Business Connectivity Market Review 2016

Published: 15 May 2015
Consultation closes: 31 July 2015
Status: Closed (statement published)

Ofcom's Business Connectivity Market Review (BCMR) examines the markets for the provision of leased lines to businesses in the UK.

Leased lines are high-quality, dedicated, point-to-point data transmission services used by businesses and providers of communications services. As well as being essential components of many businesses communications systems, they are also essential to support the provision of mobile telephone and fixed residential broadband services.

Every three years, Ofcom conducts a review of competition in the markets for the provision of leased lines in the UK. Where we find that a provider has "significant market power" (SMP) in a market (i.e. that they are able to act independently of competition) we impose regulations designed to address concerns about the impact of that market power on competition.

Revocation of measures imposed in Business Connectivity Market Review and imposition of Temporary Conditions

As a result of an appeal brought by BT against aspects of the 2016 review, Ofcom is required to reconsider a number of issues in a new analysis of the markets. In the meantime the regulation of the services set in the 2016 review has to be removed. Ofcom has the power to make temporary arrangements for reasons of urgency and where exceptional circumstances apply. This statement imposes, in the period until March 2019, temporary regulation for the services and areas where we continue to find that BT has significant market power until the new analysis is completed.

BCMR Revocation Notification (PDF, 212.0 KB)

BCMR Temporary Conditions (PDF, 875.4 KB)

BCMR Temporary Conditions annex 1: Legal instruments (PDF, 1.1 MB)

BCMR Temporary Conditions CPI-X Model (XLSM, 8.4 MB)

We are separately consulting on the appropriateness of imposing additional dark fibre obligations for the markets set out in this statement.

Consultation, statements and updates

Update 31 January 2018: Correspondence with Openreach

Ofcom has published an exchange of letters between Openreach and Ofcom concerning regulatory obligations on BT to provide key performance indicators imposed in the Business Connectivity Market Review. The correspondence concerns agreement around the timing of KPI availability.

Openreach letter of 22 January 2018 concerning the provision of key performance indicators (KPIs) (PDF, 156.5 KB)

Ofcom response of 31 January 2018 to Openreach’s letter of 22 January 2018 concerning KPIs (PDF, 394.9 KB)

Update 15 August 2017: Information on launch of dark fibre

We note that Openreach has notified its customers that it does not intend to launch dark fibre on 1 October 2017.

On 26 July 2017, the Competition Appeal Tribunal found that Ofcom was incorrect in how we set our 2016 Business Connectivity Market Review market definition. The Tribunal has not yet provided the reasoning for its decision or determined exactly what will be remitted to Ofcom to reconsider as a result.

On 8 August 2017, Ofcom wrote to BT explaining its position in relation to the launch of dark fibre in the interim period (PDF, 33.5 KB).

Update 11 April 2017: Non-domestic rates and the price for regulated Dark Fibre

This document proposes an amendment to one of the regulatory conditions imposed on BT under the April 2016 Business Connectivity Market Review.

Consultation: Non-domestic rates and the price for regulated Dark Fibre.

Update 9 July 2015: Clarifications and corrections to the BCMR consultation document

This document sets out clarifications and corrections to the consultation document on the Business Connectivity Market Review published on 15 May 2015 and the Leased lines charge controls and dark fibre pricing consultation, published on 12 June 2015.

Clarifications and corrections to the Business Connectivity Market Review and the Leased Lines Charge Controls and Dark Fibre Pricing consultation documents (PDF, 43.8 KB)

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