
Ofcom plans to make switching cheaper, reduce minimum contract length
Separate measures to improve installation and repair times for customers
Ofcom has today proposed new measures to promote competition among superfast broadband providers, as part of a major review of wholesale telecoms services.
Under proposals for consultation, the wholesale cost of switching a customer from one superfast broadband supplier to another would fall by up to 80%. In addition, the minimum length of the wholesale contract between BT and the switched customer's new supplier would be reduced from a year to just one month.
The proposals are designed to promote competition in the superfast broadband market at the wholesale level. These would be expected to flow through to consumer benefits in the form of lower retail prices and easier switching between superfast broadband providers.
Ofcom is also consulting on ways to ensure that the performance of BT's network access division, Openreach, is maintained at acceptable levels. Openreach installs and maintains connections to BT's network on behalf of competing telecoms providers.
These proposals are intended to establish clear targets for fault repairs and the installation of new lines for the millions of telephone and broadband users who rely indirectly on Openreach.
The measures form part of Ofcom's Fixed Access Market Reviews, a wide-ranging consultation on the wholesale telecoms markets used by a range of companies to offer telephone and broadband services to UK consumers1.
New rules on superfast broadband
Different broadband providers can retail their own superfast services over BT's network under a process known as virtual unbundled local access' (VULA), which Ofcom introduced in 2010. At that time, there were fewer than 100,000 superfast broadband connections on the BT network. By last year that number had risen to 1.4m,2 and take-up is expected to increase further over the coming years.
Currently, if a consumer wishes to change to a superfast broadband provider, the company they are switching to must pay a £50 fee to Openreach a charge which is often passed on to the customer. Ofcom is proposing to cut the switching fee to between £10 and £15 and, where an existing superfast customer switches, to reduce the minimum length of the wholesale contract between BT and the new supplier from a year to one month providing flexibility to allow telecoms providers to offer shorter-term contracts.
Today's consultation proposes not to set controls on the wholesale price of VULA. Ofcom believes the price of fibre broadband is currently constrained by the availability of standard broadband services, and by competition from Virgin Media's superfast cable network. Ofcom is also concerned not to undermine the investment case for rolling out fibre. Instead, Ofcom proposes to maintain a requirement that BT's charges for access to its fibre network are fair and reasonable.
Speeding up installations and repairs
Communications providers rely on Openreach to install new lines and repair faults on BT's network. Some operators have expressed concern about the time it can take for Openreach to complete this work at their customers' premises. These concerns were most acute during 2012, when Openreach's performance was to some extent hampered by extremely wet weather conditions.
Openreach's performance has since returned to pre-2012 levels3. However, Ofcom wishes to ensure that its performance remains at an acceptable standard.
Today's review therefore proposes to require Openreach to meet specific performance standards for new line installations and fault repairs4. Sanctions may apply if performance falls below these new standards.
Ofcom is also proposing, among other measures, to strengthen reporting requirements on Openreach to make it clear how well the company is performing. Ofcom will monitor the service Openreach provides to BT Retail, relative to its other wholesale customers.
Maintaining healthy competition
The Fixed Access Market Reviews consider other aspects of wholesale local access' the fixed connection that runs between the customer's premises and their local telephone exchange.
Today's consultation proposes broadly to maintain the current regulatory framework, including requirements on BT to offer various wholesale communications products to other providers on a fair, reasonable and non-discriminatory basis.
Next steps
Ofcom will later this month issue a further consultation on its approach for setting any future charge controls on wholesale line rental' products which allow competing providers to offer a telephone service over BT's network and local loop unbundling' products, where providers install their own equipment in an exchange to offer telephony and broadband over BT's lines.
Ofcom will also shortly consult on its proposals for wholesale broadband access, including what regulation should apply in different geographic markets. We expect to publish our conclusions on all these reviews in spring 2014.
Today's consultation on the Fixed Access Market Reviews closes on 25 September 2013.
ENDS
NOTES FOR EDITORS
The conclusions of the Fixed Access Market Reviews will apply for the period April 2014 to March 2017.
Source: Ofcom, Communications Market Reports 2010 and 2012.
For example, the average lead time for a new line installation is currently around nine days according to the Office of the Telecoms Adjudicator, the body which monitors Openreach's performance.
Openreach would be required to meet the service levels it has agreed with its customers for new line installations and fault repairs in a specified percentage of cases. Ofcom will consult on appropriate percentage thresholds to apply.
Most recent headlines
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
01/05/2025
NEW YORK LiveNow From Fox, Fox Television Stations' national news streaming service, has released viewing data showing the first quarter was the best quarte...
01/05/2025
The global installed base of Smart TVs and Connected TV (CTV) devices will reach 4.2 billion units by 2030, growing at a CAGR of 9.6% from 2.65 billion in 2025,...
01/05/2025
Samsung TV Plus has announced that it is expanding its existing lineup of more than 50 sports channels with five new free, ad-supported streaming television (FA...
01/05/2025
MELBOURNE, Fla. Carlo DiMarco has joined USSI Global as vice president of strategic marketing and growth, with responsibility for strategic business development...
01/05/2025
WASHINGTON The NAB has filed a wide-ranging rebuttal to proposals by the pay TV industry that the FCC delete and/or significantly change rules governing retrans...
01/05/2025
WASHINGTON The Corporation for Public Broadcasting has filed a lawsuit to stop the Trump administration from firing three of its board members, claiming the pre...
01/05/2025
HONG KONG Riedel Communications today said it has opened a new office in Hong Kong, enhancing its presence in the Asia-Pacific region....
01/05/2025
MUMBAI, India & BALTIMORE In a development that could advance efforts to bring NextGen TV to cellphones, FreeStream Technologies, Lava International and HMD hav...
01/05/2025
01 05 2025 - Media release Screen Australia empowers 100 distinctive Australian narratives
All The Boys Are Here writer/director Goran Stolevski and It s All...
01/05/2025
How PFX Delivered 750 VFX Shots in Just Four Months For Anthony Hopkins Thriller...
01/05/2025
Careline's New Wave Makeup Commercial Shot With URSA Cine 12K LF
Brie Clayton May 1, 2025
0 Comments
CAD Studios relies on large format, full fram...
01/05/2025
Stream all episodes ofLook Who's Hangry from April 29
An RT Player Original in partnership with Heinz...
01/05/2025
Here is your host, Patrick Kielty!
T naiste, Minister for Foreign Affairs and T...
01/05/2025
Exclusive interviews and un-seen footage feature in new two-part series...
01/05/2025
May brings more than just rainbows and sunshine - it's also time for fresh adventures and epic battles. This GFN Thursday spotlights 20 can't-miss games...
01/05/2025
RT Investigates reveals details of Christian Brothers who were senior leaders a...
01/05/2025
RT Statement
The Enterprise Resource Planning (ERP) project is one of the projects that was funded from the proceeds of RT 's land sale in 2017, the init...
01/05/2025
Watch our promo: RT Supporting the Arts | What's on
This May, RT is delighted to support Bealtaine Festival, Fastnet Film Festival, and Dublin Dance Fest...
01/05/2025
For Nicolas Simon, advancing the field of robotics is a personal mission that could change his siblings' lives.
Two-thirds of Simon's family members us...
30/04/2025
Film elements held at the Deluxe warehouse in March of 2015. Photo by Luis Silva...
30/04/2025
EA SPORTS FC 25 fans in Australia and Saudi Arabia, get ready to immerse yourselves in the beautiful game like never before. Spotify is excited to announce a n...
30/04/2025
The past year has been nothing short of a whirlwind for Tucker Wetmore. After th...
30/04/2025
Mexico's love for podcasts is no longer a trend-it's a lifestyle. With m...
30/04/2025
Slam poet Huda the Goddess wins 2025 Les Murray Award
30 April, 2025
Media releases
Australia for UNHCR and SBS are proud to announce that Huda Fadlelmawla...
30/04/2025
SBS, NITV and NIDA partner to empower the next generation of screen creatives
30 April, 2025
Media releases
SBS, National Indigenous Television (NITV) and ...
30/04/2025
By Joyce JC Cataldo
The media and entertainment industry is evolving faster than ever. Technology is shifting the way we create, distribute, and experience c...
30/04/2025
An image of Valencia, Spain, in the OneAtlas Living Library...
30/04/2025
NEWPORT BEACH, Calif. WPSD-TV, the NBC affiliate in Paducah, Ky., has selected Bitcentral's Central Control playout system to upgrade the station's mast...
30/04/2025
AMSTERDAM Zero Density, a global provider of virtual studio productions and on-air graphics, has appointed Baris Zavaroglu as its new CEO. Zavaroglu succeeds Of...
30/04/2025
The Avit Group, a forward-thinking audio-visual technology company, is bringing over 50 years of combined experience in delivering audio-visual design and insta...
30/04/2025
NXTGENbps will be showcasing its latest sustainable battery power solutions at this year's Media Production & Technology Show (MPTS), appearing alongside pa...
30/04/2025
Van Dyke skates and operates on Shoresy | photo by Dave Ferguson
Toronto-based Cinematographer Brett Van Dyke (Heartland, Jann, Carter) stepped into the rink...
30/04/2025
Leading provider of media playout solutions PlayBox Neo will exhibit a vast array of significant upgrades to its range of smart media innovations at CABSAT from...
30/04/2025
ITV Studios is renowned for its award-winning productions, including the reality TV phenomenon I'm a Celebrity Get Me Out of Here! Produced by Lifted Ente...
30/04/2025
The UK's presence at this year's CABSAT brings together 20 innovative companies under the GREAT Britain and Northern Ireland banner. From advanced infra...
30/04/2025
Lightware continues to strengthen its Environmental, Social, and Governance (ESG) initiatives by fostering diversity, inclusion, and community engagement within...
30/04/2025
LiveU is demonstrating for the first time in the UK, its revolutionary technological breakthrough in IP-video transport, LiveU IQ (LIQ ) and bringing its expand...
30/04/2025
Stand: A40
Calrec has been putting sound in the picture for more than six decades and is still pushing the boundaries of audio broadcasting with a full range o...
30/04/2025
Buckinghamshire New University (BNU) has opened its new virtual production studio, designed and integrated by CJP Broadcast. The installation equips students wi...
30/04/2025
Independent news producer in India focuses on delivering stories
nxtedition has supplied a complete newsroom system to Collective Newsroom, based in New Delhi,...
30/04/2025
Connecting the present, building the future
FOR-A, a cutting-edge video broadcast technology company backed by more than 50 years experience, will showcase it...
30/04/2025
DAD by NTP Technology reports a successful NAB Show in Las Vegas where the company focused on upcoming expansion options in development for its Thunder | Core a...
30/04/2025
CVP and Canon UK & Ireland are proud to announce the winning projects from the third annual Stories in Motion Young Filmmakers Awards, which took place on the e...
30/04/2025
Leading video software provider, Synamedia, today announced that beIN MEDIA GROUP ( beIN'), one of the foremost global sports and entertainment broadcasters...
30/04/2025
The Canadian Premier League (CPL) today launched a new-look website and app, offering supporters of Canada's men's domestic professional soccer league a...
30/04/2025
WASHINGTON In a wide-ranging press conference, Federal Communications Commission Chair Brendan Carr had both good and bad news for broadcasters, stressing that ...
30/04/2025
TORONTO Cignal TV is relying on Quickplay's Shorts tool for its recently launched Pilipinas Live Shorts service, available to millions of users of Pilipinas...
30/04/2025
NEW YORK Steve Lanzano will retire as president and CEO of the Television Bureau of Advertising at year-end, the group said....
30/04/2025
The news production tech provider nxtedition is reporting that it supplied a complete newsroom system to Collective Newsroom, an independent news producer based...