Feeds

Openreach reaching for more cash

Ofcom consults on increased loop pricing

Boost IT visibility and business value

Ofcom has opened a second consultation on increasing the amount that BT Openreach, the company that manages the UK's telephony infrastructure, can charge for access to phone lines.

Back in 2006, when BT Openreach was set up, Ofcom agreed caps on the amount that the company could charge for access to the network. But those original prices made no allowance for inflation or other changes in operating costs. Ofcom has already had one consultation and decided, on the back of that, to increase prices. The question now is by how much?

BT Openreach was created following an agreement with Ofcom to set up a separate concern for management of the UK's telecommunications infrastructure - most of which was built while BT held a monopoly. Openreach manages the exchanges and physical copper (and aluminium, for the less fortunate) in the ground, which can then be leased by third parties who want to provide broadband access to end customers, including BT.

Lines can be fully unbundled, where a third party runs every service run over the line, or "shared unbundled", where only ADSL broadband is provided by the third party and the end customer needs to have two contracts in place. Ofcom has proposed increasing the annual cap on fully unbundled lines to something between £85 and £91, from £81.69 at the moment, while shared lines could rise to £16.20 from the current £15.60.

This isn't nearly as much as Openreach wanted, but is less than competitors argued for - Ofcom seems to have managed to annoy everyone equally, which must bode well. The regulator has also mapped out charges for the following four years, as well as explaining their methodology in detail (pdf).

Responses to the proposal should be with Ofcom by February 20 next year, with the new prices likely to come into effect by April 1. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
NBN Co claims 96 mbps download speeds for FTTN trial
Umina trial also delivers 30 mbps uploads, but exact rig used not revealed
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
Google's so smart it's discovered SHARKS HAVE TEETH
Congratulations, world media, for rediscovering submarine cable armour
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?