Broadband is increasingly central to the lives of UK consumers and the success of businesses.
It allows consumers to access and interact with a wide range of content and services and allows businesses to exploit new market opportunities and more efficient operating models. Competition has driven the success of the current generation of broadband services. The result has been greater choice, innovation, lower prices and high levels of broadband adoption.
In the Review of the wholesale broadband access markets - Statement on market definition, market power determination and remedies' ("the 2010 WBA Statement") (PDF, 1.3 MB) published on 3 December 2010, we found there is effective competition in areas covering almost 80% of the premises in the UK. However, in Market 1 - made up of exchange areas in which BT is currently the only provider of wholesale broadband services - we decided that BT1 should be subject to a charge control. On 20 January 2011, we set out our proposals on the structure, form and level for the charge control in the WBA Market 1 areas (the "January Consultation") and requested stakeholders' views on these.
This statement sets out our conclusions on the charge control for Wholesale Broadband Access (WBA) services in Market 1. We set out below our conclusions following consideration of the responses to the January Consultation.
We believe that the benefit of the wholesale charge reductions resulting from this charge control could deliver lower retail prices and also improve broadband users' experience in Market 1. As average demand increases as more consumers seek to use higher bandwidth services, we believe that internet service providers (ISPs) will reflect the benefits arising from the charge control in better quality of service, as this is likely to be an important focal point for broadband retail competition in Market 1 areas.
1. Our decision on the WBA charge control is addressed to BT plc. as a whole. It should be noted that however that the charge controlled product is supplied by BT Wholesale ("BTW").
As a result of the aggregation of certain data which is confidential to BT, not all results will reconcile exactly with the values published in the consultation document. The terms and conditions on which Ofcom is making available the model are set out below.
The WBA charge control model provided has been developed to help understand the cost of WBA on a hypothetical ongoing network. Although the scope and flexibility of the model may be wider than this, the aim has been to extend the scope only to the extent necessary to better understand the costs of WBA.
All right, title and interest in the provided model (the 'Model') constructed in Excel to understand the cost of WBA on a hypothetical ongoing network are owned by Ofcom. Such title and interest is protected by United Kingdom intellectual property laws and international treaty provisions. While you may freely use the Model for the purposes for which it is provided, as set out in the introductory sections of the accompanying model documentation, it is not to be modified in any way or used for commercial gain or otherwise without the prior written permission of Ofcom.
No representation or warranty is given as to the accuracy, completeness or correctness of the provided Model and it is provided 'as is'. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.
Ofcom does not accept any responsibility for any loss, disruption or damage to your data or your computer system which may occur whilst using the Model or material derived from the Model. Ofcom does not warrant that the functions contained in the Model will be uninterrupted or error free. Also, Ofcom does not warrant that defects will be corrected, or that the Model provided is free of viruses.
In no event will Ofcom be liable for any loss or damage including, without limitation, indirect or consequential loss or damage, or any loss or damages whatsoever arising from use or loss of use of, data or profits arising out of or in connection with the use or otherwise of the provided Model. By using this Model, you agree to the above.