{"id":13764,"date":"2017-04-10T13:28:35","date_gmt":"2017-04-10T12:28:35","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=13764"},"modified":"2017-04-11T14:57:33","modified_gmt":"2017-04-11T13:57:33","slug":"isp-talktalk-business-adopt-bt-openreach-dark-fibre-cma-ruling","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2017\/04\/isp-talktalk-business-adopt-bt-openreach-dark-fibre-cma-ruling.html","title":{"rendered":"UPD ISP TalkTalk Business Adopt BT Openreach Dark Fibre After CMA Ruling"},"content":{"rendered":"<p>UK Internet provider <a title=\"TalkTalk Business\" href=\"http:\/\/www.awin1.com\/awclick.php?mid=5865&amp;id=110483\" target=\"_blank\">TalkTalk Business<\/a> has today confirmed that they will be one of the first ISPs to adopt <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a>&#8217;s (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>) proposed &#8216;<em>Dark Fibre Access<\/em>&#8216; product, which follows a key ruling by the <a href=\"https:\/\/www.gov.uk\/government\/organisations\/competition-and-markets-authority\" target=\"_blank\">Competition and Markets Authority<\/a> (CMA) that will affect how the service is priced.<!--more--><\/p>\n<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> has been pushing for DFA since early 2016 because they see the so-called &#8220;<em>Passive Remedy<\/em>&#8221; as a way of delivering both more market competition and helping to speed-up the deployment of faster broadband services around the UK (e.g. backhaul capacity to support new networks).<\/p>\n<p>Essentially DFA gives rival ISPs &#8220;<em>physical access<\/em>&#8221; to <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a>&#8217;s fibre optic cables (i.e. allows them to &#8220;<em>take direct control of the connection<\/em>&#8220;), which means that they can then install their own equipment at either end of the optical fibre within <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a>&#8217;s cable ducts.<\/p>\n<p>Providers like <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a> may be able to benefit from this, although big infrastructure builders like <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vm\" rel=\"nofollow\" target=\"_blank\">Virgin Media<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">Cityfibre<\/a> and the Zayo Group fear that it will discourage operators from investing to build their own fibre optic networks (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/11\/bt-openreach-publish-final-dark-fibre-reference-offer-isps.html\">here<\/a>). Never the less Openreach has reluctantly been constructing a DFA solution since last year (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/11\/bt-openreach-publish-final-dark-fibre-reference-offer-isps.html\">here<\/a>) and the first trials are due to take place from <strong>August 2017<\/strong> (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2017\/01\/bt-openreach-sets-uk-isp-dark-fibre-access-trial-august-2017.html\">here<\/a>) in London, Birmingham, Manchester and Liverpool.<\/p>\n<p>However <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a> complained that the initial model proposed by <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> had not taken into account the impact that <strong>non-domestic rates<\/strong> (business rates) would have on DFA. <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a> is currently responsible for the non-domestic rates payable on standard Ethernet lines, but under DFA any ISP that took the new service would take on the responsibility and that&#8217;s a problem because smaller ISPs pay a higher rate.<\/p>\n<p>Today the CMA has upheld <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>&#8217;s appeal and ruled that CPs&#8217; higher non-domestic rates need to be taken into consideration when setting the wholesale price, which could in theory make the service a little bit cheaper.<\/p>\n<blockquote class=\"bq1\"><p><strong>Richard Thompson, TalkTalk Business\u2019 Commercial Director, said:<\/strong><\/p>\n<p>&#8220;We are pleased that the CMA has recognised that BT\u2019s wholesale dark fibre price needs to be adjusted to ensure that it becomes the cost-effective alternative it was originally intended to be.<\/p>\n<p>Whilst there is still much to be agreed, we are very excited about the opportunities dark fibre will bring to increasingly data-hungry businesses, and we\u2019re looking forward to being able to unveil our plans for giving our customers access to the great value, high performance connectivity they\u2019re crying out for.&#8221;<\/p><\/blockquote>\n<p>The ISP claims to be &#8220;<em>incredibly excited about the opportunities dark fibre will bring to increasingly data-hungry businesses<\/em>&#8221; and they intended to unveil more information about their DFA plans &#8220;<em>over the coming months<\/em>,&#8221; although this solution is more intended to benefit business than home connections (some of it might also seep down to consumers).<\/p>\n<p>The current DFA product is based off Openreach&#8217;s 1Gbps capable <strong>Ethernet Access Direct<\/strong> (EAD) service, albeit with the ISPs own kit on each end of the cable and with many of the same caveats (distance limits, main link charges etc.). At present it feels a bit niche but on the other hand this is a new market for Openreach and time will tell whether or not it delivers the sort of change that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> desires.<\/p>\n<p><u>NOTE:<\/u> It\u2019s important not to confuse DFA with Ofcom\u2019s wholesale <a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/02\/a-closer-look-at-ofcoms-proposed-bt-openreach-duct-and-pole-access-fix.html\"><strong>Duct and Pole Access <\/strong><\/a>(DPA) remedy, which will give rivals access to install their own cables via Openreach\u2019s underground cable ducts and telegraph poles (i.e. two different sides of the same coin). <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">Cityfibre<\/a> and others welcome DPA, even if a few of them have had trouble using it (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/05\/challenges-cityfibre-moot-using-bt-cable-ducts-southend-sea.html\">here<\/a> and <a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/08\/vodafone-uk-moots-building-fibre-optic-broadband-network.html\">here<\/a>).<\/p>\n<p><strong>UPDATE 11th April 2017<\/strong><\/p>\n<p>Ofcom has today proposed an amendment to their related regulation (<a href=\"https:\/\/www.ofcom.org.uk\/__data\/assets\/pdf_file\/0024\/100698\/non-domestic-rates-dark-fibre-consultation.pdf\" target=\"_blank\">here<\/a>), which is open for consultation until 22nd May 2017. The regulator estimates that the &#8220;<em>total impact of these changes will be in the order of \u00a35m, or around 1% of the total allowed costs in the [Leased Line Charge Control] in 2018\/19<\/em>.&#8221;<\/p>\n<p>Ofcom added that they expected BT to implement the change before DFA is formally introduced from October 2017. We should add that BT are also appealing via the CMA against some of Ofcom&#8217;s DFA related measures and an outcome on that is due soon. A similar appeal by <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">Cityfibre<\/a> was recently rejected.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK Internet provider TalkTalk Business has today confirmed that they will be one of the first ISPs to adopt Openreach&#8217;s (BT) proposed &#8216;Dark Fibre Access&#8216; product, which follows a key ruling by the Competition and Markets Authority (CMA) that will affect how the service is priced.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,472,478,52,36,69,74],"class_list":["post-13764","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-bt","tag-business","tag-ethernet","tag-fibre-optic","tag-ofcom-regulation","tag-bt-openreach","tag-talktalk"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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