By: Russ
Yves Blondeel on the BT-Ofcom settlement
OfcomWatcher Yves Blondeel outlines some of the key differences between Ofcom’s initial proposed settlement with BT and the final settlement announced by Ofcom yesterday:
* The undertakings now make it clearer that ‘openreach’ is expected to be the primary sales channel for its own products, and that it may only sell to communications providers, not to end-users. Similarly, the role of BT Wholesale has been clarified.
* The ‘chinese wall’ provisions between ‘openreach’ and BT Group plc have been modified and now include a number of additional conditions. For example, no employee of ‘openreach’ may share customer confidential information with any other part of BT or attempt to influence commercial policy. The ‘chinese walls’ within BT Wholesale similarly contain a number of additional conditions.
* The undertakings now make it clear that communications providers can use ‘openreach�s’ backhaul products in a number of different ways.
* The undertakings now make it clear that, should BT wish to develop a replacement for the Wholesale Line Rental product (which is based on access to Multiple Service Access Nodes), then Ofcom and BT should first agree what (if any) inputs to that product should be made available on an equivalent basis to other communications providers.
* In the June undertakings the provision of Partial Private Circuits (leased line interconnection terminating segments) was effectively split between ‘openreach’ and BT Wholesale. ‘openreach’ will manage two new products: a �traditional interface leased line access product�, and a �traditional interface leased line backhaul product�. The costs attributable to these new products will form part of the cost stack for BT�s PPC product. These new products are intended to allow other operators to replicate commercially, from the point of view of their use of these new products, relevant Partial Private Circuits.
* The undertakings provide more detail on the basis of the preparation of ‘openreach�s’ management accounts.
Stay tuned, folks…
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