Business Connectivity Market Review

  • Start: 18 June 2012
  • Status: Closed
  • End: 24 August 2012

In this document we propose measures to address concerns we have identified about the extent of competition in the provision of leased lines in the UK.

Leased lines provide dedicated symmetric transmission capacity between fixed locations, and their overall value exceeds 2bn per annum in the UK. They play an important role in business communications services and are used to support a wide variety of applications, both in the private and public sectors. They also play a significant role in delivering fixed and mobile broadband services to consumers, because communications providers (CPs) use them extensively in their networks.

Our proposals are designed to promote competition in the provision of leased lines and the services which use them, and will affect the availability, choice, price, quality and value for money of data-transfer services throughout the UK. They are therefore important in furthering the interests of citizens and consumers.

Published 25|02|13

Ofcom has made an amendment to the leased lines charge control model, which formed part of a draft statement on the Business Connectivity Market Review published on 25 February 2013. 

Details of the amendment are available here.

Introduction

1.1 This Statement sets out decisions designed to address concerns we have identified about the extent of competition in the provision of leased lines in the UK1 .

1.2 Leased lines provide dedicated symmetric transmission capacity between fixed locations, and their overall value exceeds 2bn per annum in the UK. They play an important role in business communications services and are used to support a wide variety of applications, both in the private and public sectors. They also play a significant role in delivering fixed and mobile broadband services to consumers, because communications providers (CPs) use them extensively in their networks.

1.3 BT remains by far the largest wholesale supplier of leased lines in the UK. For illustrative purposes, if we consider all wholesale circuits, we estimate that BT has a share of 82% of volumes. The majority of CPs remain reliant on BT's network in providing services to their customers.

1.4 Our decisions are designed to promote competition in the provision of leased lines and the services which use them, and will affect the availability, choice, price, quality and value for money of data-transfer services throughout the UK. They are therefore important in furthering the interests of citizens and consumers.

Research on Very High Bandwidth Connectivity - A report for Ofcom by CSMG PDF, 803.9 KB

Business Connectivity Market Review - Draft Statement (part 1)  PDF, 3.0 MB

Business Connectivity Market Review - Draft Statement (part 2) PDF, 3.0 MB

Business Connectivity Market Review - Draft Statement (part 3) PDF, 2.8 MB

Business Connectivity Market Review - Draft Statement PDF, 3.0 MB

Published 28|03|13

This Statement sets out decisions designed to address concerns we have identified about the extent of competition in the provision of leased lines in the UK.

Leased lines provide dedicated symmetric transmission capacity between fixed locations, and their overall value exceeds £2bn per annum in the UK. They play an important role in business communications services and are used to support a wide variety of applications, both in the private and public sectors. They also play a significant role in delivering fixed and mobile broadband services to consumers, because communications providers (CPs) use them extensively in their networks.

BT remains by far the largest wholesale supplier of leased lines in the UK. For illustrative purposes, if we consider all wholesale circuits, we estimate that BT has a share of 82% of volumes. The majority of CPs remain reliant on BT's network in providing services to their customers.

Our decisions are designed to promote competition in the provision of leased lines and the services which use them, and will affect the availability, choice, price, quality and value for money of data-transfer services throughout the UK. They are therefore important in furthering the interests of citizens and consumers.

Correction published 16 May 2013 – For details see legal notification and explanatory text. PDF, 43.4 KB


Business Connectivity Market Review - Sections 1 - 4 PDF, 1.8 MB

Business Connectivity Market Review - Section 5 PDF, 3.7 MB

Business Connectivity Market Review - Sections 6-7 PDF, 2.5 MB

Business Connectivity Market Review - Sections 8-16 PDF, 1.9 MB

Business Connectivity Market Review - Sections 17-24 PDF, 1.6 MB

BCMR Final Statement: Annexes 1 - 7 PDF, 1.5 MB

BCMR Final statement: Annexes 8 - 17 PDF, 2.1 MB

Research on Very High Bandwidth Connectivity - A report for Ofcom by CSMG PDF, 803.9 KB

Review of Network Reach and Service Share models - A report for Ofcom by Ernst and Young PDF, 302.6 KB

Estimate of BT's Equity Beta - A report for Ofcom by The Brattle Group PDF, 2.2 MB

Leased Line Charge Control - Review of regulation models - A report for Ofcom by Ernst and Young PDF, 186.7 KB

An 'empty model' - a fully redacted version including all model functionality.A non-confidential version of the populated model with functionality removed - to request a copy of the model populated with that proportion of the data which is not commercially confidential please e-mail us at LLCC2013@ofcom.org.uk

Ernst and Young's review of the financial model PDF, 186.7 KB

Correction to Ofcom's Statement entitled ‘Business Connectivity Market Review PDF, 43.4 KB


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