Compliance underscores high standards

We work systematically to live within the law and comply with voluntary standards and regulatory guidelines.

Our conduct and compliance affects the reputation of the O2 brand, our legal position and our financial sustainability.

The Telefónica Europe Board is responsible for compliance across Telefónica Europe and for ensuring that all O2 companies meet local legal and regulatory requirements.

Members must also confirm compliance with our Business Principles every six months as part of the Corporate Governance Certification process.

Within Telefónica O2 UK, compliance officers monitor training and investigate failures.

Competition law gives authorities and local regulators the power to stop unfair trading, as well as the right to impose significant fines. Failure to comply could leave us exposed to claims for damages from third parties.

Our industry’s Government watchdogs are:

• The Office of Communications (Ofcom) – the regulation and competition authority for the UK communications industry
• PhonepayPlus (formerly known as ICSTIS) - the regulatory body for the UK’s premium-rate telecommunications industry
• Information Commissioner’s Office (ICO) – the independent authority set up to promote access to official information and to protect personal information

During 2008 Telefónica O2 UK had:

• 1 complaint upheld by Ofcom.
• 14 adverse assessments brought by the ICO concerning failure to comply with the Data Protection Act.
• No upheld complaints by the Advertising Standards Authority.

We investigate every regulatory complaint in line with our compliance procedures.

During 2008:

• 80 per cent of employees completed competition law training
• 88 per cent completed data protection training
• 85 per cent completed Advertising Standards training

Quality standards

We comply with international standards to ensure that standards of product quality, health and safety, and environmental management are high.

In 2008, we remained accredited to:

• ISO 9001:2000 - the international quality management standard
• ISO 14001:2004 - the international environmental management system
• OHSAS 18001:1999 - health and safety management system

Telefónica O2 UK is also registered to the Investors in Excellence standard and we comply with various quality and compliance standards set by regulators, such as the British Approvals Board for Telecommunications (BABT).