News
U.K. incumbent ordered to speed up installations, cut wholesale prices, provide dark fibre access.
Ofcom on Thursday issued a final statement confirming new rules designed to improve BT’s performance when it comes to installing and wholesaling high-speed leased lines.
The regulations are in line with the draft proposals set out in March, but have now received the rubber stamp of approval from the European Commission.
Under the new rules, by the end of March 2017, BT will have to fulfil leased line orders within 46 working days, and within 40 days from the end of March 2018. It must also complete 80% of orders by the fulfilment date promised to the customer from the end of March 2017. That target will increase to 90% from April 2018.
The U.K. incumbent must also reduce the wholesale cost of high-speed Ethernet lines by 12% initially, followed by a cap of 13.5% below inflation for three years.
For narrowband lines with speeds of up to 8 Mbps, Ofcom has imposed an initial wholesale price reduction of 7.5%, less than the 9% originally proposed, followed by a cap of 3.5% below inflation, also for three years.
BT is also required to provide dark fibre access to rival telcos. The telco must publish a draft reference offer covering pricing, and terms and conditions by 1 September, followed by a final reference offer by 1 December, with a view to launching dark fibre access from 1 October 2017.
Access would only be required in areas of the country where BT has been found to have significant market power (SMP), which is everywhere apart from Central London and Hull, which is served primarily by KCom.
BT is firmly opposed to providing dark fibre access; it has previously warned that doing so will add cost and complexity to way U.K. businesses are served.
It therefore remains to be seen whether BT will come quietly with its dark fibre offer, or will end up having the terms imposed on it by Ofcom.
