The UK’s Office of Telecommunications watchdog has denied reports in the London Evening Standard last week that it will definitely abolish Access Deficit Charges in its radical overhaul of existing regulations this month. But Oftel admitted that, while abolition was only one of the options under consideration, it is emerging as one of the favourites. The payments are the charges rival operators must potentially pay British Telecommunications Plc (only Mercury Communications Ltd in fact does) to subsidise its losses for maintaining its network. The paper also reported that, as a quid pro quo, British Telecom would have curbs on the telephone rental prices it charges removed, enabling it to increase charges by early next year. Currently, rises in rental charges are capped at the rate of inflation plus two percentage points. The telecommunication company would also be allowed to reduce call charges to offset the increases, it hears, a modification of the existing policy, under which British Telecom is tied to a call-charge regime of inflation minus 7.5 percentage points until a review in August 1997. Oftel acknowledged last week that, if the charges are abolished, then inflation plus two points would have to go. Seemingly, British Telecom would then be free to re-balance rental and call charges as it sees fit, although Oftel would probably impose some restrictions on the company in regard to low-volume and other special categories of user. British Telecom refused to comment on the news, saying it was company policy not to speculate on rumours. But it acknowledged that the reported amendments are among the changes we’d like to see. According to Mercury, abolition of the charges would be great, but not an answer to its grievances. It’s encouraging news, but there’s a lot further to go, said the company, adding that it hoped Oftel’s report did not contain other provisions which amounted to ADCs by the backdoor and cited the revision of interconnect rates and an increase in Oftel’s powers of investigation as further necessary measures. The Oftel report is expected this month.
