The Metering and Billing Scheme
Effect of the 2003 Communications Act
The 2003 Communications Act introduced a number of changes to the way that Billing Accuracy is to be managed, assessed and Approved. Operator Licences were replaced by “General Conditions of Entitlement”, enabling any person to run a service. Condition 11 covers the requirements for Billing Accuracy, and it is important to note that Condition 11.1 (as amended) applies to ALL “Communications Providers” (CPs) irrespective of size. It reads:
11.1 The Communications Provider shall not render any Bill to an End-User in respect of the provision of any Public Electronic Communications Services unless every amount stated in that Bill represents and does not exceed the true extent of any such service actually provided to the End-User in question.
Note: It has been suggested that it is not easy for a CP to demonstrate compliance with this largely non-numerical requirement. However, if a CP has been found to be compliant with the current accuracy standard (see below), that would seem to be a reasonable defence if there was an assertion that the CP was in breach of Condition 11.1.
Conditions 11.3 and 11.4 go further than 11.1 and require those CPs of a certain size to Apply for Metering and Billing Approval:
11.3 Paragraphs 11.4 to 11.5 shall only apply to a Communications Provider where:
11.4 Subject to paragraph 11.3, the Communications Provider shall apply to an Approval Body for Approval of its Total Metering and Billing System, in respect of the Publicly Available Telephone Services it provides and any other Electronic Communications Services it provides as shall be agreed between the Communications Provider and the Approval Body. The Communications Provider shall obtain Approval for these services as soon as is practicable. The Communications Provider shall comply with any directions made by the Approval Body in respect of such Approval. For the avoidance of doubt, this obligation applies in respect of any Total Metering and Billing System, whether already in use or newly installed.
11.5 Where an Approval Body does not grant or withdraws Approval from all or part of a Communications Provider’s Total Metering and Billing System, that Communications Provider shall, as soon as is reasonably practicable either:
Accuracy Standard and Guidance
The Accuracy Standard OTR003:2001 was converted into the "Oftel Metering and Billing Direction” in order to align it with the wording of the 2003 Act. About 25 CPs achieved an Approval against this document, and such Approvals remain valid (unless withdrawn previously) until the end of 2010. MABABF issued a set of nine “Metering and Billing Guides” (see Downloads) to assist with interpretation of this Direction and its immediate predecessor.
In July 2008, this Direction was updated to become the Ofcom Metering and Billing Direction, which is a more comprehensive document, and will require the revision / replacement of the Guides. As at February 2009, two new Guides (see Downloads) have been issued, having applicability to both the 2003 and 2008 Directions. MABABF has in hand to generate further documents as necessary.
Approval Process
In overview, the Approval Process starts with a CP selecting an Approval Body and making an Application for Approval.
A “Risk Assessment” is then carried out to identify where there are risks of inaccuracy arising. The outputs from this drive two things:
Audits and Assessments are carried out both internally and by the Approval Body, to ensure that performance is accurately reported and that the processes and procedures used, as well as the equipment, are fit for purpose. It is essential for accuracy to be a “Business As Usual” matter for the CP. It is not possible to “inspect accuracy into” a system that works on any other basis.
When there is 12 months of compliant historical performance data and all Corrective Actions have been carried out satisfactorily to fix those problems identified as being barriers to Approval, then the granting of Approval can be considered. Exceptionally, where performance is stable and significantly better than the necessary standard, 6 months of data may be considered to be sufficient.
Consultation / Notification
Before an AB grants, modifies or withdraws an Approval, a Notification is sent to interested persons, and one month allowed for comments. Any representations received are considered and appropriate action taken.
Re-Approval
Metering & Billing Accuracy Certificates have a finite life defined by an expiry date. Normally, each year on the anniversary of Approval, the AB will review the situation and indicate whether certification can continue or not. Before the expiry date, a re-assessment will be carried out, as appropriate to the performance achieved, and the number and severity of “Incidents” which have arisen.