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

14.  After condition 64 there shall be inserted the following— U.K.

Condition 65

“PART J: ADDITIONAL REQUIREMENTS RELATING TO THE PROVISION OF MOBILE RADIO TELECOMMUNICATION SERVICES U.K. FAILURE OF SERVICE PROVIDER TO PROVIDE SERVICES

65.1   Where the contract of a Service Provider with the Licensee for the provision by the Licensee of any Mobile Radio Telecommunication Service is terminated by the Licensee or by that Service Provider or where, for any reason, a Service Provider ceases to provide such Service by way of resale, the Licensee may provide such Service immediately prior to such cessation if the Licensee:

(a) gives notice in writing to the Director within two working days of starting to provide such Service; and

(b) provides to the person receiving such Service within seven working days of starting to provide that Service a list of the names and addresses of all other Service Providers together with a statement that those other Service Providers are able to provide services to that person in competition with the Licensee.

65.2   During the first three months in which the Licensee provides any Mobile Radio Telecommunication Service to any person pursuant to paragraph 65.1, the Licensee shall not, in providing that person with any information concerning any Mobile Radio Telecommunication Service authorised to be provided by paragraph 3 of Schedule 3 or in providing any assistance to that person in relation to the provision of any such service, unfairly promote any Service Provider or any business carried on by the Licensee in relation to the provision of such Service so as to place at a significant competitive disadvantage persons competing with that Service Provider or that business.

65.3   For the avoidance of doubt, paragraphs 65.1 and 65.2 override the general right of the Licensee to provide services otherwise than to Service Providers.

Condition 66

PROHIBITION ON UNFAIR CROSS-SUBSIDIES U.K.

66.1   Except where the Director agrees otherwise, the Licensee shall record at full cost in its accounting records any material transfer between it and any other member of the Licensee’s Group and between any of the following businesses:

(a) the Apparatus Supply Business;

(b) the Apparatus Production Business;

(c) the Direct Business;

(d) the Supplemental Services Business; and

(e) the Systems Business.

66.2   Where it appears to the Director that the Licensee is unfairly cross-subsidising any of the businesses specified in paragraph 66.1 or any activity carried out by another member of the Licensee’s Group within the United Kingdom it shall take such steps as the Director may direct for the purpose of remedying the situation.

66.3   For the purpose of this Condition:

(a) a transfer from one business to another business or company takes place when anything (including any service or money) produced or acquired by, normally used in, or otherwise at the disposal of, the first mentioned business is made available for the purposes of the other business or company; and

(b) “full cost" in the case of money transferred includes the market rate of interest for that money.

66.4   This Condition shall apply with the omission of paragraph 66.1(a) if and for so long as no monopoly situation within the meaning of section 6 of the Fair Trading Act 1973 exists in relation to the supply of telecommunication apparatus of any description by the Licensee.

66.5   In considering whether any cross-subsidy of the Supplemental Services Business is unfair, the Director shall have regard to the extent to which the Licensee has cross-subsidised that business for the purposes of satisfying any obligation under Conditions 1 or 4.

Condition 67

SPECIAL TELEPHONES FOR THE HEARING IMPAIRED U.K.

67.1   If the Licensee or a Subsidiary of the Licensee engages in the supply of Telephones in the United Kingdom, the Licensee shall ensure there are available for supply in such a way as to meet reasonable demands for them Telephones of the following descriptions:

(a) Telephones capable of being inductively coupled to hearing aids which have been designed to be so coupled to Telephones; or

(b) Telephones incorporating sound amplification facilities.

Condition 68

MOBILE NUMBER PORTABILITY U.K.

68.1   The Licensee shall provide Mobile Portability either to any Qualifying Operator, or in the capacity of a Qualifying Operator, on reasonable terms in accordance with the Functional Specification and with the following provisions provided that any charges for provision of such Portability shall be made by the Licensee in accordance with the following principles:

(a) subject always to the requirement of reasonableness, charges shall be based on the incremental costs of providing Portability, unless

(i) the Donor and Recipient Operators shall have agreed another basis for charges, or

(ii) the Director shall have determined, following an application by either or both Operators, that another basis for charges should be used;

(b) the Donor Operator shall make no charge in relation to System Set-Up Costs;

(c) subject to sub-paragraph 68.1(b) the Recipient Operator shall pay charges, other than the annual fee or charges for ongoing costs related to registration of a ported Number or of a subscriber, based on the reasonable costs incurred by the Donor Operator in providing Portability with respect to each Number which, subject to sub-paragraph 68.1(d) may be paid by way of specific elements of the provision of the facility;

(d) the Donor Operator shall make no specific charge based on Additional Conveyance Costs.

68.2   “Qualifying Operator" means an Operator which:

(a) has notified the Licensee in writing that it requests the provision of Portability from the Licensee specifying the type or types and Extent of Portability so requested; and

(b) is able and willing to provide on reasonable terms and in accordance with the Functional Specification and these provisions the same type or types and Extent of Portability to the Licensee as it has sought;

and the Licensee shall be deemed to be acting in the capacity of a Qualifying Operator where the Licensee has requested in writing the provision of Portability from a Public Operator and has offered Portability to that Public Operator in accordance with sub-paragraphs 68.2(a) and 68.2(b) above.

68.3   For the purposes of this Condition the Extent of Portability means the Numbers sought and offered by the party requesting Mobile Portability.

68.4   Where a notice for the purposes of paragraph 68.2 has been given, the Licensee or the Qualifying Operator may refer in writing to the Director for his determination any question as to the reasonableness of:

(a) the request for the provision of Portability, taking into account the technical and operational characteristics of the Licensee’s Applicable Systems and, if relevant, those of the applicable systems of the Qualifying Operator;

(b) the Extent of the Portability requested;

(c) the costs incurred in providing Portability;

(d) the categorisation of costs;

(e) the proposed use or use of a higher cost method in proposing to implement or implementing any aspect of Portability where a lower cost method could or ought to have been used;

(f) the charges to be made for providing Portability;

(g) the basis for calculating such charges.

68.5   Before making any determination under paragraph 68.4 the Director shall consult with the Licensee and the relevant Qualifying Operator and with Interested Parties and consider any representations made by them.

68.6   If requested in writing by the Director, the Licensee shall provide to the Director a record of each Number in relation to which it is providing Portability, specifying the relevant Qualifying Operator in each case.

68.7   Where the Licensee provides Mobile Radio Telecommunication Services by means of the Applicable Systems to a Subscriber either by its Direct Business or by means of a Service Provider, and where the Subscriber nominates another Service Provider or Operator to provide such services, the Licensee shall ensure that either its Direct Business or the first Service Provider undertakes to procure, if so requested by the nominated Service Provider or Operator, the retention on reasonable terms by the Subscriber of any Number allocated to that Subscriber by or on behalf of the Licensee.

68.8   For the purposes of this Condition “Number", “Numbering Plan", and “Numbering Conventions" each have the same meaning as the Conditions in this Licence relating to numbering.

Condition 69

CODE OF PRACTICE ON THE CONFIDENTIALITY OF CUSTOMER INFORMATION U.K.

69.1   Except where the Director agrees otherwise the Licensee shall take all reasonable steps to ensure that its employees observe the provisions of the code of practice agreed with the Director and notified to him as amended from time to time which:

(a) specifies the persons to whom they may not disclose information which has been acquired in the course of the Licensee’s business about a customer of the Licensee or a customer of a Service Provider without the prior consent of that customer; and

(b) regulates the information about any such customer, which may be disclosed without his consent.

69.2   The Licensee shall within three months of first offering a Value Added Service agree with the Director additional provisions for the code of practice, and confirm in writing to the Director that it has taken all reasonable steps to ensure that those of its employees who are engaged in the Supplemental Services Business are observing those additional provisions which shall:

(a) specify the persons to whom those employees may not disclose information which has been acquired in the course of that business about a customer of the Licensee or about that customer’s business without the prior consent of that customer; and

(b) regulate the information about any such customer or his business which may be disclosed without his consent.

69.3   The Licensee shall consult the Director not less than once every 3 years about the operation of the code of practice and shall make such changes to the code of practice as the Director may direct following such consultation.

69.4   This Condition is without prejudice to the general duties of law of the Licensee towards its customers.”