This briefing is applicable to all Communications Providers and relates to contract novations.

Openreach is pleased to announce the re-launch of the contract novation process for WLR2 and LLU products.

This re-launch introduces changes that aim to simplify and streamline the existing novation process. A novation may be of use in business change scenarios such as merger and acquisitions, sale or corporate re-structuring.

The Openreach novation facility enables Communications Providers (CP) to request the transfer of specific product contracts from one legal entity to another. At re-launch the contract novation facility will become a chargeable service for Local Loop Unbundling (LLU) contracts and a new price will be introduced for Wholesale Line Rental (WLR2) contracts.

The improved novation process will be available as follows:

• eligible LLU product contracts from 1st March 2008
• eligible WLR2 product contracts from 1st May 2008

Please note that the existing bulk transfer process for WLR2 products will remain available until 1st May 2008.

Eligible Ethernet products are also planned to be included in the updated novation process. Their inclusion will be confirmed once development for these products is complete and will be communicated over the coming months.

Novation
Novations will be carried out on a per contract basis and will require a signed agreement from all concerned parties, including Openreach. The novation of a contract means that all product assets and customers under that contract are transferred to the new legal entity.

Openreach will consider requests to novate contracts against a set of eligibility criteria with the gaining and losing CPs (e.g. credit vetting) and the payment of any charges as shown in the Openreach price list.

If the gaining CP is not already an Openreach customer, it will have to apply and successfully go through the Openreach customer establishment process before the novation can be carried out.

Further details of the novation process and a list of the product contracts eligible for novation are available from the new Novations Customer Guide (http://www.openreach.co.uk/orpg/products/cpp/novations.do).

A one off fee will be applicable for each contract included in a novation request in addition to a fee for each asset (e.g. tie cables, WLR lines) included in the novation. More information about assets is included in the Customer Guide (http://www.openreach.co.uk/orpg/products/cpp/novations.do).

Details of the applicable pricing for the novations facility has been formally notified via ACCN OR067. This price notification can be viewed from the price notification area of the Openreach website. (http://www.openreach.co.uk/orpg/pricing/notifications.do). A new section will also be added to the Service Products area of the Openreach price list (http://www.openreach.co.uk/orpg/pricing/serviceproducts.do).

Name Change Guide Available
To assist customers in using the existing Name Change facility, a new guide has been published at http://www.openreach.co.uk/orpg/products/cpp/novations.do.
This facility is currently available for WLR2. Eligible LLU and Ethernet products are planned to be included in the near future.

Name changes will be provided at no charge.

The Name Change service applies only to the change of a company’s registered company name. This is the name registered with Companies House or, if the company is not incorporated in the United Kingdom, with another country’s official company registry. It does not apply to business or trading names. Where applicable this service will also cover the change of a company’s registered address.

Companies should contact Openreach to request that a name change is performed so that their new registered company name is reflected on all Openreach’s records and systems. This will address issues arising from the co-existence of old and new names in the present and future relationship between the CP, its end users and Openreach.

Requesting a Novation or Name Change
Customers who wish to use these facilities should contact their Openreach Customer Business Management team who will be pleased to discuss each process in more detail.
To enable the transfer of assets under a novation request, or to perform a name change, an order freeze period may be required. This will be discussed with you as part of each process.

Documents
The Novation Customer Guide, Name Change Customer Guide and supporting documentation will shortly be available from the Service Products section of the Openreach website http://www.openreach.co.uk/orpg/products/cpp/novations.do.
The relevant LLU and WLR product handbooks will also be updated in due course to include reference to novation and name change.

If you wish to discuss the information contained within this brief, please contact your Customer Business Manager.

Please do not forward, republish or permit unauthorised access. The content is accurate at the time of writing and is subject to change.