NGA2012/23 2.5Gb ONT trial (installation for specified FTTP bandwidths)

01/06/2023

For Information

This briefing is for all Communications Providers (CPs).

This briefing is to inform CPs about the launch of a trial in which, for a charge, Openreach will install ONTs with a 2.5Gb interface for certain FTTP bandwidths as specified by CPs.

On 1 July 2023 we will begin a 12-month trial to allow CPs to specify that 2.5Gb ONTs should be installed by default instead of the standard 1Gb ONT for specified FTTP downstream bandwidths lower than 1Gb. Each CP participating in the trial can select speed tiers, no lower than 55Mb downstream, for which it wants all future end customer connections to be delivered using a 2.5Gb ONT, rather than the standard 1Gb ONT that otherwise applies to all orders for FTTP connections at speed tiers up to and including 1Gb.

The terms set out in this briefing shall apply to CPs that opt-in to the trial, and CPs will be charged an additional £10 per connection for the speed tiers they have selected. We will rebate CPs participating in the trial £10 for each bandwidth upgrade from the selected speed tiers to bandwidths above 1Gb made within 24 months from the end of the trial, or from when a CP exits the trial if sooner. Rebates will not be made for box swaps.

We will continue to install a 2.5Gb ONT as standard for orders of FTTP speed tiers above 1Gb at the time of the first visited FTTP provision (i.e. excluding box swaps).

CPs were first made aware of our intention to install 2.5Gb ONTs for a premium at CFPCG in February 2023. As explained previously at the CFPCG, CPs who expressed an interest in joining the trial by 19 May 2023 will be able to participate in the trial from launch on 1 July 2023. To manage 2.5Gb stock levels, CPs may otherwise join the trial going forward (subject to a three-month notice period) by contacting matthew.sledge@openreach.co.uk.

CPs that are formally established under the terms of ‘CP Engineer’ or are considering doing CP Engineer should let us know whether they wish to include 2.5Gb ONT installs in CP Engineer, and we would be happy to discuss further.

Terms of the trial

  1. The trial is open to all FTTP CPs, rather than resellers (RID level). This means that all orders from a CP taking this trial will be covered, not just those from selected resellers.
  2. The trial shall apply to all appointed connections for participating CPs, on the download bandwidths they have nominated ("Nominated Bandwidths"). For example, if a CP selects the 1000Mb download bandwidth, we would install 2.5Gb ONTs for connections at both the 1000/115Mb and 1000/220Mb speed tiers for that CP. The lowest bandwidth that can be nominated is 55/10Mb.
  3. We will charge £10 for all Nominated Bandwidths to install our 2.5Gb ONT where we would otherwise normally install a 1Gb ONT as standard.
  4. Billing will be done quarterly. For each quarter that a CP takes part in the trial, Openreach will charge £10 for any relevant connections and rebate £10 for any relevant bandwidth upgrades made within 24 months of the end of the trial, or from when a CP exits the trial if sooner.
  5. Rebates will be paid for any subsequent bandwidth upgrade to speeds above 1Gb. Rebates only apply to the set of end customers for which a 2.5Gb ONT charge was raised. Specifically:

a. A CP cannot receive more rebates for speed upgrades than they have paid for in 2.5Gb ONT charges.

b. Non-participating CPs will not qualify for rebates.

c. A participating CP will be eligible for a rebate irrespective of whether the 2.5Gb ONT in place for that end customer was installed as a result of a previous order placed by that CP or installed by another participating CP. For example, if CP1 pays £10 for a 2.5Gb ONT, and the end customer then migrates from <1Gbps to a >1Gbps product with CP2, CP2 may be eligible for a £10 rebate (subject to 5 a.).

d. If in the future we change the default so we install a 2.5Gb ONT for all connections above a bandwidth threshold, future connections made above that threshold would not be charged for nor would they be eligible for rebates.

e. We will only pay rebates for bandwidth upgrades made within 24 months after the end of the trial, or a CP leaving the trial, whichever is the sooner.

6. CPs will need to give a three-month notice period to opt in/out of the trial. This reflects the current lead time to source 2.5Gb ONTs and will be kept under review. Once CPs are opted in, they remain participants of the trial until they express their decision in writing to opt out.

7. Where a CP has opted out of the trial, or if we decide to stop the trial early, we will:

a) continue to pay rebates (in accordance with the trial terms), for speed upgrades where a 2.5Gb ONT has been installed for a period of 24 months following the last day the CP participates inthe trial; or

b) where the rebates total the 2.5Gb ONT charges paid by the CP; whichever is sooner.

8. We will install 2.5Gb ONTs as part of this trial on a best-efforts basis. There may be cases where end customer provisions at Nominated Bandwidths remain on 1Gb ONTs, or potentially cases where 2.5Gb ONTs are installed for provisions of bandwidths outside the Nominated Bandwidths.

a) Where a participating CP orders a non-Nominated Bandwidth (a speed tier that should come with a 1Gb ONT), but we install a 2.5Gb ONT, no additional charge will apply.

b)Where a participating CP orders a Nominated Bandwidth (that should come with a 2.5Gb ONT) but we confirm that a 1Gb ONT was installed, the £10 charge will not be raised, or will be rebated if already charged at the point this is identified. Any subsequent box swap to move to bandwidths above 1Gbps would be charged in full.

c) When calculating charges, until we have completed system development, we will apply a 25% deduction to provision volumes at the Nominated Bandwidths. For example, if a participating CP makes 10,000 connections at Nominated Bandwidths, we will initially charge 7,500 connections. When the system development is completed, expected after around three months, we will compare the volumes of 2.5Gb ONTs we have charged for with those correctly installed. We will correct any differences with a payment or rebate in the subsequent billing cycle.

9. Billing for each quarter (starting with the three-month period from 1 July 2023) will be processed two months after closure of the relevant quarter. For example, the first billing cycle will be for the three months of July, August, and September. Any charges or rebates earned in that period will be applied to the 1 December invoice.

10. Addresses where a multiport ONT is required (e.g. the CP has specified they want a multiport ONT) are not eligible to take part in the trial for 2.5Gb ONTs.

11. New Sites are currently out of scope.

12. This trial is available on new provides only.

13. The responsibility for testing compatibility between the new Openreach 2.5Gb ONTs and the router(s) supplied by the service provider remains the responsibility of the CP.

14. Openreach may withdraw, extend and/or limit the scope of this trial on 28 calendar days’ notice.

This briefing supports ACCN OR855.

More information

If you've any questions about this briefing, please get in touch with your business development manager or customer experience manager.