§ Mr. Woodasked the Secretary of State for Trade and Industry if he is satisfied with progress on the liberalisation of telecommunications apparatus and if he will make a statement.
§ Mr. ButcherThe current system of standards and approvals, set up under the British Telecommunications Act 1981, has produced a transformation in the choice available to users of telecommunication subscriber's apparatus. But now, with two and a half years' experience as a guide, it is time to take stock. There are worrying signs that the standards approval procedures are not given sufficient help to innovation. I am also concerned that approval procedures are taking too long and inhibiting market entry.
I am therefore examining how to simplify and streamline the standards, testing and approval procedures. This will result in easier market entry, particularly for smaller companies; more competition in the telecommunications products market; and more innovative products.
The revision of standards will, I expect, alter the balance between mandatory and non-mandatory requirements, leading to much simpler basic mandatory standards, which will be supplemented by optional quality standards, without endangering the quality of service provided by public telecommunication networks.
In order to make an immediate impact on the problem, I have also decided, as an interim measure, that there should be changes to approval procedures in order to speed up market access for new products. Beginning at once, approval will take place in two stages. The first will involve only the testing of safety factors. Apparatus that passes safety tests will be given an immediate but interim approval provided certain conditions are met. The second stage of approval under this interim measure will comprise testing to the remainder of the relevant standard. Upon successful completion of this stage, the restrictions placed upon the interim approval will normally be lifted.
These new arrangements will help companies, large and small, to market new products much more quickly, and encourage them to look to their own test facilities, or to private laboratories, to develop their products to meet the relevant standards before embarking on the formal approval procedures. This will speed up approval procedures by avoiding much of the need for modification and retesting of apparatus. The new arrangements will be re-considered when the review of standards is complete.
I have placed in the Libraries of both Houses a statement of the particular conditions of interim approval.