Fixed access market reviews: Openreach quality of service and approach to setting LLU and WLR Charge Controls

In July 2013, Ofcom published two consultations setting out proposals as part of the fixed access market reviews (FAMR).

The first consultation (the July 2013 FAMR Consultation) set out proposed market definition findings, market power determinations and remedies. The proposed remedies included proposals in relation to the imposition of a new minimum standard condition for Openreach's quality of service and charge controls for local loop unbundling (LLU) and wholesale line rental (WLR) services. The second (the July 2013 Consultation) set out specific charge control proposals, including the nature, form and duration of the proposed charge controls for LLU and WLR services. In those consultations we said that we would consult further on the level of any minimum service quality standards, service level cost differentials and fault rates. We also said that we would conduct further work to understand the appropriate allocation of broadband line testing faults.

This consultation seeks stakeholder views on our analysis and proposals in relation to:

• minimum standards for provisioning and fault repair for LLU and WLR services;
• the differential in costs associated with delivering LLU and WLR services to Service Level 1 and Service Level 2;
• the treatment of fault rates in the charge controls; and
• a number of other changes and updates to our proposals for charge controls on LLU and WLR services in light of Ofcom's further work and responses to our July 2013 Consultation. These include changes to our charge control design, cost allocations and modelling proposals.

We do not repeat in this document the description or reasoning relating to the full set of July 2013 Consultation proposals. Instead we focus on those areas in which we have revised our proposals or introduced new proposals.

In forming the proposals set out in this consultation, we have taken account of stakeholder responses to the July 2013 Consultation and the July 2013 FAMR Consultation. We have also considered and had regard to, where relevant, the Competition Commission's Determination of 27 March 2013 (the Determination) following appeals brought against the current LLU and WLR charge controls. Where stakeholder responses to the July consultations raised issues that are not the subject of this consultation these responses will be considered in our final statement on the FAMR.

Based on the policy proposals and financial modelling explained in the July 2013 Consultation and adjusted as set out in this consultation, Tables 1.1 and 1.2 below set out the revised base case and ranges for the proposed LLU and WLR charge controls (Charge Controls).

Responses

Responder name	Type
BT_Group.pdf (PDF File, 784.8 KB)	Organisation
BT_Group_-_FTI_Consulting_report_on_BT_RFS.pdf (PDF File, 517.9 KB)	Organisation
BT_Group__Deloitte_report.pdf (PDF File, 561.0 KB)	Organisation
BT_Group__Plum_report.PDF (PDF File, 578.9 KB)	Organisation
Colt.pdf (PDF File, 403.6 KB)	Organisation

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