Update 24 November 2017: Regulatory financial reporting consultation
Our November 2017 regulatory financial reporting consultation sets out our proposals to address reporting issues arising out of this consultation.
Update 14 September 2017: Further consultation on specific issues
In light of stakeholder responses and our own further analysis, we are now consulting further on specific issues, that have the effect of changing the levels of our proposed charge controls.
Update 17 August 2017: Clarification on efficiency assumptions
In response to a stakeholder query on some of the calculations comprising the efficiency assumptions in Ofcom’s WLA charge control consultation, we set out our clarification below.
Efficiency – regulatory cost analysis
In paragraphs A15.112-117 of the March 2017 WLA Consultation we described the analytical approach underlying our regulatory cost analysis. This analysis, in combination with other sources of evidence, helped to inform our proposed efficiency forecast used in the top-down model.
Following a stakeholder query relating to paragraph A15.117 of the consultation on our approach to weighting the calculated pairwise efficiencies across all components in each year, we have provided a more detailed explanation of our approach below.
- We calculated the expected cost for each component in year [x] across all services by taking the restated cost in year [x-1] and estimating price and volume impacts using the formulae that underpin the top-down model;
- We then weighted the actual and expected cost for each component in year [x] using that component’s volumes for the Relevant Services relative to all other services1;
- We then calculated the absolute efficiency gain (in £) for each component as the difference between the expected and actual cost for that component in year [x]; and
- Finally, we calculated the overall efficiency gain in year [x] as the sum of the absolute efficiency gain across components in year [x] divided by the sum of the expected cost across all components in year [x].
1. In Annex 15 of the consultation we defined ‘Relevant Services’ as the set of services covered by the top-down model. Table 3.1 of the March 2017 WLA consultation contains a list of the services covered by the top-down model. See Wholesale Local Access Market Review – Volume 2.
Update 9 August 2017: Consultation on amendments to charge control proposals
On 9 August 2017 we published a consultation that sets out how we propose to amend our charge control proposals, in the light of the additional relevant costs that BT would incur, should BT enter into a clear and public agreement with the Government committing BT to make the investment in universal broadband.
Update 9 June 2017: Clarifications on models
In response to stakeholder queries on the Ofcom WLA charge control consultation, specifically the Wholesale Local Access Consultation Models, we set out several clarificatory statements. The questions are arranged by the model they relate to, and worksheet or cell range references are provided where necessary.
Clarifications on Ofcom WLA Charge Controls Consultation (PDF, 509.0 KB)
Update 2 June 2017: Updated version of annexes 1-19
Following publication of the WLA market review consultation, BT requested that we publish an unredacted version of table A15.17 in Annex 15, which shows Ofcom’s estimates of BT’s divisional efficiency. This has now been published in an updated version of the Annexes 1-19 document.
Update 20 April 2017: Clarifications and corrections
Read our clarifications and corrections to the WLA Market Review consultation document of 31 March 2017 (PDF, 293.4 KB)
