The Telecommunications (Licence Modification) (British Telecommunications plc) Regulations 1999

Amendments to Schedule 1 of the standard Schedules.

1.  In paragraph 1 of Part 1

(i) for the definition of “Applicable Systems” there shall be substituted the following definition—

• ““Applicable Systems” has the meaning given to it in paragraph 6 of this Licence, and, for the purpose of Condition 76 only, includes any systems which the Director agrees should be treated as Applicable Systems;”;

(ii) for the definition of “Code of Practice” there shall be substituted the following—

• ““Code of Practice” means:

  (i)

  for the purposes of Condition 29 and 81, a code of practice prepared and disseminated by the Data Protection Commissioner (or, before the commencement of section 6(1) of the Data Protection Act 1998 by the Data Protection Registrar) or by a trade association where, in the case of the latter, the said Commissioner, or Registrar, has notified the trade association that in his opinion the code promotes the following of good practice;

  (ii)

  for the purposes of Condition 79:

  (a)

  any model Code of Practice issued by the Director; or

  (b)

  where the Director so agrees, any Code of Practice submitted by the Licensee to the Director;”;

(iii) for the definition of “Directory Information Service” there shall be substituted the following definition—

• ““Directory Information service” for the purposes of Conditions 2, 29 and 81 means directory information provided by means of a telephone system;”;

(iv) for the definition of “Network Charge Change Notice” there shall be substituted the following definition—

• ““Network Charge Change Notice” has the meaning given to it in Condition 69.4 or Condition 47.5, whichever is applicable to the Licensee;”;

(v) for the first definition of “Operator” there shall be substituted the following definition—

““Operator” means for the purposes of Schedule 1 except Conditions 28 and 65 any person running a telecommunication system for the purposes of providing telecommunication services;”;

(vi) for the definition of “Prospectively Competitive Standard Services” there shall be substituted the following definition—

• ““Prospectively Competitive Standard Services” means, unless a contrary determination by the Director applies pursuant to Condition 47.10, any of the following:

  (i)

  Inter-tandem Conveyance Standard Services;

  (ii)

  Inter-tandem Transit Conveyance Standard Services;

  (iii)

  International direct dialled Conveyance Standard Services;

  (iv)

  Directory Information Standard Services, namely the non-conveyance element of the Directory Information Service and the international information service, entries on to NIS/OSIS, use of the directory assistance database (DAS), supply of phonebooks and supply of customised phonebooks;

  (v)

  a service:

  (A)

  which a Schedule 2 Public Operator has requested the Licensee to offer to enter into an agreement to provide under Condition 45.1;

  (B)

  which the Director has determined pursuant to Condition 47.10(a) is likely to become competitive within a market specified by him, and within a period specified by him;”;

(vii) after the definition of “Value Added Service” there shall be inserted the following

“ADDITIONAL DEFINITIONS RELATING TO SCHEDULE 1 OF THIS LICENCE

“Accounting Documents” means together the Accounting Policies, the Attribution Methods, the Regulatory Accounting Principles, the Transfer Charging System and the Long Run Incremental Cost methodology;

“Accounting Policies” means the manner in which the requirements of the Companies Act 1985, the Accounting Standards and the accounting policies applied by the Licensee in the preparation of its annual statutory financial statements, where relevant and appropriate, are applied in each of the Financial Statements, the Restated Financial Statements and the Interim Financial Statements as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 came into force(1), as amended from time to time in accordance with that Condition;

“Apparatus Supply Business” means the following activities of the Licensee or of any wholly owned Subsidiary taken together:

(i)

the supply of any telecommunication apparatus neither comprised nor to be comprised in any of the Applicable Systems; and

(ii)

the installation, maintenance, adjustment, repair, alteration, moving, removal or replacement of any telecommunication apparatus where those activities are not part of the Systems Business nor part of the Supplemental Services Business;

“Attribution Methods” means the practices used to attribute revenue (including appropriate transfer charges), costs (including appropriate transfer charges), assets and liabilities to a Business or, insofar as that Business has been disaggregated in terms of activities of that Business, to each activity of that Business as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 came into force(2), as amended from time to time in accordance with that Condition;

“Businesses” means the businesses (including the Network Business and the Retail Systems Business) comprising the revenues, costs and assets as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 came into force, as amended in accordance with that Condition and “Business” means any one of them;

“Call Origination Conveyance Standard Service” means a Conveyance Standard Service provided by the Licensee from (but not including the conveyance of Messages over) an Exchange Line to (and over) the local exchange;

“Call Origination Remote-local Conveyance” means the conveyance of switched Messages from (but not including the conveyance of Messages over) an Exchange Line up to (but not over) the local exchange;

“Call Termination Conveyance Standard Service” means a Conveyance Standard Service provided by the Licensee from (and over) the local exchange to (but not including the conveyance of Messages over) an Exchange Line;

“Call Termination Remote-local Conveyance” means the conveyance of switched Messages from (but not over) the local exchange to (but not including the conveyance of Messages over) an Exchange Line;

“Charges” for the purpose of Condition 69 means charges (being in all cases the amounts offered or charged by the Licensee) to Operators for the Standard Services described in paragraph 69.6(a), 69.6(b) or 69.6(c), as the case may be, other than charges for Competitive Standard Services, and each discrete charge of any such description shall be treated as a separate Standard Services Charge;

“Controlling Percentage” has the meaning given to it in Condition 69.13;

“Conveyance Outpayment Cost” means any payment made to any person by the Licensee in respect of the conveyance of a call which is not a Delivery Outpayment Cost;

“Conveyance Standard Service” means a Standard Service comprising the conveyance of switched Messages;

“Delivery Outpayment Cost” means either:

(i)

the payment made by the Licensee to an International Operator for the delivery of an outgoing international call passed on to it by the Licensee assessed on the basis of the net settlement after taking account of receipts under the system of settlement provided for by the ITTCC and the cost incurred by the Licensee of the delivery of an incoming international call passed on to it by an International Operator; or

(ii)

the average payment made by the licensee to Operators in the United Kingdom or to Operators in the Isle of Man or the Channel Islands for the delivery of calls to or within any of those respective places; or

(iii)

the payment made by the Licensee to an Operator for the conveyance of an international call to a destination outside the United Kingdom, Isle of Man and Channel Islands;

“Detailed Attribution Methods” means the document with that title (along with the Detailed Valuation Methodology and Long Run Incremental Cost Model: Relationship and Parameters) containing details of the systems and processes for deriving or calculating the costs, revenues, assets and liabilities which are used by the Licensee, in addition to the descriptions in the Accounting Documents, to prepare the Financial Statements, the Restated Financial Statements and the Interim Financial Statements;

“Detailed Valuation Methodology” means the document with that title which is used (along with the Detailed Attribution Methods and Long Run Incremental Cost Model: Relationship and Parameters) containing details of the systems and processes for deriving or calculating the costs, revenues, assets and liabilities which are used by the Licensee, in addition to the descriptions in the Accounting Documents, to prepare the Financial Statements, the Restated Financial Statements and the Interim Financial Statements;

“Discounted General Prices” means prices which are charged as part of a Package (not including Reference Prices) and which, if they were not so charged, would be General Prices;

“Exchange Line Price” means a General Price imposed by the Licensee for:

(i)

the use and Ordinary Maintenance; and

(ii)

the connection or taking over;

of an Exchange Line;

“Fault Repair Service” means a service consisting in such repair, maintenance, adjustment or replacement of any of the Applicable Systems or such repair or adjustment of any Relevant System as is necessary to restore and maintain a sufficient service;

“Financial Statement” has the meaning given to it in Condition 78.5;

“Fixed Link Operator” means a public telecommunications operator which runs a public telecommunication system and whose Licence does not authorise the provision of a Land Mobile Radio Service;

“General Prices” means (being the Licensee’s Standard Prices or Reference Prices nominated under Condition 70.6):

(i)

(A)

charges for the use and Ordinary Maintenance of a residential Exchange Line;

(B)

charges for the connection or taking over of a residential Exchange Line;

(C)

charges for the conveyance by means of such Exchange Lines of voice telephony Messages from a place within the Licensed Area to any other place (whether or not within the Licensed Area); and

(D)

charges for the facility of transferring, with assistance from a human operator, charges for the conveyance of the voice telephony Messages referred to in sub-paragraph (i)(C) above, other than:

(AA)

charges payable by Operators;

(BB)

charges for Private Leased Circuits or International Simple Bearer Circuits;

(CC)

charges for special, emergency or priority Fault Repair Services;

(DD)

charges for the conveyance of voice telephony Messages in relation to any services provided by means of the Licensee’s Applicable Systems which formed part of its Supplemental Services Business;

(EE)

charges for the conveyance of voice telephony Messages which are to be conveyed to customers of an Operator which is not a Fixed Link Operator;

(FF)

charges for Specially Tariffed Voice Services;

(GG)

charges for Directory Information Services;

(HH)

charges, whether paid in cash or by credit card or debit card or token or otherwise, in respect of calls from Public Call Boxes, and calls from Private Call Boxes where the charge to the renter is based on charges for calls from Public Call Boxes published by the Licensee in accordance with Condition 7, and transferred charges in respect of calls from Call Boxes;

(II)

charges for any Maritime Services;

and each discrete charge of any such description shall be treated as a separate General Price;

(ii)

for the purposes of Condition 71, has the meaning given to it in sub-paragraph (i) above, except that it shall not include those General Prices agreed between the Director and the Licensee on or before the date on which that Condition came into force and, subject to that exception, shall include:

(AA)

charges (or groups of charges) including the fee (if any) for services offered in combination with charges (or groups of charges) for other services (or groups of services) or with a periodic or non-periodic fee and which, if the relevant service (or group of services) was charged for separately or a fee was not payable, would be General Prices; and

(BB)

charges for services which, if offered to residential customers, would be General Prices;

“Industrial or Intellectual Property” includes, without prejudice to its generality, patents, designs, know-how, and copyright;

“Interim Financial Statement” means a Financial Statement prepared on a historic cost basis for each six month period ending 30th September, beginning with the six months ending 30th September 1995 and ending with the six months ending 31st March 1998, in respect of each Business and, insofar as it has been disaggregated in terms of activities of the Business, each activity of that Business (each an “Interim Financial Statement” and together the “Interim Financial Statements”). Each Interim Financial Statement comprises a profit and loss account, a statement of mean capital employed, statements of costs (if applicable) and additional information to be provided by way of notes for the relevant period;

“International Operator” means an operator recognised as such by the ITTCC;

“International Private Circuit” means a Private Leased Circuit which is provided by means both of a telecommunication system comprised in the Applicable Systems and a telecommunication system in a country or a territory other than the United Kingdom;

“International Private Circuit Prices” means all periodic and other charges imposed by the Licensee by way of any Standard Price for the connection, use and Ordinary Maintenance of that part of an International Private Circuit provided by the Licensee by means of the Applicable Systems, other than:

(i)

an International Private Circuit used to provide broadcast quality sound and vision services;

(ii)

an Offshore Private Circuit;

(iii)

a VSAT Service; or

(iv)

a circuit used in the provision of International Videoconferencing services by the Licensee;

“International Simple Resale Bearer Circuit Prices” means all charges imposed by way of a Standard Price for the connection, use and ordinary Maintenance of the parts of International Simple Resale Bearer Circuits provided by means of the Applicable Systems, other than:

(i)

charges for a Circuit used in the provision of broadcast quality sound and vision services, VSAT Services or International Videoconferencing Services;

(ii)

charges for an Offshore Private Leased Circuit; and

(iii)

charges payable by Operators under Condition 69,

and each discrete charge of any such description shall be treated as a separate International Simple Resale Bearer Circuit Price;

“International Videoconferencing” means a communication facility consisting in the simultaneous point to point conveyance by means including the Applicable Systems between a place or places in the Licensed Area and a place or places outside the United Kingdom of voice telephony Messages and associated visual images (an “International Videoconferencing Service”) whether or not on any particular occasion the International Videoconferencing Service includes a service between two places in the Licensed Area or between a place in the Licensed Area and a place in the United Kingdom;

“Inter-tandem Conveyance Standard Service” means that part of a double plus tandem Conveyance Standard Service which is not a single tandem Conveyance Standard Service and a Conveyance Standard Service provided by the Licensee from a tandem exchange to (but not over) an international switching centre;

“Inter-tandem Transit Conveyance Standard Service” means a double plus transit Conveyance Standard Service;

“ITTCC” means the International Telegraph and Telephone Consultation Committee;

“Land Mobile Radio Service” means any telecommunication service provided by wireless telegraphy for reception by means of apparatus which is or is to be used while in motion, but, except for the purposes of Condition 69, does not include services of a kind provided under Condition 66;

“Licensed Area” means the United Kingdom other than the area in which Kingston Communications (Hull) PLC is licensed to run telecommunication systems under a licence coming into force on the date on which this Licence comes into force;

“Local-tandem Conveyance Standard Service” means that part of a single tandem Conveyance Standard Service which is not a Call Origination Conveyance Standard Service or a Call Termination Standard Service, as the case may be;

“Local-tandem transmission” means the conveyance of switched Messages between (but not over) a local exchange and a tandem exchange;

“Long Run Incremental Cost Methodology” means the long run incremental cost principles and modelling processes which form the framework under which LRIC statements are prepared as agreed in writing between the Director and the Licensee on or before the date on which this definition comes into force(3), as amended from time to time in accordance with Condition 78;

“Long Run Incremental Cost Model: Relationship and Parameters” means the document with that title (along with the Detailed Attribution Methods and Detailed Valuation Methodology) containing details of the systems and processes for deriving or calculating the costs, revenues, assets and liabilities which are used by the Licensee, in addition to the descriptions in the Accounting Documents, to prepare the Financial Statements, the Restated Financial Statements and the Interim Financial Statements;

“Main Prices” means:

(i)

all periodic charges for the ordinary use and Ordinary Maintenance of an Exchange Line;

(ii)

all charges based on duration for the conveyance by means of such Exchange Lines of voice telephony Messages; and

(iii)

all charges for the provision of a Directory Information Service;

“Maritime Services” means two-way telecommunication services (including voice telephony and data transmission services) consisting in the transmission and reception of Messages conveyed or to be conveyed between seagoing vessels (including any floating structure for the exploration for, or exploitation of, oil or gas, or similar structure, while it is not maintained on a station) or hovercraft and any other point within the Applicable Systems;

“Network Components” means the network components specified on the list of network components agreed between the Director and the Licensee on 17th December 1996 and as amended from time to time by the Licensee with the consent of the Director;

“Network Cost” means:

(i)

in the case of a General Price which is not an Exchange Line Price, the aggregate of the Transfer Charges for each Network Component and each Network Part, as the case may be, applied to the provision of a Retail Service; and

(ii)

in the case of an Exchange Line Price, the costs which are in the opinion of the Director appropriately attributed by the Licensee to the provision of the service for which the Exchange Line Price is charged;

“Non-conveyance Standard Service” means a Standard Service which is not a Conveyance Standard Service;

“Off-shore Private Leased Circuit” means a communication system which is:

(i)

provided by means of both a telecommunication system comprised in the Applicable Systems and a telecommunication system which is on any installation which is maintained in waters to which the Mineral Workings (Offshore Installations) Act 1971 applies;

(ii)

made available to a person for the conveyance of Messages between points, all of which are points of connection between a public telecommunication system and a telecommunication system which is not a public telecommunication system;

(iii)

which is such that all Messages transmitted at any of the points mentioned in sub-paragraph (ii) above are received at every other such point; and

(iv)

which is such that the points mentioned in sub-paragraph (ii) above are fixed by the way in which the facility is installed and cannot otherwise be selected by persons or apparatus sending Messages by means of that facility;

“Operator” for the purposes of Condition 65 means:

(A)

in relation to a Standard Service, any person who has required, and with whom the Licensee is obliged to enter into an agreement to provide, that Standard Service under this Licence; or

(B)

in relation to a Private Leased Circuit, any person who has required, and with whom the Licensee is obliged to enter into an agreement to provide, that Private Leased Circuit;

“Ordinary Maintenance” means:

(i)

maintenance which is part of the service provided by the Licensee in consideration of the charge for an Exchange Line and includes normal fault repair, as defined in the Licensee’s standard terms and conditions;

(ii)

for the purposes of Condition 73 only, maintenance which is part of the service provided by the Licensee in consideration of the periodic Private Leased Circuit charge for any particular category of Private Leased Circuit and includes normal fault repair, as defined in the Licensee’s standard terms and conditions;

“Package” means charges or combinations of charges for any of the things included within sub-paragraph (i)(A) of the definition of General Prices which vary or may vary:

(i)

according to whether the Licensee does any other thing so mentioned for the customer in question; or

(ii)

according to the extent to which it does any of those things for that customer,

and combinations of the type described in Condition 70 (with the addition of combinations which include a non-periodic fee), but does not include any scheme made available by the Licensee for the purpose of complying with the obligations on it by Condition 41;

“Percentage Change”:

(i)

for the purposes of Condition 69, has the meaning given to it in paragraph 69.15;

(ii)

for the purposes of Condition 70, has the meaning given to it in paragraph 70.11;

“Percentage Discount Yield” means the discount yield for Relevant Year expressed as a percentage of the Control Revenue in the Relevant Financial Year;

“Period” means a calendar month or such longer period as the Director may determine;

“Private Leased Circuit Prices” means all charges imposed by way of a Standard Price for the connection, use and Ordinary Maintenance of terrestrial Private Leased Circuits which are wholly situated within the Licensed Area other than:

(i)

charges for a Private Leased Circuit used to provide analogue presented broadcast sounds and vision services;

(ii)

charges for a Private Leased Circuit used to provide closed circuit television services;

(iii)

charges for a fixed link provided to any person authorised by a Licence to provide Land Mobile Radio Services where such link is provided solely for the purpose of facilitating the provision by that person of such Services; and

(iv)

charges payable by Operators under Condition 69;

and each discrete charge of any such description shall be treated as a separate Private Leased Circuit Price;

“Quality” means the effect of the performance of the Value Added Service in a manner which, given the purpose for which it was provided, determines the degree of satisfaction of a user of that service, and, for the avoidance of doubt, does not include the charge for that service;

“Quality Schedule” means the schedule specifying:

(i)

quality measures and Target Performance;

(ii)

certain Standard Services;

(iii)

certain Private Leased Circuits;

(iv)

certain Operators or groups of Operators;

in each case as agreed between the Director and the Licensee on or before the date on which Condition 65 comes into force(4) as amended from time to time in accordance with that Condition;

“Reference Price” has the meaning given to it in Condition 70.6;

“RPI” means:

(i)

for the purposes of Condition 69, the amount of change in the Retail Prices Index in relation to any Relevant Year as specified in Condition 69.13;

(ii)

for the purposes of Conditions 70 and 71, the amount of the change in the Retail Prices Index in relation to any Relevant Year as specified in paragraph 70.9;

“Regulatory Accounting Principles” means the principles agreed in writing between the Director and the Licensee on or before the date on which Condition 78 comes into force(a), as amended from time to time in accordance with that Condition;

“Relevant Financial Year” means in relation to a Relevant Year the financial year of the Licensee ending last before the beginning of the Relevant Year, being a financial year in respect of which annual accounts have been prepared and audited in accordance with the requirements of the Companies Act 1985;

“Relevant Year” means:

(i)

except for the purposes of Condition 69, any of the four periods of 12 months beginning on 1st August starting with 1st August 1997 and ending on 31st July 2001;

(ii)

for the purposes of Condition 69 only, any of the four periods of 12 months beginning on 1st October starting with 1st October 1997 and ending on 30th September 2001;

“Residual Business” means the business or businesses of which the revenues, costs and assets are not comprised in any Business as agreed between the Director and the Licensee in accordance with Condition 78, as amended from time to time in accordance with that Condition;

“Restated Financial Statement” means a restatement prepared following, and taking account of, a recalculation and redetermination of the charge (or the means of calculating the charge) for or in respect of each Standard Service pursuant to Condition 69, of each Financial Statement for each financial year ending with the year ending 31st March 1997 and of each Interim Financial Statement for the financial year ending 31st March 1998;

“Retail Cost” means the retail cost that is in the opinion of the Director appropriately attributed by the Licensee to the provision of a Retail Service;

“Retail Prices Index” means the index of retail prices compiled by Her Majesty’s Government in respect of all items;

“Retail Service” means a service provided by the Licensee to any person for which a General Price is charged;

“Routing Factor” means the average usage by all Operators and the Licensee of each Network Component or Network Part in a particular Standard Service or Network Service;

“Score” means the Percentage Discount Yield for the Relevant Year ended 31st July 1996 (calculated under Condition 74 having effect on that date and subject to any adjustment under paragraphs 74.3, 74.4 and 74.5, but taking into account only residential customers and revenue from such customers) ;

“Special Offer” means a General Price offered by the Licensee for a limited period of time not exceeding three months specified by the Licensee at the time the General Price is first offered;

“Specially Tariffed Voice Services” means calls to access premium rate services, number translation services (including local call services, freephone services, and national call services) and other services where the charge to a customer is determined at least in part by an agreement between the Licensee and the person called;

“Standard Price” means:

(i)

for the purposes of the definition of “General Prices”, any price charged or offered by the Licensee otherwise than in relation to a Package;

(ii)

for the purposes of the definitions of “International Simple Resale Bearer Circuit Prices” and “Private Leased Circuit Prices”, any price charged or offered by the Licensee:

(A)

before the application to it of any discount; and

(B)

in relation to a contract for a fixed term, before the application to it of any discount or premium;

“Target Performance” means the minimum level of performance which the Licensee intends to provide;

“Threshold” has the meaning given to it in Condition 70;

“Transfer Charging System” means the system which enables a Business to use a service or good from another Business and to account for it as though it had purchased that service or good, as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 comes into force(5), as amended from time to time in accordance with that Condition; and

“VSAT Service” means a telecommunication service consisting in the conveyance by means including the Applicable Systems, earth orbiting apparatus and a terrestrial telecommunication system outside the United Kingdom between a point in the Licensed Area and more than one point outside the United Kingdom of Messages whether or not on any particular occasion the conveyance includes a transmission between points in the Licensed Area or between points in the Licensed Area and points in the United Kingdom.”;

(1)

31st March 1995.

(2)

31st March 1995.

(3)

31st March 1995.

(4)

31st March 1995.

(5)

31st March 1995.