Ofcom Opens File on Openreach

It’s not taken long for Ofcom to have its first run in with Openreach, the new ‘independent’ BT owned company delivering the last mile services. It seems that Opal Telecom has referred a case to the regulator regarding LLU issues it has with Openreach.

The Ofcom web site notes:

Opal and Openreach are in dispute over the rate charged by Openreach for migration in bulk of customer lines from CPS/WLR services to full unbundled local loops (‘full bulk migration’). In particular, Opal has claimed that the refusal by Openreach to extend the offer rate of £20 per customer line (offered for migration in bulk of customer lines to ‘shared’ loops, or ‘shared bulk migration’) to full MPF is discriminatory, in contravention of Openreach’s obligations under its Significant Market Power (“SMP”) Conditions, set following Ofcom’s review of the wholesale local access market. Following failure to resolve the matter through commercial negotiation, Opal has referred the matter to Ofcom for resolution.

Ofcom recognises that on the face of the referral, there appears to be a dispute between the parties that commercial negotiation has failed to resolve. There is also likely to be an imbalance of market power between the two parties which Ofcom will consider when resolving the dispute.

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