BT Group plc
Detailed Attribution
Methods (DAM) 2012
31 July 2012
Detailed Attribution Methods (DAM) 2012
Contents
Section
Description
Page
Section 1
Introduction
2
Section 2
Business Overview
6
Section 3
Overview
9
Section 4
Base Methodology
Section 5
Activity Group Dictionary
153
Section 6
Plant Group Dictionary
160
Section 7
Network Component Allocations
262
Section 8
Wholesale Market Definitions
326
Section 9
Data Sources
327
Appendix A
Network Overview Diagram
368
Appendix B
SDH Core Network Detail
369
Appendix C
Bearer Diagram
370
Appendix D
Circuit Diagram
371
Appendix E
Key Destinations (attached in Excel spreadsheet format “DAM
2012_Appendix E”)
Appendix F
Sector Allocations (attached in Excel spreadsheet format “DAM
2012_Appendix F”)
Appendix G
Line of Business Organisational Unit Codes (OUCs)
52
1
372
Detailed Attribution Method (DAM) 2012
Section 1 - Introduction
1 Introduction
In the UK, the telecoms industry is regulated through various European Union directives, the Communications Act
2003 (the Communications Act), Ofcom (the UK’s independent regulator), and other regulations and
recommendations.
Ofcom is the independent regulator and competition authority for the whole UK communications market. Its main
duties are:

to further the interests of citizens in relation to communications matters

to further the interests of consumers in relevant markets, where appropriate by promoting competition.
Ofcom sets out conditions under the Communications Act and directions under these conditions. Some conditions
apply to all Communication Providers (CPs). Others apply to certain individual providers Ofcom has decided are
‘universal service providers’ or have Significant Market Power (SMP) in a particular market. Anyone can appeal
against Ofcom’s regulatory decisions through a number of legal processes including the Competition Appeal
Tribunal.
1.1 Regulatory Reporting Requirements
Our regulatory financial reporting obligations are ex-ante obligations that are imposed under the Act Sections 87(9)
to 81(11) for wholesale cost accounting, 91(5) and 91(6) for retail cost accounting and 87(7) and 87(8) for
accounting separation. Regulatory financial reporting obligations are imposed by Ofcom to monitor and enforce
other ex-ante obligations e.g. for cost orientation, cost recovery, price controls and no undue discrimination. We
are required to demonstrate compliance with these obligations in certain SMP markets.
The cost accounting and accounting separation requirements are detailed in the Final Statement and Notification in
‘The regulatory financial reporting obligations on BT and Kingston Communications’, which was published on 22
July 2004 and amended by the following Final Statements and Notifications:

“Changes to BT’s regulatory financial reporting framework” issued by Ofcom on 31 August 2005;

“Changes to BT’s regulatory financial reporting and audit requirements” issued on 16 August 2006;

“Changes to BT’s regulatory financial reporting and audit requirements” issued on 30 May 2007;

“Changes to BT’s 2007/08 regulatory financial statements” issued on 26 June 2008;

“Changes to BT and KCOM’s regulatory financial reporting – 2008/09 update” issued on 15 June 2009;

“Changes to BT and KCOM’s regulatory and financial reporting 2009/10 update” issued on 4 June 2010;

“Changes to BT and KCOM’s regulatory and financial reporting 2010/11 update” issued on 2 June 2011;
and

“Changes to BT and KCOM’s regulatory and financial reporting 2011/12 update” issued on 17 April 2012.
(Together “the Final Statements and Notifications”).
1.2 The Accounting Documents
The Regulatory Financial Statements (RFS) are prepared in accordance with the Accounting Documents, where the
Accounting Documents means together the Primary Accounting Documents (PAD) and the Secondary Accounting
Documents.
The PAD sets out the framework under which the statements are to be prepared.
The Secondary Accounting Documents set out more detailed descriptions of the policies, methodologies, systems,
processes and procedures for deriving or calculating the costs, revenues, assets and liabilities underlying the RFS
and comprise the following three documents:

The Detailed Attribution Methods (DAM) - describes the processes used to derive the fully allocated costs
of BT’s network components, SMP Markets, Technical Areas and Disaggregated Activities (as applicable).

The Detailed Valuation Methodology (DVM) - describes the methods used to derive current cost
valuations.

The Long Run Incremental Cost Model: Relationship and Parameters (R&P) - describes the calculation of
the long run incremental costs for network elements.
2
Detailed Attribution Method (DAM) 2012
Section 1 - Introduction

The Wholesale Catalogue - describes the wholesale services included in the Wholesale SMP markets and
technical areas where BT has a regulatory financial reporting obligation.
1.3 The DAM
The purpose of the DAM is to:

Describe the costing principles used by BT to prepare the RFS on a fully allocated cost basis.

Describe the methods used in the Accounting Separation process to attribute revenue, costs and capital
employed to the Markets, Technical Areas and Disaggregated Activities in the RFS.

Outline the systems and processes used by BT to support Accounting Separation.

Outline the methods for transfer charging from the BT Wholesale Markets to BT Retail Residual.

Outline the methods for preparing the Statement of Costs on a Current Cost Basis and the Statements of
Costs and Charges for Internal and External Wholesale Services.
The DAM provides detailed and granular descriptions of the procedures used to apply the principles set out in the
PADs.
The DAM is structured in sections explaining the different stages of the Accounting Separation process. Accounting
Separation is the attribution of costs, revenues and capital employed to the defined Markets and Disaggregated
Activities of BT.

Section 1 - Provides an introduction and guide to using the DAM.

Section 2 - Provides an overview of the BT business, describes how the underlying financial transactions
supporting the business activities and functions recorded in the financial ledgers are grouped to provide
the starting costs, revenues, assets and liabilities used by the Accounting Separation (AS) system. This
provides the starting cost pools (‘F8 items’), grouped and presented by different areas of BT’s business
(sectors). The AS system attributes the costs, revenues, assets and liabilities to defined products and
components which aggregate into the Markets, Technical Areas and Disaggregated Activities to create a
view of BT’s financial position and results against SMP Markets.

Section 3 - Provides an overview of the AS solution, in terms of the underlying costing principles and the
conceptual flow of costs and revenues from source financial systems to the separated Markets, Technical
Areas and Disaggregated Activities to create a view of BT. It sets out the main types of cost pool used by
the solution, in terms of F8 items, activity groups, plant groups, network components and products, and
explains the flow of costs and revenues across the different types of cost pool. This section also provides
an overview description of each sector.

Section 4 - The base methodology dictionary provides a complete description of the attribution base
methodologies referred to in the sector tables (Appendix F) for each given base methodology, based on
the current year profit and loss accounts and closing balance sheet. In the majority of cases opening
balance sheet destinations are not materially different. Where a methodology applies to the opening
balance sheet only, the key destinations will still be shown (see Appendix E).

Section 5 - Provides an overview description of activity groups, followed by a table setting out the
Activity Groups contained in the DAM. The table shows, for each Activity Group, a high level summary of
the methodology that is applied to attribute the costs to the next cost pool (e.g. plant groups, products)
in the AS system. The main costs pool destinations can be found in the Key Destination tables (Appendix
E). The Activity Group Dictionary provides a complete description of the attribution methodologies
applicable to the Activity Groups based on the current year profit and loss accounts and closing balance
sheet. In the majority of cases the opening balance sheet destinations are not materially different.

Section 6 - Sets out the Plant Groups used in the AS system. The attribution table shows a high level
summary of the base methodology used for each Plant Group follows the overview of the Plant Groups.
The Plant Group dictionary sets out the detailed descriptions of the Plant Group attribution
methodologies. The main costs pool destinations can be found in the Appendix E key destinations table.

Section 7 - Sets out an overview of network components, followed by attribution tables. These explain
the attribution of network components and standard services to final products in the AS system.

Section 8 - Provides a description of the services as defined in the AS system, grouped into the different
regulated markets and services required for regulatory reporting.

Section 9 - Provides a dictionary of data sources.

Appendix A - Shows the Network overview diagram.

Appendix B - Shows the SDH Core Network Detail diagram.
3
Detailed Attribution Method (DAM) 2012
Section 1 - Introduction

Appendix C - Shows the Bearer diagram.

Appendix D - Shows the Circuit diagram.

Appendix E - The key destinations table identifies the key destinations of all the bases described in
sections 4-6. This is based on the current year Profit and Loss account and closing Balance Sheet. In the
majority of cases the opening balance destinations are not materially different.

Appendix F - The Sector Allocation Table identifies the base applied to each F8 code/OUC combination
(representing at least 90% of the costs, assets or liabilities of each sector). Descriptions for these bases
can be found in sections 4-6. Key destinations can be found in Appendix E.

Appendix G - Shows the Line of Business Organisational Unit Codes (LoB OUCs).
1.4 Guide to using the DAM
We have structured the DAM to provide a logical description of the flow of costs from source ledgers (with similar
cost types grouped together and treated in a similar way) through a series of attribution stages to Services or
products.
This is described below:
Overview of how to use the DAM.
1. Identify sector (starting cost pools grouped by business
function/activity) for examination.
Section
1 - 3.5
Section 3.6 to 4
Section 5
Section 6
Activity
Dictionary
Section 7
Plant Group
Dictionary
Section 8
Network
Components
Base Methodology
Dictionary
Services and
.
Products
2. Review sector
overview and select
F8 item from sector
tables follow link to
description of base
methodology and
destination cost
pools (e.g. Activity
Group Dictionary of
Bases)
3. Trace Activity Group, Plant Group or Network Component in
tables in Sections 5 to 7 respectively; identify base methodology
and follow link to description of methodology and destination costs
pools (e.g. Plant Group) in relevant dictionary section.
Review final
Product
destination and
position within
BT regulated
markets
Using_the_DAM_Diagram1_v2
The example below shows how network costs are apportioned to P317 in a fully allocated process:

Step 1 - Identify the functional cost sector for review in Section 3.7.1.2 e.g. the General Support sector
(Sector B0).

Step 2 - Review the description of Sector B0 (in Section 3.7).

Step 3 - Select an F8 cost item from within sector B0 to review using the attribution table in Appendix F
(e.g. F8 203986 BT Licence Fee). The attribution table identifies the reference of the attribution base
applied to the F8 code i.e. the EXCEPT base for OUC C.
4
Detailed Attribution Method (DAM) 2012
Section 1 - Introduction

Step 4 - Follow the link/ reference to the base attribution methodology in the base methodology
dictionary in Section 4 using the base name and, if required, the OUC reference combined.

Step 5 - Review the description of base attribution methodology in Section 4 and also the key
destinations for the attribution base in Appendix E i.e. Corporate Costs AG112.

Step 6 - Where the attribution base has apportioned to an Activity Group, review the description of the
Activity Group (e.g. AG112) in Section 5 and review the AGs key destinations (e.g. System X LE Processor
Capital in Appendix E).

Step 7 - Follow the link from the attribution method description for PG285C in Section 6 to its key
component destinations in Appendix E (e.g. CO212 Local Exchange processor set-up).

Step 8 - Review the attribution description of network components in Section 7 (e.g. CO212) and its key
service destinations.

Step 9 - Review the definition of Wholesale service in section 8.

Step 10 - In a fully allocated process Wholesale service costs can be apportioned to end Retail product
destinations on a cost basis.

Step 11 - In an Accounting Separation process, BT Wholesale Services charge BT Retail products for the
use of their services on the same basis as they charge Other Communication Providers (see section 7).
5
Detailed Attribution Method (DAM) 2012
Section 2 – Business Overview
2 Business Overview
This section provides:

a brief overview of our business and regulatory financial reporting obligations.

a brief description of how the underlying financial transactions supporting the business activities and functions
recorded in BT Group’s financial ledgers are grouped into cost pools (‘F8 items’) to provide the starting costs,
revenues, assets and liabilities used by the Accounting Separation (AS) system.
2.1 BT Group and Regulatory Reporting
We explained in the Current Cost Financial Statements (CCFS) and the Primary Accounting Documents (PAD) that we
are subject to various regulatory financial reporting obligations for Markets, Technical Areas and Disaggregated
Activities (as applicable) where we are deemed to have Significant Market Power (SMP). We have provided a list of
the markets (including technical areas) where we have has SMP reporting obligations in the PAD and in Section 8 of
this document.
We prepare the CCFS which show our costs, revenues, assets and liabilities against defined regulatory Markets and
Services. The statements are prepared via the AS process and comprise a financial performance summary, review of
financial performance by groupings of markets and by individual markets, other information including the network
activity statement and the calculation of Fully Allocated Costs (FAC) based on component costs and usage factors
statement and reconciliation statements. For regulatory reporting purposes, revenue is recorded against a range of
services provided to customers (e.g. sales of apparatus, connection charges, rentals, etc.). Cost associated with
operational and support activities undertaken to support the provision of these services are recorded against sectors
such as planning and development, provision and installation, maintenance and plant support. We explain this in
Section 3 of the DAM.
2.2 AS Systems and the Reporting Hierarchy
Our financial and reporting system uses a hierarchical pyramid coding structure to support the data capture and
information summation at the Line of Business (LoB) and activities level. This is explained below.
Diagram: BT’s SMP Reporting and Coding Structure
Regulatory Reporting Layer
Retail
Residual
Wholesale
SMP
Sectors
ASPIRE Reporting Layer
AS Sectors
Group Financial Accounting
Layer
GFR Lines
Financial & Management Accounting
Layer
SFR Lines
Base & Apportionment Layer
F8 Codes
Accounting Transactions Layer
GL Codes
Used in Financial &
Management Reporting
Systems
Used in Financial &
Management Reporting
Systems
Used in Feeder
Systems
C
OU
BTs_SMP_Reporting_Diagram_2_2_0910
The diagram above shows the grouping of financial accounting information from general ledger cost accounts to F8
codes and sectors. The different levels of the hierarchy are discussed below.
6
Detailed Attribution Method (DAM) 2012
Section 2 – Business Overview

Accounting Transaction (GL Codes) Layer
The costs, revenues, assets and liabilities of our main business activities (within the operating businesses of BT
Retail, BT Wholesale, Openreach, BT Global Services, and other parts of the BT Group organisation) are recorded in
the group General Ledger (GL) system. There are approximately 85,000 GL Codes.

Base Apportionment (F8 codes) Layer
General ledger codes are grouped into ‘F8 codes’, which represent groups of similar general ledger codes. One or
many GL Codes are aggregated to an F8 code. The costs, revenues, assets and liabilities associated with an
individual F8 code (for a given Organisational Unit Code - see OUC description below) will be attributed to Products,
Plant Groups (PGs) and/ or Activity Groups (AGs) using a base methodology appropriate to the OUC that records.
There are approximately 40,000 F8 Codes.
The Regulatory Reporting system ASPIRE receives General Ledger feeds at the F8 code level and attributes costs,
revenues, assets and liabilities to the regulatory Markets and Services for internal and external financial reporting.

Financial and Management Accounting (SFR Lines and Reports) Layer
General ledger codes are aggregated to Standard Financial Report (SFR) Lines. One or many GL Codes are
aggregated to a SFR line which form the basis of BT’s Financial and Management Reports used internally. The SFR
structure is hierarchical with detailed reports at low level. The subtotals and totals from the low level reports feed in
to the high level summary reports. The formats of the SFR are grouped in two broad categories - Profit and Loss
Account and Balance Sheet. The SFRs form the basis of both Financial and Management reports. They provide a
pivotal link in reconciling BT’s internal and external financial reports. The creation of SF Lines and Reports is subject
to strict change control procedures. In general, SF reports comply with the UK’s legal requirements and
International Financial Reporting Standards (IFRS). There are approximately 100 SF Reports and approximately
8,200 SFR Lines.

Group Accounting (GFR Lines and Reports) Layer
SF Lines aggregate to Group Financial Reporting (GFR) Lines. One or many SFR Lines are aggregated to a GFR line.
GFR lines form the basis of BT’s Group Financial Reports, from which, BT’s external Financial Reports are produced.
The GF Reporting structure is hierarchical with the detailed reports at low level. The subtotals and totals from the
low level reports feed in to the high level summary reports. The formats of the GF Report can be grouped in two
broad categories - Profit and Loss Account and Balance Sheet. The creation of GF Lines and Reports is subject to
strict change control procedures. In general, GF reports comply with the UK’s legal requirements and IFRS. There
are approximately 50 GF Reports and approximately 1,510 GFR Lines.
Self-accounting Units (SAUs) not using the BT Group General Ledger (GL) system (such as Global Solutions) provide
summarised details of their financial accounts on a Group Financial Return (GFR), with line items from the GFR
mapped to GL codes for use in the AS system. All SAU revenues, costs and liabilities are allocated to the BT Retail
Residual Market.

Regulatory Reporting (AS Sectors and SMP Sectors) Layer
One or many F8 codes are grouped into similar functional categories called AS sectors to make regulatory reporting
more manageable. Although sectors contain functionally similar categories of cost, an individual sector is likely to
use multiple attribution base methodologies. AS sectors can be grouped in two broad categories - Profit and Loss
Account and Balance Sheet. There are approximately 150 AS sectors.
All AS sectors point to SMP sectors. One or many AS sectors can point to a SMP sector. It is worth noting that the
pointing of AS sectors to SMP sectors for BT’s Wholesale Markets reporting are different from BT Retail Residual.
This is primarily due to the different nature of the activities carried out within Wholesale and Retail.
The AS sectors are grouped in to SMP reporting sectors to produce the Wholesale SMP Reports.

Organisational Unit Code (OUC)
OUCs provide a horizontal, organisational cut of the financial data in the vertical ‘GL-F8-sector’ pyramid. Costs/
revenues/assets/liabilities are recorded by OUC, at the class of work/general ledger account level.
The codes for OUCs follow a hierarchical structure, with the first level of the OUC code defining the highest level of
the organisation unit and the subsequent letters of the OUC code representing the more detailed sub-divisions
within the top-level organisation unit. For example, OUC code N, represents BT Wholesale, and code NB represents
a subsidiary organisational unit within BT Wholesale.
A sector is represented by a series of F8 codes, with OUCs showing their financial values against the different F8
codes. Each sector can be represented by a matrix of the F8-OUC combinations. The AS system looks at each F8OUC combination to identify an appropriate base attribution methodology to attribute the costs, revenues, assets
and liabilities. There are approximately 60,000 OUC codes.
7
Detailed Attribution Method (DAM) 2012
Section 2 – Business Overview
F8_OUC combinations are the lowest level at which discrete cost pools are defined for the purposes of the
Accounting Separation System
F8_OUC_Combination
2.2.2 Attribution of BT’s financial information to Markets and Services
The DAM explains how the costs, revenues, assets and liabilities of the BT Group business are attributed to the
products of the defined regulatory Markets and Services.
OUC
F8
IV
M
NG
NU
247190
x
x
x
x
247174
x
249279
x
291016
x
297174
x
247191
P
S
x
x
e tc
x
e tc
F 8 _ O U C _ D ia m g r a
The DAM sets out for each sector the component F8/OUC codes and the base methodologies that are applied to
each F8/OUC code to attribute them to products (and/or intermediate cost pools). Several F8-OUC combinations
may share the same base, if they have similar cost behaviour.
Sector e.g. Transport
F8
Description
OUC
Base Ref
Summary
Summary description of base
203980
MT MTPN
Y3
EXCEPT
206210
206220
Fuel
Licences
Y
FUEL
Y3
EXCEPT
Etc.
Etc.
Etc.
Etc.
Ref
Sectir_Transport_v1_Diagram_0910
The base methodologies are summarised in the sector tables against the relevant F8/OUC code, and described in
detail in the Base Methodology Dictionary.
2.2.3 Scope of Document
There are approximately 40,000 separate F8/OUC combinations populated in BT’s ledgers (that is, showing a yearend balance reflecting the posting of transactions by one or more OUCs to the relevant F8 codes during the year).
Approximately 7,000 F8/OUC items account for more than 90% of the total ledger value represented by the total
population of F8/OUC items.
The DAM has been written specifically to describe the attribution of the items comprising at least 90% of the total
ledger value in absolute terms. However, actual coverage exceeds this threshold. Methodologies have been
described that are relevant to the attribution of the items that make up approximately 90% of each sector within
the ledgers. Some attribution methods apply to more than one F8/OUC combination. Therefore, there are F8/OUC
items whose attribution would be described by the methodologies included in the DAM, but which are not
specifically identified. The methodologies described cover substantially all of the revenues, costs and capital
employed recorded in the ledgers.
The document follows this principle of identifying only those material items, rather than the total population of
items that is relevant to a methodology. Key destination tables specify the destinations of at least 90% of the costs
being attributed by a methodology.
We do not document every single item of revenue, cost and capital employed because the 90% coverage applied
identifies substantially all of the different ways in which attribution is carried out.
8
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
3 Overview
3.1 Basis of preparation
The Regulatory Financial Statements (RFS) show costs, revenues, assets and liabilities on a current cost accounting (CCA) basis,
for the defined regulatory Markets, Technical areas and the Disaggregated activities of BT.
The source of the financial data is the central ledgers and consolidation system for BT, where financial transactions are recorded
by the organisational units within BT, supplemented by CCA adjustments as described in the Detailed Valuation Methodology
(DVM). Accounting Separation (AS) uses this information to present costs, revenues, assets and liabilities for each of the
Markets, Technical Areas and Disaggregated Activities defined for regulatory purposes.
3.1.1 Source of transactions
The historical cost, financial transactions and balances for use in the separated accounts come from two main sources:

The core central General Ledger (GL) system.

The Group Consolidation System (GCS).
Core GL system
The core BT businesses record their financial transactions on a historic cost basis in the core GL system. These ledgers are
supplemented by feeder systems that capture details at transaction level of:

Pay.

Stores.

Other costs.
Transactions relating to engineering activities are collected and posted to the ledgers at Class of Work (CoW) level. CoW specifies
the type of activity or asset type on which the engineer is engaged. Transactions for non-engineering activities are captured in
the GL against the relevant functions involved (e.g. marketing, billing, etc.).
Consolidation system for self-accounting units
The non-core BT businesses do not use BT’s core GL to record their financial transactions and instead provide details of their
financial information on a Group Financial Return (GFR). GFR follows a standard format, allowing individual GFR line items to be
mapped to a special GL code for use in the AS system.
CCA Adjustments
The current cost accounting adjustments for BT Group and other adjustments such as accounting journals posted outside the GL
system are also recorded through the GFR system. The adjustments follow a similar mapping, from the GFR to individual GL
account codes, for use in the AS system. CCA adjustments are described in detail in the DVM.
3.1.2 Gross Adjusted Costs
Costs are presented on a ‘gross adjusted basis’, i.e. this reflects all external costs together with all transfer charges between
divisions. There are two main types of transfer charges:

Cost transfer charges between divisions/organisational units, which go through the GLs. Such charges are eliminated in the
consolidated results, and usually in the AS framework, where they are replaced by the underlying cost.

Transfer charges between Markets e.g. from the Wholesale Significant Market Power (SMP) Markets to the BT Retail
Residual. Such charges are calculated and presented only within the AS framework (rather than through the GLs).
3.2 Costing principles
In order to translate the financial information of the accounting ledgers from a functional and organisational view to the
separate Markets, Technical Areas and Disaggregated Activities defined for regulatory purposes, it is necessary to attribute each
financial cost (or revenue, etc.) item to the relevant Market, Technical Areas and Disaggregated Activity.
The AS system achieves this by defining each Market and Technical Area in terms of its Disaggregated Activities (Components,
Retail Products and Wholesale Services) a number of constituent services, and attributing the source costs, revenues, assets and
9
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
liabilities to the relevant services. The attribution is underpinned by a strict set of costing principles as explained in the Primary
Accounting Documents.
Three of the key costing principles are cost causality, objectivity and transparency, which we explain below.
3.2.1 Cost causality
The principle of cost causality requires costs (revenues, assets and liabilities) to be allocated or apportioned to Products or
Components in a way that reflects the way that Products cause or drive the costs to be incurred or revenues to be earned.
In some situations there may be a direct causal relationship between a cost type (and revenue etc.) and a
Component/Product/Disaggregated Activities. In other cases the causal relationship may be built up over a series of
intermediate stages – following a similar principle to Activity Based Costing (ABC). At each stage of attribution, where costs (or
revenues, etc.) flow from one cost category/pool to the next, there should be a causal relationship between cost pools. In such
cases, a basis considered by management to be reasonable is used.
Diagram: Showing costs A to B using causal effect
Originating
Cost Pool
E.g. Billing
postage costs
£200k
Driver of Base:
No of bills sent out by
Product Types
1,000 bills
Product A
500 bills
Product B
500 bills
Product C
Receives £100k of costs
Receives £50k of costs
Receives £50k of costs
For example, Products A, B and C cause the billing postage costs to be incurred through the despatch of bills therefore the cost
driver in this example is the ‘number of bills’.
Specific terminology used within the context of this principle includes:
Cost drivers or ‘bases’
This is the underlying basis on which costs are incurred, e.g. accommodation costs are incurred on the basis of floor space
requirements (with different Disaggregated Activities using different amounts of floor space). The cost driver or ‘base method’
is therefore floor-space (usually measured in metres squared).
Allocation
The item of cost is allocated wholly to a particular Retail Product, Plant Group (PG) or Activity Group (AG), without the need to
split the underlying cost pool.
Apportionment
This is where an item of cost cannot be identified directly with one Product (or PG or AG) and needs to be split across several
cost pools on an appropriate basis. The cost driver will provide an objective basis for splitting the costs, as the cost driver will
show how the cost was caused subsequently the costs are then split in proportion to the value of the driver associated with each
subsequent cost pool. For example, billing postage costs are apportioned between Business and Residential line rental Product
sets, in the proportion of the cumulative number of invoices raised against Business customer accounts to the cumulative
number of invoices raised against residential customer accounts in the same period. The costs are then further split between
Products within the Business and Residential rental product sets on the basis of Ledger product revenue.
Attribution
This is a general term encompassing both allocation and apportionment.
There are certain types of cost (e.g. the costs of the Chairman’s Office) which do not have a causal relationship with any
Products. Additionally, at very detailed levels of reporting, cost attribution may not be possible on a strictly cost causal basis
(e.g. attribution of common marketing costs to a series of similar Products). In such cases, a reasonable method is used.
3.2.2 Objectivity
The principle of Objectivity requires that attributions are determined in an unbiased manner and therefore objective. This
supports the Cost Causality principle, requiring cost attribution to reflect cost causation using an objective cost driver. At very
detailed levels of reporting, cost attribution may not be possible on a strictly cost causal basis (e.g. attribution of common
marketing costs to a series of similar Products). In such cases, a reasonable method is used.
10
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
3.2.3 Transparency
The principle of Transparency requires that the descriptions of the attribution methods should provide sufficient information
such that a suitably informed reader can easily:

Gain a clear understanding of the overall structure of BT’s financial and information systems from which regulatory
accounting data is derived and in particular the processing and ‘cascade’ effect of the intermediate cost centres.

Gain a detailed understanding of all the material methodologies and drivers applied in the preparation of regulatory
accounting data.

Make their own judgement as to the reasonableness of these methodologies and driver data and any changes to them.
3.3 Conceptual model
The AS solution provides a logical structure for the attribution of costs, revenues, assets and liabilities of BT to, ultimately, the
components and Products that aggregate into:

Markets.

Technical Areas.

Disaggregated Activities.

Wholesale Services of BT.
The conceptual model below describes the attribution structure, setting out the key types of cost pool and the flow of different
categories of costs (and revenues, assets, liabilities) through the model. The term cost pool is used as a generic term referring
potentially to a pool of cost, revenues, assets or liabilities.
11
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Diagram: Conceptual Model of BT’s Businesses and Activities
Other Communication
Providers (OCPs)
Charges
Charges
Own Use
AGs
Plant
Groups
(PGs)
Costs
Components
Revenue
Wholesale Services
Costs,
Revenues,
Liabilities,
Assets
Charges
Revenues
Retail Products
Bases
(F8
Organisational
Unit Code
(OUC)
combination)
Initial IAGs
Support Plant
Groups (PGs)
Flow of fully allocated costs
Key
Flow of charges (based on volumes of usage of components multiplied by price)
Constitutes a revenue to Wholesale
Charges constitutes a cost to Retail Products
Constitutes a revenue to Wholesale Services
ConceptualModel_2010
Key for the above diagram
A b b revia tion s
D efin itio n s
R eferen ce C od e
F 8 = group o f G L cod e item s O U C = O rg anisatio nal U nit C od e
-
In itial IA G s
In itial In term ediate A ctivity G rou ps
A G 10 1-A G 11 4
S upp ort P G s
S u ppo rt P lan t G rou ps
A G 14 8-A G 16 4
Im m ediate R etail A ctivities
A G 13 2-13 3
P lant G rou p
P G n nn
N etw ork C om p onents
C O , C B , C L , C N an d C X
O w n U se A ctivity G roup
A G 31 1, 3 12
P rod ucts
P
G roup ed in to P ro duct G ro up s, asso ciated w ith m ark ets in the R eg ulatory
F inan cial S tatem en ts
G
F 8 /O U C
Interm ediate R etail A ctiv ities
PGs
C om p onents
O w n U se A G s
P rod ucts
A b re v ia tio n s _ C o n ce p tu a lM o d e l_ d ia g ra m 1
3.3.1 Attribution of GL/F8/OUCs
Costs, revenues, assets and liabilities form the starting cost pools of the attribution process. These are defined in terms of
F8/Organisational Unit Code (OUC) combinations.
An F8 code is a group of one or more similar GL codes within the core GL system. In an OUC each F8 code can be attributed
using an appropriate cost driver of ‘base methodology’. F8/OUC cost pools are allocated or apportioned to Products,
Intermediate Activities or PGs.
12
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
3.3.2 Attribution of Initial Intermediate Activity Groups (Initial IAGs)
Initial IAGs are intermediate cost pools used to collect costs relating to activities such as fleet, facilities management and
general corporate costs. The category includes the apportionment of specific activity costs for units that perform a service to
other organisation units and recover their costs through a transfer charge. The external costs of the unit supplying the services
are apportioned on the basis of an analysis of the transfer charges to the receiving units. The costs of the Initial IAGs may be
attributed to Products and support PGs.
3.3.3 Attribution of Support PGs
Support PGs are intermediate cost pools used to collect costs relating to plant overheads, such as accommodation costs for
network buildings and costs of providing power to the exchanges and transmission assets. These costs are apportioned directly
to the relevant PGs, which they support.
3.3.4 Attribution of PGs
PGs are intermediate cost pools used to collect costs relating to the BT Wholesale Markets. The PGs carry the capital costs and
values (depreciation, net book values) and expense items (e.g. maintenance) for specific types of network assets, as well as
other general costs allocated to PGs via Initial IAGs and support PGs. PGs are attributed to Network Components on a one to one
or one to many basis. A PG could contribute costs to many Network Components, and a Network Component could receive costs
from many PGs. Examples of PGs are Local Lines Fibre Cable (Current and Capital) and Main Digital Exchange Switch block.
3.3.5 Attribution/Charging of Network Components
Network Components collect costs from the PGs and constitute discrete parts of the network. The Network Components (which
are in some cases grouped for presentation in the RFS) are used to provide network services to Markets and Products as well as
to Other Communication Providers (OCPs). Network Components are charged to Services or OCPs via Standard Services.
Calculation of charges for Network Components may support Standard Services or be consumed directly (non Standard
Services), and the charging structure is different for each.
Standard Services are segments of the network that represent a bundle of network Components. The Standard Services provide
use of the network to both BT regulatory businesses (e.g. BT Wholesale) and OCPs and are charged at a price subject to a system
of charge controls, referred to as the Network Charge Control (NCC) regime. Standard Services are bundles of one or more
Network Components that are not subject to the NCC regime.
Products that use Standard Services are charged for the use of the constituent Network Components based on the NCC charge
(calculated outside the AS system).
Non Standard Services are charged for the use of the constituent Network Components on a ‘cost-plus’ basis. This is calculated
using the fully allocated unit cost of the network Component calculated on a current cost basis plus a return on the mean capital
employed of the underlying Component. This is calculated using the ‘fully allocated cost’ results at the Network Component
level from the AS system. The charge applied to the different Products using the Network Components (via the Standard
Services or non-Standard Services) is calculated as:
Volume of
usage by
Product
Multiplied by
Unit
Charge
Equals
Charge Applied
ChargingofNwkComponents
3.3.6 Attribution of ‘own use’ of Network Components
When we use some part of a Network Component to support our own activities, we call these ‘own use’ components. For
example, we make calls to, from and within BT to support a whole range of activities. In such cases, we will use the local switch
and will therefore generate local switch costs which are attributed to the activities that generate calls.
Own use typically relate to activities in support of Retail Residual and therefore be apportioned to Retail (and other) activities,
on an appropriate basis.
13
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
3.3.7 Products and Product Groups
By the end of the final stage of attribution from Network Components and own use AGs to Products, all the non-network costs
and the network charges are attributed to Wholesale Services. Retail Products or Wholesale Services can be grouped together to
represent the distinct Markets, Technical Areas and Disaggregated Activities defined for regulatory purposes.
3.3.8 Current Cost Financial Statements (CCFS)
AS processes information for key tables in the CCFS as follows:
Current cost financial statements
Description
Consolidated Performance Summary (Annex 3)
Shows the performance of:
The consolidated Access and Wholesale SMP markets
The consolidated performance of the Wholesale and
Retail Residual activities
Attribution of Wholesale Current Costs (Annex 5A)
Shows the P&L costs of Access and Wholesale SMP
markets by reported cost sector
Attribution of Wholesale Current Cost MCE (Annex 6A)
Shows the MCE costs of Access and Wholesale SMP
markets by reported sector
Financial Performance in Access Markets (Annex 7)
Shows the financial performance of individual Access
Markets
Financial Performance in Other Wholesale Markets (Annex 8)
Shows the financial performance of individual Wholesale
markets
Individual Market Reviews (Annex 11, 12 & 13)
Reviews of Access and Wholesale Markets
Shows by individual network components:
Fully allocated costs, plus
Network Activity Statement (Annex 15)
Capital costs by network component (calculated as mean
capital employed multiplied by return on capital)
Calculation of FAC based on component costs and usage factors (Annex 16)
SMP service fully allocated cost calculated using
component costs and usage factors.
BT Network Services Reconciliation (Annex 17)
A summary of all wholesale markets where there are cost
accounting obligations by fully allocated component.
BT Reconciliation Statements (Annex 19 and 20)
Reconciliation of BT Markets to BT’s Annual Report
3.4 System process
BT uses a system called ASPIRE to perform the fully allocated cost attribution for AS. The system defines different categories of
costs, which are treated in a similar manner in the system. At each level of the system processing, a particular category of costs
will be emptied (attributed) to other cost pools, and usually receive no further costs itself. This causes a sequential flow of costs
across different categories at each stage of the system, with all the costs ultimately emptying into the end Product categories.
The process of cost pools emptying as the costs are attributed forwards is referred to as ‘exhaustion’.
The diagram below illustrates the main processing stages of the ASPIRE system for AS.
Diagram: Overview of ASPIRE’s main processing stages for AS
14
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Processing levels/sequence
Revenue and cost data
General ledger feed
Group Financial
Return (GFR)
extract
Source cost centre
Attribution of costs, revenue, assets and
liabilities (fully allocated costing)
Key Interfaces
Level 1
Level 2
Costs,
revenues, AG101
assets,
-106,
liabilities, AG111
at F8
OUC level
Level 3
Level 4
Level 5
Level 6
Level 7
Level 8
Level 9
Level 10
AG112
AG113
AG114
AG120
- 129
AG130
- 139
PGs
AG213
NCs
AG300s
Prods
PGs
AG300s
Prods
Exhausted to:
Other transaction data
AG113+ AG114+
AGs
AG112+
PGs
PGs
PGs
PGs
Prods
Prods
Prods
Prods
Prods
NCs
Prods
Attribution of
charges
Price data (NCC or cost plus)
Level
8
NCs
Std &
non std
services
Level 9
Std &
non std
services
AG300s
Level 10
AG300s
Prods
Prods
SystemProcess_diagram
3.4.1 Key Interfaces
Different types of data are fed into ASPIRE tables from a number of sources. The diagram below illustrates the main types of
transaction data entering the ASPIRE system prior to processing:
Overview of Data entering ASPIRE
Financial Accounts Data
Non- Financial Accounts Data
Core General Ledger
(GL)
Feed
Non Core General Ledger
(GL) Feed
Bases Data
Volumes Data
- by sub- product
ASPIRE
Turnover to Product
relationship
CHART
Data_ entering_ Aspire_ 041006. vsd
KeyInterfaces
All of the above data types, except for the core GL feed are uploaded to ASPIRE via a data management and validation system
called ASSURE to ensure data integrity and maintain version control.
Financial account data
In the first stage of the system process, the cost, revenue, assets and liabilities for apportioning are brought into ASPIRE. This is
done through two main feeds:
Core GL feed
15
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
The core GL feed provides values for costs, revenues, assets and liabilities at GL account level. This covers areas of the business
that use the central accounting system and GL for BT (i.e. excluding the Self-Accounting Units). The information is input into
ASPIRE via an automatic upload.
Non-core GL feed
The non-core GL feed provides values for costs, revenues, assets and liabilities for parts of the BT business that do not use the
main central accounting systems and GL. These parts of the business (‘Self-Accounting Units’) provide financial information on
a GFR, with information reported by individual GFR line (e.g. GFR 15642 Other Operating Income - Other). The GFR
information is then updated into a system called Group Consolidation System (GCS), maintained centrally by BT Group.
Information at GFR level from GCS is translated into specific OUC and GL code references, which will be used in the ASPIRE
system. The non-core trial balance feed is then uploaded to ASPIRE (via the ASSURE system) to enable the GL codes, OUC
references and values to be populated in ASPIRE.
Other cost adjustments such as CCA adjustments and accounting journals are also entered into ASPIRE via the non-core GL
feed.
GL accounts are the lowest level at which financial information is brought into ASPIRE. A CHART file is fed into ASPIRE, which
sets out a mapping of GL accounts to F8 codes, sectors, transaction types etc. This is done through a series of markers, which
enable the system to track and report results against a number of views:
Diagram: Overview of a CHART file which is fed into ASPIRE
GL
account
Sub Sector
(LRIC marker)
Finance type
Transaction type
CID1
CID2
CID3
Sub transaction
type
CID4
CID5
SFR Sector
Ownership
indicator
Direct Indirect
CID6
CID7
CID8
F8 Code
SFR Line
CID9
CID10
Core/ NonCore
indicator
Key
CID
–
Central Information Database (see Data Source Section)
Fields
ChartOverview
Non-financial account data
In addition to the basic financial data that will be attributed to Products in ASPIRE, Product volume data and other nonfinancial data for base attribution methodologies are entered into ASPIRE (via ASSURE). For example, data on the square metre
usage of different buildings by different activities would be converted into a set of percentages (representing the proportion of
total space used by each activity) and entered into ASPIRE, for use in the apportionment of accommodation costs on the basis
of floor space usage.
Base and volumes information comes from a variety of sources (e.g. Core Transmission Costing System (CTCS) and Call Statistics
Centralisation System (CSCS) for Product volume data). The data includes a table showing the relationship between revenues
and Products.
3.4.2 System processing levels
Level 1 (Fully Allocated Cost (FAC))
The source cost pools at level 1 are the F8/OUC combinations of cost, revenues, assets and liabilities including current cost
adjustments.
F8/OUC combinations for Revenue are allocated directly to Products and activities at level 1. F8/OUC combinations for costs,
assets and liabilities are allocated to subsequent cost pools and/or Products using a number of possible methods.
The AS solution uses the following types of method, which are processed in the following order by the system:
Attributions using ‘external data’ base methodologies:

Allocation directly to a specified cost pool on a one to one basis.

Apportionment to subsequent cost pools on the basis of non-financial data.

Apportionment of overheads of certain OUCs to subsequent cost pools using specific information.
16
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Attributions based on results of previous apportionment’s by the system.

Apportionment to subsequent cost pools in proportion to Revenue.

Apportionment to subsequent cost pools in proportion to the pay costs (per pay - type F8 codes) received by those cost
pools.

Apportionment to subsequent cost pools in proportion to a specific type of pay costs (per specified restricted pay - type F8
codes e.g. maintenance pay F8 codes) received by those cost pools.

Apportionment to subsequent cost pools on the basis of previously apportioned costs pan-divisional.
Level 2 (FAC)
The IAGs (AGs 101 and 106) are attributed to subsequent AGs, PGs and/or Products.
Levels 3 – 5 (FAC)
At level 3, AG 112 Corporate Overhead Costs are apportioned to subsequent AGs, PGs and/or Products. This is followed by the
apportionment of AG 113 Total Liquid Funds and Interest (cash and bank balances, short-term investments and borrowings,
etc.) at level 4, and AG 114 Non-Core residual balances at level 5.
Level 6 (FAC)
At level 6, the support PGs and Liquid Funds (Network) are apportioned to the PGs to which they provide support.
Level 7 (FAC)
At level 7, the intermediate retail activities are apportioned to the Products driving the retail overheads.
Level 8 (FAC)
Level 8 performs the attribution of PGs to network components. This takes place over a number of discrete stages in the
Network Cost Apportionment Module (NCAM) of the system:

PGs are assigned to network components using apportionment percentages held in fixed base tables.
It should be noted that other Retail Residual (i.e. apart from the Wholesale Markets) ‘own use’ of network components remains
within the network components at this stage, this ‘own use’ is extracted at the next stage of processing, for attribution to
intermediate services (including network own use).The key stages of processing for Network charges, which also start at level 8
in the system, are as follows:
Level 8.1 (Network charges)
Level 8.1 performs the calculation of charges by Network Components, using the following data source/s:

Network Components used in Standard Services - prices are taken from NCC price lists outside the system.

Network Components used in Non Standard Services - prices are calculated (outside this module) by taking the Fully
Allocated Costs (FACs) of network Components (per the output from the Fully Allocated Costing (FAC) module), with the
price calculated as cost plus a return on capital employed (including network own use).
The processing level 8.2 attributes Network Components to Standard Services (or Non Standard Services) based on the volume
of usage by the Standard or Non Standard Services.
At level 8.7 all Network components have been fully allocated to services.
Level 9 (Network charges)
At level 9 of the processing, the Standard or Non Standard Services are attributed to Products and the AG 300s.
Level 10 (Network charges)
At level 10 of the processing, the AG 300s are attributed to final Products.
3.4.3 Controls
There are a number of controls in the AS system to ensure the accuracy and completeness of the results. The key controls
include:
AS data vetting system
All data entry to the ASPIRE system, except the direct interfaces from the GL, takes place through the ASSURE system. The
ASSURE system manages version control and improves data integrity. Data is entered or loaded into ASSURE via a bespoke user
interface system, and can be managed and reworked in a variety of ways. Once a table has been updated, it is changed from a
17
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
‘Local’ to ‘Global’ phase. It cannot then be re-edited unless it is changed back to ‘Local’ by the Run Control Manager, which
helps to ensure data integrity. Once data has been collected from all the users it is submitted to an ASPIRE run and cannot be
altered after that point.
Specification of data sets for runs
Each run of the system is given a unique reference, which dictates the combination of data sets and reference data to be used in
the run. These are determined from electronic control sheets to effectively ‘commission’ the run.
Completeness of processing
ASPIRE produces a series of ‘Probity Reports’ to show the completeness of processing at each level of the system.
3.4 Transfer charges as a basis for cost attribution
A number of the individual methodology/base descriptions set out in Section 4 (Base Methodology Dictionary) refer to the use
of an internal transfer charge destination as the basis for attribution of the actual cost underlying the transfer charge within the
AS process. This section explains the rationale for using this basis.
The purpose of transfer charging is to:

Enable customer-facing divisions, which are responsible for their own profitability, to receive a correct allocation of
income and expenditure.

Enable support functions to charge for their services to other group units.

Enable control to be exercised over use of key resources.

Maintain proper control in accounting units of certain balance sheet items.
Inter-business transactions are accounted for on a basis consistent with that for third parties external to the BT Group and are
subject to the same degree of internal control. All transfers are supported by written agreements between units, which are
known as Transfer Charge Agreements (TCA). The name of the Inter-business transactions system used for transfer charging is
The Inter-business Transfer charge Agreement Network (TITAN).
OUCs at the order level or as detailed in the TCA are accounted for on TITAN and the Core Ledger. Unless otherwise agreed as
part of the Transfer Charge agreement process, the settlement is normally due by the 15th working day of the following month
for other bills. There is also a formal process to deal with disputes.
Transfer charges can be made by:

TITAN.

Minified (File Transfer).

By automatic Journal Voucher (JV) (Direct Cost Transfers).

By standard JV in the Ledger.
The appropriate method to be used is set out in the TCA.
Inter-business transfer charges are reported by sector.
There is a well-established process for the recording of transfer charges between organisational units, and for the monitoring
and control by each unit to ensure that the amount of the charge is properly stated in accordance with the TCA, and that the
amounts are recorded in the correct organisational unit.
Within the AS process, the transfer charge amounts recorded by each unit are replaced with the actual cost underlying the
charge, and for which the charge is made. The actual cost is then attributed consistent with the treatment of the transfer
charge. This occurs principally in respect of the following types of cost and is attributed on a cost-causal basis:

Motor transport – charged on the basis of the number and types of vehicles used by each OUC.

Computing – charged on a monthly fixed charged, taking account of variations in volumes e.g. a reduction in volumes will
result in lower charges.

Accommodation – charged on the basis of floor space occupied by each organisational unit, taking account of the
variations in underlying cost (e.g. a central London office space being charged at a higher rate than an office space in a
rural location).
3.5 Use of System Generated Bases
In some instances, the regulatory accounting process uses previously attributed costs as the basis for further cost attribution.
These bases are system generated. A report is run from the accounting system that shows how costs (or, where relevant,
18
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
revenues etc.) have been attributed to Products, so that we know what proportion of previously attributed costs has been
attributed to Product 1, Product 2 etc. The costs subject to the system generated base are then attributed to Products 1, 2 etc.
in these same proportions. For example, supervisory and management labour costs are considered to be incurred in support of
the range of activities supervised and/or managed. Accordingly, the supervisory pay costs are attributed as an overhead of the
underlying directly apportioned costs.
If an OUC, for example PQR1 is engaged in maintenance activity, and the pay costs that result from such activity are attributed
to Products 1 and 2 in the ratio 60:40, then the supervisory costs incurred in OUC PQR are also attributed to Products 1 and 2 in
the same 60:40 ratio. The system generates the base because it is used to determine the 60:40 split of the underlying
maintenance costs incurred by OUC PQR1.The system base is generated using data designators. These define either:

Bases that attribute costs and capital employed to cost centres using revenue information.

Bases that apportion specific cost centres on the basis of revenue or previously apportioned costs pan-divisionally.
3.5.1 Attributing costs and capital employed using revenue information.
These bases are used where relevant revenue is an appropriate measure of the cost incurred. In the ASPIRE System bases using
revenue are known as Rule Type 2 and Rule Type 12 bases. Below is an example of a Rule Type 2, details of a Rule Type 12 are
detailed in 3.5.2.
Example using revenue Rule Type 2:
Revenue £k
-14,985,365
-14,985,365
Product
%
Product
Revenue £k
Normalised
Normalised %
Cost ledgered to F8 code
0.7592
P138
-113,763
86.741
992
0.1160
P139
-17,389
13.259
152
99.1248
Rest
-14,854,213
100%
1144
201821 (Rule Type 2 PTJ) £k
100%
-14,985,364
-131,152
Each base references using revenue has two markers:
a) The Primary data designator 1 (DD1) specifies the appropriate revenue to be used. All Rule Type 2 bases have one of the
following references as their primary data designator.
Income Reference
Primary Data Designator
Cost type driven by the attribution base
INC
DTTK
Total group income
INC_CON
DTTG
Total connections income
INC_REN
DTTH
Total rentals income
INC_SAL
DTTL
Total income received from the sale of apparatus
b) The Secondary data designator 2 (DD2) specifies the cost centre range to which the costs are attributed. Those bases falling
within the DAM 90% rule are summarised below and described in more detail in Section 4 of the DAM.
Primary Data
Designator
Secondary Data
Designator
Driven by incomes arising
from:
Cost type driven by the attribution base
DTTK
INC_PBB
Incomes arising from
Customer Service System
(CSS) billing units
Trade receivables arising from Customer Service
System (CSS) billed income
DTTK
INC_PBC
Incomes arising in private
circuits units
Trade receivables arising from manually billed
income for private circuits
DTTK
INC_PBCA
Incomes arising from private
Accrued income arising from private circuit rebate
19
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Primary Data
Designator
Secondary Data
Designator
Driven by incomes arising
from:
Cost type driven by the attribution base
circuit rebate accruals
accruals
DTTK
INC_PBG
Cost incurred by VAT
rateable OUC Codes
VAT payable
DTTK
INC_PBN
International telecoms
activity
Deferred income from International telecoms
activity
DTTK
INC_PBOP
Operator controlled retail
calls incomes
Accrued income arising from operator controlled
retail calls
DTTK
INC_PBT
Incomes from Customer
Service System (CSS), Private
Circuit billing, Telex and
Direct Sales Ledger Billing
Deferred income arising from the systems listed.
DTTK
INC_PBW
Geneva incomes
Deferred income from Geneva system
DTTK
INC_PTBE
International Operator
Assistance and International
Private Circuit incomes
International customers trade receivables
DTTK
INC_PTBR
Business ISDN, telephony,
Featureline and Highway
Connection Product incomes
Contract Liability arising from BT’s Keeping You
Connected agreement
DTTK
INC_PTE
BT Global Linkline and
Callstream Product incomes
Provision for BT Global Linkline and Callstream
Products
DTTK
INC_PTJ
Payphone Products income
Receivables associated with BT Payphones
DTTG
INC_CON_PTA
Business customer income
Contract liabilities for penalty costs for failing to
meet connection targets between BT and business
customers
DTTG
INC_CON_PTD
Business Private Circuits
Provision for Contract liabilities for penalty costs for
failing to meet Private Circuit connection targets
between BT and business customers
DTTG
INC_CON_PTH
Residential customer income
Contract liabilities for penalty costs for failing to
meet connection targets between BT and residential
customers
DTTH
INC_REN_PBL
Private Circuit rental Product
income
Deferred income associated with rental income
received from BT Retail Private Circuits Products
DTTH
INC_REN_PBR
Retail rental Product income
Rental receivables ledgered in the Customer Service
System (CSS) billing system
DTTH
INC_REN_PBRA
Retail Product income
excluding Apparatus,
Supplemental service and
Residual Products
Receivables arising from rental income in
CellStream/ATM, FrameStream and Switched Multimegabit Data Services
DTTH
INC_REN_PTF
Business ISDN, telephony
and Highway Rental Product
income
Contract liability arising from BT’s “Keeping you
connected” agreement with Business customers
relating to repair and missed appointments
20
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Primary Data
Designator
Secondary Data
Designator
Driven by incomes arising
from:
Cost type driven by the attribution base
DTTH
INC_REN_PTI
Residential telephony and
Highway Rental Product
income.
Contract liability arising from BT’s Keeping You
Connected agreement with Residential customers
relating to repairs and missed appointments
DTTL
INC_SAL_PBB
All Retail Products except
Private Circuits and
Payphones Product income
Retail sales receivables arising from the Customer
Service System (CSS) billing system
DTTL
INC_SAL_PBG
All Retail Product income
Receivables related to direct sales and accrued
income
DTTL
INC_SAL_PBT
Retail Products sales income
Retail deferred income for sale in advance
3.5.2 Apportioned to specific cost centres on the basis of previously apportioned costs pandivisionally
These bases (known as Rule Type 12s in the ASPIRE System) apportion group costs, revenues and capital employed across
multiple business units. These bases are assigned two markers that govern:
a) The Primary Data Designator 1 (DD1) – Identifies the income/cost transactions the system should draw upon to calculate the
appropriate base.
Primary
Designator
Transactions drawn upon
Cost type to be driven
CAPEXP
All non-pay capital additions (purchases of
fixed assets)
Capital expenditure payables
CONOTH
All income relating to connection charges,
other single payments and maintenance
received by BT during the year
Accrued income
DTTCP
All Trade Receivables ledgered by BT during
the year
Balance Sheet bad debts
INCCAL
All gross call income received by BT during
the year
Accrual for call discounts (VRUF) calls not yet billed
by BT Retail
INCDIS
All gross call discounts levied by BT during
the year
Accrual for call discounts (VRUF) calls not yet billed
by BT Retail
INCPOA
All gross income received from other
administrations by BT during the year
Receivables relating to income from overseas
administrations
MANBIL
All rental, other single payments and
connection charge related income received
by BT during the year
Payables arising within BT Retail
NETCAL
Net call income
Receivables arising from direct Customer Services
System (CSS) dialled calls
OPEACN
Accommodation costs
Sundry receivables and payables arising from
accommodation costs
OPECST
External operating costs excluding pay,
depreciation and capital additions
VAT related payables
21
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Primary
Designator
Transactions drawn upon
Cost type to be driven
OPEOTH
Total operating costs, excluding
depreciation and pay costs
Prepayments
OPEPST
External operating costs, excluding
depreciation, pay and POAS
Miscellaneous trade payables
OPEXPS
All operating costs, excluding depreciation
incurred by BT during the year
Prepayments receivables
REDUND
All redundancy and new start pay costs
Redundancy creditor accruals
TOTINC
Income received by BT from connection
charges, other single payments and rentals
Miscellaneous receivables arising from the Customer
Services System (CSS) ledger
TOTPAY
Total capital and current pay costs
Payroll related receivables and payables
b) The Secondary Data Designator 2 – Identifies the AS cost centres to which the divisional balances should be apportioned.
Secondary
Designator
Destinations of previously attributed relevant costs (e.g. accommodation costs, payroll costs) to
be taken into account in deriving the base
ACC
All core Products except private circuits
ALA
Majority of all Products, AGs and PGs excluding Openreach PGs
ALL
All AS cost centres excluding Openreach PGs
ALLA
All AS cost centres
BSA
All Private Circuit Products and telex
BSB
Products which generate income from incoming traffic (primarily international private circuits)
BSC
Public Switched Telephone Network (PSTN), payphone and international Integrated Services
Digital Network (ISDN) Products and international private circuit Products
BSG
Telecom Red related cost centres
BSH
Payphone related cost centres
COR
Substantially all core Products and PGs excluding Openreach PGs
CORA
Substantially all core Products and PGs
CSS
All Products except for private circuits and other Products not billed from Customer Service System
(CSS)
NET
Linkline and Global Services Products (P056, P263 and P346)
ORP
All Openreach cost centres
PENA
All units in the BT Pension scheme i.e. all UK specific Products, e.g. core Products and PGs
SYBA
All units in the BT Sharesave scheme i.e. all UK specific Products, e.g. core Products and PGs
22
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
3.5.3 Apportioned on the basis of pay costs
System generated pay bases can draw on previously apportioned pay costs in a variety of ways. For example the TOTPAY pan
divisional base described in section 3.5.2 draws on all pay costs on a pan divisional basis BT wide. Another type of base (known
as a Rule Type 6 in ASPIRE) draws on previously apportioned pay costs specific to a Line of business. Using this base it is also
possible to restrict the calculation to specific parts of a Line of Business drawing on previously apportioned costs within a
defined organisational range (exceptional OUCs are cost centres whose costs are attributed using different bases compared to
the “standard” methodology used by other OUCs for any give cost type).
The table below lists all the major Rule Type 6 bases.
Designator
Procedure
FTD
This base is compiled from previously allocated Maintenance pay F8 codes, (excluding exceptional OUC
pay)
FTK
This base is compiled from previously allocated Provision and Installation and Maintenance pay F8 codes
(excluding non-core pay and exceptional OUC pay)
FTQ
This base is compiled from the previously allocated Capital and Current pay F8 codes (excluding non-core
pay and exceptional OUC pay)
A further type of pay base is known as a Rule Type 4 in the ASPIRE system. This base is similar to the Rule Type 6 base but draws
upon apportioned pay within specific OUCs including exceptional OUCs. This RT4 pay base has one data designator called PCT.
The PCT designator offers the ability of specifying a range of Wholesale, Openreach, Retail and Global Services cost centres to
which the cost should be apportioned. This type of base can be used where the engineering Travel and Subsistence of certain
OUCs has to be apportioned over a limited range of PGs using a pay base specific to the PGs supported by those units.
3.6 Sectors
BT defines its main activities in terms of ‘sectors’ for reporting purposes. The sectors show the:

Main types of services provided by BT - with revenue recorded against these services.

Main functional activities performed by BT - with operating costs incurred against these activities.

Main fixed assets underpinning BT’s activities - with fixed asset values and costs recorded against these assets.

Other assets, liabilities and provisions incurred by BT in support of its services and activities.
There are two types of reporting sectors:
a) Internally reported ASPIRE sectors
Each of the internally reported sectors contains a number of F8 codes, which represent groups of GL codes for costs, revenue,
assets and liabilities. The F8 codes provide the starting point for the attribution of costs, revenues, assets and liabilities in the AS
system.
b) Externally reported SMP sectors
F8 codes in an ASPIRE sector are attributed to Wholesale services and Retail products using specific bases. Once revenues and
costs are attributed, each service can still be reported by ASPIRE sector. Wholesale ASPIRE sectors are further grouped into
higher level “SMP” sectors for external reporting purposes as agreed with Ofcom. We provide a mapping of ASPIRE sectors into
reported Wholesale markets in Section 3.6.2.
3.6.1 Sector Allocations
This section provides a description of ASPIRE sectors covering 90% of the absolute value of the cost allocation for each sector
and details of cost booked. We separately include in Appendix F a table which shows the allocations from the F8 cost or income
pools in each sector with a summary description of the base allocation method. Detailed descriptions of each base are provided
in sections 4, 5 and 6.
3.6.1.1 Revenue
BT generates revenue on a range of different types of service provided to customers. Revenue is grouped into the following
sectors and all relate to Retail activities:
23
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Ref
A1
A2
A3
A4
A5
A6
A7
A8
A9
AA
AU
AW
Sector Description
Sales
Connection Charges / Other Single Payments
Rentals
Enhanced Maintenance
Calls - Gross
Calls Discount Facility Fees and Adjustments
Call Payments to Service Providers
Receipts from Other Communications Providers (OLOs) / Other Administrators (OAs)
Fixed Fee Options
Other Revenue
Supply of Service Out - Prod Specific
Intra-group Elimination
3.6.1.2 Operating Costs
This section describes BT’s activities that generate a range of operational and supports activities to provide services to its
customers. Costs are recorded against the following sectors:
Ref
B0
B1
B2
B4
B5
B6
B7
B8
B9
BA
BB
BC
BE
BF
BG
BK
BU
BV
BW
C1
C2
C3
C7
F0
F1
F2
F3
F4
F5
F8
T3
U3
Sector description
General Support
Provision & Installation
Maintenance
Planning & Development
Operator Services
Supplies
Transport
Marketing & Sales
Finance & Billing
Computing
Customer Service
Accommodation
Personnel & Admin
General Management & Other
Standard Labour Rate Cost (SLRC) Variance
Plant Support
Elimination of Intra-group
Customer Support
Bad Debts
Other Operating Income
Payments to OLO
Payments to OA
Internal Product Charge from Core
Spec Item Interest
Employee Profit Sharing
Net Short Term Interest
Associated Companies
Corporation Tax
Deferred Tax
Preference Dividend Payable
Divisional Support Service Out
Divisional Support Service In
Sector B0 - General Support
The General Support sector covers a range of support activities and costs such as:

Staff costs - for people (non-engineering technical grade) working on systems support activities, where systems support
activities are defined as indirect costs for support of the telecommunications network (including expensed plant, cost of
repayment works, etc.) as well as costs of agency staff working on system support activities.

Phonebooks general costs - including non-pay expenditure for paper costs and non-pay expenditure for delivery charges.
24
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Payments relating to Wayleaves in respect of telephone network plant (where Wayleaves enable access to another person’s
property to gain access to the telephone network) and payments for the BT license fee.

Transfer charges in to different business units for technical research and development work performed by BT Operate and
Design.
Sector B1 - Provision and Installation
BT provides a range of services to customers, which require network provision and installation activities to enable these services.
Installation activities involve the physical installation of network equipment, cable and/or customer premises equipment to
provide network connectivity and other services to customers. This may involve the purchase of new equipment to support the
services required by the customers, or may involve the deployment of existing equipment and network assets for use by the
customer.
Provision activities involve work to activate and enable the service to a customer. This may involve software configuration to
activate or de-activate particular services, using the underlying physical equipment and network provided through installation
activities.
Provision and installation activities support a wide range of services requested by customers, such as:

Business or residential exchange lines - providing business or residential customers with exchange lines connecting their
business premises or homes to the local exchange, to allow the provision of voice and data services over the PSTN.

Jumpering in exchanges - installing or connecting the jumpers (connection wires) in the local exchange to connect or deconnect local exchange lines.

Private circuits - installing private circuits for customers e.g. MegaStream or KiloStream private circuits. This involves, for
example, jumpering (the setting up and installation of a private circuit at the customer premises) and the end-to-end
testing of the circuit.

Local area networks - installation and connection of local area networks in customer premises.

Apparatus to customers - installing apparatus in customer premises, such as switches for business customers, answer
machines etc.
Sector B2 - Maintenance
In order to operate a network in good working condition to meet service requirements, BT performs activities to test, maintain
and repair the network e.g. scheduled maintenance of particular network assets or ad hoc maintenance problems reported by
BT staff or customers.
The key components of the maintenance activities are:

Test equipment - testing network equipment as part of scheduled maintenance work or in response to a reported problem,
identifying and diagnosing preventative or corrective work required.

Plan maintenance - identifying the type of maintenance activity required and the resource requirements (e.g. materials
and man-hours of work) to perform the work, planning the schedule to perform routine and ad hoc maintenance activities.

Perform maintenance - carrying out maintenance work to keep network assets and equipment in working order or to
perform repairs to faulty assets, test the assets and equipment to confirm its working order, supervise and review the
quality of the maintenance work performed by engineering staff.

Service guarantees - assess repair intervals against guaranteed timescales, provide compensation payments where
required.
Sector B4 - Planning and Development
Planning and development covers the planning of the network (e.g. areas of network build) and the development of new
technologies and service offerings. The key F8 codes include:

Pay costs for operational planning - This covers the costs of planners’ time spent on planning and development activities.
The planning usually relates to specific jobs, with time recorded against individual jobs.

Costs of planning agency staff - This covers payments for agency staff employed on activities defined as planning and
development. It covers costs for telecommunication network planning, utilisation and development costs attributable to
product research and development.

Research and Development contracts - In addition to Research and Development activities performed by BT or agency
staff, BT contracts out Research and Development to companies with specialist skills.

Transfer charges between different business units in BT for planning and development activities performed by one area of
the business on behalf of another. These items are shown in the F8 codes starting with ‘24’ for inward transfer charges
(costs).
25
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Sector B5 - Operator Services
BT offers operator services to customers, such as operator assistance (OA) services, emergency calls and directory enquiry (DQ)
services.
Sector B6 - Supplies
BT performs activities associated with the procurement of materials and services (to support business operations) and the
issuing of supplies from stores such as:

External remote sourcing - overseas outsourcing of finance and accounting work.

Logistics and Procurement - pay - staff cost in respect of personnel involved in work associated with supplies, for example,
storekeepers, managers and other logistical support staff.

Freight and carriage - costs associated with items held in stores.

Tools and small stores - tools and small items issued via the central Automated Supply Chain (ASC) from stores.
Sector B7 - Transport
BT operates a range of transport vehicles to support its business activities. Costs include:

Acquiring vehicle fleet.

Maintaining/leasing cars and commercial vehicles.

Managing cars and commercial vehicles.

Retiring cars and commercial vehicles.
The organisation units relating to BT UK Business Service and Fleet Partners incur much of the external costs of operating the
fleet such as vehicle license costs, fuel costs and costs of vehicle spares and parts.
In addition to the external costs, the sector shows internal transfer charges, with a large number of OUCs incurring transport
hire costs through the transfer charge against F8 code 246294.
Sector B8 - Marketing and Sales
We perform a range of marketing and sales activities designed to retain and win business from existing and new business and
retail customers. For example:

Conducting market research - to gain intelligence on BT’s markets and understand the demands of our customers and
competitor services.

Providing marketing services - This covers the design, planning and implementation of marketing activities, publicity and
promotions. We work with a variety of external organisations (e.g. marketing organisations) to develop and deliver
marketing initiatives.

Managing contact with customers - This covers activities to handle contact with customers (e.g. responding to customer
calls), identifying the type of customer and logging details of the contact.

Handling customer orders - This covers activities to understand the specific needs of the customer, confirm their credit
vetting, and determine the feasibility of meeting the order requirements. It also covers activities to develop a specific
solution for the customer and determine price quotes for the services offered.
Sector B9 - Finance and Billing
This sector contains costs incurred from various activities of a financial nature, such as budget building and management
reporting, and costs incurred to generate a bill for the customer and collect payment. This includes:

Accounting and General Finance activities such as:

Financial and management accounting.

Budgeting and forecasting.

Treasury.

Internal audit.

Accounts payable processing.

Payroll processing.
26
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Billing activities such as:

Customer billing.

Remittance processing.

Customer service.

Credit control and management.

Bad debt costs from writing off amounts that cannot be collected from customers.

Post Office handling costs for a service provided by the Post Office that allows BT customers to make bill payments over
Post Office counters. BT pays a commission for this service.
Sector BA - Computing
Computing activities are undertaken primarily by BT Operate and charged to the rest of BT Group for their use of the services.
Computing activities include:

Computing Operations - such as the hosting of applications on mainframes and UNIX machines, on behalf of users of the
applications in BT Group and general application support.

Research and Development - Computer development activities include upgrades to existing applications and systems in
response to user requests, maintenance of software applications used by BT, provision of sales support to other parts of the
business and general support and help-desk.

User-support to BT staff - Installing and setting up new computers for users, providing helpdesk and desktop support
services to users (including answering and resolving technical queries and general user problems) and operation of the
BT Intranet.
Sector BB - Customer Service
This sector contains the costs associated with customer service activities performed in the business to maintain customer
satisfaction such as:

Call Centre Management - The Call Centre Management activities provide a direct interface between BT and the customers,
carrying out day to day activities such as taking/making customer calls, progressing queries, liaising with other
departments to find out information regarding customer queries, developing solutions, responding to customer queries,
dealing with customer complaints and providing information to customers (e.g. on services offered by BT).

Customer Service Field Operations - Field Operations activities involve front-line activities to handle faults and perform
maintenance associated with specific customer services. This includes tests to diagnose and repair faults to restore or
improve customer service, with their repair and maintenance work focused on the Access Distribution network. Most of the
activities undertaken by Field Operations relate to ‘Maintenance’ (Sector B2).
Sector BC - Accommodation
This sector covers the costs of accommodation, excluding the asset values and depreciation costs for buildings fixed assets
(which are covered by Sector DQ) such as:

Buildings maintenance - non-pay costs of maintenance and decoration of sites and buildings. Costs incurred are primarily
through orders processed via the Accounts Payable system.

Rent external payments - costs of rent payable to landlords on buildings occupied by BT.

Rates external payments - costs of business rates on land and buildings, payable to Local Authorities.

Building electricity- payments, accruals and refunds associated with electricity supply in both operational and office
buildings.

Cleaning - payments to external contractors for domestic cleaning services in BT accommodation.
Sector BE - Personnel and Administration
The Personnel and Administration sector covers costs associated with the provision of personnel services within BT such as:

Recruitment of staff.

Release of staff/redundancies.

Development and implementation of performance management processes.

Development and implementation of training for employees.

Development and implementation of health and safety processes for employees.
27
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Other Human Resources (HR) support activities.
Sector BF - General Management and Other
This sector shows costs of general management activities and other general expenses .The key items recorded in this sector
include:

NewStart leaver payments - pay costs recorded under the “NewStart” scheme for leavers.

General management pay costs - non-engineering time recording pay costs for people designated with management
responsibility including board members for business units, senior managers and support staff working on general
management activities.

General management and other incidentals - costs such as conference facilities (non-training related) at non-BT premises,
the cost of awards to employees under the ‘Recognition in BT’ scheme and associated administrative expenses, costs of
payments to customers under the ‘Customer Service Guarantee Scheme’ for failure of BT service such as missed
appointments or repeated loss of service or payments for damage caused by BT to property of a third party, non-trade
subscriptions and other incidental costs (low value items).

General legal charges.

Group insurance charges - allocation of group insurance premium costs to business units (from group risk and insurance).

Corporate provisions - profit and loss account costs of a variety of corporate level provisions made by BT.

Non-core other operating costs, wages and salaries, other core costs, intra-group costs - this relates to operating costs
incurred by non-core businesses (i.e. subsidiaries, self-accounting units, etc.), in categories such as wages and salaries,
other operating costs, costs incurred performing work for the core business and intra-group costs.
Sector BG - Standard Labour Rate Cost Variance
This sector contains the cost variances between actual labour costs and the standard rates used for management costing
purposes. Employees time is costed and recorded against activities based on standard labour rates, where the standard labour
rate is calculated in advance based on certain assumptions on the amount of time worked, holidays, etc. The difference between
the actual labour costs and the standard costs are recorded as standard labour rate variances.
Sector BK - Plant Support
This sector contains the costs of activities undertaken to support the running of BT’s Network. The key activities and costs
contained in this sector include:

Rates payable on installations - These are government-levied business rates on BT’s Network installations (external plant
and street furniture) and specialised estates (telephone exchanges, radio stations, etc.).

Coaching pay costs - These are the costs of time booked by Customer Service Coach (CSC) staff. The CSC work with field
operational staff, supporting the activities designed to improve the effectiveness and quality of the teams. Most of the pay
costs for the CSC relate to Engineering and Technical Grade (ETG) staff.

Transmission Repair and Control pay costs - These costs relate to the time booked by staff employed on transmission repair
and control duties on all core transmission equipment and private circuits including helpdesk functions relating to
transmission equipment, handling and analysing alarm reports, controlling transmission planned engineering works, etc.
Most of the pay costs relate ETG staff.

Provision control pay costs - These are costs of time booked by staff working on controlling and supporting the provision,
re-arrangement or cessation of network services. Most of the pay costs relate to ETG staff.

Plant protection and inspection - This covers the pay costs of staff working on plant protection activities and inspections
associated with statutory notices; e.g. inspection of low voltage overhead power crossing clearance, standards of
constructions and clearance of underground cables from telecom plant.

Miscellaneous support work – e.g. the cost of installation (and subsequent recovery) of emergency plant incorporated in
the network at the time of failure of other plant.
Sector BV - Customer Support
The activities covered by the Customer Support sector are similar to those covered by Sector B2 Maintenance.
Support activities include performing diagnostic tests in support of maintenance and repair work, and also the operation of the
work manager system to schedule and control repair and maintenance work undertaken by BT engineers. This includes:

Pay costs for support functions performed by the installation control office; this includes work to assist installation
engineers.
28
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Costs of time managing and operating the work manager system within a work manager centre.

Costs for engineers’ time designated as diagnostic testing offices on diagnostic testing duties.

Costs for control staff time spent on testing and records at repair service controls.
Sector BW - Bad Debt
This sector covers the internal and external costs associated with writing off amounts that cannot be collected from customers.
Bad debt write offs and provisions are separately identified in the ledger for each main billing system and are apportioned to
products by cost bases for Residential and Business Bad Debts and Bad Debt Provision Movements. The majority of these costs
relate to the Retail Residual market.
Sector C1 - Other Operating Income
This sector contains other operating income which relates to non-telecommunications services and is therefore recorded
separately from Revenue (calls, connections and rental charges etc.) of BT. The largest category of income for the core business
(i.e. excluding subsidiaries, SAUs and associates etc.) is the profits on the disposal of land, buildings and sale of scrap copper
cables. In addition, there are a range of smaller sundry other income categories. The sector also contains ‘other income’
categories for the non-core business including the profit or loss made by these companies on the disposal of their land and
buildings and other assets etc.
The key items recorded in this sector are shown below.


Core business

Profit or loss on disposal of land.

Profit or loss on disposal of buildings.

Profit or loss on disposal of networks.
Non-core businesses profit or loss on disposal of land and buildings, other fixed assets and subsidiaries.
Sector C2 - Payments to Other Communications Providers and Sector C3 - Payments to Overseas Administrations
Where BT carries calls to customers that interconnect with another operator’s network, BT makes a payment to OCPs for use of
their network e.g. where BT carries a call originating from a BT customer but terminating on a mobile phone, BT makes a
payment to the Mobile Operator for carrying the call over their network. Payments to OCPs can arise from a number of different
types of usage of Other Operators’ Network. For example, payments may arise from:

Call termination - Calls from BT customers to the telephone number of a customer of OCPs, including mobile providers,
thereby using the other Operator’s network to terminate the call.

Transit traffic - Where BT carries traffic over its network for part of a call, but uses another operator’s network e.g. to
terminate a call. For example, if a call is made from one Mobile Operator’s customer to a customer of a different Mobile
operator, via the BT fixed network, BT would receive a payment for carrying the call, and would also make a payment to
the ‘terminating’ Operator to terminate the call on their network.

Premium Rate Services - Where BT customers make calls to the premium rate service telephone numbers of other
operators, and BT collects the ‘premium’ payment from its customer to pass on to the other Operator.

Freephone - Calls to BT Freephone numbers, where the originating Operator requires payment from BT for carrying the call
made by its customer.
Illustrative example:
BT customer
phone
Remote
concentrator
unit
Local
Exchange
Tandem
Exchange
Other Operator
customer phone
BT payment for use of other
Operator’s network
SectorC2CallTermination
This sector includes all Outpayments for the use of OCPs Networks in the UK and Channel Islands. This includes Outpayments to
the major UK Mobile Operators, Colt, Jersey Telecom, Cable and Wireless Guernsey and cable operators etc. It also includes
payments to Communications Networking Services (UK) (CNS) for outgoing international calls (and international non-call
Products) reflecting the termination charges passed on.
Sector C7 - Internal Product Charge from Core
29
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
This sector contains transfer charges for Products used internally within BT.
For internal management purposes, BT runs a 'transfer-charging' process. GL codes for the transfer charges are set up as
matched pairs, one for the charge out and one for the charge in. These GL codes are associated with F8 codes. Therefore there
will be matching pairs of F8 codes, one for the charge out (F8 codes beginning with ‘24’) and one for the charge in (F8 codes
beginning with ‘28’).
As an example, if 'Unit A' incurs motor vehicle expenses on behalf of 'Unit B', 'Unit A' will have an amount in the 'transfer out'
28xxxx F8 code. 'Unit B' will have an amount in the 'transfer in' 24xxxx F8 code. 'Unit A' will also have an amount in the motor
vehicles expense F8 code.
Sector C7 holds the 'transfer in' 24xxxx F8 codes for internal Product usage so that all internal Product usage is held and can be
measured in one place.
Sector F0 - Specific Item interest
This sector represents the net amount of interest payable and receivable by BT on its bank balance which relates to Specific
items e.g. pensions. There are two main types of interest account contained in this sector; interest payable/receivable by BT
Group (for which the F8 codes start with ‘77’ and the OUCs start with ‘G’).
Sector F1 - Employee Profit Sharing
This sector contains the cost of provisions made for payments under the employee profit sharing scheme.
Sector F2 - Net Short-term Interest
The net short-term interest represents the net amount of interest payable and receivable by BT on its bank balances.
There are two main types of interest accounts contained in this sector, interest payable/receivable by BT Group (for which the
F8 codes start with ‘77’ and the OUCs start with ‘G’) and interest payable or receivable by SAUs and subsidiaries (for which the
F8 codes start with ‘78’ and ‘79’ respectively).
The material balances represent BT’s intra-group interest payable and receivable.
Sector F3 - Associated Companies
This sector holds the profit and loss account value of the share of profit or loss before tax of associated undertakings. The sector
also shows the profit and loss account charges for the amortisation of goodwill arising from the acquisition of subsidiary
undertakings.
Sector F4 - Corporation Tax
This sector contains the profit and loss account costs of corporation tax. This includes the current year corporation tax charge for
BT and subsidiaries, as well as prior year adjustments. It also includes BT’s share of corporation tax payable by associates and
joint ventures. The sector excludes deferred tax (which is covered by sector F5).
Sector F5 - Deferred Tax
This sector contains the profit and loss account costs of deferred tax. This includes the current year deferred tax charge and prior
year adjustments. It excludes corporation tax (which is covered by sector F4).
Sector F8 - Preference Dividends Payable
This sector contains the profit and loss account costs of preference dividends payable on BT shares to third parties.
3.6.1.3 Fixed Assets
This sector describes the main Fixed Assets that underpin BT’s activities and services provided to customers. BT’s main assets are
associated with the telecommunications network although BT also holds a range of general assets such as accommodation and
motor vehicles in support of the network and business activities.
Fixed asset values and depreciation costs are recorded against categories of fixed asset, or ‘CoW’, and grouped in the following
main sectors:
Sector
D1
D2
D3
D4
D8
DA
DB
DC
Description
Access Fibre & Radio
Access: Copper
Access: Duct
Local Exchanges: Digital
Main Exchanges
Core Transmission: Cable & Other
Core Transmission: Duct
Intelligent Networks
30
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
DD
DE
DF
DG
DH
DI
DJ
DK
DL
DM
DN
DO
DP
DQ
DR
DS
DT
E4
E5
E7
EA
EC
ED
EY
EZ
International Transmission
Telex Exchanges and Transmission
Accommodation Plant
Network Power
Capital Miscellaneous
Other Non-Voice Plant
Network Enabling Computers
Private Circuits & SMDS
Public Payphones
Apparatus
Motor Transport
General Computers
Land
Buildings
Accommodation Plant (Landlords)
Office Machines
21 Century Network
Materials Awaiting Installation
Investments
Other Investments
Software
Other Intangible Assets
IFA from Acquisition
Derivative Financial Instruments
Non-Current Assets
Sector D1 - Access: Fibre and Radio
This sector contains the asset values and depreciation for Access Fibre and Radio. The BT network is split into two parts for AS
purposes – Core Transmission and the Access network. The Access network consists of primarily copper but also some fibreoptic cables (also known as “Access Lines”), some radio equipment and all related equipment used to connect the user to the
local exchange. The Access network may also be referred to as the “Local Loop”. This sector contains asset values and
depreciation for:

Access Fibre (optical fibre cables in the access network, and all other necessary related equipment, as required to carry
digital signals between the user and the exchange).

Access Radio (cellular, microwave and satellite radio systems used to connect the user and the exchange).
Specific assets held within this sector (by CoW):

LFDC - Construction of Local Line Optical Fibre Distribution Cable (refer to diagram below). This asset class covers the
provision, re-arrangement and recovery of optical fibre cable, blown fibre tubing, blown fibre bundle, and sub duct in the
access fibre distribution, or site connect network, from the serving telephone exchange to the customer, or from the last
connection point in the access fibres spine or primary network to the customer or Street Multiplexer (the Optical Network
Unit used to terminate an optical circuit at the street).

LFSC - Construction of Local Line Optical Fibre Spine Cable (refer to diagram below). This asset class covers the provision,
re-arrangement, and recovery of optical fibre cable, blown fibre tubing, blown fibre bundle, and sub duct in the Access
Fibre Spine, or Primary, network from the Exchange Termination Point in the exchange Optical Line Terminal (a device
used to terminate an Optical Core), or the Optical Flexibility Frame/Optical Flexibility Rack (on which Optical exchange
equipment is mounted) in the exchange, to the last node point in the Access Fibre network before the customer, or the
Street Multiplexer connection (the Optical Network Unit used to terminate an optical circuit at the street).
31
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Local
Exchange
Spine Fibre
Primary Connection
Point “PCP”
CUSTOMER PREMISES
Distribution
Fibre
SectorD1AccessFibre

LFXE - Construction of Local Line of Exchange Service Module. This asset class covers the provision, re-arrangement,
recovery, replacement and renewal of Local Access Network equipment at the exchange end of Local Access Optical Fibre
Cables e.g. Exchange Service Module (ESM).

LFME - Construction of Local Network Service Module Equipment. This asset class covers the provision, re-arrangement,
replacement and renewal of Network equipment at the customer end of Local Access Optical Fibre Distribution Cables: e.g.
Network Service Module equipment (NUM).

TPWA - Construction of Access Radio Systems. This asset class covers the provision, re-arrangement, or renewal of Access
Network radio Systems.
Sector D2 - Access: Copper
This sector contains asset values and depreciation for Access Copper (copper cables in the access network and all other
necessary related equipment, as required to carry signals between the user and the exchange). Access Copper and is split into
two elements, 'Main' Copper and 'Distribution' Copper, as illustrated below. This sector also contains the Access element of
Asymmetric Digital Subscriber Line (ADSL) and the Access elements for business and residential Home Highway and Exchange
Lines.
Local
Exchange
Main Copper
Primary Connection
Point “PCP”
CUSTOMER PREMISES
Distribution
Copper
SectorD2AccessCopper
Specific assets held within this sector (by CoW):

LDC - Construction, Local Distribution Cable. This asset class covers the provision or recovery of Access Copper Distribution
and Branch Cables applicable to the copper build programme. This covers all work to increase the capacity of the network.
Excludes duct.

LDCR - Renewal, Local Line Copper Distribution Cable. This asset class covers the replacement of Access network metallic
distribution and branch cables, together with ancillary plant, as a result of a fault. Significant Copper pairs must not be
added and the asset value/plant life must not be substantially altered. Excludes Provision or replacement of duct and
associated items.

LMC - Construction, Local/Main Exchange-side Cable. This asset class covers the provision or recovery of Access copper
main cables applicable to the copper build programme. This covers all work to increase the capacity of the network.
Excludes duct.

LMCR - Renewal, Local Line Copper Main Cable. This asset class covers the replacement of Access network metallic main
cables, together with ancillary plant, as a result of a fault. Significant Copper pairs must not be added and the asset
value/plant life must not be substantially altered. Excludes Provision or replacement of duct and associated items.

ADSL - Construction of Digital Subscriber-line. This asset class covers the contract, stores and labour for the construction,
installation, commissioning, replacement, re-arrangements and recovery of ADSL and XDSL equipment at local exchanges
and stores and at customer's premises, to carry broadband services to customers.

HHB/HHR - Business/Residential Highway Provision. This asset class covers the provision of the Network Termination
Equipment (NTE) kit for business/residential Highway installation, including the stores cost of the Highway NTE kit.
32
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Highway is a service, which allows customers to convert their existing telephone (analogue/PSTN) line into a digital line
with the functionality of two digital 64Kbps channels. The class of work excludes provision of network to the NTE.

NWB/NWR - Provision and Installation of Exchange lines (business/residential). This asset class covers Exchange Line
provision and installation for customers on business/residential tariffs from the Distribution Point or from the point where
the Network carries service to more than one Customer.
Sector D3 - Access: Duct
This sector contains asset values and depreciation for Access Duct i.e. Duct in the Access Network through which either Copper
or Fibre cables are routed. The Copper Access network is split into two elements, 'Main Copper' and 'Distribution Copper', as
illustrated below. Duct in the Copper Access network is split into 'main'/'Exchange Side' (Class of Work LMD) and 'Distribution'
(Class of Work LDD) Duct for Copper cable. The fibre Network is split into similar sections; the Exchange side is known as ‘Spine
Fibre’ and the Distribution side is known as Distribution Fibre.
CUSTOMER PREMISES
Distribution
Copper
Local
Exchange
Main Copper
Primary Connection
Point “PCP”
SectorD3AccessDuct
Specific assets held within this sector (by Class of Work - CoW):

LDD - Construction - Local Distribution Duct for Copper Cable - Provision or recovery of distribution and branch duct and
associated jointing chambers for Access copper cables provided within the copper build programme. This covers all work to
increase the capacity of the network.

LMD - Construction, Local main (Exchange-side) Duct for Copper - Provision or recovery of main duct for Access copper
cables provided for the copper build programme. This covers all work to increase the capacity of the network.

LDR - Renewal, Local line Duct for Copper Cable (either Main or Distribution) - Replacement or partial replacement of duct
for Access copper cables to facilitate the replacement of cable following a customer-reported fault.

LFD - Construction, Local Duct for Optical Fibre Cable - Provision, re-arrangement, replacement and renewal of duct for
the installation of sub duct, optical fibre cable, and blown fibre tubing in the Access Fibre Network.
Sector D4 – Local Exchanges: Digital
This sector contains the asset values and depreciation for Digital Local Exchanges, Directory Management Centres and Main
Distribution Frames. The BT network is split into two parts for AS purposes – the Access network and the Core Transmission
network. Exchanges provide the switching function of telephone networks. Subscribers are connected to local exchanges, which
are able to connect subscribers on the same local exchange (i.e. on the same local loop), and connect local exchanges over the
Core Transmission network. These functions are illustrated below:
1. Connecting calls on the same local loop:
2. Routing calls through the Core Transmission network:
Trunk (Core
Network)
Local Exchange
1
4
1 2 3
4 5 6
7 8 9
* 8 #
1 2 3
4 5 6
7 8 9
* 8 #
1 2 3
4 5 6
7 8 9
* 8 #
1 2 3
4 5 6
7 8 9
* 8 #
2
5
3
6
7
8
9
*
8
#
Local
Exchange
Local Loop
(Access Network)
1
2
3
5
6
7
8
9
*
8
#
4
SectorD4LEDigital
Digital Local Exchanges provide the following functions to digital traffic:

Setting up and clearing down calls.

Switching traffic.

Signalling to other exchanges and subscribers.

Multiplexing signalling and traffic.
33
Exchange
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Transmitting multiplexed traffic.

Collection of charging data for billing.
Main Distribution Frames (MDF) are frames holding the wiring arrangements which connect the telephone lines coming from
the Access network (Main Copper cable/Fibre Spine) on one side to the switching part of the exchange on the other. An MDF
may also carry protective devices as well as functioning as a central testing point.
Specific assets held within this sector (by CoW):
Digital Local Exchange

LDX/LYX - Construction, Local Digital Exchange. This asset class covers all equipment and associated costs incurred as part
of basic exchange provision, extension, or re-arrangement. CoW LDX for Digital Local Exchanges manufactured by System
X, LYX for Digital Local Exchanges manufactured by Ericsson. Both of these types of exchange provide the same functions
and include:

ISDN2 IMUXs, ISDN30 PRA (Primary Rate Access) cards and ISDN2 BRA (Basic Rate Access) equipment.

Line connectors.

Cable pressurisation equipment.

Mobile exchanges.

Work of grading, re-grading etc. in connection with grade of service improvements (not for new circuits).

Distribution frames.
Excludes:

Non PSTN switching equipment.

External cables within the building up to the cable termination point.

Telecom Network Support computers and all peripherals and ancillary equipment.

Grading/regarding in connection with new circuits.

Provision of AC power and lighting, accommodation plant.

Local Main Distribution Frames (MDFs).

LMDF - Construction, MDF for exchanges. This asset class covers the provision, extension, upgrade, replacement, rearrangement and recovery of MDFs connected with Inland (BTUK) telephone exchanges. MDFs are those distribution
frames providing direct interface with external circuits terminations (customer or other exchanges).

DMC - Construction Operator Service System - Provision and recovery of operating access, Automatic Voice Response
(AVR), Directory Assistance System and Operator Keyboard Display Terminal equipment controlled by Operator Services.
Sector D8 - Main Exchanges
This sector contains the asset values and depreciation for Main Digital Exchanges ('Main Network Switching Digital'), Advance
Service Switching Units (providing intelligent network switching functions), Next Generation Switches, and Signalling Network
and Interconnect (used in network management of the switching function).The BT network is split into two parts for AS
purposes – the Access network and the Core Transmission network. Exchanges provide the switching function of telephone
networks. Main Exchanges route calls between local exchanges over the Core Transmission. This is shown here:
Local Exchanges
Trunk (Main) Exchange
Local Exchanges
SectionD8MainExchange
Specific assets held within this sector (by CoW) include:

MDX - Main Network Switching Digital. MDX are digital exchanges providing the following functions to digital traffic:

Setting up and clearing down calls.
34
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Switching traffic.

Signalling to other exchanges and subscribers.

Multiplexing signalling and traffic.

Transmitting multiplexed traffic.

Collection of charging data for billing.
This asset class covers the provision, re-arrangement, recovery and renewal of Digital main (e.g. Core) switching
equipment (e.g. DMSU) and Digital Core Switching equipment (e.g. DJSU) and includes:

Switching equipment racks.

Commissioning of new switching equipment.

Exchange Data build.

Mobile/Standby exchanges.

Associated switching works, including distribution frames, cable terminations, call logging equipment, relay sets, PCM
signalling cards, panels signalling portable or semi-permanent test or traffic equipment etc.

Supervising contractors.

Grading and cross-connections for opening requirements.

Provision and commissioning of any computer hardware explicitly and solely associated with the real time operation
or the switching of calls.

Installation of rectifiers, power equipment racks and power distribution busboys provided as part of a new or
extended switching unit.

Work of upgrading or modifying exchange equipment or operating software.

ASU - Advance Service Units Switching. ASU is equipment supporting the provision of Virtual Private Networks (VPN) and
Virtual Private Services (VPS) over the network. This asset class covers the construction, installation, re-arrangement,
recovery and renewal of Advance Service Unit’s equipment and CD Call Centre DMS100S to provide the platform to
support the provision of the VPN service. The VPN services being VPN and VPS.

NGS - Next Generation Switch. NGS is a new form of switch of which there are two types: one using traditional circuit
switching technology the other a hybrid using ATM packet switching technology. This asset class covers the provision, rearrangement, recovery and upgrade (renewal) of the NGS.
Sector DA - Core Transmission: Cable and Other
The BT Network is split into two parts for AS purposes – Core Transmission and the Access Network (not included in sector DA).
The Core transmission network is used to link exchanges. For AS purposes the Core Transmission network is split into the Core
Distribution network and the Core trunk network, illustrated below:
Access
Network
Cabinet
PCP
Core
Distribution
Local
Exchange
Core Trunk
Main
(DMSU)
Main
(DMSU)
SectorDaCoreTransmission
Specific assets held within this sector (by CoW) include:
Core Transmission Equipment

SDH - Construction of Synchronous Digital Hierarchy transmission equipment. SDH is a key element of BT's core
transmission network. SDH transmission equipment uses fibre optic Time Division Multiplexed (TDM) technology to
provide high line speeds of 155Mbps and above. The SDH asset class covers the provision and re-arrangement of
synchronous transmission equipment in the Core Transmission network to provide core network SDH transmission
capability and includes:

Add-Drop Multiplexers (ADMs).

Provision of Wavelength Division Multiplexing (WDM) equipment in the Core Network.

Provision of communications network.
35
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Cross Connect Switches (Higher-order Automatic Cross-connection Equipment (HACEs)).

All terminal and Intermediate Station Equipment.

Surveillance facilities on growth equipment in the Core Transmission Network i.e. Equipment supplied with the
Transmission Network Surveillance (TNS) interface.

Miscellaneous equipment above the minor works limit.
The SDH asset class excludes equipment in the Access network.

ATM - Asynchronous Transfer Mode. ATM (also referred to as Broadband Integrated Services Digital Network (ISDN)) is a
fast, cell-switched technology. All broadband transmissions (whether audio, data, imaging or video) are divided into a
series of cells and routed across an ATM network consisting of links connected by ATM switches. This asset class covers
capital expenditure for ATM Platform equipment. It includes provision, re-arrangement or recovery of Asynchronous
transmission equipment in the core Transmission network under the ATM Programme, such as:

ATM Exchange and equipment.

ATM 34Mbit/s equipment at Customers premises.

ATM 155Mbit/s equipment at Customers premises.

ATM 2Mbit/s equipment at Customers premises.

ATM Miscellaneous equipment above the minor works limit.

ATM network management equipment at the exchange.

ATM Test equipment at the exchange.
The ATM asset class excludes SDH and PDH Transmission equipment and Customer Access equipment.
Cables and Radio
Cables (Optical Fibre and Metallic Pair) in the Core transmission network link exchanges (see diagram above). The CoW includes:

MUC - Construction of Main Underground (Core) Cable. This asset class covers the provision, replacement or recovery of
Core Cables. This covers all Core cable work to increase the capacity of the network.

CJF - Construction of Core Optical Fibre Cable - This asset class covers the provision, replacement, renewal, rearrangement or recovery of optical fibre cable in the Core Network.
Closed Circuit Television (CCTV) terminal equipment and line regenerators

CRF - Construction of Repeaters, Optical Fibre - Core Network - This asset class covers the Provision, re-arrangement or
recovery of Optical Fibre for the Core Network. It includes PDH, Optical Line Transmission Equipment (LTE) and
Intermediate Station Equipment (ISE).

CRD - Construction of repeaters, digital, non-optical - Core Network - This asset class covers the provision and rearrangement of Non-Optical fibre Core Repeaters, including all 2Mbit/s Line Transmission Equipment (Line Termination
Equipment (LTE) and intermediate regenerators) used in the Core Network on metallic pair cables, and Primary 2Mbit/s
Multiplexers used for PSTN and private circuits in the Core Network.
Sector DB - Core Transmission: Duct
Duct is a pipe, tube or conduit through which underground cables are passed. Duct in the Core transmission network is split
between the Core Transmission network elements (see diagram below). This sector excludes all ducts in the Access Network.
Core
Distribution
Access
Network
Cabinet
PCP
Local
Exchange
Core
Trunk
Main
(DMSU)
Main
(DMSU)
SectorDBCoreTransDuct
Specific assets held within this sector (by CoW):

MUD/MUDR - Construction/Renewal of Backhaul/Inner Core Duct. This asset class covers the provision and
recovery/renewal of Backhaul/Inner Core Duct. Construction covers all Core Network duct work to increase the duct
capacity of the Core network. Renewal excludes work to increase duct capacity in the network
36
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

CJD/CJDR - Construction/Renewal of Backhaul/Inner Core Duct. This asset class covers the provision and recovery/renewal
of Core network duct. Construction covers all Core (Junction) work to increase the duct capacity of the Core network.
Renewal excludes work to increase duct capacity in the network.
Sector DC - Intelligent Networks
This sector contains the asset values and depreciation for the Intelligent Networks Platform. 'Intelligent network' is a network
that allows functionality to be distributed flexibly at a variety of nodes on and off the network and allows the architecture to be
modified to control the services. The 'Intelligent Network' provides network functionality beyond basic switching.
Specific assets held within this sector (by CoW):

Intelligent Networks Platform (INC) - Construction of Intelligent Network Platform. This asset class includes all equipment
and associated costs incurred as part of provision, extension, re-arrangement and recovery of network architecture in
which the service control functionality including management and development is remote / distinct from Core and Local
PSTN switching and includes:

Signalling Traffic Management (STMS) equipment.

Supervising contractors on installation.

Speech Application Platforms (SAP) and Intelligent Peripherals (IP).

Service Control Point (SCP) equipment.

Link Monitors.

On site spares.

Initial Databuild associated with switches.

Testing Apparatus and initial provision of spars held for changing purposes.

Distribution frames.

INV 35/352 announcement equipment.

Signalling Point Relay (SPR) Switches.
The INC asset class excludes PSTN Local, core and main switching units, Standalone/ standby power plant and batteries,
Derived services and Featurenet switches, and all Cashless Services equipment (including SAP).

SIGNI (Signalling Network and Interconnect) - This asset captures the costs of signalling network, signalling network
management system and interconnect. It includes Signalling Transfer Point (STP) and Signalling Point Relay (STP) switches
and Signalling Traffic Management (STMS) equipment, supervising contractors on installation; link monitors and
associated equipment (Core and Edge), on site spares, initial databuild associated with the switches and testing apparatus.
Sector DD - International Transmission
This sector contains the asset values and depreciation for International Transmission. International Transmission includes
International Radio and Repeaters and International Submarine Cable Systems. The main asset held within this sector is:

NCRR - International Radio and Repeaters. This asset class is used for Earth Station Capital expenditure on Broadcast
Services or Shared Infrastructure Earth Station Assets. The asset class includes Satellite Earth Stations: mobile satellite
dishes, small fixed dish systems and radio equipment at Cable or earth station. It also includes microwave links used for
Broadcast Services or share infrastructure.
The NCRR asset class excludes transmission plant linking the frontier station with International Repeater stations,
International Earth Station and Radio and Repeater Equipment for (Communications Networking Services (UK) (CNS)), and
Inland facing transmission equipment in International Repeater Stations.
Sector DE - Telex Exchanges and Transmissions
This sector contains the asset values and depreciation for Telex Exchanges and Transmission.
Sector DJ - Network Enabling Computers
This sector contains the asset values and depreciation for Network Administration Computers (asset class NAC) which are
specifically used for administration of the BT Network, controlled from Network Administration Computer Centres (NACCs).
Specific assets held within this sector (by CoW):

NACC - Network Administration Computer Construction (Own use). This asset class covers the provision, installation and
upgrades to Worldwide Networks (WN), Telecoms Network support computers and all directly associated equipment,
located at Worldwide Networks (WN) controlled Network Administration Computer Centres (NACCs). Also the creation,
37
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
provision and installation of associated software which provides real-time remote control, testing and management of the
Network.
Sector DK - Private Circuits and SMDS
This sector contains the asset values and depreciation for Private Circuits and Switched Multimegabit Data Services (SMDS).
Specific assets held within this sector (by CoW):

DTTM - Construction of Customer Wideband Services. This asset class covers contract, stores and labour for the
construction, installation, commissioning, replacement, re-arrangement of equipment at local exchanges and customer’s
premises to carry wideband services to customers and includes:

Wideband bearer electronics to support KiloStream services delivered over 2Mbit/s bearer, MegaStream (all types),
Integrated Services Digital Network (ISDN30), Featurenet, Link line, Flexible Bandwidth Service (FBS) MusicLine,
Switched Multimegabit Data Services (SMDS), Interconnect and similar Products.

Higher order line systems provided to carry Customer Wideband Services only.

Access SDH.

Test equipment for testing and maintenance of customer’s wideband services.
Excludes:


Other KiloStream services NOT delivered over 2Mbit/s bearer.

Equipment at customer premises connected to the customer side of the Network Terminating Unit.

Work involved in providing local line to customers premises, jumpering and overall service tests.

External cables, duct, regenerator housing and microwave radio links between the customer’s premises and serving
exchange.

All plants used to link together the serving sections, e.g. core and core transmission cable, equipment and systems.

Higher order line systems provided to extend the access or core network.

Short haul and Fibre Distributed Data Interface Optical Fibre circuits and cables.

Asymmetric Digital Subscriber Line equipment.

Maintenance and recovery work.
DTTK - Construction of KiloStream/Automatic cross Connect Equipment (ACE) Services. This asset class covers contract,
stores and labour for the construction, installation, commissioning replacement, re-arrangement of KiloStream core
network equipment for KiloStream Private Circuits e.g. ACE, Multiplexing Site Units (MSU) and Equipment Network Access
(ENA) Contract, stores and labour for the work associated with the Analogue Offload Programme, and supply and
installation of all customer end related equipment used for KiloStream Private Circuits (e.g. Line cards, Modern Units, and
Network Terminating Units) and includes:

Cost of stores or other materials ordered for the provision of KiloStream service (e.g. Line Cards, modem units, NTU).

The racking and cabling for KiloStream core network equipment.

Test equipment to be used solely on the testing and maintenance of KiloStream service.

All stores and labour associated with the provision, re-arrangement and installation of Analogue NTUs, line cards etc.
used for the analogue closure programme i.e. the re-arrangement of analogue private circuit onto the KiloStream
network.
Excludes:

The construction, installation, commissioning and maintenance of KiloStream Plus, KiloStream N and KiloStream M at
an exchange and customers premises.

Provision, re-arrangement or cessation of KiloStream circuits work on Private Service Order e.g. jumpering, setting
up, lining up and end to end testing.

All KiloStream circuits’ provision work involved in proving of local line to customers premises, the fitting of NTU in
customers' premises and fitting of tributary and modem cards at local exchange.

Sub-Multiplexer or other equipment at customer premises connected to the customer side of the KiloStream NTU.

All plant used to link together the serving sections, e.g. Core and Core Transmission cables and equipment.
38
Detailed Attribution Method (DAM) 2012
Section 3 - Overview


External cables, duct, regenerator housings and microwave links between the customer’s premises and serving
exchange of a serving section.

Construction, Short-Haul Multimode Optical Fibre Private Circuits.
DTTS - Construction of Customer Wideband Services. This asset class covers construction, provision, installation,
commissioning, replacement, re-arrangement or recovery of electronic equipment (but not service) for the various Short
Haul Data Services (SHDS) e.g. Local Area Network (LAN) Extension Service 1,2,3 and 155 - Data Extension Service 1,2
and 3 - FIS 1,2,3 and 4 and includes:

Dedicated Short Haul Data Services (SHDS) alarm/monitoring and line terminating equipment at the customer’s
premises.

Materials and installation of Short Haul Data Services (SHDS) Network Termination Units (NTUs).

Internal cable from the optical fibre termination to the service module in the customer's premises.

DTTW - Provision and upgrades for GS Wavestream, Openreach OSA & OSEA. This asset class covers cost of provisions and
upgrades of these products. Covers stores and labour for the construction, installation, commissioning, replacement and
upgrade of equipment at BT local exchanges and customers premises.

DTTSW - Construction of SHDS links for BT Wholesale Products. Construction, provision, installation, commissioning and
replacement, electronic equipment (but not service) for BT Wholesale owned products incorporating SHDS equipment.
Sector DF - Accommodation Plant (Network)
This sector contains the asset values and depreciation for Network Plant Accommodation. Accommodation plant is the term
used for accommodation assets necessary for the operation of network equipment e.g. ventilation and cooling plant. The sector
includes equipment-related Accommodation plant, i.e. within Network Operational Buildings (asset class ACPN), and Computer
Centre Accommodation Plant (asset class ACPC).
Specific assets held within this sector (by CoW):

ACPM - Accommodation Plant, Equipment-Related - Motor Transport. This asset covers the cost of purchasing, installing
and recovery of transport related equipment in (or in the vicinity of) Group Motor Transport's workshops or adopted
facilities (generally at TECs). This covers all equipment for the purpose of preparing vehicles for customers' use which
includes: a) equipment for maintaining the vehicles, b) equipment for repairing the vehicles, c) equipment for fuelling the
vehicles and d) equipment for the disposal of the vehicles at the end of their lives with the company.

ACPS - Accommodation Plant, Security (FAR) - This asset covers the provision and installation of security equipment for
Land and Buildings. It includes:

Recovery, where a recovery is required to facilitate provision of new assets under this class of work.

Internal and external electronic access controls systems.

Intruder detection systems, Specialist security lighting.

Conduits and cable to specialist security fittings.

Additional socket outlets to supply items of security equipment.

Interlocking systems, steel grills, and other special items required to form a security area.

Security fittings and anti-bandit screens, including the cost of toughened glazing, glazing security film, and other
anti-blast protection measures. e.g. 'Armour curtaining'.

Strong rooms and strong room doors, racking shelving and associated special light fittings.

Catwalks/walkways directly giving access to items of security plants, including watching galleries.

Replacement of main entrance door locks, when part of a national replacement programme.

Cable protection for security equipment.

ACPR - Accommodation Communication Plant Rooms.

ACPA - Accommodation Plant Access Services Division (ASD) Equipment only - This asset covers the cost of construction
provision, installation and recovery of ASD (i.e. Openreach) network equipment-related plant (also known as
accommodation plant). Excludes all non-local loop unbundling and non ASD power and accommodation work.

ACPN - Accommodation Plant, Equipment Related - Network Operational Buildings. This asset class covers the cost of
construction, provision, installation and recovery of Network equipment related plant (also known as accommodation
plant) and includes:
39
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Building work directly related to the installation of items of Equipment-Related Plant, e.g. strengthening buildings or
foundations to take Equipment-Related Plant.

Electric light and power enabling installation of, or supporting operation of, Network equipment. This will be in
operational buildings, or within distinct operational areas in shared buildings.

Ventilation and cooling plant for Network areas.

Other Plant directly associated with items of Equipment Related Plant e.g. movable partitions when provided as part
of a Network equipment environment.

Equipment Lifts and hoists.

The security equipment for Operational areas.
This asset class excludes power and lighting, ventilation and cooling plant, and other plant for non-operational areas,
welfare facilities e.g. toilets and estate security provision.

ACPC - Accommodation Plant - Computer Centres. This asset class is used for the cost of construction, provision and
installation of equipment that specifically is essential to, or is essential to the support of computer equipment in BT
and includes:

Work specific for the construction of a computer room.

Work for provision of power for computer rooms.

Work specific to suppression of electrical transient noise.

Work on air conditioning required specifically for the efficient operation of the computer installation.

Provision of fire protection equipment, required for a computer installation, over and above that required for normal
office safety.

Provision of storage facilities for computer media e.g. media racking for magnetic tapes etc.
This asset class excludes Maintenance of computer assets, Accommodation plant work, Accommodation plant work carried
out in a Group Computing Services (GCS) managed computer centre, but not essential to the site and accommodation of
computer equipment, and Security plant work, including all access security systems.
Sector DG - Network Power
This sector contains the asset values and depreciation for Telecom Network Power Plant (asset class TPC). Power plant systems
and distributions are used to feed network operational equipment in operational buildings i.e. telephone, telegraph and telex
exchanges, radio and repeater stations.
Specific assets held within this sector (by CoW):

TPC - Construction of Telecom Power Plant. This asset class covers the provision, installation, construction, replacement
and re-arrangement of power plant systems and distributions feeding network operational equipment in operational
buildings, i.e. telephone, telegraph and telex exchanges, radio and repeater stations and includes:

DC power plant including power equipment racks, rectifiers, batteries and distributions up to the load interface.

High voltage switch gear and transformers at mains supply frequency.

Installation cost and equipment supply of power equipment racks, rectifiers, batteries and distribution up to the load
interface by BT staff.

AC power plant, uninterruptible power supplies, AC distribution systems, fixed and mobile standby generators.

Replacement of plant with expired life.
Excludes:

Electrical intake into the building.

Plant maintenance, including fault clearance and replacement of components.

Power plant and batteries at customer’s premises.

International power plant, power plant used exclusively in general purpose and computer centres.

Recovery work.
Sector DL - Public Payphones
40
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
This sector contains the asset values and depreciation for Public Payphones (asset class PCOH). These are coin or card operated
phones installed in a public place. The owner of the site may get a commission for allowing the Communications Provider to
install it. Payphones operate over the standard PSTN network.
Specific assets held within this sector (by CoW):

PCOH - Installation of Street Payphone Housings. This asset class covers the planning, provision and recovery of PCO
('Public call Office', or Payphone) housing, including lighting and power, other than Managed Sites and includes:

The complete replacement of non-managed payphone housing with one of a different type.

Plant held for installation purposes for above.

Labour costs for above.
This asset class excludes any costs associated with Touchpoint terminals or Intelligent Vending terminals, payphone provision on
sites for which a Managed Site agreement is in operation, and the complete replacement of non-managed payphone housing
with one of the same type.
Sector DM - Apparatus
BT offers services to customers to rent telephony and other apparatus, without the need to purchase outright the apparatus. BT
receives rental income from the customers, and the apparatus assets are held in BT’s books as BT fixed assets. Sector DM
contains the asset values and depreciation of Apparatus equipment.
Sector DN - Motor Transport
This sector contains the asset values and depreciation of motor vehicles used in BT’s business. BT operates a range of vehicles,
purchased as new vehicles or acquired under lease arrangements. Vehicle assets are mainly recorded under the following CoW:

NVAC - New Vehicles and Accessories purchased and include pool cars, vans, light goods vehicles, heavy goods vehicles
and 4 wheel drive vehicles and trailers. This covers a range of sizes of vehicles (e.g. 300, 500, 750kg vans or minibuses),
and a range of operating periods (e.g. 1 year, 3 year and 6 years etc.).
Sector DO - General Computers
This sector contains the Asset Values and Depreciation costs for computers used to support our business activities and
operations. The main COWs are:

COMPA - BT Own Use Computer Mainframes and Peripherals. This includes Computers which require a controlled
environment e.g. air conditioning, water cooling, includes front end processors, tape drives, disk drives, silos, dedicated
terminals etc. (Note dedicated means connected directly to the mainframe and within the secured computer installation,
not merely secure office accommodation.)

COMPE - BT Own Use Personal Computers. Includes the processor, display monitor, keyboard, internal CD ROM and
modem, one or more diskette drives, internal fixed disk storage and the operating system software purchased as an
integral part of the PC.

COMPF - BT Own Use Data Communication Equipment. This includes data transmission hardware and test equipment such
as modems, multiplexors, routers, bridges, patch panels, protocol converters, line testers, monitor protocol analysers,
cluster controllers, hyper-channels, file servers and Open System Cabling Architecture (OSCA) cables.

IABC - Internal Infrastructure Cabling and Local Area Networks (LAN) in BT Offices.

LAN Switch Hub equipment and associated cabling in BT Offices.
Sector DP - Land
This sector shows the asset values for land held by BT, analysed between historic cost values and the CCA adjustments applied to
provide a current cost valuation of the assets.
The main classes of work against which land values are recorded are:

Land freehold.

Land long lease.

Land short lease.
Sector DQ - Buildings
This sector contains the asset values and depreciation for buildings fixed assets. The buildings relate to the freehold, long
leasehold and short leasehold buildings that we own, but exclude accommodation plant (e.g. air conditioning and heating
units), furniture and fittings which are covered in separate sectors. Our buildings include corporate office buildings (across the
country), our shops and service centres, and network buildings (e.g. telephone exchange buildings) that we own. The sector
also contains values for the buildings owned by our ‘non-core’ businesses (subsidiaries, self-accounting units etc.).
41
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Sector breakdown
The key items recorded in this sector are shown below:
Core business

GBV of freehold buildings.

GBV of long leasehold buildings.

GBV of short leasehold buildings.

GBV of buildings new construction.

Accumulated Depreciation of freehold buildings.

Accumulated Depreciation of long leasehold buildings.

Accumulated Depreciation of short leasehold buildings.

Depreciation charge for freehold buildings.

Depreciation charge for long leasehold buildings.

Depreciation charge for short leasehold buildings.
Non-core business

GBV for registered buildings.

Accumulated Depreciation for registered buildings.

Depreciation charge for registered buildings.
Sector DR - Accommodation Plant (Landlords)
Overview
This sector contains the balance sheet fixed asset values and depreciation costs for accommodation plant. Accommodation
plant is held in our freehold, long leasehold and short leasehold buildings, and contains asset items such as furniture and sundry
other items used in the buildings. The key CoW contained in this sector include:

AFH - Accommodation Plant Freehold, comprising plant contained in freehold buildings.

ALL - Accommodation Plant Long lease, comprising plant contained in long leasehold buildings.

ASL - Accommodation Plant Short lease, comprising plant contained in short leasehold buildings.
Sector DS - Office Machines
This sector contains Big and Large Switches (CoW IDX) and Office Machines (CoW OM).
Specific assets held within this sector (by CoW):


IDX - Big and Large Switches. This asset class covers the provision of all Big and large switches and of Small/Medium
switches with an installed cost in excess of £1,500 for the COMMSURE (business continuity solutions) scheme. The
COMMSURE scheme provides switch systems to be held on stand-by, to provide participating customers with temporary
service in the event of an emergency it includes:

The provision, installation and recovery of all switch systems (as defined above) where provided as a BT service
installation.

Computer Equipment used to manage switch.
OM - Office machines (BT own use). This asset class covers the procurement and installation of office machines for BT's
own use, where the cost is £1,500 or more and includes:

Video-recorders/players and television sets.

Photocopiers and reprographic equipment.

Word processors, typewriters and dictation equipment.

Overhead and slide-projectors, electronic whiteboards.

Paper shredders, enveloping/inserting machines, postal franking machines.

Microfiche and microfilm readers and reader-printers.
Excludes:
42
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

PC's, printers and other peripheral equipment.

Maintenance of office machines.

Medium and small switches, telex and telephony apparatus and cabling, recording and answering machines, facsimile
machines, modems and other business apparatus Products.

The hire of office machines.

Fans, clocks and other items of accommodation plant.

Big and Large switches (see IDX).

Battery or hand-powered office equipment.
Sector DT - 21 Century Network
This sector contains the asset values and depreciation for 21C Network. The various main asset groupings are listed below:
Backhaul XMSN
MSAN
WDM
(Backhaul)
XMSN
Metro Node
Metro Node
Backhaul XMSN
Other Core
Nodes
MSAN
PC’s
and Data
MSAN
Metro/Core
Node
Ethernet Switch
Voice
NGS (Legacy)
Interconnect
Metro/Core
Node
MSAN
Inode
Broadband
SectorDT_Diagram1_2010
21C Network contains various categories of assets:

MSAN (Multi Service Access Nodes).

Metro/Core Nodes.

21C WDM Transmission (Wave Division Multiplexing).

I-Nodes (Call Servers).

Ethernet Switches.

CCI (Common Capability Intelligence).
Multi-Service Access Nodes provide customer access into the network for Voice, Broadband and some Connectivity via linecards and the traffic generated is sent to Metro Nodes for switching. This can be via other MSANs.
MSANs are Copper MSANs and Fibre MSANs, the former serving customers over a copper connexion and the latter over a Fibre
connexion. MSANs use WDM transmission for traffic to and from the Metro Node.
Ethernet Switches are for Connectivity access into the network and are located at sites that can take advantage of WDM
transmission to send and receive traffic to the Metro node.
Metro Nodes switch traffic and contain the intelligence to direct its path. All traffic will traverse the Metro Node to some degree
whether it falls into the category of Voice, Broadband or Connectivity.
Core Nodes are a special type of Metro Node where there is a mesh or net of transmission between them. Most Core nodes are
connected to all other Core Nodes.
I-Nodes are used just for Voice customers and contain intelligence for numbering and the intelligence for routing i.e. Call SetUp and Network Features.
Common Capability Intelligence is a set of re-usable components used to build our products and services. It includes session
management and intelligence voice routing, authentication of customer identity, identification of customer location and instant
messaging.
Sector DH - Capital Miscellaneous
43
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
This sector contains the Asset Values and Depreciation for Miscellaneous Capital such as:

LXTM - Construction of Local Exchange, Testing & Measuring Equipment. The provision of common or centralised test,
monitoring or access equipment for Local Exchanges that is not directly associated with a particular exchange system or
line plant type, and where the estimated cost does not fall within the minor works authority limit.

NTC - Network Capitalised Tools. High value tools and testers used in the construction and maintenance of the Core and
Access networks.

WMSCA - Wholesale Managed Services Capital Account - Capital Expenditure associated with Wholesale Managed
Services.

WTMDF - Wholesale Test Equipment and MDF - The provision of 21CN Evotam (Evolutionary Test Access Matrix).
It also includes various Overseas Capital balances attributed to Retail Residual.
Sector DI - Other Non-Voice Plant
This sector contains the asset values and depreciation for other non-voice plant such as:

MMC - Multimedia Capital. This asset class covers all equipment and associated costs incurred solely by Internet and
Multimedia Services (IMS) as part of the basic provision, extension, re-arrangement and recovery of equipment associated
with the provision of Internet Protocol (IP) Products and includes:

Routers purchases by/for Internet and Multimedia Services (IMS) and spares.

Software and licenses.

Power and environmental equipment.

Server equipment, including on site spares.
Excludes:


Maintenance and support staff, and any network transport related equipment such as routers and cascade switches.
IPNC - Internet Protocol (IP) Network Capital. This asset class covers all equipment and associated costs incurred solely
network BT as part of the basic provision, extension, re-arrangement and recovery of the IP network and includes:

Dial Ports.

Router equipment, both exchange and customer based.

Local Area Networks (LANs).

Switched Multimegabit Data Services (SMDS) Cascade switches used within the Internet Protocol (IP) network.

Radius, new and mail servers.

Testing apparatus and provision of spares.

Software and licences.
Excludes:
Interactive Multimedia Services Product related equipment (i.e. servers for campus world, talk 21 etc.), standby power
supplies, on-going maintenance and servicing, Switched Multimegabit Data Services (SMDS) Cascade switches used for
other (non-multimedia) services, and management station support staff.
Sector E4 - Materials Awaiting Installation
This sector relates to the balance sheet value of materials awaiting installation as network fixed assets in BT’s business such as
fixed assets stock originating from engineering stores. Much of the balance of the stock is held by BT Wholesale, in relation to
network installation. Smaller stock balances are held by other parts of the business, including self-accounting units.
Sector E7 - Other Investments
This sector represents the shares of investments in subsidiaries and associated undertakings and relates purely to Retail Residual
products.
Sector EA - Software
BT purchases and develops internally a range of software to support its business activities. This sector contains the costs and
asset values associated with capitalised software in BT. There are two main types of software:
44
Detailed Attribution Method (DAM) 2012
Section 3 - Overview

Application system software - Designed to meet a specific business need with an established intended use (and not for use
for any other purposes).

Operating system software - Manages the basic operations of a computer system and the flow of information into and out
of the main processor.
Sector EC - Other Intangible Assets
This sector holds the balance sheet value of other intangible assets – namely telecommunication licences and relates purely to
Retail Residual products.
Sector ED - IFA from Acquisition
This sector holds the balance sheet value of Intangible Fixed Assets obtained through acquisition and relates purely to Retail
Residual products.
Sector EY - Derivative Financial Instruments
This sector holds the balance sheet value of non-current derivative financial instruments and relates purely to Retail Residual
products.
Sector EZ - Non-Current Assets
This sector holds the balance sheet value of derivative financial instruments and relates purely to Retail Residual products.
3.6.1.4 Current Assets and Liabilities
The AS system attributes the balance sheet current assets and liabilities from the following sectors:
Ref
G1
G2
G3
G4
G5
G6
G9
GA
GB
GD
H1
H2
H3
H4
H6
H7
H8
H9
HA
HF
I2
I4
Sector Description
Trading Inventories
Trade Receivables
Intra-group Receivables
Current Investment: Third Party
Current Investment: Intra-group
Cash At Bank
Accrued Income
Prepayments
Other Receivables
Derivative Financial Instruments (Current)
Short Term Borrowing
Provisions one year
Trade Payables
Intra-group Creditor
Other Taxes & Social Security
Provisions
Other Payables
Accrued Expenses
Deferred Income
Derivative Financial Instruments (Payables)
Provisions: Other Provisions
Provisions: Pensions
Sector G1 - Trading Inventories
This sector contains the balance sheet asset values for Trading Inventories which includes:

Trade and finished goods inventories.

Work in progress.

Raw material inventory.
Sector G2 - Trade Receivables
This sector relates to the balance sheet value of trade receivables for services provided to and invoiced to customers where we
have yet to receive payment. For many services, including the PSTN call services offered to customers, there is a time delay in
between raising and dispatching an invoice, and receiving payment from the customer. The delay may be in line with the terms
and conditions of the invoice, or may relate to late payment of the invoice by the customer.
45
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
The key balances of trade receivables in this sector include:

Geneva receivables - These are receivables associated with invoices raised through the Geneva system, a billing system
used by BT Retail, Global Services and BT Wholesale. It contains customer data, such as the Products they currently rent,
usage and any discounts applied.

Customer Service System (CSS) billed receivables - These are receivables associated with invoices raised through the CSS.
These receivables’ balances are generated by the Retail business unit of BT and include, for example, balances for invoices
due from PSTN call services provided to business and residential customers.

Other Communication Provider (OCP) receivables.
These are receivables associated with services provided and invoiced to OCPs. The balance covers, for example, amounts due
from other operators for calls originating on the OCP network but passing over the BT Network to a terminating operator. It also
includes debt owed for circuit rental and connection income (for fixed links and interconnect circuits provided to OCPs).

Trade receivables’ private circuits.
These are receivables associated with private circuit services provided to customers by the Retail business unit of BT Bad debt
provisions.
These represent reductions (credits) to receivable balances considered as bad or doubtful debts. The provisions include:

General bad debt provisions for CSS business and residential telephony customers, calculated with reference to ‘loss rates’
on an age profile of receivables.

Specific bad debt provisions for CSS telephony receivables, calculated with reference to specific bad debts.

General and specific bad debt provisions for receivables arising through the private circuits’ sales ledger.
Sector G3 – Intra-group Receivables
This sector contains the balance sheet asset values for intra-group receivables. The sector shows the balances recorded by the
different organisation units of BT as amounts due from other parts of the organisation.
Sector G4 - Current Investments: Third Party
BT invests funds in short-term external investments, the balance sheet asset values of which are contained in Sector G4. The
types of short-term investments held include:

Listed UK investments.

Listed non-UK investments.

Unlisted investments.

Overnight deposits.

Term deposits at banks.

Certificates of tax deposits.
Sector G5 - Current Investments: Intra-group
BT’s intra-group investments (funds deposited by one area of the business into another part of the business) are directly
allocated to Retail Residual.
Sector G6 - Cash at Bank
The Cash at Bank sector represents the bank account balances held by BT with various banks. The sector therefore pertains to
balance sheet attributions in the AS system). The material balances in this sector represent sterling bank accounts, with different
F8 codes used for accounts with different banks.
Sector G9 - Accrued Income
This sector relates to the balance sheet value of accrued income for services provided to and used by customers but not yet
invoiced by BT. Accrued income arises where the invoice schedule for a particular customer service allows the customer to use
the service in advance of being billed e.g. for telephony calls made by residential customers, where customers are billed
quarterly in arrears for the call charges.
Sector GA - Prepayments
This sector relates to the balance sheet value of prepayments for services paid for but not yet received by BT.
The main prepayment balances arise through:

Prepayments of general expenditure from BT.
46
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Sector GB - Other Receivables
This sector relates to the balance sheet value of Other Receivables for amounts owing to BT. It contains sundry and
miscellaneous receivable balances.
Sector H1 - Short-term Borrowing
This sector contains the balance sheet liability values for BT’s short-term borrowings. The borrowings include:

Overdrafts.
Where balances on bank and giro accounts are credits at the end of the period the overdraft position is shown as a liability on
the balance sheet.

Short-term loans.

Other short-term loans (excluding bank overdrafts).

Commercial paper.

Liability balances on commercial paper held by the Treasury.
Sector H3 - Trade Payables
This sector relates to the balance sheet value of trade Payables for services performed and invoiced by suppliers to BT, but not
yet paid by BT. BT receives services from a range of suppliers to support the Products and services it delivers to its customers.
Where suppliers perform services and issue invoices to BT, BT raises a creditor balance in advance of the settlement of the
invoice. Most supplier invoices and credit balances are dealt with through the Accounts Payable system. The key balances of
trade Payables in this sector include:

Accounts Payable control.
This is the main creditor account for external supplier invoices processed through the Accounts Payable system. The account
holds the total value of invoices less credits due for payments to suppliers and the total balance can be itemised by individual
supplier in a report.

Other Communication Provider (OCP) Payables.
This represents the value of debt owed by OCPs to BT in respect of calls originating from BT customers and inland/international
transit traffic to the points of interconnect where calls are handed over to the OCPs system. BT pays the OCP a penny per minute
conveyance fee which varies by tariff period and distance carried.

Capital Trade Payables other.
Trade Payables relating to capital purchases, recorded through the GFR.
Sector H4 – Intra-group Payables
This sector contains the balance sheet asset values for Intra-group payables. It shows the balances recorded by the different
organisation units of BT as amounts owing to other parts of the organisation.
Sector H6 - Other Taxes and Social Security
This sector holds the balance sheet value of other taxes and social security costs payable by BT. It represents amounts due for
social security and other taxes but not yet paid. Key balances include:

Output VAT Payables, arising from VAT collected by BT from its UK businesses for forwarding to the Customs and Excise
department.

Input VAT receivable balances, arising from VAT paid by BT on inputs purchased.

National Insurance contributions for employees, payable by BT.
Sector H7 - Provisions
This sector contains the balance sheet liability values for miscellaneous provisions. The provisions are recorded by the separate
Lines of Business (LoB) (e.g. Markets, Global Services etc.) based on their view of the potential liabilities facing their part of the
business.
Sector H8 - Other Payables
This sector contains the balance sheet liability values for Other Payables. It contains sundry and miscellaneous creditor balances.
Sector HA - Deferred Income
47
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
This sector contains the balance sheet liability values for Deferred Income. Deferred Income represents income received by BT
for services that it has not yet provided. The sector includes:

Deferred income telephony.

Income received for telephony services not yet provided to customers (e.g. for telephony services to be billed through the
Customer Service System (CSS)).

Deferred income private circuits.

Unearned rental income received for private circuit services.

Unearned rental income.

Other unearned rental income.
It also includes unearned income received by the self-accounting units and subsidiaries, recorded through the GFR.
Sector I2 - Provisions: Other Provisions
This sector contains the balance sheet values of ‘other’ provisions, which are primarily BT’s warranty provisions.
Sector I4 - Provisions: Pensions
This sector contains the balance sheet values of provisions for pension liabilities.
3.6.2 Externally reported SMP sectors
Wholesale Markets SMP Sectors
The tables below identify the SMP sectors reported in Wholesale service statements for the Profit and Loss and Balance Sheet.
Report
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
P&L
Report
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
MCE
Description of Wholesale SMP Sector
Revenue
Provision / Maintenance
Network Support
General Support
General Management
Finance and Billing
Accommodation
Bad Debts
Other Costs
Depreciation – Land and Buildings
Depreciation – Access
Depreciation – Switch and Transmission
Depreciation – Other related
CCA Holding (gain) / loss
CCA Supplementary depreciation
CCA other adjustments
SMP Sector Code
1,2,3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
SMP Sector Description
Non-current Assets – Land and Buildings
Non-current Assets – Access Copper
Non-current Assets – Access Fibre
Non-current Assets – Access Duct
Non-current Assets – Switch
Non-current Assets – Transmission
Non-current Assets – Other
Non-current Assets – Investments
Current Assets – Stocks
Debtors – Internal
Debtors – External
Liabilities falling due within a year – Internal
Liabilities falling due within a year – External
Provisions for liabilities and charges
SMP Sector Code
A
B
C
E
F
G
H
I
J
K
L
N
O
P
48
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
Profit and Loss - ASPIRE Sector Pointing for Wholesale Statements
The table below groups ASPIRE sectors into Wholesale SMP reporting sectors.
SMP Sector
1,2,3
4
4
5
6
6
6
6
6
6
6
6
7
7
8
9
10
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
12
12
12
12
13
13
13
14
14
14
14
14
14
14
14
14
15
15
15
15
15
14
P&L SMP Sector Description
Revenue
Provision/Maintenance
Provision/Maintenance
Network Support
General Support
General Support
General Support
General Support
General Support
General Support
General Support
General Support
General Management
General Management
Finance and Billing
Accommodation
Bad Debts
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Other Costs
Land and Buildings Depreciation
Land and Buildings Depreciation
Land and Buildings Depreciation
Land and Buildings Depreciation
Access Depreciation
Access Depreciation
Access Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Switch and Transmission Depreciation
Other Depreciation
Other Depreciation
Other Depreciation
Other Depreciation
Other Depreciation
Switch and Transmission Depreciation
ASPIRE Sector
A1 – A9, AU, AW
B1
B2
BK
B0
B4
B6
B7
BA
BB
BE
BV
BF
B5
B9
BC
BW
AX
B8
BG
BU
C1
C2
C3
C7
EC
F0
F1
F2
F3
T3
U3
DF
DP
DQ
DR
D1
D2
D3
D4
D8
D9
DA
DB
DC
DD
DE
DT
ED
DG
DH
DI
DJ
DK
49
P&L ASPIRE Sector Description
All P&L ASPIRE revenue sectors
Provision and Installation
Maintenance
Plant Support
General Support
Planning and Development
Supplies
Transport
Computing
Customer Service
Personnel and Administration
Customer Support
Gen Management and Other
Operator Services
Finance and Billing
Accommodation
Bad Debts
Other internal turnover Non SOS
Marketing and Sales
SLRC Variance
Elimination of Intra-group
Other Operating Income
Payments to OLO
Payments to OA
Internal Product Charge from Core
Other Intangible Asset
Specific item interest
Employee Profit Sharing
Net Short Term Interest
Associated Companies
Divisional Supply Service Out
Divisional Sup Service In
Accommodation Plant Net
Land
Buildings
Accommodation Plant (Land Lord)
Access: Fibre and Rad
Access: Copper
Access: Duct
Local Exchanges: Digital
Main Exchanges
International Exchanges
Core Transmission: Cable and Other
Core Transmission: Duct
Intelligent Networks
International Transmission
Telex Exchange and Transmission
21 Century Network
IFA from acquisition
Network Power
Capital Miscellaneous
Other Non-Voice Plant
Net Enabling Computers
Private Circuits and SMDS
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
SMP Sector
15
15
15
15
15
15
11
11
P&L SMP Sector Description
Other Depreciation
Other Depreciation
Other Depreciation
Other Depreciation
Other Depreciation
Other Depreciation
Other Costs
Other Costs
Reconciling items
ASPIRE Sector
DL
DM
DN
DO
DS
EA
F4
F5
T3
P&L ASPIRE Sector Description
Public Payphones
Apparatus
Motor Transport
General Computers
Office Machines
Software
Corporation Tax
Deferred Tax
Divisional Supply Services Out
Balance Sheet - ASPIRE Sector Pointing for Wholesale Statements
The table below groups ASPIRE sectors into Wholesale SMP reporting sectors.
SMP
Sector
A
A
A
A
A
B
C
E
F
F
F
F
G
G
G
G
G
G
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
I
I
I
J
K
K
L
L
L
L
MCE - Sector SMP Description
ASPIRE Sector
MCE - ASPIRE Sector Description
Non-current Assets – Land and Buildings
Non-current Assets – Land and Buildings
Non-current Assets – Land and Buildings
Non-current Assets – Land and Buildings
Non-current Assets – Land and Buildings
Non-current Assets – Access Copper
Non-current Assets – Access Fibre
Non-current Assets – Duct
Non-current Assets – Switch
Non-current Assets – Switch
Non-current Assets – Switch
Non-current Assets – Switch
Non-current Assets – Transmission
Non-current Assets – Transmission
Non-current Assets – Transmission
Non-current Assets – Transmission
Non-current Assets – Transmission
Non-current Assets – Transmission
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Other
Non-current Assets – Investments
Non-current Assets – Investments
Non-current Assets – Investments
Current Assets – Stocks
Debtors – Internal
Debtors – Internal
Debtors – External
Debtors – External
Debtors – External
Debtors – External
DF
DP
DQ
DR
K3
D2
D1
D3
D4
D8
D9
DC
DA
DB
DD
DE
DK
DT
D0
DG
DH
DI
DJ
DL
DM
DN
DO
DS
E4
EA
EC
ED
EB
E7
E8
E5
G1
GN
HN
G2
G3
G4
G5
Accommodation Plant Net
Land
Buildings
Accommodation Plant (Land Lord)
AS B/S Eliminations Receivables
Access: Copper
Access: Fibre and Rad
Access: Duct
Local Exchanges: Digital
Main Exchanges
International Exchanges
Intelligent Networks
Core Transmission: Cable and Other
Core Transmission: Duct
International Transmission
Telex Exchange and Transmission
Private Circuits and SMDS
21st Century Network
Cellular and Other
Network Power
Capital Miscellaneous
Other Non-Voice Plant
Net Enabling Computers
Public Payphones
Apparatus
Motor Transport
General Computers
Office Machines
Materials Awaiting Install
Software
Other Intangible Asset
IFA from Acquisition
Goodwill
Other Investments
FA Invest Adj. CCA
Other Non-Current Assets
Trading Inventories
AS Notional Receivables
AS Notional Creditor
Trade Receivables
Intra-group Receivables
Short Term Investments:TP
Short Term Investments:IG
50
Detailed Attribution Method (DAM) 2012
Section 3 - Overview
SMP
Sector
L
L
L
L
L
L
L
O
O
O
O
O
O
O
O
O
O
P
P
MCE - Sector SMP Description
ASPIRE Sector
MCE - ASPIRE Sector Description
Debtors – External
Debtors – External
Debtors – External
Debtors – External
Debtors – External
Debtors – External
Debtors – External
Creditors – External
Creditors – External
Creditors – External
Creditors – Internal
Creditors – External
Creditors – External
Creditors – External
Creditors – External
Creditors – External
Creditors – External
Provisions for liabilities and charges
Provisions for liabilities and charges
Reconciling items
Reconciling items
G6
G9
GA
GB
GC
GD
I3
H1
H2
H3
H4
H6
H7
H8
H9
HA
HF
I2
I4
EY
EZ
Cash At Bank
Accrued Income
Prepayments
Other Receivables
Pay Recharges
Derivative Financial Instrument (Current Assets)
Daily Averaging Of Cash
Short Term Borrowing
Provisions under one year
Trade Payables
Intra-group Creditor
Other Tax and Social Sec
Provisions
Other Payables
Accrued Expenses
Deferred Income
Derivative Financial Instrument (Payables)
Provision: Other Provisions
Provisions: Pensions
Derivative Financial Instruments
Non-Current Assets
51
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
4. Base Methodology Dictionary
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
BALS1
MP
BT Public Payphones Mechanism Fixed Assets
Description
Organisational Unit Code (OUC) MP represents the management and support of the Payphones, Multimedia
Terminals and Chargecard businesses.
Background
The base BALS1 apportions BT Public Payphones Mechanism Fixed Assets.
‘Public Payphones’ represents Street Payphones, Managed Payphones and Prison PIN Payphones. ‘Mechanism’
describes the telephone equipment and hence excludes the housing/kiosk.
Notes:
Managed payphones are located on private property, such as at Railway Stations or Airports.
Prison PIN Payphones are located in all Her Majesty's Prison Service (HMPS) and some non-HMPS prisons. These
payphones do not accept cash but rely on a ‘Personal Identification Number’ to charge the call to the prisoner’s
account.
Capitalised costs relating to Public Payphone assets types are recorded separately against specific classes of work
(CoW). Street mechanism capital costs are allocated to class of work PCOP - Public Coin Operated Payphone - and
managed mechanism costs to MPM - Managed Payphone Mechanisms.
For this base, the Mechanism assets are separated into the following groups:

Cash Box.

Non Cash Box.

Prison PIN.

Multimedia.
Cash Box and Prison PIN related assets are allocated to Product group G573. Non Cash Box related assets are
allocated to Plant Group (PG) PG622A Public Payphones Operations. Multimedia assets are allocated to product
P137.
Methodology
The Product/PG apportionment is calculated by using the derived gross replacement cost of the asset base
(Product volume x Product CCA cost) – to apportion the mechanism costs to the ‘cash’ and ‘non-cash’ elements.
The ‘cash’ element percentage is used to apportion mechanism gross book values (GBV) to Product group G573
and the ‘non cash’ element is used to apportion GBV to PG622A. The resulting values are used, along with the
direct allocation of GBV (for non-payphone mechanisms) to determine the overall weighted apportionments to
Products and PG.
Data Source/s
Payphone populations at the period mid-point, sourced from the Payphones Data Warehouse.
The gross book values are provided by the Payphones Finance Reporting manager and are sourced from the
Central Information Database (CID) - for as much of the current financial year as is available at the time.
Payphone product valuations are derived from the CCA Evaluation process completed in 2004/05.
BALS2
MP
BT Public Payphones Mechanism Capital Expenditure
Description
Organisational Unit Code (OUC) MP represents the management and support of the Payphones, Multimedia
Terminals and Chargecard unit.
The base BALS2 apportions BT Public Payphones Mechanism capital expenditure.
Background
‘Public Payphones’ represents Street Payphones, Managed Payphones and Prison PIN Payphones. ‘Mechanism’
describes the telephone equipment and hence excludes the housing/kiosk.
52
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Managed payphones are located on private property - such as at Railway Stations or Airports - where there may
be a payment either from, or to, BT Payphones (BTP) for allowing the payphones be present.
Prison PIN Payphones are located in all HMPS and some non-HMPS prisons. These payphones do not accept cash
but rely on a ‘Personal Identification Number’ to charge the call to the prisoner’s account.
Methodology
Capital costs relating to payphone mechanisms that are deployed in the Street locations are allocated to the class
of work (CoW) PCOP and capital mechanism costs relating to Managed locations are allocated to a CoW of MPM.
This base is derived by identifying all stores items recorded against the above CoW with each item code then
being linked to the appropriate Payphones Accounting Separation (AS) products or Plant Group (PG). This
generates a weighting of the costs and hence an apportionment.
The AS Products/PGs impacted by this base could be G573 (P138/ P139), P134, P137 and PG622A but this is
dependent on whether stores item codes for these Products are consumed in the period.
The data used in the base should reflect as much of the current financial year as is available at the time.
Data Source/s
Central Information Database (CID) stores (DIY) transaction report.
BVDORSDO
BVD
Openreach Service Division
This base apportions the Profit and Loss (P&L) Pay etc. costs associated with Organisational Unit Code (OUC) BVD
is the Service division of Openreach. The teams within BVD are primarily staff call centre based, with supporting
the provisioning and repair of Openreach services. As various teams support specific services, their costs cannot
be spread on a Direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the Finance Team. The OUC base is then constructed by
reference to the respective service that each team member works on. Where a team works for a specific service
(for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Residential
and Business lines by reference to their respective P12 volumes).
Data Source/s
Headcount analysis is received from the Finance team.
CAPEXP_ALL
ALL
Core
OUCs
Capital Creditors
Description
This base is used to apportion capital creditors relative to the capital additions (purchase of Fixed Assets) made
over the year.
Capital creditors are the value of authorised invoices for capital expenditure due to suppliers, but that are unpaid
at the accounting period end. The detailed base is a system generated ratio that is derived from the ASPIRE
system using a two stage approach; this is recalculated each time the capital addition costs are updated. Each
base has two stages as follows:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. CAPEXP).

The Accounting Separation (AS) Cost centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
Diagram: Capital Creditors Apportion Process.
53
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
in Aspire from
which bases are
is
derived by Cost
Centre
Use
F8's
Use
F8s
to to
produce
data
in
produce
data
ASPIRE
in ASPIRE
ASPIRE:
array
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Array :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Array:
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
CAPEXP_Diagram1
“CAPEXP”, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. all non-pay capital additions (purchases of Fixed Assets) during the year. This data is held within the
system by AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Methodology
The CAPEXP base represents a smaller number of Products that are within the ‘ALL’ BT Group AS Cost Centres and
the existing CAPEXP base is apportioned to the existing array of AS Cost Centres.
Apportionments from
DD1 (CAPEXP)
Income / cost to
be apportioned
Capital Creditors
DD1: CAPEXP
Purchase of Fixed
Assets during year.
AS Cost Centres
in DD2 (ALL)
DD2: ALL
BT Group Cost
Centres
CAPEXP_Diagram2
Data Source/s
System generated base from ASPIRE.
CAPEXP_PCT
B, D, J,
K, DT,
DM and
M
Capital Creditors
This base is used to apportion capital creditors relative to the capital additions (purchase of Fixed Assets) made
over the year.
Capital creditors are the value of authorised invoices for capital expenditure due to suppliers, but that are unpaid
at the accounting period end. The detailed base is a system generated ratio that is derived from the ASPIRE
system using a two stage approach; this is recalculated each time the capital addition costs are updated. Each
base has two stages as follows:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. CAPEXP).

The Accounting Separation (AS) Cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Capital Creditors Apportion Process.
54
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
in Aspire from
which bases are
is
derived by Cost
Centre
Use
F8s
to to
Use
F8's
produce
data
in
produce
data
ASPIRE
in ASPIRE
ASPIRE:
array
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Array :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Array:
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
CAPEXP_PCT_Diagram1
“CAPEXP”, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. all non-pay capital additions (purchases of Fixed Assets) during the year. This data is held within the
system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Methodology
The CAPEXP base represents a smaller number of Products that are within the ‘PCT’ BT Group AS Cost Centres and
the existing CAPEXP base is apportioned to the existing array of AS Cost Centres.
Apportionments from
DD1 (CAPEXP)
Income / cost to
be apportioned
Capital Creditors
DD1:CAPEXP
Purchase of Fixed
Assets during year
AS Cost Centres
in DD2 (PCT)
DD2: ALL
BT Group Cost
Centres
CAPEXP_PCT_Diagram2
Data Source/s
System generated base from ASPIRE.
CCAFIB
BV,BY,
MJ
Access Fibre CCA Adjustment
This base apportions CCA adjustments relating to access fibre to plant groups (PGs).
Methodology
CCA adjustments are allocated to the following two PGs based on the existing cost bases for these PG weighted to
take into account their relative share of total CCA valuation of access fibre for the year.
• PG111c
• PG959C
Data Source/s
Costing bases PDTLFDC and PDTLFSC, and Life of Plant (LoP) list.
CUMNORM
W
BT’s Cumulo Rates liabilities)
Description
BT’s cumulo rates liability covers what we pay in non-domestic rates on its rateable network assets in the UK. Non
domestic rates are effectively a form of property tax. Most businesses pay rates on properties and other rateable
assets that they occupy.
The rateable assets within BT’s cumulo assessment include exchange buildings, telegraph poles, duct, manholes,
cabinets, payphones, copper and fibre. Under rating principles these are assessed together, hence the term
“cumulo”. Other parts of BT’s property estate - e.g. offices and workshops - are assessed separately and do not
55
Dettailed Attribution
n Methods (DAM) 2012
Secction 4 – Base Meethodology
Base Ref
R
OUCC
Descrip
ptions (For all descriptions
d
be low, see Appen
ndix E for Key Destinations)
form part
p of BT’s cumulo assessmentt.
Non-domestic rating liabilities are caalculated by app
plying a rate in the
t pound (ratee poundage) to a rateable valuee
(RV). Rate
R poundagess are the same fo
for all ratepayerrs in each UK country. RVs are sset by the UK raating authoritiess
under statutory
s
rating
g law and princi ples.
The ratteable value of BT’s cumulo asssessment refleccts the value of all
a the assets coonsidered together. This cannott
be deconstructed to re
eflect individuaal lines of busineess or individual products. The base apportion
ns BT’s cumulo
ucts and servicees.
rates charges to produ
Rate poundages gene
erally increase bby RPI each yearr. RVs are reset every five yearss; however ratepayers may
appeall their RVs if the
ey believe theree have been “maaterial changes in circumstancee” (MCCs). What constitutes a
valid MCC
M is defined by
b legislation.
In receent years BT has successfully apppealed its cumulo RV primarily
y as a result of i ncreased levels of unbundling..
The CU
UMRBTE base ap
pplies to the chaanges to BT’s cu
umulo liabilitiess as a result of inncreased unbun
ndling. The
CUMNORM base applies to all other B
BT cumulo liabilities.
odology
Metho
BT’s cu
umulo rates charge is allocated to products and services using
g a three stage pprocess.
Staage 1:
BT’s cumulo liabilitiess are divided intto those to be allocated
a
using tthe CUMNORM
M base and thosee
to be allocated using the CUMRBTE base.
Staage 2:
CUMN
NORM base costts are allocated across line of business (LoB) a nd the rateable
e classes of workk
(CoW)) using profit weeighted net replacement costs at the start of tthe rating valuaation period.
Staage 3:
These CoW liabilities are then allocatted to plant gro
oups, componennts and then serrvices using
standaard LoB allocatiion bases.
Ration
nale
The keyy principle unde
erlying the alloccation is that it should reflect the use or occuppation of rateab
ble assets. The
use of profit weighted
d NRCs (PWNRCCs) as the primarry allocation basis can be show
wn to have clear links back to th
he
underlyying rating and valuation theoory in that it is a reasonable proxy for the expeccted return on the
t landlord’s
assets under the hypo
othetical rating ttenancy. The usse of PWNRCs produces a relatiively stable and
d consistent
allocattion. It is also superior to other potential basess – for example service revenuees or product prrofitability.
Not all of BT’s assets are
a rateable. Fo r example, com
mputer software switching equi pment and mod
dems are not.
The Plaant and Machinery (Rating) (Am
mendment) Ord
der 1974 (and subsequent ameendments) defin
nes those assetss
that arre rateable. The CoWs that incluude rateable asssets are set out in the table bellow.
The above list exclude
es exchange buiildings (specialissed accommoda
ation) as these aare no longer part of BT’s fixed
d
assets following
f
their sale to what is nnow Telereal Trillium in 2001. However BT is tthe rateable occcupier of these
assets so
s they need to
o be included. Thhe NRCs of exch
hange buildingss have been valuued by Telereal Trillium using a
methodology consiste
ent with that appplied to the corrresponding BT estate prior to tthe 2001 sale.
Profit weighted
w
NRCs are calculated bby applying thee return reported in the RFS forr each market (A
Access, Other
Wholessale and Wholessale Residual) too the NRC of eaach CoW allocated to that markket as at the ratiing valuation
56
Dettailed Attribution
n Methods (DAM) 2012
Secction 4 – Base Meethodology
Base Ref
R
OUCC
Descrip
ptions (For all descriptions
d
be low, see Appen
ndix E for Key Destinations)
date.
For NG
GA, the valuation authorities cuurrently apply an incremental fixed rateable vaalue per connecction as an MCCC.
This is apportioned in the same way aas the main charge but only acrross the assets tthat NGA uses.
The Orrganisational Un
nit Code (OUC) ffor CUMNORM is W.
Data Source/s
Current Cost Accounting (CCA) valuattions at year end.
ds.
ASPIREE P12 download
CUMR
RBTE
W
CUMRB
BTE (Unbundlin
ng driven reducttions to BT’s Cumulo Rates liab
bilities)
Descrip
ption
See CU
UMNORM for a general
g
descripttion of BT’s cum
mulo rates liabilities and the alllocation approaach. CUMRBTE
covers the reductions in BT’s cumulo rates liabilities as a result of increased unbunddling. Other chaanges to BT’s
cumulo
o liabilities are allocated
a
using CUMNORM.
Metho
odology
Unbun
ndling causes a loss of value in B
BT’s core netwo
ork and it is this effect that the valuation authorities estimatee
when they
t
reassess BTT’s cumulo RV fo
for increased un
nbundling.
CUMRB
BTE liabilities arre therefore alloocated in exactly the same way
y, using the sam
me principles and
d rationale, as
CUMNORM except thaat in Stage 2 th e liabilities are apportioned
a
across core rateabble classes of wo
ork (CoW) only.
The rellevant CoW thatt includes ratea ble core assets is shown in the table below.
The Orrganisational Un
nit Code (OUC) ffor CUMRBTE iss W.
Data Source/s
Current Cost Accounting (CCA) valuattions at year end.
ASPIREE P12 download
ds.
DTNCA
AP2
BC, BV
Postal Services Non Pay
P
Descrip
ption
This baase apportions costs
c
relating too the Openreach
h Line of Busine
ess (LoB); F8 2009340 codes (Po
ostal Services
Non-p
pay) which is normally used to ccollect non-payy cost for postal services.
But, in Organisation Unit
U Code (OUC)) BC, the code has
h been used to
o process adjusttments that are part of the
capitalisation of Field Provision costss. These adjustm
ments are uncon
nnected to postaal services.
OUC BC undertakes cu
ustomer relatedd activities that are
a collectively described as Fieeld provision. The work involveed
is curreent account butt part of the cossts booked to th
hem are validly capitalised
c
on too the equivalen
nt capital classess
of work (CoW). The cu
urrent account ccosts involved in
n this case are for a variety of aactivities such ass tools and small
stores, Travel and Sub
bsistence (T&S), fuel, clothing, materials handlling charges.
Capitallisation would generally
g
happeen by the curren
nt account CoW being credited and the require
ed debits applieed
to equivalent capital CoW.
C
However, in this case thee capitalisation credit
c
is appliedd to F8 209340 while the debitts
are still applied to the appropriate caapital CoW. By so doing, the debit values on thhe appropriate capital
c
account
CoW arre correct and the Field provisi on Current acco
ount costs are not reduced to zzero but are stilll in debit.
Metho
odology
Financce Analysts from
m Reporting Plannning and Analyysis (RPA) provide details of hoow much has be
een capitalised
againstt the relevant caapital CoW. Eacch capital CoW is assigned to th
he relevant Plannt Group (PG) acccording to its
treatm
ment in ASPIRE. The costs are appportioned to the PGs in propo
ortion to the am
mounts capitalised to each
57
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
capital CoW.
Data Source/s
Capitalisation data from RPA cumulative to P9. Management believe this to be is reflective of the full year.
DTNCNSPO
J4
CNS POLO
Description
This base attributes the costs relating to the usage of the Communications Networking Services (UK) (CNS)
Network.
Methodology
The data regarding payments made to Other Administrations is extracted from the Office of National Statistics
(ONS) report by Product.
From the supporting documents to this report the data can be split into Retail Fixed, Retail Mobile, Wholesale and
International Termination Service (ITS) payments by Product. The percentages of payments appropriate to Retail
International Direct Dialling (IDD), Retail Integrated Services Digital Network (ISDN), Intelligent Virtual Private
Network (iVPN), Freefone, Wholesale and ITS are then calculated. The percentages for Fixed and Mobile are
calculated separately for each Product.
Costs are apportioned to CB561 (Interconnect Payment of Other Communication Providers) and to P861 (Other Non Outgoing IDD (CNS)) for ITS.
BT’s ITS provides wholesale carrier customers with a solution for terminating international voice traffic. BT iVPN is
a next-generation network service that can substantially improve BT customers’ business processes and the
performance of their business applications.
Data Source/s
The data used is for Period 12 (cumulative).
The payment data is obtained from the ONS report issued by Steria India on behalf of BT. It is produced from
Oracle Business Intelligence using the billing system IXBS NG (Interconnect Bureau Service New Generation) as its
data source.
Retail IDD volume data is obtained from the Call Statistics Centralisation System (CSCS) analysis provided by the
BT Retail Finance team.
DTNCOP
MP
Engineering Staff Pay and Store Issue Costs – Payphones and Chargecard
Description
This base apportions the expenditure incurred on engineering pay, stores costs and contract/other purchases to
provide maintenance of the public payphones mechanisms relating to Organisational Unit Code (OUC) MP.
OUC MP represents the management and support of the Payphones and Chargecard unit in the mainland of Great
Britain, with the exception of parts of Scotland (Highlands and Islands).
Methodology
This base is derived from 2 elements:

Fault Identification and Time Recording.
BT Payphone engineers record their actions against a specific clear-code which is processed via the Payphones
‘eRIC’ system and then passed on to Customer Service Systems (CSS) and the Payphones Data Warehouse (DW).
The reporting functionality of the DW enables the engineering activity to be analysed by Product type and activity
and the time spent on the different activities to be derived.
Each fault type is notated to show which of the Accounting Separation (AS) Products or Plant Group (PG) it relates
to. The sum of the total time spent on each Product/PG (faults x time per fault) is then used to determine the
weighted apportionments to the AS Products.
The resulting apportionment is then applied to the pay cost by classes of work (CoW) to generate the pay
expenditure allocation.
The fault data should relate to as much of the period being analysed as is possible.

Stores.
Maintenance stores are either replenished following use by the Payphone Engineer or are ordered by the
Payphones’ Control for project work. Replenishment is managed by eRIC (mentioned above) which feeds into the
58
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Automated Supply Chain (ASC) stock ordering system whereas project items are ordered direct from ASC.
The eRIC system uses the details of the payphone being worked on to determine the CoW that the stores cost is
allocated to.
The base apportionment is achieved by collating the stores costs by item code, with each item code being notated
as being pertinent to one of the Payphones AS Products or PG. This generates a weighting of the costs, which are
obtained from the Central Information Database (CID).
Aggregation of the above
The resulting costs from elements 1 and 2 are aggregated to derive a final weighted apportionment.
NOTES
The basis for the allocation of costs to the applicable AS Product is either by a discrete method, i.e. where fault
clear codes or stores items relate to a specific Product such as Multimedia, or (as in the case of public payphone
maintenance) by a determination dependant on the clear code or stores item. For example, the following faults
and stores item usage are pointed to the Retail Payphone AS Business (Product Group G573) or to the Payphone
Operations PG (PG622A) as shown:
G573

Coin/card entry.

Coin runway/escrow/Validator and card reader.

Cash compartment.
PG622A

Handset/cord.

Keypad/button.

Software.

Mechanism casing faults.
Expenditure associated with PG622A is deemed to be generic in providing access from a payphone to the BT
network whereas maintenance costs relating to direct call revenues are proper to G573 (see base PG622A).
ASC, Non-ETG Time Recording (NETR) and CID are National BT Systems whereas eRIC is a system owned by the
Payphones Business.
The fault records, stores items consumed and ledgered values used to construct the base are obtained so as to
cover as much of the period being evaluated as is possible. This may vary year-on-year.
Data source/s
Average weighted Fault clears – sourced eRIC (BT Payphones system).
Stores data – sourced from CID.
Non pay expenditure – sourced from CID.
DTNFA
WP, R
BT Property Fixed Assets
Description
BT sold a major portion of its property estate to Telereal, and now leases many of the properties it occupies. The
remaining properties will be held until sold. This base is used to apportion the Net Book Values (NBV) of the
retained BT Property Fixed Assets.
Methodology
The BT asset values are apportioned using an analysis of the transfer charges made to the BT occupants.
Overview of Transfer Pricing Process
A regular review is carried out of space consumed by BT units in BT owned buildings. BT units are then charged for
the occupancy. The base charge is then calculated as floor space times the market rent.
Buildings are designated as either Specialised (e.g. exchanges) or General Purpose (e.g. offices) and the charges
detailed by both OUC and Building on the Group Properties Horizon system.
ASPIRE is used to generate a base for the General Purpose buildings, utilising the charges by OUC and the
corresponding pay bases. The base used to support the Specialised Buildings is derived by an analysis of the floor
59
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
space occupied by equipment type.
The two bases are then combined, weighted by the relative charges, and applied against the BT Retained Estate
Fixed Asset values.
Data Source/s
Horizon and ASPIRE: Cumulative to and including Period 12.
Horizon maintains building financial and floor space usage data, by Organisational Unit Code (OUC), and is used
to bill users for occupancy. The Building Fixed Asset values are therefore apportioned based on usage.
DTNFA
Y3
Motor Transport Fixed Assets
Description
This base apportions the Net Book Value (NBV) of Motor Transport fixed assets.
Methodology
This Group unit makes detailed internal transfer charges with regard to which units use its service, an ASPIRE
report can be produced of the internal transfer charges identifying the Products and Plant Groups (PGs) which are
served by it and an apportionment is made on this basis.
Data Source/s
Management have used ASPIRE internal transfer charges reports for cumulative Period 12.
WILLOW (Fleet management system on which all vehicles are tracked and monitored).
DTNIH
BV
Plant Protection Officers (PPOs)
Description
This base apportions Profit and Loss (P&L) Non ETG Pay costs of Plant Protection Officers (PPOs) and other
employees under the requests of External Plant Maintenance Control. This unit safeguard BT’s plant from other
entities that plan to undertake site works around BT plant (mainly underground equipment). For example, if a gas
company is planning to dig up an area to complete work on a gas main, a BT PPO will go to the site before the gas
company commences their work and mark the areas where BT plant exists. Therefore the gas company will know
to be cautious when digging in those areas.
Methodology
The costs being apportioned are typically employee costs and are apportioned to the range of Plant Groups (PGs)
and Activity Groups (AGs) which equate to the plant protected by this service.
The Costs are apportioned using an analysis of depreciation costs during the year allocated to the appropriate
plant types.
For example, if the relevant PGs were only copper and optical fibre and £25 million was spent on copper cable
during the year and £50 million was spent on optical fibre cable during the year, then two thirds of the plant
protection costs would be apportioned to the optical fibre PG and one third would be apportioned to the copper
cable PG.
Data Source/s
Management have used a cumulative period analysis of depreciation costs which they believe to be reflective of
the full year.
DTNIK
MJ
Northern Ireland, Customer Service Centres
Description
This base apportions the pay and non-pay costs (in Organisational Unit Code (OUC) MJ and F8 codes 153025/
207521 only) associated with the Customer Contact Centres (CCC) staff involved in Billing, Inland and
International Directory Enquiries and Operator Assistance Services, Customer Complaints, Provision Service, Fault
Reporting and Repairs and general enquiry activities.
Types of costs are Profit and Loss (P&L) Current Non-ETG pay and Balance Sheet (Fixed Asset) costs.
Methodology
Data is used from the Call Centre Internal Trading Model developed by Customer Service Finance.
The model is considered to be fit for purpose and the business units now receive monthly statements and accept
the charges derived from the model.
60
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
The QBC (Queue Based Costing) Model matches volumes to Customer Service (CS) costs by call queue levels. Data
sources are from the Merlin and Nexus systems, which are Performance and Management Information Reporting
systems.
Each call queue either has a Product identifier so it can be pointed directly to Products or, where it doesn’t, it is
treated as follows:

Where the Product identifier is ‘All Products’, then it is broken down further by sub-Product identifiers into
activities including Consumer and Business Repair, Billing, Provision Service (PSU) and various others. The
repair element is apportioned to Products by using an analysis of fault clear codes from Galileo. The Billing
element is apportioned by spreading across Residential Revenue (agreed certain sectors only), the rationale
being that the Billing activities are representative of all Consumer spend and therefore the cost of those
Billing activities should be spread across all Residential revenue. The remaining other All Products activities
are apportioned across either Residential, Business, Major Business or Northern Ireland Revenue as
identified by the appropriate Business Unit.

Where the Product identifier is ‘Calls and Lines’, that element is pointed to an agreed range of Calls and
Rentals Products and spread across Residential Revenue.

Where the Product identifier is described as ‘Not TLC’ (Total Labour Cost), that element is recognised and
treated as an overhead of the whole base.
Data Source/s
Galileo, Merlin and Nexus systems.
DTNURS
AL
Unallocated Returned Stores
Description
This base apportions Profit and Loss (P&L) stores costs associated with the value of Unallocated Returned Stores.
These Unallocated Returned Stores relate to stores originally issued to engineers which have subsequently not
been required, or used, and have been returned by the engineer against classes of work (CoW) URS.
CoW URS includes:

With OUC, CoW and Job/Estimate number.

Stores returned with OUC details but with missing or invalid CoW Job/Estimate number.

With OUC CoW and Job/Estimate number where the job has been closed and removed from CMS.
Methodology
Since the stores have been returned with an invalid or missing CoW, the basis of apportionment is determined
relating to the stores issued to the Operate Line of Business (LoB) during the year, as identified by the stores costs
on the Central Information Database (CID).
Data Source/s
CID Period 10.
DTNURS
BC, BV
Unallocated Returned Stores
Description
This base apportions Profit and Loss (P&L) stores costs associated with the value of Unallocated Returned Stores.
This balance relates to stores originally issued to engineers which have subsequently not been required or used
and have been returned by the engineer against classes of work (CoW) URS.
CoW URS relate to Stores returned with Organisational Unit Code (OUC) details but with missing or invalid CoW
information).
Methodology
Since the stores have been returned with an invalid or missing CoW, the basis of apportionment is determined
relating to the stores issued to Openreach Line of Business during the year as identified by Openreach Finance
using the stores ratios calculated by them.
Data Source/s
Operate Period 12 Stock Report.
61
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DTNURS
BT
Unallocated Returned Stores
Description
This base apportions Profit and Loss (P&L) stores costs associated with the value of Unallocated Returned Stores.
This balance relates to stores originally issued to engineers which have subsequently not been required or used
and have been returned by the engineer against classes of work (CoW) URS.
CoW URS relate to Stores returned with Organisational Unit Code (OUC) details but with missing or invalid CoW
information).
Methodology
Since the stores have been returned with an invalid or missing CoW, the basis of apportionment is determined
relating to the stores issued to Openreach Line of Business during the year as identified by Openreach Finance
using the stores ratios calculated by them.
Data Source/s
Operate Period 12 Stock Report.
DTTCE
ALL
Core
OUCs
Trading Stocks – Network Equipment
Description
This base apportions trading stocks arising as a result of BT’s trade in network equipment, such as private circuits,
optical fibre network etc. These fixed assets relate to the engineering stores entitled ‘Materials Awaiting
Installation’.
Methodology
The ‘Material Awaiting Installation’ balance is apportioned using the closing stock balances from stock reports
that are maintained and provided by the Swindon Stock Accounting Unit.
Each item of BT’s stock is assigned a Quarterly Rolling Forecast (QRF) code (groups of item codes with similar
functional categories) and the base is derived from a download of closing stock balance by QRF code specifically
for network stock. A separately maintained spreadsheet maps each QRF code to a specific ASPIRE Accounting
Separation (AS) cost centre based on the description assigned to the QRF code in question e.g. QRF code 72
relates to public payphones for which there is a specific AS Product.
Data Source/s
The data is sourced through the Automated Supply Chain (ASC) system which is a stores ordering, issuing and
reporting system. The data is then fed through Management Information Database (MIRAS) before being
forwarded by the Data supplier.
Stock report that gives closing balances by QRF. Spreadsheet that maps QRF codes to AS cost centres.
Management have used a cumulative period which they believe to be reflective of the full year.
DTTCY
ALL
Core
OUCs
VAT
Description
This base apportions the Output VAT creditor, which arises from the VAT collected by BT from UK customers for
forwarding on to HM Customs and Excise department. These VAT creditor balances are attributed pro-rata using
BT's core revenue.
Methodology
This base is prepared using revenue generated by BT UK sourced from apparatus sales, connection charges, other
single payments, rentals, enhanced maintenance, calls gross, calls discounts and receipts from Other
Communication Providers (OCPs). These different classifications of revenue equate to specific sectors (groups of
General Ledger codes with similar functional categories) within the ASPIRE system.
The apportionment for this base is derived from a download of BT’s UK revenue from the ASPIRE system for each
of these sectors by cost centres and is solely apportioned to Products.
Data Source/s
ASPIRE Period 12.
EXCEPT
AB,
ABC,
ABT,
BT Operate : Service Delivery Management & Support
Description
62
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
ABA,
ABB,
ABZ
The Service Delivery unit supports a wide range of functions, including Field Engineering, delivering service for a
discrete range Products, and BT’s Energy & Carbon team.
The following units support these operational line functions:

Service Delivery Management & Support [AB].

Complex Customers & Migrations [ABC] – executes service fulfilment for non-standard contracts, and
provides an end to end service migration capability.

Service Development [ABT] – transformation of Service Delivery, encompassing strategy and change.

Service Performance [ABA] – focusing on understanding the customer facing LoBs service requirements, and
ensuring that there are robust plans in place to deliver.

Production Planning [ABB] – focuses on demand, resource and people capacity management.
Methodology
The apportionment of Service Delivery Management & Support units’ costs is calculated as an overhead of total
Service Delivery Capital + Current Account Pay.
Data Source/s
ASPIRE, previously apportioned Capital & Current Account Pay.
EXCEPT
ABD
BT Operate Service Delivery : UK Data Service Delivery
Description
The UK Data Service Delivery unit delivers service for products such as IP Clear, Private Circuits and Harmonised
Ethernet.
The unit’s management and support team support the engineering activities.
Methodology
The apportionment of UK Data Service Delivery management & support costs is calculated as an overhead of their
engineering Capital + Current Account Pay.
Data Source/s
ASPIRE, previously apportioned Capital & Current Account Pay.
EXCEPT
ABE
BT Operate Service Delivery: Service Enablement
Description
The Service Enablement unit is responsible for the capacity management of BT’s Network, Power, and
infrastructure.
The unit’s management and support team support the engineering activities.
Methodology
The apportionment of Service Enablement management & support costs is calculated as an overhead of their
engineering Capital + Current Account Pay.
Data Source/s
ASPIRE, previously apportioned Capital & Current Account Pay.
EXCEPT
ABM
BT Operate Service Delivery : BT Mobile Service Delivery
Description
The BT Mobile Service Delivery provides a dedicated end to end service fulfilment function for major Mobile
Customers.
The unit’s management and support team support the engineering activities.
Methodology
The apportionment of BT Mobile Service Delivery management & support costs is calculated as an overhead of
their engineering Capital + Current Account Pay.
Data Source/s
63
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
ASPIRE, previously apportioned Capital & Current Account Pay.
EXCEPT
ABN
BT Operate Service Delivery: Field Engineering North
Description
The Field Engineering team is split on a geographic basis, North and South. The unit supports the Trunk Network
i.e. that part of the network not supported by Openreach.
The unit’s management and support team support the engineering activities.
Apportionment Methodology
The apportionment of Field Engineering North management & support costs is calculated as an overhead of their
engineering Capital + Current Account Pay.
Data Source/s
ASPIRE, previously apportioned Capital & Current Account Pay.
EXCEPT
ABS
BT Operate Service Delivery: Field Engineering South
Description
The Field Engineering team is split on a geographic basis, North and South. The unit supports the Trunk Network
i.e. that part of the network not supported by Openreach.
The unit’s management and support team support the engineering activities.
Methodology
The apportionment of Field Engineering South management & support costs is calculated as an overhead of their
engineering Capital + Current Account Pay.
Data Source/s
ASPIRE, previously apportioned Capital & Current Account Pay.
EXCEPT
ABG
BT Operate Service Delivery: BT Energy & Carbon Unit
Description
The Energy and Carbon unit is responsible managing energy, and carbon emissions, across all of BT’s Lines of
Business (LoBs).
Methodology
The apportionment methodology utilises Electricity consumption data from BT Property, which is used to derive
LoBs traded values for Offices and Exchange equipment. The majority of the costs relate to Electricity
consumption by Exchange housed Network Plant and equipment.
Data Source/s
ASPIRE trade data (with an offline analysis of Office Electricity trades calculated by Group Property).
EXCEPT
ABV
UK Voice
Description
This base apportions the labour costs and labour related costs incurred in supporting the infrastructure and end to
end delivery of UK Voice Products.
Methodology
It is considered that the Product set supported by the UK Voice unit within BT Operate Service Delivery team is
consistent with engineer’s Local Digital Exchange (TDX) activities. When BT engineers complete maintenance
work, they book their time into the NJR system under a pre-defined maintenance task type that best describes
the type of work they have completed.
To create the apportionment, a sample of data (from a representative period of the full year) is taken from NRJ
and summarises the maintenance time by maintenance task type. The total times for each maintenance task type
are then allocated to one of the following categories:

Calls.

ISDN2.
64
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

ISDN30.

PSTN.
Data Source/s
NJR System.
EXCEPT
AN
Strategy & Service Introduction (SSI)
Description
The BT Operate SSI unit are the enablers for the successful launch of BT Products and Services from Concept to
Market. This role includes End to End testing of development work packages produced by BT Innovate & Design
(BTID), essentially making sure the computing code does what it should. Much of this testing is done by
subcontractors.
Methodology
SSI recovers its own costs by charging other BT units for its activities. However it also performs testing work for
other BT Operate units, but does not charge for the work. The base is therefore derived from both the charged,
and the non-charged, elements.
The charges largely relate to BTID work, and it follows that the LoB specific BTID bases should also act as the
driver for SSI costs. SSI testing work is therefore being treated as an overhead of each LoB’s BTID activities.
Each LoB analyses the transfer in from BTID using extracts from the BT Design billing system which provides
details regarding what projects/ programmes of work the charges relate to. This data helps determine how to
allocate these costs.
Data Source/s
BT Design Billing System.
EXCEPT
AP, AR,
AC
Service Infrastructure
Description
The Service Infrastructure unit within BT Operate is responsible for keeping BT’s Networks, IT equipment,
operating systems and data centres up and running.
The unit is a cost recovery centre, and recovers its costs by transfer charging other Lines of Business (LoBs) for the
services it provides, using agreed charging criteria.
Methodology
The apportionment of Service Infrastructure costs is derived by utilising an analysis of the costs recovered from
each LoB receiving a transfer charge. The Service Infrastructure trading support team maintains details of the
charging categories including Servers and Storage, Main Frame Computers support, Application Support and
Maintenance, Personal Computers, IT Helpdesk, as well as specific LoB Computing Support teams.
Each charging category is apportioned using a methodology appropriate to the activity being supported. For
example LoB’s Application Support and Maintenance is apportioned using application data maintained by the
billing team. Where the cost causation is more general in nature, LoB Current and Capital Account pay is used as a
driver as this is considered to be representative of all the LoB’s activities.
The overall base is calculated by using the transfer charges to derive a split between the LoB, and then using the
methodologies described above to apportion each of the LoB elements to Plant Groups (PGs) and Products.
Data Source/s
BT Operate Service Infrastructure / Service Management Trade Support Team, and their TRF Costs and Trades
Analysis.
EXCEPT
AU
Service Management
Description
The Service Management unit within BT Operate provides second line service support, monitoring and managing
IT services, with emphasis on communication with the customer facing units.
The unit is a cost recovery centre, and recovers its costs by transfer charging other Lines of Business (LoB) for the
services it provides, using agreed charging criteria.
Methodology
65
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
The apportionment of Service Management costs is derived by utilising an analysis of the costs recovered from
each LoB receiving a transfer charge.
Each charging category is apportioned using a methodology appropriate to the activity being supported. Where
the cost causation is more general in nature, LoB Current and Capital Account pay is used as a driver as this is
considered to be representative of all the LoB’s activities.
The overall base is calculated by using the transfer charges to derive a split between the LoB, and then using the
methodologies described above to apportion each of the LoB elements to Plant Groups (PGs) and Products.
Data Source/s
BT Operate Service Infrastructure / Service Management Trade Support Team, and their TRF Costs and Trades
Analysis.
EXCEPT
AW
BT Security
Description
BT Security is responsible for keep BT buildings secure, and protecting BT’s networks and systems from outside
interference.
Costs include those for BT people, and also subcontracted security contracts.
BT Security is situated in the BT Operate LoB but provide a group wide function which includes:

Access to Buildings and ID cards.

Security Training.

Systems & Data Security.

Internet & e-mail Security.

Vetting and screening of staff.
Methodology
A base is derived from Gross Asset Values, as it is considered that BT Security supports all the assets of the
business, both Property and Network. However underground assets, such as Duct and Fibre, are excluded as these
are considered to be secure, mainly due to their location.
Data Source/s
Asset Gross Book Values and apportionment bases from ASPIRE.
EXCEPT
BB, BE
Openreach Chief Information Officer (CIO) unit
Description
Organisational Unit Code (OUC) BD is responsible for information systems within Openreach. The Openreach CIO
team directs and manages the systems agenda and associated development budgets working with transformation
teams to ensure that these systems are a key enabler for a successful Openreach.
Methodology
The BD exceptions base follows the treatment of internal transfer charges for development projects for
Openreach.
Development projects can range from high-level strategy, down to operational and logistical development.
Development project costs are apportioned according to the nature of individual projects.
The costs of each project are individually analysed and apportioned across a range of Plant Groups (PGs).
Projects that are specific to a Product e.g. Local Loop Unbundling (LLU) and Wholesale Line Rentals (WLR) are
allocated 100% to PG772A Openreach Systems and Development (Product Specific). The rest of the development
projects are non-Product specific.
Non Product/platform specific projects are apportioned across all PGs in proportion to BT Openreach pay costs
obtained from ASPIRE.
Data Source/s
Development projects data cumulative to Period 11.
ASPIRE Pay downloads.
66
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
EXCEPT
BC, BF,
BH, BJ,
BK,
BN,BM,
BT, BX,
BY, BZ
Openreach Support Departments
Description
This base apportions Profit and Loss (P&L) Depreciation, Travel and Subsistence etc. and Balance Sheet (Fixed
Assets etc.) costs associated with the Openreach Support departments. There is no material element of their costs
that require direct apportionment.
Methodology
Costs follow a full Line of Business (LoB) pay exception base i.e. costs follow the apportionment of direct pay from
the operational departments. This unit’s costs are thought to support the whole of Openreach.
Data Source/s
The exception base is calculated from all ETG and non-ETG Pay within Openreach, calculated directly from ASPIRE
downloads.
EXCEPT
BMA,
BME
Openreach Service Division
Description
This base apportions the Profit and Loss (P&L) Pay etc. costs associated with Organisational Unit Code (OUC)
BMA. BMA is the Service division of Openreach. The teams within BMA are primarily call centre based, with staff
supporting the provisioning and repair of Openreach services. As the various teams support specific services, their
costs cannot be spread on a Direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the BM Finance Team. The BMA base is then
constructed by reference to the respective service that each team member works on. Where a team works for a
specific service (for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes.
Data Source/s
Headcount analysis is received from the BM Finance team.
EXCEPT
BP
Openreach Sales and Product Management team
Description
This base apportions the Profit and Loss (P&L) Non-ETG Pay etc. costs associated with Organisational Unit Code
(OUC) BP. BP is the Sales and Product Management division of Openreach. As the various teams support specific
services, their costs cannot be spread on a direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the BP Finance Team. The BP base is then constructed
by reference to the respective service that each team member works on. Where a team works for a specific service
(for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Residential
and Business lines by reference to their respective P12 volumes.
Cost from the above categories are allocated directly (100%) to PG502B SG&A Openreach Sales Product
Management.
Data Source/s
There are not data requirements for this base since all costs are allocated directly to PG502B.
EXCEPT
BVCB
Openreach Service Division
This base apportions the Profit and Loss (P&L) Pay etc. costs associated with Organisational Unit Code (OUC)
BVCB. BVCB is the Ethernet Delivery Service division of Openreach. The teams within BVCB are primarily staff
supporting the provisioning and repair of Openreach services.
Methodology
A breakdown of each team’s headcount is obtained from the Finance Team. The OUC base is then constructed by
reference to the respective service that each team member works on. Where a team works for a specific service
(for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Residential
and Business lines by reference to their respective P12 volumes.
Data Source/s
67
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Headcount analysis is received from the Finance team.
EXCEPT
BVN7
Description
This base apportions the Profit and Loss (P&L) Pay etc. costs associated with Organisational Unit Code (OUC)
BVN7. BVN7 is part of the Service division of Openreach. The teams within BVN7 are primarily call centre based,
with staff supporting the provisioning and repair of Openreach services. As the various teams support specific
services, their costs cannot be spread on a Direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the Finance Team. The OUC base is then constructed by
reference to the respective service that each team member works on. Where a team works for a specific service
(for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Residential
and Business lines by reference to their respective P12 volumes.
Data Source/s
Headcount analysis is received from the Finance team.
EXCEPT
EXCEPT
BVS,
BVS7,
BW,
BWA,
BWA1,
BWA2,
BWA3,
BWA4,
BWA5,
BVF,
BWB,
BWC,
BWD,
BWE1,
BWE2,
BWE3,
BWF
Openreach Service Division
C
Corporate Costs
Description
This base apportions the Profit and Loss (P&L) Pay etc. costs associated with Organisational Unit Code (OUC) BVS.
BVS is the Service division of Openreach. The teams within BVS are primarily call centre based, with staff
supporting the provisioning and repair of Openreach services. As the various teams support specific services, their
costs cannot be spread on a Direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the Finance Team. The OUC base is then constructed by
reference to the respective service that each team member works on. Where a team works for a specific service
(for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Residential
and Business lines by reference to their respective P12 volumes.
Data Source/s
Headcount analysis is received from the Finance team.
Description
The costs within this OUC include costs relating to personnel and administration, computing, planning and
development, general support and general management type costs. These costs are identified as ‘Corporate
Costs’, which support BT in general (both the people in BT and the management of its assets).
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are allocated 100% to the Corporate Costs AG AG112.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
EXCEPT
CRG
Group Internal Communications
Description
This base apportions the Profit and Loss (P&L) costs (e.g. current ETG and Non ETG Pay) associated with BT's
internal communications team. The team keep BT employees informed about major company issues and
initiatives. Costs are mainly pay, internal publicity and postage. The costs are attributed pro-rata to previously
attributed core pay using the core pay base which is derived as follows.
Methodology
A Total Pay report is run to attribute costs to Products/Plant Groups (PGs)/Activity Groups (AGs) using an ASPIRE
period that is representative of the full year. The destinations Products PGs/AGs of Line of Business (LoB) labour
costs are identified. This method of apportionment is referred to as ‘previously attributed pay’. The labour costs of
each destination Products/PG/AGs are first checked against the Product Exclusion Table (PEXT) to eliminate
68
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
subsidiary and regulatory Products and then weighted as a percentage of the total, to produce a core pay base.
Data Source/s
ASPIRE core pay apportionments. Management have used a cumulative period which they believe to be reflective
of the full year. The team supports all BT people in the core business.
EXCEPT
D
BT Innovate & Design (BTID) – Development and Consulting Projects
Description
BTID provides research, development and consulting services for BT by developing technological ideas and
solutions for the business. Research, development and consulting projects are typically commissioned by an
Organisational Unit Code (OUC) and may be:

General in nature if commissioned by an OUC which supports a wide range of Products.

Specific to a particular Product/set of Products if commissioned by an OUC focused on that particular
Product(s).
Chief Technical Officer (CTO) is treated as an overhead of the Design Unit as its activities are directly related to it.
Apportionment Summary
The apportionment of Development costs is made using an analysis of the business cases for each Line of Business
(LoB) receiving the transfer charge from BTID. There is an internal billing system that is used by BTID that holds
details of all work undertaken, the cost and for which OUCs the work is carried out. This system enables internal
charges to be generated to other BT units.
Methodology
BTID provide research, development and consulting services for BT by developing innovative, technological ideas
and solutions that translate into practical and marketable solutions for the business. Research, development and
consulting projects are typically commissioned by an OUC.
This group recovers its cost by charging other BT units for its activities. It does this by maintaining records of the
units 'owning' the expenditure and can recover the costs using internal transactions. It therefore follows that the
activities of the units being charged, weighted by the amounts each are being charged by BTID, should provide an
appropriate base to apply to the costs incurred by BTID.
The transfer charges to each LoB are analysed to produce a base using extracts from the BT Design billing system.
The BT Design billing system provides details regarding what projects/ programmes of work the charges relate to.
This data helps determine how to allocate these costs. Once these transfer In have been analysed by each of the
LoB they are consolidated into one weighted base.
Each of the individual business cases billed to LoBs by BTID is analysed separately and allocated to the
appropriate products / Plant Groups, so for example, if a business case is for 21CN, its costs are allocated to 21CN
PGs. Where the projects are non-product/platform specific and are general in nature, as for a process for
example, the cost causation is more general in nature, LoB Current and Capital Account pay is used as a driver as
this is considered to be representative of all the LoB’s activities. The exception to this is Group costs charged to
OUC C which are allocated to AG112 (Corporate).
Data Source/s
BT Design Billing System.
EXCEPT
E
Miscellaneous Corporate Spend
Description
This base apportions “Corporate Costs” include those relating to personnel and administration, computing,
planning and development, general support and general management associated with this Organisational Unit
Code (OUC) E. They support BT in general (both the people in BT and the management of its assets) and are
allocated directly to AG112 Corporate Costs.
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are apportioned 100% to AG112 Corporate Costs.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
69
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
EXCEPT
KD, KK,
KU, KY,
KZ
BT Wholesale Functional Units
Description
The five listed OUCs are the main functional units within the Wholesale Line of Business (LoB), covering all aspects
of the relationship with Communication Providers (CPs) and BT Retail downstream. These units get involved with
activities that span the whole WS portfolio which are marketed to external communication companies and also
other BT LoBs such as Retail and Global.
KD – Product Management & strategy
KK – Customer Services
KU – Markets
KY – White Label Managed Services (ISP Co.)
KZ – Managed Services
The type of costs covered by these OUC exception bases will be people and pay related. These costs are reported
under the title Sales and General Administrative activities.
Methodology
An annual FTE activity based survey is conducted by the Wholesale costing team and is comprised of a mixture of
supporting data. This includes estimates of resource working on particular products, product volumes and
revenue.
An additional analysis of Managed Network contracts supported by the BTWS product Finance team is
undertaken to identify the split of regulated and unregulated activity. This is because MNS contracts are
essentially a sales outlet for BT Wholesale catalogue products meaning it is appropriate to allocate some MNS
activities to regulated products.
The level of detail is generally at three and four digit OUC level but will be summarised up to a higher level for
input. The survey line details are agreed in advance with contacts in the LoB to align with their management
accounts view and can therefore change or be redefined on an annual basis.
Data Source/s
Annual BT wholesale SG&A activity surveys.
EXCEPT
KFB
Wholesale Finance – Revenue/Billing
Description
This base apportions Profit and Loss (P&L) costs and Balance sheet items booked to Organisational Unit Code
(OUC) KFB in the Wholesale line of business (LoB). The team within KF are Wholesale Finance, and those within
KFB are revenue management. The costs booked to KFB are people and pay related.
Methodology
The base is derived using the total number of personnel included in the OUC KFB. An annual activity survey
identifies the number of OUC KFB personnel having Interconnect responsibilities and as such this percentage is
apportioned to the Interconnect specific Wholesale plant group PG586N. The remaining percentage is allocated
on the basis of Wholesale Market NCC revenues.
Data Source/s
BT wholesale SG&A activity survey to identify the number of FTEs in OUC KFB involved with Interconnect
activities.
EXCEPT
KO
Wholesale Legal Services
Description
This base apportions Profit and Loss (P&L) costs and Balance sheet items booked to Organisational Unit Code
(OUC) KO in the Wholesale line of business (LoB). The personnel within OUC KO work on Wholesale (Network)
legal and business services and the costs booked to this unit are primarily people and pay related.
Methodology
An annual activity survey identifies the number of OUC KO personnel having Interconnect responsibilities and as
such this percentage is apportioned to the Interconnect specific Wholesale plant group PG586N. The remaining
percentage is allocated on the basis of the BT Wholesale LoB pay overhead as the unit supports all BT Wholesale
activities.
70
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
BT wholesale SG&A activity survey to identify the number of FTEs in OUC KO involved with Interconnect activities.
EXCEPT
M
BT Retail Markets
Description
This base apportions Profit and Loss (P&L) Pay, Travel and Subsistence (T&S) etc. and Balance Sheet (Fixed Asset
etc.) costs booked by Organisational Unit Code (OUC) M (BT Retail Markets) which are not otherwise attributed
using other bases.
The base is used to apportion costs of a general nature for which there is no direct causal relationship with any
Product or service. It covers supervision and general management overheads, relating to the full range of BT
Retail activities.
Methodology
The costs are apportioned pro-rata to the pay costs incurred, on both capital and current account expenditure,
and previously attributed from the OUCs within M, excluding New Start Leaver and Pension costs as these are not
considered as drivers for overhead activities.
A detailed description of the base computation process is described below:
If we assume that there are four OUCs which incur payroll costs within the M hierarchy and that these costs are
booked to two F8 codes. Each OUC incurs £100 of cost, giving a total payroll cost of £400. These costs are
allocated to Products via a preceding iteration of the system processing, as follows:
Products
A
B
C
D
TOTAL
F8 123 /OUC MX
60
40
-
-
100
F8 456 /OUC MY
-
-
30
70
100
F8 123 /OUC MNA
20
-
30
50
100
F8 456 /OUC MFS
-
50
50
-
100
Total
80
90
110
120
400
20%
22.5%
27.5%
30%
100%
Except_M_Diagram1
The table above shows that a total payroll cost of £80 has been allocated to Product A, which represents 20% of
the total payroll cost allocated from M OUCs.
Taking the results of the allocations, as shown in the above table, we would allocate 20% of the costs allocated
under the OUC exception base M to Product A, 22.5% to Product B, 27.5% to Product C and 30% to Product D.
This allocation can only take place after the allocation of direct pay costs from M OUCs has been completed. This
reflects the iterative nature of the system processing.
Data Source/s
ASPIRE Pay data cumulative to Period 12.
EXCEPT
M7
Residential Customer Contact Centres (CCC) Exception Base
Description
This base apportions the pay and non-pay costs associated with the Customer Contact Centres (CCC) staff involved
in Billing, Inland and International Directory Enquiries and Operator Assistance Services, Customer Complaints,
Provision Service, Fault Reporting and Repairs and general enquiry activities.
Types of costs are Profit and Loss (P&L) Current Non-ETG pay and Balance Sheet (Fixed Asset) costs.
Methodology
The methodology is to use data from the new Call Centre Internal Trading Model developed by Customer Service
Finance during the previous year. The model is considered to be fit for purpose and the business units now receive
monthly statements and accept the charges derived from the model.
The QBC (Queue Based Costing) Model matches volumes to Customer Service (CS) costs by call queue levels. Data
sources are from the Merlin and Nexus systems, which are Performance and Management Information Reporting
systems. Each call queue either has a Product identifier so it can be pointed directly to Products or, where it
doesn’t, it is treated as follows:

Where the Product identifier is ‘ All Products ‘, then that is broken down further by sub-Product identifiers
71
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
into activities including Consumer and Business Repair, Billing, Provision Service (PSU) and various others.
The repair element is apportioned to Products by using an analysis of fault clear codes from Galileo. The
Billing element is apportioned by spreading across Residential Revenue (agreed certain sectors only), the
rationale being that the Billing activities are representative of all Consumer spend and therefore the cost of
those Billing activities should be spread across all Residential revenue.
The remaining other ‘ All Products ‘ activities are apportioned across either Residential, Business, Major Business
or Northern Ireland Revenue as identified by the appropriate Business Unit.

Where the Product identifier is ‘Calls and Lines ‘, that element is pointed to an agreed range of Calls and
Rentals Products and spread across Residential Revenue.

Where the Product identifier is described as ‘Not TLC’ (Total Labour Cost), that element is recognised and
treated as an overhead of the whole base.
Data Source/s
Galileo, Merlin and Nexus systems.
EXCEPT
MJ
Northern Ireland Pay Accommodation Costs
Description
This EXCEPT MJ base apportions BT Retail Northern Ireland Organisational Unit Code (OUC) MJ’s pay and pay
related costs, including accommodation.
Methodology
BT Retail Northern Ireland is, both geographically and operationally, a self-contained processing unit within its
parent Division M.
The costs in MJ OUC that use the ‘Except-MJ’ base are apportioned on the basis of the previously apportioned
pay (not pension / leaver) costs particular to OUC MJ, rather than pay costs for the entire Division M. This reflects
the fact that costs in OUC MJ is driven by its activities in a manner that is different from overhead activities of the
other OUCs in Division M.
Diagram: Overview of Divisions and Sub-divisional OUCs
Divisions and Sub-divisional OUCs
Division
E.g. Division M
Sub-divisional OUCs
Standard Processing units
Self-contained Processing Units
E.g. OUC MJ
Except_MJ
Pay costs of the OUC MJ are identified, and will have been previously apportioned in the Accounting Separation
(AS) system using methodologies relevant to the particular pay activities. These apportionments will have
exhausted these pay costs to OUC MJ’s Products and the percentage weights applied to these Products provide
the base ‘EXCEPT-MJ’.
The costs using this base are attributed to the same Products, and in the same proportion, as the previously
apportioned pay costs for the OUC MJ.
Diagram: Except (OUC MJ) Apportionment Process
72
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Except - MJ
F8 Costs
OUC
Costs types
Previous
apportionments
Other costs
OUC MJ
All costs in the
Division M
(Self- contained
processing unit)
x%
y%
Pay costs
z%
Other OUCs in
Division M
Base application
Base derivation
x + y + z = 100%
x%
248992
248005
248004
208756
208752
208600
OUC MJs
Products
Product A
Product B
Product C
Product A
y%
Product B
z%
Product C
Except_MJ_Diagram2
Data Source/s
AS system pay data for Period 12.
EXCEPT
ML
BT Enterprises
Description
This base apportions Profit and Loss (Pay, Travel and Subsistence, etc.) and Balance Sheet (Fixed Asset etc.) costs
associated with BT Enterprises (Organisational Unit Code (OUC) ML) which are not otherwise attributed using
other bases. BT Enterprises comprises BT Conferencing, BT Directories, BT Expedite & Fresca, Redcare, Payphones
and BT Wi-Fi, which operate as standalone businesses.
Methodology
The costs are of a general nature for which there is no direct causal relationship with any Product or service within
ML, therefore the costs are apportioned pro-rata to the pay costs incurred, on both capital and current account
expenditure, and previously attributed from the OUCs within ML, excluding New Start Leavers and Pension costs
as these are not considered as drivers for overhead activities.
Data Source/s
ASPIRE pay data for OUC ML cumulative to and including Period 12.
EXCEPT
MLC
MLC Pay Overhead
Description
This EXCEPT base apportions Profit and Loss (P&L) (T&S, Stationery, Current ETG and Non-ETG pay etc.) and
Balance sheet (Accumulated Depreciation etc.) costs identified with the Organisational Unit Code (OUC) MLC.
BT Directories (OUC MLC) aim to revolutionise the way consumers and businesses get together by delivering
strategic and financial commitments. They focus on three core elements:

Voice.

The Phonebook.

Online.
Methodology
The costs in MLC OUC that use this ‘Except-MLC’ base are apportioned on the basis of the previously apportioned
pay costs particular to OUC MLC, rather than pay costs for the entire Division M. This reflects the fact that costs in
OUC MLC is driven by its activities in a manner that is different from overhead activities of the other OUCs in
Division M.
OUC MLC pay costs are identified (they will have been previously apportioned in the Accounting Separation (AS)
system using methodologies relevant to the particular pay activities) and exhausted to OUC MLC’s Products. The
73
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
percentage weights applied to these Products provide the base for ‘EXCEPT-MLC’.
The costs are attributed to the same Products, and in the same proportion, as the previously apportioned pay
costs for OUC MLC.
Data Source/s
AS system pay data for Period 12.
EXCEPT
MLC2
Phonebooks
Description
This base apportions Organisational Unit Code (OUC) MLC Profit and Loss (Current Non ETG Pay) and Balance
Sheet (Fixed Asset GBV) costs relating to printing, producing and distributing BT’s Phone Book.
Methodology
The BT Phonebooks exception base is apportioned on the basis of a pay analysis completed by the BT Directories
Product Reporting Group. This allocates the costs between the Phonebooks Plant Group (PG) PG933A and the
Miscellaneous Number Information Retail Product P306.
Data Source/s
Management estimates of pay analysis completed by the BT Directories Product Reporting Group carried out at
P9.
EXCEPT
MLC9
Phonebooks
Description
This base apportions Organisational Unit Code (OUC) MLC Profit and Loss (Current Non ETG Pay) and Balance
Sheet (Fixed Asset GBV) costs relating to printing, producing and distributing BT’s Phone Book.
Methodology
The BT Phonebooks exception base is apportioned on the basis of a pay analysis completed by the BT Directories
Product Reporting Group. This allocates the costs 100% to Plant Group (PG) PG933A.
Data Source/s
Management estimates of pay analysis completed by the BT Directories Product Reporting Group carried out at
P9.
EXCEPT
MP
General Payphone and Charge card Costs
Description
This base is used to apportion general Payphone and Charge card costs (Profit and Loss Current Non-ETG Pay etc.)
where no other base is valid.
Methodology
This base uses the allocations employed in the Management Accounts which point non-specific costs to the
various Payphones lines-of-business.
Payphones Base BALS1 is used to weight the apportionments for Public Payphone activity between Retail
Payphones (G573) and Payphone Operations (PG622a).
Data Source/s
Payphones’ management accounts allocations - from the Reporting Accountant.
EXCEPT
MYZ.
MYL
Consumer Sales Operations Exception Base
Description
This base apportions the Profit and Loss (P&L) pay and non-pay costs associated with the Consumer Sales staff
involved in sales, general enquiries and a number of support activities. The major costs attributed by the base
relate to employee and agency costs in operating the Sales organisation.
Methodology
The proposed new methodology is to produce a cost base using weekly/monthly/quarterly Product orders and
sales volumes data from the Consumer Sales Performance Analysis and Improvement group within MYL. The data
is obtained from the GTX and Seibel systems. The full sales volumes by Product for Q1-3 are used and this enables
74
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
us to apportion costs to Products relative to corresponding sales.
In order to apportion costs appropriately, the elements of the base relating to the Public Switched Telephone
Network (PSTN) Connections and Takeovers are weighted by call handling times (received from Consumer Sales
Partnership Management) and all other Products are weighted by a separate call handling time (provided by
Consumer Sales Finance).
Data Source/s
GTX.
Seibel.
Data is cumulative to Period 9 and management believes this to be reflective of the full year.
EXCEPT
R
Group Property Miscellaneous Gains and losses
Description
The base apportions gains and losses related to Group Property balance sheet only.
Miscellaneous gains and losses are an overhead of Group Property’s normal activity so they are apportioned in the
same way as Group Property costs using AG106.
Methodology
All costs within this Organisational Unit Code (OUC) are allocated to the Facility Management Intermediate
Activity Group AG106 for onward apportionment to Products and Services.
Data Source/s
These are allocated directly, no data source/s required.
EXCEPT
WP
BT Property Partners
Description
The base apportions costs associated with BT Property Partners.
WP is the Organisational Unit Code (OUC) for BT Property Partners, who act as the informed strategic interface
between the Lines of Business (LoB), Group and the external property infrastructure and service providers.
Property Partners manages the supply of all property and facilities in accordance with the requirements of BT
Property Partners and also holds, on behalf of BT Group, all interests in land and property including leases and
licences and manages all property and related projects on behalf of LoB) and Group, including appointing and
instructing external property and construction consultants.
Property Partners manages the supply of the following activities for the benefit of the BT Group:

Provision of premises – this includes the provision of land, the allocation of existing/refurbished space and
provision of new space.

Building and plant maintenance/replacement – this includes planned/reactive maintenance and external site
maintenance.

Alteration to accommodation – this includes minor alterations, fit out of accommodation, refurbishment and
upgrade of space.

Moves and space management – this includes managing large-scale people moves, vacation management
and internal space brokerage.

Estate management and strategic advice – this includes property related financial support, strategy planning
and portfolio management e.g. sub-letting.

Rating and valuation – this includes property asset accounting and property taxation cost control in
accordance with current legislation.

Property consultancy – this includes real estate strategy planning, property efficiency and utilisation studies,
call centre build and operation and flexible working advice.

Global property service – this includes portfolio strategy construction, project management and real estate.
Methodology
75
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
All costs within this OUC are allocated to the Facility Management Intermediate Activity Group AG106 for onward
apportionment to Products and Services. Other suitable cost centre allocations are made for relevant Other
Operating Income when material.
Data Source/s
These are allocated directly, no data source/s required.
EXCEPT
Y3
BT Fleet Exception
Description
BT’s Fleet management function provides motor vehicles and associated Products and services to employees
within BT. This is via a 100% BT owned subsidiary called BT Fleet Ltd.
The services that BT Fleet Ltd provide include:

The sole supplier of vehicles (Company cars and Commercial vehicles) to BT, in accordance with customers
agreed requirements.

The replacement of existing vehicles with agreed suitable replacements.

The maintenance of all vehicles to BT.

The provision of a breakdown service through BT fleet nominated agents on a 7 day 24 hour basis.

Provision of fleet management services including the supply of vehicle excise and operator’s Licence discs.

Provision of road fuel to the BT commercial fleet through nationally agreed suppliers via charge cards.

Provision of management information regarding, fleet utilisation, operating costs, fuel usage, and allocation
data.

Provision of customer order work for agreed modifications and additions to BT vehicles.

Provision of short-term vehicle cover via our own daily hire and courtesy fleets.

Provision of accident management services via nominated third party supplier.

Sale of fleet vehicles to BT employees.
Methodology
BT Fleet Ltd provides its services to BT units and also to customers external to BT. It uses transfer codes to charge,
at commercial rates, for the services it provides to the relevant BT units. It records the revenue it receives from
external parties in ‘other operating income’ codes.
This base apportions all the profit and loss (P&L) and relevant balance sheet items relating to this subsidiary to the
following:

The intermediate Activity Group AG101 (Motor Transport).

Products relating to the other operating income received from external parties.
The apportionment between these destinations is determined by reviewing the F8 codes that relate to these two
forms of ‘income’. Reviewing the transfer out codes (F8 codes beginning with 28) identifies services provided to
other BT units. Reviewing the appropriate ‘other operating income’ codes identifies services provided to external
parties.
The apportionment percentages are then calculated as follows:
76
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PXXX
Other Operating Income
Codes
(Relating to services provided
to External Party A)
(Product relates to External
Party A)
(200/1,200)*100 = 17%
£200
PYYY
Other Operating Income
Codes
(Relating to services provided
to External Party B)
(Product relates to External
Party B)
(200/1,200)*100 = 17%
£200
Transfer F8 Codes (28xxxx)
(Relating to services provided
to other BT units)
AG101
(800/1,200)*100 = 66%
£800
Total = £1,200
Data Source/s
Ledger data on ASPIRE, cumulative to and including Period 12.
EXCEPT
YF, YK,
YM, YO,
YP, YV,
YW, YQ
Group Procurement
Description
Group Procurement performs activities associated with the procurement of materials and services (to support
business operations) and the issuing of supplies. This base apportions the Profit & Loss (P&L) costs e.g.
Procurement pay. This is the staff cost in respect of personnel involved in work associated with supplies, for
example, storekeepers, managers and other logistical support staff. Group Procurement provides support to the
different Lines of Business (LoBs).
Methodology
The base is calculated by analysing the utilisation of the services provided by Group Procurement and is derived
from the previously weighted apportioned pay from ASPIRE of the LoBs supported by Group Procurement to give
the attribution of costs to products and plant groups.
Data Source/s
Period 9 LoB pay from ASPIRE for the LoBs supported by Group Procurement. Period 9 pay for Group
Procurement from the Low Level Feeds. Management have used a cumulative period which they believe to be
reflective of the full year.
EXCEPT
YL
BT Fleet Limited – Motor Vehicle Assets.
Description
BT’s Fleet management function provides motor vehicles and associated Products and services to employees
within BT. This is via a 100% BT owned subsidiary called BT Fleet Ltd.
The services that the fleet management function provides include:

The sole supplier of vehicles (company cars and commercial vehicles) to BT, in accordance with customers
agreed requirements.

The replacement of existing vehicles with agreed suitable replacements.

The maintenance of all vehicles to BT.

The provision of a breakdown service through BT fleet nominated agents on a 7 day 24 hour basis.

Provision of fleet management services including the supply of vehicle excise and operator’s Licence discs.

Provision of road fuel to the BT commercial fleet through nationally agreed suppliers via charge cards.

Provision of management information regarding, fleet utilisation, operating costs, fuel usage, and allocation
data.

Provision of customer order work for agreed modifications and additions to BT vehicles.

Provision of short-term vehicle cover via our own daily hire and courtesy fleets.
77
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

Provision of accident management services via nominated third party supplier.

Sale of fleet vehicles to BT employees.
BT’s fleet management function provides its services to other BT units and also to parties external to BT. It will use
transfer codes to charge, at commercial rates, for the services it provides to other BT units to these units. It will
record the revenue it receives from external parties in ‘other operating income’ codes.
Methodology
This base apportions all the profit and loss (P&L) and relevant balance sheet items relating to this subsidiary to the
following:

The intermediate Activity Group AG101 (Motor Transport) and Products relating to the other operating
income it receives from external parties.
The apportionment between these destinations is determined by reviewing the F8 codes that relate to these two
forms of ‘income’. Reviewing the transfer out codes (F8 codes beginning with 28) identifies services provided to
other BT units. Reviewing the appropriate ‘other operating income’ codes identifies services provided to external
parties.
The apportionment percentages are then calculated as follows:
PXXX
Other Operating Income
Codes
(Relating to services provided
to External Party A)
(Product relates to External
Party A)
(200/1,200)*100 = 17%
£200
PYYY
Other Operating Income
Codes
(Relating to services provided
to External Party B)
(Product relates to External
Party B)
(200/1,200)*100 = 17%
£200
Transfer F8 Codes (28xxxx)
(Relating to services provided
to other BT units)
AG101
(800/1,200)*100 = 66%
£800
Total = £1,200
Data Source/s
Ledger data on ASPIRE, cumulative to and including Period 12.
EXCEPT
YS
Supply Chain Partners
Description
Organisation Unit Code (OUC) YS represents Supply Chain Partners, which is part of Business Services. Its
responsibilities (services) include:

The inventory management, warehousing and distribution of engineering materials and network
infrastructure items to Field Engineers.

The warehousing and distribution of Customer Premises equipment to BT’s trade distributors.

The warehousing and distribution of Telephone directories.

The provision of an internal mail service as well as a Document Design and Management Service.
These services are provided to other Lines of Business (LoB), and to non-BT customers’ e.g. O2.
The major costs of Supply Chain Partners relates to:

Internal labour and agency costs for the unit.

Freight, postage and delivery charges associated with materials procurement.
Methodology
The Supply Chain Finance team prepare details of their costs, by Activity, cumulative to Period 10. The costs are
further split by Line of Business (LoB) and/or Channel e.g. Openreach, Wholesale, Retail, Northern Ireland and
Third Parties.
78
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Costs relating to Stores management and distribution are apportioned as Stores Issues overheads, using
LoB/Channel Stores Issues values by Plant Group (PG) and Product from the ASPIRE system.
Costs relating to Direct Fulfilment e.g. devices etc. sent directly to customers are apportioned using Residential
and BT Business Revenue. The Residential / Residential split, and the Product range, is derived from a Supply
Chain management report which analyses the Products, packages, and mode of delivery.
Mail and Office Services are apportioned as Pay overheads, using LoB/Channel Pay values by PG and Product
from the ASPIRE system.
Telephone Directory costs are allocated to the Phonebooks Plant Group and Third Party costs are allocated to
P148, consistent with the treatment of the OOI.
A weighted base is then prepared by combining the Period 10 Supply Chain costs analysis, and the bases /
allocation described above.
Note that Direct Fulfilment Postage costs are material, and apportioned using a separate Rule Type 3 base, using
the methodology described above.
Data Source/s
Supply Chain Finance management accounts data.
ASPIRE downloads of Pay, Revenue Stores Issues.
FTM
BV
Core Capital Pay
Description
FTM is a base that uses previously apportioned core capital pay F8 codes; excluding those in Exceptional
Organisational Unit Codes (OUCs) to form system generated overhead bases. This base is applied to P&L non-ETG
pay associated with direct and contract supervisory work required to cove redundant switch and transmission
equipment.
Methodology
This method is used to attribute costs that are relevant to all of a unit e.g. coaching and training costs within a
unit and it would be appropriate for them to be apportioned in line with the previously apportioned pay costs of
that unit. This base is also used to apportion balance sheet balances – including Fixed Asset, Work in Progress.
The FTM overhead base is derived as follows:
The ‘FTM’ Base
n
o
it
a
v
ir
e
d
e
s
a
B
F 8 Costs
All costs in the
Line of
Business (LoB)
OUC
Costs types
Self contained
processing OUCs
Other costs
Capital pay costs
(core only)
Other OUCs in
LoB
Other costs
Capital pay costs
(core only)
n
o
it
a
c
ip
l
p
a
e
s
a
B
F8
apportioned
by FTM
Previous apportionments
x + y + z = 100%
x%
y%
z%
x%
y%
z%
Self contained
processing units
x%
y%
z%
Other OUCs
taking these
costs
x%
y%
z%
OUC Overhead
Products
Product A
Product B
Product C
Product A
Product B
Product C
Product A
Product B
Product C
Product A
Product B
Product C

The core capital pay costs of the unit are identified.

These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these Products provide the base ‘FM’.
Data Source/s
Download from ASPIRE of the relevant pay costs by Product cumulative to and including Period 12.
FTQ
ALL
Core Capital and Current Pay
Description
FTQ is a base that uses previously apportioned core capital and current pay F8 codes, excluding those in
79
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Exceptional Organisational Unit Codes (OUCs); to form system generated overhead bases.
Methodology
This method is used to attribute costs that are relevant to all of a unit e.g. coaching and training costs within a
unit and it would be appropriate for them to be apportioned in line with the previously apportioned pay costs of
that unit. This base is also used to apportion balance sheet balances – including Fixed Asset, Work in Progress.
The FTQ overhead base is derived as follows:
Base derivation
The ‘FTQ’ Base
F 8 Costs
OUC
Costs types
All costs in the
Line of
Business (LoB)
Self contained
processing OUCs
Previous apportionments
x + y + z = 100%
Other costs
Capital and current
pay costs (core only)
Other OUCs in
LoB
Other costs
Base application
Capital and current
pay costs (core only)
F8
apportioned
by FTQ
x%
y%
z%
x%
y%
z%
Self contained
processing units
x%
y%
z%
Other OUCs
taking these
costs
x%
y%
z%
OUC Overhead
Products
Product A
Product B
Product C
Product A
Product B
Product C
Product A
Product B
Product C
Product A
Product B
Product C
FTQ_Diagram1

The core current and capital pay costs of the unit are identified.

These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these Products provide the base ‘FTQ’.
Data Source/s
Download from ASPIRE of the relevant pay costs by Product cumulative to and including Period 12.
FTQ_PCT
ALL
Core Capital and Current Pay – Previously apportioned
Description
The designator FTQ_PCT uses all previously apportioned core capital and current pay F8 codes, including those in
Exceptional OUCs; to form system generated overhead bases.
Methodology
This method is used to attribute costs that are relevant to the whole of a unit, including Exceptional OUCs, and as
such it would be appropriate for them to be apportioned in line with all the previously apportioned pay costs.
The FTQ_PCT base is typically applied to overhead costs related to the activity of the whole unit such as NewStart
Leaver Payments, General Management pay, general travel and subsistence and stationery costs.
80
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Base derivation
The “PAY” Base
F8 Costs
OUC
All costs in the
LoB
Previous apportionments
x + y + z = 100%
Costs types
Other costs
Self contained
processing
OUCs
x%
y%
z%
Product A
Product B
Product C
x%
y%
z%
Product A
Product B
Product C
Self contained
processing
units
x%
y%
z%
Product A
Product B
Product C
Other OUCs
taking these
costs
x%
y%
z%
Product A
Product B
Product C
Capital and Current
Pay costs (core only)
Other OUCs in
LoB
Other costs
Base application
Capital and current
pay costs (core only)
F8 apportioned
by PAY
OUC Overhead
Products
FTQ_PCT_Diagram1
The PAY overhead base is derived as follows:

The core current and capital pay costs of the unit (including those in Exceptional OUCs) are identified.

These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these products provide the base ‘PAY’.
Use F8s to DD1:
List of F8 Codes
to be used to
dervive relevant
download from
ASPIRE
Use
F8s
to to
Use
F8's
produce
data
produce
data
ASPIRE:
array
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Array :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Array:
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
FTQ_PCT_Diagram2
“PAY”, the Data Designator 1, specifies the pay transactions (range of F8 codes) from which the base is derived
i.e. pay codes. This data is held within the ASPIRE system.
“PCT” the Data Designator 2, specifies the AS Cost Centres to which the cost should be apportioned. This type of
base can be used where the engineering Travel and Subsistence of certain OUCs has to be apportioned over a
limited range of Plant Groups (PGs) using a pay base specific to the PGs supported by those units.
Data Source/s
Download from ASPIRE of the relevant pay costs by Product cumulative to and including Period 12.
FUEL
Y, Y3,
YL
External Payment for Vehicle Fuel
Description
This base apportions BT External Payment for Vehicle Fuel.
Methodology
The cost of Motor Transport (MT) vehicle fuel is recovered from the Lines of Business (LoB) via the transfer
charges to the Organisational Unit Codes (OUCs)/Organisational Units based on the utilisation of the services
provided to the OUC.
The transfer charges are used to provide an analysis of the fuel in the different parts of BT. The analysis of the
81
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
transfer charge amounts are used to calculate an overall base that is then applied to the underlying actual costs,
which are attributed pro-rata to the transfer charge.
Data Source/s
Internal transfer charges for fuel on the BT general ledger cumulative to and including Period 12.
MPPAY
MP
Retail Payphones Business – Pay costs
This base is used to apportion general Pay costs (Profit and Loss (P&L) Current Non-ETG Pay etc.) associated with
the Payphone business.
Methodology
This base is determined by analysis of the pay costs recorded on the P&L account for the Payphones’ Business.
This Profit and Loss (P&L) is reported by ‘line of business’ and this split is used to point costs to the appropriate
Accounting Separation (AS) Product/Plant Group (PG), either via a direct allocation or by a secondary
apportionment stage - where the costs relate to a combination of the ‘Retail Payphones’ business and to the
‘Payphone Operations’ activity. This latter stage apportions costs between the Retail Payphones product group
(G573) and the Payphone Operations plant group (PG622a) as follows:
• Direct pay costs are apportioned using base DTNCOP.
• Indirect pay costs are allocated 100% to the Public Payphones Operations PG622A.
Data Source/s
Payphones Profit and Loss account which is sourced from the general ledger and allocated/apportioned to line of
business by algorithms owned by the Payphones’ Finance Reporting manager.
82
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
NCOFADAALLA
NonCore
OUC - G
Transmission Depreciation and Fixed Assets
Description
This base is used to apportion corporate provisions relating to Transmission depreciation costs and fixed assets.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the underlying Transmission costs are updated. Each base has two separate markers
that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. NCOFADA).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALLA).
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8s to
produce
data
download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Eliminate data for
AS Cost Centres
not in DD2
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100 %
NNCOFADA_ALLA_Diagram1
Data Source/s
‘NCOFADA’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total Transmission depreciation costs incurred by BT during the year.
‘ALLA’, the Data Designator 2, specifies the AS Cost Centres to which the corporate provisions relating to
Transmission should be apportioned i.e. all AS Cost Centres.
The NCOFADA apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ALLA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the balance
on the corporate Transmission provisions.
‘ALLA’ refers to all BT Business Cost Centres.
Income / cost to be
apportioned
Corporate
Provisions
Transmission
Apportionments from
DD1 (NCOFADA)
DD1:NCOFADA
Previously
apportioned Transmission
costs on all units
AS Cost Centres in
DD2 (ALLA)
DD2: ALLA
BT Business
Cost Centres
NCOFADA-ALLA_Diagram2
NCOFADMALLA
NonCore
OUC - G
Apparatus Depreciation and Fixed Assets
Description
This base is used to apportion corporate provisions relating to apparatus depreciation costs and fixed assets.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus it is recalculated each time the underlying Apparatus costs are updated. Each base has two separate markers
that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. NCOFADM).
83
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALLA).
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
ASPIRE:
Download
relevant base
Use F8's to produce information by
download
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Eliminate data for
AS Cost Centres
not in DD2
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100 %
NCOFADM_ALLA_Diagram1
Data Source/s
‘NCOFADM’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total Apparatus depreciation costs incurred by BT during the year.
‘ALLA’, the Data Designator 2, specifies the AS Cost Centres to which the corporate provisions relating to
Transmission should be apportioned i.e. all AS (Accounting Separation) Cost Centres.
The NCOFADM apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ALLA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the balance
on the corporate Apparatus provisions.
‘ALLA’ refers to all BT Business Cost Centres.
Income / cost to be
apportioned
Corporate
Provisions
Transmission
Apportionments from
DD1 (NCOFADA)
DD1:NCOFADA
Previously
Apportioned Apparatus
costs on all units
AS Cost Centres in
DD2 (ALLA)
DD2: ALLA
BT Business
Cost Centres
NCOFADA-ALLA_Diagram2
NCOFAEA
NonCore
OUC - G
Software Amortisation and Fixed Assets
Description
This base is used to apportion corporate provisions relating to amortisation depreciation costs and fixed assets.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the underlying Software costs are updated. Each base has two separate markers that
govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. NCOFAEA).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALLA).
84
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8s to
produce download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Eliminate data for
AS Cost Centres
not in DD2
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100 %
NCOFADM_ALLA_Diagram1
Data Source/s
‘NCOFAEA’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total Software depreciation costs incurred by BT during the year.
‘ALLA’, the Data Designator 2, specifies the AS Cost Centres to which the corporate provisions relating to
Transmission should be apportioned i.e. all AS Cost Centres.
The NCOFAEA apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ALLA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the balance
on the corporate Apparatus provisions.
‘ALLA’ refers to all BT Business Cost Centres.
Income / cost to be
apportioned
Corporate
Provisions
Transmission
Apportionments from
DD1 (NCOFAEA)
DD1:NCOFAEA
Previously
Apportioned Apparatus
costs on all units
AS Cost Centres in
DD2 (ALLA)
DD2: ALLA
BT Business
Cost Centres
NCOFADA-ALLA_Diagram2
NCOFASFW_A
LLA
G
Software Amortisation and Fixed Assets
Description
This base is used to apportion corporate provisions relating to amortisation depreciation costs and fixed assets.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the underlying Software costs are updated. Each base has two separate markers that
govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. NCOFAEA).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALLA).
85
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8s to
produce download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Eliminate data for
AS Cost Centres
not in DD2
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100%
NCOFADM_ALLA_Diagram1
Data Source/s
‘NCOFASFW’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total Software depreciation costs incurred by BT during the year.
‘ALLA’, the Data Designator 2, specifies the AS Cost Centres to which the corporate provisions relating to
Transmission should be apportioned i.e. all AS Cost Centres.
The NCOFASFW apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed
in the ALLA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the
balance on the corporate Apparatus provisions.
‘ALLA’ refers to all BT Business Cost Centres.
Income / cost to be
apportioned
Corporate
Provisions
Software
Apportionments from
DD1 (NCOFASFW)
DD1:NCOFASF
W
Previously
Apportioned Apparatus
costs on all units
AS Cost Centres in
DD2 (ALLA)
DD2: ALLA
BT Business
Cost Centres
NCOFADA-ALLA_Diagram2
NCOLF
ALL
NonCore
OUCs
Liquid Fund Transactions
Description
This base apportions all liquid fund transactions which are defined as Net Short Term Interest Payable, including
Interest Receivable, Profit and Loss (P&L) Cash, Short Term Investments (both internal and third party), and Short
Term Borrowings on the Balance Sheet. This base apportions mainly to an Intermediate Activity Group AG113
(Total Liquid Funds and Interest) for onward allocation to Access, Wholesale and Retail Markets, however there is
a small element relating to CNS which is reported separately in the CNS products and wholly within the Retail
Market.
Methodology
All liquid funds (e.g. cash, short-term borrowings and short-term investments) are attributable to the Access,
Wholesale and Retail Markets. To allow visibility of such transactions in these Markets, the monies are collected
against AG113 (Total Liquid Funds and Interest), which then exhausts to Access and Wholesale Markets, as well as
to the Retail Market. There are four specific GFR lines which determine whether an activity is Liquid Funds:

GFR 160
Net Interest Payable.

GFR 231
Short-Term Investments.

GFR 232
Cash.

GFR 250
Short-Term Borrowings.
These sectors are 100% apportioned to AG113 (Total Liquid Funds and Interest), except if they relate to CNS, in
which case they are apportioned to CNS specific non SMP products.
Data Source/s
86
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
These are allocated directly, no data source/s required.
NCOVATD
G106
BT Group – Output VAT Related Creditors
Description
This base apportions the Output VAT related creditors arising from the VAT collected by BT’s corporate unit
forwarding on to the Customs and Excise department.
Methodology
This base is prepared using revenue generated by BT UK sourced from:

Apparatus sales.

Connection charges.

Other single payments.

Rentals.

Enhanced maintenance.

Calls gross.

Calls discount.

Revenue from Other Communication Providers (OCPs).
These different classifications of revenue equate to specific sectors (groups of General Ledger codes with similar
functional categories) within the ASPIRE system.
Data Source/s
This base apportions using the analysis produced for the core VAT Creditors base - DTTCY. All core revenues are
taken but Revenue from Other Communication Providers is excluded from the final allocation.
NGAOHEAD
G104
NGA overheads
Description
This base excludes central and general management overheads from being allocated to network investment and
build plant groups for NGA. Such overheads are allocated on the basis of previously allocated pay including
capitalised NGA network build and do not have a true cost causality. NGA is a relatively new platform so we do not
allocate such overheads to activities that do not lead to cash.
Methodology
Central and general management type overheads that are allocate to the following NGA plant groups are
identified based on ledger coded and the OUC that the overheads are booked to:
PG950C GEA Access Fibre Spine
PG951C GEA Distribution Fibre
PG952C GEA Electronics
PG953C GEA DSLAM & Cabinets
Central and general management overheads on non-engineering OUCs are excluded from the apportionment.
Data Source/s
This base identifies central and general management related overheads using downloads from ASPIRE.
NSLPAY
M7
NewStart Leaver Payments
Description
This base apportions Profit and Loss (non-ETG Current Pay) costs associated with NewStart Leavers payments.
New Start is a programme by which BT seeks to manage its people assets including work/life balance, flexibility
etc. However, when employees leave the company through redundancy or resignation, any payments to the
leaving employee are booked against this activity.
Methodology
New Start Leaver payments are based primarily on the pay of the recipient. A low level cost breakdown of the
87
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Retail units involved is supplied by BT Group Finance.
The relevant pay bases are then applied at the low level to provide the overall base i.e. a sub Organisational Unit
Code (OUC) analysis of costs apportioned using sub OUC Pay bases.
Data Source/s
ASPIRE Period 9 pay data.
OPEACN-ALL
ALL
Core
OUCs
Accommodation Charges – Creditors and/or Debtors
Description
This base apportions creditors/debtors arising from accommodation charges, such as balances on accommodation
costs (external rent receivables, prepaid accommodation expenditure and provisions for dilapidations and major
repairs).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time accommodation charges are updated. Each base has two separate markers that
govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEACN).

The Accounting Separation (AS) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
toto
UseF8s
F8's
produce
producedownload
download
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
:
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
OPEACN_ALL_Diagram1
‘OPEACN’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. accommodation costs incurred by BT during the year. This data is held within the ASPIRE system by
AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which these debtors/creditors associated with
accommodation should be apportioned.
The OPEACN apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the
accommodation debtors and creditors.
‘ALL’ refers to BT Group Cost Centres.
Apportionments
from DD1
(OPEACN)
Income / cost to be
apportioned
Creditors/debtors
arising from
accommodation
charges
DD1: OPEACN
P&L accommodation
costs
OPEACN_ALL_Diagram2
88
AS Cost Centres in
DD2 (ALL)
DD2: ALL
BT
Group
Cost Centres
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
The data is system generated from ASPIRE.
OPECST-ALL
ALL
Core
OUCs
BT Purchases
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed from
Customs and Excise arises from BT purchases.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to provide the appropriate base (Data Designator
1, i.e. OPECST).

The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
Diagram: BT Purchases Apportion Process
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
UseF8s
F8'stoto
produce
producedownload
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Download
:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Download
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre C
= 100%
OPECST_ALL_Diagram1
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within the
system by AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which these VAT input creditors should be
apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the VAT Input
Creditors.
‘ALL’ refers to BT Group Cost Centres.
Apportionments
from DD1
(OPECST)
Income / cost to be
apportioned
Input VAT in
Balance Sheet
DD1: OPECST
Previously apportioned
Operating Costs (exc
Pay, Depreciation) and
capital additions
OPECST_ALL_Diagram2
Data Source/s
89
AS Cost Centres in
DD2 (ALL)
DD2: ALL
BT
Group
Cost Centres
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
ASPIRE generated data cumulative to Period 12.
OPECST-PCT
B, D, J,
K and M
BT Purchases
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed from
Customs and Excise arises from BT purchases.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to provide the appropriate base (Data Designator
1, i.e. OPECST).

The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: BT Purchases Apportion Process
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use F8s to
Use F8's to
produce
produce download
download
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
:
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre C
= 100%
OPECST_PCT Diagram 1
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within the
system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which these VAT input creditors should be
apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the VAT Input
Creditors.
‘PCT’ refers to BT Group Cost Centres.
Apportionments
from DD1
(OPECST)
Income / cost to be
apportioned
Input VAT in
Balance Sheet
DD1: OPECST
Previously apportioned
Operating Costs (exc
Pay, Depreciation) and
capital additions
OPECST_PCT_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
90
AS Cost Centres in
DD2 (PCT)
DD2: PCT
BT
Group
Cost Centres
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
OPEOTH,OPE
OTH-COR
ALL
Core
OUCs
Except
B's
Wayleaves Buy Outs Debtors and Accrued Creditors
Description
This base is used to apportion Wayleaves Buy Outs debtors and accrued creditors. Wayleaves refers to the
arrangement in place when another company utilises BT land or plant/equipment (e.g. telegraph poles) to
provide service to a third party.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The cost transactions the system should draw upon to derive the appropriate base (Data Designator 1, i.e.
OPEOTH).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
Diagram: Normal Trading Activity Apportion Process.
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
UseF8s
F8'stoto
produce
produce download
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Download
:
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
OPEOTH_COR_Diagram1
‘OPEOTH’, the Data Designator 1, specifies the cost transactions (range of f8 codes) from which the base is
derived, i.e. total operating costs, excluding depreciation and pay costs incurred by BT during the year. This data
is held within the system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which Wayleaves Buy Outs debtors and accrued
creditors should be apportioned.
The’ OPEOTH’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the
‘COR’ group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the Wayleaves
Buy Outs debtors and accrued creditors balances.
‘COR’ refers to BT Core Business Cost Centres.
Income / cost to be
apportioned
Wayleaves
Debtors Accured
Creditors and
deferred income
Apportionments from
DD1 (OPEOTH)
DD1: OPEOTH
Total Operating
Costs excluding
depreciation and
pay
AS Cost Centres in
DD2 (COR)
DD2: COR
OPEOTH_COR_Diagram2
Data Source/s
ASPIRE.
OPEOTH-PCT
ALL
Expenditure Related Prepayments – Normal Trading Activity
Description
91
BT Core
Business Cost
Centres
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
This base apportions the expenditure related prepayments arising from normal trading activity.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income / cost transactions the system should draw upon to provide the appropriate base (Data
Designator 1, i.e. OPEOTH).

The AS (Accounting Separation) cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Expenditure Related Prepayments Process.
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
UseF8s
F8'stoto
produce
producedownload
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Download
:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Download
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre C
= 100%
OPEOTH_PCT_Diagram1
‘OPEOTH’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. the total operating costs, excluding depreciation and pay costs by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the non-pay expenditure debtors and accrued
debtors arising from normal trading activity balances should be apportioned.
The OPEOTH apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the BSC
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the non-pay
expenditure debtors and accrued debtors arising from normal trading activity balances.
‘PCT’ refers to all AS Cost Centres, which incurred costs, specifically excluding those with negative costs.
Income / cost to be
apportioned
Non-pay debtors
and accrued
creditors arising
from normal
trading activity
Apportionments from
DD1 (OPEOTH)
DD1: OPEOTH
Total Operating
costs excluding
depreciation and
pay
AS Cost Centres in
DD2 (PCT)
DD2: PCT
International
AS Cost
Centres
OPEOTH_PCT_Diagram2
Data Source/s
ASPIRE system generated data cumulative to Period 12.
OPEPST,
OPEPST-ALA
ALL
Core
OUCs
Except
B's
Miscellaneous Creditors
Description
This base apportions the miscellaneous creditors arising from current expenditure.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:
92
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEPST).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALA).
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use F8s to
Use F8's to
produce
produce download
download
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
OPEPST_ALA_Diagram1
‘OPEPST’ The Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is derived
i.e. all operating costs excluding Payments to Overseas Administrations and Other Communication Providers
(OCPs), incurred by BT during the year. This data is held within the system by AS Cost Centre.
‘ALA’, the Data Designator 2, specifies the AS Cost Centres to which the miscellaneous creditors balance should be
apportioned.
The ‘OPEPST’ apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘ALA’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘ALA’ refers to all AS Cost Centres, which incurred costs, specifically excluding those with negative costs.
Income / cost to be
apportioned
Miscellaneous
Creditors arising
from normal
trading activity
AS Cost Centres in
DD2 (ALA)
Apportionments from
DD1 (OPEPST)
DD1 (OPEOST)
Total Operating Costs
excluding POLOs and
POAs
DD2 (ALA)
BT Group Cost
Centres
OPEPST-ALA
Data Source/s
ASPIRE generated data cumulative to Period 12.
OPEPST-PCT
ALL
Core
OUCs
except B
Miscellaneous Creditors
Description
This base apportions the miscellaneous creditors arising from current expenditure.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEPST).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
93
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
UseF8s
F8'sto
to
produce
produce download
download
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
OPEPST_PCT_Diagram1
‘OPEPST’ The Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is derived
i.e. all operating costs excluding Payments to Overseas Administrations and Other Communication Providers
(OCPs), incurred by BT during the year. This data is held within the system by AS Cost Centre.
‘ALA’, the Data Designator 2, specifies the AS Cost Centres to which the miscellaneous creditors balance should be
apportioned.
The ‘OPEPST’ apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘ALA’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘ALA’ refers to all AS Cost Centres, which incurred costs, specifically excluding those with negative costs.
Income / cost to be
apportioned
Miscellaneous
Creditors arising
from normal
trading activity
AS Cost Centres in
DD2 (PCT)
Apportionments from
DD1 (OPEPST)
DD1 (OPEOST)
Total Operating Costs
excluding POLOs and
POAs
DD2 (PCT)
BT Group Cost
Centres
OPEPST-PCT
Data Source/s
ASPIRE generated data cumulative to Period 12.
OPEXPS,OPEX
PS-COR
ALL
Core
OUCs
Account Payable Activities – Prepayments
Description
This base apportions the debtors for prepayments arising from Accounts Payable activities.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
94
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use F8s to
Use F8's to
produce
produce download
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
OPEXPS_COR_Diagram1
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which the debtors for prepayments balance should
be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the debtors for
prepayments balance.
‘COR’ refers to BT Core Business Cost Centres.
Income / cost to be
apportioned
Debtors for
prepayments
Apportionments from
DD1 (OPEOTH)
DD1: OPEXPS
Operating Costs
excluding
depreciation
AS Cost Centres in
DD2 (COR)
DD2: COR
BT Core
Business Cost
Centres
OPEXPS_COR_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
OPEXPS-PCR
K
Account Payable Activities – Prepayments
Description
This base apportions the debtors for prepayments arising from Accounts Payable activities relating to Wholesale
Line of Business.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCR).
95
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
UseF8s
F8'sto
to
produce
produce download
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
OPEXPS_PCR_Diagram1
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
‘PCR’, the Data Designator 2, specifies the AS Cost Centres to which the debtors for prepayments balance should
be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the debtors for
prepayments balance.
‘PCR’ refers to BT Core Business Cost Centres.
Income / cost to be
apportioned
Debtors for
prepayments
Apportionments from
DD1 (OPEXPS)
DD1: OPEXPS
Operating Costs
excluding
depreciation
AS Cost Centres in
DD2 (PCR)
DD2: PCR
BT Core
Business Cost
Centres
OPEXPS_PCR_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
OPEXPS-PCT
ALL
Account Payable Activities – Prepayments
Description
This base apportions the debtors for prepayments arising from Accounts Payable activities for Openreach Line of
Business.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
96
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
UseF8s
F8'stoto
Use
producedownload
download
produce
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Download
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre C
= 100%
OPEXPS_PCT_Diagram1
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the debtors for prepayments balance should
be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the debtors for
prepayments balance.
‘PCT’ refers to BT Core Business Cost Centres
Income / cost to be
apportioned
Debtors for
prepayments
Apportionments from
DD1 (OPEXPS)
DD1: OPEXPS
Operating Costs
excluding
depreciation
AS Cost Centres in
DD2 (PCT)
DD2: PCT
BT Core
Business Cost
Centres
.
OPEXPS_PCT_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
ORCOP
OOI
ALL B
OUCs
Description – Sale of Scrap
This base apportions Other Operating Income received by Openreach from the sale of scrap copper.
Methodology
The amount of Capital Expenditure on D side copper cable that is proper to Repayment Works is identified from
the pricing team. This is expressed as a percentage of the total D side copper cable Capital Expenditure to derive
how much of the sale of scrap income should go to Repayment Works Plant Group. The remainder of the income
is allocated to D side copper cable.
Data Sources
Repayments Capitalisation from Financial Report Statements and the Life of Plant List.
PDTACPA
ALL
Accommodation Plant Network (Wholesale): Capital
Description
The base apportions capital work in BT Operate (CoW ACPA) relating to racks, power and ventilation.
Methodology
The cost of clearing space in the exchange installing racks and installing ventilation equipment are attributed to
97
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
room build and those of installing power equipment are attributed to hostel rentals.
The base apportions to PG132B Local Loop Unbundling (LLU) Hosting Rental and PG136A Local Loop
Unbundling (LLU) Surveys using an analysis of the Fixed Asset Register (FAR) Life of Plant (LoP List).
Data Source/s
The analysis used is extracted from the Period 10 FAR; Life of Plant (LoP List), Policy Code ACPA. Management
believe this period is indicative of the full year position.
PDTATM
ALL
Provision, rearrangement and recovery of Asynchronous Transfer Mode (ATM) equipment
Description
This base attributes capital expenditure for provision, rearrangement and recovery work of ATM (Asynchronous
Transfer Mode) equipment in the core Transmission network done by the Broadband and Data division within BT
Wholesale. F8 Codes 41W081, 440234, 44W084, 450234, 45W084, 4A0230, 4AW080, 4B0230, 4BW080,
4C0230, 4CW080, 4D0235, 4DW085, 4E0230, 4EW080 contain costs for Depreciation, Pay, Capital
Expenditure, contracts and indirects. These costs feed into the classes of work (CoW) ATM.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, Broadband
(Multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Frame Stream allocation is identified by using the LoP (Life of Plant) list Asset Policy Code ATMR depreciation cost
as a percentage of the total ATM depreciation. The remaining percentage is allocated to the ATM Plant Groups
(PGs) using the NEI (Network Element Inventory) and AIM (Analysis and Inventory Module) reports.
The NEI and AIM databases provide yearly and half yearly downloads of volumes of ports in the ATM network. The
volume data is converted into equivalent card volumes which are then weighted by latest prices from the Alcatel
price catalogue to take into consideration the different cost profiles of each card.
The NEI report provides data on each port as to whether it is customer or network interfacing by using a unique
identifier:

UNI (customer).

NNI (network).
From this information the split to customer interface PGs and the network interface PG can be derived.
The cards that support the Customer interface functionality are identified by bandwidth and are therefore
allocated to the appropriate bandwidth specific customer interface PGs.
The cards recorded in the AIM report primarily support the Network switching function and therefore are used to
derive the allocation to PG656A (ATM Network Switching) on the same basis as the above. However, the HIGH
BW cards which are recorded in the AIM report do not support the network switching function and are therefore
allocated to the customer and network interface PGs using the UNI and NNI split as a proxy.
The data required for the year end base production will use September volumes/data for the NEI, AIM and LoP list
reports. For the interims, March volumes and data will be used to maintain consistency with the Core Transmission
base allocations. Spare capacity is spread over the existing PGs for the interface cards as these could be used for
either customer or network facing. The split of working customer and network facing cards is used as a proxy to
allocate the spare costs to the relevant PGs.
Data Source/s
Volumes of cards/ports come from the NEI (Network Element Inventory) and AIM (Analysis and Inventory
Module) supplied from the Element Manager database via Peter Pickett (Interims – March, Year end –
September).
Card prices are supplied by BT Wholesale.
LoP (Life of Plant) List.
PDTBHQ
A
Inland Sub Sea Cable Assets
Description
This base apportions the asset Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and annual depreciation charge for classes of work (CoW) BHQ, which represents Inland
Sub Sea cable assets, to the Wholesale Inner Core Fibre Plant Group (PG).
Methodology
98
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Allocates 30% to PG350N Wholesale Inner Core Fibre based on split from the Fixed Asset Register (LoP List).
Data Source/s
Fixed Asset Register (LoP List).
PDTBHQ
ALL B
OUCs
Inland Sub Sea Cable Assets
Description
This base apportions the asset Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and annual depreciation charge for classes of work (CoW) BHQ, which represents Inland
Sub Sea cable assets, to the Openreach Backhaul Fibre Plant Group (PG).
Methodology
Allocates 70% to PG170B Openreach Backhaul Fibre based on split from the Fixed Asset Register (LoP (Life of
Plant) List).
Data Source/s
Fixed Asset Register (LoP List).
PDTCCI
ALL
OUCs
Common Capabilities
Description
The base apportions Profit and Loss (P&L) (Depreciation) and Balance sheet costs identified with Common
Capability assets, which include Intelligent Service Layer (CISL) and Call Messaging assets.
CISL is a system which replaces BT's legacy Network Intelligence Platform which provides many of BT's 0800,
0845, 0870 and premium rate number translation services. Call messaging assets support Callminder /1571.
Other CCI assets support a variety of applications.
Methodology
During the year depreciation costs for Callminder and CISL are derived from the Life of Plant (LoP) List using asset
policy code (APC) CIIR for CISL (PG276A) and APC CIMS for Callminder (P287). The percentages allocated to these
entities form the basis of the PDTCCI base. Any remaining percentages follow the COMP Base for BT Operate
supplied by Group Network Cost Analysis team.
Where the COMP base allocates for PG276A and P287 these percentages will point to the existing PG276A and
P287 entities (see diagram below).
After the CISL & Callminder
percentages are derived the
remaining % will follow the
COMP base
CCI CoW
Split derived from
LOP list
Various PGs
COMP Base for
BT Operate
OUC’s
Various
Products
PG276A CISL
P287 Callminder
Split derived from COMP
base at source for BT
Operate OUC’s
PDTCCI_Diagram
Data Source/s
Life of Plant List (LoP List) – extracted from the fixed asset register.
COMP base for BT Operate supplied by Group Network Cost Analysis team.
PDTCJC
ALL
Construction Junction Metallic Cable
Description
This base drives the Net Book Value (NBV) (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and depreciation charge costs of metallic cables classes of work (CoW) Cable Joint
Chamber (CJC)) in the core transmission and 21C networks a number of fibre related Plant groups (PG).
99
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates to Plant Groups PG170B, PG350N, PG863A, PG865A, PG873A, PG885A, PG900A SDH and 21C
network fibre based on split from the Fixed Asset Register (LoP (Life of Plant) List).
Data Source/s
CTCS, INS and PACS.
PDTCJF
ALL
Construction Junction Cable – Optical Fibre Assets
Description
This base drives the asset net book value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course
of Construction) and depreciation charge costs for classes of work (CoW) CJF, which represents Construction
Junction Cable – Core Optical Fibre assets, to Core Transmission and 21C network related fibre Plant Groups (PG).
Methodology
Allocates to Plant Groups PG170B, PG350N, PG863A, PG865A, PG873A, PG885A, PG900A SDH and 21C
network fibre based on split from the Fixed Asset Register (LoP (Life of Plant) List).
Data Source/s
CTCS, INS and PACS.
PDTCOBUS
All
Business Drop Maintenance
Description
This base apportions the Profit and Loss (P&L) Current Non-ETG Pay, Stores etc. cost of maintenance performed
on the copper cable that connects residential customer’s premises to the access section of the network. This part
of the network is known as the ‘final drop’. The engineers book this maintenance work specifically to residential
maintenance.
The costs include both re-active and pro-active maintenance performed.
The plant groups that these costs are apportioned to are as follows:

PG121M (Business PSTN Maintenance).

PG123M (ISDN Highway Maintenance).
Methodology
The apportionment split is derived from the relative proportion of business connections between PSTN and ISDN
Highway lines. This connection information is obtained from the Powerhouse system (refer to the data source
section). As this maintenance work is specifically booked to business customer premises maintenance, the
business element of PG123M can be identified.
Data Source/s
Powerhouse Period 9. Management believes that this period is reflective of the full year.
PDTCORES
ALL
Residential Drop Maintenance
Description
This base apportions the Profit and Loss (P&L) Current Non-ETG Pay, Stores etc. cost of maintenance performed
on the copper cable that connects residential customer’s premises to the access section of the network. This part
of the network is known as the ‘final drop’. The engineers book this maintenance work specifically to residential
maintenance.
The costs include both re-active and pro-active maintenance performed.
The plant groups that these costs are apportioned to are as follows:

PG122M (Residential PSTN Maintenance).

PG123M (ISDN Highway Maintenance).
Methodology
The apportionment split is derived from the relative proportion of residential connections between PSTN and
ISDN Highway lines. This connection information is obtained from the Powerhouse system (refer to the data
source section). As this maintenance work is specifically booked to residential customer premises maintenance,
100
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
the residential element of PG123M can be identified.
Data Source/s
Powerhouse Period 9. Management believes that this period is reflective of the full year.
PDTCORLU
ALL
Core Nodes - Lucent
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Core node equipment to Plant Groups
(PGs).
Core nodes are the high capacity, large scale routers providing cost efficient connections between Metro Nodes.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-nodes
and transmissions) strategic domains. Lucent is one of these suppliers.
Methodology
The Core-Node contains functionality for the transport of connectivity, voice and broadband services, via routers.
The latest 21CN business case model is analysed into the categories, for which we have assigned PGs, for the
assets the Core node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG878A Metro BB LNS

PG879A Metro BBL3

PG888A (BEA) Broadband Edge Aggregator

PG881A (BRAS) Broadband Remote Access Server

PG882A (FER) Front End Router

PG887A Ethernet Edge Aggregator Bandwidth

PG888A Ethernet Edge Aggregator Port

PG889A Infrastructure Ethernet

PG890A Media Gateway

PG892A Sync Racks

PG893A (MSPE) Multi Service Provider Edge Routers

PG895A P-Router Large (Core)

PG896A P-Router Metro

PG898A TDM Specific Connects
Data Source/s
21CN business case CAPEX forecast.
PDTCPDMI
ALL
Wholesale Line of Business of work on ISDN30 connections
Description
This apportionment base is used to remap ISDN30 connection (classes of work (CoW) CPDI), Megastream
connections ((CoW) CPDM) and Analogue connections ((CoW) PSAA). The costs include Non-ETG Pay and stores.
Methodology
Costs for all three CoW are apportioned to PG114L (ISDN30 Connections), PG413P (Private Circuit Megastream
Connections) and PG421S (Private Circuit Analogue Installation) based on an analysis of the volumes and relative
price of each of the Products at Period 9.
Data Source
Powerhouse volumes as at Period 9 and prices from the Carrier Price List.
101
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTCRDA
ALL
Capital Plesiochronous Digital Hierarchy (PDH) Costs
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for classes of work (CoW) CRD, which represents PDH
(Plesiochronous Digital Hierarchy) Electronic assets, to related Plant Groups (PGs) which represent bearers in the
core network. These assets relate to the older transmission network assets which have largely been supplemented
by the more modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
A bearer link consists of electronics such as line systems and termination equipment The cost of a bearer includes
an apportionment of the costs of these electronic assets.
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
SDH is a standard technology for synchronous data transmission on optical media.
Methodology
Most PDH electronics are specific to bearer types, and are dependent upon the capacity the of bearer- 2mb, 8mb,
34mb, 140mb and 565mb. Individual PGs capture the cost of each bearer type separately.
Direct depreciation costs for PDH electronics, for period 6, sourced from the Life of Plant (LoP) list, are driven
directly to the relevant bearers’ types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed into
PG on the basis of the direct allocations.
Data Source/s
LoP list for Period 6, CTCS. Management believes this period to be reflective of the full year.
PDTCRFA
ALL
Capital Plesiochronous Digital Hierarchy (PDH) Costs
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for classes of work (CoW) CRF, which represents PDH Electronic
assets such as optical fibre repeaters to related Plant Groups which represent bearers in the core network. These
assets relate to the older transmission network assets which have largely been supplemented by the more modern
and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
A bearer consists of electronics such as line systems and termination equipment. The cost of a bearer includes an
apportionment of the costs of these electronic assets.
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
SDH is a standard technology for synchronous data transmission on optical media.
Methodology
Most PDH electronics are specific to bearer types, and are dependent upon the capacity of the bearer- 2mb, 8mb,
34mb, 140mb and 565mb. Individual Plant Groups (PGs) capture the cost of each bearer type separately.
Direct depreciation costs for PDH electronics at Period 6, sourced from the Life of Plant (LoP) list, are driven to
the relevant bearer types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
102
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed into
PGs on the basis of the direct allocations.
Data Source/s
Life of Plant (LoP) list for Period 6, CTCS. Management believes this period to be reflective of the full year.
PDTCRHQC
ALL
Capital Plesiochronous Digital Hierarchy (PDH) Costs
Description
This base drives the asset value and costs for classes of work (CoW) CRHQ, which represents PDH Electronic assets
such as optical fibre repeaters to related Plant Groups (PGs) which represent bearers in the core network. These
assets relate to the older transmission network assets which have largely been supplemented by the more modern
and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
A bearer consists of electronics such as line systems and termination equipment. The cost of a bearer includes an
apportionment of the costs of these electronic assets.
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
SDH is a standard technology for synchronous data transmission on optical media.
Methodology
Most PDH electronics are specific to bearer types, and are dependent upon the capacity of the bearer- 2Mb,
8Mb, 34Mb, 140Mb and 565Mb. Individual PGs capture the cost of each bearer type separately.
Direct depreciation costs for PDH electronics at Period 6, sourced from the Life of Plant (LoP) list, are driven to
the relevant bearer types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed into
PGs on the basis of the direct allocations.
Data Source/s
LoP list for Period 6. Management believes this period to be reflective of the full year.
PDTDMC
ALL
Operator Call Handling Centres (OCHC) – Directory Enquiry Activities
Description
This base apportions Profit and Loss (P&L) Capital spend and Balance Sheet costs relating to Operator Call
Handling Centres (OCHC) engaged primarily in Directory Enquiry (DQ) activities. Costs relate to the provision and
recovery of operating access (e.g. queuing equipment) and test equipment rented to new operator systems (e.g.
Operator Service System (OSS), Digital Access Signalling System (DASS)) including:

Supply and installation of Remote Integrated Services Line Units and Interface Cabinets to connect Directory
Assistance Centres (DAC) to the switch, bureau Primary Multiplexer (PMUX).

Provision and upgrade of Automatic Voice Response, DAC and Operator Keyboard Display Terminal
equipment controlled by Operator Services beyond the interface cabinet and PMUXs in the Enterprise
Information System (EIS) and DAC.
Extension and modification of Derived Services Network (DSN) switches to facilitate:

Automatic Call Distribution for DAC.

Directory assistance console.
From the F8 Code level, costs flow into the classes of work (CoW) DMC.
Methodology
Value of costs to be apportioned are calculated using volume data (call minutes) and capital cost information
103
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
obtained from the Fixed Asset Register as at Q3 FY2004/05 (updated monthly).
Capital costs are attributed by asset (i.e. equipment) as listed by Asset Policy Codes in the Fixed Asset Register.
Each asset element is assigned to one of the Plant Group (PG) or Product destinations according to the
type/function of the asset:

P490 (BT DQ118 Service Provider)

P494 (Wholesale Agency Directory Enquiries (DQ))

PG216C (Local exchange general switchboard)

PG405A (DMS100 Call centre switches)

PG924A (Directory Enquiries (DQ), non-chargeable)
Also used is the Operfile, this is a spreadsheet used to derive apportionment information for Operator and
Directory Assistance costs. The file is a summary of information from a variety of other data sources and is
updated monthly on a cumulative basis.
Diagram:
PDTDMC ALL
F8 Costs
Class of Work
Weighted apportionments based
on capital costs of assets
assigned to destinations
Y 1 +Y 2 + Y 3 + Y 4 + Y 5
=
Plant Groups &
Products
100%
PG924A
DQ non chargeable
Y1
Y2
417654
4D7655
4C7650
4E7650
Y3
DMC
(Capital costs)
PG216C
LE Gen Switchboard
Y4
Y5
PG405A
DMS100 Call Centre
Switches
P490
BT DQ 118 Service Provider
P494 Wholesale Agency
DQ
PDTDMC_Diagram1
Data Source/s
Inland and International Directory Assistance.
Central Data Store (CDS), Call Statistics Centralisation System (CSCS) and Featurenet (part of the Powerhouse
system).
PDTDTTK
ALL
Kilostream Assets and Depreciation
Description
This base apportions the gross book value of Kilostream equipment assets and the associated depreciation and
accumulated depreciation charges to Plant Groups (PGs).
Kilostream is the brand name for BT’s portfolio of low speed digital private circuits. The circuits operate at
bandwidths of 2.4kbit/s up to 64kbit/s and are provided using BT’s Digital Private Circuit Network (DPCN).
104
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTDTTK_Diagram1
Kilostreams are available nationally, and generally BT will provide the whole leased line from end to end.
Kilostream is designed primarily for data and image transmission, although it can carry speech by using a suitable
encoding technique or multiplexor. Applications include linking low speed Local Area Networks (LANs) together
or using 64kbit/s Kilostream for a variety of low speed applications that includes order processing, stock control,
or on-line access to a host computer and/or remote printing facilities for PC terminal users at branch office
locations.
Methodology
The PGs that these Kilostream assets and depreciation amounts are apportioned to are:
PG400T (ACE-Automated Cross-connection Equipment/ENA-Equipment Network Access core equipment)
PG412C (Private Circuits Kilostream Rental Capital).
An apportionment base between these two PGs is derived by reviewing the Life of Plant (LoP) list. The LoP list is
derived from the fixed asset register and provides a greater level of asset and depreciation detail than is available
by F8 code.
From the LoP list, information is obtained on the DTTK (Kilostream) classes of work (CoW). This lists the
depreciation charges by asset policy code for each different type of asset/equipment type in this class of work. By
reviewing the asset policy codes, a distinction between the different equipment types can be identified and the
equipment types split into two groups relating to the PGs listed above. An apportionment base can then be
created by dividing the depreciation charge allocated to each PG category by the total depreciation for the CoW.
This process is summarised in the diagram below:
LoP List
CoW DTTK
PG400T
Kilostream
F8 Codes
PG412C
PDTDTTK_Diamgram2
Data Source/s
LoP List for Period 11. Management believe this period is reflective of the full year.
PDTDTTM
ALL
Megastream
Description
Megastream is a 2Mbit/s (2,048kbit/s) high speed, permanently connected, point to point private circuit.
Megastream has the ability to carry multiple applications and the construction of voice and data backbone
networks makes it suitable for running a range of business operations. Linking mainframes to LANs (Local Area
Networks), linking two or more PBXs (Private Branch Exchanges) to form a network, running reservation systems
and telephone banking are just some of the applications that Megastream is suitable for.
Megastream is a Product offered at different bandwidths (i.e. 1Mbit/s to 622Mbit/s). Apportionment is made to
various Megastream bandwidths, Kilostream and ISDN30 Plant Groups (PGs) due to the fact that these Products
105
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
can be carried over higher bandwidth bearers (e.g. 2Mbit/s, 34Mbit/s, etc.).
Methodology
This base apportions the gross book value of Megastream equipment assets and the associated depreciation and
accumulated depreciation charges to PGs. These Megastream assets are the electronic elements of the bearer.
Apportionment of the Megastream equipment amounts is based on the following methodology.
Step 1 – Calculate apportionment percentages for each bearer capacity size in BT’s network.
Information on the number of each size of bearer is obtained from the Core Transmission Costing System (CTCS)
and Local London Fibre Network (LLFN). The total number of bearers under each capacity size (i.e. 2Mbit/s,
8Mbit/s, 34Mbit/s, 140Mbit/s, 565Mbit/s, ASDH (Access Synchronous Digital Hierarchy) 4*2, ASDH (Access
Synchronous Digital Hierarchy) 16*2) is then multiplied by Current Cost values for each size of bearer. Using the
total Current Cost values for each of the bearer capacity sizes, proportions can be developed.
The table below illustrates how this step works:
P D TD TTM _D iagram 1
Step 2 – Calculate proportions for specific circuit volumes.
Next it is necessary to calculate which percentage of these bearers needs to be pointed to the Kilostream PG412C.
To do this, volumes of 64k circuits (grouped in 2Mbit/s on CTCS) and other bandwidth circuits are obtained from
CTCS.
Circuits of more than 2Mbit/s (E2-E4) are weighted based on the number of 2M circuits each bearer can carry to
give 2Mbit/s equivalents. This is illustrated below:
PDTDTTM_Diagram2
Note: Circuits can travel over bearers of equal or greater bandwidth capacity, that is to say, a 2Mbit/s circuit can
travel over all bearers whereas a 34Mbit/s circuit can only travel over a 34 Mbit/s bearer or greater. This is the
reason for including higher bandwidths in this analysis, to create an accurate apportionment between these
circuit types.
Step 3 – Total allocation to Kilostream
The total allocation to Kilostream (PG412C) is then the sum of all 64kbit/s LE percentage in the bottom row of the
table above. The remaining apportionments to other PGs is equal to the allocation calculated in step 1 less the
calculated 64kbit/s percentage for the given bearer type in step 2.
Step 4 – Create the apportionment split for 2Mbit/s Local End between copper and fibre.
The total apportionment to 2Mbit/s bearers is equal to the sum of the allocations to P2 and P8 bearers less the
Kilostream percentage for these bearers.
From the Life of Plant (LoP) list, information is obtained for the DTTM Megastream classes of work (CoW). This
lists the depreciation charges by asset policy code for each different type of asset for this CoW. The LoP list
sources its data from the fixed asset register. By reviewing the asset policy codes and identifying 2Mbit/s
equipment, the depreciation for this equipment is able to be split between copper and fibre.
106
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
This split is applied to the apportionment calculated in for 2Mbit/s Local End equipment.
This creates apportionment percentages for:

2Mbit/s Copper.

2Mbit/s Fibre.
This is illustrated in the diagram below:
LoP List
Copper
10%
2MBit LE
31%
Fibre
21%
PDTDTTM_Diagram3
Step 5 – Apportion Megastream equipment amounts to PGs.
Using the apportionment percentages calculated in the previous steps, apportion the Megastream equipment
amounts to PGs.
Diagram: Megastream equipment apportioned to PGs process.
Apportionment
Base
Apportionment
PG411C
PG411C
Base
PG442C
PG443C
PG444C
PG445C
PG446C
PG440C
PG441C
PG442C
PG443C
PG444C
PG445C
PG446C
PG440C
PG441C
PG412C
PG440C
MegaStream
(£ GBV Assets, Accumulated Depreciation,
Depreciation)
PG442C
Etc . . .
PDTDTTM_Diagram4
Data Source/s
London Local Fibre Network (LLFN).
Core Transmission Costing System (CTCS).
LoP List at Period 11. Management believe this to be reflective of the full year.
PDTDTTW
A,D
Ethernet Electronics
Description
Contains the Ethernet Electronics costs allocated via PG447A to the Ethernet Electronic components. These costs
include Balance Sheet items (i.e. gross book value and accumulated depreciation etc.) and Profit and Loss (P&L)
items (i.e. depreciation etc.) for Ethernet electronics.
Methodology
Allocates 100% to PG447A.
Data Source/s
There are no Data Source requirements for this base since all costs are allocated directly to PG447A.
107
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTDUCT
A
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG149. The amounts, which are
apportioned, are the Balance Sheet items (i.e. gross book value and accumulated depreciation etc.) and Profit and
Loss (P&L) items (i.e. depreciation etc.) for duct.
This asset covers all duct (core access and shared) within the BT network.
Methodology
Allocated 100% to AG149.
Data Source/s
There are no Data Source requirements for this base since all costs are allocated directly to AG149.
PDTDUCT
B
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG148 (Backhaul Duct) and AG135
(Access Duct). The amounts, which are apportioned, are the Balance Sheet items (i.e. gross book value and
accumulated depreciation etc.) and Profit and Loss (P&L) items (i.e. depreciation) for Duct.
This asset covers all Ducts (core access and shared) within the BT network.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
spend).
Data Source/s
1996 Absolute Duct Study (ADS).
Internal Project Ledger (IPL).
PDTDUCT
BF, BJ,
BT
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG148 (Backhaul Duct) and AG135
(Access Duct). The amounts, which are apportioned, are the Balance Sheet items (i.e. gross book value and
accumulated depreciation etc.) and Profit and Loss (P&L) items (i.e. depreciation) for Duct. It also allocates (OUC
BF) National Supply Management team costs responsible for auditing the Network quality carried out by Carillion
Telent and BT in-house engineers.
This asset covers all Ducts (core access and shared) within the BT network.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
spend).
Data Source/s
108
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
1996 Absolute Duct Study (ADS).
Internal Project Ledger (IPL).
PDTDUCT
BB, BC,
BE, BV,
BY, MJ
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG148 (Backhaul Duct) and AG135
(Access Duct). The amounts, which are apportioned, are the Balance Sheet items (i.e. gross book value and
accumulated depreciation etc.) and Profit and Loss (P&L) items (i.e. depreciation) for Duct.
This asset covers all Ducts (core access and shared) within the BT network.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
spend).
Data Source/s
1996 Absolute Duct Study (ADS).
Internal Project Ledger (IPL).
PDTDUCT
D
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG149. The amounts, which are
apportioned, are the Balance Sheet items (i.e. Fixed Assets AICC Registration Duct) for duct.
This asset covers all duct (core access and shared) within the BT network.
Methodology
Allocated 100% to AG149.
Data Source/s
There are no data source requirements for this base since all costs are allocated directly to AG149.
PDTETHER
ALL
Ethernet Switches
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Ether switches to Plant Groups (PGs).
The Ether Switch is part of the 21c network and contains functionality for the access and onward switching of
Ethernet customers as well as Broadband including NGA (Next Generation Access).The recipients are:

PG901A Ethernet Switches

PG902A Ethernet Switch Access Cards
Methodology
The Ethernet switch contains functionality for the transport of connectivity, voice and broadband services.
The latest 21CN business case model is analysed into the categories, for which we have assigned PGs, for the
assets the Core node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to PG901A.
109
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTINCD
ALL
Intelligent Network Architecture Equipment
Description
This base apportions the capital costs of the Intelligent Network (IN) platform. The IN platform consists of several
sub-platforms each of which supports distinct Products.
Methodology
The assets for each in sub-platform are registered against their own Asset Policy Code on the Fixed Assets
Register; this allows identification of depreciation costs by function and allows the calculation of the relevant split
to corresponding Plant Groups (PGs) This forms the basis of the apportionment base.
The costs for each sub platform are pointed at the relevant Plant Group (PG) as detailed below.
Asset Policy Code
INIC Intellgent Contact Manager (ICM)
INAH/INAS Alfredo Hardware and
Software
INMH/INMS Montrose Hardware and
Software
INCG Indirect Costs,INCM Misc, INCS
Network, Software in Access, INN IN
Attributed to
PG260A Intelligent Contact Manager PRO
P684 BT Wholesale [Residual]
P684 BT Wholesale [Residual]
Spread in proportion to all the above
Data Source/s
Fixed Asset Register (LoP List) Intelligent Network data for the latest available period. Management believe this
period to be reflective of the full year.
PDTINODE
ALL
I-Node
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for I-Node equipment to Plant Groups (PGs).
I-Node is where the service execution functionality is located – in essence the intelligence that controls services.
In the 21CN context, this includes soft switches, network intelligence and bandwidth management capabilities.
Methodology
The I-Node contains functionality for both the setting up of Voice Calls and the provision of Calling Features e.g.
Ring Back When Free. The split of cost used is the current ratio of costs for these activities in the System X and
AXE10 Digital Local Exchange PGs as these assets have similar functionality.
The recipients are:

PG875A I-Node Features

PG876A I-Node Voice Call Set-Up
Data Source/s
Billing records.
PDTIPNC
ALL
IP (Internet Protocol) Networks
Description
This base apportions costs of equipment supporting IP networks. Costs booked to classes of work (CoW) IPNC
(Internet Protocol Network Capital) include provision, extension, rearrangement and recovery of IP networks by
the Broadband and Data division in BT Wholesale.
Types of costs include Profit and Loss (P&L) Depreciation and Pay and Balance Sheet Gross Book Value and
Accumulated Depreciation.
IPNC is the set of communication tools which enables computers to 'talk' to each other over the Internet. Each
computer (known as a host) has at least one address that uniquely identifies it from all other computers on the
Internet. Each piece or 'packet' of information sent over the Internet contains both the sender's Internet address
and the receiver's address. This allows the packets to reach their intended destination, or, if necessary, to be
returned to the sender.
Methodology
According to the type or function of the asset (i.e. equipment), each IP piece of equipment is assigned to one of
110
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
the Plant Group (PG) destinations related to IP.
IP data and Broadband capital spend is downloaded from the Fixed Asset Register (FAR) for the previous three
years. The sub programme identifies capital spend associated with each PG. IPNC has a life of three years, the
capital spend for the last three years (from Internal Project Ledger) is then used to derive the deprecation.
Data Source/s
The Internal Project Ledger (IPL) lists depreciation costs by CoW, and produces a list of asset registrations by year,
which can be found in Central Information Data warehouse (CID) Financial Reporting system. As the timescale
required to produce cost allocation bases it is not possible to use Period 12 data as it is not available at the time
required, therefore Period 8 data as activity after this period does not materially affect the base.
PDTIPNCW
ALL
IP (Internet Protocol) Networks
Description
This base attributes Profit and Loss (Current Depreciation) and Balance Sheet (Fixed Assets GBV) costs of
equipment supporting IP networks. Costs are booked to classes of work (CoW) IPNC (Internet Protocol Network
Capital) which includes provision, extension, rearrangement and recovery of IP networks by the Broadband and
Data division in BT Wholesale.
IPNC is the set of communication tools which enables computers to 'talk' to each other over the Internet. Each
computer (known as a host) has at least one address that uniquely identifies it from all other computers on the
Internet. Each piece (or 'packet') of information sent over the Internet contains both the sender's Internet address
and the receiver's address. This allows the packets to reach their intended destination, or, if necessary, to be
returned to the sender.
Methodology
According to the type or function of the asset (i.e. equipment), each IP piece of equipment is assigned to one of
the Plant Group (PG) destinations related to IP.
IP data and Broadband capital spend is downloaded from the Fixed Asset Register (FAR) for the previous three
years. The Sub programme identifies capital spend associated with each PG. IPNC has a life of three years, the
capital spend for the last three years (from Internal Project Ledger) is then used to derive the deprecation, i.e. 3
year old asset have a 100% of capital spend, 2 year old asset have a 66% and 1 year old assets have a 33% capital
spend. The annual depreciation is then calculated together and used to derive the base apportionments. This
method, by default will weigh the older assets as higher depreciation is calculated for those years.
Data Source/s
The Internal Project Ledger (IPL) lists depreciation costs by CoW, and produces a list of asset registrations by year,
which can be found in Central Information Data warehouse (CID) Financial Reporting system. Due to the timescale
required to produce cost allocation bases it is not possible to use Period 12 data as it is not available at the time
required, therefore Period 8 data is used as activity after this period does not materially affect the base.
PDTLFCM
All
Local Fibre Cable Maintenance
This base apportions (to Plant Groups (PGs)) the Profit and Loss (P&L) Non-ETG Pay, Stores etc. costs of
maintaining local fibre cable maintenance.
Methodology
The local fibre cable maintenance balance sheet and profit and loss values are apportioned to the following PGs
based on the same basis as the capital.

PG111M

PG950M

PG951M
Data Source/s
Life of Plant (LoP) List Period 11. Management believe this to be reflective of the full year.
PDTLFDC
All
Local Fibre Distribution Cable
This base apportions (to Plant Groups (PGs)) all of the balance sheet values (i.e. gross book value, accumulated
depreciation and work in progress/assets in the course of construction) and profit and loss values (i.e.
depreciation) associated with Local fibre distribution cable.
Methodology
111
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
The local fibre distribution cable balance sheet and profit and loss values are apportioned to the following two
PGs based on their relative in year capital expenditure:

PG959c

PG951C
Data Source/s
Life of Plant (LoP) List Period 11. Management believe this to be reflective of the full year.
PDTLFSC
All
Local Fibre Spine Cable
This base apportions (to Plant Groups (PGs)) all of the balance sheet values (i.e. gross book value, accumulated
depreciation and work in progress/assets in the course of construction) and profit and loss values (i.e.
depreciation) associated with Local fibre spine cable.
Methodology
The local fibre spine cable balance sheet and profit and loss values are apportioned to the following two PGs
based on their relative in year capital expenditure:

PG111c

PG959C
Data Source/s
Life of Plant (LoP) List Period 11. Management believe this to be reflective of the full year.
Exchange Side Cables
Description
This base apportions, to Plant Groups (PGs), all of the balance sheet values (i.e. gross book value, accumulated
depreciation, work in progress/assets in the course of construction etc.) and profit and loss values (i.e.
depreciation) associated with exchange side cables.
Exchange side cable (e-side cable) is the cable that links the exchange to the primary cross connection point. This
cable may be part of BT’s own network or may be part of an unbundled local loop (i.e. access connections that BT
leases to other communication providers).
This is illustrated in the diagram below:
Diagram: Exchange Side Cables Process.
Customer
1 2 3
4 5 6
7 8 9
*
8 #
ca
ble
ALL
Dsid
e
PDTLMC
E-side cable
Local
E-side cable - LLU
e
sid
D-
Exchange
Primary Cross
Connection
Point (PCP)
e
bl
ca
-L
LU
Customer
1 2 3
4 5 6
7 8 9
*
8 #
PDTLMC_Diagram1
The E-side cable balance sheet and profit and loss values are apportioned to the following two Plant Groups
(PGs):

PG117C E-side Copper Capital.

PG130A Local Loop Unbundling (LLU) Tie Cables.
N.B. LLU Tie cables are the cables from the Main Distribution Frame (MDF) to the Communications Provider’s
(CP’s) own equipment, normally within the exchange.
Methodology
The apportionment between these two PGs is based on the relative sizes of the year to date depreciation at a
period representative of the full year for E-side copper cable and Local Loop Unbundling (LLU) (classes of work
(CoW) LMC). These figures are taken from the Life of Plant (LoP) listing which details the historical cost
112
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
depreciation for the year for different asset classes. The source of the LoP list data is the fixed asset register.
This apportionment is represented in the diagram below:
Diagram: Apportionment of E-side Cooper Capital and Local Loop Unbundling (LLU).
LoP
Period 11
PG117C
E- side Cable
E-Side F8 codes
Local Loop
Total
£90
£10
£100
90%
%10%
PG130A
PDTLMC_Diagram2
If the E-side copper cable F8 codes provided a split between BT network copper cable and local loop unbundled
cable then an apportionment base would not be required as these amounts could be allocated directly to the
relevant PG. However, the split between BT network copper cable and local loop unbundled cable is only available
in the subsidiary schedules such as the LoP list. This is why the apportionment methodology described above is
created.
Data Source/s
LoP List Period 11. Management believe this to be reflective of the full year.
PDTLMCR
ALL
Exchange Side Cables renewal
Description
This base apportions, to Plant Groups (PGs), all of the balance sheet values (i.e. gross book value, accumulated
depreciation, work in progress/assets in the course of construction etc.) and profit and loss values (i.e.
depreciation) associated with exchange side cables. This follows the same base as PDTLMC.
Exchange side cable (e-side cable) is the cable that links the exchange to the primary cross connection point. This
cable may be part of BT’s own network or may be part of an unbundled local loop (i.e. access connections that BT
leases to other communication providers).
The E-side cable balance sheet and profit and loss values are apportioned to the following two Plant Groups
(PGs):

PG117C E-side Copper Capital.

PG130A Local Loop Unbundling (LLU) Tie Cables.
Methodology
The apportionment between these two PGs is based on the relative sizes of the year to date depreciation at a
period representative of the full year for E-side copper cable and Local Loop Unbundling (LLU) (classes of work
(CoW) LMCR). These figures are taken from the Life of Plant (LoP) listing which details the historical cost
depreciation for the year for different asset classes. The source of the LoP list data is the fixed asset register.
Data Source/s
LoP List Period 11. Management believe this to be reflective of the full year.
PDTLMDF
ALL
Main Distribution Frames in Local Exchanges
Description
This base apportions, to Plant Groups (PGs), all of the balance sheet values (i.e. gross book value, accumulated
depreciation and work in progress/assets in the course of construction) and profit and loss values (i.e.
depreciation) associated with main distribution frames in local exchanges.
Main distribution frames are the interface between the exchange side cables and the exchange switching
equipment. Exchange side cable is the cable that links the exchange to the primary cross connection point. This
cable may be part of BT’s own network or may be part of an unbundled local loop (i.e. access connections that BT
leases to other communication providers).
This is illustrated in the diagram below:
113
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Customer
1 2 3
4 5 6
7 8 9
*
8 #
Main
Distribution
Frame
Dsid
e
ca
bl
e
Local Exchange
Primary Cross
Connection
Point(PCP)
E-side cable - LLU
E-side cable
d
si
De
ca
e
bl
-L
LU
Customer
PDTLMDF_Diagram1
1 2 3
4 5 6
7 8 9
*
8 #
Methodology
The main distribution frame balance sheet and profit and loss values are apportioned to the following two PGs:

PG217E
Local Exchange General Frames Capital

PG130A
Local Loop Unbundling Tie Cables
The reason why the main distribution frame values are apportioned to these PGs is that they support the activities
of the E-side copper cable. Therefore the apportionment between these two PGs can be based on the relative
sizes of the year to date depreciation of MDF assets at Period 11 for both E-side copper cable and local loop
unbundling frame usage. These figures are taken from the Life of Plant (LoP) listing which details the historical
cost depreciation for the year for different asset classes. The source of the LoP list data is the fixed asset register.
This apportionment is represented in the diagram below:
LoP
Period 11
PG217C
E-Side Cable Frame Usage Depreciation £90
Main Distribution
Frame F8 codes
90%
LLU Frame Usage Depreciation
£10
Total
£100
10%
PG130A
PDTLMDF_Diagram2
Data Source/s
LoP List at Period 11. Management believe this is reflective of the full year.
PDTLQM
All
Local Line Plant Improvement – Main Side Cable
Description
This base apportions, to Plant Groups (PGs), all of the balance sheet values (i.e. gross book value, accumulated
depreciation, work in progress/assets in the course of construction etc.) and profit and loss values (i.e.
depreciation) associated with exchange side cables. This follows the same base as PDTLMC.
This includes work on repair of damaged duct, replacement of cable joints, primary connection points (PCP’s)
within the main side access network.
The Main Side Cable are apportioned to the following two Plant Groups (PGs):

PG117C E-side Copper Capital.

PG130A Local Loop Unbundling (LLU) Tie Cables.
Methodology
The apportionment between these two PGs is based on the relative sizes of the year to date depreciation at a
period representative of the full year for E-side copper cable and Local Loop Unbundling (LLU) (classes of work
(CoW) LMQ). These figures are taken from the Life of Plant (LoP) listing which details the historical cost
depreciation for the year for different asset classes. The source of the LoP list data is the fixed asset register.
Data Source/s
LoP List Period 11. Management believe this to be reflective of the full year.
114
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTLTME
ALL
Transmission Monitoring Costs
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for classes of work (CoW) LTME, which represents Transmission
Monitoring Equipment on PDH (Plesiochronous Digital Hierarchy – older Transmission equipment) technology, to
related Plant Groups (PGs) which represent bearers in the core network.
Plesiochronous Digital Hierarchy (PDH) is a technology used in telecommunications networks to transport large
quantities of data over digital transport equipment such as fibre optic and microwave radio systems.
Methodology
Costs are allocated to all PDH bearers based on the number of bearers in the network.
Core Transmission Circuit costing System (CTCS) is used to generate a count of PDH line systems by type.
Total costs at the year-end are an accumulation of costs over the year; therefore allocation requires the use of
average circuit volumes over the year, rather than at the year end.
Period 6 circuit data is used in CTCS to allocate year end costs, as this reflects an average position of network
utilisation over the year.
Data Source/s
Period 6 CTCS data on the number of line systems by type. Management believes this to be representative of the
full year.
PDTLXTM
ALL
Local Exchange Testing
Description
This base apportions the costs of the Local Exchange Test and Measure (LXTM) classes of work (CoW). This covers
common or centralised testing, monitoring or access equipment for Local Exchanges that is not directly
associated with a particular exchange system type. The apportionment is based on an analysis of depreciation
costs.
Methodology
The depreciation charges from the Life of Plant (LoP) List for the CoW are analysed by asset policy code and
broken down into:
Exchange equipment used to test local exchanges.

This is Test Access Matrix (TAMS) equipment for Openreach and is apportioned to the TAMS Openreach Plant
Group (PG) - PG151B. BT Operate TAMS get apportioned to PG151N.
Other costs.

This is line test equipment and is apportioned to the Line Test Equipment PG240A.
Data Source/s
LoP List for P11. Management believes this to be representative of the full year.
PDTLYX
ALL
AXE10 Exchanges
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for AXE10 local exchange equipment to Plant
Groups (PGs).
AXE10 equipment is equipment in BT’s network manufactured by Ericsson.
Methodology
This base apportions the F8 codes pointing to it in exactly the same way as base reference PDTSYSXD except that
the weighting between concentrators and processors is based on modern equivalent asset depreciation values
rather than historical cost depreciation values.
Therefore this base reference is calculated as follows:
There are two fundamental building blocks of AXE10 exchanges:
115
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

Concentrators.

Processors.
These building blocks are significantly different, and are each made up of a large number of specific equipment
elements. Each of these elements will relate to a specific PG. Therefore to create an apportionment base, we need
to ‘dimension’ each of these specific equipment elements.
Concentrators
Step 1 – Determine the modern equivalent asset value of all the equipment elements of concentrators in the
network.
Obtain from the Exchange Planning and Review System (EXPRES) system data that details the line types and the
total number of lines fitted to each concentrator in the BT network. This data is entered into an engineering
model which dimensions the number of equipment elements required to make up that number of lines. The
quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the total
cost for each equipment element. The appropriate element cost that the engineering model utilises is the modern
equivalent asset amounts for each type of equipment element. These are obtained from the Price Element
Scheduled (PES) as part of the LEMP (Local Exchange Modernisation Program). The figures that are used from
this are the March 1995 figures.
Step 2 – Determine an estimate of the modern equivalent asset depreciation value for the equipment building
blocks.
The current year’s asset life determinations are applied to the total modern equivalent asset values of the
equipment identified in step 1 to create a modern equivalent asset depreciation charge for the year. Asset lives
are calculated and determined by Wholesale Regulatory Finance each year. This is completed via a review process
undertaken by experts in this field. Where an individual building block does not have an individual asset life set in
this process, the equated life of the classes of work (CoW) is applied.
Step 3 – Allocate the depreciation charge into call set-up, access and call duration categories.
Using detailed information obtained from the Switch manufacturer, which analyses how the different equipment
types within the switch are used to provide service, the total modern equivalent asset depreciation value for each
type of equipment element is allocated to the following categories:

Call set-up.

Call duration.

Access.
Total modern equivalent asset depreciation charges under each of the three categories can then be calculated.
This step illustrates the reason for using modern equivalent asset values to create the apportionment base for the
historical cost AXE10 values. The manufacturer’s matrix is crucial in providing the link between the F8 codes and
the PGs that they are apportioned to. However the equipment elements in the manufacturer’s matrix cannot be
reconciled to asset policy codes that are based on historical cost values. However the PES equipment elements
compiled as part of the LEMP do reconcile to the manufacturers matrix and these items are listed at modern asset
equivalent values.
Step 4 – Apportion the Access category into more detailed access categories (which will be linked to PGs at a later
stage).
The total modern equivalent asset depreciation value allocated to the category ‘access’ must be further split into
the following categories:

Public Switched Telephone Network (PSTN).

Integrated Services Digital Network (ISDN2).

ISDN30.

Payphones.
This apportionment is calculated based on the relative proportion of cost already identified in the engineering
model.
Step 5 – Create concentrator weighted base.
Using the modern equivalent asset depreciation amounts calculated for the above-listed categories, create a
weighted base for concentrator kit.
The above steps are represented in the flowchart attached below:
116
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Diagram: Overview of Historical Cost Balance Sheet – Concentrators.
EXPRESS
Contractors
Base Ref
SWITCH
Manufacturers
MATRIX
PES
EXPRESS
(Lines)
ASSET LIVES
MODEL
CURRENT COST
DEPRECIATION
Concentrator Setup Kit
Concentrator Kit Type 1 £ 1500
Concentrator Setup Kit
£2000
Concentrator Duration Kit
£2000
Concentrator Duration Kit
£800
£800
Concentrator Kit Type 2 £200
Concentrator Access Kit
£5600
£1700
PSTN Access Kit
£1700
PSTN Access Kit
ISDN2 Access Kit
£2300
ISDN2 Access Kit
£2300
ISDN30 Access Kit
£1300
ISDN30 Access Kit
£1300
Concentrator Kit Type 3 £300
TOTAL
£8,400
Concentrator Kit Type 4 £ 1000
Concentrator Kit Type 5 £ 5000
Payphones Access Kit £300
Concentrator Kit Type 6 £400
TOTAL
TOTAL
£5600
Payphones Access Kit
TOTAL
£300
£8,400
£8, 400
Concentrator Setup Kit
24%
Concentrator Duration Kit 10%
PDTLYX_Diagram1
Conc PSTN Access Kit
20%
Conc ISDN2 Access Kit
27%
Conc ISDN30 Access Kit
15%
Conc Payphones Access Kit 4%
TOTAL
100%
*percentages are for illustrative purposes only
Processors
Step 1 – Determine the modern equivalent asset value of all the equipment elements of processors in the
network.
Obtain from the EXPRES system data on the number of different lines connected to each processor in the BT
network. Data is also obtained from the Network Recording System (NRS) on the size of all the processors in the
BT Network. This data is then entered into an engineering model which dimensions the number of equipment
elements required to make up that total processing capacity. The quantities of each equipment element are then
multiplied by an appropriate element cost to arrive at the total cost for each equipment element. The appropriate
element cost that the engineering model utilises is the modern equivalent asset values for each type of
equipment. This is obtained from the Price Element Scheduled (PES) items as part of the Local Exchange
Modernisation Program (LEMP). The figures that are used from this are the March 1995 figures.
Modern equivalent asset values are used for the same reason as stated above for concentrators.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken by
experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the CoW is applied.
Total modern equivalent asset depreciation values under each of the two categories can then be calculated.
Step 3 – Create processor weighted base.
Using the modern equivalent asset depreciation amounts calculated for the above-listed categories, create a
weighted base for processor kit.
The above steps are represented in the flowchart attached below:
Diagram: Overview of Historical Balance Sheet – Processors.
117
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
EXPRES
ASSET LIVES
NRS
P
R
O
C
E
S
S
O
R
S
SWITCH
MANUFACTURER
MATRIX
PES
MODEL
Current Cost
Depreciation
Processor Kit Type 1
£900
Processor Kit Type 2
£300
Processor Kit Type 3
£500
Processor Kit Type 4
£300
Processor Kit Type 5
£1200
Total
£3200
Digital Line Termination
£x
Digital Line Termination
%x
Switch Block
£y
Switch Block
%y
Processor end signalling
£z
Switch Block
%z
Total
£x,y,z
Total
100%
PDTLYX_Diagram2
* Percentages are for illustrative purposes only.
Apportionment to Plant Groups (PGs)
We now have two sets of apportionment data with both the concentrator and the processor apportionments
adding up to 100%. The next step in the process is to weight the concentrator and processor apportionments.
This base uses modern equivalent asset depreciation values to create the weighting from within the model.
Step 1 – Total the modern equivalent asset depreciation charges for AXE10 equipment
From the calculations above, the total of the modern equivalent asset depreciation charges for processor
equipment is calculated. The total of the modern equivalent asset depreciation values for concentrator
equipment is also calculated.
Step 2 – Create a weighted base for apportionment percentages
Using the relative proportions between processors and concentrators derived from the previous step, the
apportionment’s calculated for processors and concentrators can be weighted.
The above steps can be represented in the flowchart attached below:
Diagram: Historical Balance Sheet – Apportionment to PGs
MODEL
B
a
s
e
R
e
f
e
r
e
n
c
e
Digital Line Termination
20%
Digital Line Termination 5.6%
Switch Block
Processor & Signalling
40%
40%
11.0%
Switch Block
Processor & Signalling 11.0%
Total
%’s
Processor Dep’n
£3, 200
Concentrator Dep’n £8, 400
Processor Dep’n
28%
Concentrator Dep’n72%
PDTLYX_Diagram3
* Percentages are for illustrative purposes only.
118
100%
Total
28%
Concentrator Set up Kit 24%
Concentrator Duration
Kit
10%
Concentrator Set up Kit 17%
Concentrator Duration
Kit
7%
Concentrator PSTN
Access Kit
Concentrator ISDN2
Access Kit
Concentrator ISDN30
Access Kit
Concentrator
Payphones Access Kit
Concentrator PSTN
Access Kit
Concentrator ISDN2
Access Kit
Concentrator ISDN30
Access Kit
Concentrator
Payphones Access Kit
Total
20%
27%
15%
4%
100%
Total
14%
19%
11%
3%
72%
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Step 3 – Apportion amounts to PGs
The apportionments are applied to the following Plant Groups (PGs) based on an analysis of the most appropriate
fit for the building blocks. These are then applied to the historical cost Balance Sheet (i.e. gross book value (GBV)
and accumulated depreciation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for AXE10 local
exchange equipment. The PGs that the apportionment’s point to are as follows:
Category
Plant Group
AXE10 Local Exchange Processor and Signalling
PG280C
AXE10 Local Exchange Digital Line Termination
PG281C
AXE10 Local Exchange Switch Block
PG282A
AXE10 Concentrator Set-Up
PG283A
AXE10 Concentrator Duration
PG284A
PSTN Linecards
PG127A
ISDN2 Linecards
PG128A
ISDN30 Capital /Maintenance
PG124A
This can be represented in the flowchart below:
Diagram: Historical Balance Sheet and Profit and Loss (P&L) Apportionment to PGs
A
p
p
o
r
t
i
o
n
m
e
n
T
LE Proc & Sign
PG280A
LE Processor and Signalling 25%
AXE10 Balance
Sheet and Profit
and Loss F8
Codes (Historical
Costs)
Processor DLT
3%
Process Switch Block
3%
Concentrator Set up Kit
17%
Concentrator Duration
Kit
7%
Conc Kit PSTN Access
14%
Conc. ISDN2 Access
Kit
19%
Conc. ISDN30 Access
Kit
11%
Conc. Payphones
Access Kit
LE DLT PG281C
LE Switch Block
PG282A PG287C
Conc SetupPG283A
Conc Duration
PG284a PG289A
PG128A
PG128A
3%
PG124A
Total
100%
PG120A
PDTLYX_Diagram4
Data Source/s
EXPRES and NRS Systems. Management uses a period that is reflective of the full year.
PDTMDEN
BC, BV
Private Circuits Megastream Maintenance
Description
This base apportions the Profit and Loss (P&L) Non-ETG Pay, Stores etc. costs of maintaining Megastream
equipment assets.
Megastream is a 2Mbit/s (2,048kbit/s) high speed, permanently connected, point to point private circuit. It has
the ability to carry multiple applications and the construction of voice and data backbone networks makes it
suitable for running a range of business operations. Linking mainframes to Local Area Networks (LANs), linking
two or more Private Branch Exchanges (PBXs) to form a network, running reservation systems and telephone
banking are just some of the applications that Megastream is suitable for.
Methodology
This base apportions the costs of maintaining Megastream equipment assets to Plant Groups (PGs) and follows
the same apportionment percentages as determined in the PDTDTTM base. PDTDTTM apportions using a
combination of Current Costs values of bearers, volumes of circuit types and depreciation.
Data Source/s
119
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Current Cost values of bearers, volumes of circuit types and depreciation for the most recent period of the year.
London Local Fibre Network (LLFN), Core Transmission Costing System (CTCS) and Life of Plant (LoP) List at
Period 11. Management believe this period to be reflective of the full year.
PDTMETAL
ALL
Metro Nodes - Alcatel
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Alcatel is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG878A Metro BB LNS

PG879A Metro BBL3

PG888A (BEA) Broadband Edge Aggregator

PG881A (BRAS) Broadband Remote Access Server

PG882A (FER) Front End Router

PG887A Ethernet Edge Aggregator Bandwidth

PG888A Ethernet Edge Aggregator Port

PG889A Infrastructure Ethernet

PG890A Media Gateway

PG892A Sync Racks

PG893A (MSPE) Multi Service Provider Edge Routers

PG895A P-Router Large (Core)

PG896A P-Router Metro

PG898A TDM Specific Connects
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTMETCI
ALL
Metro Nodes - Cisco
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Cisco is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
120
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG878A Metro BB LNS

PG879A Metro BBL3

PG888A (BEA) Broadband Edge Aggregator

PG881A (BRAS) Broadband Remote Access Server

PG882A (FER) Front End Router

PG887A Ethernet Edge Aggregator Bandwidth

PG888A Ethernet Edge Aggregator Port

PG889A Infrastructure Ethernet

PG890A Media Gateway

PG892A Sync Racks

PG893A (MSPE) Multi Service Provider Edge Routers

PG895A P-Router Large (Core)

PG896A P-Router Metro

PG898A TDM Specific Connects
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTMETCN
ALL
Metro Nodes - Ciena
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Ciena is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG878A Metro BB LNS

PG879A Metro BBL3

PG888A (BEA) Broadband Edge Aggregator

PG881A (BRAS) Broadband Remote Access Server

PG882A (FER) Front End Router

PG887A Ethernet Edge Aggregator Bandwidth

PG888A Ethernet Edge Aggregator Port

PG889A Infrastructure Ethernet

PG890A Media Gateway
121
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

PG892A Sync Racks

PG893A (MSPE) Multi Service Provider Edge Routers

PG895A P-Router Large (Core)

PG896A P-Router Metro

PG898A TDM Specific Connects
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTMETSI
ALL
Metro Nodes -Siemens
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Siemens is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG878A Metro BB LNS

PG879A Metro BBL3

PG888A (BEA) Broadband Edge Aggregator

PG881A (BRAS) Broadband Remote Access Server

PG882A (FER) Front End Router

PG887A Ethernet Edge Aggregator Bandwidth

PG888A Ethernet Edge Aggregator Port

PG889A Infrastructure Ethernet

PG890A Media Gateway

PG892A Sync Racks

PG893A (MSPE) Multi Service Provider Edge Routers

PG895A P-Router Large (Core)

PG896A P-Router Metro

PG898A TDM Specific Connects
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTMUC
ALL
Construction Main Underground Cable
Description
This base drives the asset net book value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course
of Construction) and depreciation charge costs for classes of work (CoW) MUC, which represents Construction
Main Underground Cable to Transmission and 21C Network fibre Plant Group (PG).
122
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates to Plant Groups PG170B, PG350N, PG863A, PG865A, PG873A, PG885A, PG900A SDH and 21C
network fibre based on split from the Fixed Asset Register (Life of Plant (LoP) List).
Data Source/s
Fixed Asset Register (LoP List).
PDTMSANF
ALL
Fujitsu MSANs
Description
This base apportions the historical cost accounting Balance Sheet (i.e. gross book value and accumulated
depreciation) and historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Fujitsu manufactured
MSANs (Multi Service Access Nodes) equipment to Plant Groups (PGs).
Methodology
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the MSAN contains. The business case provides estimates of capital spend on a year by year basis. The relative
quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG856A CMASN ISDN2 Cards.

PG857A CMSAN Combo Cards BB element.

PG858A CMSAN Combo Cards Voice element.

PG859A CMSAN Control Access.

PG860A CMSAN Control Transport.

PG861A CMSAN ISDN30 Cards.

PG862A CMSAN Low Band SDSL cards =<2Mb.

PG864A CMSAN-FMSAN Link.

PG869A FMSAN Control Transport.

PG870A FMSAN Ethernet Customer Access Cards.

PG872A FMSAN TDM Cards.

PG874A FMSAN to WDM Link.
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTMSANH
ALL
Huawei MSANs
Description
This base apportions the historical cost accounting Balance Sheet (i.e. gross book value and accumulated
depreciation) and historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Huawei manufactured
MSANs (Multi Service Access Nodes) equipment to Plant Groups (PGs).
Methodology
The latest 21CN business case model is analysed into categories, for which we have assigned PG, for the assets the
MSAN contains. The business case provides estimates of capital spend on a year by year basis. The relative
quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG856A CMASN ISDN2 Cards.

PG857A CMSAN Combo Cards BB element.

PG858A CMSAN Combo Cards Voice element.

PG859A CMSAN Control Access.

PG860A CMSAN Control Transport.
123
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

PG861A CMSAN ISDN30 Cards.

PG862A CMSAN Low Band SDSL Cards =<2Mb.

PG864A CMSAN-FMSAN Link.

PG869A FMSAN Control Transport.

PG870A FMSAN Ethernet Customer Access Cards.

PG872A FMSAN TDM Cards.

PG874A FMSAN to WDM Link.
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTMXD
All OUCs
ALL
Main Exchange Capital
Description
This base apportions the depreciation and capital costs of Main/Trunk Switches. The costs are recorded in two
classes of work (CoW).

MDX for System X switches.

NGS for Next Generation Switches.
Methodology
This methodology produces a combined base used for both CoW. The System X platform asset are part of the
legacy network and are no longer manufactured. It is planned they will remain until 2014. The newer Next
Generation Switches (NGS) switches are used as a Modern Equivalent Asset as part of the process. The remaining
value on NGS is very much higher than System X.
Firstly, a fixed asset download is taken of both the MDX and NGS CoW. The proportion of depreciation relevant to
Intelligent Access and Messaging is attributed to its own Plant Group (PG) PG254A by identifying assets by policy
code or asset descriptions. Different results are obtained from the MDX and NGS CoW. The overall proportion of
depreciation is weighted by the relevant depreciation in the NGS and MDX CoW from the previous period (either
half year or full year). Once this has been obtained then apportionment to three other relevant PGs can be
derived.
PG249C Main Exchange DLT (Digital Line Termination)
PG254A Main Exchange (I, A and M) – already described above
PG255B Main Exchange Switch Block
PG257C Main Exchange Processor
Costs subsequently exhaust to four components:
F8Code
Class of Work
Plant Group
PG254A Intelligent
Access and
Messaging
905265
955254
915265
915265
445264
455264
4B5260
4A5260
4A9800
4B9800
4C9800
4E9800
449804
459804
419804
Next
Generation
Switch (NGS)
and Main
Network
Switching
Digital (MDX)
PG255B
Main Exchange
Switch Block Capital
Components
CO210 Local
Exchange Processor
duration
CO260
Cambridge VIP
CO220
Main Exchange Call
Set-Up
PG257C
Main Exchange
Processor Capital
PG249C
Main Exchange DLT
Capital
PDTMXD_Diagram1
CO220 Main Exchange Call Set-Up.
CO221 Main Exchange Call Duration.
124
CO221
Main Exchange Call
Duration
CO469
Interconnect
Connections
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
CO470 Interconnect Rentals.
CO212 Local Exchange processor set-up.
CO260 Cambridge Voice Intelligent Peripherals.
In order to proportion costs to the three remaining PGs a Current Cost Accounting (CCA) approach is used to
dimension the equipment required using a Modern Equivalent Asset (MEA) of the NGS. The model dimensions the
size of the units and costs them using information contained in NGS contract (no 658109) between BT and
Ericsson. Account is taken of the additional capacity required to accommodate the remaining System X working
capacity which is to be consolidated onto the NGS system.
The engineering model used to derive these apportionments is the same used for the Long Run Incremental
Costing (LRIC) calculations. The model dimensions each exchange in the most efficient way. The total cost is
obtained for all the exchange units and the model costs are assigned as to whether they relate to the three overall
building blocks:

Digital Line Termination (DLT).

Processor.

Switch Block.
The relative proportions of these are used for determining the apportionment. The model also contains how much
of each building block within the exchange relates to call set up and call duration for further apportionment from
PG to component.
Data Source/s
PDTNAC
ALL
OUCs

EXPRES (Exchange Planning and Review System) – Supplies the number of System X and Next Generation
Switches (NGS) units in service.

Network Recording System (NRS) – Supplies the fitted and working capacities of System X and Next
Generation Switches (NGS) units.

Switch Deployment Plan – Also contains evidence on the fitted capacity of working NGS units together with
dates of migration from System X to NGS.

Fixed Asset Register.
Network Administration Computers: Capital - Wholesale
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for the Network Administration Computer
Construction (NACC) classes of work (CoW) to Plant Groups (PGs). This is for Operate related assets. Openreach
assets are treated separately and receive a different treatment.
Methodology
These costs are apportioned between Local Digital Exchanges, Transmission, Main Exchanges and other relevant
PGs on the basis of analysis of the Fixed Asset Register (CoW Network Administration Computer Construction
Current (NACC)). This is explained in more detail below:
A download from the Fixed Asset Register is taken (using a period representative of the full year) listing the year
to date depreciation by asset type within the CoW - NACC. Each of these types of assets is allocated, using analysis
from this download of the asset type descriptions, to a type of network system.
These network systems can change but a current list is detailed below: Digital local exchange (DLE).

NGS (Next generation switch).

Operational Management Centre (OMC) – this includes Advanced Infrastructure Program (AIP) and Network
Mediation Processors (NMP).

Assets relating to the test and maintenance of Private Circuits.

Assets relating DSL (Digital Subscriber Line) maintenance.
By totalling the year to date depreciation allocated to each of these categories and dividing this by the total
depreciation in the CoW, we are able to derive percentage proportions for each category.
The above asset categories will all relate to specific PGs. Where the asset category only relates to one PG, the
percentage calculated for that asset category would be the apportionment percentage used by the base to
apportion the underlying F8 codes to this PG. Where the asset category relates to more than one PG, the
125
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
percentage calculated above will need to be split further to create apportionment percentages which the base
can use to apportion to these different PGs.
Each asset category is described in turn below:
Digital Local Exchange (DLE)
These assets are apportioned to digital local exchange PGs e.g.

PG127A (PSTN Line Cards)

PG124A M (ISDN30 Current)

PG212M (Local Exchanges Digital AXE10 Capital)
The percentage for Digital Local Exchange (DLE) is split based on the weightings on how the underlying Digital
Local Exchange assets are apportioned to these PGs.
Next generation Switch (NGS)
These assets are apportioned between Next Generation Switch (NGS) PGs.

PG255B (Main Exchange – Switch block).

PG249M (Main Exchange = DLT Maintenance).

PG257M (Main Exchange – Processor Maintenance).
This is apportioned based on how the underlying NGS assets are apportioned between these PGs.

DSL (Digital Subscriber Line).
These assets are allocated 100% to:

PG152N DSL Rentals Wholesale.
Private Circuits
These assets are allocated 100% to:

PG461A Private Circuits Test & Maintenance Systems.
Operational Management Centre (OMC)
These assets are apportioned to Local and Main Digital Exchange PGs e.g.

PG127A (PSTN Line Cards).

PG124A (ISDN30 Current).

PG212M (Local Exchanges Digital AXE10 Capital).

PG254A (Main Exchange - Intelligent Access and Messaging).
The percentage for OMC is split based on how the underlying Main and Local Digital Exchange assets (as stated in
BT Ledgers) are apportioned to these PGs. The weighting between the Main Exchange PGs and Local Exchange
PGs is based on the relative number of each type of these exchanges within the BT network. This information is
obtained from an extract from the EXPRES system (Exchange Planning and Review System).
126
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
These processes can be represented in the diagram below:
Asset Categories
Apportionment of underlying:
ADSL
PG152N
PG001 2%
Digital Local
Exchange Assets
DLE
Local Exchange
Plant Groups
PG002 6%
PG003 4%
Same categories relate to
Private
Circuits
more than one plant group.
PG461A
Therefore the apportionment
percentage of that category
PG004 6%
Fixed Asset Register
CoW NACC
Period 10 YTD
Depreciation
NGS
NGS Assets
NGS Plant
Groups
PG005 2%
must be split to create
apportionment percentage to
be used by the base for
apportioning amounts in this
PG006 1%
Local and Main Exchange
OMC
Assets
Local & Main
Exchange
Plant Groups
AG to these Plant Groups
PG007 2%
PG004 1%
TOTAL =100%
Some categories relate to
one Plant Group. This
apportionment percentage
Creation of apportionment
for that category is therefore
percentages between these
used by the base reference
categories using year to date
as the percentage
depreciation amounts
apportioned to that Plant
Group
PDTNAC_Diagram1
The base calculated in the above steps can then be applied against the values within the PDTNACM to apportion
these amounts to the relevant PGs. This is illustrated in the diagram below:
PG001
£xxx
Apportionment Base Calculated in Previous Steps
PG002
£xxx
Plant Groups
PG003
£xxx
PG151N
PG001 2%
Local Exchange
Plant Groups
PG004
£xxx
PG002 6%
PG003 4%
PG461A
PDTNAC
£xxxx
PG005
PG004 6%
NGS Plant
Groups
Local & main
Exchange Plant
Groups
PG005
£xxx
PG006
£xxx
PG007
£xxx
PG005 2%
PG224A
£xxx
PG006 1%
PG227A
£xxx 007
PG007 2%
PG004 1%
PG761A
£xxx
PG211M
£xxx
PDTNAC_Diagram 2
Data Source/s
Oracle Fixed Asset Register.
General Ledger information from Central Information Database (CID).
Exchange Planning and Review System (EXPRES).
PDTNTE21
ALL
21C Network Terminating Equipment
Depreciation
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for 21c Network Terminating Equipment.
This allocates 100% to PG867A 21C Ethernet NTE.
127
.
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Data Sources
No data sources, allocation is 100%.
PDTORSFI
BC, BV
Special Fault Investigation (SFI)
Description
This base apportions the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet
costs of Special Fault Investigations.
A Local Loop Unbundling (LLU) Special Fault Investigation (SFI) can be initiated by a LLU Communications
Provider (CP) when a Metallic Path Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the
Openreach line test system, but where there might be a problem with the CP’s Asymmetric Digital Subscriber Line
(ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
An allocation based on aspire data will be used to calculate the share of costs to be pointed from COW or to PGs.
This allocation will only be applied to costs for OUC B (Openreach) and OUC MJ (Northern Ireland).
The Plant Groups (PGs) that these costs are apportioned to are as follows:

PG122M - Residential PSTN Maintenance.

PG989A - Special Fault Investigation.
Data Source/s
ASPIRE DIY report.
PDTRAR
BC
Routing and Records Base - Openreach
Description
The costs within this base are for the routing and records activity. This activity is the physical verification of
routings within the network, and records the time associated with the initial recording of routing details on BT
systems.
There are also Capital Planning Pay and Non Pay costs which are not directly related to the routing and records
activity.
Methodology
Bookings to the classes of work (CoW) RAR (Routing and Records) consist of two elements.
The first element is the time booked that is directly related to the Routing and Routing activity as defined in the
CoW description.
The second element, Capital Planning, is the time spent on activities that are outside of the CoW description and
allocated to Capital Programmes. This consists of bookings made by non-field units, maintenance of records and
planning indirects.
Kilo Man Hour (KMH) data for P12 is used to split the costs into the two elements. The proportion of the cost
proper to the routing and records activity will follow the same methodology as PG140A and apportioned using
New Supply connection line volumes from Powerhouse. The Capital Planning element of costs will be apportioned
using capital Pay, the rationale for this being that these are planning related costs with the benefits accrued when
the assets are built.
Data Source/s
Period 12 KMH by CoW Report provided by the Openreach Capacity and Resourcing Team.
PDTRAR
BF
Routing and Records Base - Openreach
Description
The costs within this base relate to the National Supply Management team, whom are responsible for auditing
and assessing the quality of work on the Network by Carillion Telent and BT’s in house engineers. They are
responsible for auditing the work for Routing and Records activity.
Methodology
128
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Bookings to the classes of work (CoW) RAR (Routing and Records) consist of two elements.
The first element is the time booked that is directly related to the Routing and Routing activity as defined in the
CoW description.
The second element, Capital Planning, is the time spent on activities that are outside of the CoW description and
allocated to Capital Programmes. This consists of bookings made by non-field units, maintenance of records and
planning indirects.
Kilo Man Hour (KMH) data for P12 is used to split the costs into the two elements. The proportion of the cost
proper to the routing and records activity will follow the same methodology as PG140A and apportioned using
New Supply connection line volumes from Powerhouse. The Capital Planning element of costs will be apportioned
using capital Pay, the rationale for this being that these are planning related costs with the benefits accrued when
the assets are built.
Data Source/s
Period 12 KMH by CoW Report provided by the Openreach Capacity and Resourcing Team.
PDTRAR
BV
Routing and Records Base - Openreach
Description
The costs within this base are for the routing and records activity. This activity is the physical verification of
routings within the network, and records the time associated with the initial recording of routing details on BT
systems.
There are also Capital Planning Pay and Non Pay costs which are not directly related to the routing and records
activity.
Methodology
Bookings to the classes of work (CoW) RAR (Routing and Records) consist of two elements.
The first element is the time booked that is directly related to the Routing and Routing activity as defined in the
CoW description.
The second element, Capital Planning, is the time spent on activities that are outside of the CoW description and
allocated to Capital Programmes. This consists of bookings made by non-field units, maintenance of records and
planning indirects.
Kilo Man Hour (KMH) data for P12 is used to split the costs into the two elements. The proportion of the cost
proper to the routing and records activity will follow the same methodology as PG140A and apportioned using
New Supply connection line volumes from Powerhouse. The Capital Planning element of costs will be apportioned
using capital Pay, the rationale for this being that these are planning related costs with the benefits accrued when
the assets are built.
Data Source/s
Period 12 KMH by CoW Report provided by the Openreach Capacity and Resourcing Team.
PDTSCNM
AR
Network Platform Support Contract Costs
Description
This base apportions the Profit and Loss (Other Payments) costs of technology vendor provided support usually
under fixed term support contracts.
The full detailed list of platforms supported is obtained from the Vendor Management team Organisational Unit
Code (OUC) ADF and includes the following high level Platforms:

Transmission.

Broadband.

ASU (Advanced Switching Unit).

Private Circuits.

SDH (Synchronous Digital Hierarchy).

Intelligent Network.

PSTN (Public Switched Telephone Network) Switch.

Telex etc.
129
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Step 1 – Platform level breakdown.
The first step of the methodology breaks down the total Support Contract Costs into technologies or platforms.
The data used for this comes from the Support Contract Spend Managers.
Step 2 – PG (Plant Group) level breakdown.
The platform level costs are then apportioned to the PGs, relevant to spend, by analysis of spend, in collaboration
with the relevant support contract manager. Where a split to a platform’s PG is required, the following data
sources are used to derive the split:
Cow
INM
CoW Description
Data Source
Maintenance Intelligent Network Platform.
Support Contract Manager provides Intelligent Network platform breakdown.
IMEX
Operation and Maintenance International Digital
and Semi Electronic Equipment.
Allocated 100% to Edge Link monitors
SIGM
Signalling Network and Interconnect
Maintenance.
Support Contract Manager provides Intelligent Network platform breakdown.
KDEN
Maintenance: Kilostream Service.
Follows Depreciation apportionment base for CoW DTTK.
MDEN
Maintenance: Megastream Service.
Follows Depreciation apportionment base for CoW DTTM.
ADSL
Construction, Asymmetric Digital Subscriber line
(FAR).
100% allocation to the Wholesale ADSL Plant Group.
LMM
Maintenance: Service Module Equipment for
Local Fibre.
100% allocation to Fibre Plant Group.
LMM
Maintenance: Service Module Equipment for
Local Fibre.
100% allocation to Fibre Plant Group.
LTS
Maintenance: Line Test System Equipment.
100% allocation to Line Test System Plant Group.
IP and DATA
Internet Protocol and Data transport Maintenance Follows Depreciation apportionment bases for IP and ATM CoWs.
ASN
Maintenance: Advanced Services Network.
Based on number of ASU/Call Centre DMS100 switches
DC
Maintenance: Digital Operator Call Handling
Centres (OCHC).
Based on Operator Assistance (OA) split.
DX
Maintenance: Local Digital Exchange, System X. Work Manager Task Hours
DY
Maintenance: Local Digital Exchange, System Y
(AXE 10).
Work Manager Task Hours
NGSM
Maintenance: Next Generation Switch.
Follows Depreciation apportionment base for NGSC CoW.
REPA
Repairs: System Y (AXE 10) exchanges.
Follows DY apportionment.
REPX
Repairs: System X exchanges
Survey of the number of line cards sent to manufacturer for offsite repairs and
analysis of what they relate to.
TGXD
Maintenance: SPC Telex Exchanges
100% allocation to Telex Plant Group
Maintenance: Transmission Equipment.
Follows Depreciation apportionment base for transmission CoWs.
IVS/ IVX/ SDH
PDTSCNM_Diagram1
Step 3 – Amalgamation.
The PG level bases calculated in step 2 are amalgamated back into a SCNM level base by utilising the outputs from
Step 1 and 2.
Data Source/s
Full year Platform level contract support costs – provided by the Technology Vendor Management team.
Plant Group specific platform apportionments from NCA (Network Cost Analysis) Analysts using information from
sources highlighted above.
PDTSDH
ALL
SDH (Synchronous Digital Hierarchy) Electronic Assets
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for classes of work (CoW) SDH and also the maintenance costs on
CoW IVS (Maintenance, Synchronous Digital Transmission Equipment).
130
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
SDH represents newer electronic assets in the Transmission network. They complement the transmission
equipment capacity provided by the Plesiochronous Digital Hierarchy (PDH) assets – see PDTCRD and PDTCRF.
IVS capture the corresponding maintenance costs incurred on SDH equipment.
Allocation is to Plant Group (PG), which represent bearers in the core network.
SDH CoW is subdivided into a number of asset policy codes, representing the different asset types within SDH. The
driver and destination for these policy codes does vary. SDH costs are mapped to bearer links, which can either be
STM1, STM4, STM16 or STM64, represented by a number of PGs.
Asset types
Asset types within SDH can be classified into a number of key categories:

Add Drop Muxes (Add Drop Muxes (ADMs) - Exchange and customer sited).

Cross Connects - (Routing equipment - Two main types-4/1 and 4/4).

Line systems.

International Backhaul equipment.

Other (Software, computer equipment, etc.).
Methodology
CTCS (Core Transmission Circuit costing System) generates a file listing all SDH equipment and the number of
factored hits by bearer type (PG). The aim is to allocate the cost of equipment to a number of bearer types based
on usage and utilisation. Hits represent the number of times a bearer interfaces with a piece of equipment. A
factor is applied in order to ensure utilisation is taken into account, for example an STM 4 (565mb) bearer would
utilise an ADM, four times as much as a STM 1(155mb) bearer.
The CTCS file details all SDH assets by bandwidth, e.g. ADMs are broken down by type - SMA1, SMA4 and SMA
16. BT’s initial calculations are at an asset policy level. Asset policy codes group assets into broad categories, so
ADMs would be grouped into one code. However, no detail is provided of the different ADM types, which vary by
bandwidth. The cost/depreciation of equipment and the bearer hits vary considerably by bandwidth.
As a result, the process involves splitting asset policy codes into further detail, by using:

Count of equipment by bandwidth.

Price of equipment by bandwidth.
The value (Count * Price) of each equipment type, within a policy code, is used to weight the factored hits. The
hits are then grouped together, at an overall asset policy level.

Initially, all base calculations are at an asset policy level. However, the final input into ASPIRE requires an
amalgamation of all these bases, to reflect an overall CoW to PG base. To consolidate all the asset policy
codes, within a particular CoW, a weighted average is created, weighted by Period 6 depreciation from the
Period 6 Life of Plant (LoP) list. This is derived from the fixed asset register (refer to the Data Source/s
section).

Indirect costs are treated as overheads and are allocated to PGs, in proportion to the value of the equipment
already apportioned.
Data Source/s
Period 6 circuit data is used in CTCS to allocate year end costs, as this reflects an average position of network
utilisation over the year.
Period 6 LoP list.
SDH prices-Procurement/SDH cost model.
For further explanation refer to the diagram below.
Diagram: SDH Electronic Assets PDTSDH Process
131
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTSDH_Diagram1
PDTSIGNI
ALL
Signalling Equipment Capital Costs
Description
This base apportions the capital costs of Signalling equipment registered in the SIGNI classes of work (CoW) to
Plant Groups (PGs).
SIGNI equipment is associated with PSTN (Public Switched Telephony Network] Interconnect (Other Licensed
Operator) circuits and PSTN to Intelligent Network (IN) circuits.
The main assets are:

STP (Signalling Transfer Point) switches and Edge Link Monitors for Interconnect Circuits.

SPRs (Signalling Point Relay switches) and Core Link Monitors for PSTN to IN Circuits.
Methodology
The Fixed Asset Register records assets against distinct Asset Policy Codes (APCs) which reflect asset function. This
allows easy identification of depreciation costs by function and allows the calculation of the relevant split to
corresponding PGs. A summary of data from the Fixed Asset Register for the latest available period is used for the
base.
The relationship between APCs and PGs is shown below.

SIGN Signalling Transfer Point switches and SIGE Edge-link monitors - Costs directly attributed to
PG228A Signalling Transfer Point switches and Edge-link monitors.

SIGC Core-link monitors and SIGS Signalling Point Relay switches - Costs directly attributed to PG229A
Signalling Point Relay switches and Core-link monitors.
Diagram: Signalling Equipment PDTSIGNI Apportionment Process.
P D T S IG N I
F 8 c o s ts
A s s e t P o lic y C o d e s
X1+ x
2
+ Y1 + Y 2 =
1 0 0%
P la n t G r o u p s & P r o d u c ts
S IG N I
S IG E
x1
x2
PG228A
( S ig n a llin g T r a n s fe r P o in ts
& E d g e L in k M o n ito r s )
S IG N
S IG N I F 8 s
S IG C
y1
y2
S IG S
P D T S IG N I_ D ia g r a m 1
132
PG229A
( S ig n a llin g P o in t R e la y s &
C o r e L in k M o n ito r s
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Fixed Asset Register (LoP List) data at the latest available period. Management believe this period to be reflective
of the full year.
PDTSYSXD
ALL
System X – Historic Balance Sheet/Profit and Loss
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value (GBV) and accumulated depreciation)
and historical cost Profit and Loss (i.e. depreciation etc.) charges for System X local exchange equipment to Plant
Groups (PGs).
Methodology
There are two fundamental building blocks of System X:

Concentrators.

Processors.
Each of these elements will relate to a specific PG. Therefore to create an apportionment base, we need to
‘dimension’ each of these specific equipment elements.
Concentrators
Step 1 – Determine the Current Cost value of all the equipment elements of concentrators in the network.
Obtain from the EXPRES (Exchange Planning and Review System) system data that details the line types and the
total number of lines fitted to each concentrator in the BT Network. This data is entered into an engineering
model which “dimensions” the number of equipment elements required to make up that number of lines. The
quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the total
cost for each equipment element. The appropriate element cost that the engineering model utilises is the Current
Cost amounts for each type of equipment element. These are obtained from the Price Element Scheduled (PES)
items as part of the LEMP (Local Exchange Modernisation Program). The figures that are used from this are the
March 1995 figures.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in Step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken by
experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the classes of work (CoW) is applied.
Step 3 – Allocate the depreciation charge into call set-up, access and call duration categories using cost drivers.
Using detailed information obtained from the switch manufacturer, which analyses how the different equipment
types within the switch are used to provide service, the total Current Cost depreciation value for each type of
equipment element is allocated to the following categories:

Call set-up.

Call duration.

Access.
Total Current Cost depreciation values under each of the three categories can then be calculated.
This step illustrates the reason for using Current Cost values to create the apportionment base for the historical
cost System X values. The manufacturer’s matrix is crucial in providing the link between the F8 codes and the PGs
that they are apportioned to. However the equipment elements in the manufacturer’s matrix cannot be
reconciled to asset policy codes that are based on historical cost values. However the PES equipment elements
compiled as part of the LEMP do reconcile to the manufacturers matrix and these items are listed at modern asset
equivalent values.
Step 4 – Apportion the Access category into more detailed access categories, which will be linked to PGs in later
stages.
The total Current Cost depreciation allocated to the category ‘access’ must be further split into the following
categories:

Public Switched Telephone Network (PSTN).

Integrated Services Digital Network (ISDN2).
133
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)

ISDN30.

Payphones.
This apportionment is calculated based on the relative proportion of cost already identified in the engineering
model.
Step 5 – Create concentrator weighted base.
Using the Current Cost depreciation amounts calculated for the above-listed categories, create a weighted base
for concentrator kit.
The above steps are represented in the flowchart below:
EXPRES
C
o
n
c
e
n
t
r
a
t
o
r
s
PES
Switch
Manufactures
Maxtix
EXPRES (Lines)
ASSET
Lines
Model
Current Cost
Depreciaton
Concentrator Kit
Type1
Concentrator Kit
Type2
Concentrator Kit
Type3
Concentrator Kit
Type4
Concentrator Kit
Type5
Concentrator Kit
Type6
£1, 500
Total
£9, 000
Concentrator
Set up Kit
Concentrator
Duration Kit
Concentrator
Setup Kit
Conc.
Duration Kit
£3, 000
£1, 500
£, 3000
£1, 500
Concentrator
Setup Kit
Conc. Duration
Kit
33%
17%
£2, 600
£1, 000
£500
Concentration
Asset Kit
£4, 500
Total
£9, 000
£3, 000
£400
PSTN Access
Kit
ISDN2 Access
Kit
ISDN30
Access Kit
Payphones
Access Kit
Total
£ 700
£2, 000
£1, 000
£ 800
£4, 500
PSTN Access
Kit
ISDN2
Access Kit
ISDN 30
Access Kit
Payphones
Access Kit
Total
£700
£2, 000
£1, 000
£800
£9, 000
Conc. PSTN
Access Kit
Conc. ISDN2
Access Kit
Conc. ISDN 30
Access Kit
Conc. Payphones
Access Kit
Total
8%
22%
11%
9%
100%
PDTSYSDX_Diagram1
*percentages are for illustrative purposes only
Processors
Step 1 – Determine the Current Cost value of all the equipment elements of processors in the network.
Obtain from the EXPRES system data on the number of different lines connected to each processor in the BT
network. Data is also obtained from NRS (Network Recording System) on the size of all the processors in the BT
network. This data is then entered into an engineering model which “dimensions” the number of equipment
elements required to make up that total processing capacity. The quantities of each equipment element are then
multiplied by an appropriate element cost to arrive at the total cost for each equipment element. The appropriate
element cost that the engineering model utilises is the Current Cost amounts for each type of equipment. This is
obtained from the PES items as part of the LEMP. The figures that are used from this are the March 1995 figures.
Current Cost values are used for the same reason as stated above for concentrators.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken by
experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the CoW is applied.
Step 3 – Create processor weighted base.
Using the Current Cost depreciation values calculated for the above-listed categories, create a weighted base for
processor kit.
The above steps are represented in the flowchart below:
134
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
EXPRES
P
r
o
c
e
s
s
o
r
s
SIT
PES
Switch
Manufactures
Maxtrix
ASSET
Lines
Model
Current Cost
Depreciaton
Processor Kit Type 1
Processor Kit Type 2
£500
£300
Processor Kit Type 3
£600
Processor Kit Type 4
£100
Processor Kit Type 5
£1,000
Total
£2,500
Digial Line
Termination
£x
Switch Block
£y
Processor end
signalling
£z
Total
£x,y,z
Digital Line
Termination
X%
Switch Block
Y%
Processor and
Signalling
Total
Z%
100%
PDTSYSDX_Diagram2
* percentages are for illustrative purposes only
Apportionment to PGs
We now have two sets of apportionment data with the concentrator apportionments add up to 100% and the
processor apportionments also add up to 100%. The next step in the process is to weight the concentrator and
processor apportionments This base uses modern equivalent asset depreciation values to create the weighting
from within the model.
Step 1 – Total the modern equivalent asset depreciation charges for System X equipment.
From the calculations above, the total of the modern equivalent asset depreciation charges for processor
equipment is calculated. The total of the modern equivalent asset depreciation values for concentrator
equipment is also calculated.
Step 2 – Create weighted base for apportionment percentages.
Using the relative proportions between processors and concentrators derived from the previous step, the
apportionments calculated for processors and concentrators can be weighted.
The above steps can be represented in the flowchart below:
135
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
LOP
B
a
s
e
R
e
f
e
r
e
n
c
e
Digital Line Termination
Switch Block
Processor & Signalling
20%
40%
40%
Digital Line Termination
Switch Block
Processor & Signalling
Total
100%
Total
Concentrator Set up Kit
Concentrator Duration Kit
Concentrator PSTN
Access Kit
Concentrator ISDN2
Access Kit
Concentrator ISDN30
Access Kit
Concentrator Payphones
Access Kit
%
s
Processor Dep’n
Concentrator
Dep’n
£2, 000
£10, 000
Processor Dep’n
Concentrator
Dep’n
x%
c%
d%
e%
f %
g%
h%
100%
Total
5.6 %
11%
11%
20%
Concentrator Set up Kit
Concentrator Duration Kit
Concentrator PSTN
Access Kit
Concentrator ISDN2
Access Kit
Concentrator ISDN30
Access Kit
Concentrator Payphones
Access Kit
c1%
d1%
e1%
f1 %
g1%
h1%
80%
Total
y%
PDTSYSDX_Diagram3
*percentages are for illustrative purposes only
Step 3 – Apportion amounts to PGs.
These apportionments are applied to the following PGs based on an analysis of the most appropriate fit for the
building blocks. These are then applied to the historical cost Balance Sheet (i.e. GBV and accumulated
depreciation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for System X local exchange
equipment. The PGs that the apportionments point to are as follows:
Category
Plant Group
System X Concentrator Call set-up
PG288A
System X Concentrator Call duration
PG289A
PSTN Linecards
PG127A
ISDN2 Linecards
PG128A
ISDN30 Capital
PG124A
Payphones Linecards
PG120A
System X DLE Processor and Signalling Capital
PG285C
System X DLE Processor Capital
PG286C
System X DLE Switch Block
PG287A
PDTSYSXD_Diagram5
This is represented in the flowchart below:
PG286C
A
p
p
o
r
t
i
o
n
m
e
n
t
PG287A
Digital Line Terminating equipment
PG285A
Switch block equipment
Processing & Signaling Equipment
PG288A
Concentrator Set-up
System X Balance
Sheet and Profit and
Loss F8 Codes
(Historical Costs)
Concentrator Duration Kit
Conc.PSTN Access Kit
PG289A
PG127A
Conc.ISDN2 Access Kit
Conc.ISDN30 Access Kit
PG128A
Conc.Payphones Access
PG124A
PG120A
PDTSYSDX_Diagram4
136
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
EXPRES (Exchange Planning and Review System).
LEMP (Local Exchange Modernisation Program) Contract - The figures that are used from this are the March
1995 figures.
PDTTCR
ALL
Costs - Transmission Repair and Control on Trunk and Junction Transmission equipment
Description
This base apportions management pay costs of maintenance and repair works carried out on Trunk and Junction
transmission equipment. This refers to the supervision of maintenance work carried out on the link sections of
optical fibre cables which form part of the Core Network (also known as Core networks) and Private Circuits using
the Plesiochronous Digital Hierarchy (PDH) technology (see Plant Group (PG) Overview on descriptions of Core
Transmission Bearers).
These costs are incurred by BT Wholesale Network Operations and Management (OUCs NL, NC respectively), and
flow into the classes of work (CoW) TCR (Transmission Control and Repair) which relate to PGs representing
bearers in the core network.
Methodology
Costs are attributed to PDH PGs based on the number of PDH Line Systems and PDH Multiplexors supporting the
different PDH bandwidths.
Data Source/s
Period 6 circuit data is used in Core Transmission Circuit costing System (CTCS) to allocate year end costs, as this
reflects an average position of network utilisation over the year.
PDTTPWC
ALL
Costs – Core Microwave Radio Transmission Equipment
Description
This base apportions Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs related to core microwave radio transmission equipment, classes of
work (CoW) TPWC. Unlike cable transmission, radio has only link related equipment to consider. Examples of this
equipment are antennas, masts and radio electronics.
Methodology
Costs are apportioned over the different bandwidth bearers based on an analysis of radio bearers in the core
transmission network which is derived from Core Transmission costing Circuits System (CTCS) database. CTCS
shows the relationship between equipment types and the bearers they support. The depreciation costs of radio
equipment can be apportioned to radio bearers based on the bearers' usage of this equipment. Usage is measured
as the number of times a certain type of bearer “hits” the equipment in the network.
For example, CTCS would map the number of hits made on the equipment (in this case Core Transmission
Microwave Radio Infrastructure) by bearers of a particular type (e.g. Plesiochronous Digital Hierarchy (PDH)Radio-8Mbit/s, 34Mbit/s or 140Mbit/s bearers). For further clarification please see the diagram below.
Usage factor is used as for bearers on fibre cable, e.g. a 140 Mbit/s radio bearer can support 64 x 2 Mbit/s
circuits, and so the usage factor is 1/64.
PDTTPWC_Diagram1
Data Source/s
Period 6 CTCS data on factored bearer hits on each radio system type. Management believes this to be reflective
of the full year.
137
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
PDTUDL
BC, BV
Special Fault Investigation (SFI)
Description
This base apportions the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet
costs of Special Fault Investigations.
A Local Loop Unbundling (LLU) Special Fault Investigation (SFI) can be initiated by a LLU Communications
Provider (CP) when a Metallic Path Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the
Openreach line test system, but where there might be a problem with the CP’s Asymmetric Digital Subscriber Line
(ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
An allocation based on aspire data will be used to calculate the share of costs to be pointed from COW UDL to
Plant Groups (PGs).This allocation will only be applied to costs for OUC B (Openreach) and OUC MJ (Northern
Ireland).
The PGs that these costs are apportioned to are as follows:

PG118M – D side Copper Current.

PG989A - Special Fault Investigation.
Data Source/s
ASPIRE DIY report.
PDTUEL
BC, BV
Special Fault Investigation (SFI)
Description
This base apportions the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet
costs of Special Fault Investigations.
A Local Loop Unbundling (LLU) Special Fault Investigation (SFI) can be initiated by a LLU Communications
Provider (CP) when a Metallic Path Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the
Openreach line test system, but where there might be a problem with the CP’s Asymmetric Digital Subscriber Line
(ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
An allocation based on aspire data will be used to calculate the share of costs to be pointed from COW UEL to
Plant Groups (PGs).This allocation will only be applied to costs for OUC B (Openreach) and OUC MJ (Northern
Ireland).
The Plant Groups (PGs) that these costs are apportioned to are as follows:

PG117M - E Side Copper Current.

PG989A - Special Fault Investigation.
Data Source/s
ASPIRE DIY report.
PDTWDM21
ALL
Wavelength Division Multiplexor transmission equipment used in 21CN (Ciena)
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for the transmission equipment of the
WDMSAN chains, the METRO – CORE and CORE – CORE transmission electronic equipment, to Plant Groups (PGs).
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Ciena is one of these suppliers.
Methodology
The WDM equipment contains functionality for the transport of connectivity, voice and broadband services over
138
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
the WDM chains and the METRO/CORE layer nodes.
The latest 21CN business case model is analysed into the categories, for which we have assigned PGs, for the
assets of the WDM electronics. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:

PG866A Core-Core Link

PG886A Metro-Core Link

PG899A WDM-Metro Link
Data Source/s
CAPEX forecast from BT Innovate & Design.
PDTWMCN
AL
Work Manager
Description
Work Manager is a task recording system used in BT Operate to record the time spent by field engineers across
many classes of work (CoW). It allocates work in the core network and manages the control system for work
carried out at non-specialised Network Operations Units.
Methodology
An analysis of the “Work Manager” task recording system apportions costs that relate to the management of the
core network work allocation and control system carried out at Network Operations Units (NOU).
CoW are identified from a download of Work Manager information and a sample representative of the full year
(normally six months) is used. The number of tasks for Work Manager is shown by CoW and this is used to
determine the apportionment. Where the CoW is apportioned to more than one Plant Group (PG) the
apportionment applied to the capital CoW is used. Where the Capital CoW to PG is 100% then the PG receives an
unchanged percentage from WMCN.
Data used is from the Operate Work Manager machines as these contain activities relevant to Operate only and
drive to Operate CoW.
Data Source/s
Work Manager National Job Recording (NJR Data).
PDTWMCN
BC, BV
Work Manager
Description
Work Manager is a task recording system used in BT Openreach to record the time spent by field engineers across
many classes of work (CoW). It allocates work in the core network and manages the control system for work
carried out at non-specialised Network Operations Units.
Methodology
An analysis of the “Work Manager” task recording system apportions costs that relate to the management of the
core network work allocation and control system carried out at Network Operations Units (NOU).
CoW are identified from a download of Work Manager information and a sample representative of the full year
(normally six months) is used. The number of tasks for Work Manager is shown by CoW and this is used to
determine the apportionment. Where the CoW is apportioned to more than one Plant Group (PG) the
apportionment applied to the capital CoW is used. Where the Capital CoW to PG is 100% then the PG receives an
unchanged percentage from WMCN.
Data used is from the Openreach Work Manager machines as these contain activities relevant to Openreach only
and drive to Openreach CoW.
Data Source/s
Work Manager National Job Recording (NJR Data).
PENOFF
E
International Financial Reporting Standard (IFRS) Share Benefit Cost Offset
Description
This base apportions the Profit and Loss (P&L) costs (current ETG Pay etc.) associated with the Share Option
Schemes and represents the “discount” offered as part of the scheme.
139
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Methodology
This cost is charged to Lines of Business (LoB), with the corresponding credit going to OUC E. The Pan Divisional
balance is therefore zero. The PENOFF base is designed to ensure that the Products, Plant Groups (PGs) and Level
1 Activity Groups (AGs) also total zero.
The base is created by using a download from ASPIRE for F8 Code 109152 (Shared Benefit Costs) omitting
Organisational Code Unit (OUC) E. The result can then be calculated to sum to zero from a Product perspective.
Example:
F8 Code
OUC
Product/Plant Group etc
Prod/ PG etc
Value
109152
A
P123
10
109152
A
PG345a
10
109152
B
P123
20
109152
B
PG345a
10
B
AG678
20
109152
Total
70
109152
E
P123
-30
109152
E
PG345a
-20
E
AG678
-20
109152
Product
Perspective
Total
-70
Total
0
PENOFF_Diagram1
Data Source/s
Download from ASPIRE on F8 code 109152.
PROPPROV
W
Property Provision
Description
BT Property is currently implementing a property rationalisation strategy by consolidating the office space within
the estate, and this is enabling the mothballing and subletting of buildings.
The cost associated with this rationalisation is being treated as a Provision, as it is not part of business as usual
activity.
Methodology
The property rationalisation is limited to office space, and therefore a base derived from the General Purpose
Occupation cost charges to Lines of Business (LoB) provides a cost causal apportionment methodology.
Effectively the cost of the property rationalisation is being apportioned over current office space usage.
Data Source/s
LoB charges are generated from Group Properties ‘Horizon’ Billing database, which maintains records of all
buildings, whether owned or leased, and organisational units’ space utilisation.
REDUND_COR
ALL
Core
OUCs
Except
B's
Balance Sheet – Redundancy Creditor Accruals
Description
This base is used to apportion redundancy creditor accruals in the Balance Sheet.
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time redundancy costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. REDUND).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
140
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use F8s to
Use F8's to
produce
produce download
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
AS Cost Centre A
AS Cost Centre C
= 100%
= 100%
REDUND_COR_Diagram1
‘REDUND’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all redundancy and NewStart pay costs incurred by BT during the year. This data is held within the
system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which the redundancy creditors balance should be
apportioned.
The REDUND apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘COR’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘COR’ refers to all AS Cost Centres, which incurred costs, specifically excluding any overseas activities.
Income / cost to be
apportioned
Apportionments from
DD1 (REDUND)
Redundancy
creditors
relating to
Accurals
Previously
apportioned pay of
all BT units in
redundancy
scheme
DD1: REDUND
AS Cost Centres in
DD2 (COR)
DD2: COR
BT Core
Business Cost
Centres
REDUND_COR_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
REDUND-PCT
A,B,BV
Balance Sheet – Redundancy Creditor Accruals
Description
This base is used to apportion redundancy creditor accruals in the Balance Sheet relating to Operate and
Openreach.
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time redundancy costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. REDUND).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
141
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
F8s to
Use F8's to
produce
produce download
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
AS Cost Centre A
AS Cost Centre C
= 100%
= 100%
REDUND_COR_Diagram1
‘REDUND’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all redundancy and NewStart pay costs incurred by the LoBs (in this case Operate and Openreach)
during the year. This data is held within the system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the redundancy creditors’ balance should be
apportioned.
The REDUND apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘PCT’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Income / cost to be
apportioned
Apportionments from
DD1 (REDUND)
Redundancy
creditors
relating to
Accurals
Previously
apportioned pay of
all BT units in
redundancy
scheme
DD1: REDUND
AS Cost Centres in
DD2 (COR)
DD2: COR
BT Core
Business Cost
Centres
REDUND_COR_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
SLGETH
BC, BV
Service Level Guarantee scheme (SLG) – Ethernet
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with Ethernet Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.

Internal Costs F8 293753.

External Costs F8 209280.
A percentage split between provision and repair activities will be calculated using volume data from Orbit and the
costs will then be pointed to the following Plant Groups (PGs).

PG573B - OR Service Centre - Provision Ethernet.

PG578B - OR Service Centre - Assurance Ethernet.
142
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Data is produced from our tactical production files and from service flow” The majority of these are fed from
Orbit.
SLGLLU
BC, BZ
Service Level Guarantee scheme (SLG) – LLU
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with LLU Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.

Internal Costs F8 293754.

External Costs F8 209270.
A percentage split between provision and repair activities will be calculated using volume data from Orbit and the
costs will then be pointed to the following Plant Groups (PGs).

PG572B - OR Service Centre - Provision LLU.

PG577B - OR Service Centre - Assurance LLU.
Data Source/s
Data is produced from our tactical production files and from service flow” The majority of these are fed from
Orbit.
SLGLLU
BV
Service Level Guarantee scheme (SLG) – LLU
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with LLU Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.

Internal Costs F8 293754.

External Costs F8 209300.
A percentage split between provision and repair activities will be calculated using volume data from Orbit and the
costs will then be pointed to the following Plant Groups (PGs).

PG572B - OR Service Centre - Provision LLU.

PG577B - OR Service Centre - Assurance LLU.
Data Source/s
Data is produced from our tactical production files and from service flow” The majority of these are fed from
Orbit.
SLGWLR
BV
Service Level Guarantee scheme (SLG) – WLR
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with WLR Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
143
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Costs against the following F8 Codes.

Internal Costs F8 293752.

External Costs F8 209260.
A percentage split between provision and repair activities will be calculated using volume data from Orbit and the
costs will then be pointed to the following Plant Groups (PGs).

PG570B - OR Service Centre - Provision WLR.

PG575B - OR Service Centre - Assurance WLR.
Data Source/s
Data is produced from our tactical production files and from service flow” The majority of these are fed from
Orbit.
SOFTCAP
A, AN,
AP, AR
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Operate Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs. The analysis of how these projects were treated
under the development base is used to produce a weighted average of the total treatment for each project. This is
used to calculate a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG447A (100%) and this
same project, has been capitalised, then the SOFTCAP base apportions the capitalisation entries for the project to
PG447A (100%) as well.
Data Source/s
LoB (Line of Business) development base.
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
SOFTCAP
All B
OUCs
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Openreach Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs. The analysis of how these projects were treated
under the development base is used to produce a weighted average of the total treatment for each project. This is
used to calculate a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG772A (100%) and this
same project, has been capitalised, then the SOFTCAP base apportions the capitalisation entries for the project to
PG772A (100%) as well.
Data Source/s
LoB (Line of Business) development base.
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
SOFTCAP
C
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Group Organisational Unit Codes (OUCs).
Methodology
144
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
SOFTCAP uses the current year software capitalisation costs.
The capitalisation costs for OUC C are apportioned 100% to AG112, Corporate costs.
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
SOFTCAP
D
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
BT Innovate & Design (BTID) Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs.
The capitalisation costs for D OUC are apportioned by the D Except base (BTID – Development and Consulting
Projects) using an analysis of the activity of units receiving the transfer charge from BTID.
Data Source/s
Ledgered costs.
SOFTCAP
K
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Wholesale Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs. The analysis of how these projects were treated
under the development base is used to produce a weighted average of the total treatment for each project. This is
used to calculate a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG197A and PG198A
(67.9% and 32.1% respectively) and this same project, has been capitalised, then the SOFTCAP base apportions
the capitalisation entries for the project to PG197A and PG198A (67.9% and 32.1%) as well.
Data Source/s
LoB (Line of Business) development base.
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
SOFTCAP
All M
OUCs
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Retail Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs. These costs are provided by Retail Finance with
appropriate treatments (e.g. Billing base, Customer Service base, Overhead, etc.) and by Product for Broadband,
and those are used to produce the final base.
Data Source/s
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) revenue downloads.
SOFTDEP
A, AP,
AR
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
145
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
Accumulated Depreciation) relating to Operate Organisational Unit Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register. The network costs
analyst determines how those projects were apportioned under the development base and, using a weighted
average of the treatment for each individual project, calculates a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG447A (100%) and this
same project, has been depreciated, then the SOFTDEP base apportions the depreciation entries for the project to
PG447A (100%) as well.
Data Source/s
LoB (Line of Business) development base.
Fixed Asset Register software data for Period 10, Management believe this period is representative of the full
year.
ASPIRE P12 Organisational Unit Code (OUC) pay downloads.
SOFTDEP
All B
OUCs
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Openreach Organisational Unit Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register. The network costs
analyst determines how those projects were apportioned under the development base and, using a weighted
average of the treatment for each individual project, calculates a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG772A (100%) and this
same project, has been depreciated, then the SOFTDEP base apportions the depreciation entries for the project to
PG772A (100%) as well.
Data Source/s
LoB (Line of Business) development base.
Fixed Asset Register software data for Period 10. Management believe this period to be reflective of the full year.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
SOFTDEP
C
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Operate, Openreach, Wholesale, Retail and Global Organisational Unit
Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures. The depreciation costs for C OUC are apportioned 100% to
AG112, Corporate costs.
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
SOFTDEP
All K
OUCs
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Operate, Openreach, Wholesale, Retail and Global Organisational Unit
Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register. The network costs
146
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
analyst determines how those projects were apportioned under the development base and, using a weighted
average of the treatment for each individual project, calculates a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG197A and PG198A
(67.9% and 32.1% respectively) and this same project, has been capitalised, then the SOFTCAP base apportions
the capitalisation entries for the project to PG197A and PG198A (69% and 32.1%) as well.
Data Source/s
LoB (Line of Business) development base.
Fixed Asset Register software data for Period 10. Management believe this period to be reflective of the full year.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
TOTPAY_COR
All OUCs
Employee-related Debtors and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related debtors and creditors, pay related group adjustments and other
provisions.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. CORA).
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8s to
produce
Use
F8's to proudce
download
download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
Download::
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
AS Cost Centre A
AS Cost Centre C
= 100%
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
= 100%
TOTPAY_CORA_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘CORA’, the Data Designator 2, specifies the AS Cost Centres to which the employee related debtors and creditors,
group adjustments and pay provisions balances should be apportioned i.e. all AS Cost Centres excluding overseas
activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the CORA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the CORA
creditors balance.
‘CORA’ refers to BT Core Business Cost Centres.
Income / cost to be
apportioned
Employee related
debtors and
creditors, group
adjustments and
provisions
Apportionments from
DD1 (TOTPAY)
DD1: TOTPAY
Previously
apportioned pay
costs on all units
TOTPAY_CORA_Diagram2
Data Source/s
147
AS Cost Centres in
DD2 (CORA)
DD2: CORA
BT Core Business
Cost Centres
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
ASPIRE generated data cumulative to Period 12.
TOTPAY,TOTP
AY-CORA
ALL
Core
OUCs
Employee-related Debtors and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related debtors and creditors, pay related group adjustments and other
provisions.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. CORA).
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8's to proudce
download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
Download::
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
AS Cost Centre A
AS Cost Centre C
= 100%
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
= 100%
TOTPAY_CORA_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘CORA’, the Data Designator 2, specifies the AS Cost Centres to which the employee related debtors and creditors,
group adjustments and pay provisions balances should be apportioned i.e. all AS Cost Centres excluding overseas
activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the CORA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the CORA
creditors balance.
‘CORA’ refers to BT Core Business Cost Centres.
Income / cost to be
apportioned
Employee related
debtors and
creditors, group
adjustments and
provisions
Apportionments from
DD1 (TOTPAY)
DD1: TOTPAY
Previously
apportioned pay
costs on all units
AS Cost Centres in
DD2 (CORA)
DD2: CORA
BT Core Business
Cost Centres
TOTPAY_CORA_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
TOTPAY-ORP
ALL
OUCs
Employee-related Debtors and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related debtors and creditors, pay related group adjustments and other
provisions relating to Openreach.
Methodology
148
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ORP).
DD1:
List of F8 codes to
be used to derive Use F8s to
Use F8's to proudce
relevant download produce
download
download
from ASPIRE
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
Download::
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
AS Cost Centre A
AS Cost Centre C
= 100%
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
= 100%
TOTPAY_ORP_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘ORP’, the Data Designator 2, specifies the AS Cost Centres to which the employee related debtors and creditors,
group adjustments and pay provisions balances should be apportioned i.e. all AS Cost Centres excluding overseas
activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ORP group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the ORP
creditors balance.
‘ORP’ refers to BT Openreach Cost Centres.
Income / cost to be
apportioned
Employee related
debtors and
creditors, group
adjustments and
provisions
Apportionments from
DD1 (TOTPAY)
DD1: TOTPAY
Previously
apportioned pay
costs on all units
AS Cost Centres in
DD2 (ORP)
DD2: ORP
BT Openreach Cost
Centres
TOTPAY_ORP_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
TOTPAYPENA
ALL
Core
OUCs
Employee Pensions
Description
This base is used to apportion staff pension cost ledgered on BT Group consolidation units as well as debtors and
creditors relating to employee pensions. These are apportioned on the basis of total pay (current and capital
account).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PENA).
Diagram: ASPIRE System Process
149
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
F8s to
Use F8's to
produce
produce download
download
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
AS Cost Centre A
AS Cost Centre C
= 100%
= 100%
TOTPAY_PENA_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT. The data is held within the ASPIRE system by AS
Cost Centre.
‘PENA’, the Data Designator 2, specifies the AS Cost Centres to which the group adjustments and staff provisions
and debtors and creditors relating to pensions balances should be apportioned i.e. total BT units excluding
subsidiaries.
The TOTPAY apportionment base (see above) is adapted to exclude apportionments to AS Cost Centres not listed
in the PENA group of AS Cost Centres.
‘PENA’ refers to those BT units participating in one of the BT Pension schemes.
Diagram: Employee Pensions Apportionment Process
Income / cost to be
apportioned
Debtors and
Creditors relating
to employee
DD1: TOTPAY
Pensions and staff
pension costs
Apportionments from
DD1 (TOTPAY)
Previously
apportioned pay
costs of all units
AS Cost Centres in
DD2 (PENA)
DD2: PENA
BT Core
Business Cost
Centres in the
Pension scheme
TOTPAY_PENA_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
TOTPAY-SYBA
ALL
Core
OUCs
Employee Profit Sharing – Total Pay (Current and Capital Account)
Description
This base is used to apportion staff costs and creditors relating to Employee Profit Sharing on the basis of total
pay (current and capital account).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
This is recalculated each time the pay costs are updated. Each base has two separate markers that govern:

The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).

The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. SYBA).
Diagram: ASPIRE System Process
150
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use F8s to
Use F8's to
produce
produce download
download
ASPIRE:
download
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download
Eliminate data for
AS Cost Centres
not in DD2
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
100%
Download
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
TOTPAY_SYBA_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT. This data is held within the ASPIRE system by AS
Cost Centre.
‘SYBA’, the Data Designator 2, specifies the AS Cost Centres to which the creditors relating to Employee Profit
Share should be apportioned.
The TOTPAY apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the SYBA
group of AS Cost Centres.
‘SYBA’ refers to those BT Group units in the BT Sharesave scheme, which relate to employee profit share.
Diagram: Employee Profit Sharing Apportionment Process.
Income / cost to be
apportioned
Creditors relating
to Employee
Profit sharing
DD1: TOTPAY
Apportionments from
DD1 (TOTPAY)
AS Cost Centres in
DD2 (SYBA)
Previously
apportioned pay
costs of all units
BT Core
Business Cost
Centres in BT
Sharesave
scheme
DD2: SYBA
TOTPAY_SYBA_Diagram2
Data Source/s
ASPIRE generated data cumulative to Period 12.
WJOBO
AK
Other Costs by Job
Description
This base apportions any current account expenditure not classified as classes of work (CoW) which therefore
cannot be allocated directly to a job.
Methodology
Using downloads for the Internal Project Ledger (IPL) it is possible to identify assets registered to the WJOBO CoW
that are specific to the Internet Protocol (IP) and Data platforms. Using the ‘Year to Date’ view, it identifies spend
that is relevant to the IP and Data platforms. Where the asset cannot be identified with a specific platform i.e.
Voice over Internet Protocol (VoIP) the costs follow the appropriate base – Internet Protocol Network Capital)
(IPNC) or Asynchronous Transfer Mode (ATM). Equipment that is not identifiable follows the Pay base for OUC A.
VoIP is a method of transporting speech over the internet.
IPNC is the set of communication tools which enables computers to 'talk' to each other over the Internet.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, Broadband
(Multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Diagram: WJOBO
151
Detailed Attribution Methods (DAM) 2012
Section 4 – Base Methodology
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix E for Key Destinations)
WJOBO Class of
Work
PAY Base
PG’s - Various
IPNC equipment
PG’s IP
ATM equipment
PG’s ATM
95% of costs
PG VoiP
Split using Internal
Project Ledger
(IPL) Data
Platform specific equipment
etc
Split using IPL data
PG - Broadband
Existing Allocation
New Allocation
WJOBO_Diagram1
Data Source/s
Year to date data from Internal Project Ledger (IPL). Retail Regulatory Reporting provides the Pay base at OUC A
Level.
WRITEOFF
D
Fixed Asset write off account
Description
This base apportions other costs associated with the Fixed Asset write off account for F8 Codes 203982 FA W/O
Account and 209476 4th Line of Support Costs. As development of new 21CN products and activities evolve,
some assets and development have been reviewed. Those that are not considered viable have been written out of
the statutory accounts. ASPIRE reflects this by distributing this cost over network activities, using an Operate
Organisational Code (OUC) A Pay base, as Operate (not Design OUC D) would have attracted costs if the expected
asset life were progressed.
Methodology
The base is derived using an Operate OUC A pay base which draws upon previously apportioned pay.
Data Source/s
ASPIRE as at Period 12.
152
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
5 Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
AG101
Motor Transport
Description
BT Fleet Management (within BT Group) provides motor vehicles, and associated products and services, to employees within
BT. The group recovers its cost by charging other BT units for its activities at commercial rates. It does this by maintaining
records of the units 'owning' the expenditure and can recover the costs using internal transactions.
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Therefore, instead of creating individual apportionment
bases for each F8 code, they can be grouped together and apportioned using the one methodology.
It therefore follows that since the activity of this IAG relates to the provision of motor vehicles and associated services to the
whole of BT, F8 codes which directly relate to this activity should be apportioned directly to this IAG. This base performs this
process by creating a direct allocation to AG101 for these F8 codes.
Apportionment Summary
The apportionment of Motor Transport costs is made using an analysis of the activity of units receiving the transfer charge
from BT Fleet Management. The internal billing systems used by the Fleet Management Unit hold details of every vehicle, the
cost and the ‘owner’ (Organisational Unit Code - OUC) of the vehicle. This system, therefore, enables internal charges to be
generated to the other BT units. The internal charges are all at commercial rates.
Apportionment
AG101 contains the Balance Sheet and Profit and Loss amounts of the Fleet Management Unit within BT Group. This unit
provides motor vehicles and associated Products and services to employees within BT.
This group charges other BT units for its activities. It does this by maintaining records of the units 'owning' the expenditure
and can charge, at commercial rates, using internal transactions. It therefore follows that the activities of the units being
charged, weighted by the amounts each are being charged by Fleet Management, should provide an appropriate base to
apply to the costs that have been allocated to AG101.
This result is produced automatically by the Regulatory Accounting system using the apportionment of the ‘transfer out’ (F8
code 28xxxx) charges in Motor Transport and apportioning on the same basis. This is appropriate as the underlying recharges
are based on the activities of the units receiving the charges.
Based on how the
transfer charges are
apportioned
P001
£10000
Group Property Unit
Expenses
£24,000
Transfer Out(28xxxx)
Unit 1
Unit 2
Unit 3
£10,000
£8,000
£6,000
AG106
P002
£8000
P003
£6000
Unit 1
Transfer In (24xxxx)
£10,000
P001
£8,000
P002
£6,000
P003
Unit 2
Transfer In (24xxxx)
Unit 3
Transfer In (24xxxx)
Data Source/s
The source data is ASPIRE, at P12, and is based upon the relevant variable cost transfer F8 codes.
153
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
AG106
AG106 - Group Property
Description
Group Property (Property Partners) within BT Group controls all aspects of BT’s Land and Buildings portfolio. Working with
the business units, Property Partners ensures that each unit obtains best value property solutions and services and has a fully
developed property strategy and plan that supports their business strategy. Property Partners also manages the supply of all
property and facilities in accordance with the requirements of BT. Property Partners also hold, on behalf of BT Group, all
interests in land and property including leases and licences and manages all property and related projects on behalf of the
Lines of Business and Group, including appointing and instructing external property and construction consultants. Group
Property manages and controls all aspects of the property and facilities management including maintenance, waste
management services, supply of furniture and day-to-day cleaning.
This group recovers its cost by charging other BT units for its activities. It does this by maintaining records of the units
‘owning’ the expenditure and can recover the costs using internal transactions.
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Therefore instead of creating individual apportionment
bases for each F8 code, they can be grouped together and apportioned using the one methodology.
It therefore follows that since the activity of this group relates to the provision of property services to the whole of BT, F8
codes which directly relate to this activity should be apportioned directly to an IAG. This base performs this process by
creating a direct allocation to AG106 for these F8 codes.
Apportionment Summary
The apportionment of Group Property costs is made using an analysis of the activity of units receiving the transfer charge
from Group Property. There is an internal billing system that is used by Group Property that holds details of all properties that
are used by BT, their occupation costs, other facilities management costs and the Organisational Unit Codes (OUCs) that are
using these assets/facilities. This system enables internal charges to be generated to other BT units. The transfer charges are
cost based and are therefore non-discriminatory.
Apportionment
AG106 contains the Balance Sheet and Profit and Loss amounts of the Group Property Unit within BT Group. This group
recovers its costs by charging the BT units that it supports. It does this by maintaining records of the units 'owning' the
expenditure and then recovers its costs by charging these units using internal transactions. It therefore follows that the
activities of the units being charged, weighted by the amounts each are being charged by Group Property, should provide an
appropriate base to apply to the costs that have been allocated to AG106.
This result is produced automatically by the regulatory accounting system using the apportionment of the ‘transfer out’ (F8
code 28xxxx) charges in Group Property and apportioning on the same basis. This is appropriate as the underlying recharges
are based on the activities of the unit receiving the charge.
Based on how the
transfer charges are
apportioned
P001
£10000
Group Property Unit
Expenses
£24,000
Transfer Out(28xxxx)
Unit 1
Unit 2
Unit 3
£10,000
£8,000
£6,000
AG106
P003
£6000
Unit 1
Transfer In (24xxxx)
£10,000
P001
£8,000
P002
£6,000
P003
Unit 2
Transfer In (24xxxx)
Unit 3
Transfer In (24xxxx)
P002
£8000
Data Source/s
154
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
The source data is ASPIRE, at P12, and is based upon the relevant variable cost transfer F8 codes.
AG112
Corporate Costs
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
IAG AG112 is used to apportion head office type Profit and Loss (P&L) and Balance Sheet values such as the Chairman’s office
and the Group secretariat. F8 codes which directly relate to these activities are allocated to this IAG.
Apportionment Summary
Based on factorised current salary costs and return on assets.
Apportionment
The costs allocated to AG112 relate to head office type expenses e.g. the Chairman’s office and the Group secretariat. The
purpose of these head office activities is generally seen as being two-fold:

Management of the employees within the company.

Management of the assets of the company to create a return.
The base to apportion these costs must reflect these activities if it is to reflect cost causality.
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:

Factorised salary expenses for the whole of BT (current and capital account).

Net book value of fixed assets revalued for current cost accounting (CCA) for the whole of BT.
The AG112 base draws on the result of the previously attributed pay costs within the ASPIRE system following the base
reference stage.
The ‘return on assets’ percentage is then applied to the CCA net book value of each fixed asset class identified by the
Regulatory Accounting system. This percentage is determined by Ofcom. This is applied to ensure that the driver reflects the
corporate activities of ‘managing the assets of the company to create a return’.
By weighting the previously attributed pay costs together with the CCA fixed asset values (taking into account the fact that
the asset amounts have already had the return on assets and investments percentages applied to them) an apportionment
base for AG112 can be derived.
The final base apportionment excludes subsidiaries and associates as these are overseas activities and the AG112 costs are
being attributed solely to UK activities.
This is illustrated in the following diagram:
155
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
How the salary&
Asset Categories
have been
previously
apportioned by the
Regulatory
Accounting System
Asset Categories
Asset
Category 1
£20, 000
Asset
Category 2
£40, 000
%
Return
on
Assets
(set by
Ofcom)
P001
£1, 000
Asset
Category 2
£4, 000
P002
£3, 000
PG003
£5, 000
Asset
Category 2
£8, 000
P001
£3, 000
Apportionment Base
:
P 001 = ((1, 000+3, 000+1,000)/18,000)*100=
P 002 = ((3, 000+1,000)/18, 000)*100=
PG 003= (5, 000/18,000)* 100=
PG 004= ((3,000+1, 000)/18, 000)- 100=
P001
£1, 000
Salary
Category 1
£4,000
PG004
£3, 000
PG004
£1, 000
Salary
Category 2
£2,000
P002
£1, 000
Salary Categories
Total Apportioned
Amount = £18,000
Diagram1_AG112_v1
This apportionment base can then be applied to the amounts contained within AG112:
Apportionment Base
P001
27.8%
P002
22.2%
P003
27.8%
P004
22.2%
P001
£27,800
P002
£22,200
AG112
£100,000
P003
£27,800
P004
£22,200
Diagram2_AG112
Data Source/s
ASPIRE.
AG113
Total Liquid Funds and Interest
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
This Activity Group (AG) apportions all liquid fund transactions. These are defined as Net Short-term Interest Payable (Profit
and Loss) and Short-term Cash, Short-term Investments (both internal and third party), and Short-term Borrowings.
Methodology
All Liquid Funds are collated against AG113 for onward allocation to IAG AG131 Liquid Funds 2010 which ultimately
apportions to Retail Residual Business Market, and PG131L Liquid Funds (Access and Wholesale) which apportions to Access
and Wholesale Markets. Communications Networking Services (CNS) Liquid funds are allocated to Non-Core CNS P628 or
P861 Other - Non Outgoing IDD (CNS) depending on the base applied to the Interest, Cash, Investment or Borrowings (see
CNS specific bases).
156
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
From 2010/11 the agreed Net Cash (Balance Sheet) figure for inclusion in the RFS is based on Group Treasury Cash position –
cash held for paying off long-term loans and other exceptional cash holdings such as Pension Top Up, has been excluded from
the Liquid Funds pot. This is now a fixed level of cash for current and future years unless there is a change in the structure of
the business.
The apportionment of AG113 is driven by Cash flow, which for Regulatory Accounting purposes is defined for the Access,
Wholesale and Retail Markets, by taking Operating Profit, at Product or Component level, adding back Depreciation and
subtracting Capital Additions.
Data Source/s
The source of this base is the cash flow (as defined above) of the Retail and Access/Wholesale Markets and this base is
produced on a quarterly basis.
AG135
Access Duct
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
The amounts, apportioned to AG135, are the Balance Sheet items (i.e. gross book value and accumulated depreciation etc.)
and Profit and Loss items (i.e. depreciation etc.) for Access Duct.
Methodology
Access duct is apportioned to seven Plant Groups (PGs):

PG111C (Access Spine Fibre).

PG959C (Access Distribution Fibre).

PG950C (GEA Access Fibre Spine).

PG951C (GEA Access Fibre Distribution).

PG117C (E Side Copper Cable).

PG118C (D Side Copper Cable).

PG130A (Local Loop Unbundling Tie Cables).
The Absolute Duct Study determines the split between Access Duct used for fibre and Access Duct used for copper cable when
the survey was carried out in 1997. This base is then updated based on the split of 1997 Gross Replacement Cost (GRC) for
Access Duct plus fibre and copper Access Duct spend by Class of Work (CoW) since 1997. For Access Fibre the split to the four
PG’s is based on derived depreciation using IPL spend for the GEA PG’s and depreciation from the LOP list for the Access Fibre
Spine/Distribution PG’s. The apportionment to the other three PGs is determined using the depreciation charges for:

E Side copper cable.

D Side copper cable.

Local Loop Unbundling cable.
By totalling the depreciation for a period representative of the full year for these three items, apportionment percentages are
created for the related PGs. These historical cost figures are obtained from the Life of Plant (LoP) list. The LoP list sources its
information from the fixed asset register.
Data Source/s
Absolute Duct Study (carried out in 1997).
Life of Plant (LoP) list.
Central Information Database (CID).
Internal Project Ledger (IPL).
AG148
Backhaul Duct
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and balance sheet amounts whose similar
157
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
The amounts, apportioned to AG148, are the balance sheet items (i.e. gross book value and accumulated depreciation etc.)
and profit and loss items (i.e. depreciation etc.) for Backhaul Duct.
Backhaul Duct is the national network of underground bores and ducting between exchange nodes that are considered part
of the Openreach division’s assets and is used to house optical fibre and metallic communications transmission cables.
Methodology
AG148 is allocated 100% to PG170B Openreach Backhaul Fibre.
Data Source/s
No data sources required. Allocates 100% to PG170B.
AG149
Inner Core Duct
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
The amounts, apportioned to AG149, are the balance sheet items (i.e. gross book value and accumulated depreciation etc.)
and profit and loss items (i.e. depreciation etc.) for Inner Core Duct.
Inner Core Duct is the national network of underground bores and ducting between exchange nodes (excluding Openreach
assets) and is used to house optical fibre and metallic communications transmission cables.
Methodology
AG149 is allocated 100% to PG350N Wholesale Inner Core Fibre.
Data Source/s
No data sources required. Allocates 100% to PG350N.
AG161
Accommodation Plant Network (Wholesale): Current
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
IAG AG161 acts as the collection pot for the current account related overhead costs of maintaining systems providing heating,
ventilation, air conditioning and general environmental control in BT’s Network Operational Buildings (i.e. non-office
buildings such as property occupied by local exchanges). The F8 codes directly relating to this activity are allocated to this
IAG.
Methodology
This base apportions AG161 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work F2AN.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/A.
Period 8 equipment data from network cost analysts and operational groups such as EXPRES and CTCS. Management believes
this period to be reflective of the full year.
AG162
Accommodation Plant Network (Wholesale): Current
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
IAG AG162 acts as the collection pot for the current account related overhead costs of maintaining systems providing heating,
158
Detailed Attribution Method (DAM) 2012
Section 5 – Activity Group Dictionary
Base Ref
Detailed Description (For all descriptions below, see Appendix E for Key Destinations)
ventilation, air conditioning and general environmental control in BT’s Network Operational Buildings (i.e. non-office
buildings such as property occupied by local exchanges). The F8 codes directly relating to this activity are allocated to this
IAG.
Methodology
This base apportions AG161 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work ACPN.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/A.
Period 8 equipment data from network cost analysts and operational groups such as EXPRES and CTCS. Management believes
this period to be reflective of the full year.
AG163
Power (Wholesale): Current
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
IAG AG163 acts as the collection pot for the maintenance costs on equipment providing power to BT’s Network Operational
Buildings (i.e. non-office buildings such as property occupied by local exchanges). F8 codes directly relating to this activity
are allocated to this IAG.
Methodology
This base apportions AG163 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work P.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/A.
Period 8 equipment data from network cost analysts and operational groups such as EXPRES and CTCS. Management believes
this period to be reflective of the full year.
AG164
Title Power (Wholesale): Capital
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology.
IAG AG164 acts as the collection pot for the balance sheet amounts and associated depreciation charges of equipment
providing power to BT’s Network Operational Buildings (i.e. non-office buildings such as property occupied by local
exchanges). F8 codes directly relating to this activity are allocated to this IAG.
Methodology
This base apportions AG164 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work TPC.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/A. Period 8 equipment data from network cost analysts and
operational groups such as EXPRES and CTCS. Management believes this period to be reflective of the full year.
159
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
6 Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG001X
3rd party Depreciation adjustment debit
Description
This Plant Group (PG) provides a debit adjustment for Equipment Depreciation that has been identified from the credit Plant
Group (PG001Y).
The PG contains bandwidth specific depreciation that is onward allocated to specific equipment services.
Methodology
Equipment costs within a number of services has been removed based on a cost = revenue basis and extracting the depreciation
based on the asset life of the equipment. These costs are then ring fenced and allocated to specific Equipment Depreciation cost
pools.
Data Source/s
ASPIRE, COSMOSS.
PG001Y
3rd party Depreciation adjustment credit
Description
This Plant Group (PG) provides a credit adjustment from a number of Traditional Interface symmetric broadband origination
(TISBO) services whereby Equipment Depreciation that has been recovered under rental services, has been extracted and moved
to specific equipment PGs.
Methodology
Equipment costs within a number of services has been removed based on a cost = revenue basis and extracting the depreciation
based on the asset life of the equipment. These costs are then ring fenced and allocated to specific Equipment Depreciation cost
pools.
Data Source/s
ASPIRE, COSMOSS.
PG002X
Traditional Interface symmetric broadband origination (TISBO) Excess Construction adjustment debit
Description
This Plant Group (PG) provides a debit adjustment from a number of TISBO services whereby Excess Construction depreciation
that has been recovered under rental services has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed based on the excess construction revenue that was
reported in the 2010/11 regulatory accounts and the ‘estimated’ margin that BT makes, thus obtaining a total cost for both
TISBO and Alternative Interface Symmetric Broadband Origination (AISBO) markets.
Allocated 100% to the CE103 Low TISBO Excess Construction component.
Data Source/s
ASPIRE.
PG002Y
Traditional Interface symmetric broadband origination (TISBO) Excess Construction adjustment credit
Description
This Plant Group (PG) provides a credit adjustment from a number of TISBO services whereby Excess Construction depreciation
that has been recovered under rental services has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue that was
reported in the 2010/11 regulatory accounts and the ‘estimated’ margin that BT makes, thus obtaining a total cost for both
160
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
TISBO and Alternative Interface Symmetric Broadband Origination (AISBO) markets.
Data Source/s
ASPIRE.
PG003X
Alternative Interface Symmetric Broadband Origination (AISBO) Excess Construction adjustment debit
Description
This Plant Group (PG) provides a debit adjustment from a number of AISBO services whereby Excess Construction depreciation
that has been recovered under rental services, has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue that was
reported in the regulatory accounts and the ‘estimated’ margin that BT makes, thus obtaining a total cost for both Traditional
Interface symmetric broadband origination (TISBO) and AISBO markets.
Allocated 100% to the CE104 AISBO Excess Construction component.
Data Source/s
ASPIRE.
PG003Y
Alternative Interface Symmetric Broadband Origination (AISBO) Excess Construction adjustment credit
Description
This Plant Group (PG) provides a credit adjustment, from a number of AISBO services, whereby Excess Construction depreciation
that has been recovered under rental services has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue that was
reported in the regulatory accounts and the ‘estimated’ margin that BT makes, thus obtaining a total cost for both Traditional
Interface symmetric broadband origination (TISBO) and AISBO markets.
Data Source/s
ASPIRE.
PG004X
Point of Handover (POH) Depreciation LE adjustment debit
Description
This Plant Group (PG) provides a debit adjustment for POH Equipment Depreciation that has been identified from the credit
Plant Group PG004Y. The PG contains bandwidth specific depreciation that is onward allocated to specific POH equipment
services.
Methodology
Equipment costs, within a number of services, have been removed based on revenue less margin = cost basis and extracting the
depreciation based on the asset life of the equipment. These costs are then ring fenced and allocated to specific Equipment
Depreciation cost pools.
Data Source/s
ASPIRE, LoP List, COSMOSS.
PG004Y
Point of Handover (POH) Depreciation LE adjustment credit
Description
This Plant Group (PG) provides a credit adjustment for the specific POH equipment that is contained in a number of Traditional
Interface symmetric broadband origination (TISBO) services. These costs have been extracted to a specific POH equipment PG.
Methodology
Equipment costs, within a number of services, have been removed based on revenue less margin = cost basis and extracting the
depreciation based on the asset life of the equipment. These costs are then ring fenced and allocated to specific Equipment
161
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Depreciation cost pools.
Data Source/s
ASPIRE, LoP List, COSMOSS.
PG111C
Access Fibre Spine
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of spine fibre cable in the access
network i.e. the network between the local exchange and distribution node.
Exchange
Customer
Node
S pine C able
D is tribution C able
This includes costs associated with clearing existing duct (to allow cable to be installed), jointing and splicing spine fibre.
Specifically this PG captures costs from the following areas/functions:

Pay costs associated with the installation of spine fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding spine fibre to the access network.

Costs associated with installing spine fibre between the local exchange and the distribution node.

Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).

Depreciation costs from the following CoW – Local Fibre Spine Cable (LFSC).
Methodology
Apportionment to component is based on data supplied via the Core Transmission Circuit costing System (CTCS), using circuits
and bearer volumes as at Period 6. The data used from CTCS (refer to Data Source section) includes the percentage of fibre
bearer capacity used by a particular circuit (component).
CTCS provides the volumes of circuits over a bearer which is then converted into 2Mb equivalents. These are weighted by circuit
bandwidth usage of the various bearers.
Data Source/s
Circuits and Bearer Volumes from CTCS for Period 6. Management believes this period to be reflective of the full year.
PG111M
Local Line Fibre Cable Current
Description
This Plant Group (PG) captures the maintenance costs associated with the local line fibre cable in the access network i.e.
between the local exchange and customer’s premises, or fibre installed up to street multiplexers. This includes costs associated
with clearing existing duct (to allow cable to be installed), jointing distribution and spine cable (splicing). This PG captures costs
from the following areas/functions:

Pay costs associated with the installation of access fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding fibre to the access network.

Costs associated with installing fibre between the local exchange and a customer (direct feed) and between a local spine
fibre and a customer.

Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).
162
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

Depreciation costs from the following CoW – Local Fibre Distribution Cable (LFDC) and Local Fibre Spine Cable (LFSC).
Methodology
The costs are attributed on the same basis as the depreciation costs of this equipment (see PG111C Local Lines Fibre Cable
Capital); on the basis that maintenance activity is carried out to support the performance of the cable and can therefore be
regarded as an overhead of the capital/depreciation expenditure incurred.
Data Source/s
Circuits and Bearer Volumes etc. from CTCS at Period 6. Management believes this period to be reflective of the full year.
PG114L
Integrated Services Digital Network (ISDN30) Connections
Description
This Plant Group (PG) captures the cost associated with the provision, cessation and rearrangement of Integrated Services
Digital Network (ISDN30) circuits.
Types of costs include pay, stores issued and general equipment.
Types of work carried out includes testing, line up of circuits, updating records, labelling equipment for onward connection and
connecting transmission equipment at the specified bit rate. These costs can be identified directly from the primary General
Ledger (GL) posting, the classes of work (CoW).
Methodology
Allocates 100% to the ISDN30 Connection component CL163.
Data Source/s
Allocated directly, no data source/s required.
PG115C
Local Lines Access Radio Capital
Description
This Plant Group (PG) captures the costs associated with the construction, rearrangement and renewal of access radio systems.
These systems are used to deliver MegaStream and other non-voice services from the local exchange to customers’ premises.
Types of cost include depreciation, stores and pay costs.
Equipment used in the provision of this equipment includes:

Feeder cable between BT operational buildings and adjacent antenna.

Hand held mobile systems used in connection with the above work.

Testing equipment and line-of-sight surveying equipment.

Masts, aerials, transceivers and ancillary indoor and outdoor equipment for point-to-point and point to multi-point radio
systems.

Initial provision of spare plant.
Methodology
The Core Transmission Circuit costing System (CTCS) system is used to obtain circuit numbers from BT main systems. Period 6
data is used as this is representative of the full year.
This gives a number of each type of circuit by bandwidths which are converted into 2Mb equivalents, as 2Mb is the smallest unit.
These Circuits and Bearers are weighted by the cost of the bearer system used to deliver the circuit. The bearer weighting is
based on bearer cost.
Data Source/s
CTCS circuit numbers as at Period 6. Management believes this period to be reflective of the full year.
PG115M
Local Lines Access Radio Current
Description
This Plant Group (PG) captures the maintenance costs of the local line access radio.
163
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Types of cost include non-ETG pay and stores.
Equipment used in the provision of this service includes:

Feeder cable between BT operational building and adjacent antenna.

Hand held mobile systems used in connection with the above work.

Testing equipment and line-of-sight surveying equipment.

Masts, aerials, transceivers and ancillary indoor and outdoor equipment for point-to-point and point to multi-point radio
systems.

Initial provision of spare plant.
Methodology
The costs are attributed on the same basis as the depreciation costs of this equipment (see PG115C Local Lines Access Radio
Capital) on the basis that maintenance activity is carried out to support the performance of the radio equipment and can
therefore be regarded as an overhead of the capital/depreciation expenditure incurred.
Data Source/s
Core Transmission Circuit costing System (CTCS) circuit numbers at Period 6. Management believes this period to be reflective of
the full year.
PG117C
E Side Copper Capital
Description
This Plant Group (PG) captures the capital costs associated with E Side Copper. The Access Network for Regulatory Accounting
purposes is split between exchange side (E side) and distribution side (D side) copper cable. Types of cost include depreciation,
stores and pay costs.
E side cable is the cable that links the local exchange to the primary cross connection point. D side cable is the cable that links
the primary cross connection point to the Distribution Point (DP).
PCP
Exchange
Overhead DP
E Side
NTTP
D Side
Underground DP
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and the Core Transmission Circuit costing System
(CTCS) and weighted by the average number of pairs used to provide the circuit. Source Copper Wideband Serving Section
(CWSS) and Access Management Information System (AMIS) and pair costs. Source - Local Line Costing Study (LLCS).
Data Source/s
Period 6 data from Powerhouse, CTCS, CWSS, AMIS and LLCS. Management believe this period to be reflective of the full year.
PG117M
E Side Copper Current
Description
This Plant Group (PG) captures the current costs associated with E Side Copper. The Access Network for Regulatory Accounting
purposes is split between exchange side (E side) and distribution side (D side) copper cable. E side cable is the cable that links the
local exchange to the primary cross connection point. D side cable is the cable that links the primary cross connection point to
the Distribution Point (DP).
Types of cost include non-ETG pay and stores.
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and Core Transmission Circuit costing System
(CTCS) and weighted by fault rate and Calculated using total faults divided by volumes.
Data Source/s
164
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Period 6 data from Powerhouse, CTCS Management believe this period to be reflective of the full year.
PG118C
D Side Copper Capital
Description
This Plant Group (PG) captures the capital costs associated with D Side Copper. Types of cost include depreciation, stores and
pay costs.
The Access Network for Regulatory Accounting purposes is split between exchange side (E side) and distribution side (D side)
copper cable. E side cable links the local exchange to the primary cross connection point. D side cable links the primary cross
connection point to the Distribution Point (DP).
PCP
Exchange
Overhead DP
E Side
NTTP
D Side
Underground DP
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and Core Transmission Circuit costing System
(CTCS) and weighted by the average number of pairs used to provide the circuit - source Copper Wideband Serving Section
(CWSS) and Access Management Information System (AMIS) and pair cost - source - Local Line Costing Study (LLCS).
Data Source/s
Period 6 data from Powerhouse, CTCS, CWSS, AMIS and LLCS. Management believe this period to be reflective of the full year.
PG118M
D Side Copper Current
Description
This Plant Group (PG) captures the current costs associated with D Side Copper. The Access Network for Regulatory Accounting
purposes is split between exchange side (E side) and distribution side (D side) copper cable. E side cable is the cable that links the
local exchange to the primary cross connection point. D side cable is the cable that links the primary cross connection point to
the Distribution Point (DP).
Types of cost include non-ETG pay and stores.
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and Core Transmission Circuit costing System
(CTCS) and weighted by fault rate, and Calculated using total faults divided by volumes.
Data Source/s
Period 6 data from Powerhouse, CTCS. Management believe this period to be reflective of the full year.
PG119A
Telephony Over Passive Optical Network (TPON)
Description
This Plant Group (PG) captures costs associated with TPON.
TPON is a technology which uses fibre from the exchange to the street cabinet and copper from the cabinet to the customer. It is
now in the process of being removed as it does not support broadband.
Types of cost include pay (from maintenance of exchange electronics and customer sited electronics), planning and depreciation
costs from the provision, rearrangement, replacement and renewal of both exchange service modules and customer sited
modules.
TPON is used to deliver the following types of service:

Analogue Telephony Public Switched Telephone Network (PSTN).

Direct exchange line exchanges.

Direct Dialling In (DDI) Private Branch Exchange (PBX).
165
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

Integrated Services Digital Network 2 (ISDN2).

Managed 2048kbit/s (MegaStream, Integrated Services Digital Network (ISDN30)).

Featureline.
Methodology
Allocates 100% to the D Site Copper component CL173.
Data Source/s
TPON Element Manager database output is provided by the narrowband team for Period 6. Management believes this period to
be reflective of the full year.
PG120A
Payphone Line Cards
Description
This Plant Group (PG) captures the costs associated with the maintenance of the Payphone line cards.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Public Payphones Access component CL191.
Data Source/s
Allocated directly, no data sources required.
PG121M
Business Public Switched Telephone Network (PSTN) Maintenance
Description
This Plant Group (PG) captures the costs associated with the maintenance of Business PSTN, from the distribution point to the
customer's premises.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the Business PSTN drop Maintenance component CL180.
Data Source/s
Allocated directly, no data sources required.
PG122M
Residential Public Switched Telephone Network (PSTN) Maintenance
Description
This Plant Group (PG) captures costs associated with the maintenance of Residential PSTN, from the distribution point to the
customer’s premises. Types of cost include stores and pay costs.
The distribution point is the point near to a customer’s premises where the main cable from a Primary Cross connection point
(PCP) is split in order to provide service at one or more localised premises. It could be at the top of telegraph pole, under a
walkway or on the side of a building etc.
PCP boxes are the green metal cabinets you see by the side of the road. They are used by BT and the Cable companies to link
their customer's telephone lines to the local exchange.
Methodology
Allocates 100% to the Residential PSTN drop Maintenance component CL180.
Data Source/s
Allocated directly, no data sources required.
PG123M
Integrated Services Digital Network (ISDN2)/Highway maintenance
Description
166
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
This Plant Group (PG) captures the Profit and Loss (P&L) store and pay costs associated with the Maintenance of ISDN/Highway
Maintenance, from the distribution point to the customer's premises.
ISDN2 provides the customer with the equivalent of two digital telephone lines (known as channels) and is delivered over a
copper pair in the public network. ISDN works at high speeds with excellent clarity for speech and data applications.
Methodology
Allocated 100%to the ISDN/Highway drop Maintenance component CL181.
Data Source/s
Allocated directly, no data source/s required.
PG124A
Integrated Services Digital Network 30 Capital/Maintenance (ISDN30)
Description
This Plant Group (PG) captures the Capital costs of ISDN30.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100%, to the ISDN30 Line Cards component CL190.
Data Source/s
Allocated directly, no data source/s required.
PG127A
Public Switched Telephone Network (PSTN) Line Cards
Description
This Plant Group (PG) captures Profit and Loss (e.g. Depreciation, ETG and Non ETG Pay, and Non Pay) and Balance Sheet costs
associated with the provision of PSTN line cards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocated 100% to the PSTN Line Cards component CL183.
Data Source/s
Allocated directly, no data source/s required.
PG128A
Integrated Services Digital Network (ISDN2) Line Cards
Description
This Plant Group (PG) captures the capital costs associated with ISDN2 line cards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100% to the ISDN2 Line Cards component CL184.
Data Source/s
Allocated directly, no data source/s required.
PG129A
Pair Gain
Description
This Plant Group (PG) contains the cost of provisioning, rearranging and recovering pair gain electronics in the access network.
Pair gain is a piece of equipment which provides to Public Switched Telephone Network (PSTN) lines over one pair of copper
wires.
167
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100% to the Pair Gain component CL185.
Data Source/s
Allocated directly, no data source/s required.
PG130A
Local Loop Unbundling (LLU) Tie Cables
Description
This Plant Group (PG) captures costs of Tie cables for LLU. These costs are assigned to the relevant LLU.
Types of cost include depreciation, stores and pay costs.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the opening up of
BT's copper network to Other Communication Providers (OCPs). This is delivered by the following two methods:
Co-location/Co-Mingling
BT provides a room in an exchange for an OCP and their equipment and arranges for connection of the room to the BT Main
Distribution Frame (MDF) via a tie cable. The OCP has to order 'ties' in items of 100 pair cables.
Co-Mingling is the provision of floor space without any walls separating it from BT equipment. In this instance the OCP connects
the Digital Subscriber Line Access Multiplexer (DSLAMS) in the space provided to their equipment via a BT egress circuit/BT
Retail circuit.
DSLAMS is a device which takes number of Asymmetric Digital Subscriber Line (ADSL) subscriber lines and concentrates these
for onward connection to the core network.
Distance Location
The OCP has accommodation outside the exchange. The OCP can order a BT provided cable or can provide one for them and
hand over a tail for BT to connect in the exchange onto the MDF.
Methodology
Apportions to CL133 – Local Loop Unbundling and CL170 – Internal Tie cables based on tie cable volumes supplied by the
Openreach product reporting and analysis team LLU volume report.
Data Source/s
Local Loop Unbundling Management system (LLU MS) and Atlantis Report.
PG131L
Liquid Funds Non Retail 2010
Description
This Plant Group (PG) captures the costs of Liquid Fund transactions, which are ultimately apportioned to the Wholesale and
Access Markets.
Methodology
This Plant Group apportions to a range of regulated and non-regulated Services based on the individual cash flow of the
underlying components associated with the Services. Cash flow, for regulatory purposes, has been defined as Operating Profit,
less Depreciation and adds Capital Additions.
Data Source/s
ASPIRE
PG132B
Local Loop Unbundling (LLU) Hosting Rental - Openreach
Description
This Plant Group (PG) captures the cost of LLU Hosting Rental.
Hosting Rental is the rental of a site for hosting LLU equipment.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the opening up of
168
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
BT's copper network to Other Communications Provider (OCPs). This is delivered by the following two methods:
Co-Location/Co-Mingling
BT provides a room in an exchange for an OCP and their equipment and arranges for connection of the room to the BT Main
Distribution Frame (MDF) via a tie cable. The OCP has to order 'ties' in units of 100 pair cables. A standard hostel room which is
shared with other LLU operators.
Co-Mingling is the provision of floor space without any walls separating it from BT equipment. In this instance the OCP connects
the Digital Subscriber Line Access Multiplexer (DSLAMS) in the space provided to their equipment via a BT egress circuit/BT
Retail circuit.
DSLAMS is a device which takes number of Asymmetric Digital Subscriber Line (ADSL) subscriber lines and concentrates these
for onward connection to the core network.
Distance Location
The OCP has accommodation outside the exchange. The OCP can order a BT provided cable or provide one for them and hand
over a tail for BT to connect in the exchange onto the MDF.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the LLU Hostel Rentals component CL132.
Data Source/s
Allocated directly, no data sources required.
PG132N
Local Loop Unbundling (LLU) Hosting Rental - Wholesale
Description
This Plant Group (PG) captures the cost of LLU Hosting Rental.
Hosting Rental is the rental of a site for hosting LLU equipment.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the opening up of
BT's copper network to Other Communications Provider (OCPs). This is delivered by the following two methods:

Co-Location/Co-Mingling
BT provides a room in an exchange for an OCP and their equipment and arranges for connection of the room to the BT Main
Distribution Frame (MDF) via a tie cable. The OCP has to order 'ties' in units of 100 pair cables. A standard hostel room which is
shared with other LLU operators.
Co-Mingling is the provision of floor space without any walls separating it from BT equipment. In this instance the OCP connects
the Digital Subscriber Line Access Multiplexer (DSLAMS) in the space provided to their equipment via a BT egress circuit/BT
Retail circuit.
DSLAMS is a device which takes number of Asymmetric Digital Subscriber Line (ADSL) subscriber lines and concentrates these
for onward connection to the core network.

Distance Location
The OCP has accommodation outside the exchange. The OCP can order a BT provided cable or provide one for them and hand
over a tail for BT to connect in the exchange onto the MDF. Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the LLU Hostel Rentals traded component CT134.
Data Source/s
Allocated directly, no data sources required.
PG136A
Local Loop Unbundling (LLU) Surveys
Description
This Plant Group (PG) captures the costs of surveys for LLU.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the opening up of
169
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
BT's copper network to Other Communications Provider (OCPs).
Methodology
Allocated 100% to the LLU Room Build component CL131.
Data Source/s
Allocated directly, no data sources required.
PG140A
Routing and Records
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet cost of
Routing and Records work for provision of Public Switched Telephone Network (PSTN)/Integrated Services Digital Network
(ISDN) lines, Local Loop Unbundling (LLU) and Private Circuits.
Methodology
This PG is apportioned using New Supply connection line volumes from NCC report. The split is based upon connection volumes
which are factored by the number of channels per circuit, the number of pairs utilised per circuit, percentage of the systems on
Copper Pairs and the relative time taken to route the circuit.
Data Source/s
NCC Report volumes for Period 12 (ASPIRE).
ISDN30 fill factor (Access Rental Model).
CWSS volumes (Report from Robin Reardon).
PG142A
Main Distribution Frame (MDF) Hardware Jumpering
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation, Stores) and Balance Sheet (Fixed Asset) costs associated
with jumpering activities on the Main Distribution Frame (MDF) connecting the Exchange switch equipment to the Exchange
side (E-Side) cable.
An MDF jumper is a copper connection that provides a flexible connection between two terminal ends, commonly used to
connect the Line side to the Exchange side of the MDF.
Methodology
The PG is allocated based on Connection volumes in the year (quarterly). The PG exhausts to only two components at present,
with the vast majority going to CL161 MDF Hardware jumpering. A small portion (0.14%) is allocated to CO291 OR Network
Features (Internal), and this proportion was held constant from 2004/05.
Data Source/s
Powerhouse (latest quarter) for connection volumes.
PG143A
Software jumpering
Description
This Plant Group (PG) apportions the Selling General and Administration (SG & A) part of the Public to Switched Telephone
Network (PSTN) Provision Centres, where manual intervention is required due to a failure in the automated installation process
for the provision of PSTN services.
An electronic jumper, sometimes referred to as a software jumper makes the connection between two termination ends, via a
remote computer terminal, or the provision of a customer requested facility such as star services etc. In this specific case it would
be work going through a system like the number allocation system and exchange switches i.e. allocate and connect a phone
number to a specific customer line.
Methodology
The base is allocated across services (and thereby to the relevant feed components) by reference to their connection volumes.
There is no weighting placed on the respective volumes. This base was frozen this year and prior year data drives the allocation.
Data Source/s
170
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PSTN Resource Centre. An automated mail with an excel spreadsheet attached containing a summary of the jumpering tasks
carried out in the preceding week is forwarded to the analyst that is responsible for the base.
Period end volumes (P6 for half year and P12 for full year).
PG145B
Asymmetric Digital Subscriber (ADSL) Connections
Description
This Plant Group (PG) captures the costs associated with the Provision and Installation of ADSL. ADSL is the most common way
in which Broadband is delivered within the UK.
The classes of work (CoW) associated with this PG is Circuit Provision ADSL. This CoW covers all provision activities in serving
exchanges and customer site, including end to end testing.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the ADSL Connections component CO118.
Data Source/s
Allocated directly, no data sources required.
PG145N
ADSL Connections (Wholesale)
Description
This Plant Group (PG) captures the costs associated with the Provision and Installation costs for Asymmetric Digital Subscriber
Line (ADSL).
The classes of work (CoW) associated with this Plant Group are Internally Developed Software (COMPS) and NOP (Network
Operations Platform) Circuit Provision - ADSL. These CoW’s cover all provision and software activities in serving exchanges and
customer site, including end-to-end testing.
Types of cost include stores, software and pay costs.
Methodology
Allocates 100% to the ADSL Connections component CO118.
Data Source/s
Allocated directly, no data sources required.
PG147B
Symmetric Digital Subscriber Line (SDSL) Connections
Description
This base apportions Profit and Loss (stores and current non-ETG pay) associated with SDSL Connections.
SDSL provides the same bandwidth in both directions, unlike Asymmetric Digital Subscriber Line (ADSL). This means that SDSL is
better suited to situations and applications that need a large amount of data to be sent and received such as audio conferencing,
video conferencing, etc.
Methodology
Allocates 100% to the SDSL Connections component CO136.
Data Source/s
Allocated directly, no data sources required.
PG147N
Symmetric Digital Subscriber Line (SDSL) Connections (Wholesale)
Description
SDSL provides the same bandwidth in both directions, unlike Asymmetric Digital Subscriber Line (ADSL). This means that SDSL is
better suited to situations and applications that need a large amount of data to be sent and received - such as audio
conferencing, video conferencing, etc.
171
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the SDSL Connections component CO136.
Data Source/s
Allocated directly, no data sources required.
PG149A
Drop wire
Description
Drop wires are wires connecting the Distribution Point to the customer’s premises.
This Plant Group (PG) captures the Drop wire costs associated with specific Public to Switched Telephone Network (PSTN) based
Products.
Methodology
Allocated directly 100% to the Drop wire component CL178.
Data Source/s
Allocated directly, no data source/s required.
PG150A
Integrated Services Digital Network 2 (ISDN2) Specific
Description
This Plant Group (PG) captures the Network Terminal Equipment (NTE) costs for ISDN2 rentals. It includes Network Terminal
Equipment (NTE) and line cards but excludes drop wire. Drop wires are wires connecting the Distribution Point to the customer’s
premises.
ISDN2 is a low-band digital service that supports voice, data and video.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated directly to 100% to the ISDN2 specific component CL186.
Data Source/s
Allocated directly, no data source/s required.
PG151B
Test Access Management Systems (TAMS) Openreach
Description
This Plant Group (PG) contains the Test Access Management Systems (TAMS) and EVOTAMs costs.
These are used to provide remote access facilities on Metallic Path Facility (MPF), Shared Metallic Path Facility (SMPF),
Wholesale Line Rental (WLR) and IPstream circuits for testing towards the customer and into the network. Installed between the
Main Distribution Frame (MDF) and the Digital Subscriber Line Access Multiplexer (DSLAM).
Methodology
Allocated directly to the Local Loop Unbundling (LLU) Line Testing component CF187 and EVOTAM Testing Systems component
CF189 based on the latest available LOP list depreciation figures. It is possible to determine how much depreciation is applicable
to the two components based on the Asset Policy Code (APC).
Data Source/s
Latest available Life of Plant (LOP) list.
PG151N
Test Access Management System (TAMS)
Description
This Plant Group (PG) captures the TAMS wholesale costs. Types of cost include depreciation, stores and pay costs. These are
used to provide remote access facilities on broadband circuits for testing towards the customer and into the network. Installed
172
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
between the Main Distribution Frame (MDF) and the Digital Subscriber Line Access Multiplexer (DSLAM).
Methodology
Allocates to CR187 - Broadband line testing systems and CT134 LLU hostel rentals power and ventilation based on depreciation
within classes of work (CoW) WTMDF (Wholesale Test Equipment Main Distribution Frames). Depreciation on policy code WMDF
is allocated to CT134, the remainder is allocated to CR187.
Data Source/s
Latest available Life of Plant (LOP) list.
PG152B
Digital Subscriber Lines (DSL) Rentals (Openreach)
Description
This Plant Group (PG) contains the values relating to the equipment that supports the DSL product rentals. DSL is a family of
technologies that provide digital data transmission over the wires of a local telephone network. These lines that provide faster
Internet access to the customer and also allows telephone calls to be made at the same time as Internet usage.
This PG contains all the balance sheet values relating to the equipment that supports the DSL product rentals including Digital
Subscriber Line Access Multiplexer (DSLAM) equipment. This PG also contains the depreciation and maintenance costs on this
equipment as well as overhead type costs such as the accommodation to house equipment etc.
Methodology
Allocated 100% to the DSL rentals- specific component CO188.
CO188 onward allocates to Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL) services. It
does not support Local Loop Unbundling (LLU) and Shared Metallic Path Facility (SMPF) as a Service Provider would provide
these activities themselves.
Data Source/s
Allocated directly, no data source/s required.
PG152N
Digital Subscriber Lines (DSL) Rentals Overheads
Description
DSL are a family of technologies that provide digital data transmission over the wires of a local telephone network. These lines
provide faster Internet access to the customer and also allow telephone calls to be made at the same time as Internet usage. This
PG contains all the Balance Sheet values relating to the equipment that supports the DSL Product rentals except Digital
Subscriber Line Access Multiplexer (DSLAM) equipment itself. This PG also contains the maintenance costs for this equipment as
well as overhead type costs such as the accommodation to house equipment etc.
Methodology
Allocated 100% to the DSL rentals- specific component CR188. CR188 onward allocates to Asymmetric Digital Subscriber Line
(ADSL). It does not support Local Loop Unbundling (LLU) and Shared Metallic Path Facility (SMPF) as a Service Provider would
provide these activities themselves.
Data Source/s
Allocated directly, no data source/s required.
PG153N
Digital Subscriber Lines (DSL) Rentals Depreciation
Description
DSL are a family of technologies that provide digital data transmission over the wires of a local telephone network. These lines
provide faster Internet access to the customer and also allow telephone calls to be made at the same time as Internet usage. This
PG contains the Balance Sheet values relating to the Digital Subscriber Line Access Multiplexer (DSLAM) equipment. It does not
include other overhead related balance sheet items such as accommodation (This is included in PG152N). This PG also contains
the depreciation cost relating the DSL equipment. It does not include the maintenance costs on this equipment or overhead
type costs such as the accommodation to house equipment etc. (This is included in PG152N).
Methodology
Allocated 100% to a new the DSL rentals depreciation - specific component CR189. CR189 onward allocates to Asymmetric
Digital Subscriber Line (ADSL) services. It does not support Local Loop Unbundling (LLU) and Shared Metallic Path Facility
173
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
(SMPF) as a Service Provider would provide these activities themselves.
Data Source/s
Allocated directly, no data source/s required.
PG170B
Synchronous Digital Hierarchy (SDH) Bearer Length – Backhaul fibre
Description
This Plant Group (PG) captures the depreciation costs and asset values of the length elements of SDH bearers.
Bearers provide the transmission capability for the circuits that support BT’s products. A bearer consists of electronics located at
intermediate nodes, together with a fibre cable and the duct through which it passes (see Bearer Diagram refer to Core
Transmission Circuit costing System (CTCS) in section 9). A fibre cable between two nodes can support many bearers (a bearer
generally uses a pair of fibres whereas a fibre cable can have up to 240 fibres). The length element of a bearer relates to the fibre
cable, duct and the repeating equipment between the nodes.
A bearer forms part of the network which is in turn split into several tiers in order to address the different needs of different
parts of the network (see Network Overview)

Tier 0 is the highest level in the network, intended to handle international traffic.

Tier 1 is the long haul intercity or backbone network. It consists of 4/1 and 4/4 cross connect switches.

A cell or Supercell is an additional ring between tiers 1 and 2.

Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two separate
Tier 1 nodes.

Tier 3 is the level used for Booster schemes.

Tier 4 is the access network for SDH Customers.
Marconi Synchronous Hierarchy (MSH) is the high capacity platform to cater for traffic at 140mb and above.
SDH bearers have various transmission rates as indicated by the Synchronous Transport Module (STM):

STM1 – 155Mbit/s.

STM4 – 622Mbit/s.

STM16 – 2.48Gbit/s.

STM64 – 10Gbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network components
(circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an analysis of the CTCS
database, which extracts information from engineering databases. It provides details of the relationships between bearers and
circuits, specifically:

The bearer equipment that a circuit ‘Hits’ along its route.

The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. For example a 155Mbit/s SDH bearer can support 63 2Mbit/s circuits, three
34Mbit/s circuits or a single 155Mbit/s circuit. The cost of an individual bearer is therefore apportioned across all the segments
of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the apportioned costs of all of the
bearers over which the circuit is routed through the core network.
For Ethernet circuits the cable volumes are taken from INS. Ethernet circuits have one circuit per cable and therefore allowing
the length/volume of cables to be used as the bearer volume/length.
Factored Volumes Calculation
The apportionment of cost is based on a factored volume which in turn is calculated by factoring the raw volume figure by a
usage factor (with the exception of Ethernet):

Raw Volume - The length related asset costs of bearers (e.g. depreciation of fibre cable and duct) are apportioned on a raw
volume based on the length of the circuit segment carried by a bearer.
174
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

Usage Factor - This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit
would have a usage factor of one 63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a
third.
Data Source/s
CTCS and INS (for Ethernet) data for Period 6. Management believes this Period is reflective of the full year.
PG197A
Fibre To The Cabinet (FTTC) Service Delivery and Development
Description
This Plant Group (PG) captures the costs associated with the Openreach (OR) Next Generation Access (NGA) Fibre to the Cabinet
(FTTC) product.
These costs are identified:

For Service delivery, from the General Ledger (GL) posting, the classes of work (CoW) and OR Finance records which
capture the NGA-specific nature of these costs.

For Development, via a transfer charge made from BT Innovate & Design (BTID) to OR.
Methodology
Allocates 100% to the NGA FTTC component CL197 (FTTC Service Delivery & Development).
Data Source/s
Allocated directly, no data source/s required.
PG198A
Fibre To The Premises (FTTP) Development
Description
This Plant Group (PG) captures the costs associated with the Openreach (OR) Next Generation Access (NGA) Fibre to the
Premises (FTTP) product currently under development.
These costs are identified via a transfer charge made from BT Innovate & Design (BTID) to OR.
Methodology
Allocates 100% to the NGA FTTP component CL198 (FTTP Development).
Data Source/s
Allocated directly, no data source/s required.
PG213C
Local Exchanges UXD Capital
Description
This Plant Group (PG) captures the cost of constructing, extending and rearranging local UXD5 Exchanges. Types of cost include
pay, depreciation and indirect costs.
UXD5 exchanges are deployed in rural areas and cater for about 460 Public Switched Telephone Network (PSTN) customers
each. They are in effect mini Local Exchanges (LE).
Methodology
A Modern Equivalent Asset determination using System X and AXE10 equipment is produced. Unit Exchange Digital V5 (UXD5)
volumes are taken from EXPRES and the costs of the building blocks for the equivalent System X and AXE10 exchanges are
calculated. To this the manufacturers’ supplied matrices (a mapping of building blocks to Call Set-Up, Duration, Access and
Common) elements are applied. This is what happens in the LDX and LYX apportionment process. The results from both system
types are then weighted, using the volume of fitted lines to System X and AXE10 Local Exchanges in the network.
Data Source/s
System X, AXE10 and UXD5 Local Exchange volumes in the network from the EXPRES system.
PG213M
Local Exchanges UXD5 Current
Description
175
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
This Plant Group (PG) captures the maintenance Profit and Loss (Pay, Non-Pay, Materials etc.) costs for the Calls related element
of UXD5 exchange switching.
Methodology
Apportions to the call related components based on the overall capital apportionment of UXD5 Exchange and Concentrator
units using the PG to component apportionment in PG213C.
Data Source/s
Capital Apportionment Model.
PG216C
Local Exchanges General Switchboards Capital
Description
This Plant Group (PG) captures the depreciation costs of switching equipment used to support Operator Assistance (OA) calls.
Methodology
This is achieved through a Period 12 Operfile, this is a spreadsheet used to derive apportionment information for Operator and
Directory Assistance costs. The file is a summary of information from a variety of other data sources and is updated monthly on a
cumulative basis
Attribution is carried out as follows:
Call duration information from the central data store (CDS) and Call Statistics Centralisation System (CSCS) is summarised on the
basis of call types. A link is then made between the nature of the call and the type of equipment required to carry it. As this is a
capital base, the initial summary is then allocated to components on the basis of depreciation charges per switch type.
Depreciation is extracted from the Fixed Asset Register.
The Operator Assistance costs are attributed to the following components pro-rata to the call minute volumes:

Inland and International OA CO911 and CO912

Emergency OA 999 CO919

OA non- chargeable CO941

Emergency OA 999 non-chargeable CO942

OA PSCC (Public Payphone Operator) non chargeable CO943
Data Source/s
Inland and International Directory Assistance (DA).
CDS.
CSCS and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA).
Call Centre Management Information System (CCMIS).
CSCS (for Retail chargeable).
6A Report (for Wholesale Chargeable).
Fixed Asset download by Accounting Policy Code (APC) requested from Steria.
Information from Steria - from the Lucent Switch billing system – (this is incorporated into the CDS file that is produced monthly
and used to populate the Operfile).
PG217E
LE Frames Capital (Openreach)
Description
This Plant Group (PG) captures the cost of provision, extension, upgrade, replacement, re-arrangement and recovery of Main
Distribution Frames (MDFs) connected with Inland (BTUK) telephone exchanges.
Types of cost include depreciation and Non-ETG pay costs.
MDFs are those distribution frames providing direct interface with external circuits terminations (customer or other exchanges).
176
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System (CTCS))
weighted by fault rate (calculated using total faults divided by volumes).
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
PG217F
LE Frames Current (Openreach)
Description
This Plant Group (PG) captures the maintenance cost of Main Distribution Frames (MDFs) connected with Inland (BTUK)
telephone exchanges. MDFs are those distribution frames providing direct interface with external circuits terminations
(customer or other exchanges).
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System (CTCS))
weighted by fault rate (calculated using total faults divided by volumes).
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
PG217Q
LE Frames Capital (Wholesale)
Description
This Plant Group (PG) captures the cost of provision, extension, upgrade, replacement, re-arrangement and recovery of Main
Distribution Frames (MDFs) connected with Inland (BTUK) telephone exchanges. MDFs are those distribution frames providing
direct interface with external circuits terminations (customer or other exchanges).
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System (CTCS))
weighted by fault rate (calculated using total faults divided by volumes).
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
PG217R
LE Frames Current (Wholesale)
Description
This Plant Group (PG) captures the maintenance cost of Main Distribution Frames (MDFs) connected with Inland (BTUK)
telephone exchanges. MDFs are those distribution frames providing direct interface with external circuits terminations
(customer or other exchanges).
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System (CTCS))
weighted by fault rate (calculated using total faults divided by volumes).
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
PG219M
Local exchanges operation and surveillance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non-Pay etc.) costs of the routine operational review and monitoring of
local and main exchanges.
Methodology
At PDTOSD level the costs are distributed to the PG based on a survey of time spent by operations staff. Access related items are
diverted into PG124A, PG128A, PG127A and PG120A.
177
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Further apportionment through to the components for the network related elements is based on the overall capital
apportionment from PG to component for the platforms identified at the PDT stage.
Data Source/s
Sample activity survey of time spent by operations staff on classes of work (CoW) OSD (Operation and Surveillance Duty).
EXPRES system for Local Exchange weightings and Capital Apportionment Model.
PG227A
Main Exchanges Advanced Service Units (ASUs)
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay, Depreciation etc.) cost of construction, installation, rearrangement, recovery and renewal and maintenance of Advance Service Units (ASUs) equipment and Call Centre DMS100s to
provide the platform to support the provision of the Virtual Private Network Service (VPNS). The VPNS Services being Virtual
Private Network (VPN) and Virtual Private Services (VPS). This PG also captures the maintenance costs of the above types of
equipment.
Methodology
Allocated 100% to the ASU switches component CO227.
Data Source/s
Allocated directly, no data source/s required.
PG228A
Signalling Transfer Point (STP) and Edge Link Monitors
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of BT’s signalling
network, signalling network management system and interconnect equipment. For example STP and Signalling Point Relay
(SPR) switches, Signalling Traffic Management (STMS) equipment, link monitors and associated equipment (core and edge), on
site spares, initial databuild associated with switches, testing apparatus and initial provision of spares held for changing
purposes.
Methodology
Allocated 100% to the STP component CO270.
Data Source/s
Allocated directly, no data source/s required.
PG229A
Signalling Point Relay (SPR) and Core Link Monitors
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of the following
signalling equipment:
SPR switches and core link monitors, both with associated on site spares. It also captures the costs of the initial databuild
associated with the switches.
The core link monitors and SPR switches are both items of signalling equipment used to interface Public Switched Telephone
Network (PSTN) switches with the Intelligent Network (IN)/Common Intelligent Service layer (CISL). The former provides a
signalling assurance function whilst the latter concentrates signalling from the PSTN switches onto the Intelligent Network/CISL.
Methodology
Costs are allocated to the IN components (CISL and ICM) based on latest available period year to data CISL and PSTN internal
and external call volumes.
The CISL volumes provide the split between select services and the IN/CISL Services whilst the PSTN call volumes are used to
provide the split between the two select services components.
Data Source/s
Cumulative CISL platform volumes and Factored volumes report via ASPIRE, to a period relative to the apportionment base,
reflecting year end.
178
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG240A
Public Switched Telephone Network (PSTN)/Integrated Services Digital Network (ISDN) Line Test
Description
This Plant Group (PG) captures the costs associated with the equipment that supports line testing of Public Switched Telephone
Network (PSTN) and ISDN circuits.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100% to the PSTN/ISDN line test equipment component CL177.
Data Source/s
Allocated directly no data source/s required.
PG241A
Repair Handling Duty
Description
This Plant Group (PG) captures the costs associated with time spent by Repair Handling Duty staff on Network Operations Items
(NOUs), Remote Operations Items (ROU) and exchange line testing, report raising and records work.
Types of cost include current pay and Gross Book Value (GBV) Fixed Assets.
Methodology
The PG is allocated based upon circuit volumes from Openreach management accounts to two Public Switched Telephone
Network (PSTN) components and one Integrated Services Digital Network (ISDN) component.
Data Source/s
Openreach Management Accounts.
PG249C
Main Digital Exchange Digital Line Termination (DLT) Capital
Description
This Plant Group (PG) captures the capital and depreciation costs of the Main Digital Exchange DLT equipment which flow from
classes of work (CoW) MDX via PDTMXD.
The DLT is part of the Main Exchange System X Processor unit and NGS (Next Generation Switch) that also comprises a switch
block and processor and signalling functional groups, and is used for call setup and call duration.
Methodology
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a number of steps.
Main exchanges come in two types, an older System X unit and a newer NGS. System X units are not available and are being
replaced by NGS units. A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to
generate costs for both types of switch. The engineering model analyses the NGS into its constituent elements: (such as AXD,
Regional Processing Group 2 (RPG2) and Group Switch Services (GSS) etc.). The model is the same used to derive the PDTMXD
base and the PG to component derivation takes place as part of the same process. Account is taken of the additional capacity
required to accommodate the remaining system X working capacity which is to be consolidated on to the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109) between BT and
Ericsson. With information from the manufacturers we are able to determine the call setup and duration split for each element.
The total cost of all the elements of all the units in the network is summed and then these costs are analysed into setup and
duration splits. Common costs can be treated by apportioning a fraction to set-up and duration pro-rata on the already existing
split however this makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup CO220 and main exchange call duration CO221.
The overall process is illustrated below:
179
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Switch Element
£/%
1
Volume (from Network Records System
(NRS) and the Switch Deployment Plan)
Unit cost (from Next Generation Switch
NGS) contact)
Total Cost
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Y
Duration
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG249C_v1
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs.
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared from a excel cost model used to drive LRIC inputs. The relative costs of call setup and call duration are
expressed as percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution
to components.
This is illustrated below:

Percentage of processor costs relating to call setup = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the DLT cost relating to Other Communications Provider (OCP) has also to be determined. Mid-year port information
is downloaded from Network Recording System (NRS). This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed and what type of
switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Connections component. The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call set up and main exchange call duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG249M
Main Digital Exchange Digital Line Termination (DLT) Maintenance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay etc.) maintenance costs of the Main Digital Exchange DLT
equipment, which flow from classes of work (CoW) MDX, via PDTMXD.
The apportionment for maintenance uses the capital base, explained below, to exhaust the costs to components, however there
is one difference. The Interconnect component targeted in the case of maintenance is CR470.
The DLT is part of the Main Exchange System X Processor and NGS (Next Generation Switch) unit that also comprises a switch
block and processor and signalling functional groups, and is used for call setup and call duration.
Methodologies
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a number of steps.
Main exchanges come in two types, an older System X unit and a newer NGS. System X units are not available and are being
replaced by NGS units. A Current Costs Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to
180
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
generate costs for both types of switch. The engineering model analyses the NGS into its constituent elements (such as AXD,
Regional Processing Group 2 (RPG2) and Global Satellite Services (GSS) etc.). The model is the same that is used to derive the
PDTMXD base and the PG to component derivation takes place as part of the same process. Account is taken of the additional
capacity required to accommodate the remaining System X working capacity which is to be consolidated onto the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109) between BT and
Ericsson. With information from the manufacturers we have been able to determine the call setup and duration split for each
element. The total cost of all the elements of all the units in the network is summed and then these costs are analysed into setup
and duration splits. Common costs can be treated by apportioning a portion to setup and duration pro-rata on the already
existing split however this makes no difference to the overall result and common costs is ignored.
Call setup costs are driven to main exchange call setup CO220 and main exchange call duration CO221.
The overall process is illustrated below :
Switch Element
£/%
Volume (from Network Records System
(NRS) and the Switch Deployment Plan)
Unit cost (from Next Generation Switch
NGS) contact)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Y
Duration
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG249M_v1
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs.
Loaded cost of Call set-up is
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is
Q + [R x Q/ (P+Q)] = N.
This analysis is prepared from a excel cost model used to drive LRIC inputs. The relative costs of call setup and call duration are
therefore expressed as percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the
attribution to components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the Digital Line Termination (DLT) cost relating to Other Communications Providers (OCPs) has also to be determined.
Mid-year port information is downloaded from Network Recording System (NRS). This provides the origin and destination of
each 2Mbit/s port on every Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are
pointed and what type of switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Connections component. The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call setup and main exchange call duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG252B
Openreach Elimination
181
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Description
This Plant Group (PG) captures the “variance” between the calculated notional revenues associated with Other Communication
Providers (OCPs), and the actual revenues received from OCPs, relating to Openreach activity.
Methodology
Costs, revenues and debtors from this Plant Group (PG) are apportioned 100% to the component CZ252B Openreach Residual
Elimination.
Data Source/s
Allocated directly, no data source/s required.
PG252N
Wholesale Elimination
Description
This Plant Group (PG) captures the “variance” between the calculated notional revenues associated with Other Communication
Providers (OCPs), and the actual revenues received from OCPs relating to Wholesale activity.
Methodology
Costs, revenues and debtors from this Plant Group (PG) are apportioned 100% to the component CZ252N Wholesale Residual
Elimination.
Data Source/s
Allocated directly, no data source/s required.
PG254A
Main Digital Exchange - Intelligent Access and Messaging
Description
This Plant Group (PG) captures the depreciation costs of Main Digital exchange intelligent access and messaging equipment to
calls components only.
Methodology
Apportionment to the Call Set-Up components for Local and Main Exchanges is based on the relative number of Local
Exchanges and Main Exchanges in the network sourced from the EXPRES system. Data amendments are more numerous and
more time consuming for Main Exchanges than for Local Exchanges, so each Main Exchange is weighted by a factor determined
by a survey of time spent on Data Amendments. This factor is determined on the basis of the experience and expertise of the
data amendment team, being a management estimate. This gives an estimate of the time and hence relative cost for data
amendments on Local relative to Main Exchanges.
An apportionment to CO260 Cambridge Voice Intelligent Peripherals is made on the basis of minutes for CNA (Change Number
Announcement) relative to minutes for the Televote service and other messaging applications.
Data Source/s
Exchange Planning and Review System (EXPRES).
Data Amendments survey.
Minutes Data from Recorded Information Distribution Equipment (RIDE) - Statistics Data Warehouse (SDW).
PG255B
Main Digital Switch Block
Description
This Plant Group (PG) captures the capital depreciation and maintenance costs of the Main Digital Exchange Switch Block
equipment, which flow from classes of work (CoW) MDX, via PDTMXD (see Base Methodology Dictionary section 4).
The Switch Block is part of the Main Exchange System X Processor and NGS (Next Generation Switch) unit that also comprises of
a Processor and Digital Line Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X units are not
available and are being replaced by NGS units. A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA)
182
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
of the NGS are used to generate costs for both types of switch. The engineering model analyses the NGS into its constituent
elements (such as such as AXD, Regional Processing Group 2 (RPG2) and Global Satellite Services (GSS) etc.). The model is the
same that is used to derive the PDTMXD base and the PG to component derivation takes place as part of the same process.
Account is taken of the additional capacity required to accommodate the remaining System X working capacity which is to be
consolidated onto the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109) between BT and
Ericsson. With information from the manufacturers we have been able to determine the call setup and duration split for each
element. The total cost of all the elements of all the units in the network is summed and then these costs are analysed into setup
and duration splits. Common costs can be treated by apportioning a portion to setup and duration pro-rata on the already
existing split however this makes no difference to the overall result and common costs is ignored.
Call setup costs are driven to main exchange call set up CO220 and main exchange call duration CO221.
The overall process is illustrated below:
Switch Element
£/%
Volume (from Network Records System
(NRS) and the Switch Deployment Plan)
Unit cost (from Next Generation Switch
NGS) contact)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Y
Duration
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG255B_v1
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs.
Loaded cost of call setup is
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is
Q + [R x Q/ (P+Q)] = N.
This analysis is prepared from a excel cost model used to drive LRIC inputs. The relative costs of call setup and call duration are
expressed as percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution
to components.
This is illustrated below:

Percentage of processor costs relating to call setup = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
PG257C
Main Digital Processor Capital
Description
This Plant Group (PG) captures the capital and depreciation costs of the Main Digital Exchange Processor and Signalling
equipment, which flow from classes of work (CoW) MDX via PDTMXD.
The processor is part of the Main Exchange System X Processor unit that also comprises a Switch Block and Digital Line
Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
183
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X units are not
available and are being replaced by NGS units. A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA)
of the NGS are used to generate costs for both types of switch. The engineering model analyses the NGS into its constituent
elements (such as such as AXD, Regional Processing Group 2 (RPG2) and Global Satellite Services (GSS) etc.). The model is the
same that is used to derive the PDTMXD base and the PG to component derivation takes place as part of the same process.
Account is taken of the additional capacity required to accommodate the remaining System X working capacity which is to be
consolidated onto the NGS system.
The provisioning rules that govern the Next Generation Switch (NGS) are given in the pricing section of the NGS contract (no.
658109) between BT and Ericsson. With information from the manufacturers we have been able to determine the call setup and
duration split for each element. The total cost of all the elements of all the units in the network is summed and then these costs
are analysed into setup and duration splits. Common costs can be treated by apportioning this amount to setup and duration
pro-rata on the already existing split however this makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup CO220 and main exchange call duration CO221.
The overall process is illustrated below:
Switch Element
£/%
Volume (from Network Records System
(NRS) and the Switch Deployment Plan)
Unit cost (from Next Generation Switch
NGS) contact)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Y
Duration
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG257C_v1
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is
Q + [R x Q/ (P+Q)] = N.
This analysis is prepared from a excel cost model used to drive LRIC inputs. The relative costs of call setup and call duration are
expressed as percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution
to components.
This is illustrated below:

Percentage of processor costs relating to call setup = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the signalling cost relating to Other Communications Providers (OCPs) has also to be determined.
The signalling usage and cost relating to OCPs has yet to be determined. Information from Network Recording System (NRS) is
downloaded showing destinations including those relevant to OCPs can be identified and compared to the total.
Signalling costs form part of the PG total costs but the separate signalling cost is clearly identifiable so on this basis an
apportionment is made from this PG to CR470 Interconnect Connections Capital. The residual amount is then re-based so that
the new total equals 100% and pointed to main exchange call setup and main exchange call duration.
Data Source/s
184
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
NRS.
Exchange Planning and Review System (EXPRES).
PG257M
Main Digital Processor Maintenance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay etc.) maintenance costs of the main digital exchange processor
and signalling equipment, which flow from classes of work (CoW) MDX, via PDTMXD.
The apportionment for maintenance uses the capital base, explained below, to exhaust the costs to components, however there
is one difference. The Interconnect component targeted in the case of maintenance is CR470.
The processor is part of the main exchange system X processor unit that also comprises a switch block and Digital Line
Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
The costs are identified by the classes of work (CoW) to PG exhaustion process. The attribution of main exchange costs follows a
number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X units are not
available and are being replaced by NGS units. A Current Costs Accounting (CCA) approach and a Modern Equivalent Asset (MEA)
of the NGS are used to generate costs for both types of switch. The engineering model analyses the NGS into its constituent
elements (such as such as AXD, Regional Processing Group 2 (RPG2) and Global Satellite Services (GSS) etc.). The model is the
same that is used to derive the PDTMXD base and the PG to component derivation takes place as part of the same process.
Account is taken of the additional capacity required to accommodate the remaining System X working capacity which is to be
consolidated onto the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109) between BT and
Ericsson. With information from the manufacturers we have been able to determine the call set up and duration split for each
element. The total cost of all the elements of all the units in the network is summed and then these costs are analysed into setup
and duration splits. Common costs can be treated by apportioning the amount to setup and duration pro-rata on the already
existing split however this makes no difference to the overall result and common costs is ignored.
Call set-up costs are driven to main exchange call set-up CO220 and main exchange call duration CO221.
The overall process is illustrated below:
Switch Element
£/%
Volume (from Network Records System
(NRS) and the Switch Deployment Plan)
Unit cost (from Next Generation Switch
NGS) contact)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG257M_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared from a excel cost model used to drive LRIC inputs. The relative costs of call set up and call duration are
expressed as percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution
185
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
to components.
This is illustrated below:

Percentage of processor costs relating to call setup = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the signalling cost relating to Other Communications Providers (OCPs) has also to be determined.
The signalling usage and cost relating to OCPs has yet to be determined. Information from Network Recording System (NRS) is
downloaded showing destinations including those relevant to OCPs can be identified and compared to the total. Signalling costs
form part of the PG total costs but the separate signalling cost is clearly identifiable so on this basis an apportionment is made
from this PG to CO469 Interconnect Connections Capital. The residual amount is then re-based so that the new total equals
100% and pointed to main exchange call setup and main exchange call duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG260A
Intelligent Contact Manager
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of all equipment and
associated costs incurred as part of provision, extension, re-arrangement and recovery of Intelligent Contact Manager
equipment excluding Alfredo equipment. It also includes Intelligent Peripherals (IP) Service Control Point (SCP) equipment, on
site spares, initial databuild associated with switches, Testing Apparatus and initial provision of spars held for changing
purposes.
This equipment provides a call routing functionality for customers with call centres e.g. time of day routing and customer
controlled call steering. It gives options to a caller to be transferred to a particular department by pressing 1, 2 or 3.
Methodology
Apportioned 100% to the Intelligent Contact Manager component CO261.
Data Source/s
Allocated directly, no data source required.
PG276A
CISL (Common Intelligence Service Layer)
Description
This Plant Group (PG) captures the cost of the CISL platform that supports basic and advanced number translation services (for
example 0800, 0845 etc.) into a geographic number (for example 0121 234 5678) so that the call can then be routed by the
Public Switched Telephony Network (PSTN) switches. Services on this platform are migrating from the Cambridge and CoreIN
platforms (PG263/266).
Costs associated with the PG are:

Supervising contractors on installation.

On site spares.

Testing apparatus and initial provision of spares held for changing purposes.
Methodology
Costs from this PG are apportioned between the Cambridge/CISL infrastructure component CO266, the Intelligent Contact
Manager CO261, the OR Network Features (internal) component CO291 and the OR Network Features (external) component
CO290 based on call volumes from the CISL platform and Powerhouse volumes.
Data Source/s
Cumulative CISL platform volumes and factored volumes report via ASPIRE, to a period relative to the apportionment base,
reflecting year end.
PG280C
Local Exchange AXE10 Processor and Signalling
186
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation etc.) and Balance Sheet (Fixed Asset) costs relating to the
AXE10 Digital Local Exchange Processor and Signalling which flow through classes of work (CoW) LYX via PDTLYX (see Base
Methodology Dictionary Section 4). The switch comprises both concentrator and processor functionality, and is used for call set
up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator component CO214 LE Concentrator
Set-Up and CO215 LE Concentrator Duration and Chargeable Services. The costs are identified by the CoW to PG exhaustion
process. This enables the relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links, 2Mbit/s Systems
and Miscellaneous). This analysis is carried out on the basis of various capacity measures (such as the number of processing
clusters, the number of 2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in
Network Records System (NRS) and Exchange Planning and Review System (EXPRES) (refer to Data Source section 9).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process because switching assets are not
always purchased and recorded on a switch on an element-by-element basis. Otherwise, It would not be possible to determine
the relative split between set up and duration costs. The aggregate cost within the network of each of these switch elements is
determined on the basis of Local Exchange Modernisation Programme2 (LEMP2) contract prices. The volume of each element is
multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme (LEMP). The LEMP contract is indicative of normal course of
business. It sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement
function.
The elements of the processor are assigned into three main blocks:

Digital Line Termination (DLT).

Switch Block.

Processor and Signalling.
We are concerned with Processor and Signalling only for this PG. Based on advice from switching suppliers, the function of each
switch element is analysed between call set up and call duration. This advice showing an analysis between set-up and duration
will not change on a year by year basis as the building elements of the asset remain a constant. Certain elements support both
functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from Network Records System
(NRS) and EXPRESS)
Unit cost from Local Exchange
Modernisation Programme 2 (LEMP2)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Y
Duration
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG280C_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
187
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are expressed as percentages, and
these percentages are applied to the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to Local Exchange (LE) processor set up CO212 and LE processor duration
CO210.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and
any changes mean that historic data is re-based to accommodate these.
However, the processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of 10 System X Local Exchanges and analysed into whether the record type is Select Service driven or
not.
System X information is used as a proxy as information of this type is not available for AXE10 exchanges.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram2_PG280C
Record Types 34 were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at 10 Digital Local Exchange (DLE) sites in the country. The
number of processor instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and do not represent all of the processing capacity. As outgoing calls
represent around only 50% of the total calls being processed the amount of Select Services overhead on the processor needs to
be further refined or weighted to take this into account. An analysis of call usage has been determined based on data taken from
ASPIRE for Period 1 to 6 which shows the proportion of outgoing calls compared to the total. This includes Call Terminating, Call
Origination and any Tandem Traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion). The Retail fraction is pointed at CO291 OR Network Features (Internal) and the
Wholesale fraction at CO290 OR Network Features (External).
The quantity of processor cost relating to LE call set up and call duration is then re-based so that the new total equals 100%.
The signalling usage and cost relating to Other Operators has yet to be determined. Information from Network Recording
System (NRS) is downloaded showing destinations including those relevant to Other Operators can be identified and compared
to the total. Period 6 data is used. Signalling costs form part of the PG total costs but the separate signalling cost is clearly
identifiable so on this basis an apportionment is made from this PG to CR470 Intra Building Circuits (Rentals).
Data Source/s
NRS as at Period 06.
EXPRES.
Billing Records.
OR Management Accounts.
188
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG280M
AXE10 LE Processor and Signalling – Current
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non-Pay, Materials etc.) costs relating to the maintenance of AXE10
Digital Local Exchange (LE) Processor and Signalling.
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator component CO214 LE Concentrator
Set-Up and CO215 LE Concentrator Duration and Chargeable Services. The costs are identified by the CoW to PG exhaustion
process. This enables the relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links, 2Mbit/s Systems
and Miscellaneous). This analysis is carried out on the basis of various capacity measures (such as the number of processing
clusters, the number of 2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in
Network Records System (NRS) and Exchange Planning and Review System (EXPRES) (refer to Data Source section 9).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process because switching assets are not
always purchased and recorded on a switch on an element-by-element basis. Otherwise, It would not be possible to determine
the relative split between set up and duration costs. The aggregate cost within the network of each of these switch elements is
determined on the basis of Local Exchange Modernisation Programme2 (LEMP2) contract prices. The volume of each element is
multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme (LEMP). The LEMP contract is indicative of normal course of
business. It sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement
function.
The elements of the processor are assigned into three main blocks:

Digital Line Termination (DLT).

Switch Block.

Processor and Signalling.
We are concerned with Processor and Signalling only for this PG. Based on advice from switching suppliers, the function of each
switch element is analysed between call set up and call duration. This advice showing an analysis between set-up and duration
will not change on a year by year basis as the building elements of the asset remain a constant. Certain elements support both
functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from Network Records System
(NRS) and EXPRESS)
Unit cost from Local Exchange
Modernisation Programme 2 (LEMP2)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Y
Duration
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG280C_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
189
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are expressed as percentages, and
these percentages are applied to the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to LE processor set up CO212 and LE processor duration CO210.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and
any changes mean that historic data is re-based to accommodate these.
However, the processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of 10 System X Local Exchanges and analysed into whether the record type is Select Service driven or
not.
System X information is used as a proxy as information of this type is not available for AXE10 exchanges.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram2_PG280C
Record Types 34 were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at 10 Digital LE sites in the country. The number of processor
instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and do not represent all of the processing capacity. As outgoing calls
represent around only 50% of the total calls being processed the amount of Select Services overhead on the processor needs to
be further refined or weighted to take this into account. An analysis of call usage has been determined based on data taken from
ASPIRE for Period 1 to 6 which shows the proportion of outgoing calls compared to the total. This includes Call Terminating and
any Tandem Traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion). The Retail fraction is pointed at CO291 OR Network Features (Internal) and the
Wholesale fraction at CO290 OR Network Features (External).
The quantity of processor cost relating to LE call set up and call duration is then re-based so that the new total equals 100%.
The signalling usage and cost relating to Other Operators has yet to be determined. Information from Network Recording
System (NRS) is downloaded showing destinations including those relevant to Other Operators can be identified and compared
to the total. Period 6 data is used. Signalling costs form part of the PG total costs but the separate signalling cost is clearly
identifiable so on this basis an apportionment is made from this PG to CR470 Intra Building Circuits (Rentals).
Data Source/s
NRS as at Period 06.
EXPRES.
Billing Records.
OR Management Accounts.
190
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG281C
AXE 10 Local Exchange (LE) Digital Line Termination (DLT) – Capital
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation etc.) and Balance Sheet (Fixed Asset) costs of AXE10 DLT, which
flow through classes of work (CoW) LYX via PDTLYX (see Base Methodology Dictionary Section 4).
The DLT switch comprises both call set-up and call duration functionality.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator component CO214 LE Concentrator
Set-Up and CO215 LE Concentrator Duration. The costs are identified by the CoW to PG exhaustion process. This enables the
relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links, 2Mbit/s Systems
and miscellaneous). This analysis is carried out on the basis of various capacity measures (such as the number of 2Mb switch
ports) actually present in the BT Network, as shown in Network Records System. (See Data Source section 9).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process as switching assets is not always
purchased and recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative
split between set-up and duration costs.
The aggregate cost within the network of each of these switch element is determined on the basis of:
LEMP2 contract prices i.e. the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local
Exchange Modernisation Programme. It set out the contract prices for the various switch elements and is negotiated with
suppliers by BT’s procurement function. The LEMP2 contract is indicative of normal course of business and covers both Local
and System X main Exchanges based on advice from switching suppliers. The function of each switch element is analysed
between call set-up and call duration. This advice showing an analysis between set-up and duration will not change on a year by
year basis as the building elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from Network Records System
(NRS) and STT)
Unit cost from LEMP2
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG281C_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are therefore expressed as
percentages with these percentages being applied to the year-end (Period 12) PG costs to determine the attribution to
components.
191
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
This is illustrated below.

Percentage of processor costs relating to call set-up = M/(M+N) = M%

Percentage of processor costs relating to call duration = N/(M+N) = N%
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and Local Exchange Processor
Duration CO210). All of the above is based historic data until such time as the base is unfrozen. The procedures below are
updated each year and any changes mean that historic data is re-based to accommodate these.
However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
Mid-year port information is downloaded from the NRS. This provides the origin and destination of each 2Mbit/s port on every
Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of
switch, of which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total is driven to CR470. This percentage is then
pointed at the Interconnect Rentals component. The residual amount is then re-based so that the new total equals 100% and
point to Local Exchange Call Set-Up and Local Exchange Call Duration.
Data Source/s
Network Records System (NRS).
Exchange Planning and Review System (EXPRES).
Billing records.
PG281M
AXE 10 Local Exchange (LE) Digital Line Termination (DLT) – Current
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non-Pay, Materials etc.) costs relating to the maintenance of AXE10
Digital LE DLT.
The DLT switch comprises both call set-up and call duration functionality.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator component CO214 Local Exchange
(LE) Concentrator Set-Up and CO215 LE Concentrator Duration. The costs are identified by the CoW to PG exhaustion process.
This enables the relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links, 2Mbit/s Systems
and miscellaneous). This analysis is carried out on the basis of various capacity measures (such as the number of 2Mb switch
ports) actually present in the BT Network, as shown in Network Records System (NRS) and Processor Utilisation and Loading of
Switch Equipment (PULSE) (See Data Source section 9).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process as switching assets is not always
purchased and recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative
split between set-up and duration costs.
The aggregate cost within the network of each of these switch element is determined on the basis of:
LEMP2 contract prices i.e. the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local
Exchange Modernisation Programme. It set out the contract prices for the various switch elements and is negotiated with
suppliers by BT’s procurement function. The LEMP2 contract is indicative of normal course of business and covers both Local
and System X main Exchanges based on advice from switching suppliers. The function of each switch element is analysed
between call set-up and call duration. This advice showing an analysis between set-up and duration will not change on a year by
year basis as the building elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
192
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Switch Element
£/%
Volume (from Network Records System
(NRS) and STT)
2
3
etc
Total 1+2+3 etc
A
Unit cost from LEMP2
Total Cost
1
£
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG281C_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are therefore expressed as
percentages with these percentages being applied to the year-end (Period 12) PG costs to determine the attribution to
components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/(M+N) = M%

Percentage of processor costs relating to call duration = N/(M+N) = N%
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and Local Exchange Processor
Duration CO210). All of the above is based historic data until such time as the base is unfrozen. The procedures below are
updated each year and any changes mean that historic data is re-based to accommodate these.
However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
Mid-year port information is downloaded from the NRS. This provides the origin and destination of each 2Mbit/s port on every
Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of
switch, of which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total is driven to CR470. This percentage is then
pointed at the Interconnect Rentals component. The residual amount is then re-based so that the new total equals 100% and
point to Local Exchange Call Set-Up and Local Exchange Call Duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
Billing records.
PG282A
Local Exchange (LE) AXE10 Switch Block
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation and maintenance) and Balance Sheet (Fixed Asset) costs of
AXE10 Digital LE Switch Blocks.
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator CO214 LE Concentrator set up and
CO215 LE Concentrator duration. The costs are identified by the classes of work (CoW) to PG exhaustion process. This enables
193
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
the relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links, 2Mbit/s Systems
and Miscellaneous).
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in Network Records
System (NRS) and Exchange Planning and Review System (EXPRES).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis.
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded on a switch
on an element-by-element basis, and it would not otherwise be possible to determine the relative split between set up and
duration costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices, that is, the volume of each element is multiplied by the unit cost of each
element.
LEMP2 is the Local Exchange Modernisation Programme. It sets out the contract prices for the various switch elements and is
negotiated with suppliers by BT’s procurement function.
The elements of the processor are assigned into three main blocks: Digital Line Termination (DLT), Processor and Signalling, and
Switch Block. For the purposes of this PG the Switch Block is the main consideration.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set up and call
duration. This advice showing an analysis between set-up and duration will not change on a year by year basis as the building
elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from NRS and EXPRES)
Unit cost (from LEMP2)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG282A_v1
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are expressed as percentages, and
these percentages are applied to the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
194
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
to concentrator costs and are used to attribute costs to LE processor set up CO212 and LE processor duration CO210).
The base is currently frozen.
Data Source/s
NRS.
EXPRES.
PG283A
AXE10 Local Exchange (LE) Concentrator Set-Up
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to AXE10 LE
Digital Concentrator Call Set-Up.
These assets comprise both call set-up and call duration functionality. The PG contains both Capital and Maintenance costs
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are attributed to
CO210 Local Exchange processor duration and CO212 Local Exchange Processor Set-up. Additional apportionment is made
from the Local Exchange DLT PG to Interconnect Connections and from Local Exchange Processor to Chargeable Services (Select
Services). The costs are identified by the classes of work (CoW) to PG exhaustion process. This enables the relative proportions of
concentrator and processor costs to be identified.
The attribution of concentrator call set-up costs follows a number of steps.
The procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined. An extract of the Billing Call Record information
is gathered from a sample of ten System X Local Exchanges and analysed into whether the record type is Select Service driven or
not. System X information is used as a proxy for AXE10, as this information is unavailable.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram1_PG283A
Only RT22 makes use of the Concentrator Duration element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 is ignored in this calculation on the assumption that the Select Services to ordinary calls without Select Services is in the
same ratio for Integrated Services Digital Network (ISDN) as for Analogue calls.
Billing Records are generated only for outgoing calls and do not represent all of the concentrator call set-up capacity. An
analysis of call usage has been determined based on data from Period 1 to 6. The total amount of Select Service related
concentrator usage is further refined relative to the quantity of Originating Calls and Own Exchange Calls in relation to the total.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further split into
Select Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion). The Retail fraction is pointed at CO290 OR Network Features (External) and the
Wholesale fraction at CO291 OR Network Features (Internal).
The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO214 Local Exchange Concentrator Set-Up.
Data Source/s
Billing Records obtained from a sample of 10 AXE10 and 10 System X Local Exchange.
OR Management Accounts.
PG284A
AXE10 Local Exchange (LE) Concentrator Call Duration
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to AXE10 LE
195
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Digital Concentrator Call Duration. The switch comprises both concentrator and processor functionality, and is used for call setup and call duration.
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are attributed to
CO212 LE Processor Set-Up and CO210 LE Processor Duration. Additional apportionments are made from the LE DLT PG to
Interconnect Connections and from LE Processor to Chargeable Services (Select Services). The costs are identified by the classes
of work (CoW) to PG exhaustion process. This enables the relative proportions of concentrator and processor costs to be
identified.
The attribution of Concentrator Duration costs follows a number of steps.
The procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined.
A sample extract of Billing Call Record information is gathered from a sample of 10 System X local and 10 AXE10 Local
Exchanges and analysed into whether the record type is Select Service driven or not. System X information is used as a proxy for
AXE10 as this information is unavailable.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram1_PG284A
Only RT22 makes use of the Concentrator Duration element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 record types are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for Analogue calls.
Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call set-up capacity.
An analysis of billing records has been determined based on data from Period 1 to 6. The total amount of Select Service related
concentrator usage is further refined relative to the quantity of Originating Calls and Own Exchange Calls in relation to the total
which also includes Call Terminating and DLE Transit.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further split into
Select Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion). The retail fraction is pointed at CO290 OR Network Features (External) and the
wholesale fraction at CO291OR Network Features (Internal). The residual quantity of concentrator cost relating to Call Set-Up is
pointed to CO215 LE Concentrator Duration. The PG contains both capital and maintenance costs.
Data Source/s
Billing Records.
OR Management Accounts.
PG285C
Local Exchange (LE) System X Processor and Signalling
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to System X
Digital LE Processor and Signalling which flow through from classes of work (CoW) LDX via PDTSYSXD (see Section 4).
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration. The
concentrator costs call related costs are attributed wholly to the local exchange concentrator components CO214 LE
Concentrator set up and CO215 LE Concentrator duration. The costs are identified by the CoW to PG exhaustion process. This
enables the relative proportions of concentrator and processor costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The LE processor is analysed into its constituent elements:
196
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

Flexible Voice Platforms.

Alarm Utility Subsystems.

Network Interface Subsystems.

Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in Exchange Planning
and Review System (EXPRES) and Processor Utilisation and Loading of Switch Equipment (PULSE). See Data Sources Section 9.
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis.
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded on a switch
element-by-element basis, and it would not otherwise be possible to determine the relative split between set up and duration
costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each
element.
LEMP2 was the Local Exchange Modernisation Programme which set out the contract prices for the various switch elements. It
sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s Procurement function. The
LEMP2 contract is indicative of normal course of business and covers both Local and System X Main Exchanges.
The elements of the processor are assigned into three main blocks:

Digital Line Termination (DLT).

Switch Block.

Processor and Signalling.
We are concerned with the Processor and Signalling only for this PG.
Based on advice from switching suppliers, the function of each switch element is analysed between call set up and call duration.
This advice showing an analysis between set-up and duration will not change on a year by year basis as the building elements of
the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from NRS and EXPRES)
Unit cost (from LEMP2)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG285C_v1
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are therefore expressed as
percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution to
197
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
components.
This is illustrated below:

Percentage of processor costs relating to call set up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG’s total cost represented by processor costs as
opposed to concentrator costs and are used to attribute costs to processor set up CO212 and processor duration CO210).
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and
any changes mean that historic data is re-based to accommodate these.
However, the Processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of 10 System X Local Exchanges (Data Source/s: Billing Records) and analysed into whether the record
type is Select Service driven or not.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram2_PG285C
RT34s are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select Services is in the
same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at ten Digital LE sites in the country.
The number of processor instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and therefore do not represent all of the processing capacity. An analysis of
call usage has been determined based on data from Period 1 to 6. The total amount of Select Service related processor usage is
further refined relative to the quantity of Originating Calls and Own Exchange Calls relative to the total which also includes Call
Terminating any Tandem traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. The quantity of processor cost
relating to LE call set up and call duration is then re-based so that the new total equals 100%. This is further split into Select
Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion).). The retail fraction is pointed at CO290 OR Network Features (External) and the
wholesale fraction at CO291OR Network Features (Internal).
The signalling usage and cost relating to other operators has yet to be determined. Information from Network Recording System
(NRS) is downloaded showing destinations including those relevant to Other Operators can be identified and compared to the
total. Period 6 data is used. Signalling costs form part of the PG total costs but the separate signalling cost is clearly identifiable
so on this basis an apportionment is made from this PG to CR470 Intra Building Circuits (Rentals).
Data Source/s
EXPRES.
Billing Records.
NRS.
OR Management Accounts.
PG285M
Local Exchange System X Processor and Signalling -Current
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non-Pay, Materials etc.) costs relating to the maintenance of System X
Digital Local Exchange (LE) Processor and Signalling.
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration. The
concentrator costs call related costs are attributed wholly to the local exchange concentrator components CO214 Local
Exchange (LE) Concentrator set up and CO215 Local Exchange (LE) Concentrator duration. The costs are identified by the CoW
198
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
to PG exhaustion process. This enables the relative proportions of concentrator and processor costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:

Flexible Voice Platforms.

Alarm Utility Subsystems.

Network Interface Subsystems.

Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in Exchange Planning
and Review System (EXPRES) and NRS (Network Recording System).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis.
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded on a switch
element-by-element basis, and it would not otherwise be possible to determine the relative split between set up and duration
costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each
element.
LEMP2 was the Local Exchange Modernisation Programme which set out the contract prices for the various switch elements. It
sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s Procurement function. The
LEMP2 contract is indicative of normal course of business and covers both Local and System X Main Exchanges.
The elements of the processor are assigned into three main blocks:

Digital Line Termination (DLT).

Switch Block.

Processor and Signalling.
We are concerned with the Processor and Signalling only for this PG.
Based on advice from switching suppliers, the function of each switch element is analysed between call set up and call duration.
This advice showing an analysis between set-up and duration will not change on a year by year basis as the building elements of
the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
199
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Switch Element
£/%
1
Volume (from NRS and EXPRES)
Unit cost (from LEMP2)
3
etc
Total 1+2+3 etc
A
£
Total Cost
2
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG285C_v1
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are therefore expressed as
percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution to
components.
This is illustrated below:

Percentage of processor costs relating to call set up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG’s total cost represented by processor costs as
opposed to concentrator costs and are used to attribute costs to processor set up CO212 and processor duration CO210).
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and
any changes mean that historic data is re-based to accommodate these.
However, the Processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of 10 System X LE (Data Source/s: Billing Records) and analysed into whether the record type is Select
Service driven or not.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram2_PG285C
RT34s are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select Services is in the
same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at ten Digital Local Exchange (DLE) sites in the country.
The number of processor instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and therefore do not represent all of the processing capacity. An analysis of
call usage has been determined based on data from Period 1 to 6. The total amount of Select Service related processor usage is
further refined relative to the quantity of Originating Calls and Own Exchange Calls relative to the total which also includes Call
Terminating any Tandem traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
200
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
sources e.g. Atlantis, Orbit and Hyperion). The Retail fraction is pointed at CO291 OR Network Features (Internal) and the
Wholesale fraction at CO290 OR Network Features (External).
The signalling usage and cost relating to Other Operators has yet to be determined. Information from NRS is downloaded
showing destinations including those relevant to Other Operators can be identified and compared to the total. Period 6 data is
used. Signalling costs form part of the PG total costs but the separate signalling cost is clearly identifiable so on this basis an
apportionment is made from this PG to CR470 Intra Building Circuits (Rentals).
Data Source/s
NRS as at Period 06.
EXPRES.
Billing Records.
OR Management accounts.
PG286C
System X Local Exchange (LE) –Digital Line Termination (DLT) Capital
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to the System X
Digital LE DLT.
The switch comprises both concentrator and processor functionality and is used for call set-up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator CO214 LE Concentrator Set-Up and
CO215 LE Concentrator Duration. The costs are identified by the classes of work (CoW) to PG exhaustion process. This enables
the relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:

Host Core.

C7 Signalling Links.

2Mbit/s Systems.

Miscellaneous.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in Network Records
System (NRS) and Processor Utilisation and Loading of Switch Equipment (PULSE).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process as switching assets is not always
purchased and recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative
split between set-up and duration costs.
The aggregate cost within the network of each of these switch element is determined on the basis of LEMP2 contract prices i.e.
the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local Exchange Modernisation
Programme. It set out the contract prices for the various switch elements and was as negotiated with suppliers by BT’s
procurement function. The LEMP2 contract is indicative of normal course of business and covers both local and system X main
Exchanges.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set-up and call
duration. This advice showing an analysis between set-up and duration will not change on a year by year basis as the building
elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
201
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Switch Element
£/%
1
Volume (from NRS and EXPRES)
2
3
etc
Total 1+2+3 etc
A
Unit cost (from LEMP2)
£
B
Total Cost
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG286C_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are therefore expressed as
percentages with these percentages being applied to the year-end (Period 12) PG costs to determine the attribution to
components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and Local Exchange Processor
Duration CO210. However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and
any changes mean that historic data is re-based to accommodate these.
Mid-year port information is downloaded from NRS. This provides the origin and destination of each 2Mbit/s port on every
Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of
switch, of which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Rentals component CO470. The residual amount is then re-based so that the new total equals 100% and is
pointed to Local Exchange Call Set-Up and LE Call Duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG286M
System X DLT Maintenance - Current
Description
This Plant Group (PG) captures the Profit and Loss captures the maintenance Profit and Loss (Pay, Non-Pay, Materials etc.) costs
relating to the maintenance of System X Digital Local Exchange (LE) Digital Line Termination (DLT).
The switch comprises both concentrator and processor functionality and is used for call set-up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator CO214 LE Concentrator Set-Up and
CO215 LE Concentrator Duration. The costs are identified by the classes of work (CoW) to PG exhaustion process. This enables
the relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
202
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
The local exchange processor is analysed into its constituent elements:

Host Core.

C7 Signalling Links.

2Mbit/s Systems.

Miscellaneous.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in Network Records
System (NRS).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process as switching assets is not always
purchased and recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative
split between set-up and duration costs.
The aggregate cost within the network of each of these switch element is determined on the basis of LEMP2 contract prices i.e.
the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local Exchange Modernisation
Programme. It set out the contract prices for the various switch elements and was as negotiated with suppliers by BT’s
procurement function. The LEMP2 contract is indicative of normal course of business and covers both local and system X main
Exchanges.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set-up and call
duration. This advice showing an analysis between set-up and duration will not change on a year by year basis as the building
elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
1
Volume (from NRS and EXPRES)
2
3
etc
Total 1+2+3 etc
A
Unit cost (from LEMP2)
£
B
Total Cost
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG286C_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are therefore expressed as
percentages with these percentages being applied to the year-end (Period 12) PG costs to determine the attribution to
components.
This is illustrated below:

Percentage of processor costs relating to call set-up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
203
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and LE Processor Duration
CO210. However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and
any changes mean that historic data is re-based to accommodate these.
Mid-year port information is downloaded from NRS. This provides the origin and destination of each 2Mbit/s port on every
Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of
switch, of which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Rentals component CO470. The residual amount is then re-based so that the new total equals 100% and is
pointed to LE Call Set-Up and Local Exchange Call Duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG287A
Local Exchange System X Switch Block
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to the System X
Digital Local Exchange Switch Block.
The switch comprises both concentrator and processor functionality, and is used for call set-up and call duration. The
concentrator call related costs are attributed wholly to the local exchange concentrator components CO214 Local Exchange
Concentrator Set-Up and CO215 Local Exchange Concentrator Duration. The costs are identified by the classes of work (CoW) to
PG exhaustion process. This enables the relative proportions of concentrator and processor costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:

Flexible Voice Platforms.

Alarm Utility Subsystems.

Network Interface Subsystems.

Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown in Exchange Planning
and Review System (EXPRES) and NRS (Network Recording System).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of
each type for the purposes of this analysis. It is necessary to carry out this step in the process as switching assets are not always
purchased and recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative
split between set-up and duration costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices i.e. the volume of each element is multiplied by the unit cost of each
element. LEMP2 was the Local Exchange Modernisation Programme. It set out the contract prices for the various switch
elements and is negotiated with suppliers by BT’s procurement function. The LEMP2 contract is indicative of normal course of
business and covers both Local and System X Main Exchanges.
The elements of the processor are assigned into four main blocks. Digital Line Termination (DLT), Switch Block, Processor and
Signalling. For this PG we are only concerned with the switch block.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set up and call
duration. Certain elements support both functions. This overall process is illustrated below:
204
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Switch Element
£/%
Volume (from NRS and EXPRES)
1
2
3
etc
Total 1+2+3 etc
A
Unit cost (from LEMP2)
£
B
Total Cost
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG2867A_v1
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is
Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are therefore expressed as
percentages, with these percentages being applied to the year-end (Period 12) PG costs to determine the attribution to
components.
This is illustrated below:

Percentage of processor costs relating to call set up = M/ (M+N) = M%.

Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to Local Exchange processor set up CO212 and processor duration CO210.
The base is currently frozen.
Data Source/s
NRS.
EXPRES.
PG288A
System X Local Exchange Concentrator Call Set-Up
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to the System X
Digital Concentrator Call Set-Up which flows from classes of work (CoW) LDX via PDTSYSXD (See Base Methodology Directory
Section 4). The switch comprises both concentrator and processor functionality, and is used for call set-up and call duration.
Methodology
The processor call related costs (DLT, Switch Block and Processor and Signalling) are attributed to CO210 Local Exchange
processor duration and CO212 LE Processor set-up. Additional apportionment is made from the Local Exchange DLT PG to
Interconnect Connections and from Local Exchange Processor to Chargeable Services (Select Services). The costs are identified
by the CoW to PG exhaustion process. This enables the relative proportions of concentrator and processor costs to be identified.
The attribution of Concentrator Call Set-Up costs follows a number of steps and the procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined. An extract of billing call record information is
gathered from a sample of 10 System X Local Exchanges and 10 AXE10 Local Exchanges analysed into whether the record type
is Select Service driven or not.
205
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram2_PG288A
Only RT22s make use of the Concentrator Set-Up element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 record types were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for ISDN as for Analogue calls.
Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call set-up capacity.
An analysis of billing records has been determined based on data from Period 1 to 6 (data source/s is billing records). The total
amount of Select Service related concentrator usage is further refined relative to the quantity of Originating Calls and Own
Exchange Calls in relation to the total which also includes Call Terminating and DLE Transit.
The final weighted concentrator usage percentage for Select Services is then applied to the PG. This is further split into Select
Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion). The retail fraction is pointed at CO290 OR Network Features (External) and the
Wholesale fraction at CO291 OR Network Features (Internal).
The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO214 Local Exchange Concentrator Set-Up.
The PG contains both Capital and Maintenance costs.
Data Source/s
Billing Records.
OR Management Accounts.
PG289A
System X Local Exchange (LE) Concentrator Call Duration
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Asset) costs relating to System X LE Digital
Concentrator Call Duration which flows from classes of work (CoW) LDX via PDTSYSXD (Base Methodology Dictionary Section 4).
The System X switch comprises both concentrator and processor functionality, and is used for call set-up and call duration.
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are attributed to
CO210 Local Exchange processor duration and CO212 LE Processor Set-Up. Additional apportionments are made from the LE
DLT PG to Interconnect Connections and from LE Processor to Chargeable Services (Select Services). The costs are identified by
the CoW to PG exhaustion process.
This enables the relative proportions of concentrator and processor costs to be identified. The attribution of Concentrator
Duration costs follows a number of steps.
The procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined. An extract of billing call record information is
gathered from a sample of 10 System X Local Exchanges and 10 AXE10 Local Exchanges analysed into whether the record type
is Select Service driven or not.
Record Type
Description
RT21
Normal subs billing records
RT22 ( Select Service Driven)
Diverted calls and A, D and C ring backs
RT29 ( Select Service Driven)
Activation/Deactivation of Select Services
RT34
Integrated Services Digital Network (ISDN) call records
Diagram1_PG289A
206
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Only RT22s make use of the Concentrator Duration element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services. RT34s are ignored in this
calculation on the assumption that the Select Services to ordinary calls without Select Services is in the same ratio for Integrated
Services Digital Network (ISDN) as for Analogue calls. Billing records are generated only for outgoing calls and therefore do not
represent all of the concentrator call set-up capacity. An analysis of billing records has been determined based on data from
Period 1 to 6. The total amount of Select Service related concentrator usage is further refined relative to the quantity of
Originating Calls and Own Exchange Calls in relation to the total which also includes Call Terminating and Call Originating.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further split into
Select Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume
sources e.g. Atlantis, Orbit and Hyperion). The retail fraction is pointed at CO290 OR Network Features (External) and the
wholesale fraction at CO91 OR Network Features (Internal). The residual quantity of concentrator cost relating to Call Set-Up is
pointed to CO215 LE Concentrator Duration. The PG contains both Capital and Maintenance costs.
Data Source/s
Billing Records.
OR Management Accounts.
PG300T
Other Communications Provider (OCP) Point of Handover
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation) and the Balance Sheet (Asset value) costs associated with
providing customer sited point of handover equipment.
Methodology
Allocated 100% to the Point of Handover Electronics component CO379.
Component C0379 apportions all costs associated with OCP Point of Handover.
Data Source/s
Allocated directly, no data source required.
PG301T
Synchronous Digital Hierarchy (SDH) Tier 0 - Link
Description
This Plant Group (PG) captures depreciation costs and asset values of the link element of Global Backhaul bearers. Bearers
provide the transmission capability for the circuits that support BT’s Products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through which it passes
(see Appendix C - Bearer Diagram). A fibre cable between two nodes can support many bearers (a bearer generally uses a pair of
fibres whereas a fibre cable can have up to 240 fibres). The link element of a bearer relates to the electronic such as Line
Terminating Equipment and multiplexers equipment located at the nodes (i.e. the end points of the bearer). Electronics
equipment located at intermediate points along a bearer’s length forms part of the length cost.
A bearer forms part of the network which is in turn split into several tiers. Tier 0 forms the apex of this structure and is associated
with international circuits between Digital International Switching Centres (DISCs) and Satellite earth stations as well as
international private circuits.
Methodology
The Global backhaul bearers are used exclusively by International Carrier Services (ISC) to Frontier.
Allocated 100% to the ISC to Frontier Link component CB367.
Data Source/s
Allocated directly, no data source required.
PG311T,
PG313T,
PG315T,
PG321T,
PG323T,
PG325T,
Synchronous Digital Hierarchy (SDH) Bearer Link
Description
These Plant Groups (PGs) capture the depreciation, maintenance and other overhead (e.g. accommodation) costs and asset
values associated with the link elements of SDH bearers. Bearers provide the transmission capability for the circuits that support
207
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG331T,
PG333T,
PG335T,
PG341T,
PG343T,
PG345T,
PG351T,
PG353T,
PG355T,
PG359T,
PG381T,
PG383T,
PG385T
BT’s products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through which it passes
(see Appendix C Bearer Diagram) and refer to Core Transmission Circuit costing System (CTCS). A fibre cable between two nodes
can support many bearers (a bearer generally uses a pair of fibres whereas a fibre cable can have up to 240 fibres). The link
element of a bearer relates to the electronic such as Line Terminating Equipment and multiplexers equipment located at the
nodes (i.e. the end points of the bearer). Electronics equipment located at intermediate points along a bearer’s length forms
part of the length cost.
A bearer forms part of the network which is in turn split into several tiers in order to address the different needs of different
parts of the network (see Network Overview Diagram in Section 9).

Tier 0 is the highest level in the network, intended to handle international traffic.

Tier 1 is the long haul intricate or backbone network. It consists of 4/1 and 4/4 cross connect switches. A cell or Supercell is
an additional ring between Tiers 1 and 2.

Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two separate
Tier 1 nodes.

Tier 3 is the level used for Booster schemes.

Tier 4 is the access network for SDH Customers.
Marconi Synchronous Hierarchy (MSH) is the high capacity platform to cater for traffic at 140Mb and above.
SDH bearers have various transmission rates as indicated by the Synchronous Transport Module (STM).

STM1 – 155Mbit/s.

STM4 – 622Mbit/s.

STM16 – 2.48Gbit/s.

STM64 – 10Gbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to network components (circuits)
based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an analysis of the CTCS database,
which extracts information from engineering databases. It provides details of the relationships between bearers and circuits,
specifically:

The bearer equipment that a circuit ‘Hits’ along its route.

The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. For example a 155Mbit/s SDH bearer can support 63 2Mbit/s circuits, 3 34Mbit/s
circuits or a single 155Mbit/s circuit. The cost of an individual bearer is therefore apportioned across all the segments of circuits
carried by the bearer and the cost of a single end-to-end circuit is made up of the apportioned costs of all of the bearers over
which the circuit is routed through the core network.
In addition to this, PG341T, PG343T and PG345T utilise the Core/Access split already derived in the PDTSDH base as its input to
derive the Core/Access split and a split across Access components from the Access base model, applicable to the apportionment
of these PGs to components. This is to allocate the costs of electronics in the last serving exchange to the Local end component.
Factored Volumes Calculation - The apportionment of cost is based on a factored volume which in turn is calculated by factoring
the raw volume figure by a usage factor:

Raw Volume - The link related asset costs of bearers (e.g. depreciation of multiplexers and termination equipment)
are apportioned on a raw volume based on the number of instances in which a type of circuit ‘hits’ a link asset in the
core network.

Usage Factor - This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit
would have a usage factor of one 63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of
a third.
The raw volume and usage factor both come from CTCS.
Data Source/s
208
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
CTCS data for Period 6. Management believes this Period to be reflective of the full year.
In addition to this, PG341T, PG343T and PG345T utilise the Core/Access split already derived in the PDTSDH base as its input to
derive the Core/Access split applicable to the apportionment of these PGs to components.
PG350N
Synchronous Digital Hierarchy (SDH) Bearer Length – Inner Core fibre
Description
This Plant Group (PG) captures the depreciation costs and asset values of the length elements of SDH bearers. Bearers provide
the transmission capability for the circuits that support BT’s products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through which it passes.
A fibre cable between two nodes can support many bearers (a bearer generally uses a pair of fibres whereas a fibre cable can
have up to 240 fibres). The length element of a bearer relates to the fibre cable, duct and the repeating equipment between the
nodes.
A bearer forms part of the network which is in turn split into several tiers in order to address the different needs of different
parts of the network (see Network Overview):

Tier 0 is the highest level in the network, intended to handle international traffic.

Tier 1 is the long haul intercity or backbone network. It consists of 4/1 and 4/4 cross connect switches.

A cell or Supercell is an additional ring between tiers 1 and 2.

Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two separate
Tier 1 nodes.

Tier 3 is the level used for Booster schemes.

Tier 4 is the access network for SDH Customers.
Marconi Synchronous Hierarchy (MSH) is the high capacity platform to cater for traffic at 140mb and above.
SDH bearers have various transmission rates as indicated by the Synchronous Transport Module (STM):

STM1 – 155Mbit/s.

STM4 – 622Mbit/s.

STM16 – 2.48Gbit/s.

STM64 – 10Gbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network components
(circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an analysis of the CTCS
database, which extracts information from engineering databases. It provides details of the relationships between bearers and
circuits, specifically:

The bearer equipment that a circuit ‘Hits’ along its route.

The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. For example a 155Mbit/s SDH bearer can support 63 2Mbit/s circuits, three
34Mbit/s circuits or a single 155Mbit/s circuit. The cost of an individual bearer is therefore apportioned across all the segments
of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the apportioned costs of all of the
bearers over which the circuit is routed through the core network.
Factored Volumes Calculation - The apportionment of cost is based on a factored volume which in turn is calculated by factoring
the raw volume figure by a usage factor:

Raw Volume - The length related asset costs of bearers (e.g. depreciation of fibre cable and duct) are apportioned on a raw
volume based on the length of the circuit segment carried by a bearer.

Usage Factor - This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit
would have a usage factor of one 63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a
third.
209
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
CTCS data for Period 6. Management believes this Period is reflective of the full year.
PG361T,
PG365T,
PG367T,
PG371T,
PG373T,
PG375T,
PG377T,
PG379T,
PG399T
Plesiochronous Digital Hierarchy (PDH) Bearer Link
Description
These Plant Groups (PGs) capture the depreciation, maintenance and other overhead costs and asset values of the link elements
of PDH bearers. Bearers provide the transmission capability for the circuits that support BT’s Products.
Bearers consists of electronics located at intermediate nodes, together with a cable and the duct through which it passes (see
Appendix C -Bearer Diagram) and refer to CTCS (Core Transmission Circuit costing System) in Data Source Section 9). The link
element of a bearer relates to the electronic equipment located at the nodes such as Line Terminating Equipment and
multiplexers.
PDH bearers are predominantly used in the Public Switched Telephone Network (PSTN) and form the interconnection between
Digital Main Switching Units (DMSUs) and Tandem exchanges.
PDH bearers have various transmission rates.

2Mbit/s.

8Mbit/s.

34Mbit/s.

140Mbit/s.

565Mbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network components
(circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an analysis of the CTCS
database, which extracts information from engineering databases. It provides details of the relationships between bearers and
circuits, specifically:

The bearer equipment that a circuit ‘Hits’ along its route.

The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. For example a 140Mbit/s PDH bearer can support 64 2Mbit/s circuits, four
34Mbit/s circuits or a single 140Mbit/s circuit. The cost of an individual bearer is therefore apportioned across all the segments
of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the apportioned costs of all of the
bearers over which the circuit is routed through the core network.
Factored Volumes Calculation - The apportionment of cost is based on a factored volume which in turn is calculated by factoring
the raw volume figure by a usage factor.

Raw Volume - The link related asset costs of bearers (e.g. depreciation of multiplexers and termination equipment)
are apportioned on a raw volume based on the number of instances in which a type of circuit ‘hits’ a link asset in the
core network.

Usage Factor - This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit
would have a usage factor of one 64th of a 140Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of
a quarter.
Data Source/s
CTCS Database for Period 6 Management believes this Period to be reflective of the full year.
PG391T,
PG393T,
PG395T
Plesiochronous Digital Hierarchy (PDH) Radio Bearer Link
Description
These Plant Groups (PGs) capture the depreciation costs and asset values of the link elements of PDH Radio bearers.
Radio Bearers provide the core microwave radio transmission capability for the circuits that support BT’s Products.
A Radio bearer consists of electronics located at intermediate nodes. The link element of a bearer relates to the electronic
210
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
equipment located at the nodes such as masts, antennas and radio electronics.
Radio bearers are predominantly used for high capacity, city to city routes (e.g. London to Birmingham) and in inaccessible
areas (such as remote parts of Scotland) where cable costs would be prohibitive.
PDH Radio bearers have various transmission rates:

8Mbit/s.

34Mbit/s.

140Mbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network components
(circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an analysis of the Core
Transmission Circuit costing System (CTCS) database, which extracts information from engineering databases. It provides details
of the relationships between bearers and circuits, specifically.

The bearer equipment that a circuit ‘Hits’ along its route.

The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. For example a 140Mbit/s PDH Radio bearer can support 64 2Mbit/s circuits, four
34Mbit/s circuits or a single 140Mbit/s circuit. The cost of an individual bearer is therefore apportioned across all the segments
of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the apportioned costs of all of the
bearers over which the circuit is routed through the core network.
Factored Volumes Calculation - The apportionment of cost is based on a factored volume which in turn is calculated by factoring
the raw volume figure by a usage factor.

Raw Volume - The link related asset costs of bearers (e.g. depreciation of multiplexers and termination equipment)
are apportioned on a raw volume based on the number of instances in which a type of circuit ‘hits’ a link asset in the
core network.

Usage Factor - This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit
would have a usage factor of one 64th of a 140Mbit/s - radio bearer whereas a 34Mbit/s circuit would have a usage
factor of a quarter.
The raw volume and usage factor both come from the CTCS.
Data Source/s
CTCS data for Period 6. Management believes this Period to be reflective of the full year.
PG400T
ACE (Access Control Equipment)/ENA (Equipment Network Access) Core Equipment
Description
This Plant Group (PG) captures the network transmission costs associated with ACE/ENA core equipment. This equipment is used
to supply KiloStream.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100% to the PC Rental 64kb Link per link component CO381.
Data Source/s
Allocated directly, no data source/s required.
PG401A
NetStream Equipment
Description
This Plant Group (PG) captures the costs associated with NetStream. NetStream is a Retail Product offering that enables mobile
network operators (MNOs) to backhaul their traffic from their cell sites (satellite sites) to their core networks (at major customer
sites). NetStream 16 Longline offers a number of pricing options to MNOs for circuits between small satellite sites and major
sites.
211
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
To ensure that the NetStream services receive equipment depreciation, specific equipment costs have been identified within the
classes of work (CoW) SDH and have been directly attributed to the dedicated NetStream plant group PG401A. Costs are then
allocated 100% to the NetStream Equipment component CO401.
Data Source/s
Allocated directly no data sources required.
PG405A
DMS100 Call Centre Switches
Description
This Plant Group (PG) captures the equipment costs associated with DMS100 Call Centre Switches. The DMS100 (Digital
Multiplexer System) is a digital facility that processes OA (Operator Assistance) telephone calls.
Methodology
Allocated 100% to the DMS100 component CO405.
Data Source/s
Allocated directly, no data source/s required.
PG407A
Carrier Pre Selection (CPS) Operator Set-Up
Description
This Plant Group (PG) captures the cost of CPS Operator Set Up. CPS is a European Union regulatory project which allows
customers to select to have certain call types carried by another network operator. Depreciation, Pay and Fixed Assets are the
main type of costs within this PG.
Methodology
Allocated 100% to the CPS Operator Set-Up component CO407.
Data Source/s
Allocated directly, no data source/s required.
PG408A
Carrier Pre Selection (CPS) Customer Set-Up
Description
This Plant Group (PG) captures the cost of CPS Customer Set Up. CPS is a European Union regulatory project which allows
customers to select to have certain call types carried by another network operator. Depreciation, Pay and Fixed Asset are the
main type of costs in this PG.
Methodology
Allocated 100% to the CPE CSE component CO408.
Data Source/s
Allocated directly, no data source/s required.
PG411C
Analogue Electric Capital
Description
This Plant Group (PG) captures the capital cost of dedicated plant associated with Private Analogue Circuits and allied specialised
applications. Types of cost include depreciation and Fixed Asset Gross Book Value (GBV).
Methodology
Allocated 100% to the PC Rental Analogue Link Local End component CO431.
Data Source/s
Allocated directly, no data source required.
212
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG411P
Analogue Connections (NBC)
Description
This Plant Group (PG) captures the connection costs of providing analogue circuits for National Business Customers. The work
takes place primarily within the transmission network. Types of cost include stores and pay costs.
Methodology
Allocated 100% to the Analogue PC link Connection circuit provision component CO411.
Data Source/s
Allocated directly, no data source/s required.
PG412C
64K Electronics Capital
Description
This Plant Group (PG) captures the capital costs associated with 64k (KiloStream) Private Circuit’s electronics. Types of cost
include current non pay, depreciation etc.
Methodology
Allocated 100% to the PC Rental 64kbit link local end component CO432.
Data Source/s
Allocated directly, no data sources required.
PG412M
64K Electronics Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with 64k (KiloStream) private circuits. Types of cost include
stores and pay costs.
Methodology
Allocated 100% to the PC rental 64kbit link local end component CO432.
Data Source/s
Allocated directly, no data sources required.
PG412P
64k Connections
Description
This Plant Group (PG) captures the connection costs of providing KiloStream circuits. The work takes place primarily within the
transmission network and includes provision of private circuits. Types of cost include stores and pay costs.
Methodology
Costs are apportioned to components CO417 64kbit link connection circuit provision and CO418 64Kbit PC rearrangements
based on volumes of each activity from Powerhouse and COSMOSS.
Data Source/s
Powerhouse and COSMOSS.
PG413P
Private Circuits MegaStream and IX Conns
This Plant Group (PG) captures the connection costs of providing 2 MegaStream circuits of 2Mb or higher bandwidth based
circuits. Products that are including are MegaStream, Interconnect and intra building circuits (IBC’s). The work takes place
primarily within the transmission network and includes re-arrangement and transfers of these type digital circuits. Types of costs
include pay, stores used and general equipment.
Methodology
Costs from this PG are apportioned to components based on a price-weighted volume of circuits provided during the year. The
volumes are sourced from Powerhouse and Customer Oriented System for the Management of Special Services (COSMOSS) and
213
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
prices from the Carrier Price List. The price-weighting takes into account the difference in providing a connection with that of
carrying out a re-arrangement or a transfer. From these price-weighted volumes usage factors are calculated and applied.
Data Source/s
Powerhouse and COSMOSS for year-end volumes.
PG414M
Private Circuits International Analogue IPLC Current
Description
This Plant Group (PG) captures the maintenance costs associated with Private Circuits International Analogue International
Private Leased Circuit (IPLC).
Methodology
Allocated 100% to the Analogue IPLC component CO415.
Data Source/s
Allocated directly, no data sources required.
PG415M
Private Circuits International Digital IPLC Current
Description
This Plant Group (PG) captures current costs associated with Private Circuits International Digital International Private Leased
Circuit (IPLC). Digital IPLCs are communication channels between two fixed locations dedicated to a particular customer or pair
of customers. Types of cost include current pay costs.
Methodology
Allocated 100% to the Digital IPLC component CO414.
Data Source/s
Allocated directly, no data sources required.
PG421S
Private Circuits Analogue Installation (National Business Customer)
Description
This Plant Group (PG) captures the connection costs in providing and rearranging Analogue circuits for National Business
Customers. The work takes place primarily within the customer's premises.
Types of cost include stores and pay costs.
Methodology
Allocated 100% to the Analogue PC installation component CO421.
Data Source/s
Allocated directly, no data sources required.
PG422S
Private Circuits KiloStream Installation (National Business Customer)
Description
This Plant Group (PG) captures the connection costs in providing and rearranging KiloStream circuits. The work takes place
primarily within the customer's premises and includes provision and rearrangement of circuits. Types of cost include stores and
pay costs.
Methodology
Costs are apportioned to components CO417 64kbit/s link connection circuit provision and CO418 64kbit/s PC rearrangements
based on volumes of each activity from Powerhouse and COSMOSS.
Data Source/s
Powerhouse and COSMOSS.
PG426S
Private Circuit Access Lines Installation
214
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Description
This Plant Group (PG) captures costs associated with Private Circuit Access Line Installation. Types of cost include stores and pay
costs.
Methodology
Allocated 100% to the Analogue PC installation component CO421.
Data Source/s
Allocated directly, no data source/s required.
PG440C
Access Synchronous Digital Hierarchy (ASDH) 4x2Mbit/s Capital
Description
This Plant Group (PG) captures the depreciation costs for ASDH 4x2 Bearer/Line systems, that is, electronics equipment for a
Bearer/Line System capacity of 4x2Mbit/s. Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these Bearer/Line Systems.
These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs (Partial Private Clients) and
SMDS (Switched Multimegabit Data Services) and the PG costs are attributed to the components that are used in the provision
of these services.
Core Transmission Circuit Costing System (CTCS) is a circuit inventory system, which holds a count of the number of each of
circuit type that utilises each equipment type. In this case, it records the number of the above circuit types that use 4x2 line
systems.
Data Source/s
The data source for the number of circuits is the CTCS for Period 6. Management believes this period to be reflective of the full
year.
PG440M
Access Synchronous Digital Hierarchy (ASDH) 4x2Mbit/s Maintenance
Description
This Plant Group (PG) captures the costs associated with maintenance of ASDH 4x2 Line systems, i.e. electronics equipment that
can carry up to 4x2Mbit/s bearers. Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (PG440C).
This assumes that a line system with only (for example) private circuits connected to it has the same maintenance profile as the
same line systems with only (for example) interconnect circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
Data Source/s
Core Transmission Circuit costing System (CTCS) for Period 6. Management believes this period to be reflective of the full year.
PG441C
Access Synchronous Digital Hierarchy (ASDH) 16x2Mbit/s Capital
Description
This Plant Group (PG) captures the depreciation costs for ASDH 16x2 Bearer/Line systems, electronics equipment for a
Bearer/Line System capacity of 16x2Mbit/s. Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these Bearer/Line Systems.
These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs (Partial Private Clients) and
SMDS (Switched Multimegabit Data Services) and the PG costs are therefore attributed to the components that are used in the
215
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
provision of these services.
Core Transmission Circuit costing System (CTCS) is a circuit inventory system, which holds a count of the number of each circuit
type that utilises each equipment type. In this case, it records the number of the above circuit types that use 16x2 line systems.
Data Source/s
The data source for the number of circuits is CTCS for Period 6 Management believes this period to be reflective of the full year.
PG441M
Access Synchronous Digital Hierarchy (ASDH) 16x2Mbit/s Maintenance
Description
This Plant Group (PG) captures the costs associated with maintenance of ASDH 16x2 Line systems, i.e. electronics equipment
that can carry up to 16x2Mbit/s bearers. Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
using these line systems and follows the attribution of the Capital costs (PG441C).
This methodology assumes that a line system with only (for example) private circuits connected to it has the same maintenance
profile as the line systems with only (for example) interconnect circuits. This assumption is consistent with BT’s actual experience
of maintenance in this area.
Data Source/s
Core Transmission Circuit costing System (CTCS) for Period 6. Management believes this period to be reflective of the full year.
PG442C
2Mbit/s Copper Electric Capital
Description
This Plant Group (PG) captures the depreciation costs for 2Mbit/s copper Bearer/Line systems, i.e. electronics equipment that
supports 2Mbit/s circuits carried over copper pairs. The circuits are almost wholly 2Mbit/s private circuits, but there is a small
number of interconnect circuits carried over copper.
Methodology
The attribution of the PG costs to components is based on the number of circuits of each type that is carried over bearers that
use these line systems.
Total 2Mbit/s circuit over copper volumes are obtained from Powerhouse.
The number of interconnect circuits is also taken from Powerhouse, which records the number of such circuits, however the
number of these circuits travelling over copper is calculated separately. To do this Core Transmission Circuit costing System
(CTCS) data is used to determine the split of circuits going over copper, fibre and radio.
This percentage is then applied to the Powerhouse total 2Mbit/s circuit volume to determine the number of interconnect circuits
using 2Mbit/s copper Bearer/line systems.
The PG costs are then attributed to components pro-rata to these volumes.
This is illustrated below.
Determine interconnect volumes
From Powerhouse:

Total number of circuits carried over copper, X.
From CTCS:

Total number of Interconnect circuits carried over copper, Y.
Therefore percentage of circuits carried over copper represented by interconnect circuits = Y / X = Z%.
Determine split of Powerhouse volumes between interconnect and private circuits
Take total volume of 2Mbit/s circuits over copper = A.
Determine volume of interconnect circuits = A x Z% = B.
Then volume of 2Mbit/s private circuits = A – B.
216
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Powerhouse volumes and CTCS data - Period 6. Management believes this period to be reflective of the full year.
PG442M
2Mbit/s Copper Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 2Mbit/s copper Bearer/Line systems, i.e. electronics equipment that
supports 2Mbit/s circuits carried over copper pairs. The circuits are almost wholly 2Mbit/s Private Circuits, but there is a small
number of interconnect circuits carried over copper. Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (see PG442C).
This assumes that a line system with only (for example) private circuits connected to it has the same maintenance profile as the
line systems with only (for example) interconnect circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
Data Source/s
Powerhouse volumes and Core Transmission Circuit costing System (CTCS) data for Period 6. Management believes this period to
be reflective of the full year.
PG443C
2Mbit/s Fibre Electric capital
Description
This Plant Group (PG) captures the depreciation costs for 2Mbit/s Bearer/Line systems i.e. electronics equipment that supports
2Mbit/s circuits carried over fibre. Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems. As PG443C covers both 2Mb and 4x2Mb circuits the volume of each type of circuit is weighted by
the cost of the relevant electronics.
These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs (Partial Private Circuits)
and SMDS (Switched Multimegabit Data Services) and the PG costs are therefore attributed to the components that are used in
the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the number of the above circuit types that use 2Mbit/s line systems.
Data Source/s
The data source for the number of circuits is CTCS. Circuit numbers are based on Period 6 and are believed by management to be
representative of the full year.
PG443M
2Mbit/s Fibre Electric Maintenance
Description
This Plant Group (PG) Captures the maintenance costs for 2Mbit/s Bearer/Line systems i.e. electronics equipment that supports
2Mbit/s circuits carried over fibre. Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems. These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs
(Partial Private Clients) and SMDS (Switched Multimegabit Data Services) and the PG costs are therefore attributed to the
components that are used in the provision of these services.
This base follows the attribution of the Capital costs (see PG443C). This assumes that a line system with only (for example)
private circuits connected to it has the same maintenance profile as the same line systems with only interconnect circuits (for
example). This assumption is consistent with BT’s actual experience of maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
217
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the number of the above circuit types that use 2Mbit/s line systems.
Data Source/s
The data source for the number of circuits is CTCS. Circuit numbers are based on Period 6 and are believed by management to be
representative of the full year.
PG444C
34Mbit/s Electric Capital
Description
This Plant Group (PG) Captures the depreciation costs for 34Mbit/s Bearer/Line systems i.e. electronics equipment on which
circuits with a bandwidth of up to and including 34Mbit/s can travel over. Types of cost include depreciation, stores and pay
costs.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried over
34Mbit/s bearers/Line Systems. These line systems are used to provide a medium for the circuits to travel over and the PG costs
are therefore attributed to the components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the total number of the above circuit types that use 34Mbit/s line systems. Circuits for 34Mbit/s and above are taken
from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of
34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 34Mbit/s line system can support
1x34Mbit/s circuit or 16x2Mbit/s circuits. So for example the number of 2Mbit/s circuits is therefore weighted by a factor of 16,
to reflect the capacity utilisation, and express the number of 2Mbit/s circuits in terms of their 34Mbit/s equivalent.
Data Source/s
CTCS. Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG444M
34Mbit/s Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 34Mbit/s Bearer/Line systems i.e. electronics equipment that supports
34Mbit/s circuits carried over fibre. Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (see PG444C).
This assumes that a line system with only (for example) 2Mbit/s private circuits connected to it has the same maintenance profile
as the same line system with only (for example) 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the total number of the above circuit types that use 34Mbit/s line systems. Circuits for 34Mbit/s and above are taken
from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of
34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 34Mbit/s line system can support
1x34Mbit/s circuit or 16x2Mbit/s circuits. So for example the number of 2Mbit/s circuits is therefore weighted by a factor of 16,
to reflect the capacity utilisation, and express the number of 2Mbit/s circuits in terms of their 34Mbit/s equivalent.
Data Source/s
CTCS. Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG445C
140Mbit/s Electric Capital
Description
This Plant Group (PG) captures the depreciation costs for 140Mbit/s Bearer/Line systems i.e. electronics equipment on which
218
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
circuits with a bandwidth of up to and including 140Mbit/s can travel over. Types of cost include depreciation, stores and pay
costs.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried over
140Mbit/s bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore attributed to the
components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the total number of the above circuit types that use 140Mbit/s line systems. Circuits for 34Mbit/s and above are taken
from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of
34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 140Mbit/s line system can
support one 140Mbit/s circuit or four 34Mbit/s circuits, or 63 2Mbit/s circuits, or some combination of 34 and 2Mbit/s circuits.
The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 63, to reflect the capacity utilisation, and
express the number of 34Mbit/s circuits in terms of their 140Mbit/s equivalent. Similarly, the number of 34Mbit/s circuits is
weighted by a factor of four.
Data Source/s
CTCS. Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG445M
140Mbit/s Fibre Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 140Mbit/s Bearer/Line systems i.e. electronics equipment that
supports 140Mbit/s circuits carried over fibre. Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (see PG445C).
This assumes that a line system with only 2Mbit/s private circuits connected to it has the same maintenance profile as the same
line system with only 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the total number of the above circuit types that use 140Mbit/s line systems. Circuits for 34Mbit/s and above are taken
from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of
34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 140Mbit/s line system can
support 1 140Mbit/s circuit or four 34Mbit/s circuits, or 63 2Mbit/s circuits, or some combination of 34 and 2Mbit/s circuits.
The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 63, to reflect the capacity utilisation, and
express the number of 34Mbit/s circuits in terms of their 140Mbit/s equivalent. Similarly, the number of 34Mbit/s circuits is
weighted by a factor of four.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG446C
622Mbit/s Electric Capital
Description
This Plant Group (PG) captures the costs for 622Mbit/s Bearer/Line systems i.e. electronics equipment on which circuits with a
bandwidth of up to and including 622Mbit/s can travel over.
Types of cost include depreciation, stores and pay costs.
Methodology
219
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried over
622Mbit/s bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore attributed to the
components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the total number of the above circuit types that use 622Mbit/s line systems. Circuits for 34Mbit/s and above are taken
from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of
34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 622Mbit/s line system can
support one 622Mbit/s circuit, four 140Mbit/s circuits, 16 34Mbit/s circuits, or 252 2Mbit/s circuits, or some combination of
140, 34 and 2Mbit/s circuits. The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 252, to reflect
the capacity utilisation, and express the number of these circuits in terms of their 622Mbit/s equivalent. Similarly, the number of
140Mbit/s circuits is weighted by a factor of four and the number of 34Mbit/s circuits is weighted by a factor of 16.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG446M
622Mbit/s Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 622Mbit/s Bearer/Line systems, electronics equipment that supports
622Mbit/s circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (see PG446C).
This assumes that a line system with only (for example) 2Mbit/s private circuits connected to it has the same maintenance profile
as the same line system with only (say) 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit
inventory system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it
records the total number of the above circuit types that use 622Mbit/s line systems. Circuits for 34Mbit/s and above are taken
from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of
34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 622Mbit/s line system can
support 1 622Mbit/s circuit, 4 140Mbit/s circuits, 16 34Mbit/s circuits, or 252 2Mbit/s circuits, or some combination of 140, 34
and 2Mbit/s circuits. The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 252, to reflect the
capacity utilisation, and express the number of these circuits in terms of their 622Mbit/s equivalent. Similarly, the number of
140Mbit/s circuits is weighted by a factor of 4 and the number of 34Mbit/s circuits is weighted by a factor of 16.
Data Source/s
CTCS. Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG447A
Shorthaul Data Services (SHDS) Electronics
Description
This Plant Group (PG) captures costs associated with the dedicated plant connected with the SHDS Products and is wholly
assigned to the SHDS components. Where customers are using Local Area Networks (LAN) to access and exchange data at one
site, SHDS Products enables them to extend the LAN to other sites. Types of cost include depreciation and stores costs.
Methodology
Allocation to component CO448 WES/LES Electronics, component CO449 BES Electronics and component CT453 BNS
Electronics and CO451 Ethernet Access Direct Electronics using volumes from Powerhouse weighted by the cost of the
electronics from Openreach product managers.
220
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Openreach Rental volumes at Period 12, Connections volumes at P12 and the Openreach product managers for equipment
prices.
PG461A
Private Circuits Test and Maintenance System
Description
This Plant Group (PG) captures the costs associated with Private Circuit maintenance and testing work carried out in the Work
Manager Control Centres. It includes jeopardy management of jobs, Work Manager Helpdesk and administration costs.
Types of cost include non-ETG pay costs.
Methodology
Allocated 100% to the Private Circuit test system component CO461.
Data Source/s
Allocated directly, no data sources required.
PG462A
Private Circuits Customer Premises Equipment
Description
This Plant Group (PG) captures the cost of dealing with Private Circuit maintenance and faulting work in customer premises on
analogue private circuits and access lines. Types of cost include stores and pay costs.
Methodology
Allocated 100% to the Openreach Private Circuit Customer Premises component CO462.
Data Source/s
Allocated directly, no data sources required.
PG463A
Private Circuits Testing
Description
This Plant Group (PG) captures the cost of dealing with Private Circuit maintenance and testing carried out in the Work Manager
Control Centres. It includes jeopardy management of jobs, Work Manager Helpdesk and administration costs. It also captures the
cost of time spent by exchange maintenance people in co-operation with field people for line test in order to localise a fault.
Types of cost include non-ETG pay costs.
Methodology
Allocated 100% to the Openreach Private Circuit Testing component CO463.
Data Source/s
Allocated directly, no data source required.
PG483A
Flexible Bandwidth Services (FBS)
Description
This Plant Group (PG) captures the costs associated with the FBS product. The FBS product offers a flexible private virtual
network providing the customer with both re-routing, on demand, to pre-determined destinations and band width flexibility
within agreed limits. Types of cost include depreciation costs.
Methodology
Allocated 100% to the Flexible Bandwidth Services component CO483.
Data Source/s
Allocated directly, no data sources required.
PG502B
Selling, General and Administration (SG&A) Openreach Sales and Product Management
221
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Description
This Plant Group (PG) captures the captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV) costs associated with Organisational Unit Code (OUC) BP. BP is the Sales and Product Management division of
Openreach. As the various sub-teams support specific services, their costs cannot be spread on a Direct pay or revenue basis.
Methodology
Allocated 100% to the Sales product management component CP502.
Data Source/s
Allocated directly, no data sources required.
PG504B
Number Portability Operational Management
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of Openreach. The teams within BM
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
In common with all European Communication Providers (CPs) BT is obliged to enable customers to port their numbers to other
CPs, this being a requirement of the European Numbering Directive. This facility enables a telephone customer to retain their
phone number if they switch to another CP. The main direct CoW is JK (Software Jumpering).
Methodology
A breakdown of the headcount of each team is obtained from the BM Finance team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes.
This PG specifically captures the costs of the Number Portability Operational Management team within OUC BM.
Allocates 100% to the Number Portability Set-up costs component CO732.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse P12.
PG505A
Selling, General and Administration (SG&A) Private Circuits
Description
This Plant Group (PG) captures the Profit and Loss (Pay etc.) and Balance Sheet (Fixed Asset) cost of the SG&A activity in BT
Wholesale supporting Private Circuits.
BT Private Circuits are used for customers who want to link two or more business sites throughout the UK. A customer rents a
constant end-to-end connection, regardless of traffic. They provide instant connection, guaranteed un-contended symmetrical
bandwidth, no dialling, no waiting and no engaged signals. BT digital private circuits offer faster transmission speeds from
2.4kbit/s to 622Mbit/s, ideal for higher volumes of voice and data traffic with high quality results for a mix of voice, data and
image traffic. They are a practical way of handling time critical, high speed data transmissions.
Methodology
Costs from this plant group are allocated 100% to the SG&A Private Circuits component CO505.
Data Source
A yearly SG&A survey is carried out in December/January each year. All applicable teams are surveyed from within the main BT
Wholesale functional units. Management believe this to be reflective of a full year.
PG506N
Selling, General and Administration (SG&A) Partial Private Circuits (PPCs) - Wholesale
Description
This Plant Group (PG) captures the Profit and Loss (Pay, etc.) and Balance Sheet (Fixed Assets, etc.) costs of the SG&A activity in
BT Wholesale supporting PPCs.
222
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
A PPC is a service that has the attributes of a wholesale half circuit. The PPC routes from the network Point of Presence (PoP) by
means of Point of Handover (PoH) between an Annex II operator’s network and the BT network. A path is then set up across the
BT network to the 3rd party customers to supply an end-to-end path at the appropriate bandwidth.
Methodology
Costs from this plant group are allocated 100% to the SG&A PPC component CO506.
Data Source/s
A yearly SG&A survey is carried out in December/January each year. All applicable teams are surveyed from within the main BT
Wholesale functional units. Management believe this to be reflective of a full year.
PG507N
Selling, General and Administration (SG&A) for Openreach Services
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
activity for Wholesale Services by non Openreach units.
Methodology
Costs from this plant group are allocated 100% to the SG&A Wholesale Access component CL507. This is only relevant for the
opening balance sheet due to a change in methodology during the year.
Data Source
Allocated directly, no data sources required.
PG508N
Selling, General and Administration (SG&A) Retail Access (Wholesale)
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
activity in BT Wholesale supporting Retail Access.
Methodology
Costs from this plant group are allocated 100% to the Retail Access component CL508. This is only relevant for the opening
balance sheet due to a change in methodology during the year.
Data Source
A yearly SG&A survey carried out in December/January each year. All applicable teams are surveyed from within Wholesale
Markets. Management believe this to be reflective of a full year.
PG509N
Selling, General and Administration (SG&A) General (Wholesale)
Description
This Plant Group (PG) captures the Profit and Loss (Pay etc.) and Balance Sheet (Fixed Asset) cost of the SG&A activity in BT
Wholesale supporting General Access.
General access is the residue of access connectivity that is not treated in any of the above Plant Groups (PGs) and the use of this
PG can change annually. In 2011, this was used to capture the SG&A Broadband activities which have subsequently been
assigned consistently to PG609N from 2012.
Methodology
Costs from this plant group are allocated 100% to the SG&A Broadband component CO609. This is only relevant for the opening
balance sheet due to a change in methodology during the year.
Data Source
A yearly SG&A survey carried out in December/January each year. All applicable teams are surveyed from within BT Wholesale.
Management believe this to be reflective of a full year.
PG511M
Interconnect Other Communications Provider (OCP) Specific Plant Current
Description
This Plant Group captures the costs associated with Interconnecting with OCPs for building activity. Costs include Profit and Loss
223
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
(Non ETG Pay, Stores, and Depreciation etc.) and Balance Sheet (Fixed Assets).
Methodology
Allocates 100% to the Intra Building Circuit (IBC) rental component CO470.
Data Source/s
Allocated directly, no data source/s required.
PG511P
Interconnect OCP Circuit Provision
Description
This Plant Group (PG) captures provision costs specific to Interconnect Operational Capacity Planning (OCP) circuits.
Interconnect OCP circuits are circuits which connect the BT Network to the networks of Other Communications Providers.
Methodology
Allocates to the Interconnect 2Mbit/s connections component CR453 and Interconnect IBC 2Mbit connection CR469 based on
the relative connection volumes of each.
Data Source/s
Wholesale Customer Reporting System (WCR).
PG512A
Product Management Policy and Planning (PPP) Other Communications Provider (OCP)
Description
This Plant Group (PG) captures the PPP activities that comprise the costs incurred by BT in servicing and supporting the
Interconnect market. The primary unit concerned is BT Wholesale Products and Strategy with minor contributions from the rest
of BT Wholesale.
Methodology
An activity analysis is carried out during the year, to gain a greater knowledge of the effort being invested in supporting
interconnect and other Wholesale Products and Services within BT Wholesale.
The survey is sent out electronically, at three and four digit OUC level, asking for Full Time Equivalent (FTE) to be divided on a
percentage basis between a supplied list of Products and Services.
From this survey, a base is created to reflect the time spent on each Product and Service as a percentage of the overall total.
Costs from this plant group are allocated 100% to the PPP component CO512.
Data Source/s
Annual FTE activity survey carried out in December/January each year. Management believe this to be reflective of a full year.
PG561A
Interconnect Payments to Other Communications Provider (POCP) Communications Networking Services (UK) (CNS)
Description
This Plant Group (PG) captures cost of POCPs, relating to UK CNS.
Methodology
Allocates 100% to the Interconnect POCP Concert component CB561.
Data Source/s
Allocated directly, no data sources required.
PG570B
OR Service Centre – Provision Wholesale Line Rental (WLR) PSTN/ISDN2
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
224
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example WLR External Connections), then their FTE will be spread across Residential and
Business lines by reference to their respective P12 volumes. General Costs applicable to both provision and assurance activities
will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product sets, specifically WLR – PSTN/ ISDN2.
Allocates 100% to the OR Service Centre - Provision WLR PSTN/ISDN2 – CL570.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG571B
OR Service Centre – Provision Wholesale Line Rental (WLR) ISDN30
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BM
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example WLR External Connections), then their FTE will be spread across Residential and
Business lines by reference to their respective P12 volumes. General Costs applicable to both provision and assurance activities
will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and is allocated on to the Service Centre
provisions components by product set. The product sets are: WLR – ISDN30.
Allocates 100% to the OR Service Centre - Provision WLR ISDN30 – CL571.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG572B
OR Service Centre – Provision Wholesale Line Rental (WLR) Local Loop Unbundling (LLU)
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
225
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example WLR External Connections), then their FTE will be spread across Residential and
Business lines by reference to their respective P12 volumes. General costs applicable to both provision and assurance activities
will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated to the Service Centre provisions
components by product set. The product sets are: WLR – LLU.
Allocates 100% to the OR Service Centre - Provision LLU – CL572.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG573B
OR Service Centre – Provision Wholesale Line Rental (WLR) Ethernet
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example WLR External Connections), then their FTE will be spread across Residential and
Business lines by reference to their respective P12 volumes. General costs applicable to both provision and assurance activities
will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – Ethernet.
Allocates 100% to the OR Service Centre - Provision Ethernet – CL573.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG574B
OR Service Centre – Provision Next Generation Access (NGA)
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes. General costs applicable to both provision
226
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
and assurance activities will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – NGA.
Allocates 100% to the OR Service Centre - Provision NGA – CL574.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG575B
OR Service Centre – Assurance Wholesale Line Rental (WLR) PSTN/ISDN2
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will capture the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example WLR External Connections), then their FTE will be spread across Residential and
Business lines by reference to their respective P12 volumes. General costs applicable to both provision and assurance activities
will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – PSTN/ ISDN2.
Allocates 100% to the OR Service Centre - Assurance WLR PSTN/ISDN2 – CL575.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG576B
OR Service Centre – Assurance Wholesale Line Rental (WLR) ISDN30
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example WLR External Connections), then their FTE will be spread across Residential and
Business lines by reference to their respective P12 volumes. General Costs applicable to both provision and assurance activities
will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – ISDN30.
Allocates 100% to the OR Service Centre - Assurance WLR ISDN30 – CL576.
227
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG577B
OR Service Centre - Assurance LLU
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes. General costs applicable to both provision
and assurance activities will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – LLU.
Allocates 100% to the OR Service Centre - Assurance LLU – CL577.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG578B
OR Service Centre - Assurance Ethernet
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes. General Costs applicable to both provision
and assurance activities will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – Ethernet.
Allocates 100% to the OR Service Centre - Assurance Ethernet – CL578.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
228
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG579B
OR Service Centre - Assurance NGA
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value
(GBV)) costs associated with Organisational Unit Code (OUC) BV. BV is the Service division of Openreach. The teams within BV
are primarily call centre based, with staff supporting the provisioning and repair of Openreach services. As the various teams
support specific services, their costs cannot be spread on a direct pay or revenue basis.
The PG exhausts to five components to capture Openreach specific activity for service centres (provision of Openreach service)
for Equivalence of Input purposes (previously incurred within BT Retail). The five components will captures the provision call
centre costs associated with OUC BV by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BV Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked on. Where a
team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes. General Costs applicable to both provision
and assurance activities will be allocated to the components on a pro rata basis using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BV and allocated on to the Service Centre provisions
components by product set. The product sets are: WLR – NGA.
Allocates 100% to the OR Service Centre - Assurance NGA – CL579.
Data Source/s
Headcount analysis is received from the BV Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
PG580B
Broadband Boost Engineering Costs
Description
This Plant Group (PG) captures the Openreach engineering costs associated with Broadband Boost jobs. Broadband Boost is a
solution to improving speed, quality and reliability of customer’s Broadband service. In addition, BT benefits from reduced
engineering and contact centre resources expended on broadband faults.
Methodology
Allocates costs booked to COW SBSBB (Service Based Solutions Broadband Boost) 100% to the Broadband Boost component
CO580.
Data Source/s
Allocated directly, no data sources required.
PG583N
Selling, General and Administration (SG&A) Wholesale Residual
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
activity by BT Wholesale supporting unregulated products which will include Wholesale calls.
Methodology
Costs from this plant group are allocated 100% to the SG&A Wholesale residual component CO583.
Data Source/s
A Selling, General and Administration survey of FTE activity is carried out each year. All applicable teams are surveyed from
within the main BT Wholesale functional units. Management believe this to be reflective of a full year.
PG584N
Selling, General and Administration (SG&A) Wholesale Other
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
229
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
activity by BT Wholesale supporting unregulated products which will include Managed Wholesale Ethernet.
Methodology
Costs from this plant group are allocated 100% to the SG&A Wholesale other component CO584.
Data Source/s
A Selling, General and Administration survey of FTE activity is carried out each year. All applicable teams are surveyed from
within the main BT Wholesale functional units. Management believe this to be reflective of a full year.
PG585A
Selling, General and Administration (SG&A) downstream residual
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
activity by BT Wholesale supporting unregulated downstream products. Products included in this category will include Agile
Media and Media and Broadcast.
Methodology
Costs from this plant group are allocated 100% to the SG&A downstream residual component CO585.
Data Source/s
A Selling, General and Administration survey of FTE activity is carried out each year. All applicable teams are surveyed from
within the main BT Wholesale functional units. Management believe this to be reflective of a full year.
PG586N
Selling, General and Administration (SG&A) Interconnect
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
activity by BT Wholesale supporting the Interconnect market.
Methodology
Costs from this plant group are allocated 100% to the SG&A Interconnect component CO586.
Data Source/s
A Selling, General and Administration survey of FTE activity is carried out each year. All applicable teams are surveyed from
within the main BT Wholesale functional units. Management believe this to be reflective of a full year.
PG599A
Interconnect Payments to Other Communication Providers (POCPs)
Description
This Plant Group (PG) captures the cost of Interconnect payments made to various Other Communication Providers (OCPs).
Methodology
Allocates 100% to the Interconnect POCPs component CB599.
Data Source/s
Allocated directly, no data source/s required.
PG609N
Selling, General and Administration (SG&A) Broadband
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost of the SG&A
activity by BT Wholesale supporting the Wholesale Broadband Access markets.
Methodology
Costs from this plant group are allocated 100% to the SG&A Broadband component CO609.
Data Source
A yearly SG&A survey carried out in December/January each year. All applicable teams are surveyed from within Wholesale
Markets. Management believe this to be reflective of a full year.
230
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG622A
Public Payphones Operations
Description
This Plant Group (PG) captures the Profit and Loss (P&L) and Balance Sheet costs associated with the provision of access to the
BT Network from Public Payphones in the UK. These costs are therefore essentially ‘Retail’ costs but are identified separately
from those that relate to the revenue-specific infrastructure of the Retail Payphones.
This PG was established to enable identification of these generic costs so that an appropriate Payphone Access levy – known as
the ‘PAC’ - could be charged via the Network Charge Control (NCC) mechanism.
Costs from this PG feeds into the Public Payphones Operations (PSCC) component CF446 for Openreach and CR446 for
Wholesale.
Methodology
Allocates to 2 components CR446 and CF446 based on OUC costs from ASPIRE DIY reports by relevant OUC codes.
Data Source/s
ASPIRE DIY Reports.
PG651B
Number Portability Set-up Costs – Operation and Maintenance Centre (OMC) Activities
Description
This Plant Group (PG) captures the OMC activity costs associated with Number Portability set-up. In common with all European
Communication Providers (CPs) BT is obliged to enable customers to port their numbers to other CPs, this being a requirement of
the European Numbering Directive. This facility enables a telephone customer to retain their phone number if they switch to
another CP. Pay, Depreciation and Fixed Assets are the main type of costs in this PG.
Methodology
Allocates 100% to the Number Portability Set-up costs component CO732.
Data Source/s
Allocated directly, no data source/s required.
PG653A
ATM (Asynchronous Transfer Mode) Customer Interface 2Mb Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 2Mb Customer Interface Cards,
namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the ATM classes of work (CoW). The
types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of Presence) at the edge of the ATM
Network and links the customer's premises via a private circuit, to the ATM network.
Methodology
Allocates 100% to the 2 Mb ATM Customer Interface components CO310.
Data Source/s
Allocated directly, no data sources required.
PG654A
ATM (Asynchronous Transfer Mode) Customer Interface 34Mb Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 34Mb Customer Interface Cards,
namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the classes of work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of Presence) at the edge of the
ATM Network and links the customer's premises via a private circuit, to the ATM network. ATM is a high throughput packet
switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates, multiple virtual circuits per
network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the 34 Mb ATM Customer Interface components CO311.
231
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Allocated directly, no data source required.
PG656A
ATM (Asynchronous Transfer Mode) Network Switching
Description
This Plant Group (PG) captures the cost of network switching ports deployed in the ATM platform. ATM is a high throughput
packet switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates, multiple virtual circuits
per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the ATM Network Switching component CO314.
Data Source/s
Allocated directly, no data sources required.
PG657A
FrameStream Switch
Description
This Plant Group (PG) captures the cost of Frame relay equipment booked to the Asynchronous Transfer Mode (ATM) classes of
work (CoW). This CoW falls within the ATMR asset policy code. The ATMR asset policy code captures the costs for all frame relay
equipment. Frame relay equipment is a small network which works alongside the ATM.
FrameStream/Frame Relay is a simple, cost effective, frame relay-based Virtual Private Network (VPN) solution that supports
high-speed data and Internet Protocol (IP) connectivity in the UK and abroad.
Methodology
Allocates 100% to the FrameStream Switch component CO657.
Data Source/s
Allocated directly, no data source required.
PG658A
ATM (Asynchronous Transfer Mode) Customer Interface (higher than) 155Mbit/s Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 155Mbit/s and higher
bandwidth Customer Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall
within the ATM classes of work (CoW). The types of cost include pay and stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates,
multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the 155Mbit/s Customer Interface components CO312.
Data Source/s
Allocated directly, no data sources required.
PG659A
ATM (Asynchronous Transfer Mode) Network Interface Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of Network Interface Cards,
namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the ATM classes of work (CoW).
Types of cost include pay and stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates,
multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the ATM Network Interface component CO313.
232
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Allocated directly, no data sources required.
PG667A
Internet Protocol (IP) International Peering
Description
This Plant Group (PG) captures the cost of:

Gigabyte Routers, connecting International transmission and peering links to USA, Europe. Gigabyte Routers is a high
bandwidth switch, used for switching Internet traffic.

Links for World Wide Web (www) Products - anything that uses the Internet such as BTnet and WebPort. BTnet Dial IP
service provides remote dial-in access to corporate networks so they can extend their Intranet and Extranet and offers
Internet Service Providers (ISPs) with dial ports via BT’s fully managed high speed dial network.
Methodology
Allocates 100% to the IP International Peering component CO667.
Data Source/s
Allocated directly, no data source required.
PG668A
Internet Protocol (IP) Network Management
Description
This Plant Group (PG) captures the costs of IP Network Management including all the costs associated with Operational Support
Systems (OSS) – these are activities used to run the network and business. Typical activities that are part of OSS are taking a
customer’s order, configuring network components, logging and managing faults. The types of cost include pay and stores
costs.
Methodology
Allocates 100% to the IP Network Management component CO668.
Data Source/s
Allocated directly, no data source required.
PG669A
IP (Internet Protocol) Network Dial IP
Description
This Plant Group (PG) captures the cost of the following types of equipment:

IP Dial Ports. Dial Ports connect Public Switched Telephone Network (PSTN) to IP Network.

Dial Access Routers. Dial Access Routers connect Dial Ports into IP Network.

Home Gateway Routers. Home Gateway Routers are customer specific e.g. ISP (Internet Service Provider).
Methodology
Allocates 100% to the IP Network Dial IP component CO669.
Data Source/s
Allocated directly, no data sources required.
PG670A
IP (Internet Protocol) Network Fixed Access
Description
This Plant Group (PG) captures the cost of the following types of equipment:

BTnet Direct and Flex NTE (Network Terminal Equipment) Routers, which connect the customer to the BT Network.

BTnet Access Routers, which connect the MSIP (Multi Services Intranet Platform) and Synchronous Digital Hierarchy (SDH)
access to the IP Network at Colossus PoPs (Point of Presences).
233
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates 100% to the IP Network Fixed Access component CO670.
Data Source/s
Allocated directly, no data source required.
PG671A
Internet Protocol (IP) Network Virtual Private Network (VPN)
Description
This Plant Group (PG) captures the cost of the platform that delivers the following VPN products: Metro, Equip, and Internet
Protocol (IP) Clear and Ethernet delivery services (e.g. Fusion and IP Clear 10100).
There are three main types of equipment in this platform:

Provider Edge Routers, used to terminate customer ports.

Provider Router, used to route traffic through network.

Catalyst Switch, used to aggregates traffic into a Provider router.
Methodology
Allocates 100% to the IP VPN component CO671.
Data Source/s
Allocated directly, no data source required.
PG672A
IP (Internet Protocol) Network Broadband
Description
This Plant Group (PG) captures the cost of the following types of equipment:

Remote Authentication Servers (RAS) (which connect Asymmetric Digital Subscriber Line (ADSL) users into IP cloud, for
direct connection to the Internet Service Provider Home Gateways.

Broadband Access Routers, which connect RAS into IP cloud.

Broadband Service Provider Home Gateways.
Methodology
Allocates 100% to the IP Network Broadband component CO672.
Data Source/s
Allocated directly, no data sources required.
PG673A
Internet Protocol (IP) Network BT Intranet
Description
This Plant Group (PG) captures the cost of the Command Control Router Network (CCRN) or Information Network (iNet).
Command Control Router Network (CCRN) is a BT internal structure for the transport of management traffic.
iNet is used to ensure the BT Intranet infrastructure meets existing needs and continue transforming BT to an e-Business
organisation.
Methodology
Allocates 100% to the IP Network BT Intranet component CO673.
Data Source/s
Allocated directly, no data sources required.
PG674A
IP (Internet Protocol) Core/Colossus
Description
234
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
This Plant Group (PG) captures the cost of:

Gigabyte Core Routers.

Catalyst LAN (Local Area Network).
Switches that aggregate and link router ports from the IP back bone core.
Methodology
Allocates 100% to the IP Core Node Equipment component CO674.
Data Source/s
Allocated directly, no data sources required.
PG675A
Voice over Internet Protocol (VoIP) costs
Description
VoIP is a method of transporting speech over the internet.
This Plant Group (PG) captures the cost of the following types of equipment:

Gigabit Routers - Gigabyte Routers are high bandwidth switches, used for switching Internet traffic.

Gateways and Access Routers are for transmitting voice over the IP Network.
Costs include provision, extension, rearrangement and recovery of IP Networks by the Broadband and Data division in BT
Wholesale.
Methodology
Allocates 100% to the VoIP Equipment component CO675.
Data Source/s
Allocated directly, no data sources required.
PG676A
IP (Internet Protocol) Applications
Description
This Plant Group (PG) captures the cost of DNS (Domain Name Servers). DNS convert IP addresses into world wide web (www)
format and vice versa. It also contains Radius Dial, Radius Broadband Servers, Mail and News servers.
Methodology
Allocates 100% to the IP Core Node Equipment component CO674.
Data Source/s
Allocated directly, no data sources required.
PG678A
Internet Protocol (IP) Session Initiation Protocol (SIP) Servers
Description
This Plant Group (PG) captures the cost of the SIP server equipment. SIP is a signalling protocol used for establishing sessions in
an IP network.
Methodology
Allocates 100% to the IP SIP Server component CO678.
Data Source/s
Allocated directly, no data sources required.
PG721A
Circuit Provision (CP) Digital Higher Order
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other payments) costs
235
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
associated with the provision, cessation and re-arrangement of Higher Order circuits. Higher Order Circuits are 2M or above
circuits used for Public Switched Telephony Network (PSTN) or private circuits.
Methodology
Costs are apportioned based on the number of Higher Order circuits provided, ceased and rearranged over the reporting period.
For full year reporting this is based on the number of aforementioned circuit changes between September (Period 6) prior year
and September current year. This information is sourced from the Core Transmission Costing System (CTCS).
Data Source/s
CTCS – providing a count of the number of Higher Order transmission circuits provided, ceased and rearranged over the
reporting period. For full year reporting this is based on the number of aforementioned circuit changes between September
(Period 6) prior year and September current year.
PG722A
Circuit Provision (CP) Digital Public Network
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other payments) costs
associated with the provision of transmission circuits for the digital Public Switched Telephony Network (PSTN). This
transmission network consists of Remote Concentrator to Local Exchange, Local Exchange to Trunk/Tandem Exchange and
Inter-Tandem/Trunk circuits.
Methodology
Costs are apportioned based on the number of PSTN transmission circuits provided, ceased and rearranged over the reporting
period. This information is sourced from the Core Transmission Costing System (CTCS).
Data Source/s
CTCS provides a count of the number of PSTN transmission circuits provided, ceased and rearranged over the reporting period.
For full year reporting this is based on the number of aforementioned circuit changes between September (Period 6) prior year
and September current year.
PG723A
Circuit Provision Analogue Public Network
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other payments) costs
associated with the provision, cessation and re-arrangement of circuits for the analogue public network.
Methodology
Costs are apportioned based on the number of circuits provided, ceased and rearranged over the reporting period. This
information is sourced from the Core Transmission Costing System (CTCS).
Data Source/s
The CTCS provides a count of the number of transmission circuits provided, ceased and rearranged over the reporting period. For
full year reporting this is based on the number of aforementioned circuit changes between September (Period 6) prior year and
September current year.
PG732A
Generic Data Amendments - Network Costs
Description
This Plant Group (PG) captures the cost of making data amendments at the switch to allow the switch to recognise new and
amended routing details, such as new numbers, new lines and new CPS (Carrier Pre-Select) customers.
Methodology
The attribution is made on the basis of the number of local and main exchanges in the network. Data amendments are more
numerous and more time consuming for Main Exchanges than for Local Exchanges, so each Main Exchange is weighted by a
factor of three. This factor is determined on the basis of the experience and expertise of the data amendment team, being a
management estimate. This gives an estimate of the time and hence relative cost for data amendments on Local relative to Main
Exchanges.
A small proportion of cost is relevant to CPS and for this a download is taken from the General Ledger at PG level for PG732A
Generic Data Adjustments costs. The number of Other Communications Providers (OCPs) taking up CPS during the year is also
recorded and the total cost for CPS Operator Set-Up is derived by multiplying by the cost per OCP. This cost is then compared
236
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
against the cost for PG732A to achieve the fraction attributable to the CPS Operator Set-Up component.
The proportions for Local and Main Exchanges are then re-based to achieve a total for the three components. Data amendments
are relevant to the Call Set-Up function and not Call Duration.
Data Source/s
Data amendment management team estimates and EXPRES.
PG761A
Special Applications SMDS (Switched Multimegabit Data Service)
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation) and Balance Sheet (Asset value) cost of specific switching
equipment associated with the provision of the SMDS. The costs are wholly allocated to the SMDS component (CR781).
Methodology
Allocates 100% to the SMDS component CR781.
Data Source/s
Allocated directly, no data source required.
PG771A
Special Applications Other Development
Description
This plant group (PG) captures provision of Microconnect equipment.
Methodology
Allocated 100% to the Development component CB782.
Data Source/s
Allocated directly, no data sources required.
PG772A
Openreach Systems and Development (Product Specific)
Description
This Plant Group (PG) captures the cost of Research and Development (R&D) projects, undertaken by BT Innovate & Design
(BTID) on behalf of Openreach, that are specific to Products e.g. Local Loop Unbundling (LLU).
Development projects can range from high-level strategy, down to operational and logistical development. Development
project costs are apportioned according to the nature of the individual projects.
PG772A (Openreach Systems and Development (Product Specific)) is for Openreach development projects that are specifically
relate to Products.
Methodology
The development projects are analysed and those that are specific to products e.g. LLU are allocated to PG772A and
apportioned to appropriate components. E.g. Product specific LLU development project costs would be apportioned specifically
to CL139 – LLU systems development.
Data Source/s
Development projects cumulative data to period 11 from BTID.
PG823P
BT Own Use Private Circuits
Description
This Plant Group (PG) captures those provision costs of BT own use private circuits, which can be identified directly from the
ledger systems, along with associated overheads.
Methodology
Allocates 100% to the BT Own Use PC Provision component CO823.
237
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
Allocated directly, no data source required.
PG855A
Border Gateway and Signalling Firewall
Description
This Plant Group (PG) captures the Capital costs of the Border Gateway and Signalling Firewall costs contained within Metro
Nodes. The Border Gateway provides a connectivity point or POSI (Point of Service interconnect) for Other Communication
Providers (OCPs) into the 21C network. Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Border Gateway and Signalling Firewall component CN867.
Data Source/s
Allocated directly, no data source/s required.
PG856A
CMASN ISDN2 Cards
Description
This Plant Group (PG) captures the Capital costs of Integrated Services Digital Network 2 (ISDN2) contained within Multi Service
Access Nodes (MSANs). Line cards are the electronic cards in the exchange that provide connectivity to the switch. Types of cost
include depreciation, stores and pay costs.
Methodology
Allocates 100% to the 21CN ISDN2 Cards component CN852.
Data Source/s
Allocated directly, no data source/s required.
PG857A
CMSAN Combo Cards BB element
Description
This Plant Group (PG) captures the capital costs of the Broadband element of Combo Cards contained within Multi Service
Access Nodes (MSANs). Line cards are the electronic cards in the exchange that provide connectivity to the switch. Types of cost
include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Combo Card Broadband component CN854.
Data Source/s
Allocated directly, no data source/s required.
PG858A
CMSAN Combo Cards Voice element
Description
This Plant Group (PG) captures the capital costs of the Voice element of Combo Cards contained within Multi Service Access
Nodes (MSANs). Line cards are the electronic cards in the exchange that provide connectivity to the switch. Types of cost include
depreciation, stores and pay costs.
Methodology
Allocates 100% to the Combo Card Voice component CN853.
Data Source/s
Allocated directly, no data source/s required.
PG859A
CMSAN Control Access
Description
This Plant Group (PG) captures the capital costs of the control and common elements of a Copper Multi Service Access Node
238
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
(MSAN) that are relevant to line cards. Line cards are the electronic cards in the exchange that provide connectivity to the
switch. Types of cost include depreciation, stores and pay costs.
Methodology
The control/common element of the Copper MSAN is exhausted to the line card components that are connected into a Copper
MSAN. The basis of apportionment is the relative number of connections for each service driven by the total volumes for each of
the relevant products currently in the network (both on legacy and 21C equipment). That is, ignoring whether the products have
migrated to use the 21C network or not.
21C migrated volumes are used to derive a split for Broadband and Voice to align with the Combo card split. Elsewhere, in this
case the full volume of 21c In-Scope products are used.
This is because the combo card voice access connexions capital was originally predicated for a full voice migration and is
therefore regarded as a fixed element for voice access.
The line card components that are recipients are:

CN853 Combo Card Voice.

CN854 Combo Card Broadband.
Data Source/s
21C Generic Cost Model and Group Volume forecast.
PG860A
Copper Multi Service Access Node (MSAN) Control Transport
Description
This Plant Group (PG) captures the capital costs of the control and common elements of a MSAN that are relevant to the
transport of calls or traffic through the switch. Types of cost include depreciation, stores and pay costs.
Methodology
The control/common element of the Copper MSAN is exhausted to the traffic and calls components that utilize the Copper
MSAN. The basis of apportionment is the contended relative bandwidth that the relevant products would consume if the total
volume of relevant products currently in the network were migrated onto 21C equipment. That is, ignoring whether the
products have migrated to use the 21C network or not with the exception of Voice where migrated, the volume is used. There is
therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN890 MSAN BB Access.

CN861 MSAN – POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume Forecast.
PG861A
Multi-Service Access Nodes (MSAN) Integrated Services Digital Network30 (ISDN30) cards
Description
This Plant Group (PG) captures the capital costs of ISDN30 contained within MSANs. Line cards are the electronic cards in the
exchange that provide connectivity to the switch. Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the 21CN ISDN30 component CN851.
Data Source/s
Allocated directly, no data source/s required.
PG862A
Multi-Service Access Nodes (MSAN) Low Band Symmetric Digital Subscriber Line (SDSL) cards <=2Mbit/s
Description
This Plant Group (PG) captures the capital costs of SDSL contained within MSANs. Line cards are the electronic cards in the
exchange that provide connectivity to the switch. Types of cost include depreciation, stores and pay costs.
239
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Line Cards are used by Low band data products <=2Mb and ISDN30. The driver for this base is the total volume of underlying
relevant products i.e. two in this case currently in the network were migrated onto 21C equipment. That is, ignoring whether the
products have migrated to use the 21C network or not.
Drives to:

CN851 21C ISDN30.
Data Source/s
21C Generic Cost Model, Group Volume Forecast as at Q3 for the current year.
PG863A
Copper Multi Service Access Node (CMSAN) – Fibre Multi Service Access Node (FMSAN) Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Fibre and Duct) between
a CMSAN and a FMSAN.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN890 MSAN Broadband Access.

CN862 MSAN - POSI Length Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG864A
Copper Multi Service Access Node (CMSAN) – Fibre Multi Service Access Node (FMSAN) Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a CMSAN and a FMSAN. Types
of cost include Non-ETG Pay and Fixed Assets.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN890 MSAN Broadband Access.

CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG865A
Core-Core Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Duct and Fibre) between
a Core Node and another Core Node.
240
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
The PG drives to seven high level product s e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
In the case of Voice there is a variant of POSI-POSI which describes traffic across Core-Core.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN903 Metro - Core.

CN866 POSI - POSI Length Voice.

CN871 MSAN - METRO Length Connectivity.

CN902 IP/VPN METRO-Switching.

CN615 EBD External Length.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG866A
Core-Core Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Core Node and another Core
Node.
Types of cost include Non-ETG Pay, Depreciation and Fixed Assets.
Methodology
The PG drives to five high level product s e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
In the case of Voice there is a variant of POSI-POSI which describes traffic across Core-Core.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN903 Metro - Core.

CN865 POSI - POSI Link Voice.

CN870 MSAN - METRO Link Connectivity.

CN902 IP/VPN Metro Switching.

CN614 EBD External Link.
Data Source/s
21C Generic Cost Model, Group Volume Forecast.
PG867A
Ethernet Network Termination Equipment (NTE)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the customer sited Ethernet NTE.
This is where the BT line from the exchange terminates and allows the customers’ equipment to be connected. Ethernet is the
most widely-installed Local Area Network (LAN) technology. Types of cost include Profit and Loss (P&L) Non-ETG Pay and Fixed
Assets.
Methodology
241
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Allocates 100% to CN901 Ethernet Switches.
Data Source/s
Allocated directly, no data source/s required.
PG869A
Fibre Multi Service Access Node (FMSAN) Control Transport
Description
This Plant Group (PG) captures the Capital costs of the Control and common elements of a FMSAN that are relevant to the
transport of calls or traffic through the switch. Types of cost include depreciation, stores and pay costs.
Methodology
The control/common element of the FMSAN is exhausted to the traffic and calls components that utilise the Copper MSAN. The
basis of apportionment is the relative bandwidth that the relevant products would consume if the total volume of relevant
products currently in the network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to
use the 21C network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN890 MSAN Broadband Access.
Data Source/s
Q3 from the 21C Generic Cost Model, Group Volume forecast.
PG872A
FMSAN TDM cards
Description
This Plant Group (PG) captures the Capital costs of TDM (Time Division Multiplexing) cards contained within Fibre Multi Service
Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the MSAN TDM Card component CN881.
Data Source/s
Allocated directly, no data source/s required.
PG873A
FMSAN to WDM Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Fibre and Duct) between
a Fibre Multi Service Access Node (MSAN) and a WDM (Wave Division Multiplexing) MSAN.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN857 MSAN - BRAS Length BB.

CN862 MSAN - POSI Length Voice.

CN890 MSAN BB Access.
242
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG874A
Fibre Multi Service Access Node (FMSAN) to Wave Division Multiplexing (WDM) Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a FMSAN and a WDM MSAN.
Types of cost include Non-ETG Pay, Depreciation and Fixed Assets.
Methodology
The PG drives to two high level products e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN890 MSAN Broadband Access.

CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG875A
Intelligence node (iNode) - Network features
Description
This Plant Group (PG) captures the Capital costs of Network Features functionality contained within iNode. The iNode represents
the part of the network that contains intelligence associated with routing, verifying and controlling end to end service. Line
cards are the electronic cards in the exchange that provide connectivity to the switch. Types of cost include depreciation, stores
and pay costs.
Methodology
Allocates 100% to the iNode Features component CN855.
Data Source/s
Allocated directly, no data source/s required.
PG876A
Intelligence node (iNode) - Voice Call Set-Up
Description
This Plant Group (PG) captures the Capital costs of Voice Call Set-Up functionality contained within iNode. The iNode represents
the part of the network that contains intelligence associated with routing, verifying and controlling end to end service. Line
cards are the electronic cards in the exchange that provide connectivity to the switch. Types of cost include depreciation, stores
and pay costs.
Methodology
Allocates 100% to the iNode Voice Call Set-Up component CN868.
Data Source/s
Allocated directly, no data source/s required.
PG877A
ISDN30 Network Termination Equipment (NTE)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the ISDN30 Customer sited NTE.
This is where the BT line from the exchange terminates and allows the customers’ equipment to be connected. Types of cost
include depreciation, stores and pay costs.
243
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates 100% to the ISDN30 Access component CL189.
Data Source/s
Allocated directly, no data source/s required.
PG878A
Metro Broadband Layer2 Network Server (BB LNS)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BB LNS. Types of cost include
depreciation, stores and pay costs. The L2TP (Tunnelling Protocol) Network Server is the Layer 2 Network Server.
Current there are only a few Test LNS boxes designed to test connectivity. The LNS boxes are still to be designed for the
network. When the boxes are finally designed and deployed, they will be used to provide a Routed Internet Protocol (IP) service.
Methodology
Allocates 100% to the Core/Metro Broadband component CN904 Core-Metro Broadband Provider Link.
Data Source/s
Allocated directly, no data source/s required.
PG879A
METRO Broadband Layer 3 (BBL3)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BBL3. Types of cost include
depreciation, stores and pay costs.
BBL3 is a device used to interface 21C Broadband to the internet. Traffic is either switched directly to the internet, or looped via
CP cages where additional packet processing may be carried out before onward transmission.
Methodology
Allocates 100% to the Core/Metro Broadband component CN860.
Data Source/s
Allocated directly, no data source/s required.
PG880A
METRO Broadband Edge Aggregator (BEA)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BEA. Types of cost include
depreciation, stores and pay costs.
BEAs are planned to be deployed across all 21CN Core Point of Presence (PoP).
A BEA is essentially the device which a Communication Provider (CP) will interface to, in order to aggregate its traffic from all the
Broadband Remote Access Server (BRAS) located within a PoP. Initially a BEA will aggregate a single Logical PoP or 8 BRASs.
Methodology
Allocates 100% to the Core/Metro Broadband component CN860.
Data Source/s
Allocated directly, no data source/s required.
PG881A
METRO Broadband Remote Access Server (BRAS)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BRAS. BRAS routes traffic to
and from the digital subscriber line access multiplexers (DSLAM) on an Internet service provider's (ISP) network. The BRAS sits at
the core of an ISP's network, and aggregates user sessions from the access network.
Types of cost include depreciation, stores and pay costs.
244
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates 100% to the Core/Metro component CN860.
Data Source/s
Allocated directly, no data source/s required.
PG882A
METRO Front End Router (FER)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the FER.
Types of cost include depreciation, stores and pay costs.
The FERs are used to connect to Communications Providers (CPs) for the Aggregated Wholesale Broadband Managed Connect
(WBMC) service. They provide load-balancing and shaping/policing functions.
Traffic from the Core to the L2 MPLS (Multi-Protocol Label Switching) network via the FERs will be over L2TP (Tunnelling
Protocol) tunnels (for L2TP Pass through). Routed IP (for the Home Gateway Service) will not be offered on day 1.
The FER’s interface with the PE (Provider Edge) Routers on the L3 Core Network and the IEA (Infrastructure Edge
Aggregation)/P routers on the Layer 2 MPLS Core Network.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
Methodology
Allocates 100% to the Core/Metro Broadband component CN904 21c BB Service Provider Link.
Data Source/s
Allocated directly, no data source/s required.
PG885A
Metro-Core Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission length related elements (Duct and Fibre) between
a Metro Node and a Core Node.
Methodology
The PG drives to eight high level products e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN903 Metro - Core.

CN862 MSAN - POSI Length Voice.

CN871 MSAN - METRO Length Connectivity.

CN902 - Metro IP/VPN.

CN615 EBD External Length.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG886A
Metro-Core Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Metro Node and a Core
245
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Node. Types of cost include Current Non-ETG Pay, Depreciation and Fixed Assets.
Methodology
The PG drives to five high level products e.g. Voice, specific transmission components based on the relative contended
bandwidth that these products would consume if the total volume of underlying relevant products currently in the network were
migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the
exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN903 Metro - Core.

CN861 MSAN - POSI Link Voice.

CN870 MSAN - METRO Link Connectivity.

CN902 Metro - IP/VPN.

CN614 EBD External Link.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG887A
METRO-Edge Ethernet Bandwidth
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Edge Ethernet Bandwidth.
Types of cost include depreciation, stores and pay costs.
The Edge Ethernet Bandwidth is used to groom Virtual Local Area Networks (VLANs) from the Multi-Service Access Nodes
(MSANs) to the relevant Metro device such as the Voice PE using Pseudo-Wire Emulation (PWE) tunnels (across the core if
necessary). It is also used to provide point to point connectivity for Broadband traffic via Pseudo-Wire Emulation Edge to Edge
(PWE3) tunnels.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:

CN860 - Core/Metro (broadband).

CN869 - Core/Metro (voice).

CN878 - Core/Metro (Connectivity).

CN879 - Core/Metro (connectivity) OR.

CN902 - Metro IP/VPN.
Data Source/s
Generic 21CN cost model.
PG888A
METRO-Edge Ethernet Port
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Edge Ethernet Port.
The Edge Ethernet Port terminates:

VLAN - Virtual Local Area Networks.
246
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

MSIL - Multi Service Interconnect Link.

Ethernet services.
Types of cost include depreciation, stores and pay costs.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
The components that are recipients are:

CN883 - Edge Ethernet ports voice.

CN884 - Edge Ethernet ports broadband.

CN885 - Edge Ethernet ports connectivity.

CN902 - Metro IP/VPN.

CN886 - Edge Ethernet ports connectivity OR.

CN905 - MSIL (Multi Service Interconnect Link).
Data Source/s
Generic 21CN cost model.
PG889A
METRO-Infrastructure Ethernet
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Infrastructure Ethernet.
Types of cost include depreciation, stores and pay costs.
The infrastructure switches are used to provide basic fast, Gigabit and 10 Gigabit Ethernet connectivity within a metro node and
Intelligent Node (iNode) function.
They are used to give efficient port utilisation on the expensive PE (Provider Edge) router Ethernet interfaces and because they
provide higher port densities for low-speed interfaces than are typically available on PE routers. The switches are not customerfacing and therefore do not require complex edge features or Virtual Private LAN Services (VPLS) capabilities.
Methodology
Allocated directly (100%) to CN869 Core/Metro (Voice).
Data Source/s
Allocated directly, no data source/s required.
PG890A
METRO-Media Gateway
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Media Gateways.
Types of cost include depreciation, stores and pay costs.
The Media GateWay (MGW) components provide inter-working between the transformed 21C Public Switched Telephone
Network (PSTN) packet switched Internet Protocol (IP) domain and the legacy PSTN circuit switched Time Division Multiplexing
(TDM) domain. They are deployed at Metro Nodes and operate under the control of the Ericsson CSs using the ETSI TISPAN
H.248 protocol for Bearer Control. They connect to the legacy PSTN at Next Generation Switch (NGS).
Methodology
Allocates 100% to the Core/Metro Voice component CN869.
Data Source/s
247
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Allocated directly, no data source/s required.
PG892A
METRO-Sync Racks
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Sync racks.
Types of cost include depreciation, stores and pay costs.
Each Core/Metro Point of Presence (PoP) is equipped with sync equipment to ensure that accurate timing is maintained across
the BT network. The sync equipment provides reference clock to equipment within the PoP (e.g. Media Gateway) down to the
Multi-Service Access Nodes (MSANs).
Methodology
Allocates 100% to the Core/Metro Voice component CN869.
Data Source/s
Allocated directly, no data source/s required.
PG893A
METRO-Voice Routers
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Voice Router.
Types of cost include depreciation, stores and pay costs.
The PE (Provider Edge) routers provide the customer interfaces to the Internet Protocol (IP)/ Multi-Protocol Label Switching
(MPLS) network, receiving customer traffic and encapsulating it as MPLS frames for transmission across the core of the network.
The PE routers therefore require a range of interface types to support the different customer access requirements and typically
make use of complex edge features such as traffic shaping and policing. Gigabit or 10 Gigabit Ethernet interfaces with the
necessary edge features are normally used for customer interfaces, connecting either to the infrastructure Ethernet switch, the
aggregation switch or directly to the access transmission equipment, as appropriate.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
The components that are recipients are:

CN869 Core/Metro Voice.

CN860 Core/Metro BB.

CN878 Core/Metro Connectivity.

CN879 Core/Metro Connectivity OR.

CN902 Metro IP/VPN.
Data Source/s
Allocated directly, no data source/s required.
PG895A
P Router (large) CORE
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the P Router.
Types of cost include depreciation, stores and pay costs.
The P Routers in the Core nodes (Provider routers) form the core of the network, aggregating traffic from a number of Provider
Edge (PE) routers and connecting to P routers in other Point of Presence (PoP) across wide-area transmission links. P Routers
are therefore equipped with high capacity interfaces at 10Gbit/s speeds using 10Gbit/s Ethernet links to the PE Routers and
248
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Synchronous Transport Module (STM) 64 links to the transmission equipment.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
The components that are recipients are:

CN860 - Core/Metro (broadband).

CN869 - Core/Metro (voice).

CN878 - Core/Metro (Connectivity).

CN879 - Core/Metro (connectivity) OR.

CN902 - Metro IP/VPN.
Data Source/s
Generic 21CN cost model.
PG896A
P (Provide) Router METRO
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the P Router.
Types of cost include depreciation, stores and pay costs.
The P Routers in the METRO nodes (Provider Routers) form the core of the network, aggregating traffic from a number of
Provider Edge (PE) Routers and connecting to P Routers in other Point of Presence (PoP) across wide-area transmission links. P
Routers are therefore equipped with high capacity interfaces at 10Gbit/s speeds using 10 Gigabit Ethernet links to the PE
Routers and Synchronous Transport Module (STM) 64 links to the transmission equipment.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
The components that are recipients are:

CN860 - Core/Metro (broadband).

CN869 - Core/Metro (voice).

CN878 - Core/Metro (Connectivity).

CN879 - Core/Metro (connectivity) OR.

CN902 - Metro IP/VPN.
Data Source/s
Generic 21CN cost model.
PG898A
Time Division Multiplexer Specific X Connects
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the TDM (Time Division
Multiplexer) Specific X connect. Cross connect supporting TDM based connections (e.g. TDM services and connectivity to
existing voice platform) and termination of Ethernet over Generic Framing Procedure (GFP) streams from Multi Service Access
Nodes (MSANs).
Types of costs include Depreciation, Non-ETG Pay and Fixed Assets.
249
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates 100% to the Core/Metro (Connectivity) component CN878.
Data Source/s
Allocated directly, no data source required.
PG899A
Wave Division Multiplexing (WDM) to Metro links Link
Description
This Plant Group captures the Capital costs associated with transmission electronics between WDM Multi Service Access Node
(MSAN) and a Metro Node.
Types of costs include Depreciation, Non-ETG Pay and Fixed Assets.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative contended
bandwidth that these products would consume if the total volume of underlying relevant products currently in the network were
migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the
exception of Voice where migrated, the volume is used.
An allocation is also made to EBD Main Links based on the future benefit principle on the proportion of bandwidth consumed by
migrated Harmonised Ethernet with respect to WES and BES products.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN861 MSAN - POSI Link Voice.

CN870 MSAN - METRO Link Connectivity.

CN887 Unregulated Ethernet Backhaul.

CN888 EBD Main Links.

CN856 MSAN - BRAS Link BB.

CN614 EBD External Link.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG900A
Wave Division Multiplexing (WDM) to Metro links: Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission length related elements (Duct and Fibre) between
WDM Multi Service Access Node (MSAN) and a Metro Node.
Methodology
The PG drives to eight high level products e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
An allocation is also made to EBD Main Links based on the future benefit principle on the proportion of bandwidth consumed by
migrated Harmonised Ethernet with respect to WES and BES products.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:

CN862 MSAN - POSI Length Voice.

CN871 MSAN - METRO Length Connectivity.

CN887 Unregulated Ethernet Backhaul.
250
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

CN888 EBD Main Links.

CN857 MSAN - BRAS Length BB.

CN615 EBD External Length.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG901A
21 CN ETHERNET SWITCHES
Description
This Plant Group (PG) captures the Capital costs associated with Ethernet Switches. Ethernet is the most widely-installed local
area network (LAN) technology.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
The components that are recipients are:

CN901 Ethernet Switches.

CN891 Ethernet Switch BB.
Data Source/s
Generic 21CN cost model.
PG902A
Ethernet Switch Customer Access Cards
Description
This Plant Group (PG) captures the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation)
This Plant Group (PG) captures the Capital costs of Ethernet Switch Customer Access Cards contained within Ethernet Switch.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for
this service and therefore serves as a tool to allocate costs.
The components that are recipients are:

CN890 MSAN-Broadband Access
Data Source/s
Allocated directly, no data source/s required.
PG911A
Operator Services Operator Assistance - Inland
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on Inland Operator Assistance (OA) 100 and 999
calls. Customers dial 100 (OA) and speak to an Operator if they require help making a call.
Type of costs includes Depreciation, Travel and Subsistence, Non-ETG Pay and Fixed Assets.
Methodology
251
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
This PG is apportioned to Operator Assistance (OA) components:
CO911 National Operator Assistance.
CO919 Emergency operator assistance (999).
CO941 National OA non chargeable.
CO942 Emergency OA - 999 non chargeable.
CO943 Payphones OA non chargeable.
The apportionment is based on average total operator handling time and volume of calls for both services. Central Data Store
(CDS) and Call Statistics Centralisation System (CSCS) are the data sources for total calls to all operator assistance Products which
include this PG and the Operator Services OA International PG PG912A. Also used is the Operfile, this being a spreadsheet used
to derive apportionment information for Operator and Directory Assistance costs. The file is a summary of information from a
variety of other data sources and is updated monthly on a cumulative basis.
Data Source/s
Inland and International Directory Assistance (DA).
Central Data Store (CDS).
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA).
Call Centre Management Information Systems (CCMIS).
CSCS (for Retail chargeable).
6A Report (for Wholesale Chargeable).
PG912A
Operator Services Operator Assistance - International
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on International Operator Assistance (IOA) 155
calls. Customers dial 155 (IOA) and speak to an International Operator if they require help making a call to a foreign country.
Methodology
This is achieved through a Period 12 Operfile, this being a spreadsheet used to derive apportionment information for Operator
and Directory Assistance costs. The file is a summary of information from a variety of other data sources and is updated monthly
on a cumulative basis.
The costs are apportioned to the following components based on average operator handling times and volumes of calls
generated by each type of call:

International OA (CO912).

Emergency OA (999) non-chargeable (CO942).
Data Source/s
Inland and International Directory Assistance (DA).
Central Data Store (CDS).
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA).
Call Centre Management Information Systems (CCMIS).
CSCS, (for Retail chargeable) and 6A Report (for Wholesale Chargeable).
PG933A
Phonebooks
Description
This Plant Group (PG) captures the Profit and Loss (P&L) Non-ETG pay, Transfer charge etc. and Balance Sheet costs of
Phonebook compilation.
252
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Costs for Phonebook compilation are made up of a mixture of direct and internal trading costs for paper, printing, binding,
delivery, freight. At the top level, the internal charges net off to zero.
Methodology
Allocates 100% to the Directories component CKT12.
Data Source/s
Allocated directly, no data source required.
PG950C
GEA Access Fibre Spine
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of NGA fibre cable in the access
network i.e. the network between the local exchange and a BT Intermediate node (Cabinet). This includes costs associated with
clearing existing duct (to allow cable to be installed), jointing and spine cable (splicing). Specifically this PG captures costs from
the following areas/functions:

Pay costs associated with the installation of NGA access fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding fibre to the access network.

Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).

Depreciation costs from the following CoW – Local Fibre Spine Cable (LFSC).
Methodology
Allocates 100% to GEA Fibre Spine component CL950.
Data Source/s
Circuit volumes supplied from Openreach.
PG950M
GEA Access Fibre Spine Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with the provision, installation and recovery of NGA fibre cable
in the access network i.e. the network between the local exchange and a BT Intermediate node (Cabinet). This includes costs
associated with clearing existing duct (to allow cable to be installed), jointing and spine cable (splicing). Specifically this PG
captures costs from the following areas/functions:

Pay costs associated with the installation of NGA access fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding fibre to the access network.

Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).

Depreciation costs from the following CoW – and Local Fibre Spine Cable (LFSC).
Methodology
Allocates 100% to GEA Fibre Spine component CL950.
Data Source/s
Circuit volumes supplied from Openreach.
PG951C
GEA Distribution Fibre
253
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of NGA fibre cable in the access
network (i.e. the network between the Intermediate node (cabinet) and the customer premises). This includes costs associated
with clearing existing duct (to allow cable to be installed), jointing distribution (splicing). Specifically this PG captures costs from
the following areas/functions:

Pay costs associated with the installation of NGA access fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding fibre to the access network.

Costs associated with installing optical spine cable between the Intermediate node and the customer premises.

Depreciation costs from the following CoW – and Local Fibre Spine Cable (LFDC).
Methodology
Allocates 100% to the GEA Distribution fibre component CL951.
Data Source/s
Circuit volumes supplied from Openreach.
PG951M
GEA Distribution Fibre Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with the provision, installation and recovery of NGA fibre cable
in the access network i.e. the network between the Intermediate node (cabinet) and the customer premises. This includes costs
associated with clearing existing duct (to allow cable to be installed), jointing distribution (splicing). Specifically this PG captures
costs from the following areas/functions:

Pay costs associated with the installation of NGA access fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding fibre to the access network.

Costs associated with installing optical spine cable between the Intermediate node and the customer premises.

Depreciation costs from the following CoW – and Local Fibre Spine Cable (LFDC).
Methodology
Allocates 100% to the GEA Distribution fibre component CL951.
Data Source/s
Circuit volumes supplied from Openreach.
PG952C
GEA Electronics
Description
This Plant Group (PG) captures the NGA costs associated with the provision, rearrangement, recovery, replacement and renewal
of NGA Local Access Network equipment at the exchange end of Local Access Optical Fibre Cables.

Pay costs associated with the installation of NGA access fibre.

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of NGA Electronics.

Planning costs.

Costs associated with installing optical spine cable between the Intermediate node and the customer premises.

Depreciation costs from the following CoW – Construction of local line exchange service module (LFXE).
254
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates 100% to the GEA electronics component CL952.
Data Source/s
Allocates directly, no data source required.
PG953C
GEA DLAMs and Cabinets
Description
This Plant Group (PG) includes the NGA costs associated with the DSLAM cabinets, cabinet shells, and cabinet tie cables relevant
for installation /provision.

Pay costs associated with the installation of NGA DSLAM and Cabinets.

Contract costs associated with renewal DSLAM and Cabinets.

Planning costs.

Depreciation costs from the following CoW – Construction, Local Network Service Module Equipment (LFME).
Methodology
Allocates 100% to the GEA DSLAM and cabinet component CL953.
Data Source/s
Allocated directly, no data source required.
PG954C
GEA Customer Sited Installation
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of NGA Customer sited
equipment. Specifically this PG captures costs from the following areas/functions.

Pay costs associated with the installation of NGA Customer sited Installs.

Indirect costs of Customer sited Installs.

Contract costs.

Planning costs.

Depreciation costs from the following CoW – Customer Premises Provision (FTTX).
Methodology
Allocates 100% to the GEA Customer Sited Installations component CL954.
Data Source/s
Allocated directly, no data source required.
PG955M
GEA FTTC Repairs
Description
This Plant Group (PG) includes the NGA FTTC costs associated with the repair/ maintenance of the head end electronics, and
DSLAM cabinets and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTC Repairs component CL955.
Data Source/s
Allocated directly, no data source required.
255
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG956M
GEA FTTP Repairs
Description
This Plant Group (PG) includes the NGA FTTP costs associated with the repair / maintenance of the head end electronics, and
DSLAM cabinets and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTP Repairs component CL956.
Data Source/s
Allocated directly, no data source required.
PG957P
GEA FTTP Provisions
Description
This Plant Group (PG) includes the NGA FTTP costs associated with the Provision of the head end electronics, and DSLAM
cabinets and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTC Provision component CL957.
Data Source/s
Allocated directly, no data source required.
PG958P
GEA FTTC Provisions
Description
This Plant Group (PG) includes the NGA FTTC costs associated with the Provision of the head end electronics, and DSLAM
cabinets and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTC Provision component CL958.
Data Source/s
Allocated directly, no data source required.
PG959C
Access Distribution Fibre
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of fibre cable in the access
network i.e. the network between the Node and customer’s premises (see diagram) or fibre installed up to street multiplexers.
Exchange
Customer
Node
S pine C able
D is tribution C able
This includes costs associated with clearing existing duct (to allow cable to be installed), jointing distribution. Specifically this PG
captures costs from the following areas/functions:

Pay costs associated with the installation of access fibre.
256
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)

Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).

Contract costs associated with renewal of optical fibre.

Planning costs, adding fibre to the access network.

Costs associated with installing fibre between the node and a customer (direct feed).

Costs associated with installing distribution fibre or street optical Multiplexors (MUX).

Depreciation costs from the following CoW – Local Fibre Distribution Cable (LFDC).
Methodology
Apportionment to component is based on data supplied via the Core Transmission Circuit costing System (CTCS), using circuits
and bearer volumes as at Period 6. The data used from CTCS (refer to Data Source section) includes the percentage of fibre
bearer capacity used by a particular circuit (component).
CTCS provides the volumes of circuits over a bearer which is then converted into 2Mb equivalents. These are weighted by circuit
bandwidth usage of the various bearers.
Data Source/s
Circuits and Bearer Volumes from CTCS for Period 6. Management believes this period to be reflective of the full year.
PG980R
Openreach Repayment Works
Description
This Plant Group (PG) captures the Profit and Loss (Stores, non-ETG pay) and Balance Sheet (Fixed Asset GBV) costs of
Openreach repayment works.
Repayment Work’s main role is to ensure the integrity and protection of BT apparatus, where the highway infrastructure is
required to be altered due to promoting authority works under an act of parliament and protecting the network from damage as
a result of third party works.
The main direct classes of works (CoW) are, HK, HM, HO, HE, HPL, HDM, HUR, HSW, HL HNE.
Methodology
Allocates 100% to the Openreach Repayment Works component CK980.
Data Source/s
Allocated directly, no data sources required.
PG981R
Openreach Time Related Charges
Description
This Plant Group (PG) captures Profit and Loss (non-ETG pay) and Balance Sheet (Fixed Asset GBV) costs associated with time
scale charges. Time scales charges refer to time spend on planned/ Unplanned jobs when a timescale charge is appropriate.
Costs are allocated to the following classes of work (CoW):

TRC Timescale-Time Related charging.

CNS - Customer Network Services.

NWKB - Non Capital P&I Exchange Lines (Business).

NWKR - Non Capital P&I Exchange Lines (Residential).

CoW stating with AP/AM.
Methodology
Allocates 100% to the Openreach Time Related charges component CK981.
Data Source/s
Allocated directly, no data sources required.
257
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
PG982R
Openreach Managed Services for Wholesale
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Wholesale Products and
services or activities, as defined by ASPIRE. The costs are mainly be pay in nature, although there will be some depreciation and
stores costs.
Methodology
Allocates 100% to the Openreach Managed Services for Wholesale component CK982.
Data Source/s
Allocated directly, no data sources required.
PG984R
Openreach Managed Services for Global
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Global Services or
activities, as defined by ASPIRE. It will mainly be pay in nature, although there will be some depreciation and stores costs.
Methodology
Allocates 100% to the Openreach Managed Services for Global component CK984.
Data Source/s
Allocated directly, no data sources required.
PG985R
Openreach Managed Services for Retail Other
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Retail Products and
services or activities, as defined by ASPIRE. It will mainly be pay in nature, although there will be some depreciation and stores
costs.
Methodology
Allocates 100% to the Openreach Managed Services for Retail Other component CK985.
Data Source/s
Allocated directly, no data sources required.
PG986R
Openreach Other Activities
Description
This Plant Group (PG) captures the income for Openreach other activities on F8 Code 209942 Miscellaneous other operating
income.
Methodology
Allocates 100% to the Openreach Other Activities component CK986.
Data Source/s
Allocated directly, no data sources required.
PG989A
Special Fault Investigation (SFI)
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet costs
of SFI.
A Local Loop Unbundling (LLU) SFI can be initiated by an LLU Communications Provider (CP) when a Metallic Path Facility
(MPF) or Shared Metallic Path Facility (SMPF) tests OK on the Openreach line test system, but where there might be a problem
with the CP’s Asymmetric Digital Subscriber Line (ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
258
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting problems.
Methodology
Kilo Man Hours (KMH) Reports provided, obtained from the Openreach Demand and Forecast Planning team will be used to
identify the number of man hours booked to the SFI activity. A man hour rate will then be applied to derive the total SFI cost
that will be pointed to this PG.
This PG exhausts 100% to component CO989 – Special Fault Investigations and then onwards to SL989 – Openreach External
SFI and SO480B Openreach Internal SFI. The allocation to the internal and external SFI services will follow the internal external
volume split. The rationale for this methodology is that this is the only data available that provides an internal /external split for
the SFI activity.
Data Source/s
KMH volumes from the Openreach Demand and Forecast Planning team.
PGT01N
Line Cards trade
Description
This Plant Group (PG) captures the costs of internal trade for Line Cards which provides routing functionality. This PG contains
both the revenue earned by BT Wholesale and the related payment made by Openreach therefore netting off to zero. This PG
has no visibility in the reported regulatory statements but it allows for a Line of Business (LoB) view of the Wholesale Line Rental
(WLR) costs.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT02N
Backhaul Electronics trade
Description
This Plant Group (PG) captures the costs of internal trade for Backhaul Electronics between BT Wholesale and Openreach. This
PG contains both the revenue earned by BT Wholesale and the related payment made by Openreach netting off to zero. This PG
has no visibility in the reported Regulatory Statements but it allows for a Line of Business (LoB) view of backhaul costs.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT03N
Access Electronics trade
Description
This Plant Group (PG) captures the internal trade for Access Electronics. This PG contains both the revenue earned by BT
Wholesale and the related payment made by Openreach therefore netting off to zero. This PG has no visibility in the Reported
Regulatory statements but it allows for a Line of Business (LoB) view of private circuit costs.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT04N
WES/BES Electronics trade
Description
This Plant Group (PG) captures costs for internal trade for WES/BES electronics. This PG contains both the revenue earned by BT
Wholesale and the related payment made by Openreach therefore netting off to zero. This PG has no visibility in the reported
259
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Regulatory Statements but it allows for a Line of Business (LoB) view of Ethernet Products costs.
Wholesale Extension Services (WES) is a high speed, point to point data circuit which is run over fibre to provide a secure link
between a third party customer site and the communication provider’s (CP) network.
Backhaul extension Service (BES) is a high speed, point to point data circuit which is are run over fibre to provide a secure link
between a Local Loop Unbundling (LLU's) operators equipment at a unbundled Main Distribution Frame (MDF) site and a site
within an operators own network.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT05N
Local Loop Unbundling (LLU) Power and ventilation trade
Description
This Plant Group (PG) captures the costs of internal trade for LLU Power and Ventilation. The trade is between Wholesale and
Openreach.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT06N
Network Features trade
Description
This Plant Group (PG) captures the costs of internal trade for Network Features. This PG contains both the revenue earned by BT
Wholesale and the related payment made by Openreach. This PG has no visibility in the reported Regulatory Statements but it
allows for a Line of Business (LoB) view of Network Features costs.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT07N
Network managed service Selling, General and Administration (SG&A) trade
Description
This Plant Group (PG) captures the SG&A costs of Network managed services
This PG contains both the revenue earned by BT Wholesale and the related payment made by Openreach netting off to zero. This
PG has no visibility in the reported regulatory statements but it allows for a Line of Business (LoB) view of this trade.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
PGT11M
Light User Scheme (LUS) trade in
Description
This Plant Group (PG) captures the costs of the Light User Scheme internal trade. The LUS is designed to help people who need a
phone to keep in touch but actually make few phone calls themselves. The LUS gives a rebate for residential customers with low
telephone usage.
260
Detailed Attribution Method (DAM) 2012
Section 6 – Plant Group Dictionary
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix E for Key Destinations)
Methodology
Allocates 100% to the LUS trade in component CKT11.
Data Source/s
Allocated directly, no data sources required.
261
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7 Network Component Allocations - Network Charging
7.1 Overview
Our total network costs are disaggregated into a number of network components. Network components are used in the
provision of Wholesale Services. The way in which network components receive costs is by the attribution methods
described in detail in earlier sections of the DAM. This section describes how these component costs are charged to Retail
Residual products.
In this section it is important to bear in mind the distinction between a “charge” – which is the revenue amount generated
from providing a service – and “cost” – which is the cost of providing that service.
7.1.1 Wholesale Markets Costs
The total costs of the Wholesale Markets are given simply by aggregating the costs of the network components. However, it
is necessary to attribute that total cost to individual wholesale services. For services provided on a cost basis, the cost to
Wholesale Markets of providing such service is the cost of each component used in providing the service. For some
Wholesale Services, the calculation of the cost of service provision is more complicated, as each service represents the
utilisation of one or more network components, and its cost is therefore determined by an attribution of component costs.
This attribution can involve the calculation and application of route factors, usage factors or other appropriate basis of
apportioning components costs.
Components are either used in the provision of services for which there is a published price, or are used by themselves and
charged on a cost basis. Cost basis services arise in markets in which BT has not been found to have significant market
power.
Network components represent the collection of various different cost types. One of the distinguishing features of a
component is that it would usually have a single cost driver. Call switching is consumed in the provision of minutes of
conversation time, and so conversation time is used as the cost driver for switching costs. In the case of switching,
component costs or charges flow to downstream retail products via services pro-rata to the volume of call minutes
generated by each product or service.
7.1.2 Wholesale Market Revenues
Wholesale Market revenues are from network charges made to BT or to Other Communication Providers (OCPs).
The bases of charging are as follows:
In most cases, a published price is used as the basis of charging for the provision of Wholesale Services. Wholesale Services
are sold both externally to OCPs and internally to BT’s retail activities. These services will use one or more network
components.
At a ‘cost’ price, services provided on a Historical Cost Accounting (HCA) cost basis, are most usually but not exclusively
provided internally to BT’s own downstream Retail Markets.
The following sections set out:

An overview of network component and Wholesale Service volumes, including discussion of Route/Usage factors.

Discussion of the cost basis of charging.

Charging to downstream Retail Residual products.

Wholesale Market Statements.

A table showing components charged on a cost basis.

A table showing the Wholesale Service destinations of the costs of components recovered via Wholesale Service
charging.

Diagrams of the various route and call types that determine conveyance costing and charging.
7.1.3 Network Component Volumes
The charge made to each downstream Retail Residual product is driven by the volume of that product sold/used during the
year. The product volume also defines the component volumes via the application of Route/Usage factors.
262
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7.1.3.1 Conveyance Products and Components
Where Retail Residual products incur a cost charge, their volumes drive the component volumes directly. Typically, where a
product is carried across a number of components, the product volume can be applied directly to each component.
Since each component may support more than one product, the total component volume is determined by aggregating the
volume of each product that uses it.
If component Z is utilised by products A, B and C, which generate 150, 250 and 100 minutes of use respectively, then
component Z has a total volume of 500 minutes.
In some cases, one product may utilise a component more intensively than another. In this case it is necessary to factor the
product volumes. Taking the example above, if it is necessary for product C to utilise component Z twice in each minute,
then the total volume of usage of component Z is 600 minutes (150 + 250 + (100x2)). It is necessary to know the
utilisation rate of each component by each product. This relationship gives the factored volume for each component.
For the utilisation rate to be calculated, we measure calls on the network. It is not practical to measure all calls for every day
of the reporting period (in excess of 90 billion), for the purposes of network management, each telephone exchange
monitors one call in 300 passing through it. Using this facility, combined with a suitable periodicity (28 days), a statistically
significant call sample of approximately 45 million calls can be extracted from which the utilisation factors are calculated.
For each call in the sample, its routing is determined from the switch record. Each call has a switch record, this captures its
routing detail, of how the call has been carried over the network, and generates such details as distance, and the number of
times the call passes through any given component (such as a local exchange).
The sample therefore gives an observed relationship between the provision of products and the utilisation of conveyance
components.
This is illustrated as follows, (note that route types are considered further below).
Product 1
Total
Route Type
Minutes
1
200
2
100
3
80
4
20
Total
400
Utilisation Factor
%
50
25
20
5
100
A
200
100
80
20
400
1
Component utilisation
B
C
100
80
20
200
0.5
D
200
200
80
20
500
1.2
Conveyance products and components
This result shows that for the sample of 400 minutes of call duration generated by product 1, there is total minute
utilisation of component A of 400, giving a utilisation factor of 1 (400/400). For component D, there is a total utilisation of
500 minutes, so the utilisation factor is 1.2 (500/400).
Product 2
Total
Route Type
Minutes
1
200
2
100
3
4
Total
300
Utilisation Factor
%
75
25
A
200
100
100
300
1
Component utilisation
B
C
400
200
600
2
D
100
50
150
0.5
Conveyance products and components
Similarly, it shows that for the sample of 300 minutes of call duration generated by product 2, there is total minute
utilisation of component A of 300, giving a utilisation factor of 1 (300/300). For component D, there is a total utilisation of
150 minutes, so the utilisation factor is 0.5 (150/300).
In order to obtain the total factored volume for each conveyance component for the full year, we take the product volumes
and apply the sampled utilisation factors (e.g. product volumes x utilisation factor = factored component volume).
If Product 1 has a full year volume of 8,000 minutes, then it has generated utilisation of 8,000 minutes of component A
and 9,600 minutes of component D. Similarly, if Product 2 has a full year volume of 3,000 minutes, then there is utilisation
of component A of 3,000 and of component D of 1,500.
263
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
By aggregating the result for each product, we get a total factored volume for each component. Following the illustration
above, the factored volume for component A is 11,000 minutes, and 11,100 minutes of component D.
In order to obtain a unit cost for each component, divide the component cost (derived from Plant Group (PG) and other
cost attributions described elsewhere) by the factored volume for each component.
7.1.3.2 Transmission Volumes (including Partial Private Circuit components)
Transmission costing is based on the Core Transmission Circuit costing System (CTCS).
In simple terms, CTCS is an inventory of all circuits. Every circuit in the network is tagged and details of its route length and
routing are recorded. An example of the detail captured in CTCS is as follows:

The number of 2Mbit/s circuits that use 34Mbit/s bearers, and the total length of those circuits
(length is the appropriate volume for attributing the cost of 34Mbit/s bearers).

The number of 34Mbit/s circuits that use 34Mbit/s bearers, and the total length of those circuits.
By factoring the volumes we can take account of the fact that 16 2Mbit/s circuits can be carried on a 34Mbit/s bearer,
whilst alternatively it can carry only one 34Mbit/s circuit. CTCS, also tells us what is the total circuit length carried over
34Mbit/s bearers. Costs can then be attributed on the basis of the number of kilometres of 34Mbit/s bearers used by
2Mbit/s circuits.
The detailed workings of CTCS are considered more fully in the data source section of the DAM (section 9).
7.1.3.3 Other volumes
For other components, the volume is determined consistent with the principles outlined above. Where there is a one-forone relationship between the product and the component, then there is a direct relationship between the product volume
and the component volume. Where the relationship is not so straightforward, it is necessary to take account of different
utilisation rates by factoring the component volume.
7.1.3.4 Data sources for Volumes
Volumes are supplied from the data source most appropriate to each product consistent with reliability and ease of data
access. The major data sources used to provide volumes are as follows:
Call Statistics Centralisation System (CSCS)
Inter Network Call Accounting (INCA)
Powerhouse/Hyperion
Charge Raising System (CRS)
Integrated Network System (INS)
Planning Assignment and Configuration System (PACS)
Core Transmission Circuit costing System (CTCS)
Customer Oriented System for Management of Special Services
(COSMOSS)
Operator Report Generation System (ORGS)
Multi Services Intranet Platform Model (MSIP)
Data Sources for Volumes_Diagram
7.1.4 Conveyance Wholesale Service Volumes
There are four different route types specified for Regulatory Accounting purposes:
Route Type 1 - Own Exchange.
Route Type 2 - Adjacent Exchange.
Route Type 3 - Single Tandem.
Route Type 4 - Double plus Tandem.
These are illustrated further in Section 7.9.1.
These route types are applied to each one of a number of call types. These call types are illustrated further in Section 7.9.1.
264
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
For each call type, there are therefore four possible different route types across which a call can be carried and each one of
those route types represents a defined set of Wholesale Services. For example, each call of BT to BT type that takes route
type 2 utilises the Call Origination Local Exchange and the Call Termination Local Exchange Wholesale Services.
There is also a defined usage factor for each Wholesale Service comprising the route. Typically, the usage factor is 1.
However for route type 1, which defines a call that passes to a local exchange and then is terminated, the Wholesale
Services used are call origination and call termination. The usage factor on route type 1 for each of these Wholesale Services
is 0.5 (see route type diagram at Section 7.9.1).
From these diagrams, the relationship between call types and Wholesale Services can be clearly seen.
Taking the full year product volume as the starting point, the sampled routing is applied to that volume, to determine the
percentage of the total calls that pass across the various route types. From this the Wholesale Service volume can be
determined because we know which Wholesale Services comprise each route, and also the route factor for each Wholesale
Service on each route type.
7.2 Wholesale Markets Revenue – Cost based charging
The cost charge for the component is calculated as the historical cost of the component
The cost charge to products is determined based on the percentage of each components utilisation driven by the product.
If component Y supports a total volume for the year of 100 minutes, and product Q drives 60 minutes of that total, then
product Q is charged with 60% of the cost of component Y.
The tables set out in section 7.5 show the major charging destinations of those components charged on a cost basis. The
destinations listed cover at least 90% of the total network charge made in respect of each component.
The tables also describe the cost driver for each component.
7.3 Wholesale Markets Revenue - Charging for Wholesale Services
There is a defined relationship between the products provided by BT and network Wholesale Services. Product volumes are
translated into Wholesale Service volumes and the network charge in respect of each product is simply the aggregate of the
(price x time of day volume) charge calculated for each Wholesale Service used in providing that product. Wholesale Service
prices are those published by BT for each service as Network Charge Change Notifications (NCCNs).
This is illustrated for a conveyance product below.
Taking the volume of minutes of conversation time for the calls product, as recorded by day/evening/weekend in the Calls
Statistics Centralisation System (CSCS) database, the volume is derived of each Wholesale Service used in providing that
volume of the product (that is, minutes of conversation time), by reference to the call type. As considered above, this is
done by taking the product volume and allocating it to each route type consistent with the sampled routing observed for
each product, and then multiplying each route type volume by the usage factor applicable to each Wholesale Service
relevant to the route type.
The charge for the Wholesale Service is then calculated as the product of the day/evening/weekend price and the relevant
time of day volume.
The network charge is then simply a result of aggregating the charge calculated in respect of each Wholesale Service.
An example of this is given below.
Assuming there are 1,000 calls of product P, which is categorised as call type X. Call record details observed in the call
sample indicate that of the 1,000 calls made of Product P, 800 (or 80%) calls follow route type 2 and 200 (or 20%) calls
follow route type 3.
We know that for call type X.
Route type 2 uses 1 of each of the Call Origination Local Exchange Wholesale Service (from the General Network Basket),
and the Call Termination Local Exchange Wholesale Service (from the Call Termination basket); and that
Route type 3 uses 1 of each of the Call Origination Local Exchange Wholesale Service (from the Call Origination Basket), the
Local Tandem Conveyance Wholesale Service (from the Tandem Layer Basket), and the Call Termination Local Exchange
Wholesale Service (from the Call Termination basket).
The relationship between Product P and Wholesale Services is expressed through the call type:
80% of Product P calls follow Route Type 2 which for call type X uses 1 of each of Call Origination Local Exchange
Wholesale Service, and the Call Termination Local Exchange Wholesale Service and 20% of calls follow route type 3 which
for call type X uses 1 of each of Call Origination Local Exchange Wholesale Service, the Local Tandem Conveyance
Wholesale Service, and the Call Termination Local Exchange Wholesale Service.
265
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Every minute of Product P uses:

1 minute of Call origination Local Exchange Wholesale Service (i.e., 80% + 20%),

1 minute of Call Termination Local Exchange Wholesale Service (again, 80% + 20%).

0.2 minutes of Local Tandem Conveyance Wholesale Service (i.e., 0 + 20%).
If the 1000 Product P calls generate 100 minutes of daytime conversation time, and the daytime prices for Call origination
Local Exchange Wholesale Service, Call Termination Local Exchange Wholesale Service and Local Tandem Conveyance
Wholesale Service are £0.1, £0.2 and £0.3 respectively, then the charge made for providing 100 daytime minutes of
Product P is:
(Volume x usage factor x price) = (100 x 1 x £0.1) + (100 x 1 x £0.2) + (100 x 0.2 x £0.3) = £36
The table set in section 7.7 shows the major charging destinations of Wholesale Services. The destinations listed cover at
least 90% of the total network charge made in respect of each Wholesale Service.
A number of Wholesale Service Statements are prepared differently. These are considered separately, below.
7.3.1 Partial Private Circuits (PPCs) – Calculation of internal and external reported revenues
The revenue disclosed in the Regulatory Financial Statements is calculated based on a Price x Quantity (PxQ) basis. This
applies to both internal (to downstream BT divisions) and external (to other CPs) revenue.
Price (P): The price used for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is based
on the relevant entries in the Carrier Price List (CPL). The CPL is published by BT Wholesale to document contractual pricing
and generally to inform Industry of the interconnect charges in use by BT for calls originating, transiting, or terminating on
the BT network. For Partial and PPCs, these prices are contained in section B8 of the CPL.
The calculation of PPC revenue reported in the Regulatory Financial Statements is described in further detail below:
Price (P)
The price reported in the RFS for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is
based on the relevant entries in the CPL after applying certain adjustments that are explained below. This process to arrive
at the price (applied to internal and external revenue) used for reporting purposes has been discussed and demonstrated to
Ofcom.
In general, the prices used in the RFS for the revenue calculation are sourced directly from the CPL. If the relevant CPL price
for the service reported in the RFS changed within the relevant year, the price reported in the RFS is the calculated
weighted average of the relevant price applicable throughout the year, weighted by time. This is further explained below:

Connection Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.

Link Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.

Local End Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.

Link & Local End - Enhanced maintenance charge: An enhanced maintenance charge applies to all circuits and is
separately identified in the CPL . The fixed p.a. enhanced maintenance charge is split between Local End and Link
based on the proportion of maintenance pay for the Local End & Link.

Terminating / Distribution prices - the price reported in the RFS is the calculated weighted average of the relevant
price applicable throughout the year, weighted by time.

Trunk Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.

Distribution and Trunk - Enhanced maintenance charge: A per km enhanced maintenance charge is separately
identified in the CPL. This was applied to all per km distribution length and per km Trunk length.

Third Party customer infrastructure - the external charge reported in the RFS is based upon the calculated weighted
average of the relevant price applicable throughout the year, weighted by time and the mix of volumes. No separate
average price is reported in the RFS due to the mix of many different prices listed on the CPL and associated mix of
volumes.

Protected path variants and resilience - the external charge reported in the RFS is based upon the calculated weighted
average of the relevant price applicable throughout the year, weighted by time and the mix of volumes. No separate
average price is reported in the RFS due to the mix of many different prices listed on the CPL and associated mix of
volumes.
266
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations

Other single payments (OSPs) - the external charge reported in the RFS is based upon the relevant reported general
ledger postings and the internal charge reported in the RFS is based upon the charge in the management accounts.

Point of Handover - CSH, ISH and per circuit charge: the external charge reported in the RFS is based upon the
calculated weighted average of the relevant connection and rentals prices applicable throughout the year, weighted
by time and mix of volumes.
Quantity (volumes) (Q)
The quantity (also referred to as volumes) used for both downstream BT divisions and other CPs is based on the volume of
circuits sold, connected or actively in use. The quantity used in the RFS for PPCs is based on revenue system size (RSS). RSS
is a revenue generating measure which counts only the circuits that generate revenue.
The primary volume sources used to arrive at the quantity reported in the RFS include CTCS and COSMOSS (for main link,
trunk and distribution, local ends) and Powerhouse (connections).
The rental volumes reported in the RFS is based on spot volumes. This is based on the revenue generating total volumes as
at the end of September, being the mid way point of the accounting period of each year. As such the RFS show the total
rental volumes as at 30 September of the relevant year.
The connection volumes reported in the RFS are based on the number of total new connections in the relevant financial
year.
The main adjustments made to the raw volume sources to arrive at the volumes reported in the RFS are explained below:

BT Internal (Own Use) circuits: The source system CTCS provides total raw volume data. As such, the volumes in the
relevant services have been adjusted to exclude the network element of BT internal (Own Use).

Local ends: For certain circuits, the number of local ends is calculated based on a review of the product profile. For
these circuits, a factor is applied to the volumes of circuits to convert the raw volumes from source system into local
ends. The factor applied is based on the product profile as the number of local ends per circuit can vary depending on
the product.

Additional service granularity for reporting purposes: The raw volumes provided by the CTCS system do not necessarily
provide volumes that meet the exact granularity requirements for reporting purposes requested by Ofcom. As such,
where necessary, the raw volumes in these products / services have been adjusted to further analyse the parent
product / service into sub-products / services for reporting purposes. The allocation to a product is calculated by using
information from the Powerhouse / COSMOSS / CTCS systems to calculate the ratio / percentage split between these
sub-products / services and applies this split to the total parent product / service volumes.

Average bandwidth for reporting: For reporting purposes, BT reports the Kilostream and Kilostream “N” products, but
does not distinguish between bandwidth for these products. As such, an adjustment is made to the raw volumes using
the average bandwidth of all circuits where a factor (derived from information from a system which tracks all
kilostream circuits) is applied to Kilostream “N” to convert this into 64kbit/s equivalents.

Trunk and distribution: As the core transmission only measures over 2Mbit/s lengths, there is no readily available
analysis between trunk and distribution lengths for 64kbit/s lengths, billing data is used to separate the trunk and
distribution lengths.
7.3.2 Interconnect Specific Basket
The average charge for the interconnect specific services are taken directly from the Carrier price list.
The PPP average charge is the outturn average charge from SO512 I/X PPP. Note this differs from the 24 hour average
price as listed in the Carrier price list since it reflects the year’s actual time of day weighting.
The following table summarises the derivation of Interconnect Circuit Wholesale Service costs from the Interconnect
Specific Components within the regulatory accounts.
Component
Wholesale Service
Derivation
CO452 Interconnect local end
rental 2Mbit/s
CSI Fixed Rental
The unit costs are derived from this component cost
and the relevant circuit volume.
CO453 2Mbit/s connection
Interconnect Circuit
Connection
The unit cost is derived from the component cost
and the relevant product volumes.
IEC connection
This component also contains the costs of circuit’s
rearrangements.
Rearrangements
267
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
CO458 Interconnect Extension
circuits (IEC) 2Mbit/s link
IEC per link rental
The unit cost is derived from the component cost
and the relevant product volumes.
CO459 CSI circuits 2Mbit/s link
CSI per link rental
The unit cost is derived from the component cost
and the relevant product volume.
CO466 Interconnect Extension
circuits (IEC) 2Mbit/s per km
IEC per Km rental
The unit cost is derived from the component cost
and the relevant product volume.
CO467 CSI circuits 2Mbit/s per km
CSI per Km rental
The unit cost is derived from the component cost
and the relevant product volume.
CO468 In Span Interconnect
circuits (ISI) transmission
ISI transmission
The unit cost is derived from the component cost
and the relevant product volume.
CO469 IBC connection
IBC Connection
The unit cost is derived from the component cost
and the relevant product volume.
7.3.3. Calculation of Wholesale Broadband Access (WBA) revenue reported in the Regulatory
Financial Statements (RFS)
WBA revenue is divided into 3 areas:
1.
End User (EU) rentals, connections and ceases.
2.
‘Pipes’ Revenues - This covers the costs of backhaul and conveyance through the core network.
3.
Broadband Boost - A solution to improving speed, quality and reliability of customer’s Broadband service.
4.
Ancillaries - This covers the remaining revenues relating to areas such as Special Faults Investigation (SFI),
cancellation charges. Wherever possible, these are identified separately with everything else remaining as Other
Ancillaries.
The revenue for rentals, connections and pipes is calculated based on a Price x Volume (PxV) basis. This applies to both
internal (to downstream BT divisions) and external (to other Communications Providers) revenue.
Price (P): The price used for both BT’s internal downstream business (i.e. BT Retail, BT Global Services & Northern Ireland)
and other external CPs is based on the relevant entries in the Service Provider Price List (SPPL). The SPPL is published by BT
Wholesale to document contractual pricing and generally to inform Industry of the interconnect charges in use by BT. For
WBA, these prices are contained in section 44 of the SPPL – Wholesale Broadband Services. In the case of the IPStream
Connect service, there are several variants sold each with a different rental price and so a composite price is calculated
based on the relative mix of those services.
Volume (V): The volumes used for both internal and external revenue are an End User (EU) System Size for rentals revenue
and the number of new provides (Period 12 cumulative) for connections. This data is taken from the Wholesale Customer
Reporting system (WCR) and the volumes are split by the three geographic markets. The market classification within the
WCR system is by exchange and is based on the Ofcom’s final statement ‘Review of the Broadband Access Markets’
(December 2010).
For pipes, bandwidth data is supplied by the Wholesale Product line. The volume measure is the total bandwidth (b/w)
usage which is derived by using a measured average bandwidth (b/w) usage for IPStream and WBC (internal & external).
Total bandwidth = Average b/w usage x EU rental volume by market.
For Broadband Boost, the volumes (number of jobs) are supplied by the Openreach Regulatory finance team with a
breakdown by telephone exchange supplied by the Openreach Offshore team. This breakdown enables a split to be made
by geographic market.
For ancillaries therefore, the revenues are derived and reconciled to the BT general ledger (for external) and internal trading
data (for internal). For SFI and Migrations, the split across the 3 geographic markets is driven by the volumes for those
categories obtained from the WCR system. For the remaining ancillaries (called “other ancillaries”) a split across the 3
geographic markets is in accordance with the rentals, connections & pipes revenue total.
268
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7.4 Wholesale Significant Market Power (SMP) Financial Statement Preparation
7.4.1 Overview
The principal set of Wholesale SMP statements are:

The Statements of Financial Performance in the Access and Other Wholesale Markets.

The Statements of Attribution of Wholesale Current Costs by market.

The Statements of Attribution of Wholesale Current Cost Mean Capital Employed.

The Network Activity Statement of Costs detailing the fully allocated component costs of published Network
components and where appropriate their volumes and unit costs.

The Wholesale Service Statements, which show their Fully Allocated Cost (FAC) unit costs, their average charges, and
their relationship with the relevant components.

Wholesale Market Summary Statements showing service revenue, service volumes, average service prices and service
FAC, Long Run Incremental Cost (LRIC) floors and ceilings.
7.4.2 Network Activity Statement
Component operating costs, Mean Capital Employed and capital costs calculated, as previously described, are summarised
on this statement.
Component unit costs are calculated by dividing the component fully allocated costs by the volume shown. Factored
volumes are used when calculating the component fully allocated unit cost because they more accurately reflect the
utilisation of a given component by a product.
7.4.3 Calculation of FAC based on Component Costs and Usage Factors
Wholesale Service FAC unit costs are calculated as the sum of all the relevant component fully allocated unit costs
multiplied by the appropriate usage factor for each Wholesale Service. The relationship between components and
Wholesale services is set out in section 7.7 below. Component fully allocated unit costs are taken from the Network
Statement of Costs.
7.4.3.1 Component Usage Factors
Usage factors are calculated as follows:
Each Wholesale Service has a defined set of network components. Product route factors are first split into identifiable up
legs (originating), down legs (terminating) and cross legs (cross network) routes. These are then aligned to recognisable
Wholesale Services using the appropriate Call Type template (see section 7.8), which defines the Wholesale Services that
make up each Route Type for each Call Type.
The product’s call volume for the reporting period is introduced into the process. For each Product, the appropriate
component route factor across each route type is applied to the actual call volume, for each of the defined Wholesale
Services. After summing the volumes for all four route types we now have a set of component volumes for each Wholesale
Service for each product. These volumes are then consolidated into a single summary set of component volumes by
Wholesale Service. Usage factors can now be calculated by dividing the component volumes by the total call duration for
each Wholesale Service.
269
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7.5 Components charged on a cost basis
The table below describes those components charged on a cost basis i.e. where a component price is based on cost.
Super Comp
Comp
Description
Driver
Retail Products
CB367
CB367
ISC to frontier link:
Allocated on a percentage
utilisation basis, pro-rata to
the number of international
call minutes generated by
each product. Volumes for
call minute calculations are
sourced from CSCS and
INCA.
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
Allocated to Products on the
volume of call minutes
generated by each Product
using the other operator's
network.
Retail Residual Products.
This component represents
the link electronics that
connect an International
exchange to a Frontier Station
(This section of the Network is
sometimes referred to as the
backhaul network).
International subsea cables
terminate at these Frontier
Stations.
CB451
CB451
Radiostream links:
The costs of point-to-point
microwave transmission
equipment.
CB561
CB561
IX POLO CoNcert:
Interconnect payments to
Communications Networking
Services (UK) (CNS) (formerly
Concert).
The call minutes are sourced
from CSCS and INCA and are
factored to reflect differing
rates for different Products.
CB599
CB599
Interconnect Payment to
OLOs:
This Component will capture
all costs relating to IX
(Interconnect) Payments to
Other Communication
Providers (POCPs).
Allocated to products to the
volume of call minutes
generated by each Product
using the other operator's
network. The call minutes
are sourced from CSCS and
INCA and are factored to
reflect differing rates for
different Products.
Retail Residual Products.
CB782
CB782
Development: Captures the
cost of development of special
applications.
Allocated directly to a single
Product.
Retail Residual Products.
CD100
CD100
Low Tisbo 3rd Party
Equipment Depn.
Allocated directly to a single
Product.
Retail Residual Products.
CD101
CD101
High Tisbo 3rd Party
Equipment Depn.
Allocated directly to a single
Product.
Retail Residual Products.
CD102
CD102
Very High Tisbo 3rd Party
Equipment Depn.
Allocated directly to a single
Product.
Retail Residual Products.
CE103
CE103
Low Tisbo Excess
Construction.
Allocated directly to a single
Product.
Retail Residual Products.
CE104
CE104
AISBO Excess Construction.
Allocated directly to a single
Retail Residual Products.
270
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Super Comp
Comp
Description
Driver
Retail Products
Product.
CO224
CO224
UCP Equipment:
This component captures the
costs of the Universal Card
Platform (UCP) which provides
cashless prepaid or post paid
Public Switched Telephone
Network (PSTN) calls.
CO227
CO227
ASU switches:
The Advanced Services Unit
(ASU) is a collection of
switches, which are used for
the following functions:
Customer calls for range of
products FeatureNet 5000;
FeatureNet 1000; Call Centre
Services – Automated Call
Distribution etc.
Apportioned using the
Number of Calls for each
product sourced directly
from the platform covering
around three quarters of the
period e.g. Periods 1-9 for
the year end
apportionment.
Retail Residual Products.
Allocated on a percentage
basis to the range of
products that use this
component pro-rata to the
call minutes generated by
each product.
Retail Residual Products.
Data source is Nemos.
(Network Management
Operations System).
This relates to all connection
costs in respect of providing
customers with Advanced
Services Unit (ASU) Switching
facility from the Digital Local
Exchange (DLE) (Local
Exchange).
CO260
CO260
Cambridge Voice Intelligent
Peripheral (VIP):
Cambridge Voice Intelligent
Peripheral (VIP).
Voice Intelligent Peripheral
(VIP) Cambridge is an
Intelligent Network (IN)
platform. This component
captures costs of the
electronics used for voice
prompts.
CO261
CO261
Intelligent Contact Manager:
This component captures the
costs of electronics that
provide intelligent call routing
to customers for their various
call centres.
Allocated pro-rata to the
number of call attempts
made by products that use
this component. The call
minutes are sourced from
INCA.
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
CO262
CO262
I.N Links.
Allocate factors sourced
from Call Volumes and
Route Factor Model.
Retail Residual Products.
CO263
CO263
CORE IN.
Allocate factors sourced
from Call Volumes and
Route Factor Model.
Retail Residual Products.
CO266
CO266
Cambridge Infrastructure.
Allocate factors sourced
from Call Volumes and
Route Factor Model.
Retail Residual Products.
271
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Super Comp
Comp
Description
Driver
Retail Products
CO270
CO270
Signalling Transfer Point.
Allocate factors sourced
from Call Volumes and
Route Factor Model.
Retail Residual Products.
CO378
CO378
PC Rental 622Mbit/s link per
km trunk.
Allocated pro-rata to
622Mbit/s Trunk volumes
sourced from CTCS.
Retail Residual Products.
CO401
CO401
Netstream Equipment.
CO405
CO405
DMS 100 call centre.
Digital Matrix Switches (DMS)
that are used for BTs own call
centres.
CO414
CO414
Digital IPLC:
This component captures
costs such as maintenance for
International Transmission
Repeater Stations.
CO415
CO415
Analogue IPLC:
Captures cost of providing
international circuits such as
connections and
maintenance.
CO461
CO461
Private circuit test systems:
Testing of the analogue
network is carried out to
protect provision of all
services that use it.
CO483
CO483
Flexible Bandwidth Services.
This component captures
costs such as the installation
of Flexible Bandwidth Services
(FBS) specific equipment in an
exchange or customer’s
premises. It also captures the
cost of FBS specific software.
CO657
CO657
Framestream switches:
Costs of electronics and
maintenance associated with
provided X75 protocol
switches.
CO658
CO658
Inter Framestream switch
transmission:
Retail Residual Products.
Costs populated from
discrete assets policy code
within CoW DMC. Allocated
directly to a single product.
Retail Residual Product.
Allocated directly to a single
Product.
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
Allocated to Products on the
number of circuits of each
Product. Volumes are
sourced from PC Billing
System/ COSMOSS (via
Powerhouse).
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
Allocated directly to a single
Product.
Retail Residual Products.
Captures transmission costs
between X75 Framestream
switches.
CO669
CO669
IP Network Dial IP:
Costs associated with dial
272
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Super Comp
Comp
Description
Driver
Retail Products
Allocated to Product using
customer totals on the Multi
Services Intranet Platform
(MSIP) Model.
Retail Residual Products.
Allocated to Product using
customer totals on the Multi
Services Intranet Platform
(MSIP) Model.
Retail Residual Products.
Allocated directly to a single
product.
Retail Residual Products.
product such as modems and
associated maintenance.
CO670
CO670
IP Network Fixed Access:
This component contains the
cost of the following types of
equipment. BT Net Direct and
Flex Network Terminal
Equipment (NTE) Routers
(connect the customer
premises to the BT Network),
BT Net Access Routers
(connect the MSIP) and
Synchronous Digital Hierarchy
(SDH) access to the Internet
Protocol (IP) Network at
Colossus Points of Presence
(POPs).
CO671
CO671
IP Network VPN:
This component captures the
cost of the platform that
delivers the following
products. Metro, Equip,
Internet Protocol (IP) Clear
and Ethernet delivery services
e.g. Fusion and Internet
Protocol (IP) Clear 10100.
CO673
CO673
IP Network BT Intranet.
CO678
CO678
SIP Servers.
CO927
CO927
DQ non chargeable.
Allocated directly to a single
product.
Retail Residual Products.
CO928
CO928
DQ Number Information
Network:
Apportioned to Non
chargeable AGs and
Products on a minutes basis.
Retail Residual Products.
Inland and International
Directory Enquiries (DQ) core
transmission costs.
Retail Residual Products.
273
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7.6 Component to Wholesale Broadband Access Services
This section describes the apportionment of relevant component costs to Wholesale Broadband Access (WBA).
The service destinations of the published super components are shown in the in the published annex called the Calculation
of FAC based on component costs and usage factors (Annex 16) of the Current Cost Financial Statements.
Comp
Description
Published
super
component
Component: MSAN Combi Card Broadband
CN003
onent
CN854
Super Component: Combi Card Broadband
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of ports in
the Combi card that is situated with the MSAN asset. It is specific to the element of the Combi card that is
used for Broadband. The Combi card supplies Broadband with access into the Network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network. These exhaust to access rental services in this
case.
The apportionment in ASPIRE and is based on the relative proportion of the factored end user rental
volumes in each service. No component to service factors are applied to influence or weight the final
result so in this case factored volume equals raw volume.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts.
CN856
CN013
Component: MSAN-Metro BRAS Broadband Link
Super Component: MSAN-Metro BRAS
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
electronics in the backhaul transmission between but not including the Ethernet Switch and the Metro
node that are relevant to Broadband products. This component represents the EBD (Ethernet Backhaul
Direct) platform consumed internally by Broadband products. The backhaul is a shared element of the
network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPstream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN857
Component: MSAN-Metro BRAS Broadband Length
Super Component: MSAN-Metro BRAS
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
duct and cabling in the backhaul transmission between the Msan and the Metro node that are relevant to
Broadband products. The backhaul is a shared element of the network.
274
CN013
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPstream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN860
CN015
Component: Metro Broadband
Super Component: Core Metro Broadband
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of
Broadband products contained within the Metro Node. The Metro Node contains elements that are
Broadband specific e.g. BRAS (Broadband Remote Access server) and also elements that are shared
among other product areas e.g. P-Routers. This component captures both the specific elements of the
Metro that are Broadband related and the Broadband related cost of the shared elements.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN884
Component: Edge Ethernet Aggregator Ports Broadband
Super Component: Edge Ethernet Ports
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of ports in
the EEA (Edge Ethernet Aggregator) that are used for Broadband products. The EEA is situated within the
Metro Node and it reported separately to the Broadband Metro component. It provides access into the
Metro Node from other parts of the network. The EEA is a shared element of the metro node.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
275
CN008
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN890
CN003
Component: MSAN Broadband Access
Super Component: Combi Card Broadband Access
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
electronics in the backhaul transmission between the MSAN and up to and including the access port on
the Ethernet Switch that are relevant to Broadband products. The backhaul is a shared element of the
network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPSream and Datastream services on the legacy network.
The apportionment is automatic in ASPIRE and is based on the relative end user rental volumes in each
service. No component to service factors are applied to influence or weight the final result.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts.
CN891
CN013
Component: Ethernet Switch Broadband
Super Component: 21CN Backhaul Link & Length
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
electronics in the backhaul transmission contained in the Ethernet Switch, that is the element of the
Ethernet Switch which is not used for access. This is a shared element of the network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by Internal or External variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN903
CN015
Component: Core/Metro Broadband Xmsn
Super Component: Core/Metro Broadband
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
electronics in the transmission contained between Metro nodes and other Metro Nodes and Core nodes.
This is a shared element of the network.
Methodology
276
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by Internal or External variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CO310
CO310
Component: ATM Customer Interface 2Mb Cards
Super Component: ATM Customer Interface 2Mb Cards
Description
This Component captures the cost of capital expenditure incurred from the deployment of 2Mb Customer
Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall
within the ATM (Asynchronous Transfer Mode) Class of Work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of
Presence) at the edge of the ATM Network and links the customer's premises via a private circuit, to the
ATM network.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC10 (ATM customer interface 2mbit). The basis of
allocation is on mean year port volumes utilised by the range of products accessing the ATM Network
through the 2Mb port card. The sum of the residual product ports (non WBA) over the total ports form the
allocation to SOC10 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager (source AIM) a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the Farnborough Airshow and specific sites such as Heathrow
Terminal 5.
Step 4 – The A end port identifiers are matched to the port file report (source element manager via AIM)
in order to determine the type of port, for example E1 (2Mb), E3 (34Mb), STM1 (155Mb), Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – Using the port allocations calculated in step 6, the total port allocation by port type and product
is calculated and a summary produced.
277
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Step 8 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
Market
DataStream
IPStream
E1's
E3's
STM1
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
Xx
Xx
Xx
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
Xx
Xx
Xx
xx
xx
xx
Step 9 – Using the summary table above, the actual percentage allocation by product and market can be
determined. For the 2Mb E1 circuits this equates to:
Market
DataStream
IPStream
E1's
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
xx%
Step 10 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
Xx
xx%
IPStream
External
Xx
xx%
Datastream
Internal
Xx
xx%
Datastream
External
Xx
xx%
The allocation calculated in step 9 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source/s
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing.
CO311
Component: ATM Customer Interface 34Mb Cards
278
CO311
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Super Component: ATM Customer Interface 34Mb Cards
Description
This Component captures the cost of capital expenditure incurred from the deployment of 34Mb
Customer Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These
costs fall within the ATM (Asynchronous Transfer Mode) Class of Work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of
Presence) at the edge of the ATM Network and links the customer's premises via a private circuit, to the
ATM network.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC11 (ATM customer interface 34mbit). The basis of
allocation is on mean year port volumes utilised by the range of products accessing the ATM Network
through the 34Mb port card. The sum of the residual product ports (non WBA) over the total ports form
the allocation to SOC11 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager [source AIM] a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the Farnborough Airshow and specific sites such as Heathrow
Terminal 5.
Step 4 – The A end port identifiers are matched to the port file report [source element manager via AIM]
in order to determine the type of port, for example E1 (2Mb), E3 (34Mb), STM1 (155Mb), Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
For example, below is an extract:
Product
E1
E3
STM1
Broadband Test Ccts
Xx
Xx
Xx
Btnet
Xx
Xx
Xx
Cellstream
Xx
Xx
Xx
DataStream Mkt 0
Xx
Xx
Xx
DataStream Mkt 1
Xx
Xx
Xx
DataStream Mkt 2
Xx
Xx
Xx
DataStream Mkt 3
Xx
Xx
Xx
Enterprise Ethernet
Xx
Xx
Xx
IPEnabled
Xx
Xx
Xx
IPStream Mkt 0
Xx
Xx
Xx
279
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
IPStream Mkt 1
Xx
Xx
Xx
IPStream Mkt 2
Xx
Xx
Xx
IPStream Mkt 3
Xx
Xx
Xx
IPStream Mix
Xx
Xx
Xx
Management traffic
Xx
Xx
Xx
Megastream
Xx
Xx
Xx
Miscellaneous
Xx
Xx
Xx
Site Connect
Xx
Xx
Xx
xx
xx
xx
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – Using the port allocations calculated in step 6, the total port allocation by port type and product
is calculated and a summary is produced.
Step 8 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
Market
DataStream
IPStream
1
E1's
xx
E3's
xx
STM1
xx
2
xx
xx
xx
3
xx
xx
xx
xx
xx
xx
1
xx
xx
xx
2
xx
xx
xx
3
xx
xx
xx
xx
xx
xx
Step 9 – Using the summary table above, the actual percentage allocation by product and market can be
determined. For the 34Mb E3 circuits this equates to:
DataStream
IPStream
Market
E3's
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
xx%
280
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Step 10 - An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
xx
xx%
IPStream
External
xx
xx%
Datastream
Internal
xx
xx%
Datastream
External
xx
xx%
The allocation calculated in step 9 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO312
Component: ATM Customer Interface (higher than) 155Mb Cards
Super Component: ATM Customer Interface >155Mb Cards
Description
This Component captures the cost of capital expenditure incurred from the deployment of 155Mb and
higher bandwidth Customer Interface Cards, namely, the cost of equipment provision, rearrangement or
recovery. These costs fall within the ATM (Asynchronous Transfer Mode) Class of Work (CoW). The types of
cost include pay and stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC12 (ATM customer interface >155mbit). The basis of
allocation is on mean year port volumes utilised by the range of products accessing the ATM Network
through the 155Mb port card. The sum of the residual product ports (non WBA) over the total ports form
the allocation to SOC12 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager [source AIM] a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the Farnborough Airshow and specific sites such as Heathrow
Terminal 5.
Step 4 – The A end port identifiers are matched to the port file report [source element manager via AIM]
in order to determine the type of port, for example E1 (2Mb), E3 (34Mb), STM1 (155Mb), Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
281
CO312
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – Using the port allocations calculated in step 6, the total port allocation by port type and product
is calculated and a summary produced
Product
E1
E3
STM1
Broadband Test Ccts
Xx
Xx
Xx
Btnet
Xx
Xx
Xx
Cellstream
Xx
Xx
Xx
DataStream Mkt 0
Xx
Xx
Xx
DataStream Mkt 1
Xx
Xx
Xx
DataStream Mkt 2
Xx
Xx
Xx
DataStream Mkt 3
Xx
Xx
Xx
Enterprise Ethernet
Xx
Xx
Xx
IPEnabled
Xx
Xx
Xx
IPStream Mkt 0
Xx
Xx
Xx
IPStream Mkt 1
Xx
Xx
Xx
IPStream Mkt 2
Xx
Xx
Xx
IPStream Mkt 3
Xx
Xx
Xx
IPStream Mix
Xx
Xx
Xx
Management traffic
Xx
Xx
Xx
Megastream
Xx
Xx
Xx
Miscellaneous
Xx
Xx
Xx
Site Connect
Xx
Xx
Xx
xx
xx
xx
Step 8 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
Market
DataStream
IPStream
E1's
E3's
STM1
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
xx
xx
xx
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
xx
xx
xx
Xx
Xx
Xx
Step 9 – Using the summary table above, the actual percentage allocation by product and market can be
282
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
determined. For the 155Mb STM1 circuits this equates to:
Market
DataStream
IPStream
STM1
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
xx%
Step 10 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
1142602
xx%
IPStream
External
930410
xx%
Datastream
Internal
3691
xx%
Datastream
External
60710
xx%
The allocation calculated in step 9 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO313
CO313
Component: ATM Network Interface Cards
Super Component: ATM Network Interface
Description
This Component captures the cost of capital expenditure incurred from the deployment of Network
Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall
within the ATM (Asynchronous Transfer Mode) Class of Work (CoW). Types of cost include pay and stores
pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC13 (ATM network interface). The basis of allocation is on
mean year port volumes required by the ATM Network to direct all access ports across the ATM Network.
The sum of the residual product ports (non WBA) over the total ports form the allocation to SOC13 and
the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager (source AIM) a list of all transmission circuits in the ATM
platform is compiled, along with all the Virtual Paths (VPs) using each circuit. Also included is the booked
283
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
bandwidth for each VP.
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the Farnborough Airshow and specific sites such as Heathrow
Terminal 5.
Step 4 – A table is then prepared showing all the transmission circuit’s IDs and the booked bandwidth on
each circuit by product (and market for Broadband).
Step 5 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
However, for each circuit there will be two network interface ports, one at each end. Therefore this
allocation is doubled to produce the final port allocation for this circuit.
Step 6 – Using the port allocations calculated in step 5, the total port allocation by port type and product
is calculated and a summary produced:
Product
Broadband Test Ccts
Btnet
Cellstream
DataStream Mkt 0
DataStream Mkt 1
DataStream Mkt 2
DataStream Mkt 3
e-line
Enterprise Ethernet
IPClear
IPEnabled
IPStream Mkt 0
IPStream Mkt 1
IPStream Mkt 2
IPStream Mkt 3
IPStream Mix
Management traffic
Megastream
Metroflex
Miscellaneous
Site Connect
Share of Port
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Step 7 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
DataStream
Market
Share of Port
1
Xx
284
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
IPStream
2
Xx
3
Xx
1
Xx
2
Xx
3
Xx
Xx
Step 8 – Using the summary table above, the actual percentage allocation by product and market can be
determined. This equates to:
DataStream
IPStream
Market
1
Allocation
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
Step 9 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
Xx
xx %
IPStream
External
Xx
xx%
Datastream
Internal
Xx
xx%
Datastream
External
Xx
xx%
The allocation calculated in step 8 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO314
CO314
Component: ATM Network Switching
Super Component: ATM Network Switching
Description
This Component captures the cost of network switching ports deployed in the ATM (Asynchronous
Transfer Mode) platform.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC14 (ATM network switching). The basis of allocation is the
volume of Switched Bandwidth required by the ATM Network to carry the products across the ATM
Network. The sum of the residual product bandwidth (non WBA) over the total product bandwidth form
285
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
the allocation to SOC14 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager [source AIM] a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the Farnborough Airshow and specific sites such as Heathrow
Terminal 5.
Step 4 – The A end port identifiers are matched to the port file report [source element manager via AIM]
in order to determine the type of port, for example E1 (2Mb), E3 (34Mb), STM1 (155Mb), Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – As the Ethernet ports could be used for either a 10Mb, 30Mb or 100Mb service, the Ethernet
ports are now split into their relevant bandwidth. This is done by utilising the data in the PSID Notes field
in the Portfile report [source Network Equipment Inventory NEI].
Step 8 – Using the port allocations calculated in step 6 and 7, the total port allocation by port type and
product is calculated and a summary produced. Then, in order to calculate the actual bandwidth switched
by product, the port allocations are multiplied by the port bandwidth. This is then doubled to account for
bandwidth being switched at both ends.
Step 9 – The total switch bandwidth by product is then calculated by adding together the switched
bandwidth of every port type.
Product
Broadband Test Ccts
Btnet
Cellstream
DataStream Mkt 0
DataStream Mkt 1
DataStream Mkt 2
DataStream Mkt 3
e-line
Enterprise Ethernet
IPClear
IPEnabled
IPStream Mkt 0
IPStream Mkt 1
IPStream Mkt 2
IPStream Mkt 3
IPStream Mix
Management traffic
Switch Bwd
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
286
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Megastream
Metroflex
Miscellaneous
Site Connect
Grand Total
Xx
Xx
Xx
Xx
xx
Step 10 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
DataStream
IPStream
Market
Switched Bwd (Mb)
1
Xx
2
Xx
3
Xx
1
Xx
2
Xx
3
Xx
Xx
Step 11 – Using the summary table above, the actual percentage allocation by product and market can be
determined. This equates to:
DataStream
IPStream
Market
Allocation
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
Step 12 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
1142602
xx%
IPStream
External
930410
xx%
Datastream
Internal
3691
xx%
Datastream
External
60710
xx%
The allocation calculated in step 8 is then multiplied by the above in order to calculate an allocation to
each product, internal /external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
287
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
Component: Inter ATM transmissions
CO316
onent
CO316
Super Component: Inter ATM Transmissions
Description
This Component captures the cost of transmission connecting all of the ATM (Asynchronous Transfer
Mode) POP´s) Points of Presence nodes together.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC16 (Inter ATM transmissions). The basis of allocation is the
volume of Virtual Path Bandwidth required by to connect the ATM Network together to carry the
products across the ATM Network. The sum of the residual Virtual Path bandwidth (non WBA) over the
total Virtual Path bandwidth form the allocation to SOC16 and the remainder goes to the WBA Services.
Data Source/s
Network Equipment Inventory (NEI).
Methodology to split costs across WBA services
Step 1 – Using data from the Network Equipment Inventory (NEI) a list of all Transmission circuits in the
ATM is compiled showing their A and B end locations and size of circuit (for example STM1).
Step 2 – Using the grid reference on the Property Portal, the eastings and northings of both ends of each
circuit (A end and B end) are added, and these are then used to calculate the radial distance of each
transmission circuit.
Step 3 – A ‘proxy’ cost for each transmission circuit is then calculated using two costs from the RFS.
1) Link - TISBO market : PPCs 140/155Mb FAC link cost.
2) Length - Wholesale Trunk Segments: trunk PPC segments on a £ per KM basis (FAC).
These costs are multiplied by 4 for the STM4 circuits, and by 4 again to get costs for an STM16 circuit.
This ensures that each transmission circuit has a value relative to its size and distance.
Step 4 – Using data from the element manager [source AIM] a list of all transmission circuits in the ATM
platform is compiled, along with all the Virtual Paths (VPs) using each circuit. Also included is the booked
bandwidth for each VP.
Step 5 – The first four characters of the VPID is used to determine the product.
Step 6 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the Farnborough Airshow and specific sites such as Heathrow
Terminal 5.
Step 7 – A table is then prepared showing all the transmission circuit’s IDs and the booked bandwidth on
each circuit by product (and market for Broadband).
Step 8 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth, a percentage allocation to product is calculated for each circuit.
Step 9 – The proxy costs for each circuit calculated in step 3 are then allocated out to products based on
the allocation percentages calculated above. If there are any circuits with no booked bandwidth on them,
the average allocation by product for all other circuits is used to allocate that circuits cost.
288
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Step 10 – The total proxy cost by product is then calculated by adding together the product cost
allocations for every circuit.
Product
Cost
Broadband Test Ccts
Xx
Btnet
Xx
Cellstream
Xx
DataStream Mkt 0
Xx
DataStream Mkt 1
Xx
DataStream Mkt 2
Xx
DataStream Mkt 3
Xx
e-line
Xx
Enterprise Ethernet
Xx
IPClear
Xx
IPEnabled
Xx
IPStream Mkt 0
Xx
IPStream Mkt 1
Xx
IPStream Mkt 2
Xx
IPStream Mkt 3
Xx
IPStream Mix
Xx
Management traffic
Xx
Megastream
Xx
Metroflex
Xx
Miscellaneous
Xx
Site Connect
Xx
£ xx
Step 11 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
DataStream
IPStream
Market
Cost
1
£ xx
2
£ xx
3
£ xx
1
£ xx
2
£ xx
3
£ xx
£ xx
Step 12 – Using the summary table above, the actual percentage allocation by product and market can be
determined. This equates to:
289
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Market
Allocation
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
DataStream
IPStream
Step 13 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
1142602
xx%
IPStream
External
930410
xx%
Datastream
Internal
3691
xx%
Datastream
External
60710
xx%
The allocation calculated in step 12 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
Using data from the Network Equipment Inventory (NEI) a list of all Transmission circuits in the ATM is
compiled showing their A and B end locations and size of circuit (for example STM1), and the WCR
System.
CO609
Component: Selling, General and Administration (SG&A) Broadband
CO509
Super Component: SG&A
Description
This Component captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost
of the Selling, General and Administration activity in Wholesale Markets supporting Broadband.
This component has been set up to specifically capture Broadband SG&A costs only and includes costs
previously allocated to CO509 (SGA Other Access).
Methodology
This component allocates to appropriate Services driven on Network Charge Control (NCC) revenue for
Wholesale Broadband Access services.
Data Source
ASPIRE report Analysis of Charges shows the NCC revenue by Service, these services are then mapped to
the appropriate SG&A component and the ‘Price’ is then used as the usage factor from Component to
Service relationship which is loaded into ASPIRE.
CO681
CO681
Component: Broadband backhaul circuits
Super Component: Broadband Backhaul Circuits
Description
Costs relating to broadband backhaul circuits. These circuits provide connection between the DSLAMs in
the local exchange to the ATM conveyance network. The costs include depreciation costs and overheads
such as accommodation, maintenance and software.
Methodology
290
Detailed Attrib
bution Method (D
DAM) 2012:
Section 7 - Neetwork Componen
nt Allocations
Comp
Description
Published
super
componentt
onent
Step 1 – a list of
o all DSLAMs in
n the network iss prepared, inclu
uding the excha
ange code [sourrce NISM]. The
exchange codee is compared to
o the published Ofcom market document so th
hat each DSLAM
M can be
allocated to itss relevant marke
et. Any exchangges that are not included in Ofccom’s documennt are shown as
allocated to maarket 0. This wo
ould include DSLLAMs such as th
hose used for trials, annual eveents such as the
Farnborough Airshow
A
and spe
ecific sites such as Heathrow Teerminal 5.
Other key dataa items included
d are the DSLAM
M type [source NISM]
N
and the ATM
A switch thatt the backhaul
terminates at [source ATM ele
ement manager via AIM]. The DSLAM
D
type includes within it a reference to
the size of the backhaul circuitt, either E1, E3 or STM1.
Step 2 – Some DSLAMs do not have their ow
wn dedicated backhaul but share a backhaul beetween 2 or
more DSLAMs (sub tending) in
n a parent / chilld relationship.
Using data thatt shows the sub
b tending relatioonship between
n DSLAM [source FastCAP] the list of DSLAMs
is then split in two,
t
firstly thosse DSLAMs thatt have a backhaul circuit from the ATM switch (dedicated and
d
parent) and seccondly, child DS
SLAM that do n ot have their ow
wn backhaul bu
ut share a backhhaul via anotherr
(parent) DSLAM
M.
Step 3 – The VP bandwidth att each DSLAM iss then added [so
ource NuNCAS] split by IPStreaam and
DataStream. Th
he total bandwiidth on each ba ckhaul circuit iss then calculated, including botth parent and
child bandwidtth.
Step 4 – Using the grid reference on the Propperty Portal, thee eastings and northings
n
of all eexchanges (A
end) and ATM nodes (B end) are
a added, and tthese are then used
u
to calculatte the radial disttance of each
backhaul circuiit.
Step 5 – The diistance for the segments
s
can bbe calculated fro
om report data from
f
NISM (Nettwork Inventoryy
Management System)
S
and NU
UNCAS (New Neetwork Capacity Assignment System).
Step 6 – A ‘pro
oxy’ cost for eacch backhaul circcuit is then calcu
ulated using the
e fully allocatedd component
costs of PPC’s [source:
[
‘Whole
esale Trunk Segm
ments’ cost dataa from the 2009
9 Current Cost FFinancial
Statements ]. This
T ensures thaat each backhauul circuit has a value relative to its size (2Mb, 334Mb, 155Mb)
and distance.
There are somee exchanges wh
here the DSLAM
M and the ATM node
n
are co-located, i.e. the seerving ATM
switch is in thee same building as the DSLAM. In these cases, the distance is zero and no cosst has been
calculated as th
hese would be internal ‘across the floor’ circuiits.
Step 7 – Wheree the backhaul is
i shared betweeen more than one
o DSLAM (sub
b tending), this proxy cost
calculated in sttep 6 is then allo
ocated proportiionately to each
h DSLAM using the backhaul bbased on the
bandwidth useed.
Step 8 – Finallyy, the proxy cosst is allocated ouut to IPStream and
a DataStream
m products baseed on the
proportional baandwidth usage
e of each circuitt.
There may be cases
c
where the
e total bandwidtth on a backhau
ul is zero, for example if the asssociated DSLAM
M
is in the processs of being recovered from the network or wheere a new DSLA
AM and backhauul has been
291
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
installed but does not yet have any end users. In these cases the backhaul is allocated 100% to IPStream.
IPStream end users exist in every enabled exchange whereas DataStream end users do not. Also there
continues to be growth in IPStream end users in some exchanges but DataStream end users are declining
rapidly. Therefore IPStream would be the driver for any new provision.
Step 9 – A summary is prepared showing the total proxy cost by market and product
Market
Total Costs
IPStream Allocation
DataStream Allocation
0
£ xx
£ xx
£ xx
1
£ xx
£ xx
£ xx
2
£ xx
£ xx
£ xx
3
£ xx
£ xx
£ xx
Step 10 – Where a sub tending relationship exists, this could take either one of two forms. In some cases
the parent and child DSLAM are both in the same exchange and are connected to each other in the rack.
However, in other cases the parent and child DSLAMs are in different exchanges and must therefore have
a circuit connecting them.
Using the grid reference on the Property Portal, the eastings and northings of both the parent and the
child DSLAMs are used to calculate the radial distance of each circuit. The size of the circuit is determined
by looking at the child booked bandwidth and determining the smallest size circuit that would be
required.
If the bandwidth > 32Mb then an STM1 circuit is assumed
If the bandwidth is ≤32Mb but >1.75Mb then an E3 circuit is assumed
If the bandwidth is ≤1.75Mb then and E1 circuit is assumed
Step 11 – Using the above data, a proxy cost is calculated for the child to parent links following the
methodology in Steps 5 and 6.
The proxy cost is allocated out to IPStream and DataStream products based on the proportional
bandwidth usage of each circuit and a summary is prepared showing the total proxy cost by market and
product.
Step 12 – The two summary tables produced at step 9 (dedicated backhauls and parent) and step 11
(child to parent links) are added together to produce a final summary table:
Backhaul P09 2011/12 by market
Market
Total Cost
Market %
IPStream Cost
DataStream Cost
0
£ xx
xx%
£ xx
£ xx
1
£ xx
xx%
£ xx
£ xx
2
£ xx
xx%
£ xx
£ xx
3
£ xx
xx%
£ xx
£ xx
£ xx
An allocation is then calculated by market for each product. Market 0 is allocated proportionately across
the other three markets:
Market
IPStream Allocation
DataStream Allocation
1
xx%
xx%
2
xx%
xx%
3
xx%
xx%
292
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
xx%
xx%
Step 13 – An allocation by internal and external is then calculated using end user volumes [source
Wholesale Customer Reporting (WCR) system].
Market 1
IPStream
Internal
Xx
xx%
IPStream
External
Xx
xx%
Datastream
Internal
Xx
xx%
Datastream
External
Xx
xx%
The allocation calculated in step 12 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
NISM.
ATM element manager via AIM.
FastCap.
NuNCAS.
WCR System.
CR118
CO118
Component: ADSL Connections (Wholesale)
Super Component: ADSL Connections
Description
This Component captures the costs associated with the Provision and Installation costs for Asymmetric
Digital Subscriber Line (ADSL).
The Class of Work (CoW) associated with this Component is Circuit Provision - asymmetric Digital
Subscriber Line (NCDSL). This CoW with failed Broadband provision of service activities. Types of cost
include stores and pay costs.
Methodology
Allocated to BT Wholesale WBA end user Services driven on 21CN and 20CN connection volumes.
Data Source
The source for allocating the costs is Wholesale Customer Reporting (WCR).
CR187
CO187
Component: Broadband Line Testing Systems
Super Component: Broadband Line Testing Systems
Description
This component captures the P&L costs (depreciation) of the EvoTAM test equipment that support the
relevant Broadband products.
Methodology
The apportionment in ASPIRE is based on the relative proportion of depreciation directly attributed from
CoW WTMDF (Wholesale Test Equipment and MDF). In this case there are 3 asset policy codes within CoW
WTMDF that are directly attributable to Broadband line test systems. The cumulative value of these are
weighted against the other non broadband asset policy code to form the base.
Data Source/s
The source is the BT Operate Asset Register at P12.
293
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
Component: DSLAM Overheads
CO188
onent
CR188
Super Component: DSLAM
Description
Overheads relating to Digital Subscriber Line Asynchronous Modems (DSLAM). The component includes
costs such as accommodation, maintenance and software. This component excludes overheads relating to
capitalised pay (included with CR189).
Methodology
Step 1 – a list of all DSLAMs in the network is prepared, including the exchange code [source NISM]. The
list of DSLAMs is based on those in use as at period 9. The exchange code is compared to the published
Ofcom market document so that each DSLAM can be allocated to its relevant market. Any exchanges that
are not included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs
such as those used for trials, annual events such as the Farnborough Airshow and specific sites such as
Heathrow Terminal 5.
Step 2 – For each DSLAM, the volume of IPStream end users and DataStream end users is shown, [source
NuNCAS] and this is used to allocate a proportion of each DSLAM to a product.
For example, a DSLAM has 100 end users in total. 90 are IPStream end users and 10 are DataStream end
users.
Therefore 90/100 = 0.9 of the DSLAM is allocated to IPStream and 10/100 = 0.1 of the DSLAM is
allocated to DataStream.
There may be cases where the total number of end users on a DSLAM is zero, for example if the DSLAM is
in the process of being recovered from the network or where a new DSLAM has been installed but does
not yet have any end users. In these cases the DSLAM is allocated 100% to IPStream. IPStream end users
exist in every enabled exchange whereas DataStream end users do not. Also there continues to be growth
in IPStream end users in some exchanges but DataStream end users are declining rapidly. Therefore
IPStream would be the driver for any new provision.
Step 3 – The total allocation to product and market is summarised in a table:
Market
Total
IPS
DS
0
xx
xx
xx
1
xx
xx
xx
2
xx
xx
xx
3
xx
xx
xx
xx
xx
xx
Step 4 – an allocation is then calculated by market for each product. Market 0 is allocated proportionately
across the other three markets:
Market
IPS Allocation
DS Allocation
0
xx%
xx%
1
xx%
xx%
2
xx%
xx%
3
xx%
xx%
xx%
xx%
Step 5 – An allocation by internal and external is then calculated using end user volumes [source
Wholesale Customer Reporting (WCR) system].
294
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
Market 1
IPStream
Internal
Xxx
xx%
IPStream
External
Xxx
xx%
Datastream
Internal
Xxx
xx%
Datastream
External
Xxx
xx%
The allocation calculated in step 4 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source/s
NISM.
NunCAS.
WCR.
CR189
CO188
Component: DSLAM Depreciation
Super Component: DSLAM
Description
This component is mainly comprised of depreciation costs relating to Digital Subscriber Line
Asynchronous Modems (DSLAM). The component also includes some overheads as a result of the
capitalised pay associated with the DSLAMs.
Methodology
Step 1 – a list of all DSLAMs in the network is prepared, including the exchange code [source NISM]. The
list of DSLAMs is based on those in use as at period 9. The exchange code is compared to the published
Ofcom market document so that each DSLAM can be allocated to its relevant market. Any exchanges that
are not included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs
such as those used for trials, annual events such as the Farnborough Airshow and specific sites such as
Heathrow Terminal 5.
Step 2 – each DSLAM is then matched to its Connected to Network date (or planned date if not available),
[source NISM]. The asset life of DSLAMs is 6 years. All DSLAMs that are fully depreciated, i.e. more than 6
years old, based on their Connected to Network date, are excluded from further analysis.
Step 3 – For each remaining DSLAM, the volume of IPStream end users and DataStream end users is
shown, [source NuNCAS] and this is used to allocate a proportion of each DSLAM to a product.
For example, a DSLAM has 100 end users in total. 90 are IPStream end users and 10 are DataStream end
users. Therefore 90/100 = 0.9 of the DSLAM is allocated to IPStream and 10/100 = 0.1 of the DSLAM is
allocated to DataStream.
There may be cases where the total number of end users on a DSLAM is zero, for example if the DSLAM is
in the process of being recovered from the network or where a new DSLAM has been installed but does
not yet have any end users. In these cases the DSLAM is allocated 100% to IPStream. IPStream end users
exist in every enabled exchange whereas DataStream end users do not. Also there continues to be growth
in IPStream end users in some exchanges but DataStream end users are declining rapidly. Therefore
IPStream would be the driver for any new provision.
Step 4 – The total allocation to product and market is summarised in a table:
Market
Total
IPS
DS
0
xx
xx
xx
1
xx
xx
xx
2
xx
xx
xx
295
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Description
Published
super
component
onent
3
xx
xx
xx
xx
xx
xx
Step 5 – an allocation is then calculated by market for each product. Market 0 is allocated proportionately
across the other three markets:
Market
IPS Allocation
DS Allocation
0
xx%
xx%
1
xx%
xx%
2
xx%
xx%
3
xx%
xx%
xx%
xx%
Step 6 – An allocation by internal and external is then calculated using end user volumes [source
Wholesale Customer Reporting (WCR) system].
Market 1
IPStream
Internal
Xxx
xx%
IPStream
External
Xxx
xx%
Datastream
Internal
Xxx
xx%
Datastream
External
Xxx
xx%
The allocation calculated in step 5 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source/s
NISM.
NuNCAS.
WCR.
7.7 Component to Wholesale Services
The table below shows each component not charged on a cost basis. The table also shows the published super components
to which the components are mapped. The service destinations of the published super components are shown in the in the
published annex called the Calculation of FAC based on component costs and usage factors (Annex 16) of the Current Cost
Financial Statements.
Comp
Component Description
Super Comp
Published Super Component
CK981
Openreach time related charges
CK981
Openreach time related charges
CK985
Openreach managed services
CK985
Openreach managed services
CK986
Openreach other activities
CK986
Openreach other activities
CK988
Openreach Total Care
CK988
Openreach Total Care
CKT12
Directories
CKT12
Directories
296
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CKT13
Service assurance Retail
CKT13
Service assurance Retail
CKT14
Service assurance Global Services
CKT14
Service assurance Global Services
CL131
Local Loop Unbundling room build
CL131
Local Loop Unbundling room build
CL132
Local Loop Unbundling hostel rentals
CL132
Local Loop Unbundling hostel rentals
CL133
Local Loop Unbundling tie cables
CL133
Local Loop Unbundling tie cables
CL139
Local Loop Unbundling systems development
CL139
Local Loop Unbundling systems
development
CX139
WH Local Loop Unbundling systems
development
CL139
Local Loop Unbundling systems
development
CY139
Local Loop Unbundling systems development
CL139
Local Loop Unbundling systems
development
CL144
Wholesale Access specific
CL144
Wholesale Access specific
CL160
Routing & records
CL160
Routing & records
CY160
Routing & records
CL160
Routing & records
CL161
MDF Hardware jumpering
CL161
MDF Hardware jumpering
CX161
WH MDF Hardware jumpering
CL161
MDF Hardware jumpering
CY161
MDF Hardware jumpering
CL161
MDF Hardware jumpering
CL162
Software jumpering
CL162
Software jumpering
CX162
WH Software jumpering
CL162
Software jumpering
CL163
ISDN30 connections
CL163
ISDN30 connections
CL171
E side copper capital
CL171
E side copper capital
CX171
WH E side copper capital
CL171
E side copper capital
CL172
E side copper current
CL172
E side copper current
CX172
WH E side copper current
CL172
E side copper current
CL173
D side copper capital
CL173
D side copper capital
CX173
WH D side copper capital
CL173
D side copper capital
CL174
D side copper current
CL174
D side copper current
CX174
WH D side copper current
CL174
D side copper current
CL175
Local exchanges general frames capital
CL175
Local exchanges general frames capital
CX175
WH Local exchanges general frames capital
CL175
Local exchanges general frames capital
297
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CL176
Local exchanges general frames current
CL176
Local exchanges general frames current
CX176
WH Local exchanges general frames current
CL176
Local exchanges general frames current
CL177
PSTN line test equipment
CL177
PSTN line test equipment
CL178
Dropwire capital & PSTN NTE
CL178
Dropwire capital & PSTN NTE
CX178
WH Dropwire capital & PSTN NTE
CL178
Dropwire capital & PSTN NTE
CL180
PSTN drop maintenance
CL180
PSTN drop maintenance
CX180
WH Residential PSTN drop maintenance
CL180
Residential PSTN drop maintenance
CL181
ISDN2 drop maintenance
CL181
ISDN2 drop maintenance
CL183
PSTN line cards
CL183
PSTN line cards
CL184
ISDN2 line cards
CL184
ISDN2 line cards
CL185
Pair gain
CL185
Pair gain
CL186
ISDN2 NTE
CL186
ISDN2 NTE
CL189
ISDN30 access
CL189
ISDN30 access
CL190
ISDN30 line cards
CL190
ISDN30 line cards
CX501
WS Service Centre - Provision LLU
CL501
Service Centres - Provision
CX572
WS Service Centre - Provision LLU
Cl501
Service Centres - Provision
CX503
WS Service Centre - Assurance LLU
CL503
Service Centres - Assurance
CX577
WS Service Centre - Assurance LLU
CL503
Service Centres - Assurance
CL507
SG & A Wholesale Access
CL507
External WLR SG&A
CL508
SG & A Retail Access
CL508
Internal WLR SG&A
CN851
21CN ISDN30
CN001
Access Cards (other services)
CN852
21CN ISDN2
CN001
Access Cards (other services)
CN853
Combi card voice
CN002
Combi card voice
CN870
MSAN - METRO (dense) link connectivity
CN005
MSAN-METRO Connectivity Link
CO118
ADSL connections
CO118
ADSL connections
CO187
Broadband line testing systems
CO187
Broadband line testing systems
CO188
DSL rentals
CO188
DSLAM capital/maintenance
CO290
OR Network Features (external)
CO290
OR Network Features (external)
CO291
OR Network Features (internal)
CO291
OR Network Features (internal)
298
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CO310
ATM customer interface 2Mbit/s
CO310
ATM customer interface 2Mbit/s
CO311
ATM customer interface 34Mbit/s
CO311
ATM customer interface 34Mbit/s
CO312
ATM customer interface > 155Mbit/s
CO312
ATM customer interface > 155Mbit/s
CO313
ATM network interface
CO313
ATM network interface
CO314
ATM network switching
CO314
ATM network switching
CO316
Inter ATM transmissions
CO316
Inter ATM transmissions
CX325
WH Remote - local transmission link
CO325
Remote - local transmission link
CX326
WH Remote - local transmission length
CO326
Remote - local transmission length
CX330
WH Local - tandem transmission link
CO330
Local - tandem transmission link
CX340
WH Local - tandem transmission length
CO340
Local - tandem transmission length
CO360
Inter - tandem transmission link
CO360
Inter - tandem transmission link
CO369
WH ASU Links
CO369
ASU Links
CO370
Inter - tandem transmission length
CO370
Inter - tandem transmission length
CO371
PC rental 2Mbit/s link per km distribution
CO371
PC rental 2Mbit/s link per km distribution
CP371
Prot Path PC rental 2Mbit/s link per km dist
CO371
PC rental 2Mbit/s link per km distribution
CO372
PC rental 2Mbit/s link per km trunk
CO372
PC rental 2Mbit/s link per km trunk
CP372
Protected Path PC rental 2Mbit/s link per km
trunk
CO372
PC rental 2Mbit/s link per km trunk
CO373
PC rental 34Mbit/s link per km distribution
CO373
PC rental 34Mbit/s link per km
distribution
CP373
Protected Path PC rental 34Mbit/s link per km
distr
CO373
PC rental 34Mbit/s link per km
distribution
CO374
PC rental 34Mbit/s link per km trunk
CO374
PC rental 34Mbit/s link per km trunk
CP374
Protected Path PC rental 34Mbit/s link per km
trunk
CO374
PC rental 34Mbit/s link per km trunk
CO375
PC rental 140Mbit/s link per km distribution
CO375
PC rental 140Mbit/s link per km
distribution
CP375
Protected Path PC rental 140Mbit/s link per km
distr
CO375
PC rental 140Mbit/s link per km
distribution
CO376
PC rental 140Mbit/s link per km trunk
CO376
PC rental 140Mbit/s link per km trunk
CP376
Protected Path PC rental 140Mbit/s link per km
trunk
CO376
Protected Path PC rental 140Mbit/s link
per km trunk
CO377
WH PC Rental 622Mbit/s link per km
CO377
WH PC Rental 622Mbit/s link per km
299
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
distribution
Published Super Component
distribution
CPE105
POH LE adjust CSH debit
CO379
Point of Handover electronics
CPE106
POH LE adjust CSI debit
CO379
Point of Handover electronics
CO379
Point of Handover electronics
CO379
Point of Handover electronics
CO381
PC rental 64Kb link
CO381
PC rental 64Kb link
CO383
PC rental 2Mb link
CO383
PC rental 2Mb link
CP383
Protected Path PC rental 2Mbit/s link
CO383
PC rental 2Mb link
CO385
PC rental 34Mb link
CO385
PC rental 34Mb link
CP385
Protected Path PC rental 34Mbit/s link
CO385
PC rental 34Mb link
CO387
WH PC Rental 622Mbit/s link
CO387
WH PC Rental 622Mbit/s per link
CO388
PC rental 140Mbit/s link
CO388
PC rental 140Mbit/s link
CP388
Protected Path PC rental 140Mbit/s link
CO388
PC rental 140Mbit/s link
CO391
PC rental 64kbit link per km transmission
CO391
PC rental 64kbit link per km transmission
CO407
Carrier Pre Selection Operator set-up
CO407
Carrier Pre Selection Operator set-up
CO408
Carrier Pre Selection Customer set-up
CO408
Carrier Pre Selection Customer set-up
CX411
WH Analogue PC link connection cct prov
CO411
OR Analogue PC link connection cct prov
CX413
WH2Mbit/s and above PC link connection cct
provision
CO413
2Mbit/s and above PC link connection cct
provision
CX417
WH 64kbit PC link connection cct provision
CO417
64kbit PC link connection cct provision
CX421
WH Analogue PC installation
CO421
OR Analogue PC installation
CX431
WH PC Rental Analogue link local end
CO431
OR PC Rental Analogue link local end
CX432
WH PC rental 64kbit/s link local end
CO432
PC rental 64kbit/s link local end
CDE432
3rd party Depn adjust credit PPC 64kbit/s LE
CO432
PC rental 64kbit/s link local end
CDO432
3rd party Depn adjust credit PC 64LBit/s LE
CO432
PC rental 64kbit/s link local end
CPE432
POH adjust credit PPC 64kbit/s LE
CO432
PC rental 64kbit/s link local end
CDE434
3rd party Depn adjust credit PPC 34Mbit/s LE
CO434
PC rental 34Mbit/s link local end
CDO434
3rd party Depn adjust credit PC 34Mbit/s LE
CO434
PC rental 34Mbit/s link local end
CP434
Protected Path PC rental 34Mbit/s link local
end
CO434
PC rental 34Mbit/s link local end
CPE434
POH adjust credit PPC 34Mbit/s LE
CO434
PC rental 34Mbit/s link local end
300
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CX434
WH PC rental 34Mbit/s link local end
CO434
PC rental 34Mbit/s link local end
CDE436
3rd party Depn adjust credit PPC 140Mbit/s LE
CO436
PC rental 140Mbit/s link local end
CDO436
3rd party Depn adjust credit PC 140Mb LE
CO436
PC rental 140Mbit/s link local end
CP436
Protected Path PC rental 140Mbit/s link local
end
CO436
PC rental 140Mbit/s link local end
CX436
WH PC rental 140Mbit/s link local end
CO436
PC rental 140Mbit/s link local end
CX437
WH PC rental 622Mbit/s link local end
CO437
OR PC rental 622Mbit/s link local end
CDE438
3rd party Depn adjust credit PPC 2Mb Copper
LE
CO438
PC rental 2Mbit local end copper
CDO438
3rd party Depn adjust credit PC 2Mb Copper LE
CO438
PC rental 2Mbit local end copper
CEE438
Excess Construction credit PPC 2Mb Copper LE
CO438
PC rental 2Mbit local end copper
CEO438
Excess Construction credit PC 2Mb Copper LE
CO438
PC rental 2Mbit local end copper
CO438
WH PC rental 2Mbit/s local end copper
CO438
PC rental 2Mbit local end copper
CP438
Protected Path PC rental 2Mb local end copper
CO438
PC rental 2Mbit local end copper
CPE438
POH adjust credit PPC 2Mb Copper LE
CO438
PC rental 2Mbit local end copper
CX438
WH PC rental 2Mbit/s local end copper
CO438
PC rental 2Mbit local end copper
CDE439
3rd party Depn adjust credit PPC 2Mb Fibre LE
CO439
PC rental 2Mbit local end fibre
CDO439
3rd party Depn adjust credit PC 2Mb Fibre LE
CO439
PC rental 2Mbit local end fibre
CEE439
Excess Construction credit PPC 2Mb Fibre LE
CO439
PC rental 2Mbit local end fibre
CEO439
Excess Construction credit PC 2Mb Fibre LE
CO439
PC rental 2Mbit local end fibre
CP439
Protected Path PC rental 2Mbit/s local end
fibre
CO439
PC rental 2Mbit local end fibre
CPE439
POH adjust credit PPC 2Mb Fibre LE
CO439
PC rental 2Mbit local end fibre
CX439
WH PC rental 2Mbit/s local end fibre
CO439
PC rental 2Mbit local end fibre
CEA447
ECC Credit BES 100mb rental
CO447
Backhaul extension services fibre
CEB447
ECC Credit BES 1000mb rental
CO447
Backhaul extension services fibre
CEC447
ECC Credit BES other bwidth rtl
CO447
Backhaul extension services fibre
CO447
Backhaul extension services fibre etc
CO447
Backhaul extension services fibre
CW614
Ethernet Backhaul Direct Rental – External
CO447
Backhaul extension services fibre
CO448
Wholesale & LAN extension services electronics
CO448
Wholesale & LAN extension services
electronics
301
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CW612
Ethernet Access Direct Connection – External
CO448
Wholesale & LAN extension services
electronics
CW613
Other Ethernet Connection – External
CO448
Wholesale & LAN extension services
electronics
CW618
Ethernet Access Direct Connection – Internal
CO448
Wholesale & LAN extension services
electronics
CW619
Other Ethernet Connection – Internal
CO448
Wholesale & LAN extension services
electronics
CO449
Backhaul extension services electronics
CO449
Backhaul extension services electronics
CW615
Ethernet Backhaul Direct Connection – External
CO449
Backhaul extension services electronics
CEA450
ECC Credit WES/LES 10mb rtl – ext
CO450
Wholesale & LAN extension services fibre
CEB450
ECC Credit WES/LES 100mb rtl – ext
CO450
Wholesale & LAN extension services fibre
CEC450
ECC Credit WES/LES 1000mb rtl – ext
CO450
Wholesale & LAN extension services fibre
CED450
ECC Credit WES/LES other bwidth rtl – ext
CO450
Wholesale & LAN extension services fibre
CEE450
ECC Credit WES/LES 10mb rtl – int
CO450
Wholesale & LAN extension services fibre
CEF450
ECC Credit WES/LES 100mb rtl – int
CO450
Wholesale & LAN extension services fibre
CEG450
ECC Credit WES/LES 1000mb rtl – int
CO450
Wholesale & LAN extension services fibre
CEH450
ECC Credit WES/LES oth bwth rtl – int
CO450
Wholesale & LAN extension services fibre
CO450
Wholesale & LAN extension services fibre etc
CO450
Wholesale & LAN extension services fibre
CW610
Ethernet Access Direct Rental – External
CO450
Wholesale & LAN extension services fibre
CW611
Other Ethernet Rentals – External
CO450
Wholesale & LAN extension services fibre
CW616
Ethernet Access Direct Rental – Internal
CO450
Wholesale & LAN extension services fibre
CW617
Other Ethernet Rentals – Internal
CO450
Wholesale & LAN extension services fibre
CO477
Excess construction charge (internal)
CO450
Wholesale & LAN extension services fibre
CO478
Excess construction charge (external)
CO450
Wholesale & LAN extension services fibre
CO453
Interconnect 2Mbit/s connection
CO453
Interconnect 2Mbit/s connection
CX458
WH I/C Extension Circuits (IEC) 2Mbit/s link
CO458
Interconnect Extension Circuits (IEC)
2Mbit/s link
CX459
WH Customer Sited Interconnect cct (CSI)
2Mbit/s link
CO459
Customer Sited Interconnect cct (CSI)
2Mbit/s link
302
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CX460
WH Nominated In Span I/Connect circuits (ISI)
transn
CO460
Nominated In Span I/Connect circuits (ISI)
transmission
CX462
WH Private Circuit customer premises
CO462
OR Private Circuit customer premises
CX463
WH Private Circuit testing
CO463
OR Private Circuit testing
CX466
WH I/Connect Extension Circuits (IEC) 2Mbit/s
per km
CO466
Interconnect Extension Circuits (IEC)
2Mbit/s per km
CX467
WH Customer Sited Interconnect cct (CSI)
2Mbit/s per km
CO467
Customer Sited Interconnect cct (CSI)
2Mbit/s per km
CO469
Intra Building Circuit (IBC) connection
CO469
Intra Building Circuit (IBC) connection
CO470
Intra Building Circuit (IBC) rental
CO470
Intra Building Circuit (IBC) rental
CO484
Ethernet main links
CO484
Ethernet main links
CO495
IP Switch transmission
CO495
IP Switch transmission
CO505
SG & A private circuits
CO505
SG & A private circuits
CO506
SG & A partial private circuits
CO506
SG & A partial private circuits
CO512
Product management policy & planning
CO512
Product management policy & planning
CR550
PPCs 34/45Mb Link CELA
CO550
PPCs 34/45Mb Link CELA
CR551
PPCs 34/45Mb Distribution CELA
CO551
PPCs 34/45Mb Distribution CELA
CX552
WS PPCs 34/45Mb Local Ends CELA
CO552
PPCs 34/45Mb Local Ends CELA
CR553
PPCs 140/155Mb Link CELA
CO553
PPCs 140/155Mb Link CELA
CR554
PPCs 140/155Mb Distribution CELA
CO554
PPCs 140/155Mb Distribution CELA
CX555
WS PPCs 140/155Mb Local Ends CELA
CO555
PPCs 140/155Mb Local Ends CELA
CO473
Separation & Diversity
CO474
PPC Support Services
CO474
Third Party Equipment PC
CO474
PPC Support Services
CO475
Other Single Payments (internal)
CO474
PPC Support Services
CO476
Other Single Payments (external)
CO474
PPC Support Services
CO667
IP International peering
CO667
IP International peering
CO668
IP Network management
CO668
IP Network management
CO672
IP Network broadband
CO672
IP Network broadband
CO674
IP core node equipment
CO674
IP core node equipment
CO675
IP VOIP platform
CO675
IP VOIP platform
303
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Comp
Component Description
Super Comp
Published Super Component
CO479
Ancillary charges (internal)
CO681
Broadband backhaul circuits (excl Virtual
Paths)
CO480
Ancillary charges (external)
CO681
Broadband backhaul circuits (excl Virtual
Paths)
CO684
Broadband Virtual Paths
CO681
Broadband backhaul circuits (excl Virtual
Paths)
CX681
WH Broadband backhaul circuits
CO681
Broadband backhaul circuits (excl Virtual
Paths)
CX682
WH BT central circuits
CO682
BT central circuits
CX732
Wholesale Number Portability set-up costs
CO732
Number Portability set-up costs
CO781
WH SMDS
CO781
SMDS
CO911
National operator assistance
CO911
National operator assistance
CO912
International operator assistance
CO912
International operator assistance
CO919
Emergency operator assistance (999)
CO919
Emergency operator assistance (999)
CO941
National OA non chargeable
CO941
National OA non chargeable
CO942
Emergency OA (999) non chargeable
CO942
Emergency OA (999) non chargeable
CO943
Payphones OA non chargeable
CO943
Payphones OA non chargeable
CO989
Special Fault Investigation
CO989
Special Fault Investigation
CP502
Sales product management
CP502
Sales product management
CX502
WH Sales product management
CP502
Sales product management
CT134
Local Loop Unbundling hostel rentals power &
vent
CT134
Local Loop Unbundling hostel rentals
power & vent
CEA454
ECC Credit BNS – rental
CT454
Wholesale & LAN extension services BNS
CT454
Wholesale & LAN extension services BNS rental
CT454
Wholesale & LAN extension services BNS
CO210
Local exchange processor duration
CV001
Local exchange processor
CO220
Main exchange set-up (Lead component for
CO221)
CV002
Main exchange switching
CO215
Local exchange concentrator duration (Lead
component for CO214)
CV034
Local Exchange Concentrator
304
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7.8 Equivalence of Input Charges to WBA Markets
As a result of the June 2011 Ofcom Statement ‘Changes to BT and KCOM’s regulatory and financial reporting 2010/11
update’, BT is required to report separately on certain Openreach charges for the WBA Markets.
These Openreach charges are required be reported on Equivalence of Input (EOI) basis.
In ASPIRE, a set of cost components are used by WBA services. These components are split into 2 categories:
a)
b)
Costs and capital employed by Openreach.
Costs and capital employed by non-Openreach Lines of business. This covers charges directly from divisions such
as BT Wholesale and BT Operate.
The EOI methodology replaces certain underlying Openreach component costs and capital employed apportioned to WBA
services with charges based on EOI prices. The notional creditors relating to these components, however, are not replaced
with an EOI charge. This is because the notional creditor represents the amount owed by BT Wholesale to BT Openreach for
EOI services and therefore still needs to be reported.
The component costs that the EOI charges replace in the WBA markets are:
Component
CF118
OR ADSL Connections
CF187
LLU Line Testing Systems
CF188
OR DSLAM (capital / maintenance)
CL139
Local Loop Unbundling systems development
CL161
MDF Hardware jumpering
CL162
Software jumpering
CL170
Internal LLU Tie Cables
CL172
E side copper current
CL174
D side copper current
CL175
Local exchanges general frames capital
CL176
Local exchanges general frames current
CL572
OR Service Centre - Provision LLU
CL577
OR Service Centre - Assurance LLU
CN856
Msan-Metro BRAS Broadband Link
CO989
Special Fault Investigation
CP502
Sales product management
The approach employed to generate EOI charges is to identify the Openreach services used as an input for the WBA
services. Volumes of these services used for WBA are established. The most appropriate market volume driver available is
identified based on either BT Openreach or BT Wholesale data. Weighted average EOI prices are applied to these volumes
to get the total charges. The charges are allocated to services within each of the geographic markets with the best available
volume driver.
SMPF connections
The weighted average SMPF connection charge from Openreach is multiplied by the BT Wholesale end user connection
volumes for each of WBA market 1 and market 2. The volumes include IPStream, Datastream and Wholesale Broadband
Connect (WBC). These charges are pointed to the following published WBA services in each of market 1 and market 2:

Internal End Users Connections.

External End Users Connections.
SMPF rentals
The weighted average SMPF rental charge from Openreach is multiplied by the BT Wholesale end user rental service
volumes for each of WBA market 1 and market 2. The volumes include IPStream, Datastream and WBC. These charges are
305
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
pointed to the following published services for market 1 and 2:

External Datastream End user access Rental.

Internal IPStream Connect End user access Rental.

External IPStream Connect End user access Rental.

Internal Ancillary Charges and Other.
SMPF ceases
The weighted average SMPF cease charge from Openreach is multiplied by the BT Wholesale end user cease volumes for
each of WBA market 1 and market 2. The volumes include IPStream, Datastream and WBC. These charges are pointed to the
following published services for market 1 and 2.

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
Special Faults Investigation (SFI)
A weighted average SFI charge is calculated from the total BT Openreach SFI volumes and prices. The volumes include SFIs
for IPStream, Datastream and WBC. The BT Openreach volumes are based on the number of SFI1s and SFI2 modules.
Volumes by geographic market are obtained from BT Wholesale. The BT Wholesale volumes are counted by total SFI jobs
and not SFI modules. I.e. one SFI job may involve 1 or more SFI modules. The BT Wholesale SFI job volumes are factored to
align to the BT Openreach SFI module volumes. The factored BT Wholesale volumes are then used to allocate the EOI
charges to market 1 and 2.
The SFIs volumes are split into 2 categories – (1) those SFIs for which BT Wholesale make a charge and (2) those SFIs that
are not charged for.
(1) For those SFIs that BT Wholesale charges for, the weighted average Openreach EOI SFI charge is multiplied by the
volume of SFIs charged for by BT Wholesale. These charges are pointed to the following published services for market
1 and 2:

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
(2) For those SFIs that BT Wholesale does not charge for, the weighted average Openreach SFI charge is multiplied by the
volume of non-charged SFIs. The volume of non-charged SFIs are split by service based on BT Wholesale end user
rental volumes for IPStream, Datastream and WBC. These charges are pointed to the following published services for
market 1 and market 2:

External Datastream End User Rentals.

External IPStream Connect End User Rentals.

Internal IPStream Connect End User.

Internal Ancillary Charges and Other.
Broadband Circuit Regrades (from IPStream and Datastream to Wholesale Broadband Connect)
The weighted average Openreach charge multiplied by the volume of Regrades for market 1 and market 2. These charges
are pointed to the following published services for market 1 and market 2:

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
Broadband Conversions (used for the rationalisation of DSLAMs)
Total Openreach charges are calculated by multiplying the BT Openreach volume of conversions by the weighted average
Openreach EOI price. The total Openreach charge is then apportioned to WBA market based on the total number of
IPStream and Datastream BT Wholesale end user rental volumes. These charges are pointed to the following reported
services for market 1 and market 2:

External Datastream End User Rentals.

External IPStream Connect End User Rentals.

Internal IPStream Connect End User.

Internal Ancillary Charges and Other.
Tie Cables (e.g. for wiring HDF to DSLAMs / MSANs)
The Openreach charges are calculated by multiplying the BT Openreach volume of tie cable by the weighted Openreach EOI
306
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
price. This is done for each tie cable type and then aggregated to get a total charge. The charges are then allocated to
Market 1 and Market 2 based on total BT Wholesale end user rental volumes for IPStream, Datastream and WBC. These
charges are pointed to the following reported services for market 1 and market 2:

External Datastream End User Rentals.

External IPStream Connect End User Rentals.

Internal IPStream Connect End User.

Internal Ancillary Charges and Other.
SMPF expedite
The Openreach charges are calculated by multiplying the BT Openreach volume of expedited installed SMPF lines by the
weighted Openreach EOI price.
The charges are then allocated to WBA market/service based on total BT Wholesale end user connection volumes. These
charges are pointed to the following reported services for market 1 and market 2:

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
Migrations (CP to CP)
The weighted average Openreach EOI price is multiplied by the number of migrations for both market 1 and market 2:

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
SMPF Enhanced care
Total Openreach charges are calculated by multiplying the BT Openreach volume of SMPF Enhanced Care lines by the
weighted Openreach EOI price. The total Openreach charge is then apportioned to market 1 and market 2 based on the
total BT Wholesale end user rental volumes for IPStream, Datastream and WBC. These charges are pointed to the following
reported services for market 1 and market 2:

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
Broadband Boost
The weighted average Openreach EOI price is multiplied by the number of migrations for both market 1 and market 2 (The
average charge is not published but is based on daily rate based cost of a BT ‘Converged’ engineer and the average number
job completed):

Internal Ancillary Charges and Other.

External Ancillary Charges and Other.
The EOI costs for the ‘Internal Ancillary Charges and Other’ and ‘External Ancillary Charges and Other’ services are reported
in the total costs for market 1 and market 2 within Annex 11 of the Current Cost Financial Statements. These costs,
however, are not reported at the service level on a unit basis because they are comprised of a mixture of services that do
not have common volume measure.
307
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
7.9 Route and Call Types
7.9.1 Route Types
These Route Type diagrams were agreed with Ofcom prior to the start of the Network Charge Control regime.
The following diagrams illustrate the four basic Route Types:
Route Type 1
Own exchange
Route Type 2
Local exchange to an adjacent local exchange
Route Type 3
Single tandem
Route Type 4
Double + tandem
These Route types relate to all call types.
Route Type 1 Own Exchange
Call Origination
Local Exchange
Call Origination Basket
Call Termination
Local Exchange
Call Termination Basket
RCU
RCU
Local
Exchange
Retail Stick
50% of traffic
= Remote Local
Retail Stick
50% of traffic
= Remote Local
Call Origination
Local Exchange
Call Origination Basket
Call Termination
Local Exchange
Call Termination Basket
50% of traffic =
Call Termination
50% of traffic =
Call Origination
RouteType1
308
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Route Type 2 Adjacent Exchange
RCU
RCU
Local Exchange
Local Exchange
Call Origination
Local Exchange
Call Origination Basket
Call Termination
Local Exchange
Call Termination Basket
Retail “stick”
Local - Tandem
RouteType2
Route Type 3 Single Tandem
RCU
RCU
Local
Exchange
Call Origination
Local Exchange
Call Origination Basket
Tandem
Exchange
Local
Exchange
Retail
‘stick’
Local
Tandem
Local Tandem
Conveyance
Tandem Layer Basket
Call Termination
Local Exchange
Call Terminating Basket
RouteType3
Route Type 4 Double + Tandem
RCU
RCU
Local
Exchange
Call Origination
Local Exchange
Call Origination Basket
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
S/M/L
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
RouteType4
309
Local
Exchange
Retail
‘stick’
Local
Tandem
Call Termination
Local Exchange
Call Termination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Call types
There are a number of different call type templates:
Number
Description
T010
BT to BT (including Operator Assistance)
T015
BT to BT
T020
BT to BT Integrated Services Digital Network (ISDN)
T035
BT to Communications Networking Services (UK) (CNS) ISC
International Integrated Services Digital Network (ISDN)
T045
BT to Communications Networking Services (UK) (CNS) ISC
International Integrated Services Digital Network (ISDN)
T055
Communications Networking Services (UK) (CNS) ISC to BT
International
T070
Other Communication Provider (OCP))/Platform to BT
T080
BT to Other Communication Provider (OCP)/Platform (excl.
Operator Assistance (OA))
T090
BT to Other Communication Provider (OCP)/Platform
T095
BT to Other Communication Provider (OCP)/Platform Integrated
Services Digital Network (ISDN)
T100
Transit Calls
T111
Other Communication Provider (OCP)/Platform to Communications
Networking Services (UK) (CNS) ISC
T112
Communications Networking Services (UK) (CNS) ISC to Other
Communications Provider (OCP)/Platform
T115
Other Communication Provider (OCP)/Platform to ISC Category B
T120
CallMinder
The route types followed by each of these call types and the standard services used in each are illustrated below.
310
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to BT (Including Operator Assistance)
Call Type T010
Route Type 1
RCU
RCU
Local
Exchange
50% Call Origination
Local Exchange (incl OA)
Call Origination Basket
50% Call Termination
Local Exchange
Call Termination Basket
Route Type 2
RCU
RCU
Local
Exchange
Call Origination
Local Exchange (incl OA)
Call Origination Basket
Local
Exchange
Call Termination
Local Exchange
Call Termination Basket
Retail ‘stick’
Local Tandem
Route Type 3
RCU
Local
Exchange
Call Origination
Local Exchange (incl OA)
Call Origination Basket
Local Tandem
Conveyance
Tandem Layer
Basket
RCU
Local
Exchange
Tandem
Exchange
Retail
‘stick’
Local
Tandem
Call Termination
Local Exchange
Call Termination Basket
Route Type 4
RCU
RCU
Local
Exchange
Call Origination
Local Exchange (incl OA)
Call Origination Basket
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
SM/L
Local
Exchange
Tandem
Exchange
Inter Tandem
Conveyance
Safeguard Cap
CallTypeT010
311
Retail
‘stick’
Local
Tandem
Call Termination
Local Exchange
Call Termination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to BT
Call Type T015
Route Type 1
RCU
RCU
Local
Exchange
50% Call Termination
Local Exchange
Call Termination Basket
50% Call Origination
Local Exchange
Call Origination Basket
Route Type 2
RCU
RCU
Local
Exchange
Call Origination
Local Exchange
Call Origination Basket
Local
Exchange
Call Termination
Local Exchange
Call Termination Basket
Retail ‘stick’
Local Tandem
Route Type 3
RCU
RCU
Local
Exchange
Call Origination
Local Exchange
Call Origination Basket
Local
Exchange
Tandem
Exchange
Retail
‘stick’
Local
Tandem
Local Tandem
Conveyance
Tandem Layer
Basket
Call Termination
Local Exchange
Call Termination Basket
Route Type 4
RCU
RCU
Local
Exchange
Call Origination
Local Exchange
Call Origination Basket
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
S/M/L
Local
Exchange
Tandem
Exchange
Inter Tandem
Conveyance
Safeguard Cap
CallTypeT015
312
Retail
‘stick’
Local
Tandem
Call Termination
Local Exchange
Call Termination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to BT Integrated Services Digital Network (ISDN)
Call Types T020
Route Type 1
RCU
RCU
Local
Exchange
50% Call Termination ISDN
Local Exchange
Call Termination Basket
50% Call Origination ISDN
Local Exchange
Call Origination Basket
Route Type 2
RCU
RCU
Local
Exchange
Local
Exchange
Retail ‘stick’
Local Tandem
ISDN
Call Origination ISDN
Local Exchange
Call Origination Basket
Call Termination ISDN
Local Exchange
Call Termination Basket
Route Type 3
RCU
Local
Exchange
Tandem
Exchange
Call Origination ISDN
Local Exchange
Call Origination Basket
Local Tandem
Conveyance ISDN
Tandem Layer Basket
Local
Exchange
Retail
‘stick’
Local
Tandem
ISDN
RCU
Call Termination ISDN
Local Exchange
Call Termination Basket
Route Type 4
RCU
RCU
Local
Exchange
Call Origination ISDN
Local Exchange
Call Origination Basket
Local
Exchange
Local Tandem
Conveyance ISDN
Tandem Layer Basket
S/M/L
Local
Exchange
Tandem
Exchange
Inter Tandem
Conveyance ISDN
Safeguard Cap
CallTypeT020
313
Retail
‘stick’
Local
Tandem
ISDN
Call Termination ISDN
Local Exchange
Call Termination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to Communications Networking Services (UK) (CNS) ISC
Call Type T035
CALL DIRECTION
ISC
Route Type 3
RCU
Local
Exchange
Call Origination
Local Exchange (incl OA)
Call Origination Basket
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
ISC
Inter-Tandem
Transmission
(IDD)
Safeguard
Cap
Route Type 4
RCU
Local
Exchange
Call Origination
Local Exchange (incl OA)
Call Origination Basket
Tandem
Exchange
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
Inter-Tandem
Conveyance
Safeguard Cap
CallTypeT035
314
ISC
Inter-Tandem
Transmission
(IDD)
Safeguard
Cap
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to Communications Networking Services (UK) (CNS) Integrated Services Digital Network (ISDN)
Call Type T045
CALL DIRECTION
Route Type 3
RCU
Local
Exchange
Tandem
Exchange
Call Origination ISDN
Local Exchange
Call Origination Basket
Inter-Tandem
Transmission
(IDD)
Safeguard
Cap ISDN
ISC
Route Type 4
RCU
Local
Exchange
Tandem
Exchange
Call Origination ISDN
Local Exchange
Call Origination Basket
Local Tandem
Conveyance ISDN
Tandem Layer Basket
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
CallTypeT045
315
ISC
Inter-Tandem
Transmission
(IDD)
Safeguard
Cap
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Communications Networking Services (UK) (CNS) ISC to BT International
Call Type T055
CALL DIRECTION
Route Type 3
RCU
Local
Exchange
Call Termination
Local Exchange
Call Termination Basket
Tandem
Exchange
Local Tandem
Conveyance Tandem
Layer Basket
ISC
Inter-Tandem
Transmission
(IDD)
Safeguard
Cap
Route Type 4
RCU
Local
Exchange
Call Termination
Local Exchange
Call Termination Basket
S/M/L
Tandem
Exchange
Local Tandem
Conveyance Tandem
Layer Basket
Tandem
Exchange
Inter- Tandem
Conveyance
Safeguard Cap
CallTypeT055
316
ISC
Inter-Tandem
Transmission
(IDD)
Safeguard
Cap
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Other Communication Provider (OCP)/Platform to BT
Call Type T070
CALL DIRECTION
Route Type 1
RCU
Local
Exchange
Route Type 3
Call Termination
Local Exchange
Call Termination Basket
Tandem
Exchange
Local
Exchange
Local Tandem
Conveyance
Tandem
Layer Basket
Route Type 4
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
RCU
Call Termination
Local Exchange
Call Termination Basket
S/M/L
RCU
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
CallTypeT070
317
Local
Exchange
Call Termination
Local Exchange
Call Termination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to Other Communication Provider (OCP)/Platform (excluding Operator Assistance (OA)
Call Type T080
Incorporating BT – Other Licensed Operator (OLO) Indirect Access
CALL DIRECTION
RCU
Route Type 1
Local
Exchange
Call Termination
Local Exchange (incl OA)
Call Origination Basket
RCU
Route Type 3
Tandem
Exchange
Local
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
Route Type 4
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
S/M/L
Call Origination
Local Exchange
Call Origination Basket
RCU
Tandem
Exchange
Local-Tandem
Conveyance
Tandem Layer Basket
CallTypeT080
318
Local
Exchange
Call Origination
Local Exchange
Call Origination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to Other Communication Provider (OCP)/Platform
Call Type T090
CALL DIRECTION
RCU
Route Type 1
Local
Exchange
Call Origination
Local Exchange (inc OA)
Call Origination Basket
RCU
Route Type 3
Local
Exchange
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
Route Type 4
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
S/M/L
Call Origination
Local Exchange (inc OA)
Call Origination Basket
RCU
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer Basket
CallTypeT090
319
Local
Exchange
Call Origination
Local Exchange (inc OA)
Call Origination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
BT to Other Communication Provider (OCP)/Platform Integrated Services Digital Network (ISDN)
Call Type T095
CALL DIRECTION
RCU
Route Type 1
Local
Exchange
Call Origination
Local Exchange ISDN
Call Origination Basket
RCU
Route Type 3
Local
Exchange
Tandem
Exchange
Local Tandem
Conveyance ISDN
Tandem Layer Basket
Route Type 4
Call Origination
Local Exchange ISDN
Call Origination Basket
RCU
S/M/L
Tandem
Exchange
Inter-Tandem
Conveyance ISDN
Safeguard Cap
Tandem
Exchange
Local Tandem
Conveyance ISDN
Tandem Layer Basket
CallTypeT095
320
Local
Exchange
Call Origination
Local Exchange ISDN
Call Origination Basket
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Transit Calls
Call Type T100
Route Type 3
Tandem
Exchange
OLO
OLO
Single Transit
Tandem Layer
Basket
Route Type 4
OLO
Tandem
Exchange
S/M/L
Tandem
Exchange
Inter-Tandem Transit
Safeguard Cap
CallTypeT100
321
OLO
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Other Communication Provider (OCP)/Platform to Concert ISC
Call Type T111
CALL DIRECTION
Tandem
Exchange
Route Type 3
ISC
Inter-Tandem
Conveyance (IDD)
Safeguard Cap
Route Type 4
Tandem
Exchange
S/M/L
Tandem
Exchange
Inter-Tandem
Conveyance (IDD)
Safeguard Cap
Inter-Tandem
Conveyance
Safeguard Cap
CallType111
322
ISC
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Communications Networking Systems (UK) (CNS) ISC to Other Communication Provider/Platform
Call Type T112
CALL DIRECTION
Tandem
Exchange
ISC
Tandem
Exchange
Route Type 3
ISC
Single Transit
Tandem Layer Basket
Inter-Tandem
Transmission (IDD)
Safeguard Cap
S/M/L
Route Type 4
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
Tandem
Exchange
ISC
Single Transit
Tandem Layer Basket
Inter-Tandem
Transmission (IDD)
Safeguard Cap
CallTypeT112
323
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
Other Communication Provider/Platform to ISC Category B
Call Type T115
CALL DIRECTION
Route Type 3
Tandem
Exchange
Single Transit
Tandem Layer Basket
ISC
Inter-Tandem
Conveyance (IDD Cat B)
Safeguard Cap
Route Type 4
S/M/L
Tandem
Exchange
Inter-Tandem
Conveyance Cat B
Safeguard Cap
Tandem
Exchange
Single Transit
Tandem Layer Basket
Validity:
Post Dec2004 ONLY
CallTypeT115
324
ISC
Inter-Tandem
Conveyance (IDD Cat B)
Safeguard Cap
Detailed Attribution Method (DAM) 2012:
Section 7 - Network Component Allocations
CallMinder
Call Type T120
CALL DIRECTION
Route Type3
Tandem
Exchange
Local Tandem
Conveyance
Tandem Layer
Basket
Route Type 4
S/M/L
Tandem
Exchange
Tandem
Exchange
Inter-Tandem
Conveyance
Safeguard Cap
Local Tandem
Conveyance
Tandem Layer
Basket
CallTypeT120
325
Detailed Attribution Method (DAM) 2012
Section 8 – Wholesale and Retail Market Descriptions
8 Wholesale Market Descriptions
8.1 Wholesale Market Descriptions
Definitions of the Wholesale Markets can be found in the Introduction of the Primary Accounting Documents (PADs).
Definitions of published services in the Wholesale Markets can be found in the Wholesale Catalogue.
Short market descriptions and market codes used in mapping tables are identified below.
Wholesale Market Description
Market Code
Wholesale analogue exchange line services.
M11
Wholesale ISDN2 exchange line services.
M31
Wholesale business ISDN30 exchange line services.
M27
Traditional interface symmetric broadband origination (up to and including 8Mbit/s).
M10
Traditional interface symmetric broadband origination (above 8Mbit/s up to and including 45Mbit/s).
M111
Traditional interface symmetric broadband origination (above 45Mbit/s up to and including 155Mbit/s).
M112
Alternative interface symmetric broadband origination (up to and including 1Gbit/s).
M12
Wholesale local access.
M29
Call origination on fixed public narrowband networks.
M04
Single transit on fixed public narrowband networks.
M07
Technical areas (Interconnect Circuits)
M08
Fixed call termination.
M09
Wholesale trunk segments.
M13
Technical Areas (Point of Handover).
M14
Wholesale Broadband Access – Market 1
M181
Wholesale Broadband Access – Market 2
M182
Residual
M50
326
Detailed Attribution Method (DAM) 2012:
Section 9 – Data Sources
9 Data Sources
Summary list of Data Sources:
AIM
GL
ORBIT
Amethyst
Geneva/Avalon
ORGS
ARSCC
GNCM
PACS
ARTISAN
GLOSSI
Pathfinder
ASC
GT-X
Payphones Data Warehouse
ASPIRE
HORIZON
PCNBS
ASSURE
IBIS
PIBS
ATLAS
iBuy
PIPeR
BT Design Billing System
ICARUS
PIRM
CAMERA
IIDA
PRAVAT
CARDVU
INCA
Powerhouse
CARISMAN
INS
PULSE
CC-MIS
JRMIS
RIDE SDW
CDS
LLCS
SCARS
CID
LLFN
SPG
CISL
LoP List
Siebel
COSMOSS
LRIC
SMART
CRAFT
MEDIATOR
SWIFT
CSCS
Merlin
TEM
CSS
Metro Node/I-Node/MSAN Node
TITAN
CTCS
MSIP
TXD-OP
CWSS
NCDB
Willow
DESS
NEMOS-DR
Work Manager
DSR
NetView
EASI
Nexus
EBC
NIMS
EM
NJR
EXPRES
NRS
FastVPlan
NCAS
Featurenet
OMC
GALILEO
OMP
327
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
AIM (Analysis and Inventory Module)
Collects detailed engineering data from the 5620 Network Manager, the 5620 Stats Collector, and major Alcatel Core and Edge Switching
Products.
Amethyst
Amethyst is the web application which provides aged debt & net cash analysis. It uses debt and credit information from various billing
platforms & financial systems across all lines of business within BT for both the UK and the rest of the world. This information is then
consolidated to provide analytical reports on a customer’s debt, credit profile, on a weekly or monthly basis and gives visibility on net cash
positions for each customer. This supports the cash flow management strategies. In Amethyst data level access security is provided for
each group (Openreach, RoBT, BT Group) depending on the access rules for the corresponding users; access approval is controlled by Line
manager & System Owner.
ARSCC (Administration of Repair Service Controls by Computer)
ARSCC Clear codes and activity codes system. An example of Clear code: Fault not found – code 151, 152; and of activity codes. Time
with Supervisor (TWS) code, General Activities (GA) code.
ARTISAN (Automated Reporting and Target Investment System for the Access Network)
ARTISAN is a multi-functional application which encompasses a number of work areas, including:

Fault Volume Reduction – reports which allow the user to identify fault prone network, assess the work required to resolve the
issue, generate a proactive uplift task and dispatch to the relevant resource for execution.

Allow the Planning community to monitor their return on investment (Post Execution Monitoring).

To interrogate individual circuits to assess the likelihood of a fault based on historic line test results (overnight routing) /
historical faults (utilisation of Customer Diagnostic Tool / Bloodhound functionality).

Access Capital Repair – to generate Cable Length Renewals as a result of a Customer reported fault where we cannot provide
service due to no spare capacity.

Record observed defects in the access network (using the A1024 process) – including safety and non-safety defects.

Identify / dispatch safety related defects to external suppliers for resolution (e.g. broken Joint Box cover / Low Wire).

Provides an interface to the Manage Hazard and Warnings (which allows MHW to display information relating to potential
hazards to the external work force).

Record where CPs have access to Poles allowing them to connect their network to Openreach plant.

Act as a data repository for Poling information (maintain a record of the Pole population) enabling the Pole Test community to
execute their testing regime.
ASC (Automated Supply Chain)
ASC is the name given by BT to the AmSOFT system and its interfaces.
The ASC primary functions include: stores purchasing, order management, stock control, accounting systems and foreign currency
invoices.
The ASC procurement matching module is used to authorise invoices.
The accounting arrangements for the payment of foreign currency invoices are described in Group Accounting Manual (GAM).
ASPIRE (Accounting Separation Product and Integrated Environment)
ASPIRE is a regulatory reporting system used to perform the fully allocated cost attribution for Accounting Separation (AS). The ASPIRE
system apportions/allocates all costs ledgered on our General Ledger (GL) to BT’s regulatory markets and services. This is explained in
detail in section 2 and 3 of the DAM.
ASSURE (Accounting Separation SecUre Repository Environment)
ASSURE is an Oracle platform based system. Its main function is to deal with the validation of data ready for submission to ASPIRE for
processing.
ATLAS
ATLAS is a sub-ledger for IXBSng - UK, holding authorised billed amounts (both Accounts Payable (AP) and Accounts Receivable (AR)) for
328
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
international voice products, by carrier and allowing them to be allocated to Receipts and Payments.
BT Design Billing System
The BT Design Billing System provides details of projects/ programmes of work.

Development - BT Innovate & Design (BTID) prepare a work package agreement, with details of the development work to be
completed and the charges to be raised. This is agreed both operationally and financially by the Market Unit (MU). BTID enters the
details of these charges on to an internal system called BCAT (Business Case Analysis Tool). The charges are agreed monthly on BCAT
by MU finance.

Support and maintenance - This charge cover the costs of providing support and maintenance of BT internal systems. The MUs agree
with BTID which systems will be maintained and what cover i.e. 24/7 or just working hours 5 days a week. The annual charge is
agreed for all the system to be maintained and supporting work done on behalf of all BT. This is reviewed if any systems are ceased or
new system implemented.

Overheads and other fixed charges - Annual agreed charges to cover all BT overheads for supporting development work called
Development Non Volume another trade is overheads etc.
CAMERA (Campaign Management Evaluation and Reporting on AXSYS)
CAMERA is BT's multimedia tool enabling Marketing, Marketing Finance and external agencies to work simply and effectively together
online and in real time.
Users manage the financial and procurement aspects of campaign activity and have instant and easy access to:

Briefs.

Status reports.

Presentations.

Audio and video files.

A library of marketing material, both of current activities and earlier campaigns.
The process works as follows:
CAMERA Actions
FEC
Brief and Budget and Purchase Requisition Process/Flow
Campaign Managers
Supplier Managers
NON CAMERA actions
Supplier
Invoices/Accounts Payable
Create Budget Structure for
the year – includes: budget,
signatories, GL code and OU
Code
Sign off Business cases
allocated to products and
services and give a “Case No”
Authorise B&B – Reference
to Case No and Value
Raise the Brief & Budget
(B&B) via Camera- Select
appropriate budge criteria,
Case No, and Value
Raise Purchase
Requisition (PR) against
authorised budgets, based
on detailed estimate from
supplier
>£1k
FEC given to PR – check for
appropriateness against
budget
<£1k
Estimate forwarded to
Specifier
PR & estimate received
for checking for
appropriate
procurement process
i.e. tender, negotiate etc
Detailed Purchase
Order (PO) raised
Accrual reports done at the
end of each month – based on
commitments made to
supplies i.e. PO’s raised
Camera_Diagram1_260
509
Invoice checked and
authorised confirming
receipt of Goods and
Services
PO received for
work to
commence
Invoice sent for
work completed
Payment received
Author: Simon Smales Issue v10. Date: Dec8, 2003
329
Invoice validated against
the PO and scanned into
CAMERA
Authorised invoices
forwarded to Accounts
payable in Manchester for
payment
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Finance modifies the Program details on CAMERA.
Finance modifies the Business Case details on CAMERA.
The Campaign Manager submits electronically the modified brief and budget to Finance.
Finance re-authorise the campaign, as the campaign status changes automatically to "Unauthorised" if the budget is being increased.
CARDVU (Charging and Routing Data Verification Utility)
CARDVU is a centralised tool which automatically checks all types of digital exchange charging and routing data against a national
reference source (NCDB). CARDVU is one of the key systems in obtaining metering approval from BABT for BT’s pricing of calls made by
customers. In addition, CARDVU verifies the exchange data which causes INCA records to be generated. The INCA system is expanding to
cope with the volume of business as more interconnections with other Network Operators are implemented. This revenue is dependent
upon manually entered data on exchanges being correct and CARDVU ensures this through its automatic verification against the INCA
Routing Reference Model.
CARISMAN (Calls And Reliability Information System for Managing and Analysing the Network)
The main purpose of CARISMAN is to provide support to the Network Performance Management, Capacity Management and Interconnect
Operations functions within BT. CARISMAN is a key reporting system for BT’s 20C and 21C Public Switched Telephone Network (PSTN) call
performance measurement. It collects daily call sample data extracts from the TXD-OP and FusionWorks systems which it holds as base
data and also summarises network call performance measures for use within and outside BT. CARISMAN enables reporting and in depth
analysis of network performance measures (mainly telephony).
CARISMAN data in:

20C PSTN Exchange source stats data collected daily via MEDIATOR (BDS).

21C PSTN Exchange source stats data collected daily via FusionWorks (FTP).

CISA extract of OLO number ranges weekly via TXD-OP (FTP).

EXPRES monthly extract of exchange details and Processor to Concentrator (FTP).

NEMOS-DR monthly extract of network routes (FTP).

CDS monthly extract of working lines per Zone (FTP).

TXD-OP monthly missing hours files (FTP).

ISS weekly extract of Other Communications Providers network routes (FTP).
CARISMAN data out:

ePI monthly results file (FTP).

NetView weekly and monthly results files (FTP).
CC-MIS (Call Centre – Management Information System)
This is a management system for Operator Assistance calls. CC-MIS obtains data from the Lucent 5ESS switches in Operator Assistance
centres (100/999) from around the country. Information captured includes: number of calls in a queue, time taken to answer, call
distribution and performance management.
The source of information for Directory Assistance products is the CDS system (Central Data Store).
CDS (Central Data Store)
CDS is a large Quality Of Service (QoS) data warehouse. It is accessed either through Business Objects (BO) or through a web front end.
The CDS warehouse contains volume data for Public Switched Telephone Network (PSTN) and Private Circuits. CDS receives volume data
relating to Public Switched Telephone Network (PSTN) from Customer Service System (CSS), and it receives volume data relating to Private
Circuits from Customer Oriented System for the Management Of Special Services (COSMOSS).
CID (Central Information Database)
This system is both a comprehensive data warehouse of financial and non-financial data at General Ledger (GL) level, volumes and a suite
of application software, which enables management information to be extracted. The applications run on the system and service the
needs of Group and Divisional financial analysts, field operational managers and business planners.
330
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
CISL (Common Intelligent Service Layer)
This platform provides usage statistics by call type, which are used for cost apportionment from CISL Plant Group to components.
This data source is also used for SPR cost allocations. SPRs are the Signalling Equipment sited between the PSTN and the CISL.
COSMOSS (Customer Oriented System for the Management Of Special Services)
COSMOSS is a database used for the provision of Private Services. This includes the provision of Partial Private Circuits sold to Other
Communication Providers (OCPs). It is used for new orders, re-arrangements and ceases. It acts as a 'Front End' and generates activities
for the various groups involved in providing a Private Circuit.
It includes Working System Size (WSS) for costing purposes and Revenue System Size (RSS) for revenue purposes.
Reports generated from this system include working system sizes by circuit type (Kilostream and Megastream etc.).
An adjustment is made to the Kilostream N volumes. Copper depreciation costs, obtained from the Life of Plant (LoP) List, are adjusted
where two pairs are used to supply Kilostream N (exchange lines only use one copper pair, therefore any Product using two copper pairs
will get a higher amount apportioned to it). Once this adjustment is made, data from COSMOSS is fed into CDS and MIS, where the data is
checked and then loaded into ASPIRE.
CRAFT (Call Route Analysis Factoring Toolkit) - being migrated to NRS system.
This system uses a combination of inputs from various systems to ultimately derive component utilisations of the BT Network by
Accounting Separation (AS) Product and Component. These are commonly known as Route Factors.
Principal source data is gathered from the 'TXD OP' database. TXD-OP is a key system for Public Switched Telephone Network (PSTN) call
performance Measurement. It collects a systematic 1 in 300 sample of every call attempt from all PSTN exchange systems. Call records are
extracted to the CARISMAN system where data is summarised to produce a variety of call performance measures for publication to Ofcom
and for use within BT. TXD-OP call data also provides the basis for Accounting Separation (AS) information for Ofcom. This is to satisfy
conditions within the Telecommunications Act 2003, regarding to the reporting of Separated Accounts and has important uses for other
areas of the Business such as capacity planning, product management and marketing. Call data is held for a rolling 10 weeks.
Approximately 95 million records are loaded each month into the TXD DB2 Tables.
The aim of the CRAFT system is to take the TXD call sample across representative reporting periods within the financial year, identify the
operators and services involved for each call within the sample and then to establish the likely path across the PSTN. With this
information, network occupancy of calls by service across the PSTN can be established. Route Factors can thereby be directly established
as a set of component averages. It is this information that is sent into the ASPIRE Finance System.
TXD samples calls that enter or exit the PSTN with valid traffic routes. As stated above it polls calls passing through the Network on a 1 in
300 basis at the Local Exchange and Tandem Layers of the network. It captures the date of a call, digits dialled and on/off hook time as
well as incoming and outgoing route identifiers. The call’s route identifiers are in turn cross-referenced with another database, the
Network Modelling System (Data Repository) otherwise known as NEMOS – DR. This database contains pertinent information relating to
the ends of each traffic route identified in the call sample. Parenting information across these ends (i.e. the switches) is also utilised using
information from the Exchange Planning and Review System (EXPRES).
These ends are then cross-referenced against another database called the Exchange and Station Information (EASI) file. This data contains
the type of switch and its NGR co-ordinates. The records within the system are also badged according to source operator, destination
operator and service (type of call). For example, a call may be Vodafone (source) to BT (destination), Service (type of call) i.e. mobile. This
is achieved via reference to the Valid Number Range List (VNRL) which is a locally maintained copy of information retrieved from the
Network Charging Database (NCDB).
The basic call sample has now reached a stage where additional information relating to it has been gathered from both NEMOS – DR and
EASI and a partial path across the network has been established. At this stage there may be enough information to fully route the call from
source to termination. The dialled digits recorded in the sample are now used to check where the call terminates in the network. Further
reference is made to the VNRL identifying Geographic terminations. These can be matched against NEMOS-DR to determine whether a
traffic route exists to the last point of the call’s partially established path. If they are coincident then the call is established as ‘fully routed’.
If this is not the case, all remaining calls and partial paths are forwarded to the Network Routing Management System (NRMS) which
houses data build information pertaining to all the switches in the PSTN. Partial paths are now advanced further across the network. Nongeographic and interconnect calls will usually achieve ‘fully routed’ status, but remaining geographic calls will require termination legs to
be added. Reference is again made to the VNRL and NEMOS – DR information to achieve this. CRAFT has now reached a stage where each
call and its path across the network have been established.
Call and Path data is now loaded into the Call Routing Database otherwise known as CRDB. This produces a duration-based occupancy
across the top nine components, which are:

Local Exchange Concentrator

Local Exchange Processor

Main and Digital Junction Switching
331
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources

Remote to Local Transmission Link

Remote to Local Transmission Length

Local to Tandem Transmission Link

Local to Tandem Transmission Length

Tandem to Tandem Transmission Length

Tandem to Tandem Transmission Link
The Route Factors produced are the averages of all components by source operator, destination operator and service type. This function
takes place in the PC client environment. Occupancy data is downloaded into MS-Access tables where the Route Factor ‘averages’ are
calculated.
As a simple worked example, consider two BT-BT National Calls, one of six minutes and the other of two minutes.
The six minute call may travel through two tandems giving 12 Tandem minutes. The two minute call may travel through three Tandems,
giving six Tandem minutes. The two calls total eight minutes but occupy 18 minutes of tandem time. The Route Factor is 18/8 = 2.25
tandems.
This process is repeated for every type of operator/service pairing for each of the top nine components.
The operator/service pairings are now mapped against the current AS Product list. Establishing this mapping is not a straightforward
process and requires expertise of both the products and the operators/service pairings. Once a service to product mapping file has been
determined, an automated processes within MS-Access can be invoked to derive AS Input Sheets.
This data is then passed on to Xansa Accounting Separation operations for minor formatting manipulations and uploaded into ASPIRE.
CSCS (Call Statistics Centralisation System)
CSCS is a dynamic and flexible 24x7 Management Information System which processes raw data in the form of priced call records
collected from BT billing systems. It derives additional data fields, summarises the data and feeds it into an Oracle database. CSCS is used
for reporting information about the calls made by customers using BT fixed lines (post & pre-payment) and BT Mobility offerings.
The information relates to those calls that are paid for by the renter of the line and reports the number of calls, the summed call durations
and summed revenues of those calls (before bulk usage discounts have been applied). It is not primarily intended to provide data on
individual customers, but summarised data for specific groups of customers (e.g. Business, Residential, those with common discount
options, Geographic Area). These groupings are based either on the calling line identity (CLI) or on codes supplied in the call record from
upstream systems.
This provides an almost immediate view of call revenue & volumes, which enables accurate and timely income accounting to be
maintained and provides a ready analysis of volume activity. Where data supplies are less timely, the window for receipt of call records is
kept open longer (e.g. Mobility). The exception to this is when the first day of the month falls on a working day, in which case the results
for the final day of each calendar month must be available by WD1 of the following month (instead of the normal WD2). This is to enable
the full month out-turns for the previous month to be posted to the General Ledger (GL) on WD1.
On average, CSCS processes around 50m call records per day, with summarised details of 18bn calls, worth around £1.5bn of annual
revenue to BT, stored in the database.
CSCS is interrogated directly using Business Objects and is used as a data source for:









Financial Turnover (Revenue) Reporting in the GL
Regulatory reporting of volumes & costs/revenue
Tracking overall business performance against budgets
Tracking performance & impact of marketing campaigns and activity (inc. advertising)
Forecasting volume and revenues for budget & target setting
Management Reporting
Pricing of calls – judging impact/likely impact of changes
Measuring Price Elasticity
Tracking performance of new products e.g. BT Mobility, Broadband Voice, BT Communicator
CSCS provides direct feeds to the following systems with Call Revenue and Volume data:

the GL (via iOTA) (Enterprise Code Extract, Earned Revenue Cube)

Powerhouse

ICIP/CCBA
332
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
There are currently seventeen separate databases populated by daily process Runs:

CSS PSTN (chargeable calls dialled from BT fixed PSTN & ISDN post-payment lines and Coinbox lines (excluding Freephone)). Data
derived from priced call records from Service Domain Processor (SDP).

Operator Assistance Calls (calls originated from BT and some OLO fixed lines). Data derived from priced call records from Operator
Assistance Flexible Charging (OAFC) system via Cashless Services Platform (CSP).

Select Services (special facility calls from BT fixed lines e.g. 1471, Call Divert). Data derived from RT29 and RT22 records from SDP.

Avalon (Consumer chargeable calls dialled from BT fixed PSTN & ISDN post-payment lines, BT Charge card and BT Text (excluding
Freephone)). Data derived from priced call records from Geneva via the GIB (Geneva Information for Business).

Avalon Network Features (special facility calls from BT fixed lines e.g. 1471, Call Divert). Data derived from RT29 records from
Geneva via the GIB.

Avalon Late Data Consumer data received too late to be included as current data in the main Avalon table.

Avalon Operator (calls originated from BT). Data derived from priced call records from Geneva via the GIB.

Avalon Late Operator Consumer operator data received too late to be included as current data in the main Operator data table.

Avalon Migrated Unbilled CDRs for Billing Accounts that have migrated from CSS to Avalon.

Antillia (Business chargeable calls dialled from BT fixed post-payment lines, BT Charge card and BT Text (excluding Freephone)).
Data derived from priced call records from Geneva via the GIB.

Antillia Network Features (special facility calls from BT fixed lines e.g. 1471, Call Divert). Data derived from RT29 records from
Geneva via the GIB.

Antillia Late Data Business data received too late to be included as current data in the main Antillia table.

Antillia Migrated Unbilled CDRs for Billing Accounts that have migrated from CSS to Antillia.

Antillia Operator (calls originated from BT). Data derived from priced call records from Geneva via the GIB.

Antillia Late Operator Business operator data received too late to be included as current data in the main Operator data table.

Business Mobility calls priced on DISE3G (from MDS).

Consumer Mobility calls from Geneva via the GIB.
Data is analysed by various dimensions and is held for 90 days (daily and hourly data) and 18 months (monthly).
The primary dimensions of the data that are of interest are:

Who made the calls? E.G. Business Customers, Residential Customers, Trading Unit (customers grouped according to the Account
Management teams in BT).

What type of connection was used? e.g. PSTN, ISDN, PCO, RCB, Home Highway, Business Highway , GPRS, GSM

What type of call? Local and National (Geographic & Non-Geographic), International, Internet

Geographic analysis in terms of where callers are making their calls from is available at Exchange (NNI), CSS District and Zone level,
for PSTN.

Geographic analysis of International calls destinations is available by country and in most cases can be further separated by calls
terminating on fixed lines and those that terminate on International Mobiles.
CSS (Customer Service Systems)
CSS manages all aspects of Customer Service on the Public Switched Telephone Network (PSTN), from order capture and Job
Management, fault handling, work management and billing. CSS deals with engineering time through National Job Recording (NJR)
system. CSS also supports network management, call itemisation, Issue Handling and line testing. The CSS headquarters system allows
national changes (e.g. new Products) to be configured in a uniform, speedy and cost effective manner.
The diagram below provides a CSS Overview:
333
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
C S S O v e r v ie w – S im p lifie d V ie w
C u s to m e r
A ccount
A p p o in tm e n t
D e ta ils
C a ll D a ta
R e m in d e r s
C u s to m e r
Q u e r ie s
C u s to m e r
F a u lt
R e p o rt
C o n tr a c t
R e c e ip ts
W hat The
C u s to m e r S e e s
O rd e r
H a n d lin g
C u s to m e r
O rd e r
S M I/F
B illin g
C o n ta c t
H a n d lin g
R e c e ip tin g C e n tr e
CSS
C u s to m e r D a ta
A c c o u n tin g
and
S ta tis tic a l
In fo r m a tio n
S w itc h M a n a g e r
N e tw o r k
S y s te m s
N e tw o r k D a ta
W hat BT Sees
W o rk M a n a g e r
Job
M anager
R e p a ir
H a n d lin g
L in e T e s t
W o r k s In s tr u c tio n s
M IS
D ir e c to r ie s
M a r k e tin g
In fo r m a tio n
C S S O v e r v ie w
CTCS (Core Transmission Circuit costing System)
CTCS is set out by the following sections:
Contents
01) Purpose of CTCS
02) Key information required to understand CTCS process
03) CTCS Inputs
04) CTCS Process
05) CTCS Outputs
06) Access Database Inputs
07) Access Database Process
08) Access Database Output
09) Component to Product Apportionment
10) Use of CTCS for other apportionments
11) Route to Radial
12) Trunk and Distribution
13) CELA (Central and East London Area)
14) Glossary
CTCS - Overview
BT’s Core Transmission network is primarily made up of Electronics (Plesiochronous Digital Hierarchy (PDH) and Synchronous Digital
Hierarchy (SDH)), Cable and Duct. Combinations of these assets (i.e. two units of electronics joined by fibre and duct) make up what is
known as a “bearer”. See diagram below.
334
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
CTCS_Overview
The bearers within the network carry numerous circuits which relate to several different products and bandwidths. CTCS is used as the
volume source to record all network entities (i.e. the individual assets), bearers and circuits so that costs can be apportioned in an
objective manner. This enables product managers to get a view of their costs and to find out exactly how these have been driven
according to volumes, bandwidth and utilisation of the network.
Duct and Cable
Duct connects BT’s Network sites with each other and with customers’ premises. Both Access and Core Transmission cables run through
this duct network with access cables primarily connecting the customer to the local exchange and Core cables primarily interconnecting
Network sites.
A cable infrastructure interconnects BT core transmission, access and switching/routing assets. The Integrated Network Systems (INS)
network management system differentiates Core Transmission from Access cables, and within those two groups, the type of cable used –
e.g. metal, fibre, e-side (from the exchange to the customer point) and d-side (from the customer point to the network terminating
equipment (e.g. phone socket).
PDH
The PDH was introduced in BT’s Core Transmission network during the 1970’s, as primary 2Mbit/s line systems began to saturate the core
network. PDH was developed as a way to multiplex 2Mbit/s traffic to higher order capacity through a set of transmission hierarchies.
However, due to the limitations of the PDH technology several multiplexers are required at each point in which circuits are required to
move up the bandwidth scale. This results in multiplex mountains as illustrated below:
2-8
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
2-8
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
34-140
LTE
LTE
34-140
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
2-8
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
2-8
CTCS_PDH
335
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Access to an individual 2Mbit/s circuit is impossible without undergoing a long de-multiplexing process. For this reason PDH is considered
as an “end-to-end” technology: it does not support adding and dropping circuits at intermediary stages as allowed in SDH line systems.
The PDH platform provided an initial ‘Bearer System’ functionality within the core network. A bearer system transports circuits of various
bit rates, between two geographic points.
A circuit is likely to require several bearers to cover the distance from origin to destination. Therefore a 2Mbit/s circuit between London
and Brighton may travel on an 8Mbit/s bearer between London and Croydon, then on a 140Mbit/s bearer Croydon and Gatwick, and
finally on an 8Mbit/s bearer between Gatwick and Brighton.
Five circuit rates can be carried over PDH line systems: DS-1 (2Mbit/s), DS-2 (8Mbit/s), DS-3 (34Mbit/s), DS-4 (140Mbit/s) and DS-5
(565Mbit/s). Those rates are obtained by successive multiplexing as shown on above.
SDH - SDH technology was included to BT’s Core Transmission Platform in the late 1980’s as a way to provide reliable and cost effective
transmission services to the end-customer.
A circuit is likely to require several bearers to cover the distance from origin to destination. Therefore a 2Mbit/s circuit between London
and Brighton may travel on an STM-1 bearer at 155Mbit/s between London and Croydon, then on an STM-16 bearer at 2.5Gbit/s
between Croydon and Gatwick, and finally on an STM-1 bearer between Gatwick and Brighton.
SDH offers a number of benefits:
Minimum number of breakdowns:
- Rapid restoration of service
- Separation of circuits
- Rapid circuit configuration
Cost effectiveness:
- Fewer number of components,
- Interchange ability of components amongst suppliers.
Compatibility with previous PDH technology and with Other Communication Providers (OCPs) Transmission networks.
These reasons compelled BT to choose SDH as its main Core Transmission technology. It must however be noted that the PDH architecture
is still dominant for capacity provision to the Public Switched Telephone Network (PSTN) platform. The SDH Network is organised into a
number of different tiers.
Tier 0
Tier 1
Supercell
Tier 2
Cross-connect
Add-drop
mux
Tier 3
Tier 4
CTCS_SDH
Tier 1 – Trunk Network connecting about 30 nodes covering Britain. Transmission Links are STM-16 (2.48Gbit/s) and STM-64 (10Gbit/s).
Traffic is groomed by Digital Cross Connects (DXCs) for onward transmission and allows incoming signals to be terminated on a node.
Tier 2 – Regional Network connecting in a ring a number of ADMs. Two configurations are available: Cell – 450 nodes in Britain - and
Supercell – 80 nodes.
Tier 3 – Smaller rings that may be necessary to interconnect the Access Network to the Tiers 2.
Tier 4 – SDH access. The ADM is located in customer premises.
Tier 0 refers to the international network infrastructure.
Since 1999, BT has been committed to roll out SDH technologies at higher bandwidths as an overlay to the basic network shown above.
These include the MSH and UBB networks.
The Marconi Synchronous Hierarchy (MSH) is a new type of SDH equipment being introduced into the network. The Marconi Synchronous
Hierarchy (MSH) network will be used to deliver the Multi-Service Platform (MSP) and other broadband services while supporting
336
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
processes will be kept as similar to existing SDH processes as possible.
Most circuits on the MSH network are at 155Mbit/s. The Ultra Broadband (UBB) could be described as the “next step” in Transmission
technology as this supports bit rates of 2.4 and 10Gbit/s.
1. Purpose of CTCS
CTCS is an Oracle database that records all Transmission network elements, bearers and circuits and uses this information to provide
apportionments for Accounting Separation purposes.
The overall objective of the CTCS process is to provide data to enable apportionments of costs from Class Of Work (CoW) to Plant Group,
Plant Group to Component and Component to Products.
The following diagram represents the end to end CTCS process. The key steps which are described in this section are as follows:

CTCS Inputs

CTCS Process

CTCS Outputs

Access Database Inputs

Access Database Process

Access Database Outputs

Component to Product Apportionment
CTCS – End to End Process Diagram
Planning
Assignment and
Configuration
System (PACS)
Integrated
Network System
(INS)
Product
Tagging
Usage
Factors
CTCS Process
Data Feeds
from Offline
Models
Access Database
LTXN
Apportionment
s
DTNACSP
AG129
LTME
DTTM
s
CTCS_EndToEndProcess
CTCS derives all the core transmission apportionments. This principally involves Duct and cable assets and operating costs which are later
apportioned over core transmission plant groups and subsequently over core transmission components.
2) Key information required to understand CTCS process
In order to understand the CTCS, it is vital to understand several key words which are used repeatedly in the following sections:
Element/Network Element
337
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
This can refer to any type of asset or grouping of assets in the Core Transmission network, but will usually refer to either a Circuit, a Bearer
(as explained above) or an individual asset (e.g. electronics). It is the relationship between these items which allows for apportionment
from Class Of Work (CoW) and Plant Group (groupings of assets) to Components (Bearers) and Product (Circuits).
3) CTCS Inputs
Diagram: Overview of CTCS inputs
INS:
PDH Circuits
PDH / SDH Cables
PDH ElectronicsCeased Circuits
PACS: Synchronous
Digital Hierarchy
( SDH ) Electronics
Usage Factors
Product
Tagging
Process
Core Transmission Circuit Costing
System( CTCS)
CTCS_Inputs
338
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Integrated Network System (INS)
INS is an operational system which also feeds data into Core Transmission Circuit costing System (CTCS).
The database records information on BT's Core Transmission Network. It also holds locations of operational buildings and record of the
digital connections between these buildings and interconnection points between various cables and circuits. It also holds information on
the capacity utilisation of bearers within the BT Network. This information is used to enable engineers to plan and route new circuits
through the network.
A snapshot of the network at Period 6 (mid-point of the financial year) is uploaded into CTCS, containing the following information:
File
Description
Detail of Data Included
EASI
Contains detail of all 1141
codes. These describe the exact
location of all assets.
1141 Code and name
District Code
Node Code
Type (e.g. Customer or Exchange)
Description of equipment
Grid Reference
Raw PDH Routes
Contains details of all network
elements (electronics) that are
used by Plesiochronous Digital
Hierarchy (PDH) circuits.
Unique identifier for each network element
Plant marker - code used in INS to identify and group together
similar assets.
Raw
Plesiochronous
Digital Hierarchy
(PDH) Cables
List of every individual cable
which links Plesiochronous
Digital Hierarchy (PDH)
electronics.
Individual cable I.D.
Status (i.e. is the cable in operation)
A and B end 1141 code.
Cable length.
Plant marker - code used in Integrated Network System (INS) to
identify and group together similar assets.
Cable size (i.e. - number of fibres).
Cable Type.
Raw Synchronous
Digital Hierarchy
(SDH) Cables
List of every individual cable
which links Synchronous Digital
Hierarchy (SDH) electronics.
Planning Assignment and Configuration System (PACS) Identifier - a
Planning Assignment and Configuration System (PACS) identifier is
an I.D. code, which allows Planning Assignment and Configuration
System (PACS) to identify the cable assets so that it can be seen
which other assets (electronics, etc.) are associated with it and thus
form a bearer.
Status (i.e. - is the cable in operation).
A and B end 1141 code.
Plant marker (as noted above).
Cable length.
Cable size (i.e. number of fibres).
Associated Multiplexer (M UX) section (i.e. which Synchronous
Digital Hierarchy (SDH) Multiplexers (MUXs) are linked up by this
cable).
Raw M ultiplexer
(M UX)
Links all Plesiochronous Digital
Hierarchy (PDH) Multiplexers
(MUXs) to their associated Line
Systems
Provides simple list of line systems and details of which
Plesiochronous Digital Hierarchy (PDH) multiplexers are attached to
these.
Ceased Circuits
List of all ceased circuits
(Plesiochronous Digital
Hierarchy (PDH) and
Synchronous Digital Hierarchy
(SDH)).
Single column. Simple list of all ceased circuits.
CTCS_Inputs_Table1
339
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
PACS (Planning Assignment and Configuration System)
PACs is an operational database. It contains an inventory of the equipment used in the Synchronous Digital Hierarchy (SDH) Network
(including Access SDH).
Network planners use PACS as an operational tool, to assist in the effective provision of new circuits across the SDH Network.
This system supports the planning of the SDH Network. It provides support for orders to be entered manually or via an interface called,
'Service Solution Design.' These orders can then be configured and routed across the SDH Network.
A snapshot of the network at Period 6 (mid-point of the financial year) is uploaded into Core Transmission Circuit costing System (CTCS),
containing the following information:
File
Description
Key Detail of Data Included
Raw Synchronous
Digital Hierarchy
(SDH)
Data related to all Synchronous
Digital Hierarchy (SDH)
elements, bearers and circuits.
Date of circuit provision
Individual circuit I.D
Protection type (e.g. Bronze/Silver etc. variants)
Bit rate of Circuit (e.g. 2Mbit)
Circuit Status
A and Z end of circuit (same as A and B in INS)
Detail of bearers and electronics associated with
each circuit
CTCS_Inputs_Table2 PACS
Product Tagging
Product Tagging is a further input to Core Transmission Circuit costing System (CTCS) and is carried out in a separate database. This
includes the following information related to circuits:

Individual Circuit identifier

A and B end 1141 code (sourced from COSMOSS)

Platform

Product
Circuit ID and Platform information is extracted from INS and PACS above.
Information from COSMOSS is downloaded and used to provide the A and B ends of each circuit.
A series of 60 queries are run to identify the product to which the circuit should be linked, this is mostly based upon information that is
available from the individual circuit identifier (for example Megastream products will be identified by the prefix MXUK).
Product tagging does not influence apportionments of cost from Class Of Work (CoW) to Plant Group or from Plant Group to component.
However, these are used in the final apportionment of components to products (see later section for detail).
Usage Factors
The final input to CTCS relates to usage factors. These are required in order to correctly weight the many different variations of circuit
bandwidths that can utilise bearers and bearers that “hit” network elements.
Examples of the tables which are fed into CTCS can be seen below:
Synchronous Digital Hierarchy (SDH) Circuit to Bearer Relationships
Circuit Bitrate
Bearer Bitrate
Usage Factors
Circuit Bitrate
Bearer Bitrate
Usage Factors
E1
E1
1
E3
S1
3
E1
E3
16
E3
S16
48
E1
E4
64
E3
S4
12
E1
S1
63
E3
S64
192
E1
S16
1008
E4
E4
1
E1
S4
252
E4
S1
1
E1
S64
4032
E4
S16
16
E3
E3
1
E4
S4
4
E3
E4
4
E4
S64
64
CTCS_Inputs_Table3 Bitrates
340
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
As an example, it can be seen that 1008 E1 (2Mbit/s) circuits can use a single S16 (or STM-16) bearer.
4) CTCS Process
The process by which CTCS creates the necessary data for apportionment can be summarised in the diagram below. This highlights the
introduction of several tables which are described in greater detail on the next page.
Diagram: Overview of CTCS Process.
Network Element – All
elements of network and
their relationship with each
other sourced from INS/
PACS data
Origin
NE List – More detailed
version of Network
Element table
Destination
NE List – More detailed
version of Network
Element Table
The Translation Table –
Transates elements into
Entities
End to End Circuits – List
of all circuits created
from INS/PACS data
The Translation Table –
Translates elements into
Entities
The Relationship Table –
Provides volume for each
Entity relationship –
Output to Access
Database
CTCS_Process
Network Element Table
Circuit no
A-End NETWORK
ELEMENT CODE
A 1141 A
A 1141 B
B-End NETWORK
ELEMENT CODE
BL
BL
SSS-63762
SSS-63762
BL/B
PR/E
SNE-20870
SSS-63762
BL/B
PR/E
SNE-20871
873104
BL/DA-PR/UG 2809 JDD
873104
873104
CTCS_NetworkElementTable
Data from the Network Element table is as shown above.
This illustrates the fact that the circuit BL/DA-PR/UG 2809 JDD uses the bearer SSS-63762. In turn, this bearer uses two network
elements, SNE-20870 and SNE-20871.
However, this does not provide sufficient information to know exactly what assets are being used and how this fits into the appropriate
Plant Group or Component. Two tables, ‘End to end circuits’ and ‘NE List’ are used to find the Brick Type for the circuit and its components
retrospectively.
The Brick type is a code that identifies the details of the element by the following six properties:
Brick code – the type of element i.e. a circuit (CT), bearer (BE)
Brick sector – where the element sits in the network i.e. tier, core or local
Brick sub code – further identifies the type of element i.e. identifies cable as fibre or copper, a mux type etc.
Brick bit rate – the speed of the element
Brick usage – identifies if in service for Plesiochronous Digital Hierarchy (PDH) circuits only
Brick product – the product that the circuit is assigned to
341
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
End To End Circuits Table
By using the End to End circuit table, further data relating to this circuit can be obtained:
Circuit
No
A-End
NETWORK
ELEMENT
CODE
A1141
B1141
Radial
Length
Circuit
Length
Brick
Type
Brick
Code
Brick
Bitrate
Brick
Product
Platform
873104
BL/DA-PR/
UG 2809
JDD
BL
BL
27.216
52
CT///E1//
LPF
CT
E1
LPF
SDH
CTCS_EndToEndCircuitTable
However, the key item of information is the Brick Type, this element is therefore identified as a 2Mbit/s (E1) circuit (CT) which relates to
the product “LPF” (LPF).
The appropriate brick codes relating to the bearer and elements can be obtained from the Network Elements (NE) List table which
expands upon the data given in the Network Elements (NE) table.
Network Elements (NE) List Table
Network
Network
Element No Element code
A1141
B1141
Radial
Length
Platform
1321095
BL/DA-PR/UG
2809 JDD
BL
BL
27.216
SDH
1288803
SSS-63762
BL/B
PR/E
27/216
SDH
1180174
SNE-20871
PR/E
1180173
SNE-20870
BL/B
Cable
Length
Brick
Code
Brick
Brick
Sub-code Sector
Brick
Bitrate
Brick
Product
Brick Type
E1
LPF
CT///E1//LPF
CT
52
BE
SDH
SDH
2
S16
BE/2//S16//
MU
SDH
2
S16
MU/2/SDH/
S16//
MU
SDH
2
S16
MU/2/SDH/
S16//
CTCS_BrickTypes
From the data illustrated above, brick types have now been identified for the circuit, bearer and elements (far right column). The three
elements of the circuit are:
One Bearer in Tier 2 with a bit rate of STM-16 “BE/2//S16//” and two multiplexers in Tier 2 Synchronous Digital Hierarchy (SDH) with a
bit rate of STM-16 “MU/2/SDH/S16//”.
Accounting Separation (AS) Translation
The brick types can then be used in order to link the network elements to a particular Accounting Separation (AS) Building Block/Plant
Group or Cost Pool/Component as shown below:
Platform
Brick Type
Entity Code
Entity Flag
SDH
MU/2/SDH/S16//
NZ01111
Y
SDH
BE/2//S16//
NN01127
Y
SDH
CT///E1//LPF
NR14651
Y
DT Flag
D
Driver Code
AS Component
D000627
N/A
D000181
PG325T
D000073
CO330
CTCS_ASElement
5) CTCS Output
Private Circuit volumes are now Revenue System Size (RSS), where they were previously Working System Size (WSS). This is achieved by
cross-referencing CTCS with COSMOSS (which feeds into the billing system) and omitting circuits that are not billed for. Circuit lengths are
calculated by the radial distance between the Last Serving Exchange (LSEs). This distance is apportioned to Trunk and Distribution based
on the ratio of the distance from LSEs to Parent Tier 1 Exchanges and the distance between Parent Tier 1 Exchanges, in-line with billing.
6) CTCS - Access Database Inputs
The objective of the Access database is to allow some key adjustments to be made to the output CTCS data.
The inputs to the Access database are as shown below:
Diagram: Overview of CTCS Access Database Inputs
342
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Core Transmission
Circuit costing System
(CTCS) Output
(see previous page)
Fixed
Percentage
Adjustments
Access database
CTCS_FixedPercentageAdj
Fixed Percentage Adjustments
A small number of off-line apportionments have to be calculated and input to the database.
These relate to a number of PDH asset policy codes, i.e. CF14, CF56 and CF64 which cover Plesiochronous Digital Hierarchy (PDH) Optical
Repeater Equipment.
Fixed percentages are also calculated offline for the following Synchronous Digital Hierarchy (SDH) Classes of Work (CoW):
SDHC – Customer Add-drop Multiplexers (ADMs)
SDHA – Exchange Add-drop Multiplexer (ADMs)
SDHX – Cross-Connects.
SDHK/SDHL – Line Terminating Equipment
SDHP – Marconi Synchronous Hierarchy (MSH) assets
All of the above are termed Fixed Percentage apportionments in the database as they are not generated by the database itself (compared
with Driver Based (DB) and Usage Factor (UF) based apportionments that are calculated in the database based on volumes of drivers or
factored volumes of drivers as described later in the document).
The Fixed Percentage apportionments for Synchronous Digital Hierarchy (SDH) asset policy codes SDHA and SDHC, for example, are
calculated by apportioning the Period 6 depreciation based on the volumes and relative costs of SMA-1, SMA-4 and SMA-16 ADMs.
The calculations for the apportionment of these SDH Classes Of Work (CoW) to Plant Groups (PGs) are based on Period 6 depreciation and
volumes of Add-drop Multiplexer (ADM) equipment.
7) Access Database Process
The Access database sorts the data from the CTCS output and adjustments into a series of tables in order to produce the final Class Of Work
(CoW) to Plant Group and Plant Group to Component apportionments.
Summary of Input files required:

CTCS factored hits file detailing hits and cable distance.

CTCS element count file.

Direct fibre distance.

LoP List P6.

SDH equipment prices.
CTCS factored hits match the Plant Group to a specific network element and then gives a count of the number of pieces of equipment and
thus a usage factor.
The raw file looks like this:
343
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
CoW
PG
Value
COW_X4
PG311T
2
UF
COW_X4
PG311T
11,216
COW_X4
PG311T
10
0.0625
COW_X4
PG311T
14
0.015625
0.25
1
CTCS_Inputs_Table4AccessDatabase
The Equipment count file is a lookup of all the network equipment and is based on the following criteria:

Number of entries of Bearer.

Tiers and Type of Tier.

MSH Equipment count.

SDH equipment count.

PDH equipment count.

Tier 4 equipment count.

Radio Links.
Direct fibre and its associated Km are obtained directly from CTCS.
LoP List. This is an extract from the asset register which details the individual CoW class of work and its associated policy code. The policy
code and its description is a unique identifier which is used to feed the access database as it will detail the individual network elements
under each CoW. The asset register holds the depreciation for each CoW and asset policy code which is then used within the access
database and mapped to CTCS. The data is extracted at P6.
The example extract below is based on the SDH CoW and demonstrates the level of granularity that the LoP List holds, the lower level
descriptions and the YTD Depreciation. The access data bases use this information along with CTCS to map costs.
CTCS_SDHCoW
The CoW to plant group table lists all the transmission asset policy codes and indicates which plant groups they should be mapped to.
Details are also given of the driver used for the allocation.
The following drivers have been used to allocate asset policy codes:
344
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Factored hits on 1/16 LTEs
Indirect
Factored hits on 1/4 LTEs
Length of all cable types
Factored hits on 140/565 Mux
Length of fibre cable
Factored hits on 2/34 M ux
Length of transverse screen cable
Factored hits on 2/8 Mux
No of 140mb radio links
Factored hits on 34/140 M ux
No of 34mb radio links
Factored hits on 8/34 M ux
No of 4/1
Factored hits on broadband kit
No of 8mb radio links
Factored hits on cross connects 4/4
No of PDH LS M etallic 140MBits/s
Factored hits on customer located ADM STM-1
No of PDH LS M etallic 2MBits/s
Factored hits on customer located ADM STM-16
No of PDH LS M etallic 34MBits/s
Factored hits on customer located ADM STM-4
No of PDH LS Optical 140M Bits/s
Factored hits on exchange located ADM STM -1
No of PDH LS Optical 2M Bits/s
Factored hits on exchange located ADM STM -16
No of PDH LS Optical 34M Bits/s
Factored hits on exchange located ADM STM -4
No of PDH LS Optical 565M Bits/s
Factored hits on MSH51-Customer sited
No of PDH LS Optical 8M Bits/s
Factored hits on MSH51-exchange sited
Notional hits-all allocated to one plant group
Factored hits on MSH64-customer sited
Total no of muxes
Factored hits on MSH64-exchange sited
Use length of analogue circuits
CTCS_Inputs_Table5AssetPolicyCodes

“Factored Hits”
Most of the SDH equipment is allocated to plant groups using factored hits. This is essentially where a bearer type hits a particular piece of
equipment. The hit is factored to take into account the capacity of the bearer, so that higher capacity bearers pick up a large proportion of
costs.

“Distance of cable”
Cable asset policy codes are allocated using distance of cable by bearer type and Tier.

“No of….”
Most of the PDH kit is allocated using the no of each type of kit. A separate plant group has been set up for each PDH kit type, so the
driver is used to allocate 100% to that particular plant group.

“Other drivers-sub drivers”
A number of asset policy codes require a collective base to allocate. These are:
- Length of all cable types
- Total no of muxes

“Indirect”
Indirect drivers are assigned to those policy codes which cannot be allocated directly. These are normally miscellaneous lines on the LoP
List. Indirect asset policy codes are allocated to plant group based on the allocation of direct driver based codes.
Once all the information that is required is feed into the access database we can then start to process it.
The extract below is an example of the translation tables highlighting the CoW, its description or policy code, what the driver is, for
example factored hits, what category it’s allocated to i.e. Plant Groups.
345
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
CTCS_ExampleofTranslationTable
8) CTCS - Access Database Outputs
As noted above, the Relation Table is the key output from the Access Database as this provides the detail of all apportionments between
entities (i.e. Class Of Work (CoW) to Plant Group and Plant Group to Component).
However, another step is required in order to finalise the process by apportioning Components to Products.
9) CTCS - Component to Product Apportionments
There are three key data sources for the final stage of Core Transmission apportionments:
CTCS for Private Circuit apportionments
Call volumes from Powerhouse for Public Switched Telephone Network (PSTN) apportionments
Powerhouse for Local End apportionments
In the case of Private Circuit apportionments, CTCS summarises the detail of the End to End Circuits to record the overall volume and
length of circuits (see CTCS process).
“Link” based components will use circuit volumes while “length” based components will be based on circuit length data extracted from
the table.
346
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
10) Use of CTCS for other apportionments
CTCS data is also used to provide other bases including:
Apportionment
Description
CTCS Extract
Detail
DTNACSP
Specialised Accommodation
Extract taken from NE
List table to
understand type and
exact location of all
Transmission assets.
DTTM
Apportionment of Megastream
Costs
Output taken from the
Relation table as with
Transmission
apportionments.
Volume
Volume ofof
Transmission
assets
Transmission assets
isis used
tocreate
create
used to
a a
view of
space
view
offloor
floor
space
taken up
taken
upbybyplatform.
This is usedThis
to create
platform.
is
an overall
base an
used
to create
calculated
upon view
overall
base
of areas taken up by
calculated upon
Transmission.
view of areas taken
up by Transmission/
Switch/Access
etc.
Follows same process
LTME
Transmission Monitoring
Equipment
Apportionments follow
those of PDH Classes Of
Work.
Follows same process
as Core Transmission
apportionments.
AG129
Duct Apportionment
Length of Transmission
bearers extracted from
NE List and Network
Elements tables
Activity apportioned to
Plant Groups based
upon length extracts.
as Core Transmission
apportionments.
CTCS_Inputs_Table6OtherApportionments
11) Route to Radial
In the Wholesale SMP markets that make up Partial Private Circuit (PPC) and leased line services (Traditional Interface Symmetric
Broadband Origination Markets and the Wholesale Trunk Market) the bearers and all associated trunk and transmission services are now
reported in radial km. The underlying PPC and leased line costing system (CTCS) is now able to replicate the actual billing process which
calculates a theoretical radial distance of circuits. This radial distance is applied to the cost of these circuits (which is based on the actual
length or route of the circuit) to give a unit cost on a radial basis. This change brings the market definition on pricing and regulatory
costing methods into alignment and allows for greater transparency of the regulatory charges with the actual radial price billed. This was
implemented in the regulatory accounts for 2005/06 as described in page 20 of the Regulatory Financial Review of the “Current Cost
Financial Statements for 2006”.
The example table below shows an extract from CTCS for CO372 2Mb Trunk per Km and identifies the difference in reporting route vs.
radial by Product. Prior to the 2006 Financial Statements the price shown in the Regulatory Accounts was adjusted by a factor (“the route
to radial factor”) to adjust the billed radial price to a route basis to align with a unit cost that was shown on a route basis. The 2006
Financial Statements adopted the change described above and shows both price and cost information on a radial basis.
347
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Component
Product
Route
Radial
CO372
AG311A
557,509
196,120
CO372
P059A
-
-
CO372
P070A
2,046,852
547,144
CO372
PO70H
2,070,182
553,380
CO372
PO70I
568,415
132,751
CO372
P521A
1,252,171
228,456
CO372
P071A
1,166
223
CO372
P072A
134,772
35,244
CO372
P076A
93,021
39,154
CO372
P077A
572,365
213,187
CO372
P128D
-
-
CO372
P146A
-
-
CO372
P533A
1,704,052
354,294
CO372
P257B
CO372
P288A
121,995
59,580
CO372
P292A
99,469
32,179
CO372
P294A
CO372
P296A
58,591
CO372
P429A
89,948
25,077
CO372
P267A
4,660
10,016
CO372
P410A
60,501
45,766
CO372
P411A
94,502
25,785
CO372
P412A
69,931
19,080
CO372
P413A
188,024
142,231
CO372
P614C
14,767
5,134
CO372
Total
10,246,273
2,850,515
-
-
-
29,743
CTCS_Table7_RoutetoRadial
12) Trunk and Distribution
Following an Ofcom investigation into PPC Trunk charges, BT has revised the cost allocation for PPC trunk segments which fall into the
Wholesale Trunk market and terminating charges which fall into the Traditional Interface Symmetric Broadband Origination (TISBO)
markets. Cost apportionments from the underlying circuit costing system (CTCS) are now in line with the pricing of trunk segments i.e.
parent Tier 1 nodes.
This methodology was implemented in the 2006/07 Regulatory Accounts and apportions the costs to distribution and trunk components
using circuit’s route length split by the radial trunk to distribution ratio. This ratio is applied to the main and standby paths independently.
The diagram below gives a general overall view of the new methodology and of how circuits are to be split.
348
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
•
Stylised example of a leased line
•
Attributed to trunk
Attributed to
terminating
segments
•
•
Reserve circuit routing
•
Main circuit routing
A
LS
E
D TERM A
LS
E
D TRUNK
Parent
Tier
1
of A
B
For any circuit, first calculate the radial
distances, D TERM A, DTRUNK and DTERM B,
as defined in the market definition and
used for the pricing rule
Then calculate the proportion
D TRUNK / ( D TRUNK + D TERM A + D TERM B)
This proportion of the physical distance
on both the main and reserve circuits
should be attributed to the trunk market
These sections attributed to trunk
should ideally be taken at the centre of
each of the main and the reserve circuits
The remaining sections of the main and
reserve physical circuits should be
attributed to the terminating segment
market
D TERM B
Parent
“Market definition” circuit routing Tier
1
of B
CTCS_LeasedLineExample
Circuit split is achieved by the following 3 steps:

Calculate the radial Distribution and Trunk ratio.

Apply the ratio to the main and standby paths.

Identify elements of the circuit as Distribution and Trunk.
Details of these steps are explained below.

Calculate the radial Distribution and Trunk ratio
The radial Distribution distance is attained by taking the straight line distance from the Last Serving Exchange to its Parent Node at each
end of the circuit. If the Last Serving Exchange is a Parent Node this distance will be zero.
The radial Trunk distance is attained by taking the straight line distance between the Parent Nodes. If the Last Serving Exchange at both
ends of the circuit shares the same Parent Node this distance will be zero.
Note: - The circuit does not have to pass through the Parent Node. This is a theoretical shortest path for the circuit.
With these two distances, ratios are calculated to determine what proportion of the circuit is to be identified as Distribution and Trunk.
A end
LSE
A end
Parent
B end
Parent
3 km
40
km
B end
LSE
7 km
CTCS_RatioCalculation
Radial Distribution
= 10 (3+7)
Radial Trunk
= 40
Total
= 50
Distribution ratio
= 10/50 = 0.2
Trunk ratio
= 40/50 = 0.8

Apply the ratio to the main and standby paths
The Distribution and Trunk ratios are then applied to both the circuits’ main and standby paths independently to calculate the required
route lengths for Distribution and Trunk.
Applying the 0.2 and 0.8 ratios to this circuit will give the following results:
349
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Diagram 3
Main Path
70 km
A end
Parent
B end
Parent
Standby Path
CTCS_02and08Ratios
Main Distribution
= 70km x 0.2
= 14km
Main Trunk
= 70km x 0.8
= 56km
Standby Distribution
= 90km x 0.2
= 18km
Standby Trunk
= 90km x 0.8
= 72km

Identify elements of the circuit as Distribution and Trunk
Bearers and Line Systems are grouped into hierarchical ‘Tier Levels’ based on their platform, tier and bit rate. The grouping is shown it the
table below:
Diagram 4
SDH Tier 1
Level 1
PDH 140/566
Level 2
SDH Tier 1.5
SDH Tier 2
Level 3
SDH Tier 3
PDH sub 140
Level 4
SDH Tier 4
Level 5
CTCS_BearerandLineSystemTiers
The Bearers and Line Systems length is exhausted to the Trunk component, starting at the top level and working down until the Trunk
distance is achieved. This can be either whole Bearers/Line Systems or a proportion of their length.
The remaining Bearers/Line Systems length is then apportioned to the Distribution component. This will add up to the correct Distribution
length.
If the main path of the circuit consisted of the Bearer and Line System shown in the diagram below, using the ratio and distances
calculated previously the split would be as follows:
350
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
B end
Parent
A end
Parent
Diagram 5
2Mbit
2 km
Tier
1
40
km
140
Mbit
8 km
SDH 
 PDH
Tier 1 bearer
Tier Tier
2
3
14 6
km km
Trunk
56km
4 0km
140 Mbit Line system 8km
8km
Tier 2 bearer
14km
Tier 3 bearer
6km
2 Mbit Line system
2km
12km
Dist
14km
CTCS_BearerandLineRatioandDistances
Tier 1 Bearers and 140Mbit/s Line Systems will be identified as Trunk.
Tier2/3 Bearers will be split between Trunk and Distribution.
2Mbit/s Line Systems will be identified as Distribution.
Both the Length and Link (volume) element of the Bearers are apportioned by the same amount i.e. if 40% of a Bearer’s length is
identified as Trunk a volume of 0.4 will be used for the volume.
This methodology is then applied to the standby path using the same ratios.
13) CELA (Central and East London Area)
The 2008 Business Connectivity Market Review (BCMR) conducted by Ofcom determined that two of the TISBO markets (TISBO above
8Mbit/s and up to 45Mbit/s and TISBO above 45Mbit/s and up to 155Mbit/s) under a new geographic area were now competitive and no
overall Communication Provider had ‘Significant Market Power’, the area defined is known as CELA.
3rd Party
Customer
LSE
Local End
Tier 1
Node
Tier 1
Node
3rd Party
Customer
Local End
Tier 1
Node
POC
/ LSE
Distribution
Trunk
Point of Handover
/ Local end
Distribution
POC/
LSE
Non SMP Central and East London Area
Local End
SMP TISBO Markets
CP
Network
CP
Network
Tier 1
Node
Distribution
Point of Handover /
Local end
Distribution
SDH Transmission
Network
LSE
Key
POC /
LSE
Distribution
Trunk
CP
Network
SDH Transmission
Network
Point of handover /
Local end
Trunk
Tier 1
Node
Distribution
3rd Party
Customer
SDH Transmission
Network
Tier 1
Node
POC /
LSE
Distribution
Local end
Point of Handover
Ofcom defined CELA within the BCMR and identified the London areas by postcodes. Ofcom separately provided a further definition of
CELA (see below) and in particular what elements of a circuit (Link, Distribution, Trunk and Local End) should be excluded and pointed to
CELA and which ones remain as TISBO. This is defined below:
351
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
From the 2009/10 regulatory accounts onwards, BT identified those circuits that fall within the TISBO markets defined above and
separately identified which part of the circuit and its associated costs and revenues will be classed as CELA and therefore reported as Non
SMP within wholesale residual.
14) CTCS - Glossary
ADM - Add-Drop Multiplexers. Key item of Synchronous Digital Hierarchy (SDH) electronics which allows the circuits of varying
bandwidth to be multiplied up to utilise more efficient high bandwidth bearers.
COSMOSS - Customer Oriented System for the Management of Special Services (Private Circuits).
CTCS - Core Transmission Circuit costing System.
INS - Integrated Network Systems – Computer System for BT's Plesiochronous Digital Hierarchy (PDH) Network, containing cable and
Plesiochronous Digital Hierarchy (PDH) equipment records.
MSH - Marconi Synchronous Hierarchy. High bandwidth Transmission Network.
NDS - Network Decision Support. Tool used to extract data from INS.
OCP - Other Communications Provider (e.g. Vodafone).
PACS - Planning Assignment and Configuration System.
PDH -Plesiochronous Digital Hierarchy – PDH was the initial structure for organising the hierarchy or possible bit rates in synchronous
time-division multiplexing. Now superseded by Synchronous Digital Hierarchy (SDH).
SDH - Synchronous Digital Hierarchy.
STM - Synchronous Transport Module. Measurement of Transmission bit rate – Where n = 1, 4, 16, 64, i.e. 155, 622Mbit/s, 2.5, 10Gbit/s.
UBB - Ultra Broadband Network. Network was completed in 2003/04 to carry 2.5Gbit/s and 10Gbit/s circuits.
CWSS (Copper Wideband Serving Section)
BT’s bespoke copper based bearer between customer’s equipment and the network. Typically carries Kilostream over high-speed DSL
(HDSL).
DESS (Digital Exchange SubSystem)
DESS is a key system used for Data Management of System X exchanges. It supports the data on load, download and manipulation of
exchange software.
DESS is the key system for download, manipulation and upload of System X Exchange Data allowing new equipment and rearrangements
to be implemented on the narrow band network. Data used by DESS originates from BT UK network of System-X exchanges serving the
UK Public Switched Telephone Network (PSTN).
Data is downloaded in the form of binary system dumps, and is de-compiled on the DESS system into ASCII format. DESS provides data to
CARDVU allowing System X exchange data to be viewed and validated. DESS is a key feed to Network Audit Charging Validation.
DSR (Duct Space Records Survey)
The DSR is a standard record of the use of ducts. The DSR provides a record of cables within a duct section (i.e. between two manholes).
The high cost of providing ducts demands that this record is kept up-to-date. The DSR is used in-conjunction with the Duct plan. Each
length of duct on the Duct Plan is given a serial number. The DSR shows a cross-section of the duct on a particular length (or a number of
lengths with the same formation). This is a survey based on DSR paper records, held at drawing offices. The survey splits duct into:

Access Fibre.

Access Copper.

Core Transmission.
EASI (Exchange And Station Information)
EASI is a subsystem of Integrated Network Systems (INS). It is the master source of 1141 codes used by all design, assignment and order
handling systems. It holds the Exchange/system types which are used in Planning Assignment and Configuration System (PACS) for
planning equipment and in Service Solution Design (SSD) for taking in orders that need to terminate on certain switch types.
EBC (Element Based Conveyance)
EBC is a mechanism that measures BT network usage by Communications Providers (CPs). It is one of the factors that affect the final price
of certain calls and a matrix is used by BT to calculate the appropriate network usage charges. The EBC matrix is also provided, along with
352
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
other supporting files, to CPs allowing them to verify the bills from BT Wholesale and to correctly charge for certain calls on their invoices
to BT.
EBC types of call have a charge dependent on the optimum use of the BT Network to carry or terminate a call. The network use is defined
as the optimal exchange connectivity path a call can take and, within that, the shortest distance between the trunk exchanges in that
path. A connectivity path is based on the shortest distance between the exchanges, which lie along the path of a call between origination
and termination.
EBC charging applies to various call types, such as a call terminating on, transiting or in some cases leaving the BT Network.
EBC Data Sources
National Charging Database (NCDB).
Network Records System (NRS).
Routing Reference Model (RRM).
Point Code Information System (PCIS).
Routing Plan Database (RPD).
EM (Element Manager)
Each telecommunication equipment vendor has their own EM system based on agreed industrial standards. The Alcatel 5620 EM is a
scalable network management solution. It provides the network operator with a full range of configuration capabilities on multitechnology networks. The system holds the volumes of cards/ports that come from the NEI (Network Element Inventory) and AIM
(Analysis and Inventory Module) supplied from the EM database. Card prices are supplied by BT Wholesale.
Traffic and service parameters on frame relay, ATM, X.25, SONET/SDH and ISDN links and paths can be configured through a point-andclick graphical user interface.
The element manager provided the following benefits:

Reduced time to market for integration development and new service introduction.

This facilitates reduced cost of operations by flow-through provisioning. It also facilitates reduced maintenance cost by aggregating
all fault and performance data in systems dedicated to correlation, root cause analysis, and pre-emptive maintenance. Integrated
operational support systems enable faster service creation and higher revenues by service differentiation and shorter time to market
with new services.

Provides capability so that the management activities can be tailored by customizing or restricting views of the network for different
operators.

Reduced integration development cost.

Reduced cost of operational support systems ownership.

Improved operational support for the end customers.
EXPRES (Exchange Planning and Review System)
EXPRES is a system used for capacity planning in BT’s Local Exchange Network. It provides an inventory of 'capacity in service' available in
the Voice Network also known as the Public Switched Telephone Network (PSTN). The system uses this information to forecast future
capacity requirements.
It also links to an equipment-ordering programme for our suppliers.
EXPRES is extensively used to provide regular switch network data for reports and briefings together with data for key reports to Ofcom
and other Communication Providers (CPs). Additionally it is used throughout the business, particularly within planning offices, to provide
management statistics and data on the works programme and asset utilisation. It is the definitive source for Network Nodal Identifier
(NNI) codes.
EXPRES contains details of the hierarchy of the Voice Network. e.g. which Local exchanges are linked to which Tandem exchanges
If BT decides to re-parent a Local Exchange, other CPs must be told to enable their traffic to be re-routed. EXPRES produces the relevant
reports for the other CPs.
Within ASPIRE, EXPRES data is used to ascertain the number of lines served by specific types of exchange. It is used in combination with
Powerhouse.
ASPIRE uses Powerhouse data to obtain the number of exchange lines. EXPRES data will tell us the particular type of exchange, from
which these lines are served. The raw data from both these systems is put into a builder file and then uploaded into ASPIRE.
353
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
FastVPlan
Tracking and Modelling application used for Capacity Managing for BT Wholesale Broadband Digital Subscriber Line Access Multiplexer
(DSLAM) platform.
Featurenet
Featurenet is a BT virtual private service for the transmission of voice, facsimile and voice band data either between sites or from site to
locations not connected to the service.
GALILEO
A fault reporting Management Information System (MIS) which feeds off Customer Service Systems (CSS). GALILEO is used by the BT
Wholesale and Retail by providing online access over the BT Intranet.
GL (General Ledger)
The GL is the capital element of a company’s financial records. Every financial transaction flows through the GL. The records remain as a
permanent track of the history of all financial transactions in the company.
Geneva/Avalon
Avalon is the name of the Geneva/IRB BT Retail instance being used to bill for a multitude of products.
Deployment Date: 31/08/2006
SPDS50937
SPD Approved Date 24/01/2011
The Infinys Rating and Billing (IRB) Billing platform uses an "off the shelf" billing system supplied by Convergys based in Cambridge, UK.
The system has been built on the core Geneva platform with a number of Pre & Post processors and interfacing systems. Products billed
include PSTN, Featurenet, BT Mobile (consumer), Openworld products (narrowband and broadband), Wireless Broadband (Openzone),
Corporate Broadband (Internet Tele Worker) and a number of other small product sets.
GNCM (Global Network Cost Model)
The GNCM is a network centric model which allocates the Global Network Operating Costs and Depreciation budgets incurred by the
Global (non-UK Global Services) network infrastructure to BT Global Services products. This does not include the Infonet platform and
Italy. All costs are initially allocated to Network platforms and in the case of the IDD Product, this is the Global Carrier Voice (NICs)
Platform. The Satellite costs are allocated based on capacity utilisation. The Subsea costs are allocated using cost allocation keys fed from
the inventory of leased circuits and their costs, giving annual recurring cost by platform of international circuits and then weighted based
on the amount of NICs trunks capacity (which is carried over the UK Backhaul network and is provided by the Global Transport Planners).
GLOSSI (Global Support System for Invoicing)
GLOSSI is a global billing system offering multi-lingual invoices and reports and flexible multi-currency tariffing, pricing and reporting.
The system captures all information required for billing - including customer data, service and product data and tariff data - via a GUI
front end. The system can stand-alone or use feeds from other systems to do initial and on-going data build.
GT-X
GT-X is a call handler system and data capture (CRM) tool. The system allows calls (inbound and outbound) from a dialler to be processed
by an agent in a contact centre. Currently only outbound calls are being run from GT-X.
Agents receive calls using Graham Technology software (GT-X), which runs on UNIX, on application servers. Around 40 agents can be
allocated to each application server. The GT-X client is thin and code is held on the Oracle database within GT-X delivered tables. There
are also a number of database servers.
GT-X is used to run call centre scripts that enable agents to view customer information and record data gathered on a call. The application
interacts with UNIX processes called Service Objects which allow GT-X to interface with external systems and databases.
GT-X campaigns are used for acquisition and retention, sales and billing in both business and consumer areas.
HORIZON
This database holds detailed records for BT’s properties (e.g. tenure, ownership and floor areas).
This system contains data on the BT Estate (both office and operational). It holds data such as the Net Internal Area (this is the floor space
that is billable) and Gross Internal Area (floor space that isn’t billable). It records, at Organisation Unit Code (OUC) level, who actually
354
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
occupies the floor space so that a particular OUC can be billed for usage.
The occupancy details on the database contain the footprints of the equipment. This helps to establish the occupancy split between the
specialised, the general purpose or both for each property on the system.
HORIZON is managed and owned by Telereal Trillium who is BT’s outsourced agents for estate management.
IBIS (International Private Leased Circuit Billing Information System)
IBIS is the billing and information system for International Private Leased Circuit (IPLC) Product line. This system generates bills on a
quarterly basis and handles accounts receivables with Sales Ledger reporting.
This system contains customer data, such as their billing address, account number and all IPLCs, by circuit identifier, rented by that
particular customer.
iBuy
iBuy provides a simple, consistent process and a single tool through which all goods and services will be purchased. iBuy enables the
purchase goods or services directly, or vial a link (from iBuy) to an existing ordering tool.
ICARUS (International Circuit Allocation Record Update System)
ICARUS is an inventory and order entry system. It is dedicated to the International circuits originated / terminated in the UK (“IPC”)
transiting through the UK (“Hubbing” circuits). Particular cases to the International Private Circuits (IPC) are the circuits that terminate on
BT network but outside the UK.
It contains capacity and usage data on BT’s International Transmission Network.
It holds data on cables between exchanges that are based in various countries around the world. This system also contains routing details
for these circuits. International Circuit Provisioning teams use this system to install new circuits. It is also used for maintenance purposes
i.e. re-routing circuits.
The diagram below provides an ICARUS Overview.
International
Gateway
London
Local Access
(BT in UK)
International
Gateway
Distant End
Backhaul
Backhaul
Satellite Earth Station
or
Cable Landing Station
Local
Access
Satellite Earth Station
or
Cable Landing Station
Interconnect
Local Access
(BT outside
UK )
BT GPOP
BT GPOP
BT
International
Network
WetLink
BT Provided
Correspondent Provided
Icarus_Overview
IIDA (Inland and International Directory Assistance)
IIDA, or directory enquiries, is a phone service used to find out a specific telephone number and/or address of a residence, business, or
government entity.
355
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
INCA (Inter Network Call Accounting)
This system is used to record calls that leave/arrive from/to the BT Network via an Interconnect with an Other Communications Provider
(OCP). The records are from some 900+ exchanges and arrive via a mediator. The types of calls are:

Originating on the BT Network, terminating on an Other Communication Provider (OCP) Network (BT makes a Payment to Other
Communication Provider (POCP) for terminating the call).

Originating on an OCP Network, terminating on the BT Network (BT receives a Receipt from Other Communication Provider (ROCP).

Originating (0800/0808, IA/CPS) on the BT Network, terminating on an Other Communication Provider (OCP) Network (BT receives a
Receipt from Other Communication Provider (ROCP)).

Originating (0800/0808, IA/CPS) on an OCP Network, terminating on the BT Network (BT makes a Payment to Other
Communication Provider (POCP)).

Transit Traffic – where calls originate and terminate on OCPs Network. The BT Network is used to carry traffic between these two
networks.
When a customer makes a call that passes between BT and another operator’s network the details of that calls are collected at the
exchange that forms the interconnection point between them. The Streamer takes all the interconnect call records from MEDIATOR which
has polled the exchanges for this data. The Streamer then validates these calls against a model of the network routing information. Files
are then created from these validated records and these are streamed into the Company system for consolidation into summary tables.
The Company system individually charges each call using the information provided by the contract that BT has with each other operator.
The pricing reference data is maintained using a graphical user interface. Data used for charging is provided by EBC and NCDB.
INCA is the charging engine within the overall GenIUS (Geneva Integrated Universal System) used to pass on charging data to the pricing
engine, Geneva, to bill OCPs for their telephony traffic, carried over the BT Network.
INCA is able to apply charging data for the proportion of the BT Network used to transport an interconnect call. INCA is also used
extensively to check bills received from OCPs.

Maps the INCA data to Regulatory Products.

Converts individual call detail records into amalgamated ‘buckets’ of data (summarised) dependent on EBC band, time of day etc.
and sorts this data into relevant OCP files.
Checks products that use basic and advanced features of the Derived Services Network (Basic Products are Freephone, Low Call 0845,
0870, speaking clock. Advanced Products are Televoting, Mid Call Diversion and Non Geographic Number Portability).
Data is summarised and incorporated with Geneva data to add pricing data and to produce invoices.
INS (Integrated Network Systems)
INS is the family name for the architecture encompassing a group of mainframe subsystems supporting Plesiochronous Digital Hierarchy
(PDH) core network planning and utilisation processes. These processes manage the assignment of BT's core and wideband network and
transmission equipment areas.
It is one of the major Operation Support Systems (OSS) within BT for (PDH) plus the analogue network and holds all data for Cables (Fibre
and Copper - non Customer Service System (CSS)), Radio, Bearers, Switch, Equipment and Private Services and is one of the largest online
data systems in Europe.
It underpins network technologies and topologies such as Ultra Broadband (UBB), Wavelength Division Multiplexing (WDM), Synchronous
Digital Hierarchy (SDH), Internet Protocol (IP), PDH, Kilostream and high bit rate services. It also records the inter exchange network for
Public Switched Telephone Network (PSTN) and Featurenet. It fully supports the three main business processes of Provision, Build and
Repair.
INS is essentially a data warehouse and is a representation of physical bearers and equipment for logical solutions. It provides end to end
routing design and solutions across network platforms for public, private and network services, 20CN and 21CN. It also provides a level of
resilience checking.
JRMIS (Job Recording Management Information Systems)
This system contains job recording data for field engineers and is used to monitor engineering time. The system receives Engineers
Unauthorised and Authorised time booking data and job information from various feeder systems, processes it and produces various
reports and extracts. The reports and extracts are used by various lines of business.
LLCS (Local Line Costing Study)
This is normally conducted annually and is valued using current equipment costs and installation prices. This LLCS covers ducts that
contain at least one local cable.
356
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
LLFN (London Local Fibre Network)
The LLFN is an analogue private circuit overlay platform providing services to major customers, with an enhanced service wrap within the
0207 and 0208 areas of London only.
The platform is now over 20 years old and primarily is based on PDH technology but is now making more use of SDH. There are various
bespoke systems that support the platform along with a raft of BAU systems for order/faults management.
LoP List (Life of Plant List)
LOP List details the Capital Fixed Assets for BT Operate & Openreach on a monthly basis, and is made available to users on a request only
basis. It shows details of registered assets down to Policy Code level; Work in Progress, Backlog Registrations and Accounting Adjustments
at CoW level. The totals should reconcile with the Fixed Assets figures in the published Balance Sheet.
• LOP List was first produced in financial year 1996/97.
• The LOP List is loaded into SharePoint where access permission is granted through the Fixed Assets Manager.
• Asset Policy Codes (APC's) can be created / deleted during any financial year depending on demands/decline of technology. New assets
and current assets depreciating would obviously be a change in the year and write-offs which occur from building closure: assets that
have no use etc. will change also. The Book life of the assets may change dependent on the Asset Life Review (ALR) which is proposed by
BT Group Regulatory Finance.
This is an excel spreadsheet that contains Class of Work (CoW) information by Asset Policy Code for the assets belonging to BT Wholesale
or Openreach. This excel spreadsheet is prepared on a quarterly basis by the BT Group Fixed Assets team. The LoP List is loaded into
Livelink where access permission is granted through the Fixed Assets Manager. In Regulatory Reporting, the information on the excel
spreadsheet is used in base preparation. The inputs to the excel spreadsheet is from the Oracle Fixed Assets Register and Central
Information Database (CID) Work In Progress report.
Long Run Incremental Cost (LRIC) model for Main Exchanges
A method of cost analysis based on an economic concept which separates costs of a specific “increment” of business activity from the
overall costs of the business with the advantage of enabling the business to identify the separable costs of providing certain services, and
thus to inform decisions as to the pricing of those services.
The model dimensions the optimum network configuration for Main Exchanges using a Modern Equivalent Asset (MEA) of Next
Generation Switches for both the MDX (System X Main Exchanges) and NGSC (Next Generation Switch) CoWs.
Using feeds from EXPRES, NRS and the Switch Deployment Plan the cost of each unit is valued individually and the total value of the
individual building blocks are mapped against a matrix to provide the fraction of cost pertinent to Main Exchange Call Set-Up and Main
Exchange Call Duration.
MEDIATOR
Mediator has replaced Network Mediation Processor (NMP) as the data collection system, polling the majority of BT’s Network Elements.
It interfaces with a variety of Billing and Management Information systems and provides a billing data feed for Wholesale, Retail and
Global Services. MEDIATOR collects the majority of BT’s billing and other data streams from all network elements (other than 21CN) and,
after transformation, makes the data available for collection by other downstream billing platform components such as the Service
Domain Processor (SDP), where the call records are priced prior to subsequent transfer to Customer Service System (CSS).
The system components, collectively known as ‘MEDIATOR’, comprises of:

Unix Mediation Engines (ME).

A Windows server known as the Mediation Control Centre.

X25 network access nodes (MegaPACs).

Automatic backup and restore capability (Net backup).

UNIX tape server for the input of exchange data in case of data communications network failure.
Merlin Performance Management
Merlin Performance Management provides a strategic Business Intelligence Reporting Platform for Customer Contact Centres within BT
Retail and is used to record call statistics within the Centres.
The reports from Merlin are vital at senior management level to provide visibility of the previous day's performance in each of the main
business units (Business, Consumer Sales, Customer Service, etc.). The results on the reports will then drive key decisions on the immediate
focus for each of these areas for the forthcoming day. These reports also provide Key Performance Indicator (KPI) data at agent level
which provide a mechanism for relevant comparison of performance and improvement purposes which can then be used to drive
357
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
performance improvement plans.
Metro Node/I-Node/MSAN Node cost model
Contains the various building blocks of the Metro Node, I-Node and MSAN (Multi Service Access Node) derived from the unit prices and
overall projected spend on the items.
MSIP (Multi Service Intranet Platform)
MSIP currently* consists of two sub-platforms delivering ATM, Frame Relay and Ethernet connectivity in the UK. The sub-platforms are
integrated together to offer customer accesses at speeds from 64kbps to 622Mbps. Full automated provisioning of PVCs for the Cisco BPX
and Alcatel sub-nets is standard with a minimum bandwidth of 4kbps.
The BT Alcatel-Lucent ATM network supports the national 20C BT Broadband backhaul infrastructure (carrying the IPstream &
Datastream products) as well as the Cellstream, Framestream and Megastream Ethernet customer products along with backhaul trunking
for Dial IP, IP VPN, 21 DCN and a number of other products and services. The network is based on a tiered hierarchy of ATM switches
(7470, 7670RSP & 7670 ESE) using STM1, STM4 and STM16 SDH trunks. The Network provides customer connectivity at sub E1 Frame,
E1 ATM, E1 Frame, E3 ATM, E3 Frame, STM1, STM4, 10/100 BaseT Ethernet and GigE Ethernet.
*The Cisco BPX/MGX platform provides BTs national Framestream Service. The network comprises of Cisco BPX ATM switch nodes
interconnected by STM1 core trunks and Cisco MGX nodes associated with the BPXs to provide E1 and Sub E1 ports for customer access.
Interworking trunks to the Alcatel ATM Network provide Cell/Frame services and Frame Relay Gateways to the IPVPN network provide IP
enabled services.
Framestream Network: 81 Nodes with 49 Core links **
**NB the UK CISCO Framestream platform went unsupported in Sep 2011 and is at the very latest stages of closure with all remaining
users off by July 2012.
Age of Network: ATM Network-1995, Framestream Network-1996.
Platform Details:
ATM Network: 508 switches with 6766 Core links, 1568GBt/s Physical Core capacity (2453GBit/s effective).
Ownership:
The Platform is owned by BT Global Services and is operated and managed on their behalf by BT Operate and BT Innovate & Design.
NCDB (National Charging Database)
This system holds reference data by which voice calls are charged.
The reference data is used to generate a charge for a particular call. When a call is made, the local telephone exchange generates a call
record. The originating number and receiving number are then cross-referenced against the NCDB so that a charge for the call can be
calculated.
NEMOS-DR (NEtwork MOdelling System – Data Repository)
The system contains the route performance information for Network Capacity management.
The basic data needed in order to perform the network route capacity management function is information about a route's busy hour
performance and loading, in terms of traffic, calls offered, carried and lost, together with an indication of the capacity available. The data
requirements are very similar to those for real time network management and so NEMOS-DR makes use of the large amount of data
collected by TrafficHawk - the Network Traffic Management System (contains raw unprocessed call data).
TrafficHawk collects data from all monitored exchanges every five minutes and the Network Managers use it to monitor and identify
network problems and take short term corrective action as necessary. TrafficHawk combines the relevant data from three to five minute
periods and transmits a file to NEMOS-DR every fifteen minutes. The collected data is then grouped into Day, Afternoon, Evening and
Night periods within which busy-hours are identified. This data enables the Network teams to manage the Public Switched Telephone
Network (PSTN).
NetView
NetView is a Business Intelligence Reporting system produced and managed by the Openreach Business Intelligence team. This system
provides reporting and analytical capabilities across a wide set of standard Openreach measures.
Nexus
Nexus is a time recording and performance management system used by the sales force to introduce Sales Order details that the Order
Entry team will review and, if wrong return to Sales team to complete. If everything is OK, an Order is introduced in the Order Entry And
358
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources
Delivery System.
NIMS (Network Instruction Management System)
The NIMS application serves the Openreach Planning, Programming and control communities. It is a sophisticated database tool which is
used to programme, schedule, plan and execute work and to control and monitor progress throughout each phase of the job's life-cycle.
It enables aspects of works planning, logistics control and overall project management to be co-ordinated and prioritised at national and
task level. It assists in optimising capital resource, available time and work to meet business requirements. It is the data warehouse system
for TCP and WFMT so is critical to the Network Engineering Journey (NEJ) and NGA both FTTC and FTTP. There are 4400 registered users
of which 100 are concurrent at any one time.
NJR (National Job Recording System)
A BT system which collects, verifies, reconciles, authorises, collates and disseminates engineering time, allocation and
overtime/allowances data for NewGrid grades within BT.
NRS (Network Records System)
NRS is the national system for the allocation/de-allocation and display of Public Switched Telephony Network (PSTN) 2Mb Switch Ports
and related switch data. The information held by NRS is derived from PSTN switch data, which is refreshed regularly from System X,
AXE10, NGS, Hybrid and Call Server switches. The received data is reconciled against the existing NRS data and any anomalies are raised
as Reconcile Exceptions. During 2008 the functionality provided by NRMS (Network Routing and Modelling System) was subsumed into
NRS. This functionality is referred to as NRS-NRMS and provides users with a graphical representation of the current routing structure of
the network. Also in 2008 the CRAFT system was merged onto the same platform as NRS. The CRAFT System produces Route Factors for a
range of Services and Operators for telecommunications across the United Kingdom. Route Factors give a view of network component
utilisation across BT’s PSTN and meet requirements of the Communications Act 2003. They are also published in BT’s annual accounts.
NB: The NRS-CRAFT system is in the form of a platform share only. CRAFT is not accessible via NRS, and CRAFT users have completely
separate access/access controls to NRS, but a both way interface exists between NRS and CRAFT.
Interfaces with other systems:

DESS – Network - Digital Exchange Support System. It contains print files (switch archive data) for System X exchanges.

MMS and MNOSS – Network - NGS hybrid switches use AXD/AXE processors. To get a feed from the AXD part of the processors MMS
is used. NRS Polls MNOSS data from CSAM-D into NRS.

NMP – Network - Network Mediator Protocol. NRS print files of AXE10, NGS, HYBRID and Call Server (non-ISML data) exchanges are
received from NMP.

APG40 – Network - APG40 provides Call Server prints to NRS on daily basis (ISML data)

NIO and RDB – Network - NRS receives AXE hardware information from NIO interface in XML file format.

ISML - Netconf – Network - NRS Polls ISML data from CSAM-D into NRS.

CTM – Network - CTM provides CTM print to NRS.

WOOSH – GUI - WOOSH is the GUI of NRS.

Fusion Work – OSS - NRS polls print files from Fusion Works for CRAFT.

Email – Every Friday auto generated mail is dispatched to NRS Helpdesk detailing reconcile exception counts per switch type etc.

Email – Daily Report at 12:00 detailing switches breaking certain thresholds.

Email – From Release N (29/03/10), on the 14th of each month a script runs to produce Global Number Portability reports for
System X, NGS and Hybrid switches and email them to John McKeown.

Email – Monthly break down of Reconcile Exceptions by NNI, Rec Excep type etc. to NRS Helpdesk.

Fast Alarm – OSS - Email with 4 zipped CSV files is dispatched to concerned users whenever report is requested.

NEMOS–MT – OSS - NEMOS-MT imports routing files for System X and AXE10 switches from NRS via Reports option (Appendix 24A)
and email).

CRAB (OTDB) – OSS - Data related to circuits, termination details are provided to OTDB (One Truth Database) - NRS System
Allocation tables weekly by FTP for “Interconnect Inventory”. (CRAB = Circuit Revenue Assurance Board).
359
Detailed Attribution Method (DAM) 2012
Section 9 – Data Sources

UII – OSS - Unified Inventory Interface. NRS provides detail of specified tables to UII with help of Views.

EBC – OSS - EBC is used to charge transit traffic. It creates a matrix with the POC (Point Of Connect) where the call leaves the BT
network. The Exit POC’s is provided by NRMS using the eplagent utility.

NRMS–A – OSS - The NRMS network audit system referred to as NA provides a definitive view of the network to downstream
systems. This view consists of nodes, links between nodes and traffic destination to decode structure. Information is received from
the NRMS System, re-arranged and then fed out to OTIS. GUI access is provided for non-standard routes.

CSAM–N – OSS - NRS provides PACS IP association detail for call server to CSAM-N via DB Link.

CRAFT – OSS - CRAFT supports call routing. CRAFT System produces Route Factors for a range of Services and Operators for
telecommunications across the United Kingdom. Route Factors give a view of network component utilisation across BT’s PSTN and
meet requirements of the Telecommunications Act 2003. They are also published in BT’s annual accounts.

PACS 20C – OSS - NRS is used for 2M Routes and Circuit Allocations and needs information held in PACS (Planning Assignment and
Configuration System) to allow ADM mapping during the allocation process. The PACS system delivers 2 CSV files to NRS through
FTP, on a weekly basis for NGS and NGS-Hybrid switch allocations. ADM, DDF_1141 and Highband_port information is provided by
PACS which are updated in the SYS_ALLOCATION and SYS_HY_ALLOCATION TABLES. PACS 21CN – OSS - provides inventory and
Activation notification to NRS (XML link to transfer PACS data to NRS).

CSAM–D – OSS - CSAM provides various feeds to NRS. For example MNOSS, ISML etc.

ANDES – OSS - interrogates NRS (in_information_only = Y) or interrogates and auto-allocates on NRS. Jobs recorded in NRS’s
ANDES_Request_Log. NRS supplies allocation information to ANDES for MML generation and switch onload. ANDES cease jobs also
update NRS making terminations "spare" on completion. (JDBC link to allow automation of 2Mb Switch termination allocation/deallocation and database link for Data Warehouse).

NBI / MNOSS-CORBA / MMS and MNOSS (CSAM-D) – OSS - This interface, known as the NorthBound Interface (NBI) is currently
disabled following sys_hy_allocation data corruption problems. NGS Hybrid switches use AXD/AXE processors. To get a feed from the
AXD part of the processors (board = ATM) MMS is used. NRS Polls MNOSS data from CSAM-D into NRS for NGS Hybrid ATM system
data. Also, where a connection is made via one switch between two other switches, i.e. tunnelled, we cannot deduce from the AXE
data which ports are in use. This information is derived with the help of NBI.

BBCM – Database link to allow BBCM a specified view of NRS data.

“In house” graphical user interfaces (GUIs):
1
9
Q u e ry
M o d u le
GUI
A v a ila b le o n
w o o sh N R S .
O n s c r e e n d is p la y d e t e r m in e d b y d ir e c t u s e r in p u t – in t e r r o g a t io n
2
0
A llo c a t io n
M o d u le
GUI
A v a ila b le o n
w o o sh N R S .
O n s c r e e n d is p la y / in p u t d e t e r m in e d b y d ir e c t u s e r in p u t f o r n e w / c e a s e /
in c r e a s e / d e c r e a s e r o u t e / c o n c e n t r a t