The Telecommunications (Licence Modification) (Mobile Public Telecommunication Operators) Regulations 1999

10.  After condition 56 there shall be inserted the following conditions— U.K.

Condition 56A

“ PROVISION OF MOBILE RADIO TELECOMMUNICATION SERVICES TO SERVICE PROVIDERS U.K.

56A.1   Where:

(a) a determination has been made which applies to the Licensee for the purposes of Condition 56 above; and

(b) the determination under paragraph (a) above is in relation to a relevant economic market which is comprised of at least the generality of Mobile Radio Telecommunication Services in Great Britain;

subject to the following provisions of this Condition, the Licensee shall at the written request of a Service Provider or a person intending to be a Service Provider provide Mobile Radio Telecommunication Services by means of the Applicable Systems to that Service Provider or that person if that Service Provider or that person is able to demonstrate to the reasonable satisfaction of the Licensee that:

(i) during the most recent year for which published accounts of that Service Provider are available not less than 80% by value of the telecommunication services provided by the Licensee to that Service Provider by means of the Applicable Systems were resold to persons outside that Service Provider’s Group; or

(ii) in the event that no such telecommunication services were provided to that person for resale during that financial year not less than 80% by value of the telecommunication services to be provided by the Licensee to that person by means of the Applicable Systems during the following financial year will be resold to persons outside that person’s Group.

56A.2   The Licensee shall not be obliged under paragraph 56A.1 to provide services to a Service Provider if in the opinion of the Licensee there is reasonable cause to doubt the likelihood (for whatever reason) of that Service Provider:

(a) providing services to others in a proper and efficient manner; or

(b) financing the provision of services, and the Director has not given a written contrary decision.

Condition 56B

SEPARATION OF ACTIVITIES AND PREPARATION OF ACCOUNTS U.K.

56B.1   This Condition only applies where:

(a) a determination has been made which applies to the Licensee for the purposes of Condition 56 above; and

(b) the determination under paragraph (a) above is in relation to a relevant economic market which is comprised of at least the generality of Mobile Radio Telecommunication Services in Great Britain;

56B.2   If the Licensee carries on any of the activities of the Direct Business, the Licensee shall:

(a) carry on those activities separately from the other businesses of the Licensee; and

(b) record in its accounting records maintained in accordance with this Condition the cost of:

(i) providing any telecommunication service;

(ii) supplying any apparatus; or

(iii) doing any other thing connected with the provision of telecommunication services or the supply of apparatus,

to or for a person who is not:

(A) a Service Provider;

(B) the Crown, an Emergency Organisation or a person for the time being specified under Condition 1.4(c);

(C) a Schedule 2 Public Operator; or

(D) a person running a telecommunication system or providing telecommunication services outside the United Kingdom,

and shall do any of the things specified in paragraphs 56B.2(b)(i), 56B.2(b)(ii) and 56B.2(b)(iii) at a cost at least equal to the amount which the Licensee would have charged for the provision of that telecommunication service or the supply of that apparatus or the doing of that thing to or for a Service Provider.

56B.3   The Licensee shall, if it carries on any activities comprised in any of the following businesses, that is to say the Apparatus Supply Business, the Apparatus Production Business, the Direct Business, the Systems Business or the Supplemental Services Business or any other distinct business carrying on any commercial activity connected with telecommunications carried on by the Licensee, maintain accounting records in such form that the activities of each of those businesses which it does carry on are separately attributable in the books of the Licensee, being records sufficient to show and explain the transactions of each of those businesses.

56B.4   The Licensee shall:

(a) prepare in respect of each complete financial year of the Licensee during which this Licence is in force, or of such lesser periods as the Director may specify but not more frequently than quarterly, accounting statements setting out and in the case of yearly statements fairly presenting the costs (including capital costs), revenue and financial position of the businesses specified or described in paragraph 56B.3 which are carried on by the Licensee in that period and including a reasonable assessment of the assets employed in and liabilities attributable to those businesses and showing separately, in the case of yearly accounting statements, the amount of any material item of revenue, cost, or any asset or liability which has been either:

(i) charged from or allocated to the business of any member of the Licensee’s Group together with a description of the basis of the value on which the charge or allocation was made; or

(ii) determined by apportionment or attribution from an activity common to the Licensee’s Group and, if not otherwise disclosed, the basis of that apportionment or attribution;

(b) at the request of the Director, procure in respect of each of the accounting statements prepared in respect of a complete financial year of the Licensee a report by the Licensee’s Auditor stating whether in his opinion that statement is adequate for the purposes of this Condition; and

(c) at the request of the Director, deliver to the Director a copy of each of the accounting statements and of the reports relating thereto required under paragraphs 56B.4(a) and 56B.4(b) as soon as reasonably practicable and in any event not later than six months after the end of the period to which they relate.

56B.5   In this Condition references to the costs of any business do not include profits of that business.;”