Statutory Instrument 1999 No. 2453

The Telecommunications (Licence Modification) (British Telecommunications plc) Regulations 1999

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© Crown Copyright 1999

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"the 1984 Act" means the Telecommunications Act 1984[3];

"BT" means British Telecommunications plc;

"the BT licence" means the licence granted by the Secretary of State under section 7 of the 1984 Act to British Telecommunications on 22nd June 1984 to run the telecommunication systems referred to in Annex A thereof, in relation to which BT became the licensee as the nominated successor company on the transfer date[4];

"the former licence" means the BT licence in the form it was in immediately before the coming into force of these Regulations;

"the modified licence" means the BT licence as amended by these Regulations; and

"the standard Schedules" means the Schedules to the Telecommunications (Licence Modification) (Standard Schedules) Regulations 1999[5].

Modification of the BT licence
     3. The BT licence shall be amended as follows:

(a) for the Table of Contents there shall be substituted the Table of Contents set out in Schedule 1 hereto;

(b) after paragraph 3 there shall be inserted the following paragraphs - 

" Interpretation
     4. The Interpretation Act 1978 shall apply for the purpose of interpreting this Licence as if it were an Act of Parliament. In this Licence, except as hereinafter 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 purpose of interpreting this Licence, headings and titles shall be disregarded.

     5. In this Licence, "Licence" means a licence granted or having effect as if granted under section 7 of the Act.

     6. For the purposes of this Licence the "Applicable Systems" means any or all of the telecommunication systems run by the Licensee under this Licence unless the context otherwise requires.

     7. Where this Licence provides for any power of the Secretary of State or the Director to give any direction, notice or consent or for the Director to make any specification, designation or determination, it implies, unless a contrary intention appears, a power exercisable in the same manner and subject to the same conditions or limitations, to revoke, amend or give or make again any such direction, notice, consent, specification, designation or determination; and any reference however expressed to the Director making any determination or giving any direction or consent about any matter shall be construed as making such determination or giving such direction or consent after consultation with the Licensee and where appropriate with any other person who may have a relevant interest in the matter to which the determination, direction or consent relates.

     8. Any notification which is required to be given under this Licence by the Secretary of State or the Director shall be satisfied by serving the document by post on the Licensee at the Licensee's registered office.";

(c) for Schedule 1 there shall be substituted Schedule 1 of the standard Schedules, subject to the amendments set out in Schedule 2 hereto;

(d) for Schedule 2 there shall be substituted Schedule 2 of the standard Schedules;

(e) for Schedule 3 there shall be substituted Schedule 3 of the standard Schedules, subject to the following amendment - 

     in paragraph 3, in paragraph (ii) of sub-paragraph (b) the words - 


     " if it provides any Conditional Access Services to another person by means of telecommunication systems run under another licence but which could also come within the description of the Applicable Systems authorised to be run by this Licence"



     shall be deleted;

(f) for Schedule 4 there shall be substituted Schedule 4 of the standard Schedules; and

(g) for Annex A there shall be substituted Annex A as set out in Schedule 3 hereto.

Transitional provisions
     4.  - (1) So far as anything done or treated as done under or for the purposes of any provision of the former licence could have been done under or for the purposes of the corresponding provision of the modified licence, it shall have effect as if done under or for the purposes of the corresponding provision; and any direction, notice, consent, specification, designation or determination or other decision made or having effect under any provision of the former licence shall be treated for all purposes as made and having effect under the corresponding provision.

    (2) Where any period of time specified in a provision of the former licence is current immediately before the coming into force of these Regulations, the corresponding provision of the modified licence shall have effect as if that period of time - 

(a) ran from the date or event from which it was running immediately before the coming into force of these Regulations, and

(b) expired whenever it would have expired if the former licence had not been modified;

and any rights, liabilities, obligations or requirements dependent on the beginning, duration or end of such a period as mentioned above shall be under the modified licence as they were or would have been under the former licence.


Patricia Hewitt
Minister of State for Small Business and E. Commerce, Department of Trade and Industry

3rd September 1999

" ADDITIONAL DEFINITIONS RELATING TO SCHEDULE 1 OF THIS LICENCE



"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[6], as amended from time to time in accordance with that Condition;
"Apparatus Supply Business" means the following activities of the Licensee or of any wholly owned Subsidiary taken together:
(i) the supply of any telecommunication apparatus neither comprised nor to be comprised in any of the Applicable Systems; and

(ii) the installation, maintenance, adjustment, repair, alteration, moving, removal or replacement of any telecommunication apparatus where those activities are not part of the Systems Business nor part of the Supplemental Services Business;



"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[7], as amended from time to time in accordance with that Condition;
"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 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;
"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;
"Charges" for the purpose 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 paragraph 69.6(a), 69.6(b) or 69.6(c), 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 Standard Services Charge;
"Controlling Percentage" has the meaning given to it in Condition 69.13;
"Conveyance Outpayment Cost" means any payment made to any person by the Licensee in respect of the conveyance of a call which is not a Delivery Outpayment Cost;
"Conveyance Standard Service" means a Standard Service comprising the conveyance of switched Messages;
"Delivery Outpayment Cost" means either:
(i) 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

(ii) 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

(iii) 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;
"Discounted General Prices" means prices which are charged as part of a Package (not including Reference Prices) and which, if they were not so charged, would be General Prices;
"Exchange Line Price" means a General Price imposed by the Licensee for:
(i) the use and Ordinary Maintenance; and

(ii) the connection or taking over;



of an Exchange Line;



"Fault Repair Service" means a service consisting in such repair, maintenance, adjustment or replacement of any of the Applicable Systems or such repair or adjustment of any Relevant System as is necessary to restore and maintain a sufficient service;
"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 whose Licence does not authorise the provision of a Land Mobile Radio Service;
"General Prices" means (being the Licensee's Standard Prices or Reference Prices nominated under Condition 70.6):
(i)

(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;

(C) charges for the conveyance by means of such Exchange Lines of voice telephony Messages from a place within the Licensed Area to any other place (whether or not within the Licensed Area); and

(D) charges for the facility of transferring, with assistance from a human operator, charges for the conveyance of the voice telephony Messages referred to in sub-paragraph (i)(C) above, 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 from 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 7, and transferred charges in respect of calls from Call Boxes;

(II) charges for any Maritime Services;



and each discrete charge of any such description shall be treated as a separate General Price;

(ii) for the purposes of Condition 71, has the meaning given to it in sub-paragraph (i) 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:

(AA) 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 relevant service (or group of services) was charged for separately or a fee was not payable, would be General Prices; and

(BB) charges for services which, if offered to residential customers, would be General Prices;



"Industrial or Intellectual Property" includes, without prejudice to its generality, patents, designs, know-how, and copyright;
"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;
"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 a territory other than the United Kingdom;
"International Private Circuit Prices" means all periodic and other charges imposed by the Licensee by way of any Standard Price for the connection, use and Ordinary Maintenance of that part of an International Private Circuit provided by the Licensee by means of the Applicable Systems, other than:
(i) an International Private Circuit used to provide broadcast quality sound and vision services;

(ii) an Offshore Private Circuit;

(iii) a VSAT Service; or

(iv) a circuit used in the provision of International Videoconferencing services by the Licensee;



"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:
(i) charges for a Circuit used in the provision of broadcast quality sound and vision services, VSAT Services or International Videoconferencing Services;

(ii) 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 Licensed 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 Licensed Area or between a place in the Licensed Area and a place in the United Kingdom;
"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;
"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 services of a kind provided under Condition 66;
"Licensed Area" means the United Kingdom other than the area in which Kingston Communications (Hull) PLC is licensed to run telecommunication systems under a licence coming into force on the date on which this Licence comes into force;
"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 comes into force[8], as amended from 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 Licensee, in addition to the descriptions in the Accounting Documents, to prepare the Financial Statements, the Restated Financial Statements and the Interim Financial Statements;
"Main Prices" means:
(i) all periodic charges for the ordinary use and Ordinary Maintenance of an Exchange Line;

(ii) all charges based on duration for the conveyance by means of such Exchange Lines of voice telephony Messages; and

(iii) all charges for the provision of a Directory Information Service;



"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;
"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 Cost" means:
(i) 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


(ii) 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;



"Non-conveyance Standard Service" means a Standard Service which is not a Conveyance Standard Service;
"Off-shore Private Leased Circuit" means a communication system which is:
(i) provided by means of both a telecommunication system comprised in the Applicable Systems and a telecommunication system which is on any installation which is maintained in waters to which the Mineral Workings (Offshore Installations) Act 1971 applies;

(ii) 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;

(iii) which is such that all Messages transmitted at any of the points mentioned in sub-paragraph (ii) above are received at every other such point; and

(iv) which is such that the points mentioned in sub-paragraph (ii) 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" for the purposes of Condition 65 means:
(A) 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

(B) 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:
(i) 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;

(ii) 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 (i)(A) of the definition of General Prices which vary or may vary:
(i) according to whether the Licensee does any other thing so mentioned for the customer in question; or

(ii) 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 on it by Condition 41;



"Percentage Change":
(i) for the purposes of Condition 69, has the meaning given to it in paragraph 69.15;

(ii) for the purposes of Condition 70, has the meaning given to it in paragraph 70.11;



"Percentage Discount Yield" means the discount yield for Relevant Year expressed as a percentage of the Control Revenue in the Relevant Financial Year;
"Period" means a calendar month or such longer period as the Director may determine;
"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 Licensed Area other than:
(i) charges for a Private Leased Circuit used to provide analogue presented broadcast sounds and vision services;

(ii) charges for a Private Leased Circuit used to provide closed circuit television services;

(iii) charges for a fixed link provided to any person authorised by a Licence to provide Land Mobile Radio Services where such link is provided solely for the purpose of facilitating the provision by that person of such Services; and

(iv) charges payable by Operators under Condition 69;



and each discrete charge of any such description shall be treated as a separate Private Leased Circuit Price;



"Quality" means the effect of the performance of the Value Added Service in a manner which, given the purpose for which it was provided, determines the degree of satisfaction of a user of that service, and, for the avoidance of doubt, does not include the charge for that service;
"Quality Schedule" means the schedule specifying:
(i) quality measures and Target Performance;

(ii) certain Standard Services;

(iii) certain Private Leased Circuits;

(iv) certain Operators or groups of Operators;



in each case as agreed between the Director and the Licensee on or before the date on which Condition 65 comes into force[9] as amended from time to time in accordance with that Condition;



"Reference Price" has the meaning given to it in Condition 70.6;
"RPI" means:
(i) for the purposes of Condition 69, the amount of change in the Retail Prices Index in relation to any Relevant Year as specified in Condition 69.13;

(ii) for the purposes of Conditions 70 and 71, the amount of the change in the Retail Prices Index in relation to any Relevant Year as specified in paragraph 70.9;



"Regulatory Accounting Principles" means the principles agreed in writing between the Director and the Licensee on or before the date on which Condition 78 comes into force(a), as amended from time to time in accordance with that Condition;
"Relevant Financial Year" means in relation to a Relevant Year the financial year of the Licensee ending last before the beginning of the Relevant Year, being a financial year in respect of which annual accounts have been prepared and audited in accordance with the requirements of the Companies Act 1985;
"Relevant Year" means:
(i) except for the purposes of Condition 69, any of the four periods of 12 months beginning on 1st August starting with 1st August 1997 and ending on 31st July 2001;

(ii) for the purposes of Condition 69 only, any of the four periods of 12 months beginning on 1st October starting with 1st October 1997 and ending on 30th September 2001;



"Residual Business" means the business or businesses of which the revenues, costs and assets are not comprised in any Business as agreed between the Director and the Licensee in accordance with Condition 78, as amended from time to time in accordance with that Condition;
"Restated Financial Statement" means a restatement prepared following, and taking account of, a recalculation and redetermination of the charge (or the means of calculating the charge) for or in respect of each Standard Service pursuant to Condition 69, of each Financial Statement for each financial year ending with the year ending 31st March 1997 and of each Interim Financial Statement for the financial year ending 31st March 1998;
"Retail Cost" means the retail cost that is in the opinion of the Director appropriately attributed by the Licensee to the provision of a Retail Service;
"Retail Prices Index" means the index of retail prices compiled by Her Majesty's Government in respect of all items;
"Retail Service" means a service provided by the Licensee to any person for which a General Price is charged;
"Routing Factor" means the average usage by all Operators and the Licensee of each Network Component or Network Part in a particular Standard Service or Network Service;
"Score" means the Percentage Discount Yield for the Relevant Year ended 31st July 1996 (calculated under Condition 74 having effect on that date and subject to any adjustment under paragraphs 74.3, 74.4 and 74.5, but taking into account only residential customers and revenue from such customers) ;
"Special Offer" means a General Price offered by the Licensee for a limited period of time not exceeding three months specified by the Licensee at the time the General Price is first offered;
"Specially Tariffed Voice Services" means calls to access premium rate services, number translation services (including local call services, freephone services, and national call services) and other services where the charge to a customer is determined at least in part by an agreement between the Licensee and the person called;
"Standard Price" means:
(i) for the purposes of the definition of "General Prices", any price charged or offered by the Licensee otherwise than in relation to a Package;

(ii) for the purposes of the definitions of "International Simple Resale Bearer Circuit Prices" and "Private Leased Circuit Prices", any price charged or offered by the Licensee:

(A) before the application to it of any discount; and

(B) in relation to a contract for a fixed term, before the application to it of any discount or premium;



"Target Performance" means the minimum level of performance which the Licensee intends to provide;
"Threshold" has the meaning given to it in Condition 70;
"Transfer Charging System" means the system which enables a Business to use a service or good from another Business and to account for it as though it had purchased that service or good, as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 comes into force[10], as amended from time to time in accordance with that Condition; and
"VSAT Service" means a telecommunication service consisting in the conveyance by means including the Applicable Systems, earth orbiting apparatus and a terrestrial telecommunication system outside the United Kingdom between a point in the Licensed Area and more than one point outside the United Kingdom of Messages whether or not on any particular occasion the conveyance includes a transmission between points in the Licensed Area or between points in the Licensed Area and points in the United Kingdom.";

     2. After paragraph 6 of Part 1 there shall be inserted the following paragraphs - 

     " 7. For the avoidance of doubt it is hereby declared that for the purposes of this Schedule references to the supply of telecommunication apparatus do not include the making available of apparatus comprised or to be comprised in any of the Applicable Systems.

     8. Nothing which the Licensee may do, or omit to do, after the date on which any provision of these Conditions enters into force shall be held to constitute a failure to comply with an obligation imposed on the Licensee by or under these Conditions to the extent that the Licensee is obliged to do or to omit to do (as the case may be) that thing by the terms of any contract subsisting immediately before that date; but any contract which takes effect as from the appointed day by virtue of paragraph 12 of Schedule 5 to the Act shall not be treated for the purposes of these Conditions as a contract subsisting immediately before the date on which these Conditions enter into force.

     9. Without prejudice to the generality of paragraph 8 above, nothing which the Licensee may do, or omit to do after 1st May 1987 shall be held to constitute a failure to comply with an obligation imposed on the Licensee by virtue of any of the amendments made to these Conditions on that date to the extent that the Licensee is obliged to do or to omit to do (as the case may be) that thing by the terms of any contract subsisting immediately before 14th November 1986.";

     3. In condition 38, for paragraph 1 there shall be substituted the following paragraph - 

     " 38.1 All the Conditions in Part A (the "Specified Conditions") shall apply to the Licensee, except to the extent that the Director determines otherwise following the procedure set out in paragraph 6 of Part 1of Schedule 1 to this Licence.";

     4. In Conditions 40, 41 and 42 respectively the words " To the extent that this is a Specified Condition" shall be deleted;

     5. In condition 43

(i) for paragraph 1 there shall be substituted the following paragraph - 

     " 43.1 Condition 43 shall apply to the Licensee, except to the extent that the Director determines otherwise following the procedure set out in paragraph 6 of Part 1 of Schedule 1 to this Licence."; and

(ii) for subparagraph (a) of paragraph 2 there shall be substituted the following subparagraph - 

     " 43.2

    (a) Subject to sub-paragraph (b) below, the Licensee shall provide telecommunication services consisting in the conveyance of Messages other than those specified in Part A, to every person who reasonably requests such services at any place throughout or in any part of the area as specified by the Director within which the Licensee is authorised to run telecommunication systems under this Licence and which contains not less than 100,000 Served Premises.";

     6. In condition 46

(i) in sub-paragraph (b) of paragraph 2 there shall be added at the end the following words - 

" Sub-paragraph (a) shall not apply to the Licensee as long as the Licensee is subject to Condition 69.3."; and

(ii) in paragraph 3 there shall be added at the end the following words - 

" This paragraph shall not apply to the Licensee, in respect of offers made pursuant to Condition 45.1, as long as the Licensee is subject to Condition 69.2(a).";

     7. In condition 47

(i) in paragraph 1 there shall be added at the end the following words - 

" This paragraph shall not apply to the Licensee as long as the Licensee is subject to Condition 69.1.";

(ii) in paragraph 2 there shall be added at the end the following words - 

" This paragraph shall not apply to the Licensee as long as the Licensee is subject to Condition 69.2(b), 69.2(c) and 69.2(d).";

(iii) in paragraph 4 there shall be inserted at the beginning the following words - 

" Subject to Condition 69,";

(iv) in paragraphs 5 and 6 respectively there shall be added at the end the following words - 

" This paragraph shall not apply to the Licensee as long as the Licensee is subject to Condition 69.4.";

(v) in paragraph 8, after the words "information specified in paragraph 47.5" there shall be inserted the words "or Condition 69.4, as the case may be,"; and

(vi) in sub-paragraph (a) of paragraph 8, after the words "in accordance with paragraph 47.5(b)" there shall be inserted the words "or Condition 69.4(iv), as the case may be,";

     8. In condition 50, at the beginning there shall be inserted the words "This Condition shall not apply to the extent that Condition 78 applies to the Licensee." ;

     9. In paragraph 1 of condition 57, for the words "Where a determination" to "in the manner set out below" inclusive there shall be substituted the following words - 

" For the purposes of Parts A and B of this Licence and where a determination has been made which applies to the Licensee for the purposes of Parts C, D, E or F of the Licence, the Licensee shall not unduly discriminate or show undue preference in the manner set out below:";

     10. In condition 58

(i) for paragraph 1 there shall be substituted the following paragraph - 

     " 58.1 For the purposes of Parts A and B of this Licence and where a determination has been made which applies to the Licensee for the purposes of Part F of this Licence, the Licensee shall, except in so far as the Director may otherwise consent in writing, publish prices and act in the manner set out below."; and

(ii) in paragraph 2, for the words "Within 28 days" to "on which it offers to" inclusive there shall be substituted the following words - 

" For the purposes of Parts A and B of this Licence and, in the case of Part F of this Licence within 28 days after the date the Director has made a determination which applies to the Licensee for the purposes of Part F above, the Licensee shall send to the Director a notice specifying, or specifying the method that is to be adopted, for determining the charges, terms and conditions on which it offers to:";

     11. In Condition 62, there shall be inserted at the beginning the words "This Condition shall not apply to the extent that Condition 78 applies to the Licensee.";

     12. After condition 64 there shall be inserted the following - 

" PART J ADDITIONAL CONDITIONS APPLICABLE TO BRITISH TELECOMMUNICATIONS PLC
Condition 65

QUALITY OF SERVICE - QUALITY SCHEDULE
     65.1 The Licensee shall publish the results of the measurements of actual performance against the Target Performance specified in the Quality Schedule which it has achieved in providing the Standard Services and Private Leased Circuits specified in the Quality Schedule to the Operators specified in that Schedule.

     65.2 For the purposes of paragraph 65.1:


(a) the Licensee shall publish the results of those measurements at regular intervals, being not less than once in each financial year of the Licensee, the first publication to take place in the financial year of the Licensee ending 31st March 1996; and

(b) publication shall be effected by sending to the Director a document setting out the results referred to in paragraph 65.1 (the "Quality of Service Report").



     65.3 Following publication pursuant to paragraph 65.1:



(a) subject to sub-paragraph 65.3(c), the Licensee shall send a copy of the most recent Quality of Service Report to any person who may request it on payment of a reasonable charge for it, within seven working days after receiving payment of that charge provided that such person agrees in writing with the Licensee to use the Quality of Service Report and its contents for the purpose only of noting the extent to which the Licensee has achieved its Target Performance;

(b) except to the extent the Director may consent to an alternative location or to an alternative method of publication, the Licensee shall make available and continue to make available in a publicly accessible part of every Major Office of the Licensee in such manner and in such place that it is readily available for inspection free of charge by members of the public during such hours as the Secretary of State may by order prescribe under section 19(4) of the Act that the register of Licences and final and provisional orders is to be open for public inspection a notice of the address and telephone number of the person to whom any request for a copy of the most recent Quality of Service Report may be made; and

(c) the Licensee shall:


(i) be entitled to exclude from any Quality of Service Report which it is obliged to send to any person who may request one pursuant to sub-paragraph (a) any matter to the exclusion of which the Director shall have consented following representations to him on the matter by the Licensee on the basis that if the matter were made available in accordance with sub-paragraph (a) it would or might, in the opinion of the Director, seriously and prejudicially affect the interests of the Licensee; and

(ii) shall exclude from that Quality of Service Report any matter which the Director directs should be excluded.



     65.4 Notwithstanding paragraph 8 of this Licence, the Licensee shall offer to include, as a minimum, in each agreement between the Licensee and an Operator for the provision of any Standard Service or any Private Leased Circuit, or both, which is or are included in the Quality Schedule whether subsisting before the date on which this Condition comes into force or otherwise:



(a) a description of the Target Performance specified from time to time in the Quality Schedule in relation to each such Standard Service and Private Leased Circuit; and

(b) an obligation on the Licensee to that Operator to use reasonable endeavours to achieve that Target Performance in relation to each such Standard Service or Private Leased Circuit provided to that Operator pursuant to the relevant agreement;



provided that such offer shall not be conditional on the acceptance by that Operator of the inclusion in that agreement of any other terms and conditions whether relating to that Target Performance or otherwise, except for terms or conditions which are necessarily incidental to the attaining of the Target Performance.

     65.5 Subject to paragraph 65.6, the Quality Schedule may be amended as the Director and the Licensee agree from time to time. In addition, the Licensee shall ensure that the Quality Schedule is kept under review and shall prepare and submit to the Director any amendments which it proposes from time to time to make to the Schedule to take account of technological progress or other relevant considerations provided that the Licensee shall not be obliged to review the Schedule more than once in each financial year, the first such review to take place in the financial year ending 31st March 1996. The Director shall then, if he considers it appropriate to do so, consult with Interested Parties as to the proposed amendments and give them a reasonable opportunity to make representations. If the Director, following any period of consultation, consents to the Licensee's proposed amendments the Licensee shall adopt them, but if the Director does not consent to the proposed amendments, the Licensee may, subject to its obligations contained in this paragraph, withdraw them.

     65.6 Where the Director has reasonable grounds to believe that the Licensee:



(a) has, within the previous three years (excluding any period falling before the date on which this Condition comes into force), shown undue preference to, or exercised undue discrimination against, any Operator in respect of the Quality of a Standard Service or Private Leased Circuit or both, contrary to the provisions of Condition 57.1(a)(ii) or 57.1(a)(iv), and has ceased to do so but is likely to repeat that undue preference or undue discrimination at any time in the future; or

(b) is showing undue preference or undue discrimination as described in sub-paragraph (a),



or both, and has notified the Licensee of those reasonable grounds, the Licensee shall, without prejudice to Condition 33 extend to the Director, his representatives and members of his staff such prompt co-operation as the Director may reasonably request in order to investigate the matter and, in particular, on request by the Director shall:



(c) furnish to the Director in accordance with his reasonable requirements any information, documents, accounts, estimates, returns, reports or other relevant information (including, without limitation, any facility enabling him to read data not held in readable form);

(d) on reasonable notice by him allow at all reasonable times the Director, his representatives and any member of his staff on production of his special authority, access to any relevant premises of the Licensee to investigate, assess, examine, review or verify any of its relevant records, systems or processes; and

(e) for the purpose of sub-paragraph (d), allow the Director, his representatives and any member of his staff to be accompanied by any person whom the Director may specify, and to whom the Licensee has raised no reasonable objection, whose assistance he might reasonably require provided that the Director has given the Licensee notice (save in exceptional circumstances) of at least 5 working days of the identity of that person.



     65.7 If, as a result of any investigation, assessment, examination or review referred to in paragraph 65.6, the Director is satisfied that the Licensee has done or is doing any of the things referred to in (a) and (b) of that paragraph or he has insufficient information to conclude whether or not the Licensee has done or is doing any of the things referred to in (a) and (b) of that paragraph, he may direct with effect from the date specified in the direction (not being a date earlier than the date of the direction), without prejudice to his other powers under this Licence, that the Quality Schedule shall be amended, provided that any direction given pursuant to this paragraph shall relate to the results of the relevant investigation, assessment, examination or review referred to in paragraph 65.6 in respect of which the direction is given and shall not require any change to the Quality Schedule beyond that reasonably required to remedy or prevent the undue preference or undue discrimination, or to remedy any defect in the procedures set out in the Quality Schedule, which shall have given rise to the lack of information revealed by the relevant investigation.





Condition 66
MARITIME EMERGENCY SERVICES
     66.1 The Licensee shall enter into an agreement with the Secretary of State for the provision of distress, urgency and safety services for shipping in accordance with the Radio Regulations of the International Telecommunication Union to the extent that the Secretary of State pays the costs of such services, except costs which the Director determines to be unjustifiable.



Condition 67
CONTROL OF "HARD-WIRED" AND OTHER TELEPHONE RENTALS
     67.1 The Licensee shall ensure that no periodic or other charge in respect of renting from the Licensee telephone apparatus to which paragraph 67.2 applies increases during any Relevant Year by more than the amount of the change in the Retail Prices Index in the period of 12 months ending on 30 June immediately before the beginning of that Year.

     67.2 This paragraph applies to telephones, other than telephones described in paragraph 67.3 below ("the excepted telephones"), which are not capable of being connected to the Licensee's Applicable Systems at a Network Termination Point by means of a fitted plug which complies with British Standard number 6312, for example, telephones which are only capable of being connected to those Systems by means of hard-wiring or round-pin plugs.

     67.3 The excepted telephones are:


(a) ISDN telephones;

(b) telephones which are connected to the Applicable Systems by means of a single line PBX; and

(c) telephones which are connected by a means other than a plug of the kind described in paragraph 67.2 above for the purposes of ensuring safety in a hazardous environment.







Condition 68
PROVISION OF RELAY SERVICE FOR TEXTPHONE USERS
     68.1 Subject to the financial limits set out below and from 1st August 1993, the Licensee shall provide the funds for the operation by a person or body ("the Relay Service Provider") agreed from time to time by the Director, the Licensee and any other person contributing to its funding of a telephone relay service for people, whether customers of the Licensee or of another operator, who need to use textphones because of their disabilities. Such service shall consist of the provision of facilities for the receipt and translation of voice messages into text and the conveyance of that text to such textphones and vice versa ("the Service").

     68.2 The Licensee shall discharge its obligations under this Condition by complying with guidelines issued from time to time and agreed by the Director, by the Licensee, by the Relay Service Provider and by any other person contributing to the funding of the Service. The Guidelines shall describe the Service and its provision by the Relay Service Provider. The Licensee shall enter into an arrangement with the Relay Service Provider on such terms and conditions as they both consider to be appropriate provided that any such arrangement is in accordance with the Guidelines. Failure of the Relay Service Provider to comply with the Guidelines shall not constitute a breach of the Guidelines by the Licensee.

     68.3 Users of the Service who are customers of the Licensee shall be charged for the conveyance of such voice messages and text to which the Service applies at no more than the Licensee's prevailing standard prices or such other charges as are, so far as reasonably practicable, equivalent to such prices as if that conveyance had been made directly between the caller's Network Termination Point and the Network Termination Point of the called person, except that the calling customer may be charged at the Licensee's standard local call prices for the element of the Service which consists of calls made to the Relay Service Provider in order to make a call to a called person irrespective of whether the call to the called person is successful.

     68.4 The Licensee's obligations under this Condition consist solely of an obligation to provide funds for the Service and do not extend to either the provision of or funds for any textphones or other apparatus on the customer's side of the Network Termination Point.

     68.5 The financial limits referred to in paragraph 68.1 above are that:


(a) the Licensee shall not be obliged to provide funds:


(i) in the year 1st August 1993 to 31st July 1994 in excess of £10 million;

(ii) in the year 1st August 1994 to 31st July 1995 in excess of £10 million or such larger sum (if any) as has been calculated by increasing £10 million by the percentage equal to the amount of any increase in the Retail Prices Index in the period of 12 months ending on 30th June 1994;

(iii) in the years 1st August 1995 to 31st July 1996 and 1st August 1996 to 31st July 1997 the sum applicable in the preceding year or such larger sum (if any) as has been calculated by increasing the sum applicable in the preceding year by the percentage equal to the amount of the change in the Retail Prices Index in the period of 12 months ending on 30th June immediately before the beginning of that year;



(b) notwithstanding sub-paragraph (a) above the Licensee shall not be obliged to provide funds in excess of a total of £14 million in the period commencing on 1st April 1993 and ending on 31st March 1996 indexed on the basis of the Retail Prices Index up to the latter date.



     68.6 The financial limits referred to in paragraph 68.1 above for years subsequent to the year 1st August 1996 to 31st July 1997 shall be reviewed by the Director in consultation with the Licensee at the same time as the Director reviews the price control provisions contained in Condition 70, the Director first having given written notice to the Licensee of his intention to review those financial limits. In the absence of contrary agreement between the Director and the Licensee, the financial limit applicable to each of those subsequent years shall be the successive amounts produced by increasing the sum of £10 million year by year (that is to say, cumulatively) on 30th June 1994 and each anniversary of that date by the percentage equal to the amount of the change in the Retail Prices Index during each previous yearly period.

     68.7 In this Condition:



"customer of the Licensee" means a person who rents an exchange line from the Licensee or a person using such an exchange line with the authority of a person who does so rent one;
"people who need to use textphones because of their disabilities" means people who are deaf, deaf-blind or speech-impaired;
"textphone" means a text terminal connected to the public switched telephone network.





Condition 69
CHARGE CONTROL FOR STANDARD SERVICES
     69.1 The Licensee shall secure, and shall be able to demonstrate to the satisfaction of the Director, that the charges offered, payable or proposed to be offered or payable by an Operator to the Licensee for each Standard Service provided pursuant to an agreement entered into pursuant to Condition 45 of this Licence are reasonably derived from the costs of providing the Service based on a forward looking incremental cost approach (except to the extent the Director considers it appropriate that for a transitional period, or in any particular case, the Licensee apply another cost standard) and related to the amounts applied to the relevant Network Components or Network Parts.

     69.2 The Licensee shall secure that:


(a) Standard Services are offered to Operators pursuant to agreements entered into pursuant to Condition 45 at the same charges and associated terms and conditions as set out in the Licensee's reference interconnection offer referred to in paragraph 69.3 below;

(b) where a Network Component or combination of Network Components is provided by the Licensee from one Business to another Business, the amount applied and incorporated in the Transfer Charge in respect of that provision is equal to the amount applied to that Network Component or combination of Network Components in the charge payable by an Operator to the Licensee for the equivalent Conveyance Standard Service;

(c) where a Network Part or combination of Network Parts is provided by the Licensee from one Business to another Business, the amount applied and incorporated in the Transfer Charge in respect of that provision is equal to the amount applied to that Network Part or combination of Network Parts in the charge payable by an Operator to the Licensee for the equivalent Non-conveyance Standard Service; and

(d) the same amount is applied to a Network Component or Network Part, as the case may be, whenever it is used for any Standard Service within, respectively any of the following categories:


Category A: Call Origination Conveyance Standard Services, single transit Conveyance Standard Services and Local-tandem Conveyance Standard Services;
Category B: Call Termination Conveyance Standard Services;
Category C: data management amendments to allow the routing of emergency calls to Land Mobile Radio Service Operators; interconnection extension circuits, in span interconnection, and customer sited interconnection (for connection, rental and rearrangement); product management, policy and planning.

     69.3 The Licensee's reference interconnection offer shall comprise a full list of Standard Services (the "Standard List") specifying:



(a) the charge offered to Operators requiring the Licensee to offer to enter into an agreement under Condition 45.1 for each Standard Service;

(b) the location in the Licensee's current standard interconnection agreement of the terms and conditions associated with the provision of each Standard Service; and

(c) the amount applied to:


(i) each Network Component used in providing each Conveyance Standard Service, with the relevant Routing Factors;

(ii) each Network Part used in providing each Non-conveyance Standard Service, with the relevant Routing Factors;

(iii) each Network Component used by the Licensee in a Network Service which is not used in providing the equivalent Conveyance Standard Services, namely, Call Origination Remote-local Conveyance, Call Termination Remote-local Conveyance and Local-tandem Transmission, with the relevant Routing Factors;

(iv) each Network Part used by the Licensee in a Network Service which is not used in providing the equivalent Non-conveyance Standard Services, with the relevant Routing Factors; and

(v) the Transfer Charge for each Network Component or combination of Network Components and Network Part or combination of Network Parts described above;



reconciled in each case to the charge payable by an Operator; provided that in the case of any Network Component or Network Part that is used in the provision of one or more Competitive Standard Services or New Standard Services, but is not also used in the provision of any other Standard Service that is not a Competitive Standard Service, the Licensee shall not be required to include in the Standard List the amount applied to that Network Component or Network Part.



     69.4 Subject to Conditions 47.7, 47.8 and 47.9, and except to the extent that enforcement action is taken by the Director:



(a) in the case of Competitive Standard Services and Prospectively Competitive Standard Services, not less than 28 days; and

(b) in the case of all other Standard Services, not less than 90 days;



before any change to a charge for a Standard Service, or any offer of a new Standard Service, is to come into effect, the Licensee shall send to the Director and all Operators with which it has entered into (or offered to enter into) an agreement under Condition 45.1 written notice of a proposal (a "Network Charge Change Notice") which identifies:



(i) the Standard Service, the current charge offered for, and location in the Licensee's current standard interconnection agreement of the terms and conditions associated with, the provision of the Service and the proposed charge; or the proposed charge and associated terms and conditions for the proposed New Standard Service;

(ii) the date on which or the period for which the proposed new charge will take effect, ("the effective date or period");

(iii) in the case of a Conveyance Standard Service, the current and proposed amount and the relevant Routing Factors applied to each Network Component comprised in that Conveyance Standard Service, and, in the case of a Non-conveyance Standard Service, the current and proposed amount and the relevant Routing Factors applied to each Network Part comprised in that Non-conveyance Standard Service, reconciled in each case with the current, proposed or proposed new Standard Service charge; and

(iv) in the case of a Standard Service to which paragraph 69.6(a), 69.6(b) or 69.6(c) applies, the information specified in sub-paragraph (iii) with respect to all other Services to which that paragraph applies; and



the Licensee shall not offer or apply any such proposed charge or New Standard Service to any Operator before the effective date.



     69.5 Subject to paragraph 69.4 above, and Conditions 47.7, 47.8 and 47.9, and without prejudice to any other provisions of this Condition or any other Condition of this Licence, from 1 October 1997, the Licensee shall offer to Operators requiring the Licensee to offer to enter into an agreement under Condition 45 the Charges (for the Standard Services subject to paragraph 69.6(a), 69.6(b) or 69.6(c)) and apply the amount to product management, policy and planning (PPP) specified on a list agreed between the Director and the Licensee on or before the date on which this Condition comes into force. For the purposes of paragraphs 69.6 to 69.21:



(a) the Charges for the Standard Services described in paragraphs 69.6(a) and 69.6(b) shall be deemed to be in each case the charge that the Licensee would offer to or charge an Operator for the Service in question if the amount applied to product management, policy and planning (PPP) were taken out of account; and

(b) the Charges for the Standard Services described in paragraph 69.6(c)(ii) shall be deemed to be in each case the charge that the Licensee would offer to or charge an Operator for the Service in question if no costs of the Service were allocated (or Transfer Charge made) to the Licensee.



     69.6 The Licensee shall take all reasonable steps to secure that, during any Relevant Year:



(a) the aggregate of Charges for Call Origination Conveyance Standard Services, single transit Conveyance Standard Services and Local-tandem Conveyance Standard Services;

(b) the aggregate of Charges for Call Termination Conveyance Standard Services; and

(c) the aggregate of Charges for:


(i) data management amendments to allow the routing of emergency calls to Land Mobile Radio Service Operators;

(ii) interconnection extension circuits, in span interconnection, and customer sited interconnection (for connection, rental and rearrangement); and

(iii) the amount applied to product management, policy and planning (PPP),



in each case remains such that:

(d) if the Controlling Percentage for that Year (established in accordance with paragraph 69.13) is zero or positive, any Percentage Change which has taken place in the aggregate of the relevant Charges (calculated in accordance with paragraphs 69.15 and 69.16) at the end of each Period does not constitute an increase by more than the Controlling Percentage; or

(e) if that Percentage is negative, there is no Percentage Change in the aggregate of the relevant Charges by way of increase and, before the end of that Year, there is such a Change by way of reduction of not less than that Percentage.



     69.7 Where, for the purpose of complying with paragraphs 69.6 to 69.21, the Licensee is required to reduce, or to limit any increase in, its Charges in any Relevant Year the Licensee shall take all reasonable steps to ensure that the combined effect on accrued revenue of the Licensee of all individual changes shall be no less than, in the case of a required reduction, that which would have been produced had all of those changes been made at exactly the same time and no later than on 1st April in that Year, or more than, in the case of a limited increase, that which would have been produced had all of those changes been made at exactly the same time and no earlier than on 1st April in that Year, and accordingly 1st April in that Year shall be the latest or, as the case may be, earliest weighted average date (within the meaning of paragraph 69.8) in that Year for the purposes of the making of reductions or increases in Charges. For the purpose of establishing whether or not the Licensee has complied with the obligation imposed on it by this paragraph, a calculation shall be carried out by employing the formula set out in paragraph 69.8.

     69.8 The formula mentioned in paragraph 69.7 is:



	Ri
WAD =		× Di <= 0
	RC

Where:
WAD = the weighted average date
R_i = the revenue change associated with the _ith price change made in the Relevant Year
RC = the total revenue change required in the Relevant Year to achieve compliance with paragraph 69.6
D_i = the date on which the ith price change takes effect expressed as a numeric entity on a scale ranging from 1st October =-182 to 30th September =-182, except in a leap year when 1st October =-183
n = number of price changes during the Relevant Year.

     69.9 To the extent that the Licensee has made, during any Relevant Year, any changes in Charges beyond those necessary for compliance with paragraph 69.6, those changes shall be relevant in applying paragraphs 69.7 and 69.8 to changes in the Relevant Year immediately following the Relevant Year in which those changes were made. In applying the formula referred to in paragraph 69.8 to such changes, subject to paragraph 69.10, that formula shall apply with the meaning of D_i amended as follows:

D_i = the date on which the _ith price change takes effect expressed as a numeric entity on a scale ranging from 1st October =-547 to 30th September =-183, except in a leap year when 1st October =-548, or in a year which precedes a leap year when 1st October =-548 and 30th September =-184.

     69.10 If, in relation to any change in Charges to which paragraph 69.9 applies, the Director is of the opinion that D_i should not equal the date on which that change takes effect as described in that paragraph, but should equal 1st October in the immediately following Relevant Year (expressed as a numeric entity where 1st October =-182, or in a leap year -183), he shall so direct the Licensee as soon as practicable after receipt by the Director of notification by the Licensee of the change. Where the Director has given such a direction the formula referred to in paragraph 69.8 shall apply with D_i =-182, or in a leap year -183 to any change in Charges to which that direction relates.

     69.11 Where, notwithstanding the obligation imposed on the Licensee by paragraph 69.6, there has taken place a change in Charges of a kind not permitted under paragraph 69.6(d) or 69.6(e), the Licensee shall make such adjustments in Charges (or leave them unchanged), for the period, whether in the year in question or the following year (and whether or not that year is a Relevant Year), as may be reasonably required to satisfy the Director that the matter has been remedied. Such adjustments shall not be relevant for the purpose of establishing compliance with paragraph 69.6 in a following Relevant Year.

     69.12 Where notwithstanding the obligation imposed on the Licensee by paragraph 69.7, the effect on accrued revenue of the changes in Charges fails, in the opinion of the Director, to meet the requirements of that paragraph, the Licensee shall make such adjustments in Charges (or leave them unchanged), for the period, whether in the year in question or the following year (and whether or not that year is a Relevant Year), as may be reasonably required to satisfy the Director that the matter has been remedied.

     69.13 Subject to paragraphs 69.14, 69.18 and 69.19, the Controlling Percentage in relation to any Relevant Year is the amount of the change in the Retail Prices Index in the period of 12 months ending on 30 June immediately before the beginning of that Year, expressed as a percentage (rounded to two decimal places) of that Index as at the beginning of that period ("RPI"), reduced by 8.

     69.14 If the difference between Charges at the beginning and at the end of any Relevant Year is such that the relevant Percentage Change is less (in the case of a permitted increase), or greater (in the case of a required reduction), than the change permitted, or required, in accordance with paragraph 69.6, then the Controlling Percentage for the following Relevant Year shall be established in accordance with paragraph 69.13, but increased by the amount of such deficiency or excess (as the case may be).

     69.15 Unless the Director directs with respect to any particular Charge that an alternative method or period other than the Relevant Financial Year be used in any Relevant Year, the amount of a Percentage Change which has taken place at any time during a Relevant Year shall be the amount of the change in each Charge which has taken place between the beginning of the Relevant Year and that time, multiplied by the amount of the revenue reasonably believed by the Licensee to have accrued during the Relevant Financial Year in respect of the Standard Service for which that Charge is charged, dividing in each case the amounts so produced by the Charge at the beginning of the Relevant Year for the Service to which each such amount relates, and taking the aggregate of the results, expressed as a percentage of all the revenue reasonably believed to have accrued for the relevant Standard Services during the Relevant Financial Year. The Director may direct that an alternative method or period be used where, in his opinion, the method (or period) set out in this paragraph would not accurately reflect the change in the Charge in question.

     69.16 Notwithstanding paragraph 69.15, if the Licensee has notified the Director in writing both of its intention to increase during a Period one or more Charges and of its intention within three months of the first such increase to reduce one or more Charges then, unless:



(a) the Director dissents within 28 days of such notification on the ground that undue advantage is being taken of this paragraph; or

(b) the reduction as so notified is not introduced;



for the purposes of paragraph 69.15, when determining the amount of a Percentage Change which has taken place at the end of the said Period and each subsequent Period, it shall be assumed that any such reduction had taken place during the first mentioned Period.

     69.17 Where the Licensee makes a material change (other than to a Charge) to any Service for which a Charge is charged or to the date on which its financial year ends or there is a material change in the basis of the Retail Prices Index, paragraphs 69.6 to 69.21 shall have effect subject to such reasonable adjustment to take account of the change as the Director may determine to be appropriate in the circumstances. For the purposes of this paragraph a material change to any Service includes the introduction of a new Service wholly or substantially in substitution for that existing Service.

     69.18 If the Licensee imposes a specific charge or an increased charge in relation to any goods or service which up to the time when the charge or increased charge is first imposed had been provided without charge or at a lower charge and the Director determines that some or all of the costs properly attributable to that service had previously been attributed to services to which paragraph 69.6 applies and that it would be proper in the circumstances for the newly introduced or increased charge to be controlled, that charge shall, unless the Director determines otherwise, be a Charge within the same relevant paragraph 69.6(a), 69.6(b) or 69.6(c) and this Condition shall have effect subject to the following provisions:



(a) the Licensee shall produce a forecast of the revenue expected to accrue as a result of the Charge or increased Charge for the goods or service over the period of twelve months from the date of introduction or increase of the Charge;

(b) the forecast shall be expressed as a percentage of the total amount of revenue reasonably believed by the Licensee to have accrued in respect of the relevant aggregate Charges during the Relevant Financial Year which relates to the Relevant Financial Year during which the Charge is introduced or increased;

(c) the Controlling Percentage for that Relevant Year shall be reduced by that percentage;

(d) an adjustment shall be made to the Controlling Percentage for that Relevant Year in respect of which it is first possible, from the Relevant Financial Year accounts, to take into account a comparison between the first twelve months' actual accrued revenue from the Charge and the forecast referred to in sub-paragraph (a), whereby the Controlling Percentage for that Relevant Year shall be increased or reduced (as the case may be) by the difference between the forecast amount referred to in sub-paragraph (a) and the amount of actual accrued revenue (the difference to be expressed as a percentage of the total amount of revenue accrued in respect of the relevant aggregate Charges during the Relevant Financial Year which relates to that Relevant Year);

(e) further adjustments shall be made to the Controlling Percentage referred to in sub-paragraph (d):


(i) where there is any difference between the forecast referred to in sub-paragraph (a) and the actual accrued revenue referred to in sub-paragraph (d), in order to compensate for the extent to which, by virtue of that difference, Charges in previous Relevant Years have been too high or too low (as the case may be), and

(ii) where there has been any variation in the Charge for the goods or service between the Relevant Year referred to in sub-paragraph (b) and the Relevant Year referred to in sub-paragraph (d) which the Director, after consultation with the Licensee, determines should be taken into account for the purposes of calculating the Controlling Percentage; and



(f) the adjustments referred to in sub-paragraphs (d) and (e) shall be made in the manner which the Director determines to be appropriate in the circumstances.



     69.19 If the Charge or increased Charge for any goods or service covered by paragraph 69.18 is altered following its introduction but before the adjustment referred to in paragraph 69.18(d) can be made then, in respect of that Charge, in calculating the amount of a Percentage Change under paragraph 69.15, the forecast set out in paragraph 69.18(a) shall be substituted for the amount referred to in paragraph 69.20(a).

     69.20 The Licensee shall no later than the time at which it notifies or should have notified the Director under paragraph 69.4 of any change to any Charge inform the Director in writing of:



(a) the amount of revenue which the Licensee reasonably believes to have accrued in the Relevant Financial Year for each Service in respect of which a Charge is charged; and

(b) the amount of each Charge at the beginning of the Relevant Year.



     69.21 The Licensee shall as soon as practicable after the end of each Period in which there has been a change in a Charge inform the Director in writing of:



(a) the changes made or new charges imposed in relation to any other Charge in the same group of aggregate Charges, whether under paragraph 69.6(a), 69.6(b) or 69.6(c), during that Period specifying its nature and amount and the Service for which the Charge is charged; and

(b) the amount of the Percentage Change in the relevant aggregate Charges which has taken place during the Period and whether by way of increase or reduction.



     69.22 The Licensee shall secure that each discrete charge for any Prospectively Competitive Standard Service, including charges disaggregated by time of day, distance or route, namely:



(a) Inter-tandem Conveyance Standard Services;

(b) Inter-tandem Transit Conveyance Standard Services;

(c) international direct dialled Conveyance Standard Services; and

(d) directory information Standard Services, namely, the non-conveyance element of the directory enquiry service and the international directory enquiry service, entries on to NIS/OSIS, use of the directory assistance database (DAS), supply of phonebooks and supply of customised phonebooks,



does not increase in the first Relevant Year from the Interim Charge (or, in the case of sub-paragraph (d), the amount applied to a non-conveyance element thereof) determined by the Director under this Condition in effect on 30th September 1997 for the year ending 31st March 1998 (to which the retail tariff gradient in effect on 1st October 1997 has been applied by more than RPI and during any following Relevant Year by more than RPI (taking out of account, where applicable, any payment by the Licensee to a person operating a telecommunication system outside the United Kingdom). For the purposes of compliance with this paragraph:



(e) the Licensee shall secure that any increase of a charge shall be proportionately no more than the proportion of RPI which is derived by multiplying RPI by a fraction, the numerator of which is the number of days which have elapsed from the beginning of the Relevant Year to the effective date of the charge change and the denominator of which is 365 (or, in a leap Year, 366), plus any proportion of RPI in previous Relevant Years which has not been taken up by charge increases; and

(f) the charges for the Services described in sub-paragraph (b) shall be deemed to be in each case the charge that the Licensee would offer to or charge an Operator for the Service in question if the amount applied to product management, policy and planning (PPP) were taken out of account.



     69.23 Except to the extent the Director otherwise consents (on the grounds that the quality and security of the Service would be endangered), the Licensee shall secure that each discrete charge for the non-conveyance element of a Public Emergency Call Service does not increase from the amount applied to that element of the Interim Charge for access to emergency operator assistance determined by the Director under this Condition in effect on 30th September 1997 for the year ending 31st March 1998 during any Relevant Year by more than RPI as specified in paragraph 69.22(e).

     69.24 Paragraphs 69.6 to 69.22 shall not apply to such extent as the Director may determine.

     69.25 This Condition shall be without prejudice to the powers of the Director elsewhere under this Licence to determine:



(a) Final Charges for the financial years ending on 31st March 1996, 31st March 1997 and 31st March 1998 (where Interim Charges were determined before 1st October 1997);

(b) Interim Charges for the financial year ending on 31st March 1998; and

(c) any requests for determination or waiver made before 1st October 1997 (which are not withdrawn);



and shall be without prejudice to any related obligations of the Licensee in Condition 78 in effect on 30th September 1997, except that:



(d) in the case of the determination of Final Charges for the year ending on 31st March 1998 the determination shall:


(i) be based on the audited information appearing by virtue of Conditions 69.8 and 69.10 in effect on 1st October 1997 in the Licensee's Interim Financial Statement for the relevant Businesses for the financial year ending on 31st March 1998; and

(ii) apply only to the period from 1st April 1997 to 30th September 1997;



(e) where a tariff gradient is applied to the charges for Standard Services in effect on 1st October 1997, that gradient shall be the Licensee's retail tariff gradient in effect on that date; and

(f) charges for Standard Services in effect on 1st October 1997 shall be subject to paragraphs 69.4 and 69.5 and Conditions 47.7, 47.8 and 47.9.







Condition 70
CONTROL OF GENERAL PRICES
     70.1 The Licensee shall take all reasonable steps to secure that, during any Relevant Year, the amount of General Prices remains such that:


(a) if the Controlling Percentage for that Year (determined in accordance with paragraph 70.9) is zero or positive, any Percentage Change which has taken place in the aggregate of all General Prices (determined in accordance with paragraphs 70.11 and 70.12) at the end of each Period does not constitute an increase by more than the Controlling Percentage; or

(b) if that Percentage is negative, there is no Percentage Change in General Prices by way of increase and, before the end of that Year, there is such a Change by way of reduction of not less than that Percentage.



     70.2 Where, for the purpose of complying with this Condition, the Licensee is required to reduce, or to limit any increase in, its General Prices in any Relevant Year the Licensee shall take all reasonable steps to ensure that the combined effect on accrued revenue of the Licensee of all individual changes in General Prices shall be no less than, in the case of a required reduction, that which would have been produced had all of those changes been made at exactly the same time and no later than on 1st February in that Year, or more than, in the case of a limited increase, that which would have been produced had all of those changes been made at exactly the same time and no earlier than on 1st February in that Year, and accordingly 1st February in that Year shall be the latest or, as the case may be, earliest weighted average date (within the meaning of paragraph 70.3) in that Year for the purposes of the making of reductions or increases in General Prices. For the purpose of establishing whether or not the Licensee has complied with the obligation imposed on it by this paragraph, a calculation shall be carried out by employing the formula set out in paragraph 70.3.

     70.3 The formula mentioned in paragraph 70.2 is - 



	Ri
WAD =		× Di <= 0
	RC

Where:
WAD = the weighted average date
R_i = the revenue change associated with the _ith price change made in the Relevant Year
RC = the total revenue change required in the Relevant Year to achieve compliance with paragraph 70.1
D_i = the date on which the ith price change takes effect expressed as a numeric entity on a scale ranging from 1st August =-184 to 31st July = 180, except in a leap year when 31st July = 181.

     70.4 To the extent that the Licensee has made, during any Relevant Year, any reductions in General Prices beyond those necessary for compliance with this Condition, or, as the case may be, any increases in such Prices less than those permitted, those changes shall be relevant in applying paragraphs 70.2 and 70.3 to price changes in the Relevant Year immediately following the Relevant Year in which those changes were made. In applying the formula referred to in paragraph 70.3 to such changes, subject to paragraph 70.5, that formula shall apply with the meaning of D_i amended as follows:

D_i = the date on which the _ith price change takes effect expressed as a numeric entity on a scale ranging from 1st August =-549 to 31st July =-185, except in a leap year when 1st August =-550.

     70.5 If, in relation to any change in General Prices to which paragraph 70.4 applies, the Director is of the opinion that D_i should not equal the date on which that price change takes effect as described in that paragraph, but should equal 1st August in the immediately following Relevant Year (expressed as a numeric entity where 1st August =-184), he shall so direct the Licensee as soon as practicable after receipt by the Director of notification by the Licensee of the price change and the Director shall include in his direction the reasons for his opinion. Where the Director has given such a direction the formula referred to in paragraph 70.3 shall apply with D_i =-184 to any change in General Prices to which that direction applies.

     70.6 Where the Licensee decides that a charge (or group of charges) for any of the things included within the definition of General Prices is to be offered only:



(a) in combination with another such charge (or group of charges) or with an additional periodic fee; and

(b) in two or more such combinations,



the Licensee shall nominate one charge (or group of charges) in such combinations (including the fee, if any) to be the General Price for the purposes of this Condition (the Reference Price). The Licensee shall offer the Reference Price for the conveyance of Messages to residential customers in combination with the Reference Price for the use and Ordinary Maintenance of residential Exchange Lines.

     70.7 Where, notwithstanding the obligation imposed on the Licensee by paragraph 70.1 (or paragraph 70.1 of Condition 70 having effect on 31st July 1997), there has taken place a change in General Prices (or General Prices as defined in that Condition 70) of a kind not permitted under paragraph 70.1(a) or 70.1(b) (or paragraph 70.1(a) or 70.1(b) of Condition 70 having effect on 31st July 1997), the Licensee shall make such adjustments in General Prices (or leave them unchanged), for such period, whether in the year in question or the following year (and whether or not that year is a Relevant Year), as may be reasonably required to satisfy the Director that the matter has been remedied. Such adjustments shall not be relevant for the purposes of establishing compliance with paragraph 70.1 in a following Relevant Year.

     70.8 Where, notwithstanding the obligation imposed on the Licensee by paragraph 70.2 (or paragraph 70.1(a) of Condition 70 having effect on 31st July 1997), the effect on accrued revenue of the changes in General Prices (or General Prices as defined in that Condition 70) fails, in the opinion of the Director, to meet the requirements of that paragraph, the Licensee shall make such adjustments in General Prices (or leave them unchanged), for such period, whether in the year in question or the following year (and whether or not that year is a Relevant Year), as may be reasonably required to satisfy the Director that the matter has been remedied.

     70.9 Subject to paragraphs 70.10, 70.14 and 70.15 and Conditions 74.4 and 74.5, the Controlling Percentage in relation to any Relevant Year is the amount of the change in the Retail Prices Index in the period of 12 months ending on 30 June immediately before the beginning of that Year, expressed as a percentage (rounded to two decimal places) of that Index as at the beginning of that period ("RPI"), reduced by 4.5.

     70.10 If the difference between General Prices charged at the beginning and at the end of any Relevant Year is such that the relevant Percentage Change in General Prices is less (in the case of a permitted increase), or greater (in the case of a required reduction), than the change permitted, or required, in accordance with paragraph 70.1, then the Controlling Percentage for the following Relevant Year shall be determined in accordance with paragraph 70.9 but increased by the amount of such deficiency or excess (as the case may be).

     70.11 The amount of a Percentage Change in General Prices which has taken place at any time during a Relevant Year is determined by taking the amount of the change in each General Price which has taken place between the beginning of the Relevant Year and that time, multiplying that amount by the amount of the revenue reasonably believed by the Licensee to have accrued during the Relevant Financial Year in respect of the service for which that Price is charged from customers whose bills from the Licensee are equal to or less than the Threshold, dividing in each case the amounts so produced by the Price charged at the beginning of the Relevant Year for the service to which each such amount relates, and taking the aggregate of the results, expressed as a percentage of all the revenue reasonably believed to have accrued for such services from such customers during the Relevant Financial Year. The Threshold is the highest bill of residential customers in the eighth decile of all residential customers (ranked on the basis of the amount billed by the Licensee to all residential customers for the services for which General Prices are charged, the highest bill being at the top of the tenth decile) in the Relevant Financial Year.

     70.12 Notwithstanding paragraph 70.11, if the Licensee has notified the Director in writing both of its intention to increase during a Period one or more General Prices and of its intention within three months of the first such increase to reduce one or more General Prices then, unless:



(a) the Director dissents within 28 days of such notification on the ground that undue advantage is being taken of this paragraph; or

(b) the reduction as so notified is not introduced,



for the purposes of paragraph 70.11, when determining the amount of a Percentage Change which has taken place at the end of the said Period and each subsequent Period, it shall be assumed that any such reduction had taken place during the first mentioned Period.

     70.13 Where the Licensee makes a material change (other than to the amount of a General Price) to any service for which a General Price is charged or to the date on which its financial year ends or there is a material change in the basis of the Retail Prices Index, this Condition shall have effect subject to such reasonable adjustment to take account of the change as the Director may, after consultation with the Licensee, determine to be appropriate in the circumstances; and for the purposes of this paragraph a material change to any service includes the introduction of a new service wholly or substantially in substitution for that existing service.

     70.14 If the Licensee imposes a specific charge or an increased charge in relation to any goods or service which up to the time when the charge or increased charge is first imposed had been provided without charge or at a lower charge and the Director determines, after consultation with the Licensee, that some or all the costs properly attributable to that service had previously been attributed to services to which General Prices apply and that it would be proper in the circumstances for the newly introduced or increased charge to be controlled, that charge shall, unless the Director determines otherwise, be a General Price and this Condition shall have effect subject to the following provisions:



(a) the Licensee shall produce a forecast of the revenue expected to accrue as a result of the charge or increased charge for the goods or service over a period of twelve months from the date of introduction or increase of the charge;

(b) the forecast shall be expressed as a percentage of the total amount of revenue reasonably believed by the Licensee to have accrued in respect of General Prices during the Relevant Financial Year which relates to the Relevant Year during which the charge is introduced or increased;

(c) the Controlling Percentage for that Relevant Year shall be reduced by that percentage;

(d) an adjustment shall be made to the Controlling Percentage for that Relevant Year in respect of which it is first possible, from the Relevant Financial Year accounts, to take into account a comparison between the first 12 months' actual accrued revenue from the charge and the forecast referred to in sub-paragraph (a), whereby the Controlling Percentage for that Relevant Year shall be increased or reduced (as the case may be) by the difference between the forecast amount referred to in sub-paragraph (a) and the amount of actual accrued revenue (the difference to be expressed as a percentage of the total amount of revenue accrued in respect of General Prices during the Relevant Financial Year which relates to that Relevant Year);

(e) further adjustments shall be made to the Controlling Percentage referred to in sub-paragraph (d) and adjusted as specified therein:


(i) where there is any difference between the forecast referred to in sub-paragraph (a) and the actual accrued revenue referred to in sub-paragraph (d), in order to compensate for the extent to which, by virtue of that difference, General Prices in previous Relevant Years have been too high or too low (as the case may be); and

(ii) where there has been any variation in the charge for the service between the Relevant Year referred to in sub-paragraph (b) and the Relevant Year referred to in sub-paragraph (d) which the Director, after consultation with the Licensee, determines should be taken into account for the purposes of calculating the Controlling Percentage; and



(f) the adjustments referred to in sub-paragraphs (d) and (e) shall be made in the manner which the Director determines to be appropriate in the circumstances, after consultation with the Licensee.



     70.15 If the charge or increased charge for any goods or service covered by paragraph 70.14 is altered following its introduction but before the adjustment referred to in paragraph 70.14(d) can be made then, in respect of that charge, in calculating the amount of a Percentage Change in General Prices in paragraph 70.11, the forecast set out in paragraph 70.14(a) shall be substituted for the amount referred to in paragraph 70.16(a).

     70.16 The Licensee shall no later than the time at which it notifies or should have notified the Director under Condition 7 of any amendment of any charge which is a General Price inform the Director in writing of:



(a) the amount of revenue which the Licensee reasonably believes to have accrued in the Relevant Financial Year for each service in respect of which a General Price is charged; and

(b) the amount of each General Price at the beginning of the Relevant Year.



     70.17 Without prejudice to its obligations under Condition 7 in relation to General Prices, the Licensee shall as soon as practicable after the end of each Period in which there has been a change in a General Price inform the Director in writing of:



(a) the changes made or new charges imposed in relation to any General Price during the Period specifying its nature and amount and the service for which the Price is charged; and

(b) the amount of the Percentage Change in General Prices which has taken place during the Period and whether by way of increase or reduction.



     70.18 In this Condition any reference to "service" which is not part of the expression "goods or service" shall be taken to include a reference to goods for the purposes of paragraphs 70.14 and 70.15. References to accrued revenue are references to the revenue attributable to General Prices but with the addition of the revenue attributable to Discounted General Prices where the revenue is grossed up so as to leave the discount out of account (or grossed down where the revenue is greater than that attributable to the relevant General Price), and cognate expressions shall be construed accordingly.

     70.19 This Condition shall not apply to such extent as the Director may determine upon request by the Licensee.





Condition 71
FURTHER PROVISIONS RELATING TO GENERAL PRICES
     71.1 In this Condition:


(a) a "General Price (Type A)" means a proposed General Price which is less than the aggregate (the "Aggregate Cost") of the Retail Cost, the Delivery Outpayment Cost (if applicable), the Conveyance Outpayment Cost (if applicable) and the Network Cost which are attributable in each case to the provision of the relevant Retail Service before the implementation of the proposed change in General Price;



other than a proposed General Price which is less than the Aggregate Cost:



(i) as a result of the application of any law (including a regulatory control, which includes a voluntary commitment in the nature of a regulatory control) other than the provisions of Condition 70.1 to 70.13 as a result of any regulatory or other action by Government, by the Director or by any other regulatory agent but is set at the highest level to which the Licensee is permitted to raise that General Price; or

(ii) for any reason, but which would be greater than the General Price before the implementation of the proposed change in General Price; and



(b) a "General Price (Type B)" means a proposed General Price which is not a General Price (Type A).



     71.2 The Licensee shall, as soon as practicable after the coming into force of this Condition, publish in accordance with paragraphs 71.7 and 71.8 details of the matters which it and the Director have agreed, on or before the date on which this Condition comes into force, should be excluded from the definition of "General Price" in paragraph 71.1.

     71.3 Where the Licensee proposes a change to a General Price, whether through the introduction of a Special Offer or otherwise, it shall send to the Director, in the manner and at the time specified in paragraphs 71.7 and 71.8 as the case may be, a written notice (a "Price Change Notice") specifying:



(a) the General Price before the implementation of the proposed change in that General Price;

(b) the General Price after the implementation of the proposed change in that General Price;

(c) the following elements attributable to the provision of the relevant Retail Service both before the implementation of the proposed change in that General Price and after the implementation of that proposed change identifying separately:


(i) the Retail Cost;

(ii) the Delivery Outpayment Cost (if applicable);

(iii) the Conveyance Outpayment Cost (if applicable);

(iv) the Network Cost showing separately the Transfer Charge for each Network Component and each Network Part used for the provision of the relevant Retail Service;



(d) in the case of a change in a proposed General Price through the introduction of a Special Offer, the period of time not exceeding three months for which the Licensee proposes to offer the new General Price; and

(e) any charge for a Standard Service which the Licensee is required to notify to an Operator in accordance with paragraph 71.11 or 71.14.



     71.4 In the case of a General Price (Type A) the Licensee shall send the Price Change Notice to the Director before the publication of any notice required under Condition 7, 55 or 58 as the case may be of a change in a General Price. The Licensee shall not publish a notice pursuant to Condition 7 relating to the proposed new General Price or make that new General Price available to any customer unless the Director has given his prior written consent, which shall not be unreasonably withheld.

     71.5 In the case of a General Price (Type B) the Licensee shall send the Price Change Notice to the Director as soon as reasonably practicable before it publishes any notice required under Condition 7, 55 or 58 as the case may be of the change in the General Price.

     71.6 As soon as the Licensee becomes aware that the Delivery Outpayment Cost attributable to the provision of a Retail Service, assessed in the manner notified by the Director to the Licensee from time to time as an average over a period of three months, has for any reason been at a level such that had the General Price for that Retail Service been a proposed General Price it would have been a General Price (Type A), the Licensee shall, as soon as practicable after it has become so aware, send to the Director a Price Change Notice. Following receipt of the Price Change Notice, the Director may direct the Licensee to increase that General Price to a level not above the level at which, had that General Price been a proposed General Price it would have been a General Price (Type B) and, notwithstanding Condition 70, the Licensee shall increase that General Price accordingly.

     71.7 Subject to paragraph 71.9, the Licensee shall send a copy of the Price Change Notice to any person who may (after the publication of the notice in accordance with Condition 7, 55 or 58 as the case may be of a change in a General Price) request one, on payment of a reasonable charge. The Licensee shall, subject to paragraph 71.9, send a copy of the Price Change Notice so requested within seven working days after receiving payment of that charge.

     71.8 At the same time as the Licensee publishes a notice in accordance with Condition 7, 55 or 58 as the case may be of a change in General Price, it shall make available and continue to make available in a publicly accessible part of every Major Office of the Licensee in the place as is required by Condition 7, 55 or 58 as the case may be a notice of the address and telephone number of the person to whom any request for a copy of the Price Change Notice may be made.

     71.9 The Licensee shall be entitled to exclude from any Price Change Notice which it is obliged to send to any person who may require one pursuant to paragraph 71.7 any matter to the exclusion of which the Director shall have consented following representations to him on the matter by the Licensee on the basis that if the matter were made available in accordance with paragraph 71.7 it would or might, in the opinion