Fixed Access Market Reviews: Approach to the VULA margin

  • Start: 19 June 2014
  • Status: Closed
  • End: 28 August 2014

We published on [30/31] July 2014 an addendum covering additional detail on differences between BT and another stakeholder in relation to out of package (OOP) call revenues and set out why we do not propose to make any adjustments in respect of these revenues.

This is a consultation on our proposals for regulating the margin between BT’s wholesale and retail superfast broadband prices.

Superfast broadband forms a moderate but growing part of the overall broadband market and we expect it will become more important over time. Ensuring effective retail competition in superfast broadband is important in maintaining the UK’s competitive retail broadband market, which benefits consumers.

BT is required to provide communication providers with access to its next generation, superfast broadband network through a wholesale product called Virtual Unbundled Local Access (VULA).

This consultation sets out detailed proposals for the minimum margin that BT must maintain between its wholesale VULA and retail superfast broadband prices. Our proposals are designed to ensure that other communication providers can continue to compete with BT in the supply of superfast broadband to consumers, whilst maintaining the pricing flexibility for VULA that preserves BT’s investment incentives in relation to superfast broadband.

The consultation closes on 28 August 2014. Subject to the responses that we receive, we intend to publish a final statement in Q4 2014.

BT VULA margin model

VULA margin – non-confidential model


Main documents

Addendum on call revenues
(PDF File, 16.8 KB)
Download

Supporting documents

Amendment statement
(PDF File, 175.8 KB)
Download
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Responses

Responder name Type
Advisory_Committee_for_Wales.pdf (PDF, 486.7 KB) Individual
BT_Group-Compass_Lexecon_additional_submission_on_the_treatment_of_BT_Sport.pdf (PDF, 414.2 KB) Individual
BT_Group.pdf (PDF, 1015.8 KB) Individual
BT_Group_-_Annex_B_-_The_applicable_legal_framework.pdf (PDF, 403.9 KB) Individual
BT_Group_-_Annex_D_-_Margin_squeeze_tests_by_other_NRAs.pdf (PDF, 239.5 KB) Individual