The Telecommunications (Open Network Provision) (Voice Telephony) Regulations 1998

SCHEDULE IV REFERENCE FRAMEWORK FOR THE APPLICATION OF ONP CONDITIONS WITH RESPECT TO HARMONISED TARIFF PRINCIPLES

The application of open network provision conditions as defined in Article 2(8) of the ONP Framework Directive should be in accordance with the following reference framework, taking into account the relevant rules of the EC Treaty:

Harmonised tariff principles

Tariff principles must be consistent with the principles stated in Article 3(1) of the ONP Framework Directive. Those principles imply, in particular, that:

(i) tariffs must be based on objective criteria and, until such time as competition becomes effective in keeping down prices for users, must in principle be cost oriented, on the understanding that the fixing of the actual tariff level will continue to be governed by national law and is not the subject of open network provision conditions. Where an organisation no longer has Significant Market Power in the relevant market, the requirement for cost orientation may be set aside by the Director. One of the aims should be the definition of efficient tariff principles throughout the Community while ensuring a general service for all;

(ii) tariffs must be transparent and must be properly published;

(iii) in order to leave users a choice between the individual service elements and where technology so permits, tariffs must be sufficiently unbundled in accordance with the competition rules of the Treaty. In particular, additional features introduced to provide certain specific extra services must, as a general rule, be charged independently of the inclusive features and transportation as such;

(iv) tariffs must be non-discriminatory and guarantee equality of treatment, except for restrictions which are compatible with Community law.

Any charge for access to network resources or services must comply with the principles set out above and with the competition rules of the Treaty and must also take into account the principle of fair sharing in the global cost of the resources used, the need for a reasonable level of return on investment and, where appropriate, the financing of universal service in accordance with the Interconnection Regulations.

There may be different tariffs, in particular to take account of excess traffic during peak periods and lack of traffic during off-peak periods, provided that the tariff differentials are commercially justifiable and do not conflict with the above principles.