26/08/2021

For information

This briefing is for all Communications Providers (CPs) that have access to our Openreach Portal. 

This briefing is to inform CPs about price changes for leased line circuits being used to aggregate FTTP to multiple homes or business premises.

To better align with Ofcom’s WFTMR Statement and what we are required to do under regulation, we are revising our pricing for leased lines (covering Ethernet and Optical products) where they are used for the purpose of aggregating FTTP to multiple premises for the deployment of a fibre access network.

We are changing the pricing for leased lines that are being used to aggregate FTTP to multiple homes and business premises from aggregation nodes, for example, from a street-based cabinet or similar locations with effect for circuit orders placed on or later than 1 December 2021.

From this date we will be increasing the annual rental charges payable for leased line services used for this use case, which can be found detailed on the relevant product price lists for EAD, Street Access, OSA and OSEA which can be found here. 

Openreach originally notified this change on 30 November 2020 to be effective from 1 January 2021 (earlier briefing GEN102/20 refers). The postponement of the policy introduction from January 2021 to the new effective date of 1 December 2021 is following an additional 90 day’s notification and is being done to help CPs transition to the new arrangements.

Examples of the increase in the prevailing rental prices are summarised below for ease of reference. Full details are provided in the relevant price lists discussed above. 

CP Self-certification

From 1 December 2021 we will require CPs to self-certify orders for this use case by including "FTTP aggregation" in the relevant product order notes field listed below and as further detailed in the relevant product price list entry notes.

Where Openreach believe a CP has omitted to self-certify an order believed to have been placed for the purpose of aggregating FTTP to multiple premises Openreach will seek clarification of the use case of the relevant circuit(s) as Openreach believes is necessary.  Where it is confirmed that circuit(s) are being used for FTTP aggregation but were not self-certified at order entry, the applicable annual rental charge listed for where the service is used for FTTP aggregation will be applied from the point of confirmation, and the Communications Provider will be charged the applicable annual rental charge back to the date of provision, for orders placed from 1 December 2021.

Inflight orders and pre-existing circuits

Orders placed before 1 December 2021 including completed orders will be unaffected by this policy change provided that they are not subject to a A-end or B-end rearrange or upgrade orders on or after 1 December 2021.

Alternatives available to CPs

We remind CPs that they can alternatively make use of the nationally available Physical Infrastructure Access (PIA) product, build their own network, or make alternative arrangements with another infrastructure provider.

Dark Fibre Access in Area 3

In relation to Dark Fibre Access in Area 3, Openreach have included permitted usage clauses in the regulated Dark Fibre contract prohibiting its use for aggregating FTTP to multiple premises for the deployment of a fibre access network. There is therefore no change in relation to this product.

Guidance Notes to CPs

The following guidance is provided to Communications Providers (CPs).

Guidance note 1. The change is specific to leased line circuits that are being used for the purpose of aggregating FTTP to multiple premises for the deployment of a fibre access network (for example, residential streets of houses, business and industrial parks and mixed-use housing and business developments). Here the leased line circuit is being used to deploy a fibre access network to serve FTTP which is what PIA is intended for.

Guidance note 2. The change relates to leased lines connecting fibre networks and the provision of FTTP to multiple end-user sites. This change does not apply to leased lines connecting wireless (Fixed Wireless Access) and mobile (cellular) networks.

Guidance note 3. Leased lines providing inter-exchange connectivity between Openreach exchanges are not affected by this pricing change.

Guidance note 4. Leased lines between Openreach’s exchanges and carrier neutral third-party data centres (which are deregulated) are not affected by this pricing change.

Guidance note 5. This change does not apply to leased lines serving a single building which is split down to serve multiple units typically for business, but also residential (Multiple Dwelling Units) for example, an apartment building / block of flats, on the basis that this is providing a leased line service direct to a single end-user site. How the service is then used and internally configured and cabled within the building is a matter for the individual CP. A single MDU end user site is viewed as an MDU building where all parts of the building are connected above ground by indoor space or by structural walkways with shared entrances. Accordingly, higher charges do not apply when connecting a single MDU end-user site, but they do apply when an EAD or Optical service is used to connect a single MDUs which is then onwards connected to other MDUs by a CP.

Should you have any questions related to this policy notification please contact your Openreach business development manager.

This briefing supports ACCN OR735.