CHAPTER 7

Concrete steps to meet consumer expectations

Protecting the interest of the consumer and ensuring the development of high-quality service to meet market expectations are both goals at the heart of the regulator's concerns, particularly in a situation of developing competition.

In the area of quality,of service the DGPT's work in 1994 has focused on a simple objective: to make the transition from quality of service that is defined in terms of general and technical average standards measured statistically, to quality of service that is customised, guaranteed, certified and legally approved.

In terms of evaluating the general performance of operators, the DGPT is determined to improve on following up and checking up on results and introducing more transparency in procedures.

1. Action to help users

The first concern of users is high-quality service at reasonable cost. But they also want more transparency, in particular to be better informed about the conditions of supply and use, and efficient procedures to ensure their rights. In these two areas, the regulator has taken steps to promote the development of new methods to help consumers.

1.1. Towards more transparency in services on offer

The DGPT asked the Inspectorate General of Posts and Telecommunications to carry out a survey of how well France Télécom customers are informed about tariffs and contracts, which was summarised in a report in November 1994. The report highlighted the different sources of current information, their contents and their availability to customers, as well as methods developed by France Télécom to measure how well the company's consumer information policy worked.

The report by the Inspectorate General shows that improvements could be made in the areas of the transparency of tariffs and the clarity of contracts, and it proposes a certain number of guidelines, in line with the DGPT's concerns. In particular, the regulator must intensify its efforts to understand customer expectations and to improve the effectiveness of business consumer information policies.

France Télécom customers' awareness of tariffs and contracts:

Proposals made by the Inspectorate General of Posts and Telecommunications in its November 1994 report

• to improve the comprehensibility of documents given to customers, in particular contracts, by simplifying the terminology used;
• to keep customers informed by the use of mandatory mailings, i.e., letters to subscribers as well as their invoices, which would help develop more uniformity in the presentation of documents and eliminate the haphazard way in which some of them are drawn up. The invoice could be used to provide immediate information on charges, and its presentation should be improved;
• to explore the possibility of providing information on call charges during the call itself. Information is provided about the cost of a call during the call itself, for example, in call boxes, but this is not available to residential customers. In addition to providing telephones with integrated call unit meters or independent call meters, it might be possible to use voice servers;
• to set up a system of regular national surveys on how well charges are understood in order to improve the effectiveness of business consumer information policies.

The DGPT is also working to develop transparency in the area of quality.

For this purpose, in 1995 it will publish a definition of quality of service indicators and their levels, and it will also oversee the publication of the results of France Télécom for quality of service indicators that are included in the contractual plan.

The results for quality of service in the mobile telephone sector will also be made public.

1.2. Helping users monitor their telephone costs and keep them under control

Users are increasingly concerned with keeping their telephone costs under control, which requires that they have specific information about changes in tariffs.

This means getting France Télécom, with its monopoly on voice telephone operations, to take concrete steps to help consumers become aware of their telephone costs and keep them under control. A request to France Télécom to take concrete steps to meet this objective was included in the contractual plan.

Customer satisfaction:

measures included in France Télécom's second contractual plan

* The publication of consumer charters, for residential and business customers, spelling out France Télécom's commitments and the applicable penalties if these commitments are not met.

* Drawing up more specific, improved quality of service and guarantee clauses in contracts.

* Implementing measures to help customers understand their telephone costs and keep them under control:

• the opportunity for customers to consult the amount of their telephone bill at any time and to set a maximum limit,
• the opportunity for customers to set the conditions for access to any services they want, in particular written and vocal telematics services,
• continued diversification of methods for the presentation and sending of invoices, in particular, itemized bills, along with methods of payment;
• continued improvement in methods for handling malicious callers, within the framework of existing regulations,
• strengthening the integrity of France Télécom's distribution network.

* Improving the way in which France Télécom handles complaints.

1.3. The fair handling of user complaints

Users must be in a position to fully assert their rights in case of a dispute with the public operator. The DGPT considers the way in which France Télécom handles customer complaints - both in terms of speed and effectiveness - to be particularly important.

The DGPT issued a request under the terms of France Télécom's contractual plan to draw up a summary of its activity in this area and submit it before the end of 1995.

1.4. Taking into account social needs, particularly as concerns tariffs

The report entitled "A right to a telephone", drawn up by Mr. Jacques Dondoux at the request of the Minster, presents an initial summary of measures taken on behalf of "low-volume users" within the framework of the 15 January 1994 tariff reform and develops some new approaches.

Mr. Dondoux's report shows the need to develop, perfect, and expand upon measures taken by France Télécom on behalf of "low-volume users". In addition, as the telephone is an indispensable tool for maintaining social and emotional support for people in financial difficulty, the report notes the need to ensure these people have access to telephone service.

In the terms of the contractual plan, France Télécom was required to offer its residential customers tariff schemes that were adapted particularly for low-use lines.

1.5. The dialogue with users

- Coordination: a key tool for the DGPT for understanding and action

The French regulator for the telecommunications sectors has a well-established policy of coordinating its efforts with all the economic and social players on the subjects that are essential for developing a telecommunications sector in France that is both open and dynamic.

The public consultation held in September 1994 by the DGPT on conditions for providing leased line services (Note: this advisory document and the summary of responses can be ordered by fax on: (33-1) 43 19 65 34) has made it possible in particular to gather the viewpoints, in the form of interviews and written documents, of the large-scale users and operators of independent networks as well as trade associations and user representatives.

This consultation helped to identify expectations concerning the terms under which services are offered, including tariffs, and to understand users' viewpoints on the quality of service of leased lines and on the indicators needed to measure this.

- Consumer surveys help to identify certain expectations

The DGPT wanted a study evaluating the different kinds of consumer expectations and their priorities concerning the quality of telephone service. The study also covered the methods consumers considered most likely to meet their own needs and to encourage operators to improve the quality of service.

This study, which is currently ongoing, is being carried out by the IFOP and includes a survey of representative samples of residential and business users. Its conclusions will be published.

The study will serve as a methodological tool for the DGPT which will help it develop policy in the area of service quality as part of its objective of advancing consumer interests.

Telephone directories and the protection of individual privacy

The need both to protect individual privacy and to ensure conditions of fair competition between publishers of directories of users of the public telephone network has led to setting up a system of prior notice, in compliance with the provisions of Articles L.33-4 and R.10 of the Code of Posts and Telecommunications (P&T Code).

In 1994, 130 telephone directories were submitted to the DGPT from 50 different publishers.

1994 also saw the modification of Article R.10-1 of the P&T Code: henceforth, whenever users are included on the "orange" (unlisted numbers) list (i.e., whenever subscribers, free of charge, refuse to be the subject of commercial solicitation based on lists compiled from telephone directories), the lists of users of the public telecommunications network can only be used or communicated for the purpose of publishing telephone directories, and not for any commercial solicitation.

2. The quality of services on offer

In order to provide users of telecommunications services and networks with greater diversity of services on offer, and to be able to compare the quality of services, the regulator will take action:

• to ensure that the overall results of operators in terms of quality of service are transparent,
• to promote the development of quality that is customised, certified and guaranteed.

By way of example, leased line service has demonstrated the existence of specific expectations in terms of quality, which merit an appropriate response.

Changes in distribution and consumer protection:

setting standards for the installation of mobile telephones

As a consequence of changes in the market brought about by the growth of GSM service, the DGPT, together with the industry in general, took the initiative to develop a standard in order to ensure consumer satisfaction.

Although 80% of sales of GSM units today are simple pocket-sized units, installation in vehicles is particularly important for obtaining the full benefit of mobile telephone services.

Thus, the trial standard AFNOR X 50-765 is a reference for the installation of mobile telephones in vehicles. This standard, which is voluntary in character, replaces the regulatory authorisation in force previously, which required installers to be certified.

At the same time, the requirement that professional mobile telephone installers obtain a technical qualification is reaffirmed by the continuation of the procedure for certification, in particular for the setting up and maintenance of the infrastructure for private radio-based networks for mobile telephone services (networks for private use or trunked) and for fixed service (microwave systems for private use or trunked at 23 and 38 GHz).

As for the X 50-765 standard for the installation of mobile telephone units in vehicles already on the road, it might be possible to finish setting up a framework for businesses by using a certification process for installers respecting this new reference, which could make use of the NF-Service label.

Note: a brochure on the installation of mobile telephones in vehicles is available from the DGPT by fax on (33-1) 43.19.65.34.

2.1. Evaluating and monitoring performance: more transparent results

Using statistical indicators to assess quality of service provides an overall quality assessment for telecommunications operators. This gives the consumer a reference point in the competitive environment. The DGPT has methods enabling it to measure the general performance of operators and ensure the transparency of results.

The contractual plan provides a means for giving general supervision to France Télécom service quality.

Procedures for assessing and monitoring quality of service were also developed for the mobile telephone sector.

- Quality of service indicators in the France Télécom contractual

The 2nd contractual plan, agreed between France Télécom and the Government contains commitments by France Télécom to improve the quality of its services. Eight quality of service indicators were adopted, for which a quantitative goal, which reflects consumer expectations for quality of service, must be reached by the end of the term of the contractual plan. There are four indicators at the national level and at the regional level.

FRANCE TELECOM QUALITY OF SERVICE INDICATORS

IN THE CONTRACTUAL PLAN

Indicator	Definition	Value on 31/12/93	Objective set by the contractual plan
Average time to provide telephone service*	Average time in working days between the date when telephone service is requested at the sales office and the date when the line is opened.	8 calendar days former definition	5 working days
Rate of network trouble calls*	Percentage on main lines of calls by subscribers reporting interruption or problems in service, where the fault is attributable to the network and requires repair; excluded here are problems on all equipment located on the subscriber's end relative to the network termination point.	7.5%	7.5%
Rate of failure to clear up trouble the same day or next working day*	Rate of faults per subscriber (excluding good on tests, subscriber errors, and trouble calls from maintenance) not cleared up the same day or the next day relative to the number of trouble calls giving rise to repair work.	13.7% former definition	8%
Rate of faults on public telephones for more than 24 hours	Average number of public telephones acknowledged by remote monitoring system as probably having a fault, for more than 24 hours, per 1,000 public telephones in service.	4.8/1000	5/1000
Rate of complaints about bill*	Rate of written or verbal complaints received per 1000 main lines which caused a file to be opened by the sales service.	0.8/1000
Typical time to provide leased lines for rates less than or equal to 2 Mbit/s	Number of working days which, for 80% of a given category of line, from the date of the customer's order to the date the line is provided — with the exception of lines for which the customer explicitly requested a delivery time greater than the ordinary time.	analogue: 36 LS Transfix: 40 MS Transfix: 39 HS Transfix: 44	15 working days
Rate of unsuccessful calls on network	Percentage of unsuccessful calls due to the telephone network, compared to number of calls correctly made by users.	0.33
Time required to set up calls	Interval of time between the moment when the numbering information needed to route the call is received by the network and the moment when the subscriber receives the ringing tone or the busy signal.	2.9 seconds
Rate of response in less than 15 seconds by operator services	Percentage of calls to directory enquiries for which an operator answers less than 15 seconds after the arrival of the call to the directory enquiries centre.	average response time at peak time: 32 seconds	90%
Typical repair time for leased lines	Maximum number of hours for 80% of a given category of line between the moment when a user reports a problem with the line and the moment when normal operation is re-established.	analogue: 3:28 h LS Transfix: 2:45 h MS Transfix: 3:20 h HS Transfix: 3:00 h	2:50 h
Rate of availability of digital leased lines	Total duration of interruptions for a given period.	new indicator	99.8%

* Indicators which will be monitored by regional management.

LS: low speed

MS: medium speed

HS: high speed

The DGPT intends to improve the relevance and reliability of the indicators chosen in order to better follow up and monitor results. This is why the procedure for collecting, calculating and updating quality of service indicators for the telephone system and leased lines will be audited by 1 July 1996.

- Measuring the quality of mobile telephone network service

As competition in the market for mobile telephone service develops, quality becomes an element distinguishing rival services.

The DGPT monitors whether the quality of the products and services offered to users is satisfactory, and whether the operators fulfil their commitments on the quality of services that they are authorised to provide.

Within this framework, at the end of 1994 the regulator undertook a study to assess the quality of service offered to GSM customers by the two operators, France Télécom and SFR, to confirm that the coverage requirements included in the schedule of terms and conditions for GSM approval were fulfilled, and to test the areas of service coverage reported by the operators.

SOFRES was given the responsibility to carry out a series of measurements (about 5,000 calls for each operator) in typical user calling conditions. The measurements included, in particular, the time required to set up a call, success rates, and any cut-offs in calls. Once the methodology is confirmed, the results of the study will be published by the DGPT.

In addition, the measurement of quality of service was taken into account in attributing new authorisations in 1994 for mobile telephones using the DCS 1800 standard. The schedule of terms and conditions appended to the national licence given to Bouygues Télécom and the trial licences given to France Télécom Mobiles 1800 in Toulouse and to SFR in Strasbourg specify the indicators to be used to measure quality of service and the levels to be attained. It is explicitly provided that the quality of service of the network of each operator shall be evaluated annually by a series of measures carried out by a third party on behalf of the DGPT.

2.2. Progressing to customised, guaranteed quality of service

• Customizing service for customers

Residential and business customers do not have the same expectations. One way to take this diversity of needs into account is to improve on the customisation of quality commitments in contracts with users.

In this regard, the DGPT has supported France Télécom's project of developing "consumer charters", which will specify for each particular customer the public operator's commitments, including for both its residential and business customers. These "consumer charters" will be implemented by the end of 1995.

These commitments will include, in particular, the quality and speed of customer service, deadlines for supplying lines and repairing faults, precise requirements for appointments, and deadlines for answering customer mail.

• Certifying quality

Quality control will eventually make it possible to better take account of and to respect consumer rights.

Setting up a system certified by an independent third party which applies to services provided by the operator will make it possible to improve transparency in handling customers and providing reliable, standard operations (see figure).

Certifying quality

Certification means recognition of a system of quality control set up by a company. It includes several procedures:

* Setting up a system of quality control:

The system of quality control set up by a company, i.e., all the means used to manage quality (organisational structures and procedures) must take into account the requirements previously set by the ISO 9001, 9002 and 9003 standards.

The ISO 9000 standards are pertinent to the management of quality control and apply to all categories of products and services. They are drawn up by the International Standards Organisation, which includes the standards organisations from 90 countries, with France represented by AFNOR.

In moving from standard 9001 to standard 9003, the field of quality control applications steadily contracts. Thus, standard 9001 is the broadest, and concerns quality control for a company's entire operations, from design to after-sales service. Standard 9002 does not deal with the design aspect; standard 9003 only pertains to the control of final products.

Depending on its needs and its in-house capabilities, a company chooses an ISO standard and then sets up a quality control system that it believes corresponds with the model chosen.

* Applying to the AFAQ:

Once it has set up a quality control system, the company submits a written application to a certifying institution. In France, the French Association for Quality Control (AFAQ — Association française pour l'Assurance de la Qualité) is the basic certifying institution.

* The identification questionnaire, the quality control contract and the evaluation questionnaire:

After it applies, the company receives an identification questionnaire. Once it has filled out this document, it receives a quality control contract from the certifying institution, with all the specifications concerning applicable requirements and an evaluation questionnaire which enables the company to confirm its level of preparation.

* An audit:

The evaluation questionnaire is then followed by an audit by the certifying institution of the company. The cost of the audit is borne by the company. After receiving the audit report, the company may reply to any criticisms, correct problems, and, if necessary, request an additional audit.

* The certificate:

After this procedure, the certification application is examined by the AFAQ, which may or may not issue the certificate. If certified, the company is subject to a "low-level" audit during the first two years and a full audit at the end of three years, which corresponds to the term of the certificate.

In order to improve the procedures and services that are essential for customer satisfaction, the DGPT asked France Télécom to develop an overall approach to quality control. This led to putting a priority on developing a certification procedure for certain France Télécom activities, including the procedures for charging-billing-collection and the procedures for providing leased line services. It should be recalled that the British operator BT has just won certification of all its operations.

- Compensation for users if France Télécom does not fulfil its commitment

The DGPT intends that France Télécom make commitments to its customers and that it be held responsible if these commitments are not met, as is already the case for several large companies supplying services such as EDF and BT.

In this regard, a system of penalties paid to the user is provided for in the contracts and is brought into play if these commitments are not met, thus providing a guarantee to the user.

The "consumer charters" specify the compensation due if the commitments made by France Télécom are not met.

3. Community level harmonisation

The regulator's activity is based on on-going developments in the Community; the DGPT plays a role at European level in the movement for the harmonisation of principles and mechanisms for consumer protection, in the following areas:

• drawing up the Community directive on ONP-Voice telephony (see figure): this directive will create new rights for users and promote the harmonisation of telephone service quality throughout Europe; following its rejection by the European Parliament for institutional reasons having nothing to do with the directive's content, its final adoption is now foreseen by the end of 1995.

Provisions on behalf of consumers

in the draft ONP-voice telephony directive

* Access to the fixed telephone network and to services offered: the right for anyone who so desires to subscribe to voice telephony services without discrimination.

• connection to the fixed telephone network upon request, and notification to the user of a date for starting service,
• a contract setting out the kind of service and the conditions under which it is provided, as well as means of recourse in case of a dispute,
• charging procedures that are non-discriminatory, transparent and published,
• the possibility of itemized billing,
• in case of failure to pay bills, published measures guaranteeing that the interruption in services is limited to the service concerned and that the user is duly notified beforehand,
• the provision of regularly updated telephone directories in which the user may choose whether to be included,
• a sufficient number of public call boxes in different areas to meet users' needs,
• the publication of information concerning services on offer,
• the possibility of modifying services only after consulting users and after the expiration of a notice period fixed by the national regulatory authority,
• the right for users to appeal to a national regulatory authority or an independent institution in case of failure to resolve a dispute with a telecommunications organization.

* The quality of telephone service:

• the annual publication of definitions, measurement methods, targets and results obtained,
• the updating of methods of measuring quality of service at least every three years by the national regulatory authority,
• the setting by the national regulatory authority of target figures for deadlines for providing services and specifying their quality, revised at least every three years,
• the setting up of a procedure for reimbursing users in case of failure to meet quality of service levels provided for in contracts.

- The drawing up of specific rules, in particular concerning the protection of personal data.

A joint position was adopted by the European Council of Ministers on the "protection of personal data" directive (see figure), which will extend the mechanisms for protecting privacy provided for in France by the law of 6 January 1978 ("information technology and rights") to the European level, and will adapt these mechanisms to the new technological environment. The Council may adopt a second directive, setting out more specific general obligations for the telecommunications sector: this directive could in particular establish specific rights protecting against telephone marketing or the abuse of new communications technologies. Nonetheless, discussions on the second draft directive are still at a very preliminary stage.

The basic rules that must be adopted by Member States concerning the protection of data:

the joint position adopted by the Council of Ministers with a view to adoption of the framework directive concerning the "protection of individuals as concerns the handling of data of a personal character and the free circulation of these data"

• The proposals of the framework directive make no distinction between the public sector and the private sector (unlike the French law of 1978) and apply to the handling of data of a personal character, automated in whole or in part, as well as the non-automated handling of data of a personal character contained or destined to be included in data files. Those responsible for handling this data must ensure the security of these procedures.
• It sets the general conditions for the lawfulness of handling personal data: it specifies the principles for different kinds of data and for the basic ground rules and lawfulness of handling such data.
• It introduces a system especially for sensitive data and for handling data that is exclusively for journalistic use or for artistic or literary purposes.
• It sets out the principle of the requirement to inform any persons concerned, particularly in case of communications to a third party. Anyone concerned has a right to access and a right to object to the handling of data concerning them.
• It sets a requirement to notify the monitoring authority (responsible for checking up on the implementation and respect for principles contained in the directive) prior to setting up any processing that is computerized in whole or in part; and it provides for a possible exception to this requirement or simplification of the notification process for different types of processing that are not likely to infringe on the rights and freedoms of the persons concerned; but in any case, there is the need for a prior examination before implementing any procedure in processing data that carries specific risks to the rights or freedoms of individuals.
• The draft hold that the transmission of data to a non-Community country can only take place if the third country guarantees "an adequate level of protection", with certain exceptions provided for in the text.
• It devotes a chapter to means of legal recourse, to responsibility and to penalties in case of violation of rights guaranteed in the directive.
• It specifies that the business sectors concerned should be encouraged to draw up codes of conduct, in order to encourage the implementation of the directive in accordance with national legislation adopted for its application.

Finally, and above all, this framework directive provides for the creation of independent regulatory authorities and grants them certain powers.

- consumer protection for contracts negotiated at a distance

The DGPT is taking part in inter-ministerial work on a draft directive for consumer protection for contracts negotiated at a distance, presented by the Commission of the European Communities on 21 May 1992 and modified on 7 October 1993, the date of the European Parliament's opinion. During the French presidency, the Council should adopt a joint position on this directive.

The draft pertains to contracts for goods and services (with specific exceptions, financial services in particular) reached by using long-distance communications methods, such as automated calling systems, telephone canvassing, printed matter, and faxes, but also electronic mail and television.

In particular, the draft provides for an information procedure prior to concluding the contract, written confirmation of information and, above all, a right of retraction for the customer. In addition, the draft envisages setting limits on the use of certain distance communications techniques that are particularly invasive by requiring prior consent for the seller to use automated calling systems and faxes. Other communications-based methods such as the telephone or printed matter can only be used when there is no expressed opposition by the consumer.

It should be emphasized that in this area France already has consumer protection regulations concerning mail order sales.

Comparison of the policies of the DGPT and of OFTEL

on data collection (excluding public consultations)

1994/1995

	OFTEL		DGPT
Type of data	External studies	Systematic Collection	External studies	Systematic collection
Accounting data from the dominant operator	Audit of the separate accounts	Regular publication by BT of its accounts divided into six economic units and of a list of standard charges	1994: Audit of France Télécom leased lines KPMG 1995: Accounting audit of France Télécom (scheduled)
Quality of service		1994: evaluation of service quality of fixed operators 1995: evaluation of service quality of all operators	1994: comparative study of GSM service quality SOFRES 1995: nation-wide GSM quality study	Indicators contracted for in France Télécom contractual plan
Assessment of interest in new services and products	1994: assessment of national economic gains due to call portability Cabinet NERA 1995: consumer reaction to caller identification (scheduled) importance of numbers for different uses of the network (scheduled)		1994: impact of introducing telephone service on cable IDATE
Consumer expectations	1994: residential consumer expectations Cabinet MORI consumer expectations concerning directory enquires 1995: expectations of the disabled expectations of SMEs		1995: consumer expectations of service quality IFOP (ongoing)
Compliance with the rules of competition	1994: competitive practices on the telecoms market Ernst & Young		1995: assessment of France Télécom's intervention in the competitive sector (scheduled)
Monitoring the markets		Collection of statistical data on markets from service providers and operators	1995: study of the CB market and the market for local wireless networks (scheduled)	Monitoring report on mobile telephones (monthly publication since January 1995)

Chapter VIII