Report requested by Ofcom describing certain changes to the
Accounting Documents for the year ended 31 March 2013 and
illustrating the resulting differences to the Current Cost Financial
Statements had those changes not applied
3 October 2013
Contents
Section 4.1 – Illustrative difference of methodology changes on costs allocated to each
market ..................................................................................................................... 18
Report requested by Ofcom describing certain changes to the
Accounting Documents for the year ended 31 March 2013 and
illustrating the resulting differences to the Current Cost Financial
Statements had those changes not applied
Section 5 Explanation of reported methodology changes ............................................... 19
Section 5.1 – Allocation of Digital Subscriber Line Access Multiplexers (DSLAM)
overhead and asset costs between WBA Markets 1, 2 and 3 ....................................... 20
Section 1 Introduction to the report requested by Ofcom describing certain changes to the
Accounting Documents for the year ended 31 March 2013 and illustrating the resulting
differences to the Current Cost Financial Statements had those changes not applied.......... 3
Section 5.2 – WBA bandwidth volumes ..................................................................... 21
Section 1.1 – Introduction .......................................................................................... 4
Section 5.4 – Effect of Digital Access Carrier System (DACS) on allocation of E-side and
D-side copper costs to Wholesale Line Rental (WLR) .................................................. 23
st
Section 5.3 – Allocation of 21 Century Network (21CN) equipment costs .................. 22
Section 1.2 – Structure of the report ........................................................................... 4
Section 2 Illustrative Consolidated Performance Summary of 2012-13 Applying 2011-12
Methodologies ............................................................................................................... 5
Section 5.5 – Change in allocations for Special Fault Investigations (SFIs), Broadband
Boost, Frame Repair, Dropwire Repair, Service Level Guarantees (SLGs) and Time
Related Charges (TRCs) ............................................................................................. 24
Section 2.1 – Illustrative Consolidated Performance Summary ..................................... 6
Section 5.6 – Openreach computing and development costs ...................................... 26
Section 3 Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital
Employed Applying 2011-12 Methodologies .................................................................. 8
Section 5.7 – Allocation of specialised accommodation space..................................... 27
Section 5.8 – Allocation of specific group provision ................................................... 28
Section 3.1 – Attribution of Wholesale Current Costs 2013 as reported ......................... 9
Section 5.9 – Allocation of Career Transition Centre (CTC) costs .................................. 29
Section 3.2 – Illustrative attribution of Wholesale Current Costs 2013 restated on basis of
2011-12 methodologies .......................................................................................... 10
Section 5.10 – Allocation of vacant space in exchanges.............................................. 30
Section 5.11 – Allocation of Openreach overheads .................................................... 31
Section 3.3 – Illustrative attribution of Wholesale Current Costs 2013 impact of changes
on results ................................................................................................................ 11
Section 5.12 – Merger of BT Innovate & Design (BTID) and BT Operate (BTO) to create
BT Technology, Service & Operations (BT TSO) ........................................................... 32
Section 3.4 – Illustrative attribution of Wholesale Current Costs 2013 impact of changes
on results as a percentage ........................................................................................ 12
Section 5.13 – Current Cost Accounting (CCA) valuation of Dropwire .......................... 34
Section 3.5 – Attribution of Wholesale Current Cost Mean Capital Employed 2013 as
reported .................................................................................................................. 13
Section 5.14 – CCA valuation of exchange power equipment and specialised
accommodation plant .............................................................................................. 35
Section 3.6 – Illustrative attribution of Wholesale Current Cost Mean Capital Employed
2013 restated on basis of 2011-12 methodologies ................................................... 14
Section 6 Illustrative difference of methodology changes on FAC .................................... 36
Section 6.1 – Illustrative for Wholesale Analogue Exchange Line Services ................... 37
Section 3.7 – Illustrative attribution of Wholesale Current Cost Mean Capital Employed
2013 impact of changes on results ........................................................................... 15
Section 6.1.1 – Illustrative for Wholesale Analogue Exchange Line Services
calculation of FAC based on component costs and usage factors ............................ 38
Section 3.8 – Illustrative attribution of Wholesale Current Cost Mean Capital Employed
2013 impact of changes on results in percentage terms ............................................. 16
Section 6.2 – Illustrative for Wholesale ISDN2 Exchange Line Services ........................ 42
Section 4 Illustrative difference of methodology changes on costs allocated to each market
.................................................................................................................................... 17
Section 6.2.1 – Illustrative for Wholesale ISDN2 Exchange Line Services calculation of
FAC based on component costs and usage factors ................................................. 43
Section 6.3 – Illustrative for TISBO (up to and including 8Mbit/s) ............................... 47
Page 1
Contents
Section 6.14 – Illustrative for Wholesale Broadband Access Market 2 ....................... 104
Section 6.3.1 – Illustrative for TISBO (up to and including 8Mbit/s) calculation of FAC
based on component costs and usage factors ....................................................... 49
Section 6.4 – Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s) ...... 53
Section 6.14.1 – Illustrative for Wholesale Broadband Access Market 2 calculation of
FAC based on component costs and usage factors ............................................... 105
Section 6.4.1 – Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s)
calculation of FAC based on component costs and usage factors ............................ 54
Section 7 Illustrative difference of methodology changes on Network Activity Statement
.................................................................................................................................. 109
Section 6.5 – Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s) .. 58
Section 7.1 – Illustrative difference of methodology changes on Network Activity
Statement 2013..................................................................................................... 110
Section 6.5.1 – Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s)
calculation of FAC based on component costs and usage factors ............................ 59
Section 6.6 – Illustrative for AISBO (up to and including 1Gbit/s) ............................... 63
Section 6.6.1 – Illustrative for AISBO (up to and including 1Gbit/s) calculation of FAC
based on component costs and usage factors ....................................................... 65
Section 6.7 – Illustrative for Wholesale Local Access (WLA) ........................................ 69
Section 6.7.1 –Illustrative for Wholesale Local Access (WLA) calculation of FAC based
on component costs and usage factors ................................................................. 70
Section 6.8 – Illustrative for Call origination on fixed public narrowband networks ...... 74
Section 6.8.1 – Illustrative for Call origination on fixed public narrowband networks
calculation of FAC based on component costs and usage factors ............................ 75
Section 6.9 – Illustrative for Technical Areas (Interconnect Circuits) ............................ 79
Section 6.9.1 – Illustrative for Technical Areas (Interconnect Circuits) calculation of
FAC based on component costs and usage factors ................................................. 80
Section 6.10 – Illustrative for Fixed Call Termination .................................................. 84
Section 6.10.1 – Illustrative for Fixed Call Termination calculation of FAC based on
component costs and usage factors ...................................................................... 85
Section 6.11 – Illustrative for Wholesale Trunk Segments ........................................... 89
Section 6.11.1 – Illustrative for Wholesale Trunk Segments calculation of FAC based
on component costs and usage factors ................................................................. 90
Section 6.12 – Illustrative for Technical Areas (Point of Handover) ............................. 94
Section 6.12.1 – Illustrative for Technical Areas (Point of Handover) calculation of
FAC based on component costs and usage factors ................................................. 95
Section 6.13 – Illustrative for Wholesale Broadband Access Market 1 ......................... 99
Section 6.13.1 – Illustrative for Wholesale Broadband Access Market 1 calculation of
FAC based on component costs and usage factors ............................................... 100
Page 2
Section 1 – Introduction to the report requested by Ofcom describing certain changes to the Accounting
Documents for the year ended 31 March 2013 and illustrating the resulting differences to the Current Cost
Financial Statements had those changes not applied
Section 1
Introduction to the report requested by Ofcom describing certain changes to the Accounting
Documents for the year ended 31 March 2013 and illustrating the resulting differences to the
Current Cost Financial Statements had those changes not applied
Page 3
Section 1 – Introduction to the report requested by Ofcom describing certain changes to the Accounting
Documents for the year ended 31 March 2013 and illustrating the resulting differences to the Current Cost
Financial Statements had those changes not applied
Section 1.1 – Introduction
Section 1.2 – Structure of the report
As a standard part of the process for producing and publishing BT’s Current Cost Financial
Statements each year BT reviews its Accounting Documents, including the attribution and
valuation methodologies set out in those Accounting Documents, to identify improvements
that are superior to the prior year methodologies. BT updates the attribution and valuation
methodologies, as set out in the Accounting Documents, to reflect changes in BT’s
organisation and structure, market changes, technological changes, changes in available
data and regulatory changes, all to ensure that the Current Cost Financial Statements are as
robust as possible. BT’s methodology changes and corrections are subject to stringent
internal review. As part of this review BT carefully considers the regulatory accounting
principles which it applies in the required order of priority. The Current Cost Financial
Statements for the year ended 31 March 2013 published on 31 July 2013 had an
unqualified audit report.
The Report follows the structure and layout requested by Ofcom. A description of each
section is provided below:



In respect of a number of attribution and valuation methodology changes that were
changed between the Current Cost Financial Statements for the year ended 31 March 2012
and the Current Cost Financial Statements for the year ended 31 March 2013, being those
attribution and valuation methodology changes and corrections detailed in this document,
Ofcom requested BT to provide and publish a description of certain of the changes and
produce tables showing the effect of those changes. This ‘Report requested by Ofcom
describing certain changes to the Accounting Documents for the year ended 31 March
2013 and illustrating the resulting differences to the Current Cost Financial Statements had
those changes not applied’ (the “Report”) is BT’s response to that request.



The Report does not include the effect of changing the following methodologies as this
would not be practicable:



The Current Cost Accounting valuation of duct and copper assets from an
absolute basis to an indexed RPI approach;
Ethernet switch costs; and
Average debtor days from 28 days to 22 days.
The Report is not a replacement for, nor should it be regarded as an alternative to, BT’s
published Current Cost Financial Statements for the year ended 31 March 2013. The Report
is no more than a description of the methodology changes detailed in the Report and an
illustration or view of the Current Cost Financial Statements for the year ended 31 March
2013 had those Statements been produced using the prior year 2011-12 methodologies.
The Report has not been audited.
Page 4
Section 2 – compares the consolidated results of the Access Markets, Other
Wholesale Markets and Residual Markets as reported for the year ended 31
March 2013 to the results for those markets had certain changes to attribution
and valuation methodologies not been applied.
Section 3 – compares the attribution of wholesale current costs and wholesale
current cost mean capital employed by individual Access Market, Other Wholesale
Market and Residual Market as reported for the year ended 31 March 2013 to
the results had certain changes to the attribution and valuation methodologies
not been applied.
Section 4 – provides the illustrative difference of methodology changes on costs
allocated to individual Access Markets, Other Wholesale Markets and Residual
Markets.
Section 5 – provides an explanation of the reported methodology changes.
Section 6 – compares the Fully Allocated Cost results of the individual Access
Markets and Other Wholesale Markets at a service level as reported for the year
ended 31 March 2013 to the results for those markets had certain changes to the
attribution and valuation methodologies not been applied.
Section 7 – compares the Network Activity Statement as reported for the year
ended 31 March 2013 to the Network Activity Statement had certain changes to
the attribution and valuation methodologies not been applied.
Section 2 – Illustrative Consolidated Performance Summary of 2012-13 Applying 2011-12 Methodologies
Section 2
Illustrative Consolidated Performance Summary of 2012-13 Applying 2011-12 Methodologies
Page 5
Section 2 – Illustrative Consolidated Performance Summary of 2012-13 Applying 2011-12 Methodologies
Section 2.1 – Illustrative Consolidated Performance Summary
Revenue
CCA
operating
costs
CCA return
before
taxation
MCE
Return
on MCE
£m
£m
£m
£m
%
Access Markets
4,495
3,072
1,423
11,640
12.2 %
Other Wholesale Markets
1,053
794
259
1,478
17.5 %
5,548
3,866
1,682
13,118
12.8 %
As reported for the year ended 31 March 2013
Markets
Residual Activities
Wholesale residual activities
Retail residual activities
Roundings
Total Markets & Activities
2,565
1,966
599
2,437
24.6 %
14,615
13,650
965
103
936.9 %
17,180
15,616
1,564
2,540
61.6 %
2
(1)
3
1
22,730
19,481
3,249
15,659
n/a
20.7 %
Revenue
CCA
operating
costs
CCA return
before
taxation
MCE
Return
on MCE
£m
£m
£m
£m
%
Access Markets
4,495
3,044
1,451
11,681
12.4 %
Other Wholesale Markets
1,053
817
236
1,404
16.8 %
5,548
3,861
1,687
13,085
12.9 %
Restated on basis of 2011/12 methodologies
Markets
Residual Activities
Wholesale residual activities
Retail residual activities
Roundings
Total Markets & Activities
2,565
1,987
578
2,275
25.4 %
14,615
13,720
895
253
353.8 %
17,180
15,707
1,473
2,528
58.3 %
2
2
3,162
15,615
2
22,730
19,568
Page 6
n/a
20.2 %
Section 2 – Illustrative Consolidated Performance Summary of 2012-13 Applying 2011-12 Methodologies
Section 2.1 – Illustrative Consolidated Performance Summary (continued)
Effect of changes on results
Revenue
CCA
operating
costs
CCA return
before
taxation
MCE
Return
on MCE
£m
£m
£m
£m
%
-0.2%
Markets
Access Markets
0
28
(28)
(41)
Other Wholesale Markets
0
(23)
23
74
0.7%
0
5
(5)
33
-0.1%
Wholesale residual activities
0
(21)
21
162
Retail residual activities
0
(70)
70
(150)
0
(91)
91
12
Roundings
0
(1)
1
(1)
Total Markets & Activities
0
(87)
87
44
Revenue
CCA
operating
costs
CCA return
before
taxation
MCE
%
%
%
%
Residual Activities
Effect of changes on results as a percentage
Markets
Access Markets
0.0%
0.9%
-1.9%
-0.4%
Other Wholesale Markets
0.0%
-2.8%
9.7%
5.3%
0.0%
0.1%
-0.3%
0.3%
Wholesale residual activities
0.0%
-1.1%
3.6%
7.1%
Retail residual activities
0.0%
-0.5%
7.8%
-59.3%
0.0%
-0.6%
6.2%
0.5%
0.0%
-0.4%
2.8%
0.3%
Residual Activities
Total Markets & Activities
Page 7
-0.8%
583.1%
3.3%
n/a
0.5%
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Section 3
Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Page 8
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Total Markets
£m
Wholesale Residual
£m
Total Other Wholesale
& SMP Markets
£m
Wholesale broadband
access - Market 2
£m
Wholesale broadband
access - Market 1
£m
Sub-total Other
Wholesale & SMP
National Markets
£m
Technical areas (Point
of Handover)
£m
Wholesale trunk
segments
£m
Fixed call termination
£m
Technical areas
(Interconnect Circuits)
Wholesale local access
£m
Single transit on fixed
public narrowband
networks
AISBO (up to and
including 1Gbit/s)
£m
Call origination on
fixed public
narrowband networks
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
£m
Total Access Markets
TISBO (above 8Mbit/s
up to and including
45Mbit/s)
£m
TISBO (up to and
including 8Mbit/s)
£m
Wholesale business
ISDN30 exchange line
services
Wholesale ISDN2
exchange line services
As reported for the year ended 31 March
2013
Wholesale analogue
exchange line services
Section 3.1 – Attribution of Wholesale Current Costs 2013 as reported
£m
£m
£m
£m
£m
£m
£m
Operating Costs of Wholesale Services:
EOI Charges
Provision/Maintenance
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
119
59
178
(178)
0
169
8
10
36
2
2
11
120
358
12
0
2
11
2
1
28
17
7
52
197
607
Network Support
111
4
5
19
1
1
28
51
220
3
0
1
3
1
0
8
3
1
12
55
287
General Support
178
7
13
36
2
2
67
98
403
12
0
2
7
2
1
24
14
6
44
178
625
General Management
261
10
18
47
3
3
93
115
550
21
1
5
12
4
1
44
33
15
92
286
928
10
0
1
2
0
0
3
5
21
0
0
0
0
0
0
0
1
0
1
11
33
126
10
12
50
3
4
16
91
312
41
1
6
43
4
1
96
47
14
157
130
599
Bad Debts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other Costs
22
2
3
10
1
1
8
13
60
5
0
1
5
1
0
12
8
3
23
754
837
Finance and Billing
Accommodation
Depreciation - Land & Buildings
16
2
2
10
1
1
4
22
58
6
0
1
7
1
0
15
9
3
27
28
113
414
13
12
35
2
2
74
143
695
2
0
1
2
2
1
8
21
6
35
78
808
28
3
17
55
5
9
59
8
184
16
1
4
18
9
1
49
64
29
142
226
552
107
4
6
18
1
1
54
90
281
10
0
1
9
1
1
22
27
11
60
260
601
565
22
37
118
9
13
191
263
1,218
34
1
7
36
13
3
94
121
49
264
592
2,074
1,442
63
99
318
21
26
417
756
3,142
128
3
24
117
27
7
306
363
154
823
2,025
5,990
Holding Loss/(Gain)
(203)
(6)
(3)
(14)
(1)
(2)
(23)
(69)
(321)
(4)
0
(1)
(4)
(5)
0
(14)
(4)
(1)
(19)
(22)
(362)
Supplementary Depreciation
203
6
(1)
(2)
(1)
(1)
(5)
71
270
2
0
0
2
2
0
6
(10)
(6)
(10)
(26)
234
Other Adjustments
(19)
0
2
2
0
0
11
(15)
(19)
1
0
0
1
0
0
2
(2)
0
0
(11)
(30)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63
97
304
19
23
400
743
3
23
116
24
7
300
347
147
794
- Access
- Switch and Transmission
- Other related
Sub Total Depreciation
Sub Total HCA Operating Costs
CCA Adjustments:
Roundings
Total CCA Operating Costs
1,423
3,072
Page 9
127
1,966
5,832
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Total Markets
£m
Wholesale Residual
£m
Total Other Wholesale
& SMP Markets
£m
Wholesale broadband
access - Market 2
£m
Wholesale broadband
access - Market 1
£m
Sub-total Other
Wholesale & SMP
National Markets
£m
Technical areas (Point
of Handover)
£m
Wholesale trunk
segments
£m
Fixed call termination
£m
Technical areas
(Interconnect Circuits)
Wholesale local access
£m
Single transit on fixed
public narrowband
networks
AISBO (up to and
including 1Gbit/s)
£m
Call origination on
fixed public
narrowband networks
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
£m
Total Access Markets
TISBO (above 8Mbit/s
up to and including
45Mbit/s)
£m
TISBO (up to and
including 8Mbit/s)
£m
Wholesale business
ISDN30 exchange line
services
Wholesale ISDN2
exchange line services
Restated on basis of 2011/12 methodologies
Wholesale analogue
exchange line services
Section 3.2 – Illustrative attribution of Wholesale Current Costs 2013 restated on basis of 2011-12 methodologies
£m
£m
£m
£m
£m
£m
£m
Operating Costs of Wholesale Services:
EOI Charges
Provision/Maintenance
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
119
60
179
(179)
0
163
7
10
38
1
2
8
113
342
12
0
2
11
2
1
28
17
7
52
205
599
Network Support
109
4
6
20
1
1
30
50
221
3
0
1
3
1
0
8
3
1
12
55
288
General Support
163
7
14
39
2
2
72
89
388
12
0
3
8
1
1
25
15
5
45
182
615
General Management
225
10
20
51
3
4
101
102
516
24
0
6
16
4
1
51
32
14
97
288
901
9
0
1
2
0
0
3
5
20
0
0
0
0
0
0
0
1
0
1
12
33
120
11
13
56
3
4
16
79
302
46
2
6
50
4
1
109
39
12
160
137
599
Bad Debts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other Costs
23
2
3
11
1
1
8
12
61
6
0
1
5
1
0
13
7
3
23
750
834
Finance and Billing
Accommodation
Depreciation - Land & Buildings
12
2
2
10
1
1
3
24
55
6
0
1
7
1
0
15
9
3
27
25
107
415
14
13
35
2
2
75
144
700
2
0
1
2
2
1
8
21
6
35
74
809
- Switch and Transmission
28
3
16
60
8
12
59
8
194
16
1
4
18
9
1
49
59
27
135
223
552
- Other related
67
3
7
24
2
2
86
62
253
9
0
2
8
2
1
22
33
14
69
265
587
522
22
38
129
13
17
223
238
1,202
33
1
8
35
14
3
94
122
50
266
587
2,055
1,334
63
105
346
24
31
461
688
3,052
136
3
27
128
27
7
328
355
152
835
2,037
5,924
Holding Loss/(Gain)
(187)
(6)
(3)
(15)
(1)
(2)
(23)
(64)
(301)
(4)
0
(2)
(5)
(5)
0
(16)
(8)
(1)
(25)
(23)
(349)
Supplementary Depreciation
200
6
(1)
(3)
(1)
(1)
(5)
69
264
1
0
0
1
2
0
4
(11)
(6)
(13)
(28)
223
Other Adjustments
8
1
3
5
1
0
11
0
29
5
0
0
5
1
0
11
6
3
20
1
50
Roundings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
64
104
333
23
28
444
693
3
25
129
25
7
327
342
148
817
- Access
Sub Total Depreciation
Sub Total HCA Operating Costs
CCA Adjustments:
Total CCA Operating Costs
1,355
3,044
Page 10
138
1,987
5,848
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
(1)
0
0
(2)
15
0
(1)
(3)
0
0
36
0
(2)
(4)
0
(1)
Finance and Billing
1
0
0
0
0
Accommodation
6
(1)
(1)
(6)
Bad Debts
0
0
0
Other Costs
(1)
0
Depreciation - Land & Buildings
4
Total Markets
(1)
Wholesale Residual
0
Total Other Wholesale &
SMP Markets
3
(1)
1
0
0
(8)
8
0
0
0
(1)
(1)
1
(1)
(4)
10
1
1
(5)
(2)
27
0
0
0
0
(1)
0
0
(13)
8
2
(3)
(7)
0
0
0
0
0
0
0
0
0
0
0
0
(1)
1
0
0
4
3
0
0
0
0
0
0
0
0
3
6
0
0
0
0
0
0
0
0
4
(1)
£m
£m
£m
£m
£m
£m
£m
£m
£m
0
0
0
0
0
0
0
0
0
0
(1)
7
16
0
0
0
0
0
0
0
0
0
1
(1)
0
0
0
0
0
0
0
0
(5)
9
15
0
0
(1)
(1)
1
0
(1)
(8)
13
34
(3)
1
(1)
(4)
0
0
(7)
0
0
0
1
0
0
0
0
0
0
0
0
0
12
10
(5)
(1)
0
(7)
0
0
0
0
0
0
0
0
0
0
0
0
(1)
0
0
0
1
(1)
(1)
0
0
0
0
0
0
0
1
(2)
3
0
0
(1)
(1)
(1)
0
0
0
(1)
(1)
(5)
0
0
Wholesale ISDN2
exchange line services
£m
Wholesale analogue
exchange line services
Wholesale broadband
access - Market 2
0
0
Wholesale broadband
access - Market 1
0
1
Sub-total Other
Wholesale & SMP
National Markets
0
(2)
Technical areas (Point
of Handover)
0
0
£m
Wholesale trunk
segments
0
£m
£m
£m
£m
EOI Charges
Provision/Maintenance
0
0
6
1
Network Support
2
General Support
General Management
Effect of changes on results
£m
Fixed call termination
£m
Technical areas
(Interconnect Circuits)
AISBO (up to and
including 1Gbit/s)
£m
Single transit on fixed
public narrowband
networks
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
£m
Call origination on fixed
public narrowband
networks
TISBO (above 8Mbit/s up
to and including
45Mbit/s)
£m
Total Access Markets
TISBO (up to and
including 8Mbit/s)
£m
Wholesale local access
Wholesale business
ISDN30 exchange line
services
Section 3.3 – Illustrative attribution of Wholesale Current Costs 2013 impact of changes on results
Operating Costs of Wholesale Services:
- Access
- Switch and Transmission
- Other related
Sub Total Depreciation
Sub Total HCA Operating Costs
0
0
1
(5)
(3)
(3)
0
0
(10)
0
0
0
0
0
0
0
5
2
7
3
0
40
1
(1)
(6)
(1)
(1)
(32)
28
28
1
0
(1)
1
(1)
0
0
(6)
(3)
(9)
(5)
14
43
0
(1)
(11)
(4)
(4)
(32)
25
16
1
0
(1)
1
(1)
0
0
(1)
(1)
(2)
5
19
108
0
(6)
(28)
(3)
(5)
(44)
68
90
(8)
0
(3)
(11)
0
0
(22)
8
2
(12)
(12)
66
(16)
0
0
1
0
0
0
(5)
(20)
0
0
1
1
0
0
2
4
0
6
1
(13)
3
0
0
1
0
0
0
2
6
1
0
0
1
0
0
2
1
0
3
2
11
(27)
(1)
(1)
(3)
(1)
0
0
(15)
(48)
(4)
0
0
(4)
(1)
0
(9)
(8)
(3)
(20)
(12)
(80)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
68
(1)
(7)
(29)
(4)
(5)
(44)
50
28
(11)
0
(2)
(13)
(1)
0
(27)
5
(1)
(23)
(21)
(16)
CCA Adjustments:
Holding Loss/(Gain)
Supplementary Depreciation
Other Adjustments
Roundings
Total CCA Operating Costs
Page 11
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
%
%
%
%
%
EOI Charges
Provision/Maintenance
3.7%
14.3%
0.0%
-5.3%
100.0%
0.0%
37.5%
6.2%
4.7%
Network Support
1.8%
0.0%
-16.7%
-5.0%
0.0%
0.0%
-6.7%
2.0%
-0.5%
Total Markets
0.0%
%
Wholesale Residual
0.0%
%
Total Other Wholesale &
SMP Markets
Technical areas (Point of
Handover)
0.0%
%
Wholesale broadband
access - Market 2
Wholesale trunk
segments
0.0%
%
Wholesale broadband
access - Market 1
Fixed call termination
0.0%
%
Effect of changes on results as a
percentage
Sub-total Other
Wholesale & SMP
National Markets
Technical areas
(Interconnect Circuits)
0.0%
Call origination on fixed
public narrowband
networks
0.0%
Total Access Markets
0.0%
Wholesale local access
0.0%
AISBO (up to and
including 1Gbit/s)
0.0%
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
%
TISBO (above 8Mbit/s up
to and including
45Mbit/s)
%
TISBO (up to and
including 8Mbit/s)
%
Wholesale business
ISDN30 exchange line
services
%
Wholesale ISDN2
exchange line services
%
Wholesale analogue
exchange line services
Single transit on fixed
public narrowband
networks
Section 3.4 – Illustrative attribution of Wholesale Current Costs 2013 impact of changes on results as a percentage
%
%
%
%
%
%
0.0%
-1.7%
-0.6%
-0.6%
0.0%
0.0%
0.0%
-3.9%
1.3%
0.0%
0.0%
0.0%
0.0%
0.0%
-0.3%
Operating Costs of Wholesale Services:
General Support
9.2%
0.0%
-7.1%
-7.7%
0.0%
0.0%
-6.9%
10.1%
3.9%
0.0%
-33.3%
-12.5%
100.0%
0.0%
-4.0%
-6.7%
20.0%
-2.2%
-2.2%
1.6%
General Management
16.0%
0.0%
-10.0%
-7.8%
0.0%
-25.0%
-7.9%
12.7%
6.6%
-12.5%
-16.7%
-25.0%
0.0%
0.0%
-13.7%
3.1%
7.1%
-5.2%
-0.7%
3.0%
Finance and Billing
11.1%
0.0%
0.0%
0.0%
0.0%
5.0%
0.0%
-8.3%
0.0%
0.0%
15.2%
3.3%
-10.9%
-5.1%
0.0%
0.4%
Accommodation
5.0%
-9.1%
-7.7%
-10.7%
0.0%
0.0%
Other Costs
-4.3%
0.0%
0.0%
-9.1%
0.0%
0.0%
0.0%
8.3%
-1.6%
Depreciation - Land & Buildings
33.3%
0.0%
0.0%
0.0%
0.0%
0.0%
33.3%
-8.3%
5.5%
-0.2%
-7.1%
-7.7%
0.0%
0.0%
0.0%
-1.3%
-0.7%
-0.7%
0.0%
-50.0%
0.0%
-14.0%
0.0%
-16.7%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-11.9%
20.5%
16.7%
-1.9%
0.0%
-7.7%
14.3%
0.0%
0.0%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0%
12.0%
5.6%
0.0%
0.0%
0.0%
0.0%
0.0%
5.4%
-0.1%
Bad Debts
- Access
- Switch and Transmission
0.0%
0.0%
6.3%
-8.3%
-37.5%
-25.0%
0.0%
0.0%
-5.2%
0.0%
59.7%
33.3%
-14.3%
-25.0%
-50.0%
-50.0%
-37.2%
45.2%
11.1%
11.1%
Sub Total Depreciation
8.2%
0.0%
-2.6%
-8.5%
-30.8%
-23.5%
-14.3%
10.5%
1.3%
3.0%
Sub Total HCA Operating Costs
8.1%
0.0%
-5.7%
-8.1%
-12.5%
-16.1%
-9.5%
9.9%
2.9%
-5.9%
Holding Loss/(Gain)
8.6%
0.0%
0.0%
-6.7%
0.0%
0.0%
0.0%
7.8%
6.6%
0.0%
Supplementary Depreciation
1.5%
0.0%
0.0%
-33.3%
0.0%
0.0%
0.0%
2.9%
2.3%
100.0%
-337.5%
-100.0%
-33.3%
-60.0%
-100.0%
-165.5%
-80.0%
5.0%
-1.6%
-6.7%
-8.7%
-17.4%
0.9%
-8.0%
- Other related
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
8.5%
7.4%
5.2%
1.3%
0.0%
-50.0%
12.5%
-50.0%
0.0%
0.0%
-18.2%
-21.4%
-13.0%
-1.9%
2.4%
0.0%
-12.5%
2.9%
-7.1%
0.0%
0.0%
-0.8%
-2.0%
-0.8%
0.9%
0.9%
0.0%
-11.1%
-8.6%
0.0%
0.0%
-6.7%
2.3%
1.3%
-1.4%
-0.6%
1.1%
-20.0%
0.0%
-12.5%
-50.0%
0.0%
-24.0%
-4.3%
3.7%
100.0%
0.0%
50.0%
-9.1%
0.0%
-23.1%
-7.1%
4.9%
-80.0%
-100.0%
-81.8%
-133.3%
-100.0%
-1200.0%
-160.0%
-10.1%
-4.0%
-8.3%
1.5%
-2.8%
-1.1%
-0.3%
CCA Adjustments:
Other Adjustments
0.0%
-50.0%
Roundings
Total CCA Operating Costs
-17.9%
-9.9%
7.2%
Page 12
0.0%
-8.0%
0.0%
-0.7%
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Non-current Assets
Land & Buildings
Fixed call termination
Wholesale trunk
segments
Technical areas (Point of
Handover)
Sub-total Other
Wholesale & SMP
National Markets
Wholesale broadband
access - Market 1
Wholesale broadband
access - Market 2
Total Other Wholesale &
SMP Markets
Wholesale Residual
Total Markets
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
129
16
18
6
9
21
231
525
66
1
10
71
10
1
159
105
30
294
277
1,096
3,187
100
11
15
0
0
0
1,124
4,437
0
0
0
0
0
0
0
40
11
51
195
4,683
Access - Fibre
0
0
71
164
12
7
459
0
713
0
0
2
0
0
8
10
0
0
10
374
1,097
Access - Duct
2,679
87
51
271
19
31
448
904
4,490
79
0
19
85
92
3
278
97
24
399
317
5,206
94
14
8
0
0
0
0
16
132
48
2
5
51
0
0
106
0
0
106
78
316
Transmission
139
6
40
169
14
23
271
47
709
51
5
11
55
41
3
166
182
83
431
666
1,806
Other
344
15
22
76
5
6
156
284
908
34
1
5
32
6
1
79
92
33
204
651
1,763
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,572
238
221
790
56
76
1,355
2,606
11,914
278
9
52
294
149
16
798
516
181
1,495
2,558
15,967
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
1
19
20
Access - Copper
Switch
Investments
Total Non-current Assets
95
Technical areas
(Interconnect Circuits)
£m
Single transit on fixed
public narrowband
networks
£m
Call origination on fixed
public narrowband
networks
£m
Total Access Markets
£m
Wholesale local access
AISBO (up to and
including 1Gbit/s)
£m
TISBO (above 45Mbit/s up
to and including
155Mbit/s)
£m
TISBO (above 8Mbit/s up
to and including 45Mbit/s)
Wholesale business
ISDN30 exchange line
services
£m
TISBO (up to and
including 8Mbit/s)
Wholesale ISDN2
exchange line services
As reported for the year ended 31 March
2013
Wholesale analogue
exchange line services
Section 3.5 – Attribution of Wholesale Current Cost Mean Capital Employed 2013 as reported
Current Assets
Inventories
Receivables
- Internal
117
8
17
27
2
3
48
49
271
10
0
3
9
5
0
27
24
12
63
- External
436
26
79
118
10
18
203
146
1,036
40
2
10
34
25
3
114
113
62
289
1,246
2,571
Total Current Assets
553
34
96
145
12
21
251
195
1,307
50
2
13
43
30
3
141
138
74
353
1,213
2,873
(52)
282
Payables falling due within one year
- Internal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(7)
(4)
(11)
11
0
- External
(615)
(34)
(92)
(149)
(12)
(19)
(279)
(245)
(1,445)
(51)
(2)
(13)
(44)
(25)
(4)
(139)
(130)
(66)
(335)
(1,166)
(2,946)
Total payables falling due within one year
(615)
(34)
(92)
(149)
(12)
(19)
(279)
(245)
(1,445)
(51)
(2)
(13)
(44)
(25)
(4)
(139)
(137)
(70)
(346)
(1,155)
(2,946)
(62)
0
4
(4)
0
2
(28)
(50)
(138)
(1)
0
0
(1)
5
(1)
2
1
4
7
58
(73)
238
225
786
56
78
277
9
52
293
154
15
800
517
185
1,502
2,616
(3)
(4)
(7)
0
0
(5)
0
(1)
(4)
0
0
(10)
(10)
(4)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
235
221
779
56
78
9
51
289
154
15
790
507
181
Net Current Assets/(Payables)
Total Assets less Current Payables
Provisions for liabilities & charges
6,510
(69)
Roundings
Mean Capital Employed
6,441
1,327
2,556
11,776
(17)
(36)
(136)
-
-
-
1,310
2,520
11,640
272
Non-current assets are net of government grants of £7.5m.
Page 13
15,894
(24)
(179)
(339)
-
-
-
1,478
2,437
15,555
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Non-current Assets
Land & Buildings
Fixed call termination
Wholesale trunk
segments
Technical areas (Point
of Handover)
Sub-total Other
Wholesale & SMP
National Markets
Wholesale broadband
access - Market 1
Wholesale broadband
access - Market 2
Total Other Wholesale &
SMP Markets
Wholesale Residual
Total Markets
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
125
16
18
6
10
22
281
573
65
1
10
70
9
1
156
93
27
276
230
1,079
3,182
99
11
15
0
0
0
1,118
4,425
0
0
0
0
0
0
0
38
12
50
182
4,657
Access - Fibre
0
0
73
167
13
7
467
0
727
0
0
2
0
0
8
10
0
0
10
361
1,098
Access - Duct
2,706
87
52
273
19
31
452
909
4,529
79
0
19
86
93
3
280
98
24
402
274
5,205
94
14
8
0
0
0
0
16
132
48
2
5
52
0
0
107
0
0
107
78
317
Transmission
139
6
39
184
21
32
271
47
739
51
5
10
55
41
2
164
171
77
412
655
1,806
Other
267
14
22
81
5
7
248
247
891
32
0
5
31
6
1
75
86
33
194
646
1,731
Access - Copper
Switch
Investments
Total Non-current Assets
95
Technical areas
(Interconnect Circuits)
£m
Single transit on fixed
public narrowband
networks
£m
Call origination on fixed
public narrowband
networks
£m
Total Access Markets
£m
Wholesale local access
AISBO (up to and
including 1Gbit/s)
£m
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
£m
TISBO (above 8Mbit/s up
to and including
45Mbit/s)
Wholesale business
ISDN30 exchange line
services
£m
TISBO (up to and
including 8Mbit/s)
Wholesale ISDN2
exchange line services
Restated on basis of 2011/12 methodologies
Wholesale analogue
exchange line services
Section 3.6 – Illustrative attribution of Wholesale Current Cost Mean Capital Employed 2013 restated on basis of 2011-12 methodologies
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,513
236
223
815
64
87
1,460
2,618
12,016
275
8
51
294
149
15
792
486
173
1,451
2,426
15,893
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
1
19
20
Current Assets
Inventories
Receivables
- Internal
117
8
17
27
2
3
48
49
271
10
0
3
9
5
0
27
25
13
65
- External
436
26
79
118
10
18
203
145
1,035
40
2
10
34
25
3
114
114
62
290
1,244
2,569
553
34
96
145
12
21
251
194
1,306
50
2
13
43
30
3
141
140
75
356
1,210
2,872
Total Current Assets
(53)
283
Payables falling due within one year
- Internal
- External
Total payables falling due within one year
Net Current Assets/(Payables)
Total Assets less Current Payables
Provisions for liabilities & charges
Roundings
Mean Capital Employed
0
0
0
0
0
0
0
0
0
0
(7)
(4)
(11)
(594)
0
(33)
(94)
(155)
(12)
(20)
(288)
(236)
(1,432)
(52)
(2)
(13)
(46)
(25)
(4)
(142)
(129)
(65)
(336)
(1,176)
(2,944)
(594)
(33)
(94)
(155)
(12)
(20)
(288)
(236)
(1,432)
(52)
(2)
(13)
(46)
(25)
(4)
(142)
(136)
(69)
(347)
(1,165)
(2,944)
(41)
1
2
(10)
0
1
(37)
(42)
(126)
(2)
0
0
(3)
5
(1)
(1)
237
225
805
64
88
273
8
51
291
(22)
(1)
(1)
(16)
0
(2)
(17)
6,472
(97)
6,375
(6)
(8)
0
-
-
-
-
-
231
217
783
63
87
0
1,423
(21)
1,402
0
2,576
(53)
2,523
0
11,890
(209)
11,681
Page 14
257
8
154
(1)
0
11
4
6
9
45
179
1,460
2,471
14
791
490
0
(36)
(15)
(5)
-
-
-
-
-
-
-
49
274
153
14
755
475
174
(56)
1,404
(196)
2,275
0
(72)
15,821
(461)
15,360
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
AISBO (up to and
including 1Gbit/s)
Wholesale local access
Total Access Markets
Call origination on
fixed public
narrowband networks
Single transit on fixed
public narrowband
networks
Technical areas
(Interconnect Circuits)
Fixed call termination
Wholesale trunk
segments
Technical areas (Point
of Handover)
Sub-total Other
Wholesale & SMP
National Markets
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
4
0
0
0
0
(1)
(1)
(50)
(48)
1
0
0
1
1
0
3
Access - Copper
5
1
0
0
0
0
0
6
12
0
0
0
0
0
0
0
Access - Fibre
0
0
(2)
(3)
(1)
0
(8)
0
(14)
0
0
0
0
0
0
Access - Duct
(27)
0
(1)
(2)
0
0
(4)
(5)
(39)
0
0
0
(1)
(1)
0
0
0
0
0
0
0
0
0
0
0
0
(1)
Switch
Transmission
Total Markets
TISBO (above 8Mbit/s
up to and including
45Mbit/s)
£m
Wholesale Residual
TISBO (up to and
including 8Mbit/s)
£m
Total Other Wholesale
& SMP Markets
Wholesale business
ISDN30 exchange line
services
£m
Wholesale broadband
access - Market 2
Wholesale ISDN2
exchange line services
£m
Non-current Assets
Land & Buildings
Effect of changes on results
Wholesale broadband
access - Market 1
Wholesale analogue
exchange line services
Section 3.7 – Illustrative attribution of Wholesale Current Cost Mean Capital Employed 2013 impact of changes on results
£m
£m
£m
£m
£m
12
3
18
47
17
2
(1)
1
13
26
0
0
0
0
13
(1)
0
(2)
(1)
0
(3)
43
1
0
0
(1)
0
0
(1)
0
(1)
0
0
1
(15)
(7)
(9)
0
0
(30)
0
0
1
0
0
1
2
11
6
19
11
0
77
1
0
(5)
0
(1)
(92)
37
17
2
1
0
1
0
0
4
6
0
10
5
32
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
59
2
(2)
(25)
(8)
(11)
(105)
(12)
(102)
3
1
1
0
0
1
6
30
8
44
132
74
Inventories
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Receivables
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
- Internal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(1)
(1)
(2)
1
(1)
- External
0
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
(1)
0
(1)
2
2
Total Current Assets
0
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
(2)
(1)
(3)
3
1
Other
Investments
Total Non-current Assets
Current Assets
Payables falling due within one year
- Internal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
- External
(21)
(1)
2
6
0
1
9
(9)
(13)
1
0
0
2
0
0
3
(1)
(1)
1
10
(2)
Total payables falling due within one year
(21)
(1)
2
6
0
1
9
(9)
(13)
1
0
0
2
0
0
3
(1)
(1)
1
10
(2)
Net Current Assets/(Payables)
(21)
(1)
2
6
0
1
9
(8)
(12)
1
0
0
2
0
0
3
(3)
(2)
(2)
13
(1)
Total Assets less Current Payables
38
1
0
(19)
(8)
(10)
(96)
(20)
(114)
4
1
1
2
0
1
9
27
6
42
145
73
Provisions for liabilities & charges
28
3
4
15
1
1
4
17
73
11
0
1
13
1
0
26
5
1
32
17
122
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
66
4
4
(4)
(7)
(9)
(92)
(3)
(41)
15
1
2
15
1
1
35
32
7
74
162
195
Roundings
Mean Capital Employed
Page 15
Section 3 – Illustrative Attribution of 2012-13 Wholesale Current Costs and Mean Capital Employed Applying
2011-12 Methodologies
Wholesale analogue
exchange line services
Wholesale ISDN2
exchange line services
Wholesale business
ISDN30 exchange line
services
TISBO (up to and
including 8Mbit/s)
TISBO (above 8Mbit/s up
to and including
45Mbit/s)
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
AISBO (up to and
including 1Gbit/s)
Wholesale local access
Total Access Markets
Call origination on fixed
public narrowband
networks
Single transit on fixed
public narrowband
networks
Technical areas
(Interconnect Circuits)
Fixed call termination
Wholesale trunk
segments
Technical areas (Point of
Handover)
Sub-total Other
Wholesale & SMP
National Markets
Wholesale broadband
access - Market 1
Wholesale broadband
access - Market 2
Total Other Wholesale &
SMP Markets
Wholesale Residual
Total Markets
Section 3.8 – Illustrative attribution of Wholesale Current Cost Mean Capital Employed 2013 impact of changes on results in percentage terms
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Non-current Assets
Land & Buildings
3.2%
0.0%
0.0%
0.0%
0.0%
-10.0%
-4.5%
-17.8%
-8.4%
1.5%
0.0%
0.0%
1.4%
11.1%
0.0%
1.9%
12.9%
11.1%
6.5%
20.4%
1.6%
Access - Copper
0.2%
1.0%
0.0%
0.0%
0.5%
0.3%
5.3%
-8.3%
2.0%
7.1%
0.6%
-2.7%
-1.8%
-7.7%
0.0%
-1.7%
0.0%
3.6%
-0.1%
-0.7%
0.0%
0.0%
-0.9%
-0.7%
15.7%
0.0%
-0.9%
0.0%
-0.3%
Effect of changes on results as a
percentage
Access - Fibre
Access - Duct
-1.0%
0.0%
-1.9%
Switch
0.0%
0.0%
0.0%
Transmission
Other
-1.9%
0.0%
0.0%
0.0%
-0.7%
-0.6%
-0.9%
0.0%
0.0%
-1.2%
0.0%
0.0%
0.0%
0.0%
0.0%
-1.9%
0.0%
10.0%
0.0%
0.0%
50.0%
1.2%
6.4%
7.8%
4.6%
1.7%
0.0%
0.0%
3.2%
0.0%
0.0%
5.3%
7.0%
0.0%
5.2%
0.8%
1.8%
2.0%
0.0%
0.0%
6.7%
0.8%
6.2%
4.6%
3.0%
5.4%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0%
2.6%
-8.2%
-33.3%
-28.1%
0.0%
0.0%
-4.1%
0.0%
28.8%
7.1%
0.0%
-6.2%
0.0%
-14.3%
-37.1%
15.0%
1.9%
6.3%
0.9%
0.8%
-0.9%
-3.1%
-12.5%
-12.6%
-7.2%
-0.5%
-0.8%
1.1%
-1.1%
0.0%
-1.0%
0.0%
-0.9%
Investments
Total Non-current Assets
12.5%
Current Assets
Inventories
0.0%
Receivables
- Internal
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-4.0%
-7.7%
-3.1%
-1.9%
-0.4%
- External
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.7%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-0.9%
0.0%
-0.3%
0.2%
0.1%
Total Current Assets
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.5%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-1.4%
-1.3%
-0.8%
0.2%
0.0%
0.0%
0.0%
0.0%
0.0%
- External
3.5%
3.0%
-2.1%
-3.9%
0.0%
-5.0%
-3.1%
3.8%
0.9%
-1.9%
0.0%
0.0%
-4.3%
0.0%
0.0%
-2.1%
0.8%
1.5%
-0.3%
-0.9%
0.1%
Total payables falling due within one year
3.5%
3.0%
-2.1%
-3.9%
0.0%
-5.0%
-3.1%
3.8%
0.9%
-1.9%
0.0%
0.0%
-4.3%
0.0%
0.0%
-2.1%
0.7%
1.4%
-0.3%
-0.9%
0.1%
51.2%
-100.0%
100.0%
-60.0%
100.0%
-24.3%
19.0%
9.5%
-50.0%
-66.7%
0.0%
0.0%
-300.0%
-75.0%
-33.3%
-22.2%
28.9%
1.4%
0.6%
0.4%
0.0%
-2.4%
-12.5%
-11.4%
-6.7%
-0.8%
-1.0%
1.5%
2.0%
0.7%
0.0%
7.1%
1.1%
5.5%
3.4%
2.9%
5.9%
0.5%
-28.9%
-50.0%
-50.0%
-68.2%
-100.0%
-100.0%
-19.0%
-32.1%
-34.9%
-68.8%
-50.0%
-76.5%
-100.0%
-72.2%
-33.3%
-20.0%
-57.1%
-8.7%
-26.5%
1.0%
1.7%
1.8%
-0.5%
-11.1%
-10.3%
-6.6%
-0.1%
-0.4%
5.8%
4.1%
5.5%
0.7%
4.6%
6.7%
4.0%
5.3%
7.1%
1.3%
Payables falling due within one year
- Internal
Net Current Assets/(Payables)
Total Assets less Current Payables
Provisions for liabilities & charges
12.5%
Roundings
Mean Capital Employed
Page 16
12.5%
7.1%
Section 4 – Illustrative difference of methodology changes on costs allocated to each market
Section 4
Illustrative difference of methodology changes on costs allocated to each market
Page 17
Section 4 – Illustrative difference of methodology changes on costs allocated to each market
Wholesale analogue
exchange line services
Wholesale ISDN2
exchange line services
Wholesale business
ISDN30 exchange line
services
TISBO (up to and
including 8Mbit/s)
TISBO (above 8Mbit/s up
to and including
45Mbit/s)
TISBO (above 45Mbit/s
up to and including
155Mbit/s)
AISBO (up to and
including 1Gbit/s)
Wholesale local access
Total Access Markets
Call origination on fixed
public narrowband
networks
Single transit on fixed
public narrowband
networks
Technical areas
(Interconnect Circuits)
Fixed call termination
Wholesale trunk
segments
Technical areas (Point of
Handover)
Sub-total Other
Wholesale & SMP
National Markets
Wholesale broadband
access - Market 1
Wholesale broadband
access - Market 2
Total Other Wholesale &
SMP Markets
Wholesale Residual
Total Wholesale Markets
Retail Residual
Roundings
Total Markets
Section 4.1 – Illustrative difference of methodology changes on costs allocated to each market
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
0
0
0
(1)
(6)
24
(3)
18
0
7
3
12
13
9
16
10
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(1)
2
0
0
0
0
0
0
(1)
(1)
0
0
(1)
(1)
(1)
(1)
0
(1)
1
0
0
(8)
0
0
0
(2)
(3)
0
1
(5)
(3)
(2)
(4)
0
(1)
0
0
0
(2)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(4)
0
0
0
0
0
0
0
0
0
0
0
0
0
(1)
0
0
0
0
0
(39)
0
(5)
0
2
(2)
3
(2)
(1)
2
1
(1)
0
0
0
0
8
8
(1)
3
2
3
0
14
3
16
6
10
1
0
0
(14)
(1)
2
(7)
(7)
12
2
13
(5)
25
11
19
24
18
3
0
0
0
0
0
0
(2)
(1)
0
0
0
(5)
1
1
(1)
(3)
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(1)
0
0
0
(1)
0
0
0
0
0
0
0
(3)
(1)
0
0
0
(5)
1
2
(1)
(3)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(1)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(5)
(2)
0
0
0
(11)
2
3
(2)
(7)
1
8
(4)
6
0
0
0
8
0
0
0
0
(4)
0
(8)
(1)
1
2
1
(6)
1
0
0
0
2
0
0
0
0
(1)
0
(3)
(1)
1
1
9
(10)
7
0
0
0
5
(2)
0
0
0
(16)
2
(8)
(4)
(5)
4
(8)
9
7
0
(2)
5
2
(10)
(2)
3
4
(5)
(4)
(9)
(1)
4
2
1
(1)
0
(1)
0
(2)
0
0
0
16
(1)
4
9
2
19
17
9
0
(16)
0
0
0
0
0
0
0
(16)
1
(5)
(8)
(2)
(20)
(18)
(4)
(1)
1
0
1
0
2
0
0
0
0
0
1
(1)
0
1
1
(5)
0
(16)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
103
1
(6)
(27)
(2)
(5)
(42)
73
95
(8)
0
(2)
(10)
(1)
0
(21)
8
(5)
(18)
(5)
72
(88)
0
(16)
Aggregate effect of non-material allocation
methodology changes
4
0
0
2
(2)
0
(2)
(5)
(3)
0
0
0
0
0
0
0
2
5
7
(7)
(3)
18
0
15
Total effect of allocation methodology
changes
107
1
(6)
(25)
(4)
(5)
(44)
68
92
(8)
0
(2)
(10)
(1)
0
(21)
10
0
(11)
(12)
69
(70)
0
(1)
(35)
(1)
0
0
0
0
0
(12)
(48)
0
0
0
0
0
0
0
0
0
0
0
(48)
0
0
(48)
(4)
(1)
(1)
(4)
0
0
0
(6)
(16)
(3)
0
0
(3)
0
0
(6)
(5)
(1)
(12)
(9)
(37)
0
0
(37)
68
(1)
(7)
(29)
(4)
(5)
(44)
50
28
(11)
0
(2)
(13)
(1)
0
(27)
5
(1)
(23)
(21)
(16)
(70)
0
(86)
Ref. Changes in allocation methodologies
1 DSLAMs
2 WBA bandwidth volumes
3 21CN & Core Directors
4 DACS
5 Fault Rates (Dropwire & MDF)
6 Openreach computing and development
7 Specialised accommodation space
8 Specific group provision
9 SLGs
10 Career Transition Centre
11 SFIs, TRCs, Broadband Boost
12 Vacant space in exchanges
13 Openreach Overheads
14 BT TSO - Development
15 BT TSO - Computing
16 BT TSO - Operating costs
Roundings
Effect of significant allocation methodology
changes
Changes in valuation methodologies
17 CCA valuation of dropwire
18 CCA valuation of exchange power equipment
and specialised accommodation plant
Total effect of changes in allocation and
valuation methodologies
Page 18
Section 5 – Explanation of reported methodology changes
Section 5
Explanation of reported methodology changes
Page 19
Section 5 – Explanation of reported methodology changes
Section 5.1 – Allocation of Digital Subscriber Line Access Multiplexers (DSLAM) overhead and asset costs between WBA Markets 1, 2 and 3
change
Reference
number
(Section 4.1)
1
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from:
1) cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5)
Transparency; or 6) Sampling)
More costs are allocated to WBA Markets 1 and 2 as these markets
continue to service relatively large numbers of IPstream and Datastream
customers, for which DSLAMs are required, whilst the majority of
customers in Market 3 have transitioned to Wholesale Broadband Connect
(WBC) which use Multi-Service Access Nodes (MSANs) instead of DSLAMs.
The change impacted the DSLAM Overheads and DSLAM Depreciation
components (CR188 and CR189 respectively) and the Datastream and
IPstream services.
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Support for
the change
Other – improvement identified by BT.
Description
of change
DSLAMs are sited at the local exchange or concentrator sites, and contain
the subscriber cards and concentration to provide broadband services
(IPstream and Datastream) over the copper access network. The costs
associated with these DSLAMs include both fixed and variable elements
i.e. some of the costs are driven by the number of end users a DSLAM
supports and others are fixed and incurred in relation to the number of
DSLAMs themselves.


DSLAM overhead costs: allocated evenly across all DSLAMs in
the network and then further split into Datastream and IPstream
services based on volumes of end-users for each DSLAM.
DSLAM asset costs (i.e. depreciation): allocated to all DSLAMs
except those which are fully depreciated and then further split
into Datastream and IPstream based on volumes of end-users.
Key changes
in
accounting
documents
Under the new methodology, the fixed and variable elements of DSLAM
costs are reflected in the allocations: fixed DSLAM costs are allocated
across all DSLAMs while variable costs are allocated directly to Datastream
and IPstream according to volumes of end-users per DSLAM.
Effect of the
Of the total DSLAM overhead costs 68% of the costs are fixed in
nature and relate to the number of DSLAMs, and the remaining
32% of costs are variable in relation to the number of end users.
For DSLAM asset costs, line cards are directly variable with the
number of end users and account for 14% of the total DSLAM
asset cost and the remaining 86% of costs are fixed.
There has been a transition in WBA Market 3 to WBC which uses MSANs
instead of DSLAMs. The new methodology is more cost causal as it better
reflects which WBA Markets use the DSLAM equipment.
Under the old methodology, DSLAM costs were allocated as follows:

A detailed justification for the change and the evidence taken into account
to support the change
A detailed analysis of overhead costs by sector was undertaken and
resulted in the following split of DSLAM overhead and asset costs into
their fixed and variable elements:
A short explanation of the new methodology and how it differs from the
old methodology

most affected and the general impact of the change and the markets and
services that are most affected by the changes
A description of the impact of the change in terms of the components
Page 20
Set out key changes to accounting documents
Updated descriptions in section 7 of the DAM for DSLAM Overheads and
Depreciation components (CR188 and CR189 respectively).
Section 5 – Explanation of reported methodology changes
Section 5.2 – WBA bandwidth volumes
Reference
number
(Section 4.1)
2
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
the change
This change reflects a better data source being available. The new
information was reviewed over a number of months and assessed to be a
more appropriate proxy for allocating the consumed bandwidth than the
previous approach. The new approach better reflects the characteristics of
each WBA market than only using end users.
Key changes
in accounting
documents
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Changes in available evidence.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
Our previous data source of bandwidth volumes did not split the
bandwidth between WBA Markets 1, 2 and 3. Therefore, under the old
methodology the number of end users by WBA market (for each service)
was used as a proxy to split the bandwidth volumes.
In 2012/13 improved data has become available from the Wholesale
Customer Reporting (WCR) system which shows the peak bandwidth
recorded for each service in each WBA market. Peak bandwidth shows the
highest bandwidth consumption for a given service during a measured
period and was considered a better proxy for allocating the consumed
bandwidth under the new methodology.
Effect of the
change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
Lower costs are allocated to WBA Markets 1 and 2. Within WBA Markets 1
and 2 the main services affected are IPstream and Wholesale Broadband
Connect and the components affected relate to 21CN components CN860,
CN884, CN903, and CN878.
Support for
to support the change
A detailed justification for the change and the evidence taken into account
Page 21
Set out key changes to accounting document
Section 7.3.3 of the DAM has been amended to reflect the updated
methodology. Descriptions for components CN860, CN884, CN903, and
CN878 have also been updated.
Section 5 – Explanation of reported methodology changes
Section 5.3 – Allocation of 21st Century Network (21CN) equipment costs
Reference
number
(Section 4.1)
3
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
the Wholesale Broadband Connect and IPstream bandwidth services in
WBA Markets 1, 2 and 3. The IPstream Connect components have been
impacted by the change.
Support for
the change
The BT 21CN design team have confirmed a change of use in the 21CN,
which means it is no longer cost causal to allocate Core Director equipment
costs to the TISBO markets.
Cost causality.
Trigger for
change
While the Core Directors were purchased in order to support the delivery of
PPC services, they are currently used as part of the Broadband transport
system switching the IPstream and Datastream traffic. When the legacy
TDM platform is closed at the end of 2014, this equipment will be used to
directly switch IPstream and Datastream traffic.
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Changes in available evidence.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
Accordingly, it is cost causal to reflect this change in use by allocating the
Core Director equipment costs to WBA Markets 1, 2 and 3 rather than to
the TISBO markets.
Core Director equipment is used as a traffic switch resilience platform,
which replicates on the modern 21CN the functionality of the legacy Time
Divisional Multiplexing (TDM) platform. The legacy TDM platform has been
used to carry PPC, Kilostream, Megastream, Voice and Broadband traffic
and will be closed at the end of 2014.
Key changes
in accounting
documents
Core Director equipment was initially purchased to support the delivery of
certain TDM services (specifically PPCs) over the 21CN. As a result, the old
methodology allocated the Core Director equipment costs to the TISBO
markets.
Core Directors are no longer intended to support the delivery of TDM
services. However, Broadband services (IPstream and Datastream) do
currently (and will in future) use the Core Directors as part of its underlying
traffic switch resilience platform. Accordingly, the new methodology
allocates the Core Director equipment costs to WBA Markets 1, 2 and 3.
Effect of the
change
A detailed justification for the change and the evidence taken into account
to support the change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The change results in costs being allocated to the WBA Markets rather than
PPC Markets. The services impacted by the change are the PPC services and
Page 22
Set out key changes to accounting documents
The DAM has been updated to reflect the new methodology for Plant
Groups 866A, 886A, 887A, 888A, 893A, 895A, 896A, 898A and
Component CN878.
Section 5 – Explanation of reported methodology changes
Section 5.4 – Effect of Digital Access Carrier System (DACS) on allocation of E-side and D-side copper costs to Wholesale Line Rental (WLR)
Reference
number
(Section 4.1)
4
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
change
The change has a small impact on the Wholesale Analogue Exchange Line
Services Market. The main services affected are MPF Rentals and Wholesale
basic analogue service rentals.
Support for
the change
Cost causality.
Trigger for
change
Description
of change
A detailed justification for the change and the evidence taken into account
to support the change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
The new methodology is more cost causal as it reflects the lower average
usage of E-side and D-side copper by WLR (as compared with LLU and
MPF) by taking into account the effect of DACS technology on WLR lines.
Other – re-instatement of methodology applied in the 2010/11 Regulatory
Financial Statements (RFS) that was incorrectly omitted in the 2011/12
RFS that also aligns with DACS adjustment made by Ofcom in the WLR/LLU
charge control published 7 March 2012.
Not all DACS systems are fully utilised and we currently have 130,000 DACS
lines systems carrying approximately 190,000 WLR lines. Therefore,
60,000 WLR lines are carried over a copper pair that already carries
another WLR line. The total number of WLR lines is 18,300,000.
The usage factor takes this into account by dividing total copper pairs
required by WLR by the total number of WLR lines:
A short explanation of the new methodology and how it differs from the
old methodology
(18,300,000 – 60,000) / 18,300,000 = 0.996
Under the old methodology, E-side and D-side copper costs were allocated
to WLR via a usage factor of 1. This was identical to the usage factor for
Local Loop Unbundling (LLU) Metallic Path Facility (MPF) and for ISDN2
(per line).
The new methodology is also consistent with Ofcom’s charge control
modelling for the current WLR/LLU charge control – for example, see table
in Figure A4.21 in Ofcom’s “Charge control review for LLU and WLR
services Annexes” published 7 March 2012.
The new methodology reflects the fact that some lines have DACS
technology, which allows two WLR lines to be provided over a single
copper pair (known as “Pair Gain”). Therefore, the presence of DACS results
in a lower average usage of E-side and D-side copper per WLR line and an
updated usage factor of less than 1 has been applied to WLR lines to reflect
this. For ISDN2 and LLU MPF lines a usage factor of 1 is still applied as it is
not possible to use DACS equipment on these lines. The methodology was
previously applied in the 2010/11 RFS and has been re-instated to align
with Ofcom’s modelling for the current WLR/LLU charge control.
Key changes
in accounting
documents
The new methodology does not impact SMPF as E-side and D-side copper
costs are not allocated to SMPF.
Effect of the
affected and the general impact of the change and the markets and
services that are most affected by the changes
A description of the impact of the change in terms of the components most
Page 23
Set out key changes to accounting documents
Usage factors are not disclosed in the accounting documents so no changes
have been made.
Section 5 – Explanation of reported methodology changes
Section 5.5 – Change in allocations for Special Fault Investigations (SFIs), Broadband Boost, Frame Repair, Dropwire Repair, Service Level
Guarantees (SLGs) and Time Related Charges (TRCs)
Reference
number
(Section 4.1)
5,9,11
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
jumpers that each product required.
The usage factors in the new methodology reflect the relative actual fault
rates on frame and service levels of each product. This approach is
consistent with the usage factors used for the repair of E-Side and D-Side
copper cables.
Dropwire repair
Dropwire repair relates to the repair of any faults occurring in the copper
cable that connects from the Distribution Point (pole/main cable) to the
Network Terminating Equipment (house/building).
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Under the old methodology dropwire repair costs were allocated to services
on a 1:1 basis. This assumed there is a uniform cost of maintaining
dropwire lines for WLR premium, WLR basic and MPF.
Changes in available evidence.
Description
of change
The usage factors in the new methodology reflect the relative actual fault
rates on copper cables and service levels of each product. This approach is
consistent with the usage factors used for the repair of E-Side and D-Side
copper cables.
A short explanation of the new methodology and how it differs from the
old methodology
SFIs/Broadband Boost
SFIs are a chargeable investigation product that attempts to identify and
resolve problems affecting Digital Subscriber Lines (DSL).
SLGs
The old methodology attributed SLG payments to products on the basis of
service centre assurance attributions. However, SLG payments are based on
the price of the service to which they relate and the incidence of SLG
payments by product.
Under the old methodology, these costs were allocated using Class of Work
(CoW) bookings. Under the new methodology, these costs are allocated
using Openreach Kilo-Man Hours (KMH) data as this provides more
accurate information on engineering time by the type of activity.
The new methodology separates out the internal and external SLG costs
and allocates them to the respective internal and external service based on
price, volume and fault rate. This better reflects the driver of the SLG (fault
rate) and the size of the SLG payment (based upon price).
The same change in allocation methodology has been applied to
Broadband Boost which is a chargeable investigation product that
attempts to identify and resolve problems affecting Broadband speed and
reliability.
TRCs
Frame Repair
TRCs refer to the provision of additional services where the work is not
covered within BT service level agreements.
Frame Repair relates to the repairs carried out on copper main distribution
frames (MDF). Copper frame repair costs are attributed to services that use
MDF based on usage factors.
Under the old methodology, TRC costs were allocated using CoW bookings.
Following a review of the 2012/13 costs, it was found that these bookings
did not fully capture costs for “fault not found” activities or for volume
deals. The new methodology allocates a share of Openreach provisioning
Under the old methodology, the usage factors represented the number of
Page 24
Section 5 – Explanation of reported methodology changes
and general repair costs to TRCs to ensure TRCs are allocated an
appropriate amount of costs for “Fault Not Found” and volume deals.
Effect of the
change
seasonal fluctuations and thus provides more robust information.
The new methodology is consistent with Ofcom’s charge control modelling
for the current WLR/LLU charge control – for example, see Figure A4.33 in
Ofcom’s “Charge control review for LLU and WLR services Annexes”
published 7 March 2012.
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
SLGs
The markets most impacted by the changes are Wholesale Analogue
Exchange Line Services, Wholesale Local Access and TISBO (up to and
including 8Mbit/s). The main services affected are PPC services, MPF
Rentals, Wholesale basic and premium analogue service rentals, MPF new
provides and Residual services.
Support for
the change
New plant groups and components enable the internal and external SLG
costs to be ring-fenced and attributed to the corresponding internal and
external services on the basis of product price, volume and fault rate. This
better reflects the cost causality of SLGs being fault rate and the size of
SLGs being based upon price.
A detailed justification for the change and the evidence taken into account
to support the change
TRCs
Under the previous methodology, some costs relating to TRCs (specifically,
“Fault Not Found” and “Volume Deals”) were not being correctly allocated
to TRCs. The new methodology improves the accuracy of the cost allocation
for these activities.
SFIs/Broadband Boost
KMH data analysis provides more accurate information on engineering
time by activity type, allowing for a more precise and cost causal allocation
of repair costs. KMH data has been used by Ofcom as part of their
modelling for the current and previous WLR/LLU charge control.
Key changes
in accounting
documents
Dropwire Repair/Frame Repair
A detailed analysis was performed of care level differentials that calculated
a cost difference between care levels. Actual fault rate data (captured on a
weekly basis) was analysed over a twelve month period to eliminate
Page 25
Set out key changes to accounting documents
The base methodologies for PDTORSFI, PDTURSFI, PDTUDL, PDTUEL,
PDTSBSBB and DTNPSAA in the DAM have been updated to reflect the new
methodologies. Usage factors are not disclosed in the accounting
documents so no changes have been made for updates to usage factors.
Section 5 – Explanation of reported methodology changes
Section 5.6 – Openreach computing and development costs
extension services rentals.
Reference
number
(Section 4.1)
6
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
These depreciation costs are caused by investments in various computing
and development projects undertaken within Openreach, which have yet
to be fully depreciated.
Cost causality.
Other – improvement identified by BT.
Current year depreciation charges reflect both the current and historic
investments causing these costs, whereas current year capital expenditure
only takes account of the investments made in a given year. The new
methodology takes into account all development projects on the fixed
asset register rather than only current year additions so depreciation is
attributed in a more cost causal manner.
A short explanation of the new methodology and how it differs from the
old methodology
The new methodology is also less open to distortion where significant
capital expenditure is incurred in any given year.
Trigger for
change
Description
of change
Support for
the change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Previously computing and development depreciation costs within
Openreach were allocated using an analysis of current year capital
expenditure.
Key changes
in accounting
documents
To better reflect that depreciation costs relate to current and prior year
development projects the methodology has been changed so computing
and development costs within Openreach are allocated based on the
current year depreciation charge in the fixed asset register.
Effect of the
change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The markets most impacted by the change are Wholesale Analogue
Exchange Line Services, Wholesale Local Access and AISBO (up to and
including 1Gbit/s). The main services impacted by the change are
Wholesale premium and basic analogue service transfers, MPF rentals,
Main link rental charges, Ethernet Access Direct rentals and Wholesale
Page 26
A detailed justification for the change and the evidence taken into account
to support the change
Set out key changes to accounting documents
Updated DAM description for Plant Group 772A.
Section 5 – Explanation of reported methodology changes
Section 5.7 – Allocation of specialised accommodation space
Reference
number
(Section 4.1)
7
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from:
1) cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5)
Transparency; or 6) Sampling)
Support for
the change
The planning rules regarding ventilation space contain a secondary
condition requiring that such space should be allocated on the higher of
the equipment dimensions x 3.85 or 500 watts per square metre. This
secondary condition is stipulated by the power planning team in BT TSO
to take into consideration the specific requirement of any high power
consumption equipment which generates a very high heat footprint.
1
The planning rule is already reflected in the LLU price list, footnote 7 ,
that states:
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in
available evidence 4) other
“The billable area is calculated by whichever is the greater of the
physical footprint of the Product ordered multiplied by 3.85 or the heat
dissipation requirement of the Product ordered. (Heat dissipation
requirement is calculated as follows: the maximum permissible AC power
capacity of the product per sq m is 500w. E.g. A product with a
maximum permissible AC power capacity of 8800w @ 500w per sq m =
8800/500 = 17.6 sq m billable area. The billable area is indicated in the
offer document.”
Changes in available evidence.
Description of
change
A short explanation of the new methodology and how it differs from the
old methodology
Specialised accommodation is the space allocated to equipment in the
telephone exchange. The space required for each piece of equipment is
based on: (i) the dimension of the equipment; (ii) walk around space;
and (iii) additional space required by planning rules to enable sufficient
ventilation for equipment based on its power consumption.
The updated methodology reflects this rule and aligns the cost
allocation with the way in which CPs are already charged for
accommodation costs.
Under the old methodology, the cost of the space required for
ventilation was prorated on the space required for the equipment
dimensions plus additional walk around space.
Key changes
in accounting
documents
However, the old methodology did not take into account an additional
consideration for ventilation planning relating to equipment power
consumption. Under the new methodology this is now taken into
account. Communication Providers (CPs) are charged for this space.
Effect of the
change
A detailed justification for the change and the evidence taken into
account to support the change
Set out key changes to accounting documents
The cost allocation is explained in Activity Group 106 in the DAM.
A description of the impact of the change in terms of the components
most affected and the general impact of the change and the markets
and services that are most affected by the changes
The market most impacted by the change is WBA Market 1. The main
services affected are IPstream services and Wholesale call termination
local exchange segment.
1
http://www.openreach.co.uk/orpg/home/products/pricing/loadProductPriceDetails.do?dat
a=BXz41J6zPqN4Eur3If4yDkmrHjN3v60VLJJlTHqZbd8lMnGHsqdC0vzO163bJmh34D91D7
M0q8u%2F%0AIlSgtIFAKw%3D%3D
Page 27
Section 5 – Explanation of reported methodology changes
Section 5.8 – Allocation of specific group provision
Reference
number
(Section 4.1)
8
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
the change
The hearing conditions experienced by engineers have arisen as a
consequence of the copper line testing equipment used. As these costs
were caused by the use of equipment specific to the provision of copperbased services, objectively these costs should not be borne by the noncopper services such as Ethernet and it is more cost causal to allocate these
costs to copper services.
Cost causality.
Trigger for
change
Key changes
in accounting
documents
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Other – improvement identified by BT.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
BT is subject to health related claims for deafness amongst current and
former employees arising from the use of copper line testing equipment
(tone generator/oscillator) previously used by engineers.
The claims are self-insured by BT and a specific provision is held by BT
Group to cover the cost of these claims.
The old methodology allocated the costs of this specific group provision to
all Openreach services using Openreach pay.
The new methodology allocates these costs to copper services only to
reflect the fact that the equipment was only used to test copper lines.
Effect of the
change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The markets most impacted by the change are Wholesale Analogue
Exchange Line Services and AISBO (up to and including 1Gbit/s). The main
services affected are MPF Rentals and Wholesale premium and basic
analogue service rentals.
Support for
to support the change
A detailed justification for the change and the evidence taken into account
Page 28
Set out key changes to accounting documents
DAM description has been updated to reflect this provision being allocated
to the line testing equipment Plant Group 240A.
Section 5 – Explanation of reported methodology changes
Section 5.9 – Allocation of Career Transition Centre (CTC) costs
Reference
number
(Section 4.1)
10
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
premium and basic analogue service rentals and MPF rentals.
Support for
the change
CTC employees are effectively a BT-wide resource as they have the
appropriate skills and experience to be utilised in business units across BT,
not just the business unit employing them immediately prior to their entry
into the CTC. Employees are redeployed to business units other than those
employing them before entering the CTC. This indicates that, like other
corporate overheads, they are a resource that can be and are in practice
utilised across BT.
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Therefore, the new methodology results in a more cost causal allocation of
these costs than the old methodology. It is also an improvement in terms of
the distribution of benefits as the previous approach could result in a
disproportionate share of costs being applied to a subset of the businesses
which are undertaking programmes to reduce the number of employees.
Other – improvement identified by BT.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
The CTC is a unit within BT group where employees, who are deemed
surplus to requirements in their current Line of Business (LoB), are pooled
whilst they await redeployment to another part of BT. This methodology
change only relates to the period of time which an employee spends in the
CTC – the allocation methodology associated with subsequent
redeployment (or redundancy) remains unchanged.
Key changes
in accounting
documents
Under the old methodology the employment costs of employees in the CTC
were allocated back to the LoB where the employee worked before
entering the CTC.
The new methodology recognises that employees in the CTC are a resource
that can be utilised by any LoB across BT so should be allocated in the same
way as other corporate overheads – on a pay and return on assets basis.
Effect of the
change
A detailed justification for the change and the evidence taken into account
to support the change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The market most impacted by the change is Wholesale Analogue Exchange
Line Services. The main services impacted by the change are Wholesale
Page 29
Set out key changes to accounting documents
Appendix F of the DAM has been updated to reflect the new methodology
of using Activity Group 112 (corporate costs) to allocate CTC costs.
Section 5 – Explanation of reported methodology changes
Section 5.10 – Allocation of vacant space in exchanges
Reference
number
(Section 4.1)
12
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
termination local exchange segment.
Support for
the change
There is significant management concern that over time there will be less
and less occupancy of operational buildings for network use and the
situation will arise where many buildings will have little use other than as a
termination point for the access network. Accordingly, various business
initiatives are being developed to attempt to rationalise the use of space in
these buildings. For example, where possible vacant exchange space is
sub-let as e.g. office space.
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
For the first stage of allocation, the level of forecast demand for LLU space
is based on forecasts received from other Communication Providers (CPs)
for new Points of Presence (POP) at exchanges. We are required to reserve
space in our exchanges for CPs so it is more cost causal that this space is
allocated to Openreach LLU assets.
Other – improvement identified by BT.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
Under the old methodology, vacant space in exchanges was allocated to
‘occupied space’ on a pro-rata basis.
For the second stage of allocation, business cases for moving from existing
exchanges to smaller and more economical exchanges were reviewed.
These showed that the cost was higher than the savings made from moving
to smaller exchanges. This is because the act of moving copper lines from
one exchange to another is labour intensive, time consuming and likely to
result in unacceptable levels of service disruption to customers. Therefore,
it is cost causal that MDF and cable chambers are allocated the cost of
vacant space as they are preventing a reduction of the size of the
operational building portfolio.
Under the new methodology, a two stage approach has been adopted:
first, a share of vacant space is allocated directly to Openreach LLU assets
according to forecast future occupancy; second, the remaining vacant
space is allocated to Main Distribution Frames (MDF) and Cable chambers.
The new approach first recognises the need to provide space for LLU
operators and second the prohibitive costs and disruption to services of rehousing MDF and cable chambers in order to reduce the size of the
operational building portfolio.
Effect of the
change
A detailed justification for the change and the evidence taken into account
to support the change
Key changes
in accounting
documents
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The markets most impacted by the change are Wholesale Analogue
Exchange Line Services and Wholesale Local Access. The main services
impacted by the change are Wholesale premium and basic analogue service
rentals, MPF rentals, co-mingling rentals, Wholesale call originating local
exchange segment (inc Operator Assistance) and Wholesale call
Page 30
Set out key changes to accounting documents
Activity Group 106 in the DAM has been updated to reflect the new
methodology.
Section 5 – Explanation of reported methodology changes
Section 5.11 – Allocation of Openreach overheads
Reference
number
(Section 4.1)
13
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from:
1) cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5)
Transparency; or 6) Sampling)
Support for
the change
The Openreach general management overheads are now allocated on the
basis of pay and a return on assets in order to reflect the fact that they are
not only influenced by the number of employees within Openreach, but
also by a wider set of activities associated with managing the assets of the
business. This includes ensuring the assets, as well as employees, are
acquired and operated effectively and efficiently. The pay element of the
allocation reflects the people management aspect of the overhead costs
and the return on assets element represents the asset management
aspect.
Cost causality and consistency.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
The new methodology follows from a detailed analysis of the activities
contributing to the Openreach overheads. It is more cost causal because it
reflects the nature of these activities more accurately, recognising that
some overheads are not only influenced by the number of employees but
also the activities of running the business.
Other – improvement identified by BT.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
Openreach overheads are the expenses of operating Openreach,
associated with the continued functioning of the business. These expenses
cannot be directly associated with the products or services being offered.
The methodology is also consistent with the treatment of corporate
overheads.
Under the old methodology, all Openreach overheads were allocated
based on Openreach pay.
Key changes
in accounting
documents
Following a detailed review of Openreach overheads, it has been possible
to distinguish between service/activity related overheads and general
management related overheads (e.g. leadership team, finance, legal).
Under the new methodology, these latter general management overheads
are allocated on the basis of pay and a return on assets.
This is consistent with how BT allocates corporate overheads.
Effect of the
change
A detailed justification for the change and the evidence taken into account
to support the change
A description of the impact of the change in terms of the components
most affected and the general impact of the change and the markets and
services that are most affected by the changes
The market most impacted by the change is Wholesale Analogue Exchange
Line Services. The main services impacted by the change are Wholesale
premium and basic analogue service rentals and MPF rentals.
Page 31
Set out key changes to accounting documents
DAM descriptions for the COMCOS_PCT and COMCOS bases have been
updated to reflect the new methodology.
Section 5 – Explanation of reported methodology changes
Section 5.12 – Merger of BT Innovate & Design (BTID) and BT Operate (BTO) to create BT Technology, Service & Operations (BT TSO)
base (pay and return on assets) that is consistent with the
approach used for Openreach and corporate overheads.
Reference
number
(Section 4.1)
14,15,16
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)

BT TSO computing assets
These assets were previously owned by BTO. The depreciation of these
assets was allocated using the previously allocated pay of the BTO Service
Infrastructure business unit.
Cost causality, consistency.
Trigger for
change
Description
of change
BT TSO costs that are corporate in nature are allocated using the
corporate overheads base as the costs benefit the whole of BT.
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
This business unit has been split up and no longer exists in the new BT TSO
organisation.
Other – creation of BT TSO and better alignment between regulatory and
management accounts.
We have reviewed the nature of these assets in the course of the creation
of BT TSO and we now consider these assets to be for the benefit of the
whole of BT and so we have allocated them using the corporate overhead
base.
A short explanation of the new methodology and how it differs from the
old methodology
BT TSO capitalised development assets
BT TSO operating costs
These assets were previously owned by BTO and relate to system
development work carried out by BTID. The depreciation of these assets
was allocated to plant groups in proportion to the allocation of BTO pay.
Prior to the merger of BTO and BTID, BT took account of their various
activities separately by using numerous different cost drivers, but there was
a large amount of these costs that remained general and unspecified. These
“fixed costs” were allocated pro-rata to costs with known drivers.
BTO has now been split up and does not exist as a separate entity in the
new BT TSO organisation.
Following the merger of BTID and BTO into BT TSO, effective 1 January
2013, a review was performed to provide clarity over the drivers of BT TSO
costs. BT TSO has now established direct trades wherever a specific activity
for a business unit within BT is identified and the treatment of these trades
is either unchanged from the previous BTID/BTO treatment or updated to
reflect better information.
These systems are used to support the BT TSO operational units so we have
chosen to allocate the costs in the same way as we allocate the fixed costs
in those units: the BT TSO managed assets base.
Effect of the
change
When no specific activity is directly attributable to a business unit, fixed
trades have been established to formally allocate these costs:

BT TSO operational units are functions that are primarily focused
on supporting and maintaining BT TSO managed assets so a BT
TSO managed assets base is used to allocate these costs. The
activities of these units relate to managing the BT TSO network.

BT TSO overhead units are allocated using a BT TSO overheads
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The markets most impacted by the changes are Wholesale Analogue
Exchange Line Services, Wholesale Local Access and WBA Market 1. The
main services impacted by the change are Wholesale premium and basic
analogue service rentals, MPF rentals, Co-mingling new provides, Comingling rentals, and Residual services.
Page 32
Section 5 – Explanation of reported methodology changes
Support for
the change
are therefore corporate in nature.
A detailed justification for the change and the evidence taken into account
to support the change
BT TSO capitalised development assets
BT TSO operating costs
The BTO business unit no longer exists within the new BT TSO organisation
so it is no longer practical to allocate the costs in proportion to BTO
activities.
BTO used to support all of BT in a variety of different ways. For example, it
was responsible for operating BT’s non-Openreach networks and
platforms, it provided power and ventilation to BT’s operational buildings
and it managed BT’s computing operations and security functions.
Previously BT took account of these various activities by using numerous
different cost drivers, but there was a large amount of these costs that
remained general and unspecified. These “fixed costs” were allocated prorata to costs with known drivers.
These assets are used to support the BT TSO operations so our approach is
consistent with the allocation of other BT TSO fixed costs.
Key changes
in accounting
documents
Following the creation of BT TSO it became impracticable to allocate fixed
costs in proportion to BTO and BTID business units since these units no
longer exist. For example, the BTO Service Infrastructure unit costs were
previously allocated prorata with the known and specific activities.
However, the creation of BT TSO meant the Service Infrastructure unit was
re-organised into several different units and merged with BTID units
meaning the previous allocation method could no longer be used.
Each trade in the new BT TSO organisation was reviewed and how the costs
should be allocated was considered. For direct trades, i.e. a specific activity
for a business unit within BT, the costs are allocated in the same way as the
prior year or updated to reflect more detailed information available. The
review of trades also ensured there was better alignment between the
regulatory and management accounts to ensure the most robust and
transparent information is used within BT.
General costs, which are ‘common’ or ‘shared’ in nature, consist mainly of
BT TSO central functions (such as HR, the CEO office, Research and
Innovation and Business and Operational Strategy), BT TSO Operational
units (such as Fleet, Consultancy, Conferencing and the Energy & Carbon
unit), BT TSO own use (such as security and IT) and the BT wide Oracle
licence. Rather than continuing with the previous approach of allocating
these costs in different ways a simpler and more transparent approach has
been used by establishing fixed trades as described above.
BT TSO computing assets
These assets are comprised of personal laptops and main frame computers
along with other associated capital expenditure, for example the creation
of computer rooms to house the main frames.
Both of these asset classes are available to the use of all people in BT and
Page 33
Set out key changes to accounting documents
Activity Group 102 and 103 descriptions have been included in the DAM
and BT TSO base references have been updated to reflect the new
methodologies.
Section 5 – Explanation of reported methodology changes
Section 5.13 – Current Cost Accounting (CCA) valuation of Dropwire
Reference
number
(Section 4.1)
17
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
been changed to an indexed RPI basis.
Key changes
in accounting
documents
Consistency.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Other – improvement identified by BT.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
Under the old methodology the CCA valuation of dropwire was based on
the historic cost of the asset indexed using an internally generated index.
Under the new methodology the historic cost of the dropwire asset is
indexed using the RPI index. The new methodology is consistent with the
CCA valuation of duct and copper assets.
Effect of the
change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The markets most impacted by the change are Wholesale Analogue
Exchange Line Services and Wholesale Local Access. The main services
impacted by the change are Wholesale premium and basic analogue service
rentals and MPF rentals.
Support for
the change
A detailed justification for the change and the evidence taken into account
to support the change
The CCA valuation of duct and copper assets was changed in 2012/13 from
an absolute basis to an indexed RPI basis. To be consistent with the
valuation of other network assets the CCA valuation of dropwire has also
Page 34
Set out key changes to accounting documents
The Detailed Valuation Methodology 2013 section 2.3 has been updated
for the change in the CCA valuation of dropwire assets.
Section 5 – Explanation of reported methodology changes
Section 5.14 – CCA valuation of exchange power equipment and specialised accommodation plant
Reference
number
(Section 4.1)
18
Key driver for
change
State key driver based on Regulatory Accounting Principles (Select from: 1)
cost causality; 2) objectivity; 3) consistency; 4) UK GAAP; 5) Transparency;
or 6) Sampling)
the change
The HCA value of the exchange power equipment and specialised
accommodation plant assets in 2012/13 was diverging from the CCA value
of the assets. The new methodology provides a more cost causal valuation
for the assets and is based on independent indices from the ONS.
Key changes
in accounting
documents
Cost causality.
Trigger for
change
Select from 1)BT judgement 2) Regulatory decision 3) changes in available
evidence 4) other
Other – improvement identified by BT.
Description
of change
A short explanation of the new methodology and how it differs from the
old methodology
Exchange power equipment and specialised accommodation plant were
previously valued on a Historic Cost Accounting (HCA) basis. The value of
these assets on a HCA basis and a CCA basis had diverged. In order to
provide a more cost causal valuation of the assets they are now valued on
an indexed historic basis.
Indices from the Office of National Statistics (ONS) have been used to value
the different types of assets.
Effect of the
change
A description of the impact of the change in terms of the components most
affected and the general impact of the change and the markets and
services that are most affected by the changes
The markets most impacted by the change are Wholesale Analogue
Exchange Line Services, TISBO (up to and including 8Mbit/s), Wholesale
Local Access and WBA Market 1. The main services impacted by the change
are Wholesale basic analogue service rentals, co-mingling new provides,
co-mingling rentals, IPStream services, Wholesale call termination local
exchange segment and Wholesale call originating local exchange segment
(incl Operator Assistance).
Support for
to support the change
A detailed justification for the change and the evidence taken into account
Page 35
Set out key changes to accounting documents
The Detailed Valuation Methodology 2013 sections 2.12 and 2.13 have
been updated for the change in the CCA valuation of exchange power
equipment and specialised accommodation plant.
Section 6 – Illustrative difference of methodology changes on FAC
Section 6
Illustrative difference of methodology changes on FAC
Page 36
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.1 – Illustrative for Wholesale Analogue Exchange Line Services
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
Wholesale basic analogue internal service rentals
Wholesale basic analogue external service rentals
102.30
102.30
100.00
100.00
2.30
2.30
2.3%
2.3%
Wholesale premium analogue internal service rentals
Wholesale premium analogue external service rentals
105.05
105.05
101.84
101.84
3.21
3.21
3.2%
3.2%
Wholesale basic analogue internal service connections
45.46
38.64
6.82
17.7%
Wholesale premium analogue internal service connections
Wholesale premium and basic analogue external service connections
45.46
45.46
38.64
38.64
6.82
6.82
17.7%
17.7%
Page 37
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.1.1 – Illustrative for Wholesale Analogue Exchange Line Services calculation of FAC based on component costs and usage factors
Wholesale Access specific
£/trans
Routeing & records
£/line
4.50
MDF Hardware jumpering
£/line
17.13
E side copper capital
£/line
9.36
9.32
E side copper current
£/line
1.82
1.82
2.19
D side copper capital
£/line
51.38
51.21
51.23
D side copper current
£/line
7.01
7.02
8.42
Local exchanges general frames capital
£/line
1.80
1.81
1.81
Local exchanges general frames current
£/line
0.86
0.86
1.04
PSTN line test equipment
£/line
0.20
0.20
0.20
Dropwire capital & PSTN NTE
£/line
15.10
15.10
15.11
Residential PSTN drop maintenance
£/line
3.66
3.67
4.40
PSTN line cards
£/line
7.31
7.31
7.32
Broadband line testing systems
£/line
2.50
0.69
0.69
Combi Card voice
£/line
0.24
0.24
0.24
Service Centres - Assurance (q)
%
£29m
0.82
0.82
Sales product management (q)
%
£17m
0.17
0.19
Service Centres - Provision (q)
%
£112m
Directories (q)
%
£37m
Fully Allocated Costs (£)
12.37
Wholesale premium and basic
analogue connections
£
Unit (d)
Wholesale premium analogue
internal service connections
£
Components
Wholesale basic analogue internal
service connections
As reported for the year ended 31 March 2013
Wholesale premium analogue
rentals
Average cost per unit
Wholesale basic analogue rentals
Wholesale analogue exchange
line services
£
£
£
12.40 12.40 12.40
4.50
4.50
4.50
17.17 17.17 17.17
9.33
0.09
0.09
0.09
11.30 11.30 11.30
2.06
2.06
102.30 105.05 45.46 45.46 45.46
Page 38
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.1.1 – Illustrative for Wholesale Analogue Exchange Line Services calculation of FAC based on component costs and usage factors (continued)
Wholesale premium analogue
internal service connections
Wholesale premium and basic
analogue connections
£
£
2.88
2.91
2.91
2.91
5.08
5.08
5.08
5.08
Average cost per unit
Restated on basis of 2011/12 methodologies
£
Wholesale premium analogue
rentals
£
Wholesale basic analogue rentals
Wholesale basic analogue internal
service connections
Wholesale analogue exchange
line services
£
Components
Unit (d)
Wholesale Access specific
£/trans
Routeing & records
£/line
MDF Hardware jumpering
£/line
18.41
E side copper capital
£/line
8.83
8.83
E side copper current
£/line
2.02
2.02
2.42
D side copper capital
£/line
46.86
46.86
46.88
D side copper current
£/line
6.83
6.83
8.21
Local exchanges general frames capital
£/line
1.08
1.08
1.08
Local exchanges general frames current
£/line
1.00
1.00
1.00
PSTN line test equipment
£/line
0.18
0.18
0.18
Dropwire capital & PSTN NTE
£/line
16.77
16.77
16.78
Residential PSTN drop maintenance
£/line
4.52
4.52
4.52
PSTN line cards
£/line
7.99
7.98
7.99
Broadband line testing systems
£/line
2.24
0.59
0.59
Combi Card voice
£/line
0.24
0.24
0.24
Service Centres - Assurance (q)
%
£37m
0.87
0.87
Sales product management (q)
%
£18m
0.18
0.20
Service Centres - Provision (q)
%
£118m
Directories (q)
%
£37m
Fully Allocated Costs (£)
18.46 18.46 18.46
8.83
0.09
0.09
0.09
12.10 12.10 12.10
2.05
2.05
100.00 101.84 38.64 38.64 38.64
Page 39
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.1.1 - Illustrative for Wholesale Analogue Exchange Line Services calculation of FAC based on component costs and usage factors (continued)
Wholesale Access specific
£/trans
Routeing & records
£/line
(0.58)
MDF Hardware jumpering
£/line
(1.28)
E side copper capital
£/line
0.53
0.49
0.50
E side copper current
£/line
(0.20)
(0.20)
(0.23)
D side copper capital
£/line
4.52
4.35
4.35
D side copper current
£/line
0.18
0.19
0.21
Local exchanges general frames capital
£/line
0.72
0.73
0.73
Local exchanges general frames current
£/line
(0.14)
(0.14)
0.04
PSTN line test equipment
£/line
0.02
0.02
0.02
Dropwire capital & PSTN NTE
£/line
(1.67)
(1.67)
(1.67)
Residential PSTN drop maintenance
£/line
(0.86)
(0.85)
(0.12)
PSTN line cards
£/line
(0.68)
(0.67)
(0.67)
Broadband line testing systems
£/line
0.26
0.10
0.10
Combi Card voice
£/line
-
-
Service Centres - Assurance (q)
%
(£8m)
(0.05)
(0.05)
Sales product management (q)
%
(£1m)
(0.01)
(0.01)
Service Centres - Provision (q)
%
(£6m)
Directories (q)
%
£0m
0.01
0.01
2.30
3.21
Fully Allocated Costs (£)
9.49
Wholesale premium and basic
analogue connections
£
Unit (d)
Wholesale premium analogue
internal service connections
£
Components
Wholesale basic analogue internal
service connections
Effect of changes on results
Wholesale premium analogue
rentals
Average cost per unit
Wholesale basic analogue rentals
Wholesale analogue exchange
line services
£
£
£
9.49
9.49
9.49
(0.58) (0.58) (0.58)
(1.29) (1.29) (1.29)
-
(0.80) (0.80) (0.80)
6.82
Page 40
6.82
6.82
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.1.1 - Illustrative for Wholesale Analogue Exchange Line Services calculation of FAC based on component costs and usage factors (continued)
Wholesale premium and basic
analogue connections
%
Wholesale premium analogue
internal service connections
%
Wholesale basic analogue internal
service connections
Effect of changes on results as a percentage
Wholesale premium analogue
rentals
Average cost per unit
Wholesale basic analogue rentals
Wholesale analogue exchange
line services
%
%
%
Components
Unit (d)
Wholesale Access specific
£/trans
330%
326% 326% 326%
Routeing & records
£/line
-11%
-11%
-11%
-11%
MDF Hardware jumpering
£/line
-7%
-7%
-7%
-7%
E side copper capital
£/line
6%
6%
6%
E side copper current
£/line
-10%
-10%
-10%
D side copper capital
£/line
10%
9%
9%
D side copper current
£/line
3%
3%
3%
Local exchanges general frames capital
£/line
67%
68%
68%
Local exchanges general frames current
£/line
-14%
-14%
4%
PSTN line test equipment
£/line
11%
11%
11%
Dropwire capital & PSTN NTE
£/line
-10%
-10%
-10%
Residential PSTN drop maintenance
£/line
-19%
-19%
-3%
PSTN line cards
£/line
-9%
-8%
-8%
Broadband line testing systems
£/line
12%
17%
17%
Combi Card voice
£/line
0%
0%
0%
Service Centres - Assurance (q)
%
-22%
-6%
-6%
Sales product management (q)
%
-6%
-6%
-5%
Service Centres - Provision (q)
%
-5%
Directories (q)
%
0%
Fully Allocated Costs %
0%
0%
2%
3%
0%
0%
0%
-7%
-7%
-7%
18%
18%
18%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 41
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.2 – Illustrative for Wholesale ISDN2 Exchange Line Services
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
Wholesale ISDN2 internal service rentals
Wholesale ISDN2 external service rentals
71.77
71.70
72.12
72.05
(0.35)
(0.35)
-0.5%
-0.5%
Wholesale ISDN2 internal service connections
Wholesale ISDN2 external service connections
28.31
28.18
25.23
25.10
3.08
3.08
12.2%
12.3%
Wholesale ISDN2 internal service transfers
Wholesale ISDN2 external service transfers
17.65
17.62
13.72
13.68
3.93
3.94
28.6%
28.8%
Page 42
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.2.1 – Illustrative for Wholesale ISDN2 Exchange Line Services calculation of FAC based on component costs and usage factors
£
£
Unit (d)
Wholesale Access specific
£/trans
12.37
6.26
6.25
Routeing & records
£/line
4.50
1.52
1.52
MDF Hardware jumpering
£/line
17.13
8.70
8.67
E side copper capital
£/line
9.36
E side copper current
£/line
1.82
1.56
1.56
D side copper capital
£/line
51.38
25.75
25.75
D side copper current
£/line
7.01
6.01
6.01
Local exchanges general frames capital
£/line
1.80
0.90
0.90
Local exchanges general frames current
£/line
0.86
0.52
0.52
PSTN line test equipment
£/line
0.20
0.16
0.16
Dropwire capital & PSTN NTE
£/line
15.10
7.57
7.57
ISDN2 drop maintenance
£/channel
2.01
2.01
2.01
ISDN2 line cards
£/channel
17.46
17.46
17.46
ISDN2 NTE
£/channel
3.77
3.77
3.77
Service Centres - Assurance (q)
%
£29m
0.82
0.82
Sales product management (q)
%
£17m
0.55
0.48
Service Centres - Provision (q)
%
£112m
Fully Allocated Costs (£)
4.69
71.77
£
6.22
Wholesale ISDN2 external
service transfers
£
Components
Wholesale ISDN2 internal
service transfers
Wholesale ISDN2 internal
service connections
£
Wholesale ISDN2 external
service connections
Wholesale ISDN2 external
service rentals
As reported for the year ended 31 March 2013
Wholesale ISDN2 internal
service rentals
Average cost per unit
Wholesale ISDN2 exchange line services
£
6.21
4.69
71.70
0.42
0.36
0.11
0.10
11.41
11.38
11.32
11.31
28.31
28.18
17.65
17.62
Page 43
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.2.1 - Illustrative for Wholesale ISDN2 Exchange Line Services calculation of FAC based on component costs and usage factors (continued)
£
£
Unit (d)
Wholesale Access specific
£/trans
2.88
1.52
1.50
Routeing & records
£/line
5.08
1.71
1.71
MDF Hardware jumpering
£/line
18.41
9.34
9.32
E side copper capital
£/line
8.83
E side copper current
£/line
2.02
1.73
1.73
D side copper capital
£/line
46.86
23.48
23.48
D side copper current
£/line
6.83
5.85
5.85
Local exchanges general frames capital
£/line
1.08
0.54
0.54
Local exchanges general frames current
£/line
1.00
0.50
0.50
PSTN line test equipment
£/line
0.18
0.14
0.14
Dropwire capital & PSTN NTE
£/line
16.77
8.41
8.41
ISDN2 drop maintenance
£/channel
2.25
2.25
2.25
ISDN2 line cards
£/channel
19.04
19.04
19.04
ISDN2 NTE
£/channel
4.31
4.31
4.31
Service Centres - Assurance (q)
%
£37m
0.87
0.87
Sales product management (q)
%
£18m
0.58
0.51
Service Centres - Provision (q)
%
£118m
Fully Allocated Costs (£)
4.42
72.12
£
1.47
Wholesale ISDN2 external
service transfers
£
Components
Wholesale ISDN2 internal
service transfers
Wholesale ISDN2 internal
service connections
£
Wholesale ISDN2 external
service connections
Wholesale ISDN2 external
service rentals
Restated on basis of 2011/12 methodologies
Wholesale ISDN2 internal
service rentals
Average cost per unit
Wholesale ISDN2 exchange line services
£
1.46
4.42
72.05
0.45
0.38
0.12
0.10
12.21
12.19
12.13
12.12
25.23
25.10
13.72
13.68
Page 44
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.2.1 - Illustrative for Wholesale ISDN2 Exchange Line Services calculation of FAC based on component costs and usage factors (continued)
£
£
£
Components
Unit (d)
Wholesale Access specific
£/trans
9.49
4.74
4.75
Routeing & records
£/line
(0.58)
(0.19)
(0.19)
MDF Hardware jumpering
£/line
(1.28)
(0.64)
(0.65)
E side copper capital
£/line
0.53
E side copper current
£/line
D side copper capital
£/line
4.52
2.27
2.27
D side copper current
£/line
0.18
0.16
0.16
Local exchanges general frames capital
£/line
0.72
0.36
0.36
Local exchanges general frames current
£/line
(0.14)
0.02
0.02
PSTN line test equipment
£/line
0.02
0.02
0.02
Dropwire capital & PSTN NTE
£/line
(1.67) (0.84) (0.84)
ISDN2 drop maintenance
£/channel
(0.24) (0.24) (0.24)
ISDN2 line cards
£/channel
(1.58) (1.58) (1.58)
ISDN2 NTE
£/channel
(0.54) (0.54) (0.54)
Service Centres - Assurance (q)
%
(£8m) (0.05) (0.05)
Sales product management (q)
%
(£1m) (0.03) (0.03) (0.03)
(0.02) (0.01)
Service Centres - Provision (q)
%
(£6m)
(0.81) (0.81)
Fully Allocated Costs (£)
0.27
4.75
Wholesale ISDN2 external
service transfers
£
Wholesale ISDN2 internal
service transfers
Wholesale ISDN2 internal
service connections
£
Wholesale ISDN2 external
service connections
Wholesale ISDN2 external
service rentals
Effect of changes on results
Wholesale ISDN2 internal
service rentals
Average cost per unit
Wholesale ISDN2 exchange line services
£
4.75
0.27
(0.20) (0.17) (0.17)
(0.80)
(0.35) (0.35)
3.08
Page 45
3.08
3.93
(0.81)
3.94
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.2.1 - Illustrative for Wholesale ISDN2 Exchange Line Services calculation of FAC based on component costs and usage factors (continued)
%
%
%
Wholesale ISDN2 external
service transfers
%
Wholesale ISDN2 internal
service transfers
Wholesale ISDN2 internal
service connections
%
Wholesale ISDN2 external
service connections
Wholesale ISDN2 external
service rentals
Effect of changes on results as a percentage
Wholesale ISDN2 internal
service rentals
Average cost per unit
Wholesale ISDN2 exchange line services
%
Components
Unit (d)
Wholesale Access specific
£/trans
330%
312%
317% 323%
Routeing & records
£/line
-11%
-11%
-11%
MDF Hardware jumpering
£/line
-7%
-7%
-7%
E side copper capital
£/line
6%
6%
6%
E side copper current
£/line
-10%
-10%
-10%
D side copper capital
£/line
10%
10%
10%
D side copper current
£/line
3%
3%
3%
Local exchanges general frames capital
£/line
67%
67%
67%
Local exchanges general frames current
£/line
-14%
4%
4%
PSTN line test equipment
£/line
11%
14%
14%
Dropwire capital & PSTN NTE
£/line
-10%
-10%
-10%
ISDN2 drop maintenance
£/channel
-11%
-11%
-11%
ISDN2 line cards
£/channel
-8%
-8%
-8%
ISDN2 NTE
£/channel
-13%
-13%
-13%
Service Centres - Assurance (q)
%
-22%
-6%
-6%
Sales product management (q)
%
-6%
-5%
-6%
-7%
-5%
-8%
0%
Service Centres - Provision (q)
%
-5%
-7%
-7%
-7%
-7%
12%
12%
29%
29%
Fully Allocated Costs %
0%
0%
325%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 46
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.3 – Illustrative for TISBO (up to and including 8Mbit/s)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
1,960.96
1,960.96
2,350.69
2,350.69
(389.73)
(389.73)
-16.6%
-16.6%
Partial and Private Circuits 64kbit/s - link
Main link fixed charge per year
Enhanced maintenance fixed charge per year (ao)
Total Internal
176.18
193.72
(17.54)
-9.1%
Main link fixed charge per year
Enhanced maintenance fixed charge per year (ao)
Total External
176.18
193.72
(17.54)
-9.1%
Partial and Private Circuits 64kbit/s - distribution
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total Internal
4.12
4.00
0.12
3.0%
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total External
4.12
4.00
0.12
3.0%
Partial and Private Circuits 64kbit/s - trunk
Trunk segment charge per year
Enhanced maintenance per kilometre charge per year
Total Internal
4.29
4.18
0.11
2.6%
Trunk segment charge per year
Enhanced maintenance per kilometre charge per year
Total External
4.29
4.18
0.11
2.6%
Partial and Private Circuits 64kbit/s - local end
Local end fixed charge per year
Enhanced maintenance fixed charge per year (ao)
Total Internal
494.23
504.07
(9.84)
-2.0%
Local end fixed charge per year
Enhanced maintenance fixed charge per year (ao)
Total External
494.23
504.07
(9.84)
-2.0%
Service
Internal Partial and Private Circuits 64kbit/s - connections
External Partial and Private Circuits 64kbit/s - connections
Page 47
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.3 – Illustrative for TISBO (up to and including 8Mbit/s) continued
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
5,510.81
5,510.81
6,916.41
6,916.41
(1,405.60)
(1,405.60)
-20.3%
-20.3%
Partial and Private Circuits 2Mbit/s - link
Main link fixed charge per year
Enhanced maintenance fixed charge per year
Total internal
195.71
286.20
(90.49)
-31.6%
Main link fixed charge per year
Enhanced maintenance fixed charge per year
Total External
195.71
286.20
(90.49)
-31.6%
Partial and Private Circuits 2Mbit/s - distribution
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total Internal
36.09
36.41
(0.32)
-0.9%
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total External
36.09
36.41
(0.32)
-0.9%
551.31
567.74
(16.43)
-2.9%
External Radio Backhaul Service - sub 2Mbit/s connections
2,714.40
3,256.30
(541.90)
-16.6%
Internal Radio Backhaul Service - 2Mbit/s connections
External Radio Backhaul Service - 2Mbit/s connections
5,494.82
5,494.82
6,899.91
6,899.91
(1,405.09)
(1,405.09)
-20.4%
-20.4%
External Netstream 16 LL 2Mbit/s connections
5,437.00
6,841.00
(1,404.00)
-20.5%
Service
Internal Partial and Private Circuits 2Mbit/s - connections
External Partial and Private Circuits 2Mbit/s - connections
Weighted average local end price for CLZ/non CLZ // Nationally averaged cost
Page 48
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.3.1 – Illustrative for TISBO (up to and including 8Mbit/s) calculation of FAC based on component costs and usage factors
£
£
£
£
£
Components
Unit (d)
PC rental 2Mbit/s link per km distribution
£/km
33.06
PC rental 64kbit/s link
£/link
168.09
PC rental 2Mbit/s link
£/link
174.32
PC rental 64kbit/s link per km transmission
£/km
4.02
64kbit/s PC link connection cct provision (y)
£/circuit
1,999.40
2Mbit/s and above PC link connection cct provision
£/circuit
5,409.66
PC rental 64kbit/s link local end
£/le
392.94
PC rental 2Mbit/s local end copper
£/le
263.18
24.52
PC rental 2Mbit/s local end fibre
£/le
650.76
464.90
E side copper capital
£/line
9.36
9.36
E side copper current
£/line
1.82
1.82
0.16
D side copper capital
£/line
51.38
51.40
12.36
D side copper current
£/line
7.01
7.02
0.62
Local exchanges general frames capital
£/line
1.80
1.81
0.43
Edge Ethernet ports (q)
%
Core/Metro connectivity (q)
%
-
MSAN-METRO Connectivity Link (q)
%
£0m
Access Cards (other services) (q)
%
£25m
SG & A partial private circuits (q)
%
£31m
Fully Allocated Costs (£)
£
£
External Netstream 16 LL 2Mbit/s
connections
Radio Backhaul Service - 2 Mbit/s
connections
Radio Backhaul Service - sub 2
Mbit/s connections
Partial and Private Circuits
2Mbit/s - local end
Partial and Private Circuits
2Mbit/s - distribution
Partial and Private Circuits
2Mbit/s - link
£
Partial and Private Circuits
2Mbit/s - connections
£
Partial and Private Circuits
64kbit/s - local end
Partial and Private Circuits
64kbit/s - trunk
£
Partial and Private Circuits
64kbit/s - distribution
£
Partial and Private Circuits
64kbit/s - link
As reported for the year ended 31 March 2013
Partial and Private Circuits
64kbit/s - connections
Average cost per unit
Traditional interface symmetric broadband origination (up to and including 8Mbit/s)
£
33.19
168.35
175.18
4.02
4.03
1,931.28
2,684.72
5,410.17
5,408.61
5,403.00
29.68
86.21
34.00
5,510.81 195.71 36.09 551.31 2,714.40
5,494.82
5,437.00
392.08
2.25
0.01
6.16
29.68
7.83
0.10
0.26
30.74
1,960.96 176.18
4.12
4.29 494.23
100.64
Page 49
20.52
2.90
39.91
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.3.1 - Illustrative for TISBO (up to and including 8Mbit/s) calculation of FAC based on component costs and usage factors (continued)
£
£
£
£
£
Components
Unit (d)
PC rental 2Mbit/s link per km distribution
£/km
33.27
PC rental 64kbit/s link
£/link
185.35
PC rental 2Mbit/s link
£/link
190.25
PC rental 64kbit/s link per km transmission
£/km
3.89
64kbit/s PC link connection cct provision (y)
£/circuit
2,401.81
2Mbit/s and above PC link connection cct provision
£/circuit
6,811.63
PC rental 64kbit/s link local end
£/le
407.43
PC rental 2Mbit/s local end copper
£/le
278.27
26.71
PC rental 2Mbit/s local end fibre
£/le
675.01
485.23
E side copper capital
£/line
8.83
8.83
E side copper current
£/line
2.02
2.02
0.18
D side copper capital
£/line
46.86
46.88
11.28
D side copper current
£/line
6.83
6.84
0.61
Local exchanges general frames capital
£/line
1.08
1.08
Edge Ethernet ports (q)
%
£9m
3.85
Core/Metro connectivity (q)
%
£63m
43.08
MSAN-METRO Connectivity Link (q)
%
£7m
26.90
Access Cards (other services) (q)
%
£28m
SG & A partial private circuits (q)
%
£32m
Fully Allocated Costs (£)
£
£
External Netstream 16 LL
2Mbit/s connections
Radio Backhaul Service - 2
Mbit/s connections
Radio Backhaul Service - sub 2
Mbit/s connections
Partial and Private Circuits
2Mbit/s - local end
Partial and Private Circuits
2Mbit/s - distribution
Partial and Private Circuits
2Mbit/s - link
£
Partial and Private Circuits
2Mbit/s - connections
£
Partial and Private Circuits
64kbit/s - local end
Partial and Private Circuits
64kbit/s - trunk
£
Partial and Private Circuits
64kbit/s - distribution
£
Partial and Private Circuits
64kbit/s - link
Restated on basis of 2011/12 methodologies
Partial and Private Circuits
64kbit/s - connections
Average cost per unit
Traditional interface symmetric broadband origination (up to and including 8Mbit/s)
£
33.40
185.61
191.11
3.89
3.91
2,319.93
3,225.54
6,812.13
6,810.58
6,805.00
30.76
89.33
36.00
6,916.41 286.20 36.41 567.74 3,256.30
6,899.91
6,841.00
406.57
30.76
8.11
0.11
0.27
31.85
2,350.69 193.72
4.00
4.18 504.07
2.12
0.26
104.28
Page 50
21.26
3.01
41.35
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.3.1 - Illustrative for TISBO (up to and including 8Mbit/s) calculation of FAC based on component costs and usage factors (continued)
£
£
£
£
£
Components
Unit (d)
PC rental 2Mbit/s link per km distribution
£/km
(0.21)
PC rental 64kbit/s link
£/link
(17.26)
PC rental 2Mbit/s link
£/link
(15.93)
PC rental 64kbit/s link per km transmission
£/km
0.13
64kbit/s PC link connection cct provision (y)
£/circuit
(402.41)
2Mbit/s and above PC link connection cct provision
£/circuit
(1,401.97)
PC rental 64kbit/s link local end
£/le
(14.49)
PC rental 2Mbit/s local end copper
£/le
(15.09)
(2.19)
PC rental 2Mbit/s local end fibre
£/le
(24.25)
(20.33)
E side copper capital
£/line
0.53
0.53
0.13
E side copper current
£/line
(0.20)
(0.20)
(0.02)
D side copper capital
£/line
4.52
4.52
1.08
D side copper current
£/line
0.18
0.18
0.01
Local exchanges general frames capital
£/line
0.72
0.73
Edge Ethernet ports (q)
%
(£9m)
(3.85)
Core/Metro connectivity (q)
%
(£63m)
(43.08)
MSAN-METRO Connectivity Link (q)
%
(£7m)
(26.89)
Access Cards (other services) (q)
%
(£3m)
SG & A partial private circuits (q)
%
(£1m)
Fully Allocated Costs (£)
£
£
External Netstream 16 LL
2Mbit/s connections
Radio Backhaul Service - 2
Mbit/s connections
Radio Backhaul Service - sub
2 Mbit/s connections
Partial and Private Circuits
2Mbit/s - local end
Partial and Private Circuits
2Mbit/s - distribution
Partial and Private Circuits
2Mbit/s - link
£
Partial and Private Circuits
2Mbit/s - connections
£
Partial and Private Circuits
64kbit/s - local end
Partial and Private Circuits
64kbit/s - trunk
£
Partial and Private Circuits
64kbit/s - distribution
£
Partial and Private Circuits
64kbit/s - link
Effect of changes on results
Partial and Private Circuits
64kbit/s - connections
Average cost per unit
Traditional interface symmetric broadband origination (up to and including 8Mbit/s)
£
(0.21)
(17.26)
(15.93)
0.13
0.12
(388.65)
(540.82)
(1,401.96)
(1,401.97) (1,402.00)
(14.49)
0.17
6.16
(1.08)
(0.28) (0.01) (0.01)
(389.73) (17.54)
0.12
0.11
(1.11)
(3.64)
(0.74) (0.11)
(1.44)
(9.84) (1,405.60) (90.49) (0.32) (16.43)
Page 51
(1.08)
(3.12)
(2.00)
(541.90) (1,405.09) (1,404.00)
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.3.1 - Illustrative for TISBO (up to and including 8Mbit/s) calculation of FAC based on component costs and usage factors (continued)
%
%
%
%
%
Components
Unit (d)
PC rental 2Mbit/s link per km distribution
£/km
-1%
PC rental 64kbit/s link
£/link
-9%
PC rental 2Mbit/s link
£/link
-8%
PC rental 64kbit/s link per km transmission
£/km
3%
64kbit/s PC link connection cct provision (y)
£/circuit
-17%
2Mbit/s and above PC link connection cct provision
£/circuit
-21%
PC rental 64kbit/s link local end
£/le
-4%
PC rental 2Mbit/s local end copper
£/le
-5%
PC rental 2Mbit/s local end fibre
£/le
-4%
E side copper capital
£/line
6%
6%
6%
E side copper current
£/line
-10%
-10%
-11%
D side copper capital
£/line
10%
10%
10%
D side copper current
£/line
3%
3%
2%
Local exchanges general frames capital
£/line
67%
68%
65%
Edge Ethernet ports (q)
%
-100%
-100%
Core/Metro connectivity (q)
%
-100%
-100%
MSAN-METRO Connectivity Link (q)
%
-100%
-100%
Access Cards (other services) (q)
%
-11%
SG & A partial private circuits (q)
%
-3%
Fully Allocated Costs %
%
%
External Netstream 16 LL
2Mbit/s connections
Radio Backhaul Service - 2
Mbit/s connections
Radio Backhaul Service - sub 2
Mbit/s connections
Partial and Private Circuits
2Mbit/s - local end
Partial and Private Circuits
2Mbit/s - distribution
Partial and Private Circuits
2Mbit/s - link
%
Partial and Private Circuits
2Mbit/s - connections
%
Partial and Private Circuits
64kbit/s - local end
%
Partial and Private Circuits
64kbit/s - trunk
%
Partial and Private Circuits
64kbit/s - distribution
Partial and Private Circuits
64kbit/s - link
Effect of changes on results as a percentage
Partial and Private Circuits
64kbit/s - connections
Average cost per unit
Traditional interface symmetric broadband origination (up to and including 8Mbit/s)
%
-1%
-9%
-8%
3%
3%
-17%
-17%
-21%
-21%
-21%
-4%
-8%
-4%
100%
-4%
-3%
-9%
-4%
-3%
-3%
-3%
-4%
-3%
-4%
-3%
-6%
-17%
-9%
3%
3%
-2%
-20%
-32%
-1%
-3%
-17%
-20%
-21%
(ao) The price for 64kbit/s enhanced maintenance is weighted to include different 64kbit/s equivalent services.
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(y) Unit costs calculated as a weighted average of the 64kbit PC link connection cct provision & 64kbit PC link connection cct rearrangements.
(q) This is the total cost not unit cost for this component.
Page 52
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.4 – Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
Internal Partial and Private Circuits 34/45Mbit/s - connections
External Partial and Private Circuits 34/45Mbit/s - connections
5,504.12
5,504.12
6,909.50
6,909.50
(1,405.38)
(1,405.38)
-20.3%
-20.3%
Partial and Private Circuits 34/45Mbit/s - link
Main link fixed charge per year
Enhanced maintenance fixed charge per year
Total Internal
1,403.83
2,732.96
(1,329.13)
-48.6%
Main link fixed charge per year
Enhanced maintenance fixed charge per year
Total External
1,403.83
2,732.96
(1,329.13)
-48.6%
Partial and Private Circuits 34/45Mbit/s - distribution
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total Internal
298.70
301.60
(2.90)
-1.0%
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total External
298.70
301.60
(2.90)
-1.0%
Partial and Private Circuits 34/45Mbit/s - local end
Local end fixed charge per year
Enhanced maintenance fixed charge per year
Total Internal
3,793.72
4,719.61
(925.89)
-19.6%
Local end fixed charge per year
Enhanced maintenance fixed charge per year
Total External
3,793.72
4,719.61
(925.89)
-19.6%
Page 53
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.4.1 – Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s) calculation of FAC based on component costs and usage factors
£
Components
Unit (d)
PC rental 34Mbit/s link per km distribution
£/km
273.05
PC rental 34Mbit/s link
£/link
1,246.82
2Mbit/s and above PC link connection cct provision
£/circuit
5,409.66
PC rental 34Mbit/s link local end
£/le
3,553.49
Edge Ethernet ports (q)
%
Core/Metro connectivity (q)
%
-
MSAN-METRO Connectivity Link (q)
%
£0m
Access Cards (other services) (q)
%
£25m
SG & A partial private circuits (q)
%
£31m
Fully Allocated Costs (£)
£
£
Partial and Private Circuits
34/45Mbit/s - local end
Partial and Private Circuits
34/45Mbit/s - distribution
Partial and Private Circuits
34/45Mbit/s - link
As reported for the year ended 31 March 2013
Partial and Private Circuits
34/45Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 8Mbit/s
up to and including 45Mbit/s)
£
273.04
1,246.81
5,409.52
3,508.60
£9m
0.01
0.26
131.54
94.60
5,504.12
156.75
25.66
153.58
1,403.83 298.70 3,793.72
Page 54
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.4.1 - Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s) calculation of FAC based on component costs and usage factors (continued)
£
£
Components
Unit (d)
PC rental 34Mbit/s link per km distribution
£/km
275.01
PC rental 34Mbit/s link
£/link
1,315.53
2Mbit/s and above PC link connection cct provision
£/circuit
6,811.63
PC rental 34Mbit/s link local end
£/le
3,635.04
Edge Ethernet ports (q)
%
£9m
65.40
Core/Metro connectivity (q)
%
£63m
732.38
MSAN-METRO Connectivity Link (q)
%
£7m
457.24
Access Cards (other services) (q)
%
£28m
SG & A partial private circuits (q)
%
£32m
Fully Allocated Costs (£)
£
Partial and Private Circuits
34/45Mbit/s - local end
Partial and Private Circuits
34/45Mbit/s - distribution
Partial and Private Circuits
34/45Mbit/s - link
Restated on basis of 2011/12 methodologies
Partial and Private Circuits
34/45Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 8Mbit/s
up to and including 45Mbit/s)
£
275.01
1,315.52
6,811.48
3,590.16
970.32
98.02
6,909.50
162.42
26.59
159.13
2,732.96 301.60 4,719.61
Page 55
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.4.1 - Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s) calculation of FAC based on component costs and usage factors (continued)
£
£
Components
Unit (d)
PC rental 34Mbit/s link per km distribution
£/km
(1.96)
PC rental 34Mbit/s link
£/link
(68.71)
2Mbit/s and above PC link connection cct provision
£/circuit
PC rental 34Mbit/s link local end
£/le
Edge Ethernet ports (q)
%
£0m
(65.39)
Core/Metro connectivity (q)
%
(£63m)
(732.38)
MSAN-METRO Connectivity Link (q)
%
(£7m)
(456.98)
Access Cards (other services) (q)
%
(£3m)
SG & A partial private circuits (q)
%
(£1m)
Fully Allocated Costs (£)
£
Partial and Private Circuits
34/45Mbit/s - local end
Partial and Private Circuits
34/45Mbit/s - distribution
Partial and Private Circuits
34/45Mbit/s - link
Effect of changes on results
Partial and Private Circuits
34/45Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 8Mbit/s
up to and including 45Mbit/s)
£
(1.97)
(68.71)
(1,401.97) (1,401.96)
(81.55)
(81.56)
(838.78)
(3.42)
(5.67)
(1,405.38) (1,329.13)
(0.93)
(5.55)
(2.90) (925.89)
Page 56
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.4.1 - Illustrative for TISBO (above 8Mbit/s up to and including 45Mbit/s) calculation of FAC based on component costs and usage factors (continued)
%
%
%
Components
Unit (d)
PC rental 34Mbit/s link per km distribution
£/km
-1%
PC rental 34Mbit/s link
£/link
-5%
2Mbit/s and above PC link connection cct provision
£/circuit
PC rental 34Mbit/s link local end
£/le
Edge Ethernet ports (q)
%
0%
-100%
Core/Metro connectivity (q)
%
-100%
-100%
MSAN-METRO Connectivity Link (q)
%
-100%
-100%
Access Cards (other services) (q)
%
-11%
SG & A partial private circuits (q)
%
-3%
Fully Allocated Costs %
-21%
Partial and Private Circuits
34/45Mbit/s - local end
Partial and Private Circuits
34/45Mbit/s - distribution
Partial and Private Circuits
34/45Mbit/s - link
Effect of changes on results as a percentage
Partial and Private Circuits
34/45Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 8Mbit/s
up to and including 45Mbit/s)
%
-1%
-5%
-21%
-2%
-2%
-86%
-3%
-3%
-3%
-3%
-20%
-49%
-1%
-20%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 57
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.5 – Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
Internal Partial and Private Circuits 140/155Mbit/s - connections
External Partial and Private Circuits 140/155Mbit/s - connections
5,517.87
5,517.87
6,923.74
6,923.74
(1,405.87)
(1,405.87)
-20.3%
-20.3%
Partial and Private Circuits 140/155Mbit/s - link
Main link fixed charge per year
Enhanced maintenance fixed charge per year
Total Internal
6,290.61
11,839.33
(5,548.72)
-46.9%
Main link fixed charge per year
Enhanced maintenance fixed charge per year
Total External
6,290.61
11,839.33
(5,548.72)
-46.9%
Partial and Private Circuits 140/155Mbit/s - distribution
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total Internal
543.50
542.13
1.37
0.3%
Terminating segment charge per year
Enhanced maintenance per kilometre charge per year
Total External
543.50
542.13
1.37
0.3%
Partial and Private Circuits 140/155Mbit/s - local end
Local end fixed charge per year
Enhanced maintenance fixed charge per year
Total Internal
6,538.84
6,625.40
(86.56)
-1.3%
Local end fixed charge per year
Enhanced maintenance fixed charge per year
Total External
6,538.84
6,625.40
(86.56)
-1.3%
Page 58
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.5.1 – Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s) calculation of FAC based on component costs and usage factors
£
Components
Unit (d)
PC rental 140Mbit/s link per km distribution
£/km
520.20
PC rental 140Mbit/s link
£/link
5,803.25
2Mbit/s and above PC link connection cct provision
£/circuit
5,409.66
PC rental 140Mbit/s link local end
£/le
5,989.94
Edge Ethernet ports (q)
%
Core/Metro connectivity (q)
%
-
MSAN-METRO Connectivity Link (q)
%
£0m
Access Cards (other services) (q)
%
£25m
SG & A partial private circuits (q)
%
£31m
Fully Allocated Costs (£)
£
Partial and Private Circuits
140/155Mbit/s - local end
Partial and Private Circuits
140/155Mbit/s - distribution
Partial and Private Circuits
140/155Mbit/s - link
As reported for the year ended 31 March 2013
Partial and Private Circuits
140/155Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 45Mbit/s
up to and including 155Mbit/s)
£
£
520.70
5,816.00
5,410.87
5,861.94
£9m
0.04
1.05
131.54
107.00
5,517.87
473.52
22.80
545.36
6,290.61 543.50 6,538.84
Page 59
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.5.1 - Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s) calculation of FAC based on component costs and usage factors (continued)
£
£
Components
Unit (d)
PC rental 140Mbit/s link per km distribution
£/km
518.01
PC rental 140Mbit/s link
£/link
6,168.16
2Mbit/s and above PC link connection cct provision
£/circuit
6,811.63
PC rental 140Mbit/s link local end
£/le
6,188.34
Edge Ethernet ports (q)
%
£9m
269.30
Core/Metro connectivity (q)
%
£63m
3,015.67
MSAN-METRO Connectivity Link (q)
%
£7m
1,882.75
Access Cards (other services) (q)
%
£28m
SG & A partial private circuits (q)
%
£32m
Fully Allocated Costs (£)
Partial and Private Circuits
140/155Mbit/s - local end
Partial and Private Circuits
140/155Mbit/s - distribution
Partial and Private Circuits
140/155Mbit/s - link
Restated on basis of 2011/12 methodologies
Partial and Private Circuits
140/155Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 45Mbit/s
up to and including 155Mbit/s)
£
£
518.51
6,180.98
6,812.87
6,060.33
110.87
490.63
23.62
565.07
6,923.74 11,839.33 542.13 6,625.40
Page 60
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.5.1 - Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s) calculation of FAC based on component costs and usage factors (continued)
£
£
Components
Unit (d)
PC rental 140Mbit/s link per km distribution
£/km
2.19
PC rental 140Mbit/s link
£/link
(364.91)
2Mbit/s and above PC link connection cct provision
£/circuit
PC rental 140Mbit/s link local end
£/le
Edge Ethernet ports (q)
%
£0m
(269.26)
Core/Metro connectivity (q)
%
(£63m)
(3,015.67)
MSAN-METRO Connectivity Link (q)
%
(£7m)
(1,881.70)
Access Cards (other services) (q)
%
(£3m)
SG & A partial private circuits (q)
%
(£1m)
Fully Allocated Costs (£)
Partial and Private Circuits
140/155Mbit/s - local end
Partial and Private Circuits
140/155Mbit/s - distribution
Partial and Private Circuits
140/155Mbit/s - link
Effect of changes on results
Partial and Private Circuits
140/155Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 45Mbit/s
up to and including 155Mbit/s)
£
£
2.19
(364.98)
(1,401.97) (1,402.00)
(198.40)
(198.39)
131.54
(3.87)
(17.11)
(0.82)
(19.71)
(1,405.87) (5,548.72)
1.37
(86.56)
Page 61
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.5.1 - Illustrative for TISBO (above 45Mbit/s up to and including 155Mbit/s) calculation of FAC based on component costs and usage factors (continued)
%
%
%
Components
Unit (d)
PC rental 140Mbit/s link per km distribution
£/km
0%
PC rental 140Mbit/s link
£/link
-6%
2Mbit/s and above PC link connection cct provision
£/circuit
PC rental 140Mbit/s link local end
£/le
Edge Ethernet ports (q)
%
0%
-100%
Core/Metro connectivity (q)
%
-100%
-100%
MSAN-METRO Connectivity Link (q)
%
-100%
-100%
Access Cards (other services) (q)
%
-11%
SG & A partial private circuits (q)
%
-3%
Fully Allocated Costs %
-21%
Partial and Private Circuits
140/155Mbit/s - local end
Partial and Private Circuits
140/155Mbit/s - distribution
Partial and Private Circuits
140/155Mbit/s - link
Effect of changes on results as a percentage
Partial and Private Circuits
140/155Mbit/s - connections
Average cost per unit
Traditional interface symmetric
broadband origination (above 45Mbit/s
up to and including 155Mbit/s)
%
0%
-6%
-21%
-3%
-3%
100%
-3%
-3%
-3%
-3%
-20%
-47%
0%
-1%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 62
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.6 – Illustrative for AISBO (up to and including 1Gbit/s)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
Wholesale extension services 10Mbit/s rentals - Internal
Wholesale extension services 10Mbit/s rentals - External
1,623.34
1,623.34
1,767.69
1,767.69
(144.35)
(144.35)
-8.2%
-8.2%
Wholesale extension services 100Mbit/s rentals - Internal
Wholesale extension services 100Mbit/s rentals - External
1,708.91
1,708.91
1,861.36
1,861.36
(152.45)
(152.45)
-8.2%
-8.2%
Wholesale extension services 1000Mbit/s rentals - Internal
Wholesale extension services 1000Mbit/s rentals - External
3,017.69
3,017.69
3,258.06
3,258.06
(240.37)
(240.37)
-7.4%
-7.4%
Wholesale extension services other bandwidth rentals - Internal
Wholesale extension services other bandwidth rentals - External
1,165.07
1,293.16
1,279.12
1,415.01
(114.05)
(121.85)
-8.9%
-8.6%
Backhaul extension services 1000Mbit/s rentals - External
2,923.44
3,159.50
(236.06)
-7.5%
Backhaul extension services other bandwidth rentals - External
1,904.99
2,070.50
(165.51)
-8.0%
EAD Local Access 10Mbit/s rentals - Internal
EAD Local Access 10Mbit/s rentals - External
1,840.31
1,838.89
1,910.89
1,909.43
(70.58)
(70.54)
-3.7%
-3.7%
EAD Local Access 100Mbit/s rentals - Internal
EAD Local Access 100Mbit/s rentals - External
1,893.20
1,892.48
1,968.16
1,967.42
(74.96)
(74.94)
-3.8%
-3.8%
EAD Local Access 1000Mbit/s rentals - Internal
EAD Local Access 1000Mbit/s rentals - External
2,589.88
2,587.21
2,719.10
2,716.36
(129.22)
(129.15)
-4.8%
-4.8%
Page 63
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.6 – Illustrative for AISBO (up to and including 1Gbit/s)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
EAD Other 10Mbit/s rentals - Internal
EAD Other 10Mbit/s rentals - External
2,999.39
3,024.88
3,297.26
3,322.72
(297.87)
(297.84)
-9.0%
-9.0%
EAD Other 100Mbit/s rentals - Internal
EAD Other 100Mbit/s rentals - External
3,123.86
3,166.26
3,427.05
3,469.40
(303.19)
(303.14)
-8.8%
-8.7%
EAD Other 1000Mbit/s rentals - Internal
EAD Other 1000Mbit/s rentals - External
4,725.63
4,747.10
5,090.29
5,111.65
(364.66)
(364.55)
-7.2%
-7.1%
EAD Local Access 10Mbit/s connections - Internal
EAD Local Access 10Mbit/s connections - External
948.42
947.73
1,265.19
1,264.47
(316.77)
(316.74)
-25.0%
-25.0%
EAD Local Access 100Mbit/s connections - Internal
EAD Local Access 100Mbit/s connections - External
957.93
957.49
1,274.98
1,274.53
(317.05)
(317.04)
-24.9%
-24.9%
EAD Local Access 1000Mbit/s connections - Internal
EAD Local Access 1000Mbit/s connections - External
955.66
963.52
1,272.64
1,280.74
(316.98)
(317.22)
-24.9%
-24.8%
EAD Other 10Mbit/s connections - Internal
EAD Other 10Mbit/s connections - External
947.45
946.80
1,264.19
1,263.52
(316.74)
(316.72)
-25.1%
-25.1%
EAD Other 100Mbit/s connections - Internal
EAD Other 100Mbit/s connections - External
957.36
957.33
1,274.40
1,274.36
(317.04)
(317.03)
-24.9%
-24.9%
EAD Other 1000Mbit/s connections - Internal
EAD Other 1000Mbit/s connections - External
971.26
983.64
1,288.72
1,301.48
(317.46)
(317.84)
-24.6%
-24.4%
5,006.67
962.76
5,121.27
1,279.53
(114.60)
(316.77)
-2.2%
-24.8%
138.76
138.76
156.04
156.04
(17.28)
(17.28)
-11.1%
-11.1%
Ethernet Backhaul Direct rentals - External
Ethernet Backhaul Direct connections - External
Main link rental charges - Internal
Main link rental charges - External
Page 64
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.6.1 – Illustrative for AISBO (up to and including 1Gbit/s) calculation of FAC based on component costs and usage factors
Wholesale & LAN extension services fibre etc
£/le
Wholesale & LAN extension services BNS
£/circuit
Backhaul extension services fibre etc
£/le
1,094.43
Ethernet Electronics
£/le
527.23
Ethernet main links
£/le
113.98
21CN Backhaul Link & Length
£/le
7,423.01
Access Cards (other services) (q)
%
£25m
5.62
56.25
562.48
562.48
263.52
5.62
5.62
56.25
56.25
562.48
562.48
5.62
5.62
56.25
56.25
562.48
562.48
Service Centres - Assurance (q)
%
£29m
10.10
10.10
10.10
10.10
10.10
20.20
20.20
20.20
20.20
20.20
20.20
20.20
20.20
20.20
20.20
20.20
20.20
Sales product management (q)
%
£17m
14.01
18.54
44.63
7.60
3.30
12.80
12.06
13.98
13.60
31.22
29.83
20.12
19.65
24.01
23.27
56.85
54.95
Service Centres - Provision (q)
£/le
£112m
Fully Allocated Costs (£)
2,564.33 1,124.82 1,100.47 1,201.02
986.89
986.21
987.97
987.63 1,003.85 1,002.57 2,138.65 2,164.61 2,208.60 2,251.74 3,113.97 3,137.34
814.80
814.80
814.80
814.80
£
£
£
£
£
£
£
199.30
199.30
199.30
199.30
199.30
199.30
199.30
199.30
199.30
199.30
199.30
199.30
6.72
6.39
11.28
11.07
10.19
13.96
6.26
5.94
11.01
10.99
17.67
23.61
£
£
97.34
Main link rental charges
£
Ethernet Backhaul Direct
connections - External
£
Ethernet Backhaul Direct
rentals - External
£
Ethernet Access Direct
1000Mbit/s connections External
£
Ethernet Access Direct
1000Mbit/s connections Internal
£
Ethernet Access Direct
100Mbit/s connections External
£
Ethernet Access Direct
100Mbit/s connections Internal
£
Ethernet Access Direct
10Mbit/s connections External
£
Ethernet Access Direct
10Mbit/s connections Internal
£
EAD LA 1000 External
Connections
£
EAD LA 1000 Internal
Connections
£
EAD LA 100 External
Connections
£
EAD LA 100 Internal
Connections
£
Unit (d)
EAD LA 10 External
Connections
£
Components
EAD LA 10 Internal
Connections
Ethernet Access Direct
100Mbit/s rentals - Internal
£
Ethernet Access Direct
1000Mbit/s rentals External
Ethernet Access Direct
10Mbit/s rentals - External
£
Ethernet Access Direct
1000Mbit/s rentals Internal
Ethernet Access Direct
10Mbit/s rentals - Internal
£
Ethernet Access Direct
100Mbit/s rentals External
EAD LA 1000 External
Rentals
99.65
EAD LA 1000 Internal
Rentals
99.65
EAD LA 100 External
Rentals
£
EAD LA 100 Internal
Rentals
£
EAD LA 10 External
Rentals
£
EAD LA 10 Internal
Rentals
Backhaul extension
services other bandwidth
rental - External
£
Backhaul extension
services 1000Mbit/s
rentals - External
£
Wholesale extension
services 1000Mbit/s
rentals
Wholesale extension
services 100Mbit/s rentals
As reported for the year ended 31 March 2013
Wholesale extension
services 10Mbit/s rentals
Average cost per unit
Alternative interface symmetric broadband origination (up to and including 1Gbit/s)
£
199.30 24.06
1,078.60 1,062.56
468.79
523.55 1,199.46 1,165.01
465.86
972.13
972.13
814.80
814.80
814.80
814.80
972.13
972.13
113.97
4,872.62
1,623.34 1,708.91 3,017.69 2,923.44 1,904.99 1,840.31 1,838.89 1,893.20 1,892.48 2,589.88 2,587.21 2,999.39 3,024.88 3,123.86 3,166.26 4,725.63 4,747.10
Page 65
21.08
20.20
7.30
6.94
12.25
12.02
11.07
15.16
6.79
6.46
11.95
11.94
19.19
25.63
735.10
735.10
735.10
735.10
735.10
735.10
735.10
735.10
735.10
735.10
735.10
735.10
16.51
735.10
7.28
0.73
948.42
947.73
957.93
957.49
955.66
963.52
947.45
946.80
957.36
957.33
971.26
983.64 5,006.67
962.76 138.76
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.6.1 - Illustrative for AISBO (up to and including 1Gbit/s) calculation of FAC based on component costs and usage factors (continued)
Wholesale & LAN extension services fibre etc
£/le
3,013.04 1,232.98 1,208.63 1,309.13
Wholesale & LAN extension services BNS
£/circuit
1,025.54
Backhaul extension services fibre etc
£/le
1,093.21
Ethernet Electronics
£/le
559.55
Ethernet main links
£/le
104.82
21CN Backhaul Link & Length
£/le
7,474.98
Access Cards (other services) (q)
%
£28m
6.10
61.04
610.45
Service Centres - Assurance (q)
%
£37m
14.98
14.98
Sales product management (q)
%
£18m
14.82
19.62
Service Centres - Provision (q)
£/le
£118m
Fully Allocated Costs (£)
209.01
209.01
994.29
993.61
995.37
995.03 1,011.25 1,009.97 2,372.91 2,398.87 2,443.65 2,486.78 3,355.32 3,378.69
495.69
866.99
866.99
866.99
866.99 1,034.40 1,034.40
610.45
285.99
6.10
6.10
61.04
61.04
610.45
14.98
14.98
14.98
29.97
29.97
29.97
29.97
47.22
8.05
3.49
13.54
12.76
14.79
14.39
£
£
£
£
£
£
£
418.01
418.01
418.01
418.01
418.01
418.01
418.01
418.01
418.01
418.01
418.01
418.01
6.72
6.39
11.28
11.07
10.19
13.96
6.26
5.94
11.01
10.99
17.67
23.61
£
£
316.05
418.01
4,757.78
21.08
Main link rental charges
£
Ethernet Backhaul Direct
connections - External
£
Ethernet Backhaul Direct
rentals - External
£
Ethernet Access Direct
1000Mbit/s connections External
£
Ethernet Access Direct
1000Mbit/s connections Internal
£
Ethernet Access Direct
100Mbit/s connections External
£
Ethernet Access Direct
100Mbit/s connections Internal
£
Ethernet Access Direct
10Mbit/s connections External
£
Ethernet Access Direct
10Mbit/s connections Internal
£
EAD LA 1000 External
Connections
£
EAD LA 1000 Internal
Connections
£
EAD LA 100 External
Connections
£
EAD LA 100 Internal
Connections
Ethernet Access Direct
100Mbit/s rentals - Internal
£
EAD LA 10 External
Connections
Ethernet Access Direct
10Mbit/s rentals - External
£
EAD LA 10 Internal
Connections
Ethernet Access Direct
10Mbit/s rentals - Internal
£
Ethernet Access Direct
1000Mbit/s rentals External
EAD LA 1000 External
Rentals
£
Ethernet Access Direct
1000Mbit/s rentals Internal
EAD LA 1000 Internal
Rentals
£
Ethernet Access Direct
100Mbit/s rentals External
EAD LA 100 External
Rentals
£
EAD LA 100 Internal
Rentals
£
Unit (d)
EAD LA 10 External
Rentals
£
Components
EAD LA 10 Internal
Rentals
Backhaul extension
services other bandwidth
rental - External
£
Backhaul extension
services 1000Mbit/s
rentals - External
£
Wholesale extension
services 1000Mbit/s
rentals
Wholesale extension
services 100Mbit/s rentals
Restated on basis of 2011/12 methodologies
Wholesale extension
services 10Mbit/s rentals
Average cost per unit
Alternative interface symmetric broadband origination (up to and including 1Gbit/s)
£
50.47
1,077.38 1,061.34
498.81
557.09 1,276.28 1,239.63
866.99
866.99
866.99
866.99 1,034.40 1,034.40
610.45
6.10
6.10
61.04
61.04
610.45
610.45
29.97
29.97
29.97
29.97
29.97
29.97
29.97
29.97
33.03
31.57
21.29
20.79
25.40
24.62
60.15
58.14
104.80
29.97
7.73
7.34
12.96
12.72
11.71
16.04
7.19
6.84
12.65
12.63
20.31
27.13
832.73
832.73
832.73
832.73
832.73
832.73
832.73
832.73
832.73
832.73
832.73
832.73
17.47
7.71
0.77
832.73
1,767.69 1,861.36 3,258.06 3,159.50 2,070.50 1,910.89 1,909.43 1,968.16 1,967.42 2,719.10 2,716.36 3,297.26 3,322.72 3,427.05 3,469.40 5,090.29 5,111.65 1,265.19 1,264.47 1,274.98 1,274.53 1,272.64 1,280.74 1,264.19 1,263.52 1,274.40 1,274.36 1,288.72 1,301.48 5,121.27 1,279.53 156.04
Page 66
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.6.1 - Illustrative for AISBO (up to and including 1Gbit/s) calculation of FAC based on component costs and usage factors (continued)
(52.19)
(52.19)
(62.27)
1.22
£/le
(32.32)
Ethernet main links
£/le
9.16
21CN Backhaul Link & Length
£/le
(51.97)
Access Cards (other services) (q)
%
(£3m)
(0.48)
(4.79)
(47.97)
(47.97)
(22.47)
(0.48)
(0.48)
(4.79)
(4.79)
(47.97)
(47.97)
(0.48)
(0.48)
(4.79)
(4.79)
(47.97)
(47.97)
Service Centres - Assurance (q)
%
(£8m)
(4.88)
(4.88)
(4.88)
(4.88)
(4.88)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
(9.77)
Sales product management (q)
%
(£1m)
(0.81)
(1.08)
(2.59)
(0.45)
(0.19)
(0.74)
(0.70)
(0.81)
(0.79)
(1.81)
(1.74)
(1.17)
(1.14)
(1.39)
(1.35)
(3.30)
(3.19)
Service Centres - Provision (q)
£/le
(£6m)
Fully Allocated Costs (£)
£
£
£
£
£
£
£
£
£
Main link rental charges
(52.19)
£/le
Ethernet Electronics
£
Ethernet Backhaul Direct
connections - External
(52.19)
Backhaul extension services fibre etc
(448.71) (108.16) (108.16) (108.11) (109.36) (109.36)
£
Ethernet Backhaul Direct
rentals - External
(7.40) (234.26) (234.26) (235.05) (235.04) (241.35) (241.35) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (218.71) (26.41)
£/circuit
£
Ethernet Access Direct
1000Mbit/s connections External
(7.40)
£/le
Wholesale & LAN extension services BNS
£
Ethernet Access Direct
1000Mbit/s connections Internal
(7.40)
Wholesale & LAN extension services fibre etc
£
Ethernet Access Direct
100Mbit/s connections External
(7.40)
£
Ethernet Access Direct
100Mbit/s connections Internal
(7.40)
£
Ethernet Access Direct
10Mbit/s connections External
(7.40)
£
Ethernet Access Direct
10Mbit/s connections Internal
£
EAD LA 1000 External
Connections
£
EAD LA 1000 Internal
Connections
£
EAD LA 100 External
Connections
£
EAD LA 100 Internal
Connections
Ethernet Access Direct
100Mbit/s rentals - Internal
£
Unit (d)
EAD LA 10 External
Connections
Ethernet Access Direct
10Mbit/s rentals - External
£
Components
EAD LA 10 Internal
Connections
Ethernet Access Direct
10Mbit/s rentals - Internal
£
Ethernet Access Direct
1000Mbit/s rentals External
EAD LA 1000 External
Rentals
£
Ethernet Access Direct
1000Mbit/s rentals Internal
EAD LA 1000 Internal
Rentals
£
Ethernet Access Direct
100Mbit/s rentals External
EAD LA 100 External
Rentals
£
EAD LA 100 Internal
Rentals
£
EAD LA 10 External
Rentals
£
EAD LA 10 Internal
Rentals
Backhaul extension
services other bandwidth
rental - External
£
Backhaul extension
services 1000Mbit/s
rentals - External
£
Wholesale extension
services 1000Mbit/s
rentals
Wholesale extension
services 100Mbit/s rentals
Effect of changes on results
Wholesale extension
services 10Mbit/s rentals
Average cost per unit
Alternative interface symmetric broadband origination (up to and including 1Gbit/s)
£
(1,025.54)
(30.02)
(33.54)
(76.82)
1.22
1.22
(74.62)
(29.83)
(62.27)
(52.19)
(52.19)
(52.19)
(52.19)
(62.27)
(62.27)
9.17
114.84
(144.35) (152.45) (240.37) (236.06) (165.51)
(70.58)
(70.54)
(74.96)
(9.77)
(0.43)
(0.40)
(0.71)
(0.70)
(0.64)
(0.88)
(0.40)
(0.38)
(0.70)
(0.69)
(1.12)
(1.50)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(97.63)
(0.96)
(0.43)
(0.04)
(97.63)
(74.94) (129.22) (129.15) (297.87) (297.84) (303.19) (303.14) (364.66) (364.55) (316.77) (316.74) (317.05) (317.04) (316.98) (317.22) (316.74) (316.72) (317.04) (317.03) (317.46) (317.84) (114.60) (316.77) (17.28)
Page 67
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.6.1 - Illustrative for AISBO (up to and including 1Gbit/s) calculation of FAC based on component costs and usage factors (continued)
Service Centres - Assurance (q)
Sales product management (q)
Service Centres - Provision (q)
Fully Allocated Costs %
Ethernet Access Direct
10Mbit/s rentals - Internal
Ethernet Access Direct
10Mbit/s rentals - External
Ethernet Access Direct
100Mbit/s rentals - Internal
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
-69%
-52%
-52%
2%
0%
-1%
-1%
-1%
-1%
-1%
-1%
-10%
-10%
-10%
-9%
-7%
-7%
-52%
-52%
-52%
-52%
-52%
-52%
-52%
-52%
-52%
-52%
-52%
-52%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Main link rental charges
EAD LA 1000 External
Rentals
Ethernet Access Direct
1000Mbit/s rentals External
EAD LA 1000 Internal
Rentals
Ethernet Access Direct
1000Mbit/s rentals Internal
EAD LA 100 External
Rentals
%
Ethernet Access Direct
100Mbit/s rentals External
EAD LA 100 Internal
Rentals
Backhaul extension
services other bandwidth
rental - External
EAD LA 10 External
Rentals
Backhaul extension
services 1000Mbit/s
rentals - External
EAD LA 10 Internal
Rentals
Wholesale extension
services 1000Mbit/s
rentals
%
Ethernet Backhaul Direct
connections - External
%
%
Ethernet Backhaul Direct
rentals - External
£/le
Access Cards (other services) (q)
0%
%
Ethernet Access Direct
1000Mbit/s connections External
21CN Backhaul Link & Length
-52%
0%
%
Ethernet Access Direct
1000Mbit/s connections Internal
9%
-52%
%
Ethernet Access Direct
100Mbit/s connections External
-6%
£/le
-8%
%
Ethernet Access Direct
100Mbit/s connections Internal
£/le
Ethernet main links
-9%
%
Ethernet Access Direct
10Mbit/s connections External
Ethernet Electronics
-9%
%
Ethernet Access Direct
10Mbit/s connections Internal
0%
-15%
%
EAD LA 1000 External
Connections
£/le
%
EAD LA 1000 Internal
Connections
£/circuit
Backhaul extension services fibre etc
%
EAD LA 100 External
Connections
£/le
Wholesale & LAN extension services BNS
%
EAD LA 100 Internal
Connections
Wholesale & LAN extension services fibre etc
%
EAD LA 10 External
Connections
Unit (d)
EAD LA 10 Internal
Connections
Components
Wholesale extension
services 100Mbit/s rentals
Effect of changes on results as a percentage
Wholesale extension
services 10Mbit/s rentals
Average cost per unit
Alternative interface symmetric broadband origination (up to and including 1Gbit/s)
-100%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-6%
-11%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
-8%
%
-22%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
-33%
%
-6%
-5%
-6%
-5%
-6%
-5%
-5%
-5%
-5%
-5%
-5%
-6%
-5%
-5%
-5%
-5%
-5%
-5%
£/le
-5%
9%
-1%
-8%
-8%
-7%
-7%
-8%
-4%
-4%
-4%
-4%
-5%
-5%
-9%
-9%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 68
-9%
-9%
-7%
-7%
-33%
-6%
-5%
-5%
-6%
-5%
-5%
-6%
-6%
-6%
-5%
-6%
-6%
-12%
-12%
-12%
-12%
-12%
-12%
-12%
-12%
-12%
-12%
-12%
-12%
-25%
-25%
-25%
-25%
-25%
-25%
-25%
-25%
-25%
-25%
-25%
-24%
-5%
-6%
-5%
-12%
-2%
-25%
-11%
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.7 – Illustrative for Wholesale Local Access (WLA)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
MPF New Provides
36.23
35.95
0.28
0.8%
MPF Single Migrations
30.74
30.96
(0.22)
-0.7%
MPF Bulk Migrations
21.78
21.56
0.22
1.0%
MPF Ceases
20.26
22.65
(2.39)
-10.6%
MPF Rentals
109.88
102.57
7.31
7.1%
16,157.35
14,748.98
1,408.37
9.5%
7,756.23
7,767.49
(11.26)
-0.1%
Tie Cables
44.05
44.89
(0.84)
-1.9%
SMPF New Provides
26.38
26.27
0.11
0.4%
SMPF Single Migrations
30.21
30.40
(0.19)
-0.6%
SMPF Bulk Migrations
21.71
21.51
0.20
0.9%
SMPF Ceases
20.30
22.70
(2.40)
-10.6%
SMPF Rentals
8.37
6.99
1.38
19.7%
Co-mingling New Provides
Co-mingling Rentals
Page 69
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.7.1 –Illustrative for Wholesale Local Access (WLA) calculation of FAC based on component costs and usage factors
£
£
£
£
£
£
£
£
£
£
£
SMPF Rentals
SMPF Ceases
SMPF Bulk Migrations
SMPF Single Migrations
SMPF New Provides
Tie Cables
Co-mingling Rentals
Co-mingling New Provides
MPF Rentals
MPF Ceases
MPF Bulk Migrations
MPF Single Migrations
As reported for the year ended 31 March 2013
MPF New Provides
Average cost per unit
Wholesale local access
£
£
Components
Unit (d)
Routeing & records
£/line
4.50
MDF Hardware jumpering
£/line
17.13
E side copper capital
£/line
9.36
E side copper current
£/line
1.82
2.49
D side copper capital
£/line
51.38
51.35
D side copper current
£/line
7.01
9.60
1.77
Local exchanges general frames capital
£/line
1.80
3.61
1.81
Local exchanges general frames current
£/line
0.86
2.21
0.74
PSTN line test equipment
£/line
0.20
0.20
Dropwire capital & PSTN NTE
£/line
15.10
15.09
Residential PSTN drop maintenance
£/line
3.66
5.01
Broadband line testing systems
£/line
2.50
8.12
Local Loop Unbundling room build
£/room
Local Loop Unbundling hostel rentals
£/hostel rental
2,859.57
2,859.49
Local Loop Unbundling hostel rentals power & vent
£/hostel rental
4,884.75
4,884.62
Local Loop Unbundling tie cables
£/cable
Service Centres - Assurance (q)
%
£29m
Sales product management (q)
%
£17m
0.25
0.17
0.16
0.13
0.18
20.55
Service Centres - Provision (q)
%
£112m
5.55
4.44
4.23
1.70
0.41
1.71
Local Loop Unbundling systems development (q)
%
£32m
1.33
1.32
1.32
1.32
1.32
1.32
DSLAM capital/maintenance (q)
%
£195m
Fully Allocated Costs (£)
4.50
24.60 24.81 16.07 17.11
20.45 24.33 16.07 17.19
9.35
16,133.42
0.46
1.15
16,133.77
39.91
39.91
0.94
0.94
0.95
9.86
0.14
0.13
0.12
0.11
0.09
0.05
1.72
4.47
4.44
4.21
1.70
0.01
1.33
1.33
1.32
1.32
1.32
1.33
1.32
0.19
0.86
36.23 30.74 21.78 20.26 109.88 16,157.35 7,756.23 44.05 26.38 30.21 21.71 20.30
Page 70
8.37
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.7.1 – Illustrative for Wholesale Local Access (WLA) calculation of FAC based on component costs and usage factors (continued)
£
£
£
£
£
£
£
£
£
£
£
SMPF Rentals
SMPF Ceases
SMPF Bulk Migrations
SMPF Single Migrations
SMPF New Provides
Tie Cables
Co-mingling Rentals
Co-mingling New Provides
MPF Rentals
MPF Ceases
MPF Bulk Migrations
MPF Single Migrations
Restated on basis of 2011/12 methodologies
MPF New Provides
Average cost per unit
Wholesale local access
£
£
Components
Unit (d)
Routeing & records
£/line
5.08
MDF Hardware jumpering
£/line
18.41
E side copper capital
£/line
8.83
E side copper current
£/line
2.02
2.76
D side copper capital
£/line
46.86
46.83
D side copper current
£/line
6.83
9.35
1.72
Local exchanges general frames capital
£/line
1.08
2.15
1.08
Local exchanges general frames current
£/line
1.00
1.99
1.00
PSTN line test equipment
£/line
0.18
0.18
Dropwire capital & PSTN NTE
£/line
16.77
16.76
Residential PSTN drop maintenance
£/line
4.52
4.51
Broadband line testing systems
£/line
2.24
7.00
Local Loop Unbundling room build
£/room
Local Loop Unbundling hostel rentals
£/hostel rental
2,578.43
2,578.36
Local Loop Unbundling hostel rentals power & vent
£/hostel rental
5,176.83
5,176.69
Local Loop Unbundling tie cables
£/cable
Service Centres - Assurance (q)
%
£37m
Sales product management (q)
%
£18m
0.26
0.18
0.17
0.14
Service Centres - Provision (q)
%
£118m
3.75
3.71
3.71
3.71
Local Loop Unbundling systems development (q)
%
£10m
0.42
0.41
0.41
0.41
DSLAM capital/maintenance (q)
%
£199m
Fully Allocated Costs (£)
5.08
26.44 26.66 17.27 18.39
21.98 26.15 17.27 18.48
8.82
14,722.80
0.51
0.99
14,723.09
38.98
38.98
1.60
0.20
21.74
1.60
1.60
10.43
0.15
0.13
0.13
0.12
0.10
3.74
3.74
3.71
3.71
3.71
0.42
0.42
0.41
0.41
0.41
3.73
0.42
0.42
0.41
0.31
0.05
0.42
0.91
35.95 30.96 21.56 22.65 102.57 14,748.98 7,767.49 44.89 26.27 30.40 21.51 22.70
Page 71
6.99
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.7.1 – Illustrative for Wholesale Local Access (WLA) calculation of FAC based on component costs and usage factors (continued)
£
£
£
£
£
£
£
£
£
£
£
SMPF Rentals
SMPF Ceases
SMPF Bulk Migrations
SMPF Single Migrations
SMPF New Provides
Tie Cables
Co-mingling Rentals
Co-mingling New Provides
MPF Rentals
MPF Ceases
MPF Bulk Migrations
MPF Single Migrations
Effect of changes on results
MPF New Provides
Average cost per unit
Wholesale local access
£
£
Components
Unit (d)
Routeing & records
£/line
(0.58) (0.58)
MDF Hardware jumpering
£/line
(1.28) (1.84) (1.85) (1.20) (1.28)
E side copper capital
£/line
0.53
0.53
E side copper current
£/line
(0.20)
(0.27)
D side copper capital
£/line
4.52
4.52
D side copper current
£/line
0.18
0.25
Local exchanges general frames capital
£/line
0.72
1.46
0.73
Local exchanges general frames current
£/line
(0.14)
0.22
(0.26)
PSTN line test equipment
£/line
0.02
0.02
Dropwire capital & PSTN NTE
£/line
(1.67)
(1.67)
Residential PSTN drop maintenance
£/line
(0.86)
0.50
Broadband line testing systems
£/line
0.26
1.12
Local Loop Unbundling room build
£/room
Local Loop Unbundling hostel rentals
£/hostel rental
281.14
281.13
Local Loop Unbundling hostel rentals power & vent
£/hostel rental
(292.08)
(292.07)
Local Loop Unbundling tie cables
£/cable
Service Centres - Assurance (q)
%
(£8m)
(0.66)
Sales product management (q)
%
(£1m) (0.01) (0.01) (0.01) (0.01)
(0.02)
(1.19)
Service Centres - Provision (q)
%
(£6m)
1.80
0.73
0.52 (2.01)
0.41
(2.02)
Local Loop Unbundling systems development (q)
%
£22m
0.91
0.91
0.91
0.90
0.90
DSLAM capital/maintenance (q)
%
(£4m)
Fully Allocated Costs (£)
(1.53) (1.82) (1.20) (1.29)
1,410.62
(0.05)
0.05
0.16
1,410.68
0.93
0.93
0.91
(0.66) (0.65)
(0.12)
(0.57) (0.01)
0.91
(0.01) (0.01) (0.01)
(2.02)
0.73
0.73
0.50 (2.01)
0.91
0.91
0.91
0.91
0.91
0.01
0.91
(0.05)
0.28 (0.22)
0.22 (2.39)
7.31
Page 72
1,408.37
(11.26) (0.84)
0.11 (0.19)
0.20 (2.40)
1.38
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.7.1 – Illustrative for Wholesale Local Access (WLA) calculation of FAC based on component costs and usage factors (continued)
%
%
%
%
-7%
-7%
-7%
%
%
%
%
%
%
%
%
-7%
-7%
-7%
-7%
SMPF Rentals
SMPF Ceases
SMPF Bulk Migrations
SMPF Single Migrations
SMPF New Provides
Tie Cables
Co-mingling Rentals
Co-mingling New Provides
MPF Rentals
MPF Ceases
MPF Bulk Migrations
MPF Single Migrations
Effect of changes on results as a percentage
MPF New Provides
Average cost per unit
Wholesale local access
%
Components
Unit (d)
Routeing & records
£/line
-11%
-11%
MDF Hardware jumpering
£/line
-107%
-7%
E side copper capital
£/line
6%
6%
E side copper current
£/line
-10%
-10%
D side copper capital
£/line
10%
10%
D side copper current
£/line
3%
3%
3%
Local exchanges general frames capital
£/line
67%
68%
68%
Local exchanges general frames current
£/line
-14%
11%
-26%
PSTN line test equipment
£/line
11%
11%
Dropwire capital & PSTN NTE
£/line
-10%
-10%
Residential PSTN drop maintenance
£/line
-19%
11%
Broadband line testing systems
£/line
12%
16%
Local Loop Unbundling room build
£/room
10%
Local Loop Unbundling hostel rentals
£/hostel rental
11%
11%
Local Loop Unbundling hostel rentals power & vent
£/hostel rental
-6%
-6%
Local Loop Unbundling tie cables
£/cable
Service Centres - Assurance (q)
%
-22%
Sales product management (q)
%
-6%
-4%
-6%
-6%
-7%
Service Centres - Provision (q)
%
-5%
48%
20%
14%
-54%
Local Loop Unbundling systems development (q)
%
DSLAM capital/maintenance (q)
%
Fully Allocated Costs %
-10%
16%
10%
2%
2%
-41%
220% 217% 222% 222% 222%
-10%
-5%
-41%
-41%
-5%
-7%
0%
-8%
-8%
-10%
-54%
20%
20%
13%
-54%
-54%
214%
214%
-39%
0%
222% 217% 217% 222% 222% 222% 217%
-2%
-5%
1%
-1%
1%
-11%
7%
10%
0%
-2%
0%
-1%
1%
-11%
20%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 73
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.8 – Illustrative for Call origination on fixed public narrowband networks
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
ppm
ppm
ppm
%
Service
Internal Wholesale call originating local exchange segment PSTN and ISDN (excl OA)
External Wholesale call originating local exchange segment PSTN and ISDN (excl OA)
0.264
0.264
0.282
0.282
(0.018)
(0.018)
-6.4%
-6.4%
Internal Wholesale call originating local exchange segment (incl Operator Assistance)
External Wholesale call originating local exchange segment (incl Operator Assistance)
0.220
0.220
0.236
0.236
(0.016)
(0.016)
-6.8%
-6.8%
Internal Wholesale call originating local exchange segment (ISDN) (incl OA)
0.284
0.303
(0.019)
-6.3%
Internal Wholesale call origination local exchange Stick (PSTN & ISDN)
0.136
0.145
(0.009)
-6.2%
Internal Wholesale PPP
External Wholesale PPP
0.006
0.006
0.006
0.006
-
0.0%
0.0%
Page 74
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.8.1 – Illustrative for Call origination on fixed public narrowband networks calculation of FAC based on component costs and usage factors
ppm
ppm
ppm
ppm
Components
Unit (d)
Local exchange concentrator
ppm
0.067
0.079
0.064
0.086
Local exchange processor
ppm
0.063
0.074
0.060
0.080
Remote - local transmission link
ppm
0.039
0.037
0.031
0.040
0.030
Remote - local transmission length
ppm (per 10km)
0.023
0.040
0.034
0.043
0.032
Product management policy & planning
ppm
0.006
Emergency OA (999) non chargeable
ppm
0.021
0.021
0.021
0.021
Core/Metro (voice)
ppm
0.001
0.003
0.002
0.003
0.002
iNode (call set up and features) (q)
%
£17m
0.010
0.008
0.011
0.008
0.264
0.220
0.284
0.136
Fully Allocated Costs (ppm)
Internal and External Wholesale
PPP
Internal Wholesale call origination
local exchange Stick (PSTN & ISDN)
Internal Wholesale call originating
local exchange segment (ISDN)
(incl OA)
Internal and External Wholesale
call originating local exchange
segment (incl Operator Assistance)
As reported for the year ended 31 March 2013
Internal and External Wholesale
call originating local exchange
segment PSTN and ISDN (excl OA)
Average cost per unit
Call origination on fixed public narrowband
networks
Retail
PPP
Call Origination Basket (ad)
Sticks Basket
ppm
0.064
0.006
Page 75
0.006
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.8.1 – Illustrative for Call origination on fixed public narrowband networks calculation of FAC based on component costs and usage factors (continued)
ppm
ppm
ppm
ppm
Components
Unit (d)
Local exchange concentrator
ppm
0.074
0.087
0.071
0.094
Local exchange processor
ppm
0.070
0.082
0.067
0.089
Remote - local transmission link
ppm
0.044
0.042
0.035
0.045
0.034
Remote - local transmission length
ppm (per 10km)
0.022
0.038
0.032
0.041
0.031
Product management policy & planning
ppm
0.006
Emergency OA (999) non chargeable
ppm
0.021
0.021
0.021
0.021
Core/Metro (voice)
ppm
0.001
0.003
0.002
0.003
0.002
iNode (call set up and features) (q)
%
£16m
0.009
0.008
0.010
0.008
0.282
0.236
0.303
0.145
Fully Allocated Costs (ppm)
Internal and External Wholesale
PPP
Internal Wholesale call origination
local exchange Stick (PSTN & ISDN)
Internal Wholesale call originating
local exchange segment (ISDN)
(incl OA)
Internal and External Wholesale
call originating local exchange
segment (incl Operator Assistance)
Restated on basis of 2011/12 methodologies
Internal and External Wholesale
call originating local exchange
segment PSTN and ISDN (excl OA)
Average cost per unit
Call origination on fixed public narrowband
networks
Retail
PPP
Call Origination Basket (ad)
Sticks Basket
ppm
0.070
0.006
Page 76
0.006
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.8.1 – Illustrative for Call origination on fixed public narrowband networks calculation of FAC based on component costs and usage factors (continued)
ppm
(0.007)
(0.008)
(0.006)
(0.007)
(0.009)
(0.005)
(0.004)
(0.005)
(0.004)
0.002
0.002
0.002
0.001
Local exchange concentrator
ppm
(0.007)
(0.008)
Local exchange processor
ppm
(0.007)
(0.008)
Remote - local transmission link
ppm
(0.005)
Remote - local transmission length
ppm (per 10km)
0.001
Product management policy & planning
ppm
0.000
Emergency OA (999) non chargeable
ppm
0.000
Core/Metro (voice)
ppm
0.000
iNode (call set up and features) (q)
%
Fully Allocated Costs (ppm)
0.001
(0.018)
Internal and External Wholesale
PPP
Internal Wholesale call origination
local exchange Stick (PSTN & ISDN)
ppm
Unit (d)
ppm
Internal Wholesale call originating
local exchange segment (ISDN)
(incl OA)
ppm
Components
£1m
Internal and External Wholesale
call originating local exchange
segment (incl Operator Assistance)
Effect of changes on results
Internal and External Wholesale
call originating local exchange
segment PSTN and ISDN (excl OA)
Average cost per unit
Call origination on fixed public narrowband
networks
Retail
PPP
Call Origination Basket (ad)
Sticks Basket
ppm
0.001
(0.016)
(0.019)
(0.009)
Page 77
-
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.8.1 – Illustrative for Call origination on fixed public narrowband networks calculation of FAC based on component costs and usage factors (continued)
Call origination on fixed public narrowband
networks
Internal Wholesale call originating
local exchange segment (ISDN)
(incl OA)
%
%
%
Components
Unit (d)
Local exchange concentrator
ppm
-9%
-9%
-10%
-9%
Local exchange processor
ppm
-110%
-10%
-10%
-10%
Remote - local transmission link
ppm
-11%
-12%
-11%
-11%
-12%
Remote - local transmission length
ppm (per 10km)
5%
5%
6%
5%
3%
Product management policy & planning
ppm
0%
Emergency OA (999) non chargeable
ppm
0%
0%
0%
0%
Core/Metro (voice)
ppm
0%
0%
0%
0%
0%
iNode (call set up and features) (q)
%
6%
11%
0%
10%
0%
-6%
-7%
-6%
-6%
Fully Allocated Costs %
PPP
Basket
Internal and External Wholesale
PPP
%
Retail
Sticks
Internal Wholesale call origination
local exchange Stick (PSTN & ISDN)
%
Internal and External Wholesale
call originating local exchange
segment (incl Operator Assistance)
Effect of changes on results as a percentage
Internal and External Wholesale
call originating local exchange
segment PSTN and ISDN (excl OA)
Average cost per unit
Call Origination Basket (ad)
-9%
0%
0%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(ad) Does not include the service Wholesale Call originating local exchange segment (ISDN) (excl. Operator Assistance) due to immaterial volumes.
(q) This is the total cost not unit cost for this component.
Page 78
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.9 – Illustrative for Technical Areas (Interconnect Circuits)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
1,205.82
608.32
11.72
1,533.34
658.61
12.00
(327.52)
(50.29)
(0.28)
-21.4%
-7.6%
-2.3%
In Span Interconnect with Interconnect Extension Circuit (end to end circuit)
External Wholesale IEC connections
External Wholesale IEC rentals - fixed
External Wholesale IEC rentals - per km
537.72
351.88
11.71
696.70
383.39
11.99
(158.98)
(31.51)
(0.28)
-22.8%
-8.2%
-2.3%
In Span Interconnect
External Wholesale intra-building circuits connections
External Wholesale intra-building circuits rentals
External Wholesale ISI rentals
407.53
101.14
291.78
533.64
105.03
315.41
(126.11)
(3.89)
(23.63)
-23.6%
-3.7%
-7.5%
59.49
59.40
External Wholesale rearrangements
515.86
657.58
(141.72)
-21.6%
Internal Wholesale standard CSI rentals - fixed
507.18
553.58
(46.40)
-8.4%
11.72
12.00
(0.28)
-2.3%
101.14
105.03
(3.89)
-3.7%
Service
Customer Sited Interconnect (end to end circuit)
External Wholesale standard CSI connections
External Wholesale standard CSI rentals - fixed
External Wholesale standard CSI rentals - per km
External Nominated ISI - per km
Internal Wholesale standard CSI rentals - per km
Internal Wholesale intra-building circuits rentals
Page 79
0.09
0.2%
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.9.1 – Illustrative for Technical Areas (Interconnect Circuits) calculation of FAC based on component costs and usage factors
Interconnect local end rental 2Mbit/s
£/circuit
181.24
Interconnect 2Mbit/s connection
£/circuit
984.56
Interconnect extension circuits (IEC) 2Mbit/s link
£/circuit
196.82
Customer Sited Interconnect cct (CSI) 2Mbit/s link
£/circuit
205.23
Interconnect extension circuits (IEC) 2Mbit per km
£/km
Customer Sited Interconnect cct (CSI) 2Mbit per km
£/km
In Span Interconnect circuits (ISI) transmission
£/100m
Nominated In Span I/Connect cct (ISI) transmission
£/100m
51.97
Intra Building Circuit (IBC) connection
£/circuit
319.12
Intra Building Circuit (IBC) rental
£/circuit
90.10
90.10
SG&A Interconnect (q)
%
£5m
195.86 131.75
2.41
1,205.82 608.32
11.72
Fully Allocated Costs (£)
£
£
£
£
£
£
£
181.24
£
£
Internal Wholesale intrabuilding circuits rentals
Internal Wholesale standard
CSI rentals - per km
Internal Wholesale standard
CSI rentals - fixed
External Wholesale
rearrangements
Internal Interconnect
External Nominated ISI - per
km
External Wholesale ISI
rentals
External Wholesale intrabuilding circuits rentals
External Wholesale intrabuilding circuits connections
£
Unit (d)
External Wholesale IEC
rentals - per km
£
Components
External Wholesale IEC
rentals - fixed
External Wholesale IEC
connections
£
External Wholesale standard
CSI rentals - per km
£
External Wholesale standard
CSI rentals - fixed
As reported for the year ended 31 March 2013
External Wholesale standard
CSI connections
Average cost per unit
Customer Sited
Interconnect (end to end
circuit)
Technical areas (Interconnect Circuits)
In Span Interconnect
with Interconnect
In span Interconnect
Extension Circuit (end
to end circuit)
£
181.24
690.84
112.67
466.77
196.82
205.23
205.23
9.30
9.30
9.31
9.31
9.31
291.78
291.78
51.97
319.12
319.12
319.12
90.10
105.93
64.96
90.10
2.41
537.72 351.88 11.71
Page 80
88.41
11.04
90.10
7.52
49.09 120.71
407.53 101.14 291.78 59.49
515.86 507.18
2.41
11.04
11.72 101.14
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.9.1 – Illustrative for Technical Areas (Interconnect Circuits) calculation of FAC based on component costs and usage factors (continued)
Technical areas (Interconnect Circuits)
Interconnect local end rental 2Mbit/s
£/circuit
185.45
Interconnect 2Mbit/s connection
£/circuit
1,249.32
Interconnect extension circuits (IEC) 2Mbit/s link
£/circuit
212.83
Customer Sited Interconnect cct (CSI) 2Mbit/s link
£/circuit
221.41
Interconnect extension circuits (IEC) 2Mbit per km
£/km
Customer Sited Interconnect cct (CSI) 2Mbit per km
£/km
In Span Interconnect circuits (ISI) transmission
£/100m
Nominated In Span I/Connect cct (ISI) transmission
£/100m
50.26
Intra Building Circuit (IBC) connection
£/circuit
426.17
Intra Building Circuit (IBC) rental
£/circuit
91.61
91.61
SG&A Interconnect (q)
%
£6m
238.07 160.14
2.92
1,533.34 658.61
12.00
Fully Allocated Costs (£)
£
£
£
£
£
£
£
185.45
£
£
Internal Wholesale intrabuilding circuits rentals
Internal Wholesale standard
CSI rentals - per km
Internal Wholesale standard
CSI rentals - fixed
External Wholesale
rearrangements
Internal Interconnect
External Nominated ISI - per
km
External Wholesale intrabuilding circuits rentals
External Wholesale ISI rentals
In span Interconnect
External Wholesale intrabuilding circuits connections
£
Unit (d)
External Wholesale IEC rentals per km
£
Components
External Wholesale IEC rentals fixed
External Wholesale IEC
connections
£
External Wholesale standard
CSI rentals - per km
£
External Wholesale standard
CSI rentals - fixed
Restated on basis of 2011/12 methodologies
External Wholesale standard
CSI connections
Average cost per unit
Customer Sited
Interconnect (end to end
circuit)
In Span Interconnect
with Interconnect
Extension Circuit (end
to end circuit)
£
185.45
869.10
141.74
597.91
212.83
221.41
221.41
9.07
9.07
9.08
9.08
9.08
315.41
315.41
50.26
426.17
426.17
426.17
91.61
128.79
78.95
91.61
2.92
696.70 383.39 11.99
Page 81
107.47
13.42
91.61
9.14
59.67 146.72
533.64 105.03 315.41 59.40
657.58 553.58
2.92
13.42
12.00 105.03
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.9.1 – Illustrative for Technical Areas (Interconnect Circuits) calculation of FAC based on component costs and usage factors (continued)
Technical areas (Interconnect Circuits)
Unit (d)
Interconnect local end rental 2Mbit/s
£/circuit
(4.21)
Interconnect 2Mbit/s connection
£/circuit
(264.76)
Interconnect extension circuits (IEC) 2Mbit/s link
£/circuit
(16.01)
Customer Sited Interconnect cct (CSI) 2Mbit/s link
£/circuit
(16.18)
Interconnect extension circuits (IEC) 2Mbit per km
£/km
Customer Sited Interconnect cct (CSI) 2Mbit per km
£/km
In Span Interconnect circuits (ISI) transmission
£/100m
Nominated In Span I/Connect cct (ISI) transmission
£/100m
1.71
Intra Building Circuit (IBC) connection
£/circuit
(107.05)
Intra Building Circuit (IBC) rental
£/circuit
(1.51)
(1.51)
SG&A Interconnect (q)
%
(£1m)
(42.21) (28.39)
Fully Allocated Costs (£)
£
£
£
£
£
£
£
(4.21)
£
£
Internal Wholesale intra-building
circuits rentals
Internal Wholesale standard CSI
rentals - per km
Internal Wholesale standard CSI
rentals - fixed
External Wholesale
rearrangements
External Nominated ISI - per km
Internal Interconnect
External Wholesale ISI rentals
External Wholesale intra-building
circuits rentals
In span Interconnect
External Wholesale intra-building
circuits connections
£
External Wholesale IEC rentals per km
£
External Wholesale IEC rentals fixed
External Wholesale IEC
connections
£
Components
External Wholesale standard CSI
rentals - per km
£
External Wholesale standard CSI
rentals - fixed
Effect of changes on results
External Wholesale standard CSI
connections
Average cost per unit
Customer Sited
Interconnect (end to end
circuit)
In Span Interconnect
with Interconnect
Extension Circuit (end
to end circuit)
£
(4.21)
(178.26)
(29.07)
(131.14)
(16.01)
(16.18)
(16.18)
0.23
0.23
0.23
0.23
0.23
(23.63)
(23.63)
1.71
(107.05)
(107.05)
(327.52) (50.29)
(107.05)
(1.51)
(0.51)
(22.86) (13.99) (0.51)
(1.51)
(19.06)
(0.28) (158.98) (31.51) (0.28) (126.11)
Page 82
(2.38)
(3.89) (23.63)
(1.51)
(1.62)
(10.58) (26.01)
(0.51)
(2.38)
0.09 (141.72) (46.40)
(0.28)
(3.89)
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.9.1 – Illustrative for Technical Areas (Interconnect Circuits) calculation of FAC based on component costs and usage factors (continued)
Technical areas (Interconnect Circuits)
Components
Unit (d)
Interconnect local end rental 2Mbit/s
£/circuit
-2%
Interconnect 2Mbit/s connection
£/circuit
-21%
Interconnect extension circuits (IEC) 2Mbit/s link
£/circuit
-8%
Customer Sited Interconnect cct (CSI) 2Mbit/s link
£/circuit
-7%
Interconnect extension circuits (IEC) 2Mbit per km
£/km
Customer Sited Interconnect cct (CSI) 2Mbit per km
£/km
In Span Interconnect circuits (ISI) transmission
£/100m
Nominated In Span I/Connect cct (ISI) transmission
£/100m
3%
Intra Building Circuit (IBC) connection
£/circuit
-25%
Intra Building Circuit (IBC) rental
£/circuit
SG&A Interconnect (q)
%
Fully Allocated Costs %
%
%
%
%
Internal Wholesale intrabuilding circuits rentals
%
-2%
%
-2%
-21%
-21%
-22%
-8%
-7%
-7%
3%
3%
3%
3%
3%
-7%
-7%
3%
-25%
-2%
-17%
%
Internal Wholesale standard
CSI rentals - per km
%
Internal Wholesale standard
CSI rentals - fixed
%
External Wholesale
rearrangements
%
Internal Interconnect
External Nominated ISI - per
km
%
External Wholesale ISI rentals
External Wholesale IEC
rentals - fixed
%
External Wholesale intrabuilding circuits rentals
External Wholesale IEC
connections
%
In span Interconnect
External Wholesale intrabuilding circuits connections
External Wholesale standard
CSI rentals - per km
%
External Wholesale IEC
rentals - per km
External Wholesale standard
CSI rentals - fixed
Effect of changes on results as a percentage
External Wholesale standard
CSI connections
Average cost per unit
Customer Sited
Interconnect (end to end
circuit)
In Span Interconnect
with Interconnect
Extension Circuit (end
to end circuit)
-25%
-2%
-25%
-2%
-2%
-18%
-18%
-17%
-18%
-18%
-17%
-18%
-18%
-21%
-8%
-2%
-23%
-8%
-2%
-24%
-4%
-2%
-7%
-18%
-18%
-18%
-17%
-18%
0%
-22%
-8%
-2%
-4%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
Page 83
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.10 – Illustrative for Fixed Call Termination
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
ppm
ppm
ppm
%
Service
Internal Wholesale call termination local exchange segment
External Wholesale call termination local exchange segment
0.205
0.205
0.221
0.221
(0.016)
(0.016)
-7.2%
-7.2%
Internal Wholesale call termination local exchange segment (ISDN)
0.266
0.284
(0.018)
-6.3%
Internal Wholesale call termination local exchange stick (PSTN & ISDN)
0.136
0.145
(0.009)
-6.2%
Page 84
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.10.1 – Illustrative for Fixed Call Termination calculation of FAC based on component costs and usage factors
Fixed call termination
Internal Wholesale call
termination local exchange
stick (PSTN & ISDN)
ppm
Retail
Stick
Internal Wholesale call
termination local exchange
segment (ISDN)
As reported for the year ended 31 March 2013
Wholesale call termination
local exchange segment
Average cost per unit
Call
Termination
ppm
ppm
Components
Unit (d)
Local exchange concentrator
ppm
0.067
0.066
0.087
Local exchange processor
ppm
0.063
0.062
0.081
Remote - local transmission link
ppm
0.039
0.032
0.040
0.030
Remote - local transmission length
ppm (per 10km)
0.023
0.034
0.044
0.032
Core/Metro (voice)
ppm
0.001
0.002
0.003
0.002
iNode (call set up and features) (q)
%
£17m
0.009
0.011
0.008
0.205
0.266
0.136
Fully Allocated Costs (ppm)
0.064
Page 85
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.10.1 – Illustrative for Fixed Call Termination calculation of FAC based on component costs and usage factors (continued)
Fixed call termination
Internal Wholesale call
termination local exchange
stick (PSTN & ISDN)
ppm
Retail
Stick
Internal Wholesale call
termination local exchange
segment (ISDN)
Restated on basis of 2011/12 methodologies
Wholesale call termination
local exchange segment
Average cost per unit
Call
Termination
ppm
ppm
Components
Unit (d)
Local exchange concentrator
ppm
0.074
0.073
0.095
Local exchange processor
ppm
0.070
0.069
0.090
Remote - local transmission link
ppm
0.044
0.036
0.045
0.034
Remote - local transmission length
ppm (per 10km)
0.022
0.033
0.041
0.031
Core/Metro (voice)
ppm
0.001
0.002
0.003
0.002
iNode (call set up and features) (q)
%
£16m
0.008
0.010
0.008
0.221
0.284
0.145
Fully Allocated Costs (ppm)
Page 86
0.070
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.10.1 – Illustrative for Fixed Call Termination calculation of FAC based on component costs and usage factors (continued)
Fixed call termination
Internal Wholesale call
termination local exchange
stick (PSTN & ISDN)
ppm
(0.007) (0.007)
(0.008)
(0.006)
(0.007) (0.007)
(0.009)
(0.005) (0.004)
Wholesale call termination
local exchange segment
ppm
Average cost per unit
Effect of changes on results
ppm
Components
Unit (d)
Local exchange concentrator
ppm
Local exchange processor
ppm
Remote - local transmission link
ppm
Remote - local transmission length
ppm (per 10km)
Core/Metro (voice)
ppm
iNode (call set up and features) (q)
%
Fully Allocated Costs (ppm)
Retail
Stick
Internal Wholesale call
termination local exchange
segment (ISDN)
Call
Termination
(0.005)
(0.004)
0.001
0.001
0.003
0.001
£1m
0.001
0.001
(0.016)
(0.018)
(0.009)
Page 87
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.10.1 – Illustrative for Fixed Call Termination calculation of FAC based on component costs and usage factors (continued)
Fixed call termination
Internal Wholesale call
termination local exchange
stick (PSTN & ISDN)
%
Retail
Stick
Internal Wholesale call
termination local exchange
segment (ISDN)
Effect of changes on results as a percentage
Wholesale call termination
local exchange segment
Average cost per unit
Call
Termination
%
%
Components
Unit (d)
Local exchange concentrator
ppm
-9%
-10%
-8%
Local exchange processor
ppm
-10%
-10%
-10%
Remote - local transmission link
ppm
-11%
-11%
-11%
-12%
Remote - local transmission length
ppm (per 10km)
5%
3%
7%
3%
Core/Metro (voice)
ppm
0%
0%
0%
0%
iNode (call set up and features) (q)
%
6%
13%
10%
0%
-7%
-6%
-6%
Fully Allocated Costs %
-9%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 88
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.11 – Illustrative for Wholesale Trunk Segments
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
Service
Partial and Private circuits 2Mbit/s - trunk
Trunk charge per year
Enhanced maintenance per km charge per year
Total Internal
15.01
15.21
(0.20)
-1.3%
Trunk charge per year
Enhanced maintenance per km charge per year
Total External
15.01
15.21
(0.20)
-1.3%
Partial and Private circuits 34/45Mbit/s - trunk
Trunk charge per year
Enhanced maintenance per km charge per year
Total Internal
139.38
141.55
(2.17)
-1.5%
Trunk charge per year
Enhanced maintenance per km charge per year
Total External
139.38
141.55
(2.17)
-1.5%
Partial and Private circuits 140/155Mbit/s - trunk
Trunk charge per year
Enhanced maintenance per km charge per year
Total Internal
208.39
208.39
-
0.0%
Trunk charge per year
Enhanced maintenance per km charge per year
Total External
208.39
208.39
-
0.0%
Internal Partial and Private circuits 622Mbit/s - trunk
986.18
991.33
(5.15)
-0.5%
Page 89
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.11.1 – Illustrative for Wholesale Trunk Segments calculation of FAC based on component costs and usage factors
Unit (d)
PC rental 2Mbit/s link per km trunk
£/km
12.60
PC rental 34Mbit/s link per km trunk
£/km
120.97
PC rental 140Mbit/s link per km trunk
£/km
200.13
PC rental 622Mbit/s link per km trunk
£/km
960.93
SG & A partial private circuits (q)
%
Fully Allocated Costs (£)
£31m
£
£
Partial and Private circuits
622Mbit/s - trunk
Partial and Private circuits
140/155Mbit/s - trunk
£
Components
Partial and Private circuits
34/45Mbit/s - trunk
As reported for the year ended 31 March 2013
Partial and Private circuits
2Mbit/s - trunk
Average cost per unit
Wholesale trunk segments
£
12.68
120.85
198.99
960.93
2.33
18.53
15.01
139.38
9.40
25.25
208.39 986.18
Page 90
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.11.1 – Illustrative for Wholesale Trunk Segments calculation of FAC based on component costs and usage factors (continued)
Unit (d)
PC rental 2Mbit/s link per km trunk
£/km
12.71
PC rental 34Mbit/s link per km trunk
£/km
122.46
PC rental 140Mbit/s link per km trunk
£/km
199.67
PC rental 622Mbit/s link per km trunk
£/km
965.15
SG & A partial private circuits (q)
%
Fully Allocated Costs (£)
£32m
£
£
Partial and Private circuits
622Mbit/s - trunk
Partial and Private circuits
140/155Mbit/s - trunk
£
Components
Partial and Private circuits
34/45Mbit/s - trunk
Restated on basis on 2011/12 methodologies
Partial and Private circuits
2Mbit/s - trunk
Average cost per unit
Wholesale trunk segments
£
12.79
122.35
198.65
965.15
2.42
19.20
15.21
141.55
9.74
26.18
208.39 991.33
Page 91
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.11.1 – Illustrative for Wholesale Trunk Segments calculation of FAC based on component costs and usage factors (continued)
Unit (d)
PC rental 2Mbit/s link per km trunk
£/km
(0.11)
PC rental 34Mbit/s link per km trunk
£/km
(1.49)
PC rental 140Mbit/s link per km trunk
£/km
0.46
PC rental 622Mbit/s link per km trunk
£/km
(4.22)
SG & A partial private circuits (q)
%
(£1m)
Fully Allocated Costs (£)
£
£
Partial and Private circuits
622Mbit/s - trunk
Partial and Private circuits
140/155Mbit/s - trunk
£
Components
Partial and Private circuits
34/45Mbit/s - trunk
Effect of changes on results
Partial and Private circuits
2Mbit/s - trunk
Average cost per unit
Wholesale trunk segments
£
(0.11)
(1.50)
0.34
(4.22)
(0.09)
(0.67)
(0.34)
(0.93)
(0.20)
(2.17)
-
(5.15)
Page 92
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.11.1 – Illustrative for Wholesale Trunk Segments calculation of FAC based on component costs and usage factors (continued)
Components
Unit (d)
PC rental 2Mbit/s link per km trunk
£/km
-1%
PC rental 34Mbit/s link per km trunk
£/km
-1%
PC rental 140Mbit/s link per km trunk
£/km
0%
PC rental 622Mbit/s link per km trunk
£/km
0%
SG & A partial private circuits (q)
%
Fully Allocated Costs %
-3%
Partial and Private circuits
34/45Mbit/s - trunk
Partial and Private circuits
140/155Mbit/s - trunk
Partial and Private circuits
622Mbit/s - trunk
Effect of changes on results as a percentage
Partial and Private circuits
2Mbit/s - trunk
Average cost per unit
Wholesale trunk segments
%
%
%
%
-1%
-1%
0%
0%
-4%
-3%
-3%
-4%
-1%
-2%
0%
-1%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 93
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.12 – Illustrative for Technical Areas (Point of Handover)
2012/13
FAC (on
2012/13
basis)
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
Service
External Customer Sited Handover connections
External Customer Sited Handover rentals
External In Span Handover connections
External In Span Handover rentals
£
-
-
1,776.80
1,779.52
-
-
£
%
-
-
(2.72)
-0.2%
-
-
52.21
53.57
(1.36)
-2.5%
141.27
139.55
1.72
1.2%
76.46
79.14
(2.68)
-3.4%
External 3rd Party POH Rental 2Mbit/s non CLZ - circuit
142.61
140.57
2.04
1.5%
External 3rd Party POH Rental Other - circuit
167.27
165.16
2.11
1.3%
External 3rd Party POH Rentals - equipment
External 3rd Party POH Rental 64kbit/s - circuit
Page 94
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.12.1 – Illustrative for Technical Areas (Point of Handover) calculation of FAC based on component costs and usage factors
£
Unit (d)
Point of Handover electronics
£/eq
PC rental 64kbit/s link local end
£/le
392.94
PC rental 34Mbit/s link local end
£/le
3,553.49
14.98
PC rental 140Mbit/s link local end
£/le
5,989.94
2.61
PC rental 2Mbit/s local end copper
£/le
263.18
9.57
PC rental 2Mbit/s local end fibre
£/le
650.76
99.71
Access Cards (other services) (q)
%
£25m
5.75
SG & A partial private circuits (q)
%
£31m
Fully Allocated Costs (£)
1,141.05
1,712.24
£
£
£
Components
External 3rd Party POH
Rental Other - circuit
External 3rd Party POH
Rentals - equipment
In Span Handover rentals
In Span Handover
connections
£
External 3rd Party POH
Rental 2Mbit/s non CLZ circuit
£
External 3rd Party POH
Rental 64kbit/s - circuit
£
Customer Sited Handover
rentals
As reported for the year ended 31 March 2013
Customer Sited Handover
connections
Average cost per unit
Technical Areas (Point of Handover)
£
24.69
7.76 70.78
64.56
- 1,776.80
27.52
0.89
9.56
6.29
11.91
114.75 133.80
5.68
- 52.21 141.27 76.46
Page 95
6.26
6.92
9.69
10.70
142.61 167.27
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.12.1 – Illustrative for Technical Areas (Point of Handover) calculation of FAC based on component costs and usage factors (continued)
£
£
Point of Handover electronics
£/eq
PC rental 64kbit/s link local end
£/le
407.43
PC rental 34Mbit/s link local end
£/le
3,635.04
15.27
PC rental 140Mbit/s link local end
£/le
6,188.34
2.69
PC rental 2Mbit/s local end copper
£/le
278.27
9.90
PC rental 2Mbit/s local end fibre
£/le
675.01
102.74
Access Cards (other services) (q)
%
£28m
SG & A partial private circuits (q)
%
£32m
Fully Allocated Costs (£)
1,153.83
1,712.60
£
£
External 3rd Party POH
Rental Other - circuit
External 3rd Party POH
Rentals - equipment
In Span Handover rentals
In Span Handover
connections
£
Unit (d)
External 3rd Party POH
Rental 2Mbit/s non CLZ circuit
£
Components
External 3rd Party POH
Rental 64kbit/s - circuit
£
Customer Sited Handover
rentals
Restated on basis on 2011/12 methodologies
Customer Sited Handover
connections
Average cost per unit
Technical Areas (Point of Handover)
£
25.05
8.03 73.25
66.92
- 1,779.52
28.52
0.92
9.74
6.49
12.32
118.21 137.85
5.89
- 53.57 139.55 79.14
Page 96
10.04
11.08
140.57 165.16
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.12.1 – Illustrative for Technical Areas (Point of Handover) calculation of FAC based on component costs and usage factors (continued)
£
£
£
£
External 3rd Party POH
Rental Other - circuit
External 3rd Party POH
Rentals - equipment
In Span Handover rentals
In Span Handover
connections
£
External 3rd Party POH
Rental 2Mbit/s non CLZ circuit
£
External 3rd Party POH
Rental 64kbit/s - circuit
£
Customer Sited Handover
rentals
Effect of changes on results
Customer Sited Handover
connections
Average cost per unit
Technical Areas (Point of Handover)
£
Components
Unit (d)
Point of Handover electronics
£/eq
(12.78)
PC rental 64kbit/s link local end
£/le
(14.49)
(0.27) (2.47)
PC rental 34Mbit/s link local end
£/le
(81.55)
(0.29)
PC rental 140Mbit/s link local end
£/le
(198.40)
(0.08)
PC rental 2Mbit/s local end copper
£/le
(15.09)
(0.33)
(0.41)
PC rental 2Mbit/s local end fibre
£/le
(24.25)
(3.03)
(3.46)
Access Cards (other services) (q)
%
(£3m)
5.75
6.26
6.92
SG & A partial private circuits (q)
%
(£1m)
Fully Allocated Costs (£)
(0.36)
-
(0.36)
(0.18)
(0.20)
(4.05)
(2.36)
(1.00)
(0.03) (0.21)
(0.35)
(0.38)
(2.72)
- (1.36)
1.72 (2.68)
2.04
2.11
Page 97
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.12.1 – Illustrative for Technical Areas (Point of Handover) calculation of FAC based on component costs and usage factors (continued)
%
%
%
%
%
%
%
External 3rd Party POH Rental
Other - circuit
External 3rd Party POH Rental
2Mbit/s non CLZ - circuit
External 3rd Party POH Rental
64kbit/s - circuit
External 3rd Party POH Rentals
- equipment
In Span Handover rentals
In Span Handover connections
Customer Sited Handover
rentals
Effect of changes on results as a percentage
Customer Sited Handover
connections
Average cost per unit
Technical Areas (Point of Handover)
%
Components
Unit (d)
Point of Handover electronics
£/eq
-1%
PC rental 64kbit/s link local end
£/le
-4%
-3%
PC rental 34Mbit/s link local end
£/le
-2%
-2%
PC rental 140Mbit/s link local end
£/le
-3%
-3%
PC rental 2Mbit/s local end copper
£/le
-5%
-3%
-3%
PC rental 2Mbit/s local end fibre
£/le
-4%
-3%
-3%
-3%
Access Cards (other services) (q)
%
-11%
SG & A partial private circuits (q)
%
-3%
Fully Allocated Costs %
0%
-1%
-4%
-
0%
-
-3%
-2%
-3%
-4%
-3%
-4%
-3%
-3%
-3%
1%
-3%
1%
1%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
Page 98
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.13 – Illustrative for Wholesale Broadband Access Market 1
2012/13
FAC (on
2012/13
basis)
Service
Internal End user access connections Mkt 1
EOI
Wholesale Costs
External end user access connections Mkt 1
EOI
Wholesale Costs
Internal IPstream Connect End user access Rentals Mkt 1
EOI
Wholesale Costs
External IPstream Connect End user access Rentals Mkt 1
EOI
Wholesale Costs
Internal IPstream Connect Bandwidth Mkt 1
EOI
Wholesale Costs
External IPstream Connect Bandwidth Mkt 1
EOI
Wholesale Costs
Internal WBC end user access Rentals Mkt 1
EOI
Wholesale Costs
External WBC end user access Rentals Mkt 1
EOI
Wholesale Costs
Internal WBC bandwidth Mkt 1
EOI
Wholesale Costs
External WBC bandwidth Mkt 1
EOI
Wholesale Costs
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
33.54
5.15
38.69
33.54
6.31
39.85
(1.16)
(1.16)
0.0%
-18.4%
-2.9%
33.54
5.15
38.69
33.54
6.31
39.85
(1.16)
(1.16)
0.0%
-18.4%
-2.9%
25.69
77.38
103.07
25.69
72.44
98.13
4.94
4.94
0.0%
6.8%
5.0%
26.44
77.09
103.53
26.44
72.20
98.64
4.89
4.89
0.0%
6.8%
5.0%
7.19
60.12
67.31
7.19
59.66
66.85
0.46
0.46
0.0%
0.8%
0.7%
7.39
64.08
71.47
7.39
65.01
72.40
(0.93)
(0.93)
0.0%
-1.4%
-1.3%
18.03
26.60
44.63
18.03
27.07
45.10
(0.47)
(0.47)
0.0%
-1.7%
-1.0%
18.03
26.60
44.63
18.03
27.07
45.10
(0.47)
(0.47)
0.0%
-1.7%
-1.0%
6.04
18.56
24.60
6.04
17.38
23.42
1.18
1.18
0.0%
6.8%
5.0%
5.90
18.57
24.47
5.90
17.39
23.29
1.18
1.18
0.0%
6.8%
5.1%
Page 99
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.13.1 – Illustrative for Wholesale Broadband Access Market 1 calculation of FAC based on component costs and usage factors
1.85
1.86
2.65
2.65
£
£
£
1.83
1.83
Unit (d)
Broadband line testing systems
£/line
2.50
ADSL connections
£/conn
2.66
Combi Card Broadband Access
£/line
19.91
ATM customer interface 2Mbit/s
£/port
92.26
0.01
0.01
ATM customer interface 34Mbit/s
£/port
982.59
0.08
0.08
ATM customer interface > 155Mbit/s
£/port
286.23
0.99
0.99
ATM network interface
£/port
98.13
0.43
0.43
ATM network switching
£/use
3.01
2.57
2.57
Inter ATM transmissions
£/use
42.88
21CN Backhaul Link & Length
£/circuit
7,423.01
Core/Metro (broadband)
£/circuit
10.78
SG&A Broadband (q)
%
£92m
Broadband backhaul circuits (excl Virtual Paths) (q)
%
£52m
Edge Ethernet ports (q)
%
£9m
0.86
0.86
Core/Metro connectivity (q)
%
£47m
1.60
1.60
DSLAM capital/maintenance (q)
%
£195m
4.29
8.17
EOI Notional Creditors (ap)
Fully Allocated Costs (£)
19.91 19.91
External WBC BW - Revenues Mkt 1
£
Components
Internal WBC BW - Revenues Mkt 1
Internal IPstream Connect Bandwidth
Mkt 1
£
External WBC end user access-Rentals
Mkt 1
External IPstream Connect End user
access Rentals Mkt 1
£
Internal WBC end user access-Rentals
Mkt 1
Internal IPstream Connect End user
access Rentals Mkt 1
£
£
External IPstream Connect Bandwidth
Mkt 1
External end user access connections
Mkt 1
As reported for the year ended 31 March 2013
Internal End user access connections
Mkt 1
Average cost per unit
Wholesale broadband access market 1 - BT only operator
£
£
4.30
4.30
19.91 19.91
10.84 10.84
4.30
4.30
10.39 10.39
2.70
2.70
5.23
5.39
7.56
7.64
10.39 10.39
4.97
4.97
3.05
3.05
0.86
0.86
16.24 16.24
50.54 50.08
(0.20) (0.20) (0.15) (0.15) (0.04) (0.04) (0.11) (0.11) (0.04) (0.03)
5.15
5.15 77.38 77.09 60.12 64.08 26.60 26.60 18.56 18.57
Page 100
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.13.1 – Illustrative for Wholesale Broadband Access Market 1 calculation of FAC based on component costs and usage factors (continued)
1.98
1.99
3.72
3.72
£
£
£
1.96
1.96
£
£
4.19
4.19
4.19
9.47
9.47
9.47
3.15
3.15
0.61
0.61
Components
Unit (d)
Broadband line testing systems
£/line
2.24
ADSL connections
£/conn
3.73
Combi Card Broadband Access
£/line
20.08
ATM customer interface 2Mbit/s
£/port
99.20
0.01
0.01
ATM customer interface 34Mbit/s
£/port
1,061.78
0.08
0.08
ATM customer interface > 155Mbit/s
£/port
307.89
1.07
1.07
ATM network interface
£/port
105.49
0.47
0.47
ATM network switching
£/use
3.22
2.75
2.75
Inter ATM transmissions
£/use
43.88
21CN Backhaul Link & Length
£/circuit
7,474.98
4.19
Core/Metro (broadband)
£/circuit
9.96
9.47
SG&A Broadband (q)
%
£94m
7.81
7.89
Broadband backhaul circuits (excl Virtual Paths) (q)
%
£51m
Edge Ethernet ports (q)
%
£9m
Core/Metro connectivity (q)
%
£63m
DSLAM capital/maintenance (q)
%
£199m
EOI Notional Creditors (ap)
Fully Allocated Costs (£)
External WBC BW - Revenues Mkt 1
£
Internal WBC BW - Revenues Mkt 1
Internal IPstream Connect Bandwidth
Mkt 1
£
External WBC end user accessRentals Mkt 1
External IPstream Connect End user
access Rentals Mkt 1
£
Internal WBC end user access-Rentals
Mkt 1
Internal IPstream Connect End user
access Rentals Mkt 1
£
£
External IPstream Connect Bandwidth
Mkt 1
External end user access connections
Mkt 1
Restated on basis on 2011/12 methodologies
Internal End user access connections
Mkt 1
Average cost per unit
Wholesale broadband access market 1 - BT only operator
20.08 20.08
20.08 20.08
11.09 11.09
2.79
2.79
5.42
5.59
5.14
5.14
16.31 16.31
0.61
45.11 44.69
0.61
5.84 11.11
(0.20) (0.20) (0.15) (0.15) (0.04) (0.04) (0.11) (0.11) (0.04) (0.03)
6.31
6.31 72.44 72.20 59.66 65.01 27.07 27.07 17.38 17.39
Page 101
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.13.1 – Illustrative for Wholesale Broadband Access Market 1 calculation of FAC based on component costs and usage factors (continued)
External IPstream Connect End user
access Rentals Mkt 1
Internal IPstream Connect Bandwidth
Mkt 1
External IPstream Connect Bandwidth
Mkt 1
Internal WBC end user access-Rentals
Mkt 1
External WBC end user access-Rentals
Mkt 1
£
£
£
£
£
£
£
£
£
0.11
0.11
0.11
0.92
0.92
0.92
Components
Unit (d)
Broadband line testing systems
£/line
ADSL connections
£/conn
(1.07) (1.07) (1.07)
Combi Card Broadband Access
£/line
(0.17)
ATM customer interface 2Mbit/s
£/port
(6.94)
ATM customer interface 34Mbit/s
£/port
(79.19)
ATM customer interface > 155Mbit/s
£/port
(21.66)
(0.08) (0.08)
ATM network interface
£/port
(7.36)
(0.04) (0.04)
ATM network switching
£/use
(0.21)
(0.18) (0.18)
Inter ATM transmissions
£/use
(1.00)
(0.25) (0.25)
21CN Backhaul Link & Length
£/circuit
(51.97)
0.11
Core/Metro (broadband)
£/circuit
0.82
0.92
SG&A Broadband (q)
%
Broadband backhaul circuits (excl Virtual Paths) (q)
%
£1m
Edge Ethernet ports (q)
%
£0m
0.25
0.25
Core/Metro connectivity (q)
%
(£16m)
1.60
1.60
DSLAM capital/maintenance (q)
%
(£4m)
0.26
External WBC BW - Revenues Mkt 1
Internal IPstream Connect End user
access Rentals Mkt 1
£
Internal WBC BW - Revenues Mkt 1
External end user access connections
Mkt 1
Effect of changes on results
Internal End user access connections
Mkt 1
Average cost per unit
Wholesale broadband access market 1 - BT only operator
(0.13) (0.13)
(0.13) (0.13)
(0.17) (0.17)
(0.17) (0.17)
(£2m) (0.09) (0.09) (0.19) (0.20) (0.25) (0.25) (0.17) (0.17) (0.10) (0.10)
(0.07) (0.07)
5.43
5.39 (1.55) (2.94)
4.94
4.89
0.25
0.25
1.18
1.18
EOI Notional Creditors (ap)
Fully Allocated Costs (£)
(1.16) (1.16)
0.46 (0.93) (0.47) (0.47)
Page 102
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.13.1 – Illustrative for Wholesale Broadband Access Market 1 calculation of FAC based on component costs and usage factors (continued)
-7%
-7%
-1%
-1%
-29%
-29%
%
%
%
-7%
-7%
-1%
-1%
%
External WBC BW - Revenues Mkt 1
%
Internal WBC BW - Revenues Mkt 1
Internal IPstream Connect Bandwidth
Mkt 1
%
External WBC end user accessRentals Mkt 1
External IPstream Connect End user
access Rentals Mkt 1
%
Internal WBC end user access-Rentals
Mkt 1
Internal IPstream Connect End user
access Rentals Mkt 1
%
%
External IPstream Connect Bandwidth
Mkt 1
External end user access connections
Mkt 1
Effect of changes on results as a percentage
Internal End user access connections
Mkt 1
Average cost per unit
Wholesale broadband access market 1 - BT only operator
%
Components
Unit (d)
Broadband line testing systems
£/line
ADSL connections
£/conn
Combi Card Broadband Access
£/line
-1%
ATM customer interface 2Mbit/s
£/port
-7%
ATM customer interface 34Mbit/s
£/port
-7%
0%
0%
ATM customer interface > 155Mbit/s
£/port
-7%
-7%
-7%
ATM network interface
£/port
-7%
-9%
-9%
ATM network switching
£/use
-7%
-7%
-7%
Inter ATM transmissions
£/use
-2%
-2%
-2%
21CN Backhaul Link & Length
£/circuit
-1%
3%
3%
3%
3%
Core/Metro (broadband)
£/circuit
8%
10%
10%
10%
10%
SG&A Broadband (q)
%
-2%
-3%
-3%
-3%
-3%
Broadband backhaul circuits (excl Virtual Paths) (q)
%
2%
0%
0%
Edge Ethernet ports (q)
%
0%
41%
41%
41%
41%
Core/Metro connectivity (q)
%
-25%
DSLAM capital/maintenance (q)
%
-2%
EOI Notional Creditors (ap)
Fully Allocated Costs %
12%
-29%
0%
-3%
-3%
-4%
-4%
0%
-3%
-3%
12%
12%
-27%
-26%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-18%
-18%
7%
7%
1%
-1%
-2%
-2%
7%
7%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
(ap) Reduction in FAC due to notional creditor generated by the EOI charge from Openreach to WBA markets.
Page 103
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.14 – Illustrative for Wholesale Broadband Access Market 2
2012/13
FAC (on
2012/13
basis)
Service
Internal End user access connections Mkt 2
EOI
Wholesale Costs
External end user access connections Mkt 2
EOI
Wholesale Costs
Internal IPstream Connect End user access Rentals Mkt 2
EOI
Wholesale Costs
External IPstream Connect End user access Rentals Mkt 2
EOI
Wholesale Costs
Internal IPstream Connect Bandwidth Mkt 2
EOI
Wholesale Costs
External IPstream Connect Bandwidth Mkt 2
EOI
Wholesale Costs
Internal WBC end user access Rentals Mkt 2
EOI
Wholesale Costs
External WBC end user access Rentals Mkt 2
EOI
Wholesale Costs
Internal WBC bandwidth Mkt 2
EOI
Wholesale Costs
External WBC bandwidth Mkt 2
EOI
Wholesale Costs
2012/13
FAC (on
Effect of
Effect of
2011/12
change in
change in
basis) methodologies methodologies
£
£
£
%
33.54
5.35
38.89
33.54
6.52
40.06
(1.17)
(1.17)
0.0%
-17.9%
-2.9%
33.54
5.35
38.89
33.54
6.52
40.06
(1.17)
(1.17)
0.0%
-17.9%
-2.9%
26.33
86.36
112.69
26.33
84.93
111.26
1.43
1.43
0.0%
1.7%
1.3%
26.70
89.52
116.22
26.70
87.99
114.69
1.53
1.53
0.0%
1.7%
1.3%
8.36
59.71
68.07
8.36
58.81
67.17
0.90
0.90
0.0%
1.5%
1.3%
4.06
58.81
62.87
4.06
57.56
61.62
1.25
1.25
0.0%
2.2%
2.0%
18.03
26.60
44.63
18.03
27.07
45.10
(0.47)
(0.47)
0.0%
-1.7%
-1.0%
18.03
26.60
44.63
18.03
27.07
45.10
(0.47)
(0.47)
0.0%
-1.7%
-1.0%
5.44
18.57
24.01
5.44
17.39
22.83
1.18
1.18
0.0%
6.8%
5.2%
5.45
18.57
24.02
5.45
17.39
22.84
1.18
1.18
0.0%
6.8%
5.2%
Page 104
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.14.1 – Illustrative for Wholesale Broadband Access Market 2 calculation of FAC based on component costs and usage factors
1.90
1.91
2.67
2.67
£
Broadband line testing systems
£/line
2.50
ADSL connections
£/conn
2.66
Combi Card Broadband Access
£/line
19.91
ATM customer interface 34Mbit/s
£/port
982.59
0.07
0.07
ATM customer interface > 155Mbit/s
£/port
286.23
1.13
1.13
ATM network interface
£/port
98.13
0.47
0.47
ATM network switching
£/use
3.01
2.92
2.92
Inter ATM transmissions
£/use
42.88
10.89
10.89
21CN Backhaul Link & Length
£/circuit
7,423.01
4.30
4.30
Core/Metro (broadband)
£/circuit
10.78
10.39
10.39
SG&A Broadband (q)
%
£92m
9.77
9.82
Broadband backhaul circuits (excl Virtual Paths) (q)
%
£52m
14.56
14.56
Edge Ethernet ports (q)
%
£9m
0.86
0.86
Core/Metro connectivity (q)
%
£47m
1.60
1.60
DSLAM capital/maintenance (q)
%
£195m
EOI Notional Creditors (ap)
Fully Allocated Costs (£)
19.91 19.91
2.88
2.88
5.77
5.89
58.93 61.97
£
1.83
1.83
£
£
4.30
4.30
19.91 19.91
2.80
(0.20) (0.20) (0.15) (0.16) (0.05)
5.35
£
External WBC BW - Revenues Mkt 2
£
Internal WBC BW - Revenues Mkt 2
Internal IPstream Connect Bandwidth
Mkt 2
£
Unit (d)
External WBC end user access-Rentals
Mkt 2
External IPstream Connect End user
access Rentals Mkt 2
£
Components
Internal WBC end user access-Rentals
Mkt 2
Internal IPstream Connect End user
access Rentals Mkt 2
£
£
External IPstream Connect Bandwidth
Mkt 2
External end user access connections
Mkt 2
As reported for the year ended 31 March 2013
Internal End user access connections
Mkt 2
Average cost per unit
Wholesale broadband access market 2 - 2 to 3 principal operators
5.35 86.36 89.52 59.71
Page 105
10.39 10.39
4.97
4.97
3.05
3.05
0.86
0.86
1.82
(0.02) (0.11) (0.11) (0.03) (0.03)
58.81 26.60 26.60 18.57 18.57
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.14.1 – Illustrative for Wholesale Broadband Access Market 2 calculation of FAC based on component costs and usage factors (continued)
2.02
2.03
3.73
3.73
£
4.19
4.19
9.47
9.47
9.47
3.15
3.15
0.61
0.61
£/line
2.24
ADSL connections
£/conn
3.73
Combi Card Broadband Access
£/line
20.08
ATM customer interface 34Mbit/s
£/port
1,061.78
0.07
0.07
ATM customer interface > 155Mbit/s
£/port
307.89
1.21
1.21
ATM network interface
£/port
105.49
0.51
0.51
ATM network switching
£/use
3.22
3.12
3.12
Inter ATM transmissions
£/use
43.88
11.15
11.15
21CN Backhaul Link & Length
£/circuit
7,474.98
4.19
Core/Metro (broadband)
£/circuit
9.96
9.47
SG&A Broadband (q)
%
£94m
6.10 10.09
10.14
Broadband backhaul circuits (excl Virtual Paths) (q)
%
£51m
14.63
14.63
Edge Ethernet ports (q)
%
£9m
0.61
0.61
Core/Metro connectivity (q)
%
£63m
DSLAM capital/maintenance (q)
%
£199m
EOI Notional Creditors (ap)
Fully Allocated Costs (£)
20.08 20.08
57.00 59.94
20.08 20.08
3.81
(0.20) (0.20) (0.15) (0.16) (0.05)
6.52
1.96
4.19
Broadband line testing systems
5.98
1.96
£
Unit (d)
2.99
£
£
Components
2.99
£
External WBC BW - Revenues Mkt 2
£
Internal WBC BW - Revenues Mkt 2
Internal IPstream Connect Bandwidth
Mkt 2
£
External WBC end user access-Rentals
Mkt 2
External IPstream Connect End user
access Rentals Mkt 2
£
Internal WBC end user access-Rentals
Mkt 2
Internal IPstream Connect End user
access Rentals Mkt 2
£
£
External IPstream Connect Bandwidth
Mkt 2
External end user access connections
Mkt 2
Restated on basis on 2011/12 methodologies
Internal End user access connections
Mkt 2
Average cost per unit
Wholesale broadband access market 2 - 2 to 3 principal operators
6.52 84.93 87.99 58.81
5.14
5.14
2.48
(0.02) (0.11) (0.11) (0.03) (0.03)
57.56 27.07 27.07 17.39 17.39
Page 106
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.14.1 – Illustrative for Wholesale Broadband Access Market 2 calculation of FAC based on component costs and usage factors (continued)
£
£
£
£
£
0.11
0.11
0.11
0.92
0.92
0.92
Components
Unit (d)
Broadband line testing systems
£/line
ADSL connections
£/conn
Combi Card Broadband Access
£/line
(0.17)
ATM customer interface 34Mbit/s
£/port
(79.19)
ATM customer interface > 155Mbit/s
£/port
(21.66)
(0.08)
(0.08)
ATM network interface
£/port
(7.36)
(0.04)
(0.04)
ATM network switching
£/use
(0.21)
(0.20)
(0.20)
Inter ATM transmissions
£/use
(1.00)
(0.26)
(0.26)
21CN Backhaul Link & Length
£/circuit
(51.97)
0.11
Core/Metro (broadband)
£/circuit
0.82
0.92
SG&A Broadband (q)
%
Broadband backhaul circuits (excl Virtual Paths) (q)
%
£1m
(0.07)
(0.07)
Edge Ethernet ports (q)
%
£0m
0.25
0.25
Core/Metro connectivity (q)
%
(£16m)
1.60
1.60
DSLAM capital/maintenance (q)
%
(£4m)
1.93
2.03 (1.01)
(0.66)
1.43
1.53
0.26
£
External WBC BW - Revenues Mkt 2
£
Internal WBC BW - Revenues Mkt 2
Internal IPstream Connect Bandwidth
Mkt 2
£
External WBC end user access-Rentals
Mkt 2
External IPstream Connect End user
access Rentals Mkt 2
£
Internal WBC end user access-Rentals
Mkt 2
Internal IPstream Connect End user
access Rentals Mkt 2
£
External IPstream Connect Bandwidth
Mkt 2
External end user access connections
Mkt 2
Effect of changes on results
Internal End user access connections
Mkt 2
Average cost per unit
Wholesale broadband access market 2 - 2 to 3 principal operators
(0.12) (0.12)
(0.13) (0.13)
(0.17) (0.17)
(0.17) (0.17)
(1.07) (1.06) (1.06)
(£2m) (0.11) (0.11) (0.21) (0.21) (0.32)
(0.32) (0.17) (0.17) (0.10) (0.10)
0.25
0.25
1.18
1.18
EOI Notional Creditors (ap)
Fully Allocated Costs (£)
(1.17) (1.17)
0.90
Page 107
1.25 (0.47) (0.47)
Section 6 – Illustrative difference of methodology changes on FAC
Section 6.14.1 – Illustrative for Wholesale Broadband Access Market 2 calculation of FAC based on component costs and usage factors (continued)
-6%
-6%
-1%
-1%
-28%
-28%
%
%
%
-7%
-7%
-1%
-1%
%
External WBC BW - Revenues Mkt 2
%
Internal WBC BW - Revenues Mkt 2
Internal IPstream Connect Bandwidth
Mkt 2
%
External WBC end user access-Rentals
Mkt 2
External IPstream Connect End user
access Rentals Mkt 2
%
Internal WBC end user access-Rentals
Mkt 2
Internal IPstream Connect End user
access Rentals Mkt 2
%
%
External IPstream Connect Bandwidth
Mkt 2
External end user access connections
Mkt 2
Effect of changes on results as a percentage
Internal End user access connections
Mkt 2
Average cost per unit
Wholesale broadband access market 2 - 2 to 3 principal operators
%
Components
Unit (d)
Broadband line testing systems
£/line
ADSL connections
£/conn
Combi Card Broadband Access
£/line
-1%
ATM customer interface 34Mbit/s
£/port
-7%
0%
0%
ATM customer interface > 155Mbit/s
£/port
-7%
-7%
-7%
ATM network interface
£/port
-7%
-8%
-8%
ATM network switching
£/use
-7%
-6%
-6%
Inter ATM transmissions
£/use
-2%
-2%
-2%
21CN Backhaul Link & Length
£/circuit
-1%
3%
3%
3%
3%
Core/Metro (broadband)
£/circuit
8%
10%
10%
10%
10%
SG&A Broadband (q)
%
-2%
-3%
-3%
-3%
-3%
Broadband backhaul circuits (excl Virtual Paths) (q)
%
2%
0%
0%
Edge Ethernet ports (q)
%
0%
41%
41%
41%
41%
Core/Metro connectivity (q)
%
-25%
DSLAM capital/maintenance (q)
%
-2%
EOI Notional Creditors (ap)
Fully Allocated Costs %
12%
-29%
-4%
-4%
-4%
-3%
-3%
-3%
3%
3%
-27%
-27%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-18%
-18%
2%
2%
2%
2%
-2%
-2%
7%
7%
(d) ppm = pence per minute; £/2Mbit cct = £ per 2Mbit/s circuit; £/km = £ per kilometre; £/100m = £ per 100 metres; £/trans = £ per transaction; £/circuit = £ per circuit; £/ hostel rental = £ per hostel rental; % = % utilisation;
£/line = £ per line; £/room = £ per room; £/cable = £ per cable; £/link = £ per link; £/eq = £ per equipment units; £/le = £ per local end; £/conn = £ per connection; £/channel = £ per channel; £/fibre km = £ per fibre km.
(q) This is the total cost not unit cost for this component.
(ap) Reduction in FAC due to notional creditor generated by the EOI charge from Openreach to WBA markets.
Page 108
Section 7 – Illustrative difference of methodology changes on Network Activity Statement
Section 7
Illustrative difference of methodology changes on Network Activity Statement
Page 109
Section 7 – Illustrative difference of methodology changes on Network Activity Statement
Section 7.1 – Illustrative difference of methodology changes on Network Activity Statement 2013
Fully Allocated Cost (£m)
As reported for the year ended 31 March 2013
Total of
Average costs
operating costs
per min/unit on
and capital costs
a current cost
relating to
basis relating to
current year
current year
Volume
£m
Based on 11/12 methodologies
Total of
Average costs
operating costs
per min/unit on
and capital costs
a current cost
relating to
basis relating to
current year
current year
Volume
£
£m
134,312 mm
132,820 mm
0.067p
100
0.063p
93
110,823 mm
200,847 mm
0.039p
48
0.023p
45
133,452 mm
11,764 circuits
0.006p
8
£181.24
2
£
Difference
Total of
operating costs
and capital costs
relating to
current year
Volume
£m
Average costs
per min/unit on
a current cost
basis relating to
current year
£
SMP Cost Accounting components
Local exchange concentrator
91
Local exchange processor
83
Remote - local transmission link
43
Remote - local transmission length
47
Product management policy & planning
8
Interconnect local end rental 2Mbit/s
2
Interconnect 2Mbit/s connection
1
Interconnect extension circuits (IEC) 2Mbit/s link
2
Customer Sited Interconnect cct (CSI) 2Mbit/s link
2
Interconnect extension circuits (IEC) 2Mbit per km
3
Customer Sited Interconnect cct (CSI) 2Mbit per km
3
In Span Interconnect circuits (ISI) transmission
2
Nominated In Span I/Connect cct (ISI) transmission
1
Intra Building Circuit (IBC) connection
1
Intra Building Circuit (IBC) rental
6
PC rental 2Mbit/s link per km distribution
60
PC rental 2Mbit/s link per km trunk
18
PC rental 34Mbit/s link per km distribution
9
PC rental 34Mbit/s link per km trunk
5
PC rental 140Mbit/s link per km distribution
11
PC rental 140Mbit/s link per km trunk
10
PC rental 622Mbit/s link per km trunk
10
Point of Handover electronics
2
PC rental 64kbit/s link
32
PC rental 2Mbit/s link
22
PC rental 34Mbit/s link
2
PC rental 140Mbit/s link
6
PC rental 64kbit/s link per km transmission
64kbit/s PC link connection cct provision
22
1
2Mbit/s and above PC link connection cct provision
39
PC rental 64kbit/s link local end
23
PC rental 34Mbit/s link local end
9
PC rental 140Mbit/s link local end
8
PC rental 2Mbit/s local end copper
7
PC rental 2Mbit/s local end fibre
106
Wholesale & LAN extension services fibre etc
263
Backhaul extension services fibre etc
Wholesale & LAN extension services BNS
14
-
1,322 circuits
11,108 circuits
£984.56
2
£196.82
2
11,764 circuits
267,802 km
318,848 km
£205.23
2
£9.30
3
£9.31
3
6,069 100m
18,141 100m
£291.78
2
2,114 circuits
70,637 circuits
1,809,195 km
1,399,309 km
31,045 km
49,717 km
21,349 km
46,915 km
10,029 km
60
£12.60
18
£273.05
9
£120.97
5
£520.20
11
1,676 eq
187,696 links
£1,141.05
2
£168.09
34
130,595 links
1,893 links
£174.32
25
£1,246.82
2
£5,803.25
7
£4.02
22
987 links
5,653,602 km
553 circuits
7,251 circuits
58,805 le
2,686 le
1,437 le
26,628 le
162,792 le
102,322 le
12,967 le
- circuits
281,159 le
530,231 fibre km
SG & A partial private circuits
31
(a)
0
52,152 mm
61,779 mm
44
£33.06
10
61
13
7
10
149
Wholesale Access specific
1
£960.93
Ethernet main links
Emergency OA (999) non chargeable
1
£90.10
£200.13
Ethernet Electronics
National OA non chargeable
£51.97
£319.12
3,587,019 trans
£1,999.40
1
£5,409.66
49
£392.94
24
£3,553.49
9
£5,989.94
9
£263.18
7
£650.76
110
£2,564.33
308
134,312 mm
132,820 mm
0.074p
(9)
0 mm
(0.007p)
0.070p
(10)
0 mm
(0.007p)
110,823 mm
200,847 mm
0.044p
(5)
0 mm
(0.005p)
0.022p
2
0 mm
0.001p
133,452 mm
11,764 circuits
0.006p
0
0 mm
0.000p
£185.45
0
0 circuits
(£4.21)
1,322 circuits
11,108 circuits
£1,249.32
(1)
0 circuits
(£264.76)
£212.83
0
0 circuits
(£16.01)
11,764 circuits
267,802 km
318,848 km
£221.41
0
0 circuits
(£16.18)
£9.07
0
0 km
£9.08
0
0 km
6,069 100m
18,141 100m
£315.41
0
0 100m
0
0 100m
0
0 circuits
(£107.05)
£91.61
(1)
0 circuits
(£1.51)
£33.27
0
0 km
(£0.21)
£12.71
0
0 km
(£0.11)
£275.01
0
0 km
(£1.96)
49,717 km
21,349 km
£122.46
0
0 km
(£1.49)
£518.01
0
0 km
46,915 km
10,029 km
£199.67
0
0 km
£0.46
£965.15
0
0 km
(£4.22)
1,676 eq
187,696 links
£1,153.83
0
0 eq
(£12.78)
£185.35
(2)
0 links
(£17.26)
130,595 links
1,893 links
£190.25
(3)
0 links
(£15.93)
£1,315.53
0
0 links
(£68.71)
£6,168.16
(1)
0 links
(£364.91)
1,399,309 km
31,045 km
987 links
5,653,602 km
553 circuits
7,251 circuits
58,805 le
2,686 le
1,437 le
26,628 le
162,792 le
102,322 le
59 circuits
12,967 le
£1,094.43
-
0
14
£527.23
157
£113.98
56
(a)
32
(a)
0.000p
0
0.021p
13
52,152 mm
61,779 mm
£12.37
10
Page 110
£0.23
(£23.63)
£426.17
2,114 circuits
70,637 circuits
1,809,195 km
281,159 le
530,231 fibre km
3,587,019 trans
£50.26
£0.23
£3.89
£1.71
£2.19
0
0 km
£2,401.81
0
0 circuits
(£402.41)
£6,811.63
(10)
0 circuits
(£1,401.97)
£0.13
£407.43
(1)
0 le
£3,635.04
0
0 le
(£81.55)
£6,188.34
(1)
0 le
(£198.40)
£278.27
(£14.49)
0
0 le
£675.01
(4)
0 le
(£24.25)
£3,013.04
(45)
0 le
(£448.71)
£1,025.54
£1,093.21
14
(14)
12,908 le
(12,967) circuits
£559.55
(8)
0 le
£104.82
5
0 fibre km
(a)
0.000p
(1)
(a)
(£15.09)
£68.89
(£1,093.21)
(£32.32)
£9.16
(a)
0
0 mm
0.000p
0.021p
0
0 mm
0.000p
£2.88
34
0 trans
£9.49
Section 7 – Illustrative difference of methodology changes on Network Activity Statement
Section 7.1 – Illustrative difference of methodology changes on Network Activity Statement 2013 (continued)
Fully Allocated Cost (£m)
As reported for the year ended 31 March 2013
Total of
Average costs
operating costs
per min/unit on
and capital costs
a current cost
relating to
basis relating to
current year
current year
Volume
£m
£
Based on 11/12 methodologies
Total of
Average costs
operating costs
per min/unit on
and capital costs
a current cost
relating to
basis relating to
current year
current year
Volume
£m
£
Difference
Total of
operating costs
and capital costs
relating to
current year
Volume
£m
Average costs
per min/unit on
a current cost
basis relating to
current year
£
SMP Cost Accounting components
Routeing & records
13
MDF Hardware jumpering
179
E side copper capital
237
E side copper current
57
D side copper capital
1,304
D side copper current
220
Local exchanges general frames capital
75
Local exchanges general frames current
38
PSTN line test equipment
5
Dropwire capital & PSTN NTE
377
Residential PSTN drop maintenance
102
ISDN2 drop maintenance
2
PSTN line cards
133
ISDN2 line cards
19
Pair gain
0
ISDN2 NTE
5
Broadband line testing systems
DSLAM capital/maintenance
ADSL connections
88
195
5
Local Loop Unbundling room build
33
Local Loop Unbundling hostel rentals
41
Local Loop Unbundling hostel rentals power & vent
71
Local Loop Unbundling tie cables
13
Local Loop Unbundling systems development
32
2,912,052 lines
10,498,323 lines
25,380,248 lines
31,380,432 lines
25,380,248 lines
£4.50
15
£17.13
191
£9.36
225
£1.82
63
£51.38
1,192
31,380,432 lines
41,805,541 lines
£7.01
214
£1.80
45
44,419,476 lines
25,446,022 lines
£0.86
41
£0.20
5
24,997,742 lines
27,600,073 lines
£15.10
419
£3.66
110
1,137,834 channels
18,278,817 lines
1,137,834 channels
£2.01
3
£7.31
145
£17.46
22
18,278,817 eq
1,137,834 channels
£0.00
0
£3.77
5
35,053,425 lines
(a)
£2.50
78
(a)
199
£2.66
6
£16,133.42
30
£2,859.57
37
£4,884.75
74
£39.91
13
(a)
10
1,724,885 conns
2,028 rooms
14,338 hostels
14,338 hostels
348,940 cables
(a)
2,912,052 lines
10,359,521 lines
25,442,012 lines
31,380,432 lines
25,442,012 lines
£5.08
(2)
0 lines
(£0.58)
£18.41
(12)
138,802 lines
(£1.28)
£8.83
12
(61,764) lines
£0.53
£2.02
(6)
0 lines
(£0.20)
£4.52
112
(61,764) lines
31,380,432 lines
41,805,541 lines
£6.83
6
0 lines
£1.08
30
0 lines
£0.72
41,436,233 lines
25,446,022 lines
£1.00
(3)
2,983,243 lines
(£0.14)
£0.18
0
0 lines
£0.02
24,997,742 lines
24,428,825 lines
£16.77
(42)
0 lines
(£1.67)
(8)
3,171,248 lines
(£0.86)
1,137,834 channels
18,278,817 lines
1,137,834 channels
£46.86
£4.52
£2.25
(1)
£7.99
(12)
£19.04
(3)
18,278,817 eq
1,137,834 channels
£0.00
0
0 eq
£4.31
0
0 channels
35,053,425 lines
(a)
£2.24
10
1,724,885 conns
2,028 rooms
14,338 hostels
14,338 hostels
348,940 cables
(a)
£0.18
0 channels
(£0.24)
0 lines
(£0.68)
0 channels
(£1.58)
0 lines
£0.26
(a)
(4)
£3.73
(1)
0 conns
(£1.07)
£1,410.62
£14,722.80
(a)
£0.00
(£0.54)
(a)
3
0 rooms
£2,578.43
4
0 hostels
£281.14
£5,176.83
(3)
0 hostels
(£292.08)
£38.98
0
(a)
22
(a)
0 cables
£0.93
(a)
37
(a)
(a)
37
(a)
(a)
0
(a)
(a)
Service Centres - Provision
112
(a)
(a)
118
(a)
(a)
(6)
(a)
(a)
Sales product management
17
(a)
(a)
18
(a)
(a)
(1)
(a)
(a)
Service Centres - Assurance
29
(a)
(a)
37
(a)
(a)
(8)
(a)
£0.24
3
£19.91
155
£0.00
0
0.001p
3
Directories
Combi Card voice
3
Combi Card Broadband Access
153
Access Cards (ISDN2 services)
0
Core/Metro (voice)
3
Border gateway & signalling firewall
MSAN-POSI Voice Link
Access Cards (other services)
MSAN-METRO Connectivity Link
Core/Metro connectivity
Edge Ethernet ports
18,278,817 lines
7,722,603 lines
1,137,834 channels
236,996 mm
18,278,817 lines
7,722,603 lines
1,137,834 channels
236,996 mm
(a)
£0.24
0
0 lines
£0.00
£20.08
(2)
0 lines
£0.00
0
0 channels
0.001p
0
0 mm
0.000p
0 mm
0.000p
0 mm
0.000p
(£0.17)
£0.00
0
141,900 mm
136,980 mm
0.000p
0
141,900 mm
136,980 mm
25
(a)
(a)
28
(a)
(a)
(3)
(a)
(a)
0
(a)
(a)
7
(a)
(a)
(7)
(a)
(a)
47
(a)
(a)
63
(a)
(a)
(16)
(a)
(a)
9
(a)
(a)
9
(a)
(a)
0
(a)
(a)
0
iNode (call set up and features)
17
ATM customer interface 2Mbit/s
0
ATM customer interface 34Mbit/s
1
ATM customer interface > 155Mbit/s
4
ATM network interface
2
ATM network switching
12
(a)
0.000p
0
(a)
16
2,118 ports
803 ports
£92.26
0
£982.59
1
13,914 ports
£286.23
4
£98.13
2
£3.01
13
20,494 ports
4,130,538 usage
Page 111
0.000p
0.000p
0
0
(a)
(a)
2,118 ports
803 ports
(a)
1
£99.20
0
0 ports
(£6.94)
£1,061.78
0
0 ports
(£79.19)
13,914 ports
£307.89
0
0 ports
(£21.66)
£105.49
0
0 ports
(£7.36)
(1)
0 usage
(£0.21)
20,494 ports
4,130,538 usage
£3.22
(a)
Section 7 – Illustrative difference of methodology changes on Network Activity Statement
Section 7.1 – Illustrative difference of methodology changes on Network Activity Statement 2013 (continued)
Fully Allocated Cost (£m)
As reported for the year ended 31 March 2013
Total of
Average costs
operating costs
per min/unit on
and capital costs
a current cost
relating to
basis relating to
current year
current year
Volume
£m
Based on 11/12 methodologies
Total of
Average costs
operating costs
per min/unit on
and capital costs
a current cost
relating to
basis relating to
current year
current year
Volume
£
£m
£
£42.88
45
1,015,272 usage
(a)
51
£7,423.01
83
Difference
Total of
operating costs
and capital costs
relating to
current year
Volume
£m
Average costs
per min/unit on
a current cost
basis relating to
current year
£
SMP Cost Accounting components
Inter ATM transmissions
44
Broadband backhaul circuits (excl Virtual Paths)
52
21CN Backhaul Link & Length
82
1,015,272 usage
(a)
£43.88
121
£10.78
112
£9.96
9
20
(a)
(a)
20
(a)
(a)
0
(a)
(a)
High Tisbo Equipment Depn
2
(a)
(a)
2
(a)
(a)
0
(a)
(a)
Very High Tisbo Equipment Depn
0
(a)
(a)
0
(a)
(a)
0
(a)
(a)
Low Tisbo Excess Construction
10
(a)
(a)
10
(a)
(a)
0
(a)
(a)
AISBO Excess Construction
19
(a)
(a)
19
(a)
(a)
0
(a)
(a)
92
(a)
(a)
94
(a)
(a)
(2)
(a)
(a)
5
(a)
(a)
6
(a)
(a)
(1)
(a)
(a)
SG&A Broadband
SG&A Interconnect
Main exchange switching
(n)
ISDN30 connections
(n)
ISDN30 access
(n)
ISDN30 line cards
(n)
(n)
Access Cards (ISDN30 services)
SMP Accounting Separation components
Residual components
Roundings
Total
(1)
128
n/a
n/a
134
n/a
n/a
1,691
n/a
n/a
1,682
n/a
n/a
9
3
n/a
n/a
7
n/a
n/a
(4)
7,256
7,254
(a) This component is attributed on a % basis so no volume or unit cost is derivable.
(n) Accounting Separation components require no costs to be disclosed.
Page 112
(6)
2
(a)
(£1.00)
Low Tisbo Equipment Depn
£7,474.98
1
0 usage
(a)
11,094 circuits
11,272,969 circuits
Core/Metro (broadband)
(a)
(1)
11,094 circuits
11,272,969 circuits
(a)
0 circuits
(£51.97)
0 circuits
£0.82