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

means together the Accounting Policies, the Attribution Methods, the Regulatory Accounting Principles, the Transfer Charging System and the Long Run Incremental Cost methodology;

means the manner in which the requirements of the Companies Act 1985, the Accounting Standards and the accounting policies applied by the Licensee in the preparation of its annual statutory financial statements, where relevant and appropriate, are applied in each of the Financial Statements, the Restated Financial Statements and the Interim Financial Statements as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 came into force, as amended from time to time in accordance with that Condition;

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;

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;

means apparatus which is applicable terminal equipment within the meaning of regulation 4 of the Telecommunications Terminal Equipment Regulations 1992 (S.I. 1992/2423);

means in relation to any system apparatus approved under section 22 of the Act for connection to that system;

includes allocatable and apportionable, “attribute" includes allocate and apportion and “attribution" includes allocation and apportionment. 79 The Licensee shall take all reasonable steps to ensure that those of its employees who are engaged in each of the Systems Business and the Supplemental Services Business observe the provisions of a Code of Practice which: a specifies the persons to whom they may not disclose information about a customer of the Licensee or that customer’s business which has been acquired in the course of the Systems Business or the Supplemental Service Business without the prior consent of that customer;

includes allocate and apportion and “attribution" includes allocation and apportionment. 79 The Licensee shall take all reasonable steps to ensure that those of its employees who are engaged in each of the Systems Business and the Supplemental Services Business observe the provisions of a Code of Practice which: a specifies the persons to whom they may not disclose information about a customer of the Licensee or that customer’s business which has been acquired in the course of the Systems Business or the Supplemental Service Business without the prior consent of that customer;

includes allocation and apportionment. 79 The Licensee shall take all reasonable steps to ensure that those of its employees who are engaged in each of the Systems Business and the Supplemental Services Business observe the provisions of a Code of Practice which: a specifies the persons to whom they may not disclose information about a customer of the Licensee or that customer’s business which has been acquired in the course of the Systems Business or the Supplemental Service Business without the prior consent of that customer;

means the practices used to attribute revenue (including appropriate transfer charges), costs (including appropriate transfer charges), assets and liabilities to a Business or, insofar as that Business has been disaggregated in terms of activities of that Business, to each activity of that Business as agreed in writing between the Director and the Licensee on or before the date on which Condition 78 came into force, as amended from time to time in accordance with that Condition;

has the meaning specified in paragraph 72.2(a) above;

means the year ending on the 31st March immediately preceding the Year in question;

means British Telecommunications plc;

means any one of them;

has the meaning specified in paragraph 72.2(b) above;

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;

means a circuit switched conveyance of a Message originating in a telecommunication system which is not an Applicable System but which is connected to any of the Applicable Systems, and intended to terminate on a handset connected to the mobile public telecommunication system of Telecom Securicor Cellular Radio Limited or Vodafone Limited, other than: (a) any call by which there is conveyed a voice telephony Message in relation to any services provided by means of any of the Applicable Systems which form part of its Supplemental Service Business;

means telecommunication apparatus not supplied by the Licensee to any particular person but made available for use by the public or a class of the public;

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;

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;

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;

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;

means Applicable Terminal Equipment which satisfies the requirements of regulation 8 of the Telecommunications Terminal Equipment Regulations 1992;

means in relation to any Year the amount of the change in the Retail Prices Index in the period of 12 months ending on 31st December 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, reduced by seven;

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;

means a Standard Service comprising the conveyance of switched Messages;

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;

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;

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;

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;

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;

means a General Price imposed by the Licensee for: (i) the use and Ordinary Maintenance;

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;

has the meaning given to it in Condition 78.5;

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;

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;

means a proposed General Price which is not a General Price (Type A). 71 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 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;

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;

includes, without prejudice to its generality, patents, designs, know-how, and copyright;

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;

means a double plus transit Conveyance Standard Service;

has the same meaning as in the Telecommunications (Interconnection) Regulations 1997;

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").

means an operator recognised as such by the ITTCC;

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;

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;

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;

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;

means the International Telegraph and Telephone Consultation Committee;

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;

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;

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;

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;

means the conveyance of switched Messages between (but not over) a local exchange and a tandem exchange;

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, as amended from time to time in accordance with Condition 78;

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;

means: (i) all periodic charges for the ordinary use and Ordinary Maintenance of an Exchange Line;

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;

means anything falling within paragraphs (a) to (d) of section 4(1) of the Act;

means the Business which includes the revenues, costs and assets derived from or used in activities related to Interconnection taken together. 78 The Licensee shall establish sufficient accounting and reporting arrangements to comply with its obligations under this Condition. 78 a Except to the extent the Director may otherwise consent, the Licensee shall maintain accounting records in a form: i which enables each Business and, insofar as it has been disaggregated in terms of activities of the Business, each of the activities of that Business, to be separately identified or the costs, revenues and assets of each Business and, insofar as it has been disaggregated in terms of activities of the Business, the costs, revenues and assets of each of those activities, to be separately attributable, on an historic cost basis;

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;

means telecommunication apparatus comprised in the Applicable Systems which is not Network Termination and Testing Apparatus and is connected to another telecommunication system;

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;

means an item of telecommunication apparatus comprised in the Applicable Systems installed in a fixed position on Served Premises which enables: (i) Approved Apparatus to be readily connected to, and disconnected from, the Applicable Systems;

means any point: (i) within an item of Network Connecting Apparatus at which energy in any of the forms specified in section 4(1) of the Act is conveyed directly to or from apparatus comprised in a telecommunication system other than one in which that Network Connecting Apparatus is comprised;

means a Standard Service which is not a Conveyance Standard Service;

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;

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;

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;

means people who are deaf, deaf-blind or speech-impaired;

means the discount yield for Relevant Year expressed as a percentage of the Control Revenue in the Relevant Financial Year;

means a calendar month or such longer period as the Director may determine;

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;

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;

means the schedule specifying: (i) quality measures and Target Performance;

has the meaning given to it in Condition 70.6;

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;

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;

means: (i) “Terminal Apparatus" that is to say any telecommunication apparatus installed on Served Premises by means of which Messages are initially transmitted or ultimately received except a Call Office;

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;

has the meaning specified in paragraph 71.2(c) above;

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;

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;

means the retail cost that is in the opinion of the Director appropriately attributed by the Licensee to the provision of a Retail Service;

means the index of retail prices compiled by Her Majesty’s Government in respect of all items;

means a service provided by the Licensee to any person for which a General Price is charged;

means the retail charge made by the Licensee at its standard tariffs for a Call less the payment made by the Licensee to Cellnet or Vodafone (as the case may be) for interconnection of the Call, and “interconnection" has the same meaning as in the Telecommunications (Interconnection) Regulations 1997;

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;

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;

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);

includes any floating structure for the exploration for, or exploitation of, oil or gas, or similar structure, while it is not maintained on a station;

means a single set of premises in single occupation where apparatus has been installed for the purpose of the provision of telecommunication services by means of the Applicable Systems at those premises.

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;

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;

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;

means the minimum level of performance which the Licensee intends to provide;

means a text terminal connected to the public switched telephone network. 69 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 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;

means the Telecommunications Act 1984;

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;

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

means the area within which Kingston Communications (Hull) PLC is authorised to run telecommunication systems under a Licence granted by the Secretary of State under section 7 of the Act on 30th November 1987;

means the BT licence as amended by these Regulations;

means the Schedules to the Telecommunications (Licence Modification) (Standard Schedules) Regulations 1999.

has the meaning given to it in Condition 70;

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, as amended from time to time in accordance with that Condition;

means the period from 1st April to 31st March inclusive. 73 The provisions of Condition 70 (except Conditions 70.2, 70.6, 70.8 and 70.11) shall apply separately to: a the aggregate of Private Leased Circuit Prices for analogue Private Leased Circuits;