The Novation service enables communications providers already established as Openreach customers to request the transfer of specific product contracts from one legal entity to another. This facility can be of use in business change scenarios such as merger and acquisitions, sale or corporate re-structuring.

Novations are carried out on a per-contract basis and require all three parties to sign the standard Openreach novation agreement. The novation of a contract means that all services and end users under that contract are transferred to the new legal entity.

A one-off fee will be applicable for each Product Contract included in a novation request, in addition to a fee for each asset included in the Novation.

For WLR, there are two types of assets (the PSTN lines or ISDN2 / ISDN30 channels and the ISDN30 bearers) that will all be subject to the relevant per asset charge as specified above.

For LLU, there are four types of asset (MPF/SMPF lines, tie cables, LLU co-mingling floor areas and Access Locate co-mingling floor areas) that will all be subject to a per asset charge as specified above.

For Ethernet, there is only one type of assets (the Ethernet circuits) that will all be subject to a per asset charge as specified above.

For NGA there are three types of assets FTTC (fibre to the cabinet), FTTP (fibre to the premise) and GEA-Cablelink.

The NGA transfer of service under NGA contract is applicable only when all the FTTP/FTTC services connected to a particular GEA-Cableink handover port are considered in the request. It will require the signed agreement from all concerned parties, including Openreach.  An outstanding minimum period applicable to each of the transferred circuits will be transferred to the gaining CP.