Interconnection issues in UK telecommunications

✍ Scribed by Martin Cave

• Publisher: Elsevier Science
• Year: 1994
• Tongue: English
• Weight: 969 KB
• Volume: 4
• Category: Article
• ISSN: 0957-1787
• DOI: 10.1016/0957-1787(91)90092-j

✦ Synopsis

The growth of competitive entry in UK telecommunications markets has imposed increasing strains on the interconnection regime. At present, OFTEL determines interconnection charges between BT and other operators on a fully allocated cost basis if they are unable to agree them. In addition, other operators are liable to make contributions to BT's deficit in providing access, unless such contributions are waived by OFTEL. The paper discusses and evaluates changes that OFTEL is proposing to introduce into the interconnection regime, and argues that the efficiency and transparency of the market would be enhanced by replacing access deficit contributions with an explicit arrangement for sharing the net costs of BT's universal service obligations.