GEN101/11 Copper incentive scheme update

23/09/2011 Urgent

This briefing is for all WLR and LLU Communications Providers.

Openreach is delighted to announce that today Ofcom has granted its request for a price notification waiver for the 'Copper incentive scheme'. As a result the offer is now open from today.

Purpose of offer

This offer is intended to incentivise Communication Providers (CPs) to utilise lines that have previously been installed but where use has now been stopped or to provide additional lines to existing customer premises. It is based on incremental growth net of early cancellations above a pre-determined Background Threshold run-rate and for each incremental line CPs will receive a £50 incentive payment. Start orders and new lines to a premise will be validated to ensure that there is not a current cease or stop order within the last 3 months to demonstrate genuine incremental growth. The purpose of the offer is to help CPs encourage end users to use Openreach copper access lines for their communication requirements.

How to participate terms of offer

The Copper Incentive Scheme was originally notified by Openreach on 25 August (GEN088/11). The offer was notified with a standard price notification period of 90 days. Further to the waiver request being granted, the scheme changes in the following ways:

• The scheme will now run from 23 September 2011 to 22 March 2012 (inclusive).
• CPs that have not registered for the offer will still be able to participate provided that they register during the offer period, although in order to take best advantage of the scheme, CPs are encouraged to register as soon as possible. To register, CPs should contact their Sales and Relationship Manager.
• For CPs that have registered for the offer, Openreach will refresh the seasonal adjustment in the Background Threshold and will update CPs in the next week

All other terms and conditions of the offer are unchanged. For CPs that register:

1. Openreach will:
   a. Calculate participating CP's Background Threshold run-rate as the sum of seasonally adjusted run rates for "New Provision" and "Starts" of lines that have been "Stopped" for longer than 3 months.   The base run rate will be calculated for each registered CP by taking the average monthly run rate for 1 April 2011 - 31 August 2011.  This will be adjusted for historic seasonal changes using 2010/11 data to give Background Thresholds for a) the first three months of the offer and b) the second three months of the offer.  
   
   For example, a CP with a run rate of 50,000 in the five months April - August 2011 would have a monthly run rate of 10,000 equating to a three month run rate of 30,000.  If the seasonal adjustment for the first three months were, for example, +5%, the Background Threshold for that CP for the first three months would be 31,500.   In this instance, this CP would qualify for incentive payments for the incremental volume above 31,500. 
   
   b. Inform participating CPs of their Background Threshold.
   
2. Registered CPs will also be supplied a list of copper lines that are identified by Openreach as "Stopped" for longer than 3 months.  This will help in identifying premises where there are currently inactive Openreach access lines.  
3. At the end of the offer, Openreach will measure each CP's sales performance of "Started" lines  that have been "Stopped" for longer than 3 months and New Provides, and compare this with the CP's Background Threshold to determine incremental growth and the level of incentive payment. A billing credit will be issued to each CP within 60 calendar days or as soon as reasonably possible.
4. This offer will run for six months, however, Openreach will assess the performance of the offer and may end the offer after three months. In this eventuality CPs will be advised accordingly with at least 28 days notice
5. This offer cannot be used in conjunction with any other Openreach offer.
6. Use of this offer contrary to the purpose set out above may result in the suspension or ending of participation of a CP in the offer and/or disqualify a CP in part or in whole from receiving the incentive payment.
7. This offer is subject to the terms and conditions of service. In the event of any inconsistency between those terms and conditions and the terms and conditions of this offer, the terms and conditions of service will prevail.
8. The offer is to remain entirely within the discretion of Openreach on the basis of any relevant regulatory, legal, technical, financial or other considerations. Openreach reserves the right to withdraw or limit the scope of this offer at any time.

Details of the offer can be found in the Special Offer Section of the Openreach price list available at : 

 

For further queries please contact your Sales and Relationship Manager.

MFG

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

If you wish to discuss the information contained within this brief, please contact your Sales and Relationship Manager.

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