ETH034/12 Reduction in 1Gbit/s Ethernet rental prices

05/07/2012    For Information

This briefing on price reductions is for all Ethernet Communications Providers

The purpose of this brief is to detail price reductions that have been made to some rental prices for access Ethernet products.

This morning Ofcom published the consultation on its proposed charge controls for leased lines services, to apply from early 2013 to 30 September 2015.

The current Leased Lines Charge Control (LLCC) expires on 30 September 2012. Ofcom has acknowledged that it may not be able to make a decision and publish the statement for the next LLCC until the first quarter of 2013. Therefore, it is likely that there will be an interim period between the end of the current charge control period and the start of any new LLCC.

To provide certainty to our customers in the interim period, Openreach has provided commitments to Ofcom to implement price reductions that will apply for the period from 1 October 2012 to 31 March 2013 (or until a new Ofcom LLCC charge control is set, whichever is sooner). We consider the price reductions outlined below for the Ethernet 1Gbit/s and WES products will provide certainty to our customers that Openreach will continue to implement fair and reasonable charging in the absence of any formal charge control from Ofcom.

Pursuant to our commitment to Ofcom, Openreach has notified price reductions to apply from 1 October 2012 to:
• WES/WEES and EAD rental services at 1Gbit/s
• WES 155mbit/s and WES 622mbit/s. 

The price reductions are shown in the table below:

Product	Current Rental Price	Proposed Rental Price	Reduction
WES Local Access 1000 managed	5,000	4,530	-9%
WES/WEES 1000 (LAN /SAN)	5,000	4,530	-9%
WES 1000 Resilient Option 1	8,875	7,050	-21%
WES/WEES 1000 Extended Reach	6,865	5,631	-18%
WES/WEES 155	5,210	4,278	-18%
WES/WEES 622	8,500	4,659	-45%
WES Aggregation Aggregated Link 1Gb optical VLAN Remote Handover	4,800	4,308	-10%
WES Aggregation Aggregated Link 1Gb optical VLAN Local Handover	4,800	4,308	-10%
WES Aggregation Aggregated Link RJ45 Handover	4,800	4,308	-10%
EAD 1000 Local Access Resilient Option 1	14,000	8,169	-42%
EAD 1000	9,500	7,779	-18%
EAD 1000 Resilient Option 1	14,000	12,900	-8%
EAD 1000 Extended Reach	13,000	9,819	-24%
EAD 1000 Extended Reach Resilient Option 1	19,000	16,929	-11%

Detail of all of the changes can be found in the Price Notification ACCN OR298 which can be found at: Pricing notifications.

They can also be found in the “Ethernet services pricing” section of the Openreach price list.  It can be located at: Pricing.

KJS

The contents of this briefing are accurate at the time of writing and are subject to change.

Please discuss any queries or issues in relation to this briefing with your Sales & Relationship Manager or Service contact, who will be pleased to assist.

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