Ofcom on missed Openreach targets: you’ve been a very naughty boy
Regulator Ofcom reacted this week by announcing that Openreach,which has an effective monopoly over last mile fixed access, has agreed new targets for service, and may pay fines if it misses deadlines.
The news will be welcomed by communications providers (CPs), but the terms are not onerous. The deal comes into full force only from April 2016, by which time Openreach should have largely finished providing fibre to its street cabinets to handle GPON for next generation broadband.
The new targets cover “wholesale line rental” and “metal path facility”, the two most common products Openreach provides to resellers, says Ofcom. They include 80% of repairs completed within two working days, 80% of new lines provided within 12 working days, and realistic estimates of when customers can expect the service they ordered.
Failing to meet the new targets, averaged over 12 months, opens Openreach to Ofcom sanctions, including fines. However Ofcom proposes that BT can use “extreme weather” as an excuse for missing targets for up to three per cent of repairs and one per cent of new installations in a “typical” year.
In a statement the regulator said, “Ofcom is concerned about the time it can take for Openreach to complete this work. The problem was most acute during 2012, when installations and repairs were to some extent hampered by extremely wet weather conditions.”
According to Ofcom, Openreach’s performance has since returned to pre-2012 levels.
Walter Wilcox, spokesman for the Surrey village of Ewhurst, which had an independent deal with Vtesse Networks for a fibre network “gazumped” by BT, reports, “Ewhurst (has been) without VDSL for 80 days due to inadequate equipment provision. (It has taken) 22 days to repair storm damage on eight lines at two locations.”
Ofcom also appears to be asking Openreach customers to pick up the cost of meeting the new targets. “Any increase in charges resulting from the changes would be at wholesale level, and estimated by Ofcom to be in the order of a few pennies per month. Telecoms bills have fallen in real terms over the past 10 years, and Ofcom wishes to ensure that services remain competitive and affordable for consumers.”
The proposals are part of a consultation relating to Ofcom’s fixed access market review, which closes on 13 February 2014. Ofcom will announce its decisions in spring 2014.