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Communications Bill


Communications Bill
Part 2 — Networks, services and the radio spectrum
Chapter 1 — Electronic communications networks and services

    76

 

           (c)           the setting of a condition the setting of which requires such a

determination to have been made;

           (d)           the modification or revocation of such a condition.

     (4)    OFCOM must not do any of the things mentioned in subsection (3) except in

accordance with arrangements maintained under that subsection.

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     (5)    Those arrangements may include arrangements requiring OFCOM, when

doing any of those things, to comply with—

           (a)           a decision made, by one or more other regulatory authorities; or

           (b)           a decision made by a person appointed under the arrangements to act

on behalf of some or all of the relevant regulatory authorities.

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     (6)    In this section—

                    “market area”, in relation to a services market identified by the European

Commission as a transnational market, means the area identified by

that Commission as the area for which the market operates; and

                    “relevant regulatory authorities”, in relation to such a market, means the

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regulatory authorities for each member State the whole or a part of

which is comprised in the market area.

 80    Review of services market identifications and determinations

     (1)    This section applies where OFCOM have identified and analysed a services

market for the purposes of making a market power determination.

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     (2)    OFCOM must, at such intervals as they consider appropriate, carry out further

analyses of the identified market for one or both of the following purposes—

           (a)           reviewing market power determinations made on the basis of an earlier

analysis;

           (b)           deciding whether to make proposals for the modification of SMP

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conditions set by reference to a market power determination made on

such a basis.

     (3)    It shall be the duty of OFCOM to carry out such a further analysis of a services

market as soon as reasonably practicable after recommendations are made by

the European Commission that affect the matters that were taken into account,

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or could have been taken into account, in the case of the last analysis by

OFCOM of that market.

     (4)    Where on, or in consequence of, a further analysis under this section, OFCOM

determine that a person to whom any SMP conditions apply is no longer a

person with significant market power in that market, they must revoke every

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SMP services condition applied to that person by reference to the market

power determination made on the basis of the earlier analysis.

     (5)    Before carrying out a further analysis under subsection (2), OFCOM may

review any decision of theirs identifying the markets which it was appropriate

to consider for the purpose of carrying out an earlier analysis.

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     (6)    Where, on such a review, OFCOM conclude that the appropriate markets have

changed—

           (a)           they must identify the markets they now consider to be the appropriate

ones; and

           (b)           those markets shall be the identified markets for the purposes of the

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further analysis.

 

 

Communications Bill
Part 2 — Networks, services and the radio spectrum
Chapter 1 — Electronic communications networks and services

    77

 

     (7)    Sections 75 to 79 apply—

           (a)           in relation to the identification of a services market for the purposes of

reviewing a market power determination under this section, as they

apply in relation to the identification of such a market for the purpose

of making a market determination; and

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           (b)           in relation to the review of such a determination, as they apply in

relation to the making of such a determination.

 81    Review of apparatus market identifications and determinations

     (1)    This section applies where OFCOM have identified and analysed an apparatus

market for the purposes of making a market power determination.

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     (2)    OFCOM must, at such intervals as they consider appropriate, carry out further

analyses of the identified market for one or both of the following purposes—

           (a)           reviewing market power determinations made on the basis of an earlier

analysis;

           (b)           deciding whether to make proposals for the modification of SMP

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conditions set by reference to any such market power determination.

     (3)    Where on, or in consequence of, a further analysis under this section, OFCOM

determine that a person to whom any SMP conditions apply is no longer a

person with significant market power in that market, they shall revoke every

SMP apparatus condition applied to that person by reference to the market

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power determination made on the basis of the earlier analysis.

     (4)    Before carrying out any further analysis under subsection (2), OFCOM may

review any decision of theirs identifying the markets which it was appropriate

to consider for the purpose of carrying out any earlier analysis.

     (5)    Where on such a review OFCOM conclude that the appropriate markets have

25

changed—

           (a)           they shall identify the markets they now consider to be the appropriate

ones; and

           (b)           those markets shall be the identified markets for the purposes of the

further analysis.

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     (6)    Where on such a review OFCOM conclude that there is no person at all with

significant market power in relation to the identified market—

           (a)           they must so inform the Secretary of State; and

           (b)           the Secretary of State may by order remove or restrict OFCOM’s power

under this Chapter to set SMP apparatus conditions by reference to that

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market.

     (7)    Sections 75, 76 and 77(1) apply—

           (a)           in relation to the identification of a apparatus market for the purposes

of reviewing a market power determination under this section, as they

apply in relation to the identification of such a market for the purpose

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of making a market determination; and

           (b)           in relation to the review of such a determination, as they apply in

relation to the making of such a determination.

 

 

Communications Bill
Part 2 — Networks, services and the radio spectrum
Chapter 1 — Electronic communications networks and services

    78

 

 82    Cases where review required

     (1)    OFCOM must not set an SMP services condition by a notification which does

not also make the market power determination by reference to which the

condition is set unless—

           (a)           the condition is set by reference to a market power determination

5

which has been reviewed under section 80 and, in consequence of that

review, is confirmed in the notification setting the condition; or

           (b)           the condition is set by reference to a market power determination made

in relation to a market in which OFCOM are satisfied there has been no

material change since the determination was made.

10

     (2)    OFCOM must not modify or revoke SMP services conditions applying to a

person except in a case falling within subsection (3) or (4).

     (3)    The first case is where, for the purpose of determining whether to make the

modification or revocation, OFCOM have—

           (a)           carried out a further analysis under section 80 of the market in question;

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and

           (b)           reviewed the market power determination for the time being in force in

that person’s case.

     (4)    The second case is where OFCOM are satisfied that there has not—

           (a)           in the case of an unmodified condition, since the condition was set, or

20

           (b)           in any other case, since the condition was last modified,

            been a material change in the market identified or otherwise used for the

purposes of the market power determination by reference to which the

condition was set or last modified.

     (5)    OFCOM must not modify SMP apparatus conditions applying to a person

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except where, for the purpose of determining whether to make the

modification or revocation, they have—

           (a)           carried out a further analysis under section 81 of the market in question;

and

           (b)           reviewed the market power determination for the time being in force in

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that person’s case.

     (6)    A change is a material change for the purposes of subsection (1) or (4) if it is one

that is material to—

           (a)           the setting of the condition in question; or

           (b)           the modification or revocation in question.

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SMP services conditions: subject matter

 83    Conditions about network access etc.

     (1)    Where OFCOM have made a determination that a person to whom this section

applies (“the dominant provider”) has significant market power in an

identified services market, they shall—

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           (a)           set such SMP conditions authorised by this section as they consider it

appropriate to apply to that person in respect of the relevant network

or relevant facilities; and

           (b)           apply those conditions to that person.

     (2)    This section applies to—

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Communications Bill
Part 2 — Networks, services and the radio spectrum
Chapter 1 — Electronic communications networks and services

    79

 

           (a)           a person who provides a public electronic communications network;

and

           (b)           a person who makes available facilities that are associated facilities by

reference to such a network.

     (3)    This section authorises SMP conditions requiring the dominant provider to

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give such entitlements as OFCOM may from time to time direct as respects—

           (a)           the provision of network access to the relevant network;

           (b)           the use of the relevant network; and

           (c)           the availability of the relevant facilities.

     (4)    In determining what conditions authorised by subsection (3) to set in a

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particular case, OFCOM must take into account, in particular, the following

factors—

           (a)           the technical and economic viability, having regard to the state of

market development, of installing and using facilities that would make

the proposed network access unnecessary;

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           (b)           the feasibility of the provision of the proposed network access;

           (c)           the investment made by the person initially providing or making

available the network or other facility in respect of which an

entitlement to network access is proposed;

           (d)           the need to secure effective competition in the long term;

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           (e)           any rights to intellectual property that are relevant to the proposal; and

           (f)           the desirability of securing that electronic communications services are

provided that are available throughout the member States.

     (5)    The conditions authorised by subsection (3) may include provision—

           (a)           for securing fairness and reasonableness in the way in which requests

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for network access are made and responded to; and

           (b)           for securing that the obligations contained in the conditions are

complied with within the periods and at the times required by or under

the conditions.

     (6)    The SMP conditions authorised by this section also include one or more of the

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following—

           (a)           a condition requiring the dominant provider not to discriminate

unduly against particular persons, or against a particular description of

persons, in relation to matters connected with network access to the

relevant network or with the availability of the relevant facilities;.

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           (b)           a condition requiring the dominant provider to publish, in such

manner as OFCOM may from time to time direct, all such information

as they may direct for the purpose of securing transparency in relation

to such matters;

           (c)           a condition requiring the dominant provider to publish, in such

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manner as OFCOM may from time to time direct, the terms and

conditions on which he is willing to enter into an access contract;

           (d)           a condition requiring the terms and conditions on which the dominant

provider is willing to enter into an access contract to include such terms

and conditions as may be specified or described in the condition;

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           (e)           a condition requiring the dominant provider to make such

modifications as OFCOM may direct of any offer by that provider

which sets out the terms and conditions on which he is willing to enter

into an access contract.

 

 

Communications Bill
Part 2 — Networks, services and the radio spectrum
Chapter 1 — Electronic communications networks and services

    80

 

     (7)    The SMP conditions authorised by this section also include conditions

requiring the dominant provider to maintain a separation for accounting

purposes between such different matters relating—

           (a)           to network access to the relevant network, or

           (b)           to the availability of the relevant facilities,

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            as OFCOM may from time to time direct.

     (8)    The SMP conditions authorised by subsection (7) include conditions imposing

requirements about the accounting methods to be used in maintaining the

separation.

     (9)    The SMP conditions authorised by this section also include (subject to section

10

84) conditions imposing on the dominant provider—

           (a)           such price controls as OFCOM may direct in relation to matters

connected with the provision of network access to the relevant

network, or with the availability of the relevant facilities;

           (b)           such rules as they may make in relation to those matters about the

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recovery of costs and cost orientation;

           (c)           such rules as they may make for those purposes about the use of cost

accounting systems; and

           (d)           obligations to adjust prices in accordance with such directions given by

OFCOM as they may consider appropriate.

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     (10)   The SMP conditions authorised by subsection (9) include conditions requiring

the application of presumptions in the fixing and determination of costs and

charges for the purposes of the price controls, rules and obligations imposed

by virtue of that subsection.

     (11)   Where OFCOM set a condition authorised by this section which imposes rules

25

on the dominant provider about the use of cost accounting systems, it shall be

their duty also to set, and to apply to him, an SMP condition which imposes on

him an obligation—

           (a)           to make arrangements for a description to be made available to the

public of the cost accounting system used in pursuance of that

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condition; and

           (b)           to include in that description details of—

                  (i)                 the main categories under which costs are brought into account

for the purposes of that system; and

                  (ii)                the rules applied for the purposes of that system with respect to

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the allocation of costs.

     (12)   In this section—

                    “access contract” means—

                  (a)                 a contract for the provision by a person to whom this section

applies to another person of network access to the relevant

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network; or

                  (b)                 a contract under which the relevant facilities are made available

by a person to whom this section applies to another person;

                    “the relevant facilities”, in relation to a person to whom this section

applies, means the associated facilities made available by that person in

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relation to a public electronic communications network; and

                    “the relevant network”, in relation to such a person, means the public

electronic communications network provided by him.

 

 

 
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Revised 20 November 2002