GEN042/12 Regulatory Asset Value (RAV) adjusted prices for duct and pole sharing products

03/05/2012    For Information

This briefing on RAV adjusted prices for duct and pole sharing products is for all Communications Providers.

The purpose of this brief is to provide an update on RAV adjusted prices for duct and pole sharing products in BDUK areas

Openreach today announced new prices for some of its duct based Duct and Pole Sharing products (also known as PIA) in cases where customers/CPs are bidding for BDUK funds. These new prices will take effect from 27 July 2012.

Openreach launched its Duct and Pole Sharing products on 21 November 2011, (GEN122/11) having announced the prices on 7 October 2011 (GEN106/11).  At that time Openreach noted that if an adjustment to the value of Openreach’s Regulatory Asset Value (RAV) was required by Ofcom’s WLR/LLU charge control consultation (which was at that stage still not concluded), then Openreach would also apply the adjustment to the prices of Duct and Pole Sharing products in cases where CPs were bidding for BDUK funds.  Openreach made the commitment to ensure that the BDUK bidding process could run as smoothly as possible, despite its objection to the RAV adjustment, and regardless of any legal challenge Openreach may make to Ofcom’s decision.

In the final WLR/LLU Charge Control Statement (published in March 2012) Ofcom did indeed require Openreach’s regulated LLU and WLR charges to be adjusted downwards in line with Ofcom’s view. As a result, and as it committed to do, Openreach is now reducing the price of the relevant duct based products in cases where CPs are bidding for BDUK funds to reflect the impact of the RAV adjustment.

As previously stated in November, in the event of Openreach being successful in any subsequent legal appeal it may take against the application of the RAV adjustment, Openreach will revert to the duct prices published on 7 October for BDUK bids.

Full details of the new prices can be found in the Pricing section of the Openreach Website at ACCN OR283 and Section 6 Physical Infrastructure pricing.

Issued by KJS

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

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