Posted: 26th Aug, 2011 By: MarkJ
BTOpenreach, which is responsible for managing access to the local BT telecoms and broadband ISP network, has launched a new
Copper Incentive Scheme that offers a
financial reward to broadband ISPs and telecoms providers for acquiring new lines through the
restarting of stopped phone lines or the new provision process.
The operator hopes that their new scheme will "
encourage end users" to switch back to BT's phone and broadband services and away from rivals, such as Virgin Media UK. It will be applicable to
BT Wholesale Line Rental (WLR) analogue (Basic and Premium) services and or
Fully Unbundled Lines / MPF ( LLU ) lines, such as those offered via Sky Broadband and TalkTalk etc.
BTOpenreach Statement
This offer is intended to incentivise Communication Providers (CPs) to utilise lines that have previously been installed but where use has now been stopped or to provide additional lines to existing customer premises.
It is based on incremental growth net of early cancellations above a pre-determined Background Threshold run-rate and for each incremental line CPs will receive a £50 incentive payment. Start orders and new lines to a premise will be validated to ensure that there is not a current cease or stop order within the last 3 months to demonstrate genuine incremental growth.
Participating providers will also be
supplied with a list of copper telephone lines (i.e. BT's standard phone lines) that have been identified as being in a "
Stopped" state for longer than 3 months. The
offer will run for six months, although Openreach could end it after three months.
Savvy providers could conceivably use the offer to
lower the connection costs for new or returning customers, which could be risky because BT wouldn't issue the first payment for several months. Another concern will be whether or not home owners, specifically those with stopped lines on their premises, will suddenly be bombarded by heaps of new promotional letter spam for phone and broadband services.
BT hopes that the scheme will run from
22nd September 2011 but they must first seek a waiver from Ofcom to reduce the standard price notification period from 90 to 28 days.