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SCHEDULE 3 U.K.SCHEDULE 1: CONDITIONS INCLUDED UNDER SECTION 7 OF THE ACT

PART B: U.K.UNDUE DISCRIMINATION AND PRICE PUBLICATION REQUIREMENTS WHICH APPLY TO PART A

Condition 11U.K.

PROHIBITION ON UNDUE PREFERENCE AND UNDUE DISCRIMINATIONU.K.

11.1  Where a determination has been made which applies to the Licensee for the purposes of Part A of this Licence, the Licensee shall not unduly discriminate or show undue preference in the manner set out below:

(a)the Licensee shall not (whether in respect of the charges or other terms or conditions applied or otherwise) show undue preference to, or exercise undue discrimination against, particular person or persons of any class or description (in any market) as respects:

(i)the provision by means of the Applicable Systems of any telecommunication service provided by the Licensee (including offers of terms on which such services are to be provided) in the market determined by the Director for the purposes of Part A;

(ii)the maintenance, adjustment, repair or replacement of any apparatus comprised in the Applicable Systems which is used for the provision of any telecommunication service in the market determined by the Director for the purposes of Part A of this Licence;

(b)the Licensee may be deemed to have shown such undue preference or to have exercised such undue discrimination if it unfairly favours to a material extent a business carried on by it in relation to the provision of any telecommunication service referred to in paragraph 11.1(a) above so as to place at a significant competitive disadvantage persons competing with that business; and

(c)any question relating to whether any act done or course of conduct pursued by the Licensee amounts to such undue preference or such undue discrimination shall be determined by the Director, but nothing done in any manner by the Licensee shall be regarded as undue preference or undue discrimination if and to the extent that the Licensee is required or permitted to do such thing in that manner by or under any provision of this Licence.