although the regulator is prepared to lay down conditions, it is confident that an agreement will be reached. "The best deals are those struck between the industry and BT," he said.

In a statement, Oftel said: "Charges relating to the setting up and running of the service need to be in place by the end of the year. Although negotiations between BT and the other operators are proceeding well, Oftel will not hesitate to determine charges if necessary."

Oftel's possible intervention could be seen as a sign that the watchdog, which has come under fire for not being tough enough with BT over the unbundling of the local loop, is finally baring its teeth.

In a separate development, an allocation procedure to decide the order in which operators should be able to install digital subscriber line equipment in BT's exchanges was proposed today by Oftel.

See also:

Is it the end of the line for Oftel?

The embattled UK telecoms watchdog looks set to be disbanded and replaced with an all-encompassing communications and media regulator.  10 Oct 2000

Tories jump on Oftel-slamming bandwagon

Michael Portillo, the shadow chancellor, has added his voice to the growing chorus of disapproval against the beleaguered UK telecom watchdog, Oftel.  06 Oct 2000

EU leans on BT over local loop delays

BT could face court action if it fails to open its local networks to competitors on 1 January 2001, and has been told that it can no longer use technical limitations as an excuse.  04 Oct 2000

Telecoms managers blast Oftel

The revamped Communications Managers Association claims that Oftel is not doing enough to regulate the UK telecoms market and promote competition.  03 Oct 2000

Telecom professionals blast Oftel

UK telecoms watchdog Oftel has come under fire from UK telecom professionals for failing to ensure effective competition in the communications market.  26 Sep 2000

Oftel under fire over delays to BT service

A row has erupted between the European Commission and UK telecoms watchdog Oftel over BT's delay in implementing a service that lets phone customers use more than one operator.  16 Jun 2000

BT pays the price for delayed service

BT will have to pay half the cost of providing devices for customers that want to route calls through rival operators, after it missed the deadline for upgrading its network.  28 Mar 2000

Small business - Telecommunications - Talking shop

The telecommunications industry has become big business. John Leyden guides you through the myriad alternatives of carriers and technologies in this crucial commercial area.  01 Jul 1999

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