In the presence of the Director General, on behalf of ACSP, I would like to welcome the publication by Oftel of the mobile market review consultation with its assertion that effective competition in the mobile market does not yet exist.

This is an extensive document following a review process that has clearly been very comprehensive. I am pleased that aspects of new, particularly non-voice, services have been considered as potentially separate markets and that issues of market power have been covered in such depth. I look forward to contributing to the ACSP response.

With this work in mind, ACSP believes there is the need for a continuing regulatory regime in telecommunications. For this regime to be effective the regulator, whether it is Oftel or in the future Ofcom, must be provided with suitable and adequate resources.

Encouraged by Peter Walker of Oftel to input to the work of the NICC the Service Providers Interest Group first met in the summer of 1996. SPIG was established as an interest group of the NICC under the chairmanship of Jeff Ace of IBM specifically to bring forward the technical needs of service providers in the interoperability arena. Members quickly concluded that unless regulatory and commercial conditions were right they would never have the luxury of discussing technical interface issues. It immediately became clear to members that their interests were much wider than would have been expected of a NICC IG.

Original members included IBM, Reuters and other large users of telecommunications, Internet Service Providers, Mobile Service Providers, small fixed operators, associations (ISPA, ICSTIS, UK Paging, NOA, FCS/CSPG) and consultants. The common grounds were difficulties with BT, mobile network operators and Oftel. Which at the time focused on infrastructure rather than services competition. SPIG quickly took on a role of commercial and regulatory lobbying.

Major contributions were however made to NICC and to ETSI by technical working groups set up by SPIG for the purpose. The work included two phases of drafting a functional specification for a service provider interface to public telephony networks which was published in December 1998. BT contributed significantly to this work. SPIG has, and will continue to do so as ACSP, sent a representative to NICC meetings.

Phil Sayer of Reuters took over the chair of SPIG when Jeff Ace moved to Paris in May 1998. Mark Cook of Uunet took over the chair in October 2000 when Phil Sayer’s duties changed.

In the five years of its existence SPIG has been an active contributor to DTI and Oftel consultations providing authoritative input and to the Oftel Service Provider Forum where it has presented the views of its members on a wide variety of issues. Over the period members’ intentions for the group moved further from its initially technical foundation. SPIG can quote some real successes from the perspective of a loose association:

• lower leased lines costs;
• recognition of the need for LLU after years of lobbying;
• SPIG started the negotiations with BT on Calls and Access which continue in CAIG;
• setting up SP forum by Oftel as an interchange between industry and regulator;
• SPIG is contacted directly by the EC, Oftel, DTI and MPs.

Membership grouping has also changed over the period. There are far fewer independent mobile service providers now operating in the UK, service providers with an interest in the BT Calls and Access service are a proportion of the ACSP membership. There are now more members who plan to supply more than one service, for example, fixed telephony, mobile and Internet. Membership breaks down as 42% Internet, 35% fixed services and 23% mobile. The Internet has become important in all our lives and SPIG members involved in providing Internet services have recently been focused on the access methods to be used by their customers. We greatly welcome Oftel’s continuing work in this area and in particular the Director General’s recent statements.

SPIG’s principles have not changed over this five year period, they remain:

• that customers buy services - competition in services should be the priority for regulatory action;
• in favour of non-discrimination between users - all service providers, irrespective of ownership, should be offered the same terms;
• for real cost based pricing for network services - needed for calls and access, IA for mobile, now to provide effective competition in the market; and
• in favour of sector specific regulation to control market power.

SPIG has special relationships with CAIG (Calls and Access Interest Group) and MISP (Mobile Independent Service Providers who are FCS members) both of whom are working on the detail of their sectors and, while independent, have similar principles.

In the main, current members now recognise consumers rather than businesses as their customers and that they are operating in a retail market. In the future more time will be devoted to talking with consumer representative bodies and to discussions regarding consumer compliant handling procedures within Oftel.

Members consider that the term SPIG and what in general service providers do are not well understood by consumers. Members are intent on raising the profile of their representative body and have decided to re-launch the group as the Association of Communication Services Providers today. Members have chosen this new name because it better expresses their combined interests. The name and aims of the new group will be widely promoted.

The ACSP aims to –

• secure a fair, open and competitive environment for the delivery of services within the UK communications market, which is supported by an effective regulatory regime;
• work with Government and other stakeholders; and
• promote the value of competition in services, which benefits consumers and contributes towards the establishment of a dynamic communications market in the UK.

In seeking to achieve its aims, the key objectives for ACSP are to:

• ensure all communication services providers are able to access elemental network services at a fair and reasonable cost;
• work with consumers and their representatives to enhance quality of service and develop codes of practice; and
• provide a forum for the exchange of non-competitive information.

Membership of the ACSP is open to all organisations that provide communication services over telecommunication systems. ACSP will also admit associates who have an interest in the industry and which to contribute to the association’s work.

With its aims and objectives I commend the Association of Communication Services Providers to you.