This Statement contains Ofcom's proposals for new charge controls for Local Loop Unbundling (LLU) and Wholesale Line Rental (WLR) services.
Charge controls for these services are being set as a consequence of our 2010 reviews of the Wholesale Local Access (WLA) and Wholesale Fixed Analogue Exchange Line (WFAEL) markets. In both markets, we identified that BT (Openreach) has Significant Market Power (SMP) and that charge controls are necessary as a remedy to address Openreach's ability to fix or maintain prices at an excessively high level for LLU and WLR services in the respective markets.
As part of this charge control review, we undertook a further examination of the WLA and WFAEL markets to satisfy ourselves that there has not been a material change in either market since Ofcom's market power determinations in relation to those markets. As set out in this Statement, we have determined that there has been no material change in either the WLA Market or the WFAEL Market since Ofcom's market power determinations in relation to those markets and that it remains appropriate to set charge controls
The previous charge controls expired on 31 March 2011. Since 1 April 2011, Openreach has been setting charges in accordance with a voluntary commitment. This voluntary commitment expires on 31 March 2012.
In reaching the conclusions set out in this Statement, we have taken account of stakeholder responses to our two consultations in March 2011 and November 2011. We have also considered, where relevant, the 2009 LLU Determination and the 2009 WLR Determination.
The charge controls will cover two years (2012/13 and 2013/14) after which any extension of the controls will be subject to further market reviews.