Oftel proposes to lift all remaining wholesale regulation from the mobile market related to access and outgoing calls because of the increasing level of competition in the market.

In the leased lines market, Oftel proposes to continue with most current regulation to support competition, and in particular the requirement on BT to provide partial private circuits to other operators for leased line services.

Under the implementation process for the new Directives, Oftel must review the telecoms market before deciding the appropriate level of regulation to protect and support competition.

David Edmonds, Director General of Telecommunications said today:

"This is the next stage in the huge undertaking by Oftel to review the telecoms markets and put in place regulation needed to protect and promote competition.

"These detailed and thorough market reviews enable Oftel to understand how these markets are developing, and decide whether more or less regulation is needed to deliver the best deal for the consumer.

"The outgoing mobile market is becoming increasingly competitive and Oftel proposes to remove all remaining wholesale regulation in this market.

"However, this market is separate from the wholesale market for calls to mobile phones, where the review is not yet complete.

"The leased lines market is important for the provision of high speed services for businesses, and BT continues to have a major share of this market.

"Oftel's introduction of cost-based partial private circuits, supported by strong service level agreements, is increasing competition in the leased lines market.

"Oftel therefore proposes to continue with this successful regulation so that other operators can use BT's network to provide leased line services to businesses.

"But we have taken the opportunity to refine aspects of the current framework and deregulate the market for the highest bandwidth circuits, where competition is flourishing."

Notes to Editors

1. Mobile access and call origination market review and leased lines market review publications are available from Oftel's website at www.oftel.gov.uk/publications/eu_directives/2003/eu_mob_access/and www.oftel.gov.uk/publications/eu_directives/2003/eu_leased_lines/. Hard copies are available to the media from Oftel's Press Office, telephone 020 7634 8991, and to the public from Oftel's Research and Information Unit, telephone 020 7634 8761.

2. On 17 March Oftel published the first five market review documents (see press release 11/03). Further market reviews documents will be published over the coming weeks.