Openreach is pleased to confirm details of the good faith allowance payments to be made to WLR Communications Providers.

In October (ref WLR120/06) we updated you on the situation regarding the progress of the launch of WLR3.

In September 2005, as part of the TSR, BT undertook to provide Wholesale Line Rental (WLR Analogue or PSTN) on an Equivalence of Inputs (EOI) basis for new end users by 30 June 2007 (the ‘RFS’ date).  By this date BT has also committed that all its downstream New End Users would be provided using the EOI WLR3 product.

Openreach is still on track to launch its new EOI WLR3 product by the end of 2006, which is a full six months ahead of the RFS date outlined above. The new WLR3 product will be available on an equivalent basis to all Communications Providers (CPs), including BT’s own downstream divisions, who will begin moving their New End Users on to it from launch.

However, as not all downstream BT New End Users, as defined in the Undertakings will be using the new product from 31 December 2006, BT agreed to pay a good faith allowance to all WLR CPs.

Openreach undertook to issue further details of how the allowance will be paid and we are pleased to be able to now confirm the following.

The good faith allowance will be 25 pence for each Wholesale Analogue Line Rental line that CPs rent for each complete month from 1 January 2007 until the date the RFS is achieved (i.e. all downstream BT New End Users are using the EOI WLR3 product) or 30 June 2007 (whichever is earlier).

Payment will be made in the form of a credit in the standard bill 2 months after each qualifying month (so payments for January 2007 will be made in the March 2007 bill and so on). This allows sufficient time to process the allowance.

The credit will appear as ‘credit as per briefing number WLR134/06’.

No action is required by CPs as the payments will be made automatically.

Details of eligible lines are shown at the end of this briefing.

CPs will be notified should RFS be achieved prior to 30 June 2007.

The following lines will be eligible for payment:

• WLR2 & WLR3 Analogue lines which do not undergo any changes during the course of a calendar month (and are therefore rented for the entire calendar month)
• WLR2 & WLR3 Analogue lines which are converted within that product set e.g. converted from WLR2 Single Line to WLR2 Multiline Aux
• WLR Analogue lines which are transferred from WLR2 to WLR3 or vice versa
• WLR2 & WLR3 Analogue lines where there is a change of RID (reseller)
• WLR2 & WLR3 Analogue lines which are renumbered (including to imported numbers)
• WLR2 & WLR3 Analogue lines with partial renumbers
• Working line start of a WLR2 or WLR3 Analogue line by the same CP in the same premises and if the CP continues to pay rental on it
• The same WLR2 or WLR3 line which is stopped and started on the same day with no break in the rental due on the line
• Each line of a Multiline Aux (MLA) group attracts the payment