Important pricing news Issue 2 1 August 2013 Including EBD 1G - - PowerPoint PPT Presentation

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Important pricing news Issue 2 1 August 2013 Including EBD 1G - - PowerPoint PPT Presentation

Aug 21, 2022 14 likes •219 views

Important pricing news Issue 2 1 August 2013 Including EBD 1G Connection Charge reduction from 1 September 2013 Key changes The BCMR and LLCC have concluded. This brings great news for you including: Significant price reductions

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SLIDE 1

Important pricing news

Issue 2 1 August 2013 Including EBD 1G Connection Charge reduction from 1 September 2013

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SLIDE 2

Key changes

The BCMR and LLCC have

  • concluded. This brings great news

for you including:

  • Significant price reductions
  • Greater price certainty for the next 3 years
  • The arrival of the FlexZone (WECLA)
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SLIDE 3

The FlexZone has arrived!

  • The FlexZone is a geographic area where Openreach has more flexibility to meet need Ethernet and

Optical (WDM) connectivity needs.

  • Within the FlexZone we have greater pricing freedom for services above 1Gbit/s and the potential to

do things differently for services that are 1Gbit/s and below.

  • It covers areas of Western, Eastern and Central London and parts of Slough.
  • It is the same as the geographical area (WECLA) defined by Ofcom in their 2013 Business

Connectivity Market Review (formally defined by a list of postal sectors).

  • This area is deemed as most competitive for above 1Gbit/s Ethernet and Optical Services
  • The map below reflects the FlexZone area covered.

A circuit eligibility / postcode checker will be available soon

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SLIDE 4

FlexZone product / circuit eligibility

The FlexZone is relevant to the following Ethernet and WDM (Optical) products: Circuits are considered inside the FlexZone if they connect either:

  • Two end user sites that both fall within FlexZone postal sectors, or
  • An end user site in a FlexZone postal sector to a network node inside or outside of the FlexZone, or
  • Two network nodes where the remote end of the backhaul circuit is in a FlexZone postal sector.
  • Ethernet Access Direct (EAD)
  • Optical Spectrum Services (OSS)
  • Wholesale Extension Services (WES)
  • Wholesale End-to-End Services (WEES)
  • Ethernet Backhaul Direct (EBD)
  • Backhaul Extension Services (BES)
  • Openreach Network Backhaul Services (ONBS)
  • Backhaul Network Services (BNS)
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SLIDE 5

FlexZone versus ‘Rest of UK’

The FlexZone gives us the most freedom on Ethernet and Optical products that are above 1Gbit/s. There is also the potential in the FlexZone (compared to the rest of the UK) to do things differently for services that are 1Gbit/s and below. Ethernet up to and including 1Gbit/s Ethernet over 1Gbit/s Optical

Within the FlexZone (WECLA)

  • Can’t increase prices
  • No price control
  • No obligation to drop

prices

  • Not regulated
  • TOA pricing continues

Rest of UK

  • Price control (RPI-11.5%) applies
  • Can’t increase prices
  • We’re obliged to offer OSA/OSEA

WDM services

  • No price control
  • Prices don’t have to be cost oriented
  • Other regulatory rules apply (non-

discrimination, price publication etc)

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SLIDE 6

Price reductions

and greater certainty for the future

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SLIDE 7

The highlights

  • Up to 34% off Ethernet connection/rental
  • Decision taken to apply all price reductions to the new FlexZone too
  • 29% average reduction to Excess Construction Charges (ECCs)
  • No price increases for three years

− Applies to EAD, EBD, BES, WES, ONBS, BNS and BTL

Together offering:

  • Greater certainty over pricing levels for the future
  • Greater ability to plan ahead
  • Tangible reasons to upgrade/migrate
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SLIDE 8

Up to 34% off EAD 100Mbit/s

Product Charge type Current Price % reduction Price from 1 May 2013 EAD 100Mbit/s LA Connection Rental £1,950 £2,131

  • 25%

£1,950 £1,605 EAD 100Mbit/s Connection Rental £1,950 £3,629

  • 34%

£1,950 £2,400

What this means to you:

  • Take advantage of best ever EAD 100Mbit/s rental prices!

(Now considerably cheaper than EAD 10Mbit/s rental which itself is down 10% to £3,000)

  • Upsell existing customers from EAD10Mbit/s to 100Mbit/s (Still just £45)
  • Pricing that could help improve retention of existing customers and attract new ones
  • Clear reasons to target new customers with higher bandwidth products at competitive

price points

  • The added value of Ethernet compared to EFM becomes even greater
  • A great time to migrate your lower bandwidth WES/BES/WEES circuits to EAD.
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SLIDE 9

EAD 100Mbit/s Connection offer

Product Offer Period Current Price % reduction Rebate level EAD 100Mbit/s LA 1 June 2013 to 31 October 2013 £1,950

  • 50%

£975 EAD 100Mbit/s 1 June 2013 to 31 October 2013 £1,950

  • 50%

£975 EAD 100Mbit/s Extended Reach 1 June 2013 to 31 October 2013 £2,440

  • 50%

£1,220

  • Applies nationally (Subject to terms and conditions and survey. Excludes the Hull area)
  • Offer will apply to all orders placed between 1 June 2013 and 31 October 2013,

and installed by 31 January 2014

  • A rebate will be made against March 2014 bills
  • Cannot be used in conjunction with any other future or existing offer
  • Doesn’t apply to RO1 resilient circuits
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SLIDE 10

Up to 20% off EAD 1Gbit/s

Product Charge type Current Price % reduction Price from 1 May 2013 EAD 1Gbit/s Connection Rental £3,995 £7,779

  • 2%
  • 13%

£3,900 £6,741 EAD 1Gbit/s 5 yr Connection Rental £3,995 £6,300

  • 2%
  • 4%

£3,900 £6,048 EAD 1Gbit/s RO1 Connection Rental £7,500 £12,900

  • 7%

£7,500 £12,000 EAD 1Gbit/s RO1 5 yr Connection Rental £7,500 £9,284

  • 5%

£7,500 £8,799 EAD 1Gbit/s ER Connection Rental £5,000 £9,819

  • 20%
  • 14%

£4,000 £8,400 EAD 1Gbit/s Extended Reach 5 yr Connection Rental £5,000 £8,621

  • 20%
  • 7%

£4,000 £7,998 EAD 1Gbit/s Extended Reach RO1 Connection Rental £9,500 £16,929

  • 11%

£9,500 £15,000 EAD 1Gbit/s Extended Reach RO1 5 yr Connection Rental £9,500 £12,600

  • 6%

£9,500 £11,898

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SLIDE 11

13% off EBD 1Gbit/s Connection Charge from 1 September 2013

Product Charge type Current Price % reduction Price from 1 September 2013 EBD 1Gbit/s Band A Connection £4,575

  • 13%

£4,000 EBD 1Gbit/s Band B Connection £4,575

  • 13%

£4,000 EBD 1Gbit/s Band C Connection £4,575

  • 13%

£4,000 EBD 1Gbit/s Extended Reach Band A Connection £9,150

  • 13%

£8,000 EBD 1Gbit/s Extended Reach Band B Connection £9,150

  • 13%

£8,000 EBD 1Gbit/s Extended Reach Band C Connection £9,150

  • 13%

£8,000

On 1 August 2013 Openreach announced that the EBD 1Gbit/s Connection charge would be reduced by 13% from 1 September 2013.

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SLIDE 12

Up to 21% off EBD 10Gbit/s

Product Charge type Current Price % reduction Price from 1 May 2013 EBD 10Gbit/s Band A Connection Rental £14,000 £30,400

  • 21%

£14,000 £24,000 EBD 10Gbit/s Band B Connection Rental £14,000 £36,045

  • 21%

£14,000 £28,473 EBD 10Gbit/s Band C Connection Rental £14,000 £52,542

  • 21%

£14,000 £41,505 EBD 10Gbit/s Extended Reach Band A Connection Rental £28,000 £60,800

  • 21%

£28,000 £48,000 EBD 10Gbit/s Extended Reach Band B Connection Rental £28,000 £66,445

  • 21%

£28,000 £52,473 EBD 10Gbit/s Extended Reach Band C Connection Rental £28,000 £82,942

  • 21%

£28,000 £65,505

  • Great news for LLU operators who are keen to offer greater value to their end users
  • Benefit from lower rental charges when you choose EBD instead of BES
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SLIDE 13

ECCs reduced by 29% on average (1)

Product Current Price % reduction Price from 1 April 2013 Survey Fee £350

  • 28%

£252.40 Drilling each external wall £330

  • 29%

£253.37 Drilling each internal wall non concrete £60

  • 28%

£43.06 Drilling each internal wall concrete £200

  • 30%

£142.22 Cable installed into duct, buried or installed on poles including any jointing required per metre £7.50

  • 41%

£4.40 Blown Fibre per metre £4.00

  • 23%

£3.10 Blown Fibre tubing in duct per metre £3.50

  • 20%

£2.80 Internal cabling (including internal blown fibre tubing) per metre £8.00

  • 38%

£5.00

Where Excess Construction Charges (ECCs) are required these price reductions (ranging from 7% to 50%) will significantly reduce the overall cost

  • f new circuit provision.
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SLIDE 14

ECC price reductions (2)

Product Current Price % reduction Price from 1 April 2013 New ductwork (including wayleave costs)

  • Under soft surface per metre

£35.00

  • 43%

£20.03

  • Under foot way per metre

£80.00

  • 50%

£40.06

  • Under carriage way or roads per metre

£140.00

  • 43%

£80.12 Trunking & traywork within customer’s cartilage per metre £40.00

  • 27%

£29.04 New footway box small (surface area up to 0.5 sqm) £750.00

  • 7%

£696.12 New footway box medium (surface area between 0.5 and 1 sqm) £1,650.00

  • 7%

£1,532.47 New footway box large (surface area greater than 1 sqm) £2,850.00

  • 7%

£2,654.28

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SLIDE 15

ECC price reductions (3)

Product Current Price % reduction Price from 1 April 2013 Provision of a Small carriageway box (surface area up to 1sqm) £3,150.00

  • 22%

£2,453.96 Provision of a medium carriageway box (surface area between 1 and 1.25 sqm) £3,850.00

  • 22%

£3,004.84 Provision of a large carriageway box (surface area above 1.25 sqm) £4,400.00

  • 22%

£3,435.54 Weighted average ECC reduction

  • 29%
  • ECCs apply to approximately a third of customers circuits
  • Where ECCs are required this will significantly reduce the overall cost of new circuit

provision

  • New ECC prices will come into effect from 1 April 2013.
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SLIDE 16

Up to 22% off WES Aggregation

WES Aggregation Product Charge type Current Price % reduction Price from 1 May 2013 WES Aggregation 10Mbit/s Access Connection Rental £2,750 £1,258

  • 20%

£2,750 £1,050 WES Aggregation 100Mbit/s Access Connection Rental £2,750 £2,566

  • 22%

£2,750 £2,010

Prices are per end

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SLIDE 17

Up to 25% off WES/WEES rental

Product Charge type Current Price % reduction Price from 1 May 2013 WES/WEES 10Mbit/s LR Connection Rental £780 £1,710

  • 6%

£780 £1,599 WES/WEES 10Mbit/s Unmanaged Connection Rental £780 £1,601

  • 3%

£780 £1,548 WES/WEES 10Mbit/s Managed Connection Rental £780 £1,772

  • 10%

£975 £1,599 WES/WEES 100Mbit/s Connection Rental £975 £2,130

  • 25%

£975 £1,599 WES/WEES 155Mbit/s Connection Rental £4,500 £4,287

  • 18%

£4,500 £3,501 WES/WEES 622Mbit/s Connection Rental £5,200 £4,659

  • 18%

£5,200 £3,801 WES/WEES 1Gbit/s LAN/SAN Connection Rental £1,998 £4,530

  • 3%

£1,998 £4,299 WES/WEES 1Gbit/s Extended Reach Connection Rental £2,500 £5,631

  • 15%

£2,500 £4,800

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SLIDE 18

And finally......

EAD 10Mbit/s price reduction

  • The rental charge of the EAD10Mbit/s product will decrease by 10% to £3,000.
  • There is no change on the EAD 10Mbit/s LA or resilient variants.

Bulk Transport Link charge reductions

  • Bulk Transport Link (BTL) charges for the one year term products will be reduced by 8.85%
  • n average, further increasing the competitiveness of the Openreach backhaul portfolio

Cablelink rental price increase

  • Cablelink rental and connection charges will be increased by 2.6% (this increase reflects an

adjustment for inflation for the first time since prices were first set in 2005). This is the only price increase being made at this time and will be effective 1 July 2013.

Publication of High Bandwidth Ethernet Charges

  • In addition, High Bandwidth Ethernet charges will be published on the Openreach website

for the UK (excluding FlexZone) in line with new regulatory requirements. This covers EBD, BNS, ONBS, WES/WEES, BES, TDMA and TDMB services above 1Gbit/s. *

* OSS prices outside the FlexZone will be published in due course.

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SLIDE 19

In summary

Service Saving Opportunity Effective From

Ethernet  Up to 34% off

connection and/or rental

  • Across UK

including FlexZone

  • Upsell your customers from 10Mbit/s to 100 Mbit/s at no

additional cost to yourself

  • Target new customers with higher bandwidth products at

competitive price points

  • No price rises for next three years on EAD, EBD, BES,

WES, ONBS, BNS and BTL

  • Migrate your circuits and take advantage of lower rental

prices

  • Use EBD for backhaul – great for LLU operators who’re

keen to offer greater value to their end users

  • Compete with other infrastructure providers

1 May 2013 ECCs

  • Prices reduced by

7% to 50% across a range of services

  • Across UK

including FlexZone

  • Significantly lower provision costs for circuits requiring

ECCs (33% of UK circuits)

1 April 2013

Expect to see further price reductions April 2014 and 2015. As always, your feedback on all the latest changes, plus what you’d like to see happen in future is welcomed.

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SLIDE 20