CONTINUATION NOTICE TO BRITISH TELCOMMUNICATIONS PLC UNDER PARAGRAPH 9 OF SCHEDULE 18 TO THE COMMUNICATIONS ACT 2003

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1 CONTINUATION NOTICE TO BRITISH TELCOMMUNICATIONS PLC UNDER PARAGRAPH 9 OF SCHEDULE 18 TO THE COMMUNICATIONS ACT 2003 Notice that the conditions set out in Schedule 1 to this notice will have effect from 25 th July The Director General of Telecommunications ( the Director ), in accordance with Paragraph 9 of Schedule 18 to the Communications Act 2003 ( the Act ) hereby gives notice to British Telecommunications plc ( the Licensee ) that the conditions set out in the licence granted by the Secretary of State for Trade and Industry on 22 June 1984 to British Telecommunications under section 7 of the Telecommunications Act 1984 which, by virtue of section 109 of, and paragraph 20 to, schedule 5 of that Act has effect as if granted to the Licensee ( the Original Licence ) and set out in Schedule 1 to this notice, will continue to have effect from 25 th July 2003 as modified and to the extent set out in Schedule 1 ( the Continued Provisions ). 2. The Director considers, for the reasons set out in the statement which the Director will publish, that each of the Continued Provisions listed in Schedule 2 to this notice, correspond to one or more of the provisions contained in Paragraph 9(4) of Schedule 18 to the Act. 3. The modifications set out in the Continued Provisions are made: a) to secure that the Continued Provisions continue to have effect whilst this notice is in force; and, as appropriate, b) to ensure that a requirement of the Original Licence must continue to be met for so long as this notice remains in force. 4. Any directions, determinations, consents and other provisions made by or under the Original Licence which have been given or made for the purposes of the Continued Provisions and, in accordance with Paragraphs 9(8) and (c) of Schedule 18 to the Act, are to remain in force for so long as this notice is in force. 5. This notice shall continue to have effect until the Director has given a further notice to the Licensee in accordance with Paragraph 9 of Schedule 18 to the Act that this notice shall cease to have effect. 6.The Director issued a consultation as to his proposals to continue the conditions on 3 July 2003 and requested comments by 14 July The Director has taken into account the comments he received during that consultation. 7. In this notice, except as otherwise provided or unless the context otherwise requires, words or expressions shall have the meaning assigned to them and otherwise any word or expression shall have the same meaning as it has in the Act. For the purposes of interpreting this notice, headings and titles shall be disregarded. 1

2 DAVID ALBERT EDMONDS DIRECTOR GENERAL OF TELECOMMUNICATIONS 23 July

3 Schedule 1 In accordance with the continuation notice, the conditions of the Licence set out in this Schedule will continue to have effect as modified and to the extent set out below ( the Continued Provisions ). Interpretation 1. In this Schedule, except as otherwise provided or unless the context otherwise requires, words or expressions shall have the meaning assigned to them. Expressions cognate with those referred to in this Schedule shall also be construed accordingly. For the purposes of interpreting this Schedule, headings and titles shall be disregarded. 2. The Interpretation Act 1978 shall apply for the purposes of interpreting this Schedule as if it were an Act of Parliament. 3. For the purpose of interpreting the Continued Provisions in this Schedule the following definitions shall apply: Access Network Facilities has the meaning given to it in sub-paragraph 4 of Condition 83; Access Network Frequency Plan means a plan intended to prevent or minimise Interference arising from the use of any equipment or apparatus connected or intended to be connected directly or indirectly to Metallic Path Circuits in the Licensee s Applicable Systems and which is published or approved by the Director; Access Service has, for the purposes of Condition 69B, the meaning given to it in Condition 69B.1; Access Service Charges for the purposes of Condition 69B means charges (being in all cases the amounts offered or charged by the Licensee) to Service Providers for Access Services described in paragraphs 69B.11 to 69B.11(d), as the case may be, of Condition 69B; 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, as amended from time to time in accordance with that Condition; 3

4 Applicable Systems means telecommunications systems of every description within the United Kingdom provided that a system ( the System ) is an Applicable System only to the extent it satisfies each of the following conditions: the System is one by means of which Messages are conveyed or are to be conveyed: (iii) (iv) from one Network Termination Point to another such Point; from a Network Termination Point to another place which is neither a Network Termination Point nor a Call Office or from such a place to such a Point; between a place which is neither a Network Termination Point nor a Call Office and another such place where their conveyance is not by way of provision of a service to another person; or between a Call Office and any other place, but in any case not beyond a Network Termination Point; (c) none of the apparatus comprised in the System is Relevant Terminal Apparatus installed on premises occupied by a person to whom there are provided telecommunications services by means of the System; and the System is not, insofar as it is within the Hull Area, connected to any Network Termination Point other than one in an item of Network Connecting Apparatus which Point exists for the purpose of connecting the System to an aircraft, a seagoing vessel or hovercraft or to another public telecommunication system run by either the Kingston Communications (Hull) PLC or any other person running a public telecommunication system within the Hull Area; Approved Apparatus means in relation to any system apparatus approved under Section 22 of the Telecommunications Act 1984 or which meets the appropriate essential requirements of regulation 4 of the RTTE Regulations; 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, as amended from time to time in accordance with that Condition; Auditing Standards means United Kingdom auditing standards and guidelines issued from time to time by the Auditing Practices Board or its predecessor body, the Auditing Standards Body; Auditor means the Licensee s auditor for the time being appointed in accordance with the requirements of the Companies Act 1985; 4

5 Autodiallers means apparatus by means of which Carrier Pre-Selection Standard Services can be provided and which is located at the premises of the Subscriber and routes calls to the dialled number from that Subscriber to the Pre-selected Operator by means of the addition of a prefix. Bringing into Service means the process of connecting by means requiring the use of a tool telecommunication apparatus (including apparatus comprised in a telecommunication system) or a telecommunication system to another telecommunication system, or the process of disconnecting by such means such apparatus or such system from another such system; and includes such testing or inspection of that apparatus or system and any other apparatus or system to which is or is to be connected as is necessary for the purpose of ensuring that the apparatus or the system in which it is or is to be comprised, or the system, is capable of being connected to any of the Applicable Systems; 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 Box means any kiosk, booth, acoustic hood, shelter or similar structure which includes a Call Office at which apparatus is installed for the provision of voice telephony service to the public or a class of the public together with such apparatus; Call Box Services means the installation, repair and maintenance of Call Boxes, the service of conveying by means of the Applicable Systems voice telephony messages to and from such Boxes, directory information services relating to switched voice telephony services available at such Boxes and Public Emergency Call Services so available; Call Office means telecommunication apparatus not supplied by the Licensee to any particular person but made available for use by the public or a class of the public; 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; Calls to Mobiles mean, for the purposes of Condition 70, a circuit switched conveyance of a Message originating in a telecommunication system which is not an Applicable System but which is connected to any of the Applicable Systems, and intended to terminate on a handset connected to the mobile public telecommunication system of any Specified Mobile Operator, other than: 5

6 any call by which there is conveyed a voice telephony Message in relation to any services provided by means of any of the Applicable Systems which form part of its Supplemental Services Business; any call, however paid for, from a Public Call Box, any call from a Private Call Box where the charge to the renter is based on charges for calls from Public Call Boxes published by the Licensee and transferred in respect of calls from Calls from Call Boxes; (c) any call connected with the assistance of a human operator; (d) any call billed by means of the Licensee s Chargecard service or any successor service; 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; Carrier Pre-selection means a facility whereby Subscribers who so request can: 1. choose certain categories of Publicly Available Telephone Service to be carried by the Pre-selected Operator without having to dial an Access Code prefix or follow any other procedure to invoke such routing; and 2. suspend any pre-selected choice in (1) above for individual calls on a callby-call basis by dialling an Access Code prefix having made arrangements to do so with alternative Operators. Carrier Pre-selection Facilities means those facilities which enable the Pre-selected Operator to provide to the Subscriber requesting Pre-selection from the Licensee the categories of Publicly Available Telephone Services specified in that request and comprise System Set-Up Facilities and Carrier Pre-selection Standard Services. Carrier Pre-selection Functional Specification means a document published from time to time by the Director following consultation with the Licensee and Interested Parties which specifies technical and other principles which are intended to effect the efficient implementation and utilisation of Carrier Pre-Selection and Carrier Pre- Selection Facilities. Carrier Pre-selection Standard Services comprise, Per Operator Set-Up Facilities and Per Customer Line Set-Up Facilities which are both Standard Services provided by the Licensee in accordance with Condition 45 of this Licence. Carrier Pre-selection System Set-Up Costs means the costs incurred by the Licensee in developing and implementing System Set-Up Facilities. 6

7 Carrier Pre-selection System Set-Up Facilities means the software and any alterations needed on the Licensee s switches and the modifications required for the Licensee s support systems to enable the Licensee to provide Carrier Pre-selection Facilities. Charges for the purposes 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 paragraphs 69.6, 69.6, 69.6(c) or 69.6(e), 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 charge for Standard Services; for the purposes of Condition 69A, means charges (being in all cases the amounts offered or charges by the Licensee) to Operators for the fourteen Non-conveyance Portability Standard Services described in paragraph 69A.2, other than charges for Competitive Portability Standard Services, and each discrete charge of any such description shall be treated as a separate charge for Portability Standard Services. Code Powers means powers granted to the Licensee or another Operator under Schedule 2 of the Telecommunications Act 1984; Co-location means the provision of space on reasonable terms permitting an Operator to occupy part of and MDF Site reasonably sufficient to permit the use of one or more Metallic Path Facilities, and in particular to permit the connection of the Licensee s Applicable Systems or equipment with the telecommunications systems or equipment of an Operator at that location; Commonly Provided Network Termination Points means: for analogue and digitally presented networks or both: (iii) (iv) single line interface; multiline interface; direct dialling-in (DDI) interface; other interfaces commonly provided; and for ISDN (where provided) (iii) specification of basic and primary rate interfaces at the S/T reference points, including the signalling protocol; details of bearer services able to carry voice telephony services; other interfaces commonly provided; and (c) any other interfaces commonly provided; 7

8 Competitive Portability Standard Service means a service relating to the provision of Portability which, unless a contrary determination by the Director applies pursuant to Condition 47.10: a Schedule 2 Public Operator has requested the Licensee to offer to enter into an agreement to provide under Condition 45; the market for which has been determined by the Director to be competitive under Condition Competitive Standard Service means a service which, unless a contrary determination by the Director applies pursuant to Condition 47.10: a Schedule 2 Public Operator has requested the Licensee to offer to enter into an agreement to provide under Condition 45; the market for which has been determined by the Director to be competitive under Condition 47.10; Condition means a Continued Provision in this Schedule; Connectable System means a telecommunication system which is capable of being connected to the Applicable Systems; Connection Service means a telecommunication service consisting in the conveyance of any Message which has been, or is to be, conveyed by means of the Applicable Systems; Consumer means, for the purposes of Conditions 53 and 54 of this Licence, any natural person who uses a Publicly Available Telephone Service for purposes which are outside his trade, business or profession; Controlling Percentage : (iii) (iv) (v) for the purposes of Condition 69, has the meaning given to it in Condition 69.13; for the purposes of Condition 69B, has the meaning given to it in Condition 69B.15; for the purposes of Condition 70, has the meaning given to it in Condition 70.6; for the purposes of Condition 73, has the meaning given to it in Condition 73.1; for the purposes of Condition 69A, has the meaning given to it in Condition 69A.12; Conveyance Outpayment Cost means any payment made to any person by the 8

9 Licensee in respect of the conveyance of a call which is not a Delivery Outpayment Cost; Conveyance Portability Standard Service means a Portability Standard Service comprising the conveyance of switched Messages; Conveyance Standard Service means a Standard Service comprising the conveyance of switched Messages; Delivery Outpayment Cost means either: (iii) 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 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 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; Director means the Director General of Telecommunications or Ofcom as appropriate; Directory Information means, in the case of directories, the name, address and telephone number of the Subscriber and, in the case of a Directory Information Service, may include the telephone number only of the Subscriber or information that the telephone number of the Subscriber may not be supplied; 9

10 Directory Information Service for the purposes of Condition 69 means Directory Information provided by means of a telephone system; Emergency means an emergency of any kind, including any circumstance whatever resulting from major accidents, natural disasters and incidents involving toxic or radio-active materials; Emergency Organisation means in respect of any locality: the relevant public police, fire, ambulance and coastguard services for that locality; and any other similar organisation in respect of which any public telecommunications operator operates in the locality in question is providing a Public Emergency Call Service on the day on which this Licence entered into force; End-user means for the purposes of the definition of Network Service any person not running a telecommunication system or providing a telecommunication service; Exchange Line means telecommunication apparatus (within the meaning of Schedule 2 to the Telecommunications Act 1984) comprised in the Applicable Systems and installed for the purpose of connecting a telephone exchange run by the Licensee to a Network Termination Point comprised in Network Termination and Testing Apparatus installed by the Licensee for the purpose of providing voice telephony services at the premises at which the Network Termination and Testing Apparatus is located; Exchange Line Price means a General Price imposed by the Licensee for: the use and Ordinary Maintenance; and the connection or taking over; of an Exchange Line; External Tie Circuit means a link by means of a Metallic Path Circuit of Relevant Specification that connects a Metallic Path Facility to the telecommunication systems of an Operator at a location outside the MDF Site; Existing Line Transfer means the combination of transactions consisting of a customer (including a customer who is a service provider) of the Licensee for an Exchange Line terminating his contract ( the customer contact ) with the Licensee for the Exchange Line, and the Licensee entering into a contract for that Exchange Line with a Service Provider ( the Service Provider contract ), except where the Service Provider contract is entered into after the Licensee has ceased the Exchange Line (in which case the Service Provider contract shall be deemed to be a New Line Installation). Final Order means an order under section 16 of the Telecommunications Act 1984 other than a Provisional Order; 10

11 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 who does not provide a Land Mobile Radio Service; Fixed Public Telephone Network means the public switched telecommunications network which supports the transfer between Network Termination Points at fixed locations of speech and 3.1 KHz bandwidth audio information, to support inter alia: voice telephony, facsimile Group III communications, in accordance with ITU-T Recommendations in the T-Series, and (iii) voice band data transmission via modems at a rate of at least 2,400 bit/s, in accordance with ITU-T Recommendations in the V-Series, where access to the end-user s Network Termination Point is via a number or numbers in either the National Telephone Numbering Plan or General Condition of Entitlement 17 (Allocation, adoption and use of telephone numbers) ; Fixed Public Telephone System means the telecommunication systems run by a person which form part of the Fixed Public Telephone Network by means of which Fixed Publicly Available Telephone Services are provided; Fixed Publicly Available Telephone Service means the provision to end-users at fixed locations of a service for the originating and receiving of national and international calls, including voice telephony services, and may include, in addition, access to emergency 112 services, the provision of operator assistance, directory services, provision of public-pay telephones, provision of service under special terms or provision of special facilities for customers with disabilities or with special social needs but does not include Value Added Services provided over the Public Telephone System; Framework Directive means Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services; General Conditions of Entitlement means those conditions set from time to time by the Director pursuant to section 45 of the Communications Act 2003; General Prices mean: (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; 11

12 (C) charges for the conveyance by means of such Exchange Lines of voice telephony Messages from a place within the United Kingdom (excluding the Hull Area) to any other place (whether or not within the United Kingdom (excluding the Hull Area)); (D) charges for the facility of transferring, with assistance from a human operator, voice telephony Messages referred to in subparagraph (C) above; (E) the Retention of Calls to Mobiles; and (F) 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 Value Added Service (or group of services) was charged for separately or a fee was not payable, would be General Prices, 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 for 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 71, and transferred charges in respect of calls from Call Boxes; (II) charges for any Maritime Services; 12

13 and each discrete charge of any such description shall be treated as a separate General Price; for the purposes of Condition 71, the meaning given to it in subparagraph 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 charges for services which, if offered to residential customers, would be General Prices; Geographic Numbering Range means a range of numbers from the National Telephone Numbering Plan or General Condition of Entitlement 17 (Allocation, adoption and use of telephone numbers) as appropriate where part of the digit structure contains a geographic significance used for routing calls to the physical location of the Network Termination Point of the Subscriber to whom the Number has been assigned; Geographic Portability means Portability relating to Numbers allocated as provided for in the National Telephone Numbering Plan in accordance with the rules for the allocation of Geographic Numbering Ranges; Group means a Parent Undertaking and its subsidiary undertaking or undertakings within the meaning of Section 258 of the Companies Act 1985 as substituted by section 21 of the Companies Act 1989; and Licensee s Group means a Group in respect of which the Licensee is either a Parent Undertaking or a subsidiary undertaking; the Hull Area means the defined Licensed Area in the licence granted on 30 November 1987 by the Secretary of State under section 7 of the Telecommunications Act 1984 to Kingston upon Hull City Council and Kingston Communications (Hull) PLC; Integrated Services Digital Network (ISDN) means a network evolved from the telephony integrated digital network that provides for end-to-end digital connectivity to support a wide range of services, including voice and non-voice services, to which users have access by a limited set of standard multi-purpose customer interfaces; Interconnection means the physical and logical linking of telecommunications systems used by the same or a different organisation in order to allow the users of one organisation to communicate with users of the same or another organisation or to access services provided by another organisation irrespective of whether services are provided by the parties involved or other parties who have access to the systems; Interconnection Directive means Directive 97/33/EC on interconnection in telecommunications with regard to ensuring universal service and interoperability through the application of the principles of open network provision (ONP) which was in force prior to its repeal by the Framework Directive; 13

14 Interconnection Regulations means the Telecommunications (Interconnection) Regulations 1997 (S.I. 1997/2931) which were in force prior to their repeal by the Communications Act 2003; Interested Parties means those persons (if any), other than the Licensee, with whom, in any particular case, the Director is required or considers it appropriate to consult; Interference means adverse effects, beyond any limits prescribed in the Access Network Frequency Plan, caused by any use of a Metallic Path Facility on any telecommunications service; 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. Internal Tie Circuit means a link by means of a Metallic Path Circuit of Relevant Specification, the whole of which is contained within an MDF Site, that connects a Metallic Path Facility to the telecommunication systems or equipment of an Operator; International Directory Service means the provision by means of the Applicable Systems of the telephone number, or information that the telephone number may not be supplied, of any natural or legal person located outside the United Kingdom; 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 territory other than the United Kingdom; International Simple Resale Bearer Circuit means a communication facility which is: comprised both in a public telecommunication system and in an equivalent telecommunication system in a country or territory other than the United Kingdom; for the conveyance of Messages between: (A) in the case of outbound Messages, the last point of connection within the United Kingdom at which the route of the Messages is selected and the first point of connection in any country or territory other than the United Kingdom; 14

15 (B) in the case of inbound Messages, the last point of connection in any country or territory other than the United Kingdom and the first point of connection in the United Kingdom at which the route of the Messages is selected; (iii) (iv) (v) (vi) (vii) made available to a particular Service Provider; such that all of the Messages transmitted at any of the points mentioned in sub-paragraph above are received at every other such point; such that all the points mentioned in sub-paragraph above are points of connection between telecommunication systems referred to in sub-paragraph above and other telecommunication systems; and such that all the points mentioned in sub-paragraph above are fixed by the way in which the facility is installed and cannot otherwise be selected by persons or telecommunication apparatus sending Messages by means of that facility; but excluding from the extent of the facility any Private Leased Circuit installed between the particular Service Provider and any other person in the United Kingdom; 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: charges for a Circuit used in the provision of broadcast quality sound and vision services, VSAT Services or International Videoconferencing Services; 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 United Kingdom (excluding the Hull 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 United Kingdom (excluding the Hull Area) or between a place in the United Kingdom (excluding the Hull Area) and a place in the United Kingdom (including the Hull Area); 15

16 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; ITU-T means the International Telecommunications Union; 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 the provision of distress, urgency and safety services for shipping in accordance with the Radio Regulations of the International Telecommunications Union; Leased Lines Directive means Directive 92/44/EEC on the application of open network provision to leased lines as amended by Directive 97/51/EC amending Directives 90/387/EEC and 92/44/EEC for the purpose of adaptation to a competitive environment in telecommunications which was in force prior to its repeal by the Framework Directive; Leased Lines Regulations means the Telecommunication (Open Network Provision and Leased Lines) Regulations 1997 (S.I 1997/2932) which were in force prior to their repeal by the Communications Act 2003; Licence means the Continued Provisions in this Schedule; Licensee means British Telecommunications plc; 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 came into force, as amended from time to 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 16

17 Licensee, in addition to the descriptions in the Accounting Documents, to prepare the Financial Statements, the Restated Financial Statements and the Interim Financial Statements; Major Office means the Licensee s registered office and such other offices as the Director may agree from time to time; 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; MDF Site means the site of an operational building of the Licensee that houses a main distribution frame; Message means anything falling within the following: speech, music and other sounds; visual images; (c) signals serving for the impartation (whether as between persons and persons, things and things or persons and things) of any matter otherwise than in the form of sounds or visual images; or (d) signals serving for the actuation or control of machinery or apparatus; Metallic Path Circuit means a circuit comprising a pair of twisted metal wires employing electric, magnetic, electro-magnetic, electro-chemical or electro mechanical energy to transmit Messages when connected to telecommunications apparatus or to telecommunications systems; Metallic Path Facility means a service permitting the use of a Metallic Path Circuit of Relevant Specification between the premises of an Operator or a retail customer of an Operator and an Internal Tie Circuit or External Tie Circuit; Mobile Public Telephone System means any telecommunication system by means of which Publicly Available Mobile Telephone Services are provided at Network Termination Points connected to telecommunication systems which are designed or adapted to be capable of being used while in motion; Mobile Radio Telecommunication Service means any telecommunication service consisting in the conveyance of Messages by means of a telecommunication system where every Message that is conveyed thereby has been, or is to be, conveyed through the agency of Wireless Telegraphy to or from a telecommunication system which is designed or adapted to be capable of being used while in motion; National Telephone Numbering Plan means the document published by the Director from time to time pursuant to section 56 of the Communications Act 2003; 17

18 Network Charge Change Notice has the meaning given to it in Condition 69.4 or Condition 47.5, whichever is applicable to the Licensee; 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 Connecting Apparatus means telecommunication apparatus comprised in the Applicable Systems which is not Network Termination and Testing Apparatus and is connected to another telecommunication system; Network Cost means: 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 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; Network Parts means the network parts specified on the list of network parts 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 Service means any of the following: (iii) a service consisting only of functions which enable End-users to send, receive, or both, Messages to or from one or more End-users, including functions which enable the establishment of a prior connection between such End-users; a service which consists only of functions which could not practically be provided to an End-users in identical form by anyone other than the Licensee, because those functions are dependent upon the functions referred to in sub-paragraph above; any service which has been agreed by the Licensee and the Director; Network Termination and Testing Apparatus means an item in telecommunication apparatus comprised in the Applicable Systems installed in a fixed position on Served Premises which enables: Approved Apparatus to be readily connected to, and disconnected from, the Applicable Systems; the conveyance of Messages between such Apparatus and the Applicable Systems; and 18

19 (iii) the due functioning of the Applicable Systems to be tested, but the only other functions of which, if any, are: (A) to supply energy between such Apparatus and the Applicable Systems; (B) to protect the safety or security of the operation of the Applicable Systems; or (C) to enable other operations exclusively related to the running of the Applicable Systems to be performed or the due functioning of any system to which the Applicable Systems are or are to be connected to be tested (separately or together with the Applicable Systems); Network Termination Point means any point: (iii) within an item of Network Connecting Apparatus at which electric, magnetic, electro-magnetic, electro-chemical or electro-mechanical energy is conveyed directly to or from apparatus comprised in a telecommunication system other than one in which that Network Connecting Apparatus is comprised; or within an item of Network Termination and Testing Apparatus at which such energy is conveyed directly to any Relevant Terminal Apparatus; or which in the case of a radio based telecommunication system, is the last point at which Messages are transmitted, or the first point at which Messages are received in the form of electromagnetic signals, by apparatus run by a person other than the Licensee and lawfully connected to that system; New Line Installation means a service provided under Condition 69B for the installation of an Exchange Line, where some or all external (or internal) wiring has to be provided, or brought into use, by the Licensee. For purposes of this definition, external wiring means wiring from the distribution point to the protection box (or where one would be fitted) at the premises at which the Network Termination and Testing Apparatus is located and internal wiring means wiring from the protection box up to and including the first main socket, block terminal or other Network Termination Point New Portability Standard Service means a service relating to the provision of Portability which, unless a contrary determination by the Director applies pursuant to Condition 47.10: the Licensee first provides after it has been determined by the Director to be an Operator having Significant Market Power pursuant to Regulation 4(1) of the Interconnection Regulations; 19

20 a Schedule 2 Public Operator has requested the Licensee to offer to enter into an agreement to provide under Condition 45. New Standard Service means a service which, unless a contrary determination by the Director applies pursuant to Condition 47.10: the Licensee first provided after it was determined by the Director to be an Operator having Significant Market Power pursuant to regulation 4(1) of the Interconnection Regulations; a Schedule 2 Public Operator has requested the Licensee to offer to enter into an agreement to provide under Condition 45; Non-conveyance Portability Standard Service means a Portability Standard Service which is not a Conveyance Portability Standard Service. Non-conveyance Standard Service means a Standard Service which is not a Conveyance Standard Service; Non-Geographic Portability means Portability relating to Numbers allocated in accordance with the rules for the allocation of Number Ranges other than Geographic Number Ranges as provided for in the National Telephone Numbering Plan but excluding Portability relating to Numbers allocated for use with Mobile Radio telecommunications services and Radiopaging Services; Number means: any identifier which would need to be used in conjunction with any public switched telecommunication service for the purposes of establishing a connection with any Network Termination Point, user, telecommunication apparatus connected to any Public Switched Network or service element, but not including any identifier which is not accessible to the generality of users of a public switched service; [ ] Number Portability means a facility whereby Subscribers who so request can retain their number on a Fixed Public Telephone System and the integrated services digital network (ISDN), independent of the organisation providing the service at the Network Termination Point of a Subscriber at a specific location in the case of Geographic Portability or at any location in the case of Non-Geographic Portability; Numbering Ranges means a range of numbers as described in the National Telephone Numbering Plan or General Condition of Entitlement 17 (Allocation, adoption and use of telephone numbers) as appropriate; Offshore Private Leased Circuit means a communication system which is: provided by means of both a telecommunication system comprised in the Applicable Systems and a telecommunication system which is on 20

21 any installation which is maintained in waters to which the Mineral Workings (Offshore Installations) Act 1971 applies; (iii) (iv) 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; which is such that all Messages transmitted at any of the points mentioned in sub-paragraph above are received at every other such point; and which is such that the points mentioned in sub-paragraph 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 means, except for Condition 65, any person running a telecommunications system for the purposes of providing telecommunications services; Operator for the purposes of Condition 65 means: (A) (B) 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 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: 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; 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 (A) of the definition of General Prices which vary or may vary: according to whether the Licensee does any other thing so mentioned for the customer in question; or 21

22 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 imposed on it by General Condition of Entitlement 15 (Special Measures for End-Users with Disabilities) ; Parent Undertaking has the same meaning as in section 258 of the Companies Act 1985 as substituted by section 21 of the Companies Act 1989; Percentage Change : (iii) (iv) (v) for the purposes of Condition 69, has the meaning given to it in paragraph 69.15; for the purposes of Condition 70, has the meaning given to it in paragraph 70.2; for the purposes of Condition 69A, has the meaning given to it in Condition 69A.14; for the purposes of Condition 69B, in relation to the aggregate of charges for the Access Services specified in paragraphs 69B.11 to 69B.11(d) has the meaning given to it in paragraph 69B.12; for the purposes of Condition 69B, in relation to the charge for Existing Line Transfer, has the meaning given to it in paragraph 69B.14. Per Customer Line Set-Up Costs means the costs incurred by the Licensee in providing Per Customer Line Set-Up Facilities; Per Customer Line Set-Up Facilities means the Carrier Pre-selection Facilities required by a Pre-selected Operator for a particular Subscriber Line in order to meet that Subscriber s request for Carrier Pre-selection; Per Operator Set-Up Costs means the costs incurred by the Licensee in providing Per Operator Set-Up Facilities; Per Operator Set-Up Facilities means the Carrier Pre-selection Facilities required from the Licensee by any individual Pre-selected Operator for the routing of calls specified in a Subscriber s request for Carrier Pre-selection and for the purposes of Condition 50A include activities similar to data management amendments and the setting up of arrangements for the electronic transfer of customers orders. Period means a calendar month or such longer period as the Director may determine; 22

23 Point of Connection means a point at which the Applicable Systems and an Operator s system are connected; Portability means any facility which may be provided by the Licensee to an Operator or to a Service Provider enabling any Subscriber who requests Number Portability to continue to be provided with any telecommunication service by reference to the same Number irrespective of the identity of the person providing such a service; Portability Standard Service has the meaning given to it in Condition 69A.23 Pre-selected Operator means a Public Operator who: 1. is a Schedule 2 Public Operator; 2. who has notified the Licensee that it is able and willing to provide to the Subscriber who is requesting Carrier Pre-selection from the Licensee the same categories of Publicly Available Telephone Service as those included in that Subscriber s request for Carrier Pre-selection. Private Call Box means a Call Box owned by or supplied to a person other than the Licensee or another public telecommunications operator at which Call Box Services are or may be provided; Private Leased Circuit means a communication facility which is: (iii) (iv) (v) provided by means of one or more public telecommunication systems; for the conveyance of Messages between points, all of which are points of connection between telecommunication systems referred to in subparagraph above and other telecommunication systems; made available to a particular person or particular persons; such that all of the Messages transmitted at any of the points mentioned in sub-paragraph above are received at every other such point; and such that the points mentioned in sub-paragraph above are fixed by the way in which the facility is installed and cannot otherwise be selected by persons or telecommunication apparatus sending Messages by means of that facility; 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 United Kingdom (excluding the Hull Area) other than: charges for a Private Leased Circuit used to provide analogue presented broadcast sound and vision services; 23

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