BT Openreach, which must ensure that all rival UK ISPs have equality of access to BT's local network, has today announced its first draft prices for allowing other network operators access into its cable ducts and telegraph poles. The move should make it easier for other providers to deploy new fibre optic based superfast broadband services around the country, especially in rural areas.

The communications regulator, Ofcom UK, required BT to issue a draft Reference Offer (RO) for its cable duct and (telegraph) pole access - Physical Infrastructure Access (PIA) - last October 2010. This formed an essential was part of the regulators Review of the Wholesale Local Access Market (here).

However, at present the proposed pricing is merely a first draft and a further industry consultation is planned, together with a trial of the products and process, to test the changes. The commercial launch of BT's new service is currently expected in summer 2011.


BT claims that the actual pricing of its duct sharing product is 15% below the average and compares very favourably with similar solutions offered in other European markets (e.g. France, Spain, Portugal and Germany). The price for ISPs renting space in its underground ducts will be from £0.95 per metre (per annum). A range of ancillary services and prices will also apply.

Openreach is also proposing an indicative pole sharing price of £21.00 per pole attachment, although it acknowledges that in this area there is very limited international precedent for comparison. In addition to the proposed duct and pole sharing products, BT Openreach also offers the following services:

Current BTOpenreach NGA Services and Changes
* Generic Ethernet Access (GEA). This is the mainstream fibre access product offered by Openreach which is the fibre equivalent of LLU. The Fibre-to-the-Cabinet (FTTC) variant of the service is currently available to all communications providers, while the Fibre-to-the-Premises (FTTP) variant is being trialled with a view to launching the product during 2011.

* Sub Loop Unbundling (SLU). This is where Openreach provides a communications company with access to a partial local copper loop. The communications provider can then place equipment in their own cabinet near the Openreach cabinet to deliver super-fast fibre broadband speeds to their customers.

* Communications providers can also opt to buy the FTTC variant of Wholesale Broadband Connect (WBC) from BT Wholesale. BT Wholesale is also trialling a FTTP variant of WBC, with a view to launching the product during 2011. Whilst Openreach expects GEA – its mainstream fibre access product - to form the basis of most communications providers’ fibre offerings, duct and pole sharing may also play a role in further extending the availability of fibre broadband services across the UK, particularly within the context of the government organised tenders aimed at bringing faster broadband speeds to rural areas.

However, BT warns that it will seek for any ISP taking its PIA product to also open-up their own ducts and poles to other operators (albeit not during the trial), which is NOT presently an Ofcom requirement. In fairness, it's easy to see why BT might be angry if Virgin Media used its ducts and poles without allowing a reciprocal exchange.

It should however be said that the government's £830m (until 2017) Broadband Deliver UK (BDUK) fund does push for operators who use tax-payers cash to ensure that their services are available on a wholesale basis.

Ofcom does not plan to look at forcing other ISPs into opening up their infrastructure until after the new EU Communications Framework has been implemented in the UK by May 2011. This could present some problems for smaller operators and put their tight economic models under pressure. It remains to be seen how Ofcom will view BT's stance, although smaller ISPs are unlikely to be happy.