BT Group plc
Detailed Attribution
Methods (DAM) 2014
15th August 2014
1
2
Contents
Section
Description
Page
Section 1
Introduction
4
Section 2
Business Overview
6
Section 3
Overview
9
Section 4.1
Except Bases
32
Section 4.2
Other Bases
50
Section 5
Activity Group Dictionary
122
Section 6
Plant Group Dictionary
132
Section 7
Network Component Allocations
206
Section 8
Data Sources
252
Section 9
Line of Business Organisational Unit Codes (OUCs)
292
Section 10
Glossary of Terms
293
Appendix A
Key Destinations (attached in Excel spreadsheet format “DAM
2014_Appendix A”)
308
Appendix B
Sectors List (attached in Excel spreadsheet format “DAM
2014_Appendix B”)
309
3
1 Introduction
In the UK, the telecommunications industry is regulated through various European Union directives, the
Communications Act 2003 (the Communications Act), Ofcom (the UK’s independent communications regulator),
and other regulations and recommendations.
1.1 Regulatory Reporting Requirements
Regulatory financial reporting obligations are imposed by Ofcom to monitor and enforce other ex-ante obligations
e.g. for cost orientation, cost recovery, price controls and no undue discrimination. We are required to demonstrate
compliance with these obligations in certain SMP markets.
1.2 The Accounting Documents
The Regulatory Financial Statements (RFS) are prepared in accordance with the Accounting Documents, where the
Accounting Documents means together the Primary Accounting Documents (PAD) and the Secondary Accounting
Documents.
The PAD sets out the framework under which the statements are to be prepared.
The Secondary Accounting Documents set out more detailed descriptions of the policies, methodologies, systems,
processes and procedures for deriving or calculating the costs, revenues, assets and liabilities underlying the RFS
and comprise the following three documents:

The Detailed Attribution Methods (DAM) - describes the processes used to derive the fully allocated costs
of BT’s network components, SMP Markets, Technical Areas and Disaggregated Activities (as applicable).

The Detailed Valuation Methodology (DVM) - describes the methods used to derive current cost
valuations.

The Long Run Incremental Cost Model: Relationship and Parameters (R&P) - describes the calculation of
the long run incremental costs for network elements.

The Wholesale Catalogue - describes the wholesale services included in the Wholesale SMP markets and
technical areas where BT has a regulatory financial reporting obligation.
1.3 The DAM
The purpose of the DAM is to:

Describe the costing principles used by BT to prepare the RFS on a fully allocated cost basis.

Describe the methods used in the Accounting Separation process to attribute revenue, costs and capital
employed to the Markets, Technical Areas and Disaggregated Activities in the RFS.

Outline the systems and processes used by BT to support Accounting Separation.
The DAM provides detailed and granular descriptions of the procedures used to apply the principles set out in the
PAD.
The DAM is structured in sections explaining the different stages of the Accounting Separation process. Accounting
Separation is the attribution of costs, revenues and capital employed to the defined Markets and Disaggregated
Activities of BT.

Section 1 - Provides an introduction and guide to using the DAM.

Section 2 - Provides an overview of the BT business, describes how the underlying financial transactions
supporting the business activities and functions recorded in the financial ledgers are grouped to provide
the starting costs, revenues, assets and liabilities used by the Accounting Separation (AS) system. This
provides the starting cost pools (‘F8 items’), grouped and presented by different areas of BT’s business
(sectors). The AS system attributes the costs, revenues, assets and liabilities to defined products and
components which aggregate into the Markets, Technical Areas and Disaggregated Activities to create a
view of BT’s financial position and results against SMP Markets.

Section 3 - Provides an overview of the AS solution, in terms of the underlying costing principles and the
conceptual flow of costs and revenues from source financial systems to the separated Markets, Technical
Areas and Disaggregated Activities to create a view of BT. It sets out the main types of cost pool used by
4
the solution, in terms of F8 items, activity groups, plant groups, network components and products, and
explains the flow of costs and revenues across the different types of cost pool. This section also provides
an overview description of each sector.

Section 4 - The base methodology dictionary provides a complete description of the attribution base
methodologies referred to in the sector tables (Appendix B) for each given base methodology, based on
the current year profit and loss accounts and closing balance sheet. In the majority of cases opening
balance sheet destinations are not materially different. Where a methodology applies to the opening
balance sheet only, the key destinations will still be shown (see Appendix A).

Section 5 - Provides an overview description of activity groups, followed by a table setting out the
Activity Groups contained in the DAM. The table shows, for each Activity Group, a high level summary of
the methodology that is applied to attribute the costs to the next cost pool (e.g. plant groups, products)
in the AS system. The main costs pool destinations can be found in the Key Destination tables (Appendix
A). The Activity Group Dictionary provides a complete description of the attribution methodologies
applicable to the Activity Groups based on the current year profit and loss accounts and closing balance
sheet. In the majority of cases the opening balance sheet destinations are not materially different.

Section 6 - Sets out the Plant Groups used in the AS system. The attribution table shows a high level
summary of the base methodology used for each Plant Group follows the overview of the Plant Groups.
The Plant Group dictionary sets out the detailed descriptions of the Plant Group attribution
methodologies. The main costs pool destinations can be found in the Appendix A key destinations table.

Section 7 - Sets out an overview of network components, followed by attribution tables. These explain
the attribution of network components and standard services to final products in the AS system.

Section 8 - Provides a dictionary of data sources.

Section 9 - Shows the Line of Business Organisational Unit Codes (LoB OUCs).

Section 10 - Glossary of terms used.

Appendix A - The key destinations table identifies the key destinations of all the markets described in
sections 4-6. This is based on the current year Profit and Loss account and closing Balance Sheet. In the
majority of cases the opening balance destinations are not materially different.

Appendix B The Sector Allocation Table identifies the base applied to each F8 code/OUC combination
Descriptions for these bases can be found in sections 4-6. Key destinations are contained in Appendix A.
5
2 Business Overview
This section provides:
•
a brief overview of our business and the regulatory financial reporting obligations.
•
a brief description of how the underlying financial transactions supporting the business activities and functions
recorded in BT Group’s financial ledgers are grouped into cost pools (‘F8 items’) to provide the starting costs,
revenues, assets and the liabilities used by the Accounting Separation (AS) system.
2.1 BT Group and Regulatory Reporting
We explained in the RFS and the PAD that we are subject to various regulatory financial reporting obligations for
Markets, Technical Areas and Disaggregated Activities (as applicable) where we are deemed to have Significant
Market Power (SMP).
We prepare the RFS which show our costs, revenues, assets and liabilities against defined regulatory Markets and
Services. The statements are prepared via the AS process and comprise a financial performance summary, review of
financial performance by groupings of markets and by individual markets, other information including the network
activity statement and the calculation of Fully Allocated Costs (FAC) based on component costs and usage factors
statement and reconciliation statements. For regulatory reporting purposes, revenue is recorded against a range of
services provided. Cost associated with operational and support activities undertaken to support the provision of
these services are recorded against sectors such as planning and development, provision and installation,
maintenance and plant support. This is explained in Section 3 of the DAM.
2.2 AS Systems and the Reporting Hierarchy
Our financial and reporting system uses a hierarchical pyramid coding structure to support the data capture and
information summation at the Line of Business (LoB) and activities level. This is explained below.
Diagram: BT’s SMP Reporting and Coding Structure
Regulatory Reporting Layer
Retail
Residual
Wholesale
SMP
Sectors
ASPIRE Reporting Layer
AS Sectors
Group Financial Accounting
Layer
GFR Lines
Financial & Management Accounting
Layer
SFR Lines
Base & Apportionment Layer
F8 Codes
Accounting Transactions Layer
GL Codes
Used in Financial &
Management Reporting
Systems
Used in Financial &
Management Reporting
Systems
Used in Feeder
Systems
C
OU
BTs_SMP_Reporting_Diagram_2_2_0910
The diagram above shows the grouping of financial accounting information from general ledger cost accounts to F8
codes and sectors. The different levels of the hierarchy are discussed below.
6
•
Accounting Transaction (GL Codes) Layer
The costs, revenues, assets and liabilities of our main business activities (within the operating businesses of BT
Retail, BT Wholesale, Openreach, BT Global Services, and other parts of the BT Group organisation) are recorded in
the group General Ledger (GL) system. There are approximately 28,000 GL Codes.
•
Base Apportionment (F8 codes) Layer
General ledger codes are grouped into ‘F8 codes’, which represent groups of similar general ledger codes. One or
many GL Codes are aggregated to an F8 code. The costs, revenues, assets and liabilities associated with an
individual F8 code (for a given Organisational Unit Code - see OUC description below) will be attributed to Products,
Plant Groups (PGs) and/ or Activity Groups (AGs) using a base methodology appropriate to the OUC that records.
There are approximately 18,000 F8 Codes.
The Regulatory Reporting system ASPIRE receives general ledger feeds at the F8 code level and attributes costs,
revenues, assets and liabilities to the regulatory Markets and Services.
•
Financial and Management Accounting (SFR Lines and Reports) Layer
General ledger codes are aggregated to Standard Financial Report (SFR) Lines. One or many GL Codes are
aggregated to a SFR line which form the basis of BT’s Financial and Management Reports used internally. The SFRs
form the basis of both Financial and Management reports. There are approximately 100 SF Reports and
approximately 8,200 SFR Lines.
•
Group Accounting (GFR Lines and Reports) Layer
SF Lines aggregate to Group Financial Reporting (GFR) Lines. One or many SFR Lines are aggregated to a GFR line.
GFR lines form the basis of BT’s Group Financial Reports, from which, BT’s external Financial Reports are produced.
There are approximately 50 GF Reports and approximately 1,510 GFR Lines.
Self-accounting Units (SAUs) not using the BT Group General Ledger (GL) system provide summarised details of
their financial accounts on a Group Financial Return (GFR), with line items from the GFR mapped to GL codes for
use in the AS system. All SAU revenues, costs and liabilities are allocated to the BT Retail Residual Market.
•
Regulatory Reporting (AS Sectors and SMP Sectors) Layer
One or many F8 codes are grouped into similar functional categories called AS sectors to make regulatory reporting
more manageable. Although sectors contain functionally similar categories of cost, an individual sector is likely to
use multiple attribution base methodologies. AS sectors can be grouped in two broad categories – Income
Statement and Balance Sheet. There are approximately 150 AS sectors.
All AS sectors point to SMP sectors. One or many AS sectors can point to a SMP sector. It is worth noting that the
pointing of AS sectors to SMP sectors for BT’s Wholesale Markets reporting are different from BT Retail Residual.
This is primarily due to the different nature of the activities carried out within Wholesale and Retail.
The AS sectors are grouped in to SMP reporting sectors to produce the Wholesale SMP Reports.
•
Organisational Unit Code (OUC)
OUCs provide a horizontal, organisational cut of the financial data in the vertical ‘GL-F8-sector’ pyramid. Costs/
revenues/assets/liabilities are recorded by OUC, at the class of work/general ledger account level.
The codes for OUCs follow a hierarchical structure, with the first level of the OUC code defining the highest level of
the organisation unit and the subsequent letters of the OUC code representing the more detailed sub-divisions
within the top-level organisation unit. For example, OUC code K, represents BT Wholesale, and code KB represents
a subsidiary organisational unit within BT Wholesale.
A sector is represented by a series of F8 codes, with OUCs showing their financial values against the different F8
codes. Each sector can be represented by a matrix of the F8-OUC combinations. The AS system looks at each F8OUC combination to identify an appropriate base attribution methodology to attribute the costs, revenues, assets
and liabilities. There are approximately 35,000 OUC codes.
F8_OUC combinations are the lowest level at which discrete cost pools are defined for the purposes of the
Accounting Separation System
F8_OUC_Combination
7
2.2.2 Attribution of BT’s financial information to Markets and Services
The DAM explains how the costs, revenues, assets and liabilities of the BT Group business are attributed to the
products of the defined regulatory Markets and Services.
OUC
F8
IV
M
KB
KU
247190
x
x
x
x
247174
x
249279
x
291016
x
297174
x
247191
J
W
x
x
etc
x
etc
F8_OUC_Diamgra
The DAM sets out for each sector the component F8/OUC codes and the base methodologies that are applied to
each F8/OUC code to attribute them to products (and/or intermediate cost pools). Several F8-OUC combinations
may share the same base, if they have similar cost behaviour.
Sector e.g. Transport
OUC
Base Ref
Summary
203980
MT MTPN
Y3
EXCEPT
Summary description of base
206210
206220
Fuel
Licences
Y
FUEL
Y3
EXCEPT
Etc.
Etc.
Etc.
F8
Description
Etc.
Ref
Sectir_Transport_v1_Diagram_0910
The base methodologies are summarised in the sector tables against the relevant F8/OUC code, and described in
detail in the Base Methodology Dictionary.
2.2.3 Scope of Document
There are approximately 40,000 separate F8/OUC combinations populated in BT’s ledgers (that is, showing a yearend balance reflecting the posting of transactions by one or more OUCs to the relevant F8 codes during the year).
Approximately 7,000 F8/OUC items account for more than 90% of the total ledger value represented by the total
population of F8/OUC items.
The DAM has been written specifically to describe the attribution of the items comprising at least 90% of the total
ledger value in absolute terms. However, actual coverage exceeds this threshold. Methodologies have been
described that are relevant to the attribution of the items that make up approximately 90% of each sector within
the ledgers. Some attribution methods apply to more than one F8/OUC combination. Therefore, there are F8/OUC
items whose attribution would be described by the methodologies included in the DAM, but which are not
specifically identified. The methodologies described cover substantially all of the revenues, costs and capital
employed recorded in the ledgers.
The document follows this principle of identifying only those material items, rather than the total population of
items that is relevant to a methodology. Key destination tables specify the destinations of at least 90% of the costs
being attributed by a methodology.
We do not document every single item of revenue, cost and capital employed because the 90% coverage applied
identifies substantially all of the different ways in which attribution is carried out.
8
3 Overview
3.1 Basis of preparation
The Regulatory Financial Statements (RFS) show costs, revenues, assets and liabilities on a current cost accounting (CCA) basis,
for the defined regulatory Markets, Technical areas and the Disaggregated activities of BT.
The source of the financial data is the central ledgers and consolidation system for BT, where financial transactions are recorded
by the organisational units within BT, supplemented by CCA adjustments as described in the Detailed Valuation Methodology
(DVM). Accounting Separation (AS) uses this information to present costs, revenues, assets and liabilities for each of the
Markets, Technical Areas and Disaggregated Activities defined for regulatory purposes.
3.1.1 Source of transactions
The historical cost, financial transactions and balances for use in the separated accounts come from two main sources:
•
The core central General Ledger (GL) system.
•
The Group Consolidation System (GCS).
Core GL system
The core BT businesses record their financial transactions on a historic cost basis in the core GL system. These ledgers are
supplemented by feeder systems that capture details at transaction level of:
•
Pay.
•
Stores.
•
Other additional costs.
Transactions relating to engineering activities are collected and posted to the ledgers at Class of Work (CoW) level. CoW specifies
the type of activity or asset type on which the engineer is engaged. Transactions for non-engineering activities are captured in
the GL against the relevant functions involved (e.g. marketing, billing, etc.).
Consolidation system for self-accounting units
The non-core BT businesses do not use BT’s core GL to record their financial transactions and instead provide details of their
financial information on a Group Financial Return (GFR). GFR follows a standard format, allowing individual GFR line items to be
mapped to a special GL code for use in the AS system.
CCA Adjustments
The current cost accounting adjustments for BT Group and other adjustments such as accounting journals posted outside the GL
system are also recorded through the GFR system. The adjustments follow a similar mapping, from the GFR to individual GL
account codes, for use in the AS system. CCA adjustments are described in detail in the DVM.
3.1.2 Gross Adjusted Costs
Costs are presented on a ‘gross adjusted basis’, i.e. this reflects all external costs together with all transfer charges between
divisions. There are two main types of transfer charges:
•
Cost transfer charges between divisions/organisational units, which go through the GLs. Such charges are eliminated in the
consolidated results, and usually in the AS framework, where they are replaced by the underlying cost.
•
Transfer charges between Markets e.g. from the Wholesale Significant Market Power (SMP) Markets to the BT Retail
Residual. Such charges are calculated and presented only within the AS framework (rather than through the GLs).
3.2 Costing principles
In order to translate the financial information of the accounting ledgers from a functional and organisational view to the
separate Markets, Technical Areas and Disaggregated Activities defined for regulatory purposes, it is necessary to attribute each
financial cost (or revenue, etc.) item to the relevant Market, Technical Areas and Disaggregated Activity.
The AS system achieves this by defining each Market and Technical Area in terms of its Disaggregated Activities (Components,
Retail Products and Wholesale Services) a number of constituent services, and attributing the source costs, revenues, assets and
9
liabilities to the relevant services. The attribution is underpinned by a strict set of costing principles as explained in the Primary
Accounting Documents.
Cost drivers or ‘bases’
This is the underlying basis on which costs are incurred, e.g. accommodation costs are incurred on the basis of floor space
requirements. The cost driver or ‘base method’ is therefore floor-space.
Allocation
The item of cost is allocated wholly to a particular Retail Product, Plant Group (PG) or Activity Group (AG), without the need to
split the underlying cost pool.
Apportionment
This is where an item of cost cannot be identified directly with one Product (or PG or AG) and needs to be split across several
cost pools on an appropriate basis. The cost driver will provide an objective basis for splitting the costs, as the cost driver will
show how the cost was caused subsequently the costs are then split in proportion to the value of the driver associated with each
subsequent cost pool.
Attribution
This is a general term encompassing both allocation and apportionment.
There are certain types of cost (e.g. the costs of running the Chairman’s Office) which do not have a causal relationship with any
Products. Additionally, at very detailed levels of reporting, cost attribution may not be possible on a strictly cost causal basis
(e.g. attribution of common sales costs to a series of similar services). In such cases, a reasonable method is used.
3.3 Conceptual model
The AS solution provides a logical structure for the attribution of costs, revenues, assets and liabilities of BT to, ultimately, the
components and Products that aggregate into:
•
Markets.
•
Technical Areas.
•
Disaggregated Activities.
•
Wholesale Services of BT.
The term cost pool is used as a generic term referring potentially to a pool of cost, revenues, assets or liabilities.
3.3.1 Attribution of GL/F8/OUCs
Costs, revenues, assets and liabilities form the starting cost pools of the attribution process. These are defined in terms of
F8/Organisational Unit Code (OUC) combinations.
An F8 code is a group of one or more similar GL codes within the core GL system. In an OUC each F8 code can be attributed
using an appropriate cost driver of ‘base methodology’. F8/OUC cost pools are allocated or apportioned to Products,
Intermediate Activities or PGs.
3.3.2 Attribution of Initial Intermediate Activity Groups (Initial IAGs)
Initial IAGs are intermediate cost pools used to collect costs relating to activities such as fleet, facilities management and
general corporate costs. The category includes the apportionment of specific activity costs for units that perform a service to
other organisation units and recover their costs through a transfer charge. The external costs of the unit supplying the services
are apportioned on the basis of an analysis of the transfer charges to the receiving units. The costs of the Initial IAGs may be
attributed to Products and support PGs.
3.3.3 Attribution of Support PGs
Support PGs are intermediate cost pools used to collect costs relating to plant overheads, such as accommodation costs for
network buildings and costs of providing power to the exchanges and transmission assets. These costs are apportioned directly
to the relevant PGs, which they support.
10
3.3.4 Attribution of PGs
PGs are intermediate cost pools used to collect costs relating to the BT Wholesale Markets. The PGs carry the capital costs and
values (depreciation, net book values) and expense items (e.g. maintenance) for specific types of network assets, as well as
other general costs allocated to PGs via Initial IAGs and support PGs. PGs are attributed to Network Components on a one to one
or one to many basis. A PG could contribute costs to many Network Components, and a Network Component could receive costs
from many PGs. Examples of PGs are Local Lines Fibre Cable (Current and Capital) and Main Digital Exchange Switch block.
3.3.5 Attribution/Charging of Network Components
Network Components collect costs from the PGs and constitute discrete parts of the network. The Network Components (which
are in some cases grouped for presentation in the RFS) are used to provide network services to Markets and Products as well as
to Other Communication Providers (OCPs). Network Components are charged to Services or OCPs via Standard Services.
Calculation of charges for Network Components may support Standard Services or be consumed directly (non Standard
Services), and the charging structure is different for each.
Standard Services are segments of the network that represent a bundle of network Components. The Standard Services provide
use of the network to both BT businesses (e.g. BT Wholesale) and OCPs.
The charge applied is calculated as:
Volume of
usage by
Product
Multiplied by
Unit
Charge
Equals
Charge Applied
ChargingofNwkComponents
3.3.6 Products and Markets
By the end of the final stage of attribution from Network Components and own use AGs to Products, all the non-network costs
and the network charges are attributed to Wholesale Services. Wholesale Services can be grouped together to represent the
distinct Markets, Technical Areas and Disaggregated Activities defined for regulatory purposes.
11
3.4 System process
BT uses a system called ASPIRE to perform the fully allocated cost attribution for AS. The system defines different categories of
costs, which are treated in a similar manner in the system. At each level of the system processing, a particular category of costs
will be emptied (attributed) to other cost pools, and usually receive no further costs itself. This causes a sequential flow of costs
across different categories at each stage of the system, with all the costs ultimately emptying into the end Product categories.
The process of cost pools emptying as the costs are attributed forwards is referred to as ‘exhaustion’.
The diagram below illustrates the main processing stages of the ASPIRE system for AS.
Diagram: Overview of ASPIRE’s main processing stages for AS
Processing levels/sequence
Attribution of
charges
General ledger feed
Group Financial
Return (GFR)
extract
Source cost centre
Revenue and cost data
Level 1
Level 2
Costs,
revenues, AG101
assets,
-106,
liabilities, AG111
at F8
OUC level
Level 3
Level 4
Level 5
Level 6
Level 7
Level 8
Level 9
Level 10
AG112
AG113
AG114
AG120
- 129
AG130
- 139
PGs
AG213
NCs
AG300s
Prods
PGs
AG300s
Prods
Other transaction data
Exhausted to:
Attribution of costs, revenue, assets and
liabilities (fully allocated costing)
Key Interfaces
AG113+ AG114+
AGs
AG112+
PGs
PGs
PGs
PGs
Prods
Prods
Prods
Prods
Prods
NCs
Prods
Price data (NCC or cost plus)
Level
8
NCs
Std &
non std
services
SystemProcess_diagram
12
Level 9
Std &
non std
services
AG300s
Prods
Level 10
AG300s
Prods
3.4.1 Key Interfaces
Different types of data are fed into ASPIRE tables from a number of sources. The diagram below illustrates the main types of
transaction data entering the ASPIRE system prior to processing:
Overview of Data entering ASPIRE
Financial Accounts Data
Non- Financial Accounts Data
Core General Ledger
(GL)
Feed
Non Core General Ledger
(GL) Feed
Bases Data
Volumes Data
- by sub- product
ASPIRE
Turnover to Product
relationship
CHART
Data_ entering_ Aspire_ 041006. vsd
KeyInterfaces
All of the above data types, except for the core GL feed are uploaded to ASPIRE via a data management and validation system
called ASSURE to ensure data integrity and maintain version control.
Financial account data
In the first stage of the system process, the cost, revenue, assets and liabilities for apportioning are brought into ASPIRE. This is
done through two main feeds:
Core GL feed
The core GL feed provides values for costs, revenues, assets and liabilities at GL account level. This covers areas of the business
that use the central accounting system and GL for BT (i.e. excluding the Self-Accounting Units). The information is input into
ASPIRE via an automatic upload.
Non-core GL feed
The non-core GL feed provides values for costs, revenues, assets and liabilities for parts of the BT business that do not use the
main central accounting systems and GL. These parts of the business (‘Self-Accounting Units’) provide financial information on
a GFR, with information reported by individual GFR line (e.g. GFR 15642 Other Operating Income - Other). The GFR
information is then updated into a system called Group Consolidation System (GCS), maintained centrally by BT Group.
Information at GFR level from GCS is translated into specific OUC and GL code references, which will be used in the ASPIRE
system. The non-core trial balance feed is then uploaded to ASPIRE (via the ASSURE system) to enable the GL codes, OUC
references and values to be populated in ASPIRE.
Other cost adjustments such as CCA adjustments and accounting journals are also entered into ASPIRE via the non-core GL
feed.
GL accounts are the lowest level at which financial information is brought into ASPIRE. A CHART file is fed into ASPIRE, which
sets out a mapping of GL accounts to F8 codes, sectors, transaction types etc. This is done through a series of markers, which
enable the system to track and report results against a number of views:
13
Diagram: Overview of a CHART file which is fed into ASPIRE
Sub transaction
type
CID10
CID7
Key
CID
Product Types
K
CID1
Transaction type
CID8
F8 Code
Core/ Non-
SFR Sector
CID2
CID3
Finance type
CID4
CID5
Sub Sector
CID9
CID6
(LRIC marker)
SFR Line
Direct Indirect
Core
Indicator
Ownership
–
Central Information Database (see Data Source Section)
Non-financial account data
In addition to the basic financial data in ASPIRE, volume data and other non-financial data for base attribution methodologies
are entered. For example, data on the square metre usage of different buildings by different activities would be converted into a
set of percentages (representing the proportion of total space used by each activity) and entered into ASPIRE, for use in the
apportionment of accommodation costs on the basis of floor space usage.
Base and volumes information comes from a variety of sources (e.g. Core Transmission Costing System (CTCS) and Call Statistics
Centralisation System (CSCS) for Product volume data).
3.4.2 System processing levels
Level 1 (Fully Allocated Cost (FAC))
The source cost pools at level 1 are the F8/OUC combinations of cost, revenues, assets and liabilities including current cost
adjustments.
F8/OUC combinations for revenue are allocated directly to Products and activities at level 1. F8/OUC combinations for costs,
assets and liabilities are allocated to subsequent cost pools and/or Products using a number of possible methods.
The AS solution uses the following types of method, which are processed in the following order by the system:
Attributions using ‘external data’ base methodologies:
•
Allocation directly to a specified cost pool on a one to one basis.
•
Apportionment to subsequent cost pools on the basis of non-financial data.
•
Apportionment of overheads of certain OUCs to subsequent cost pools using specific information.
•
Attributions based on results of previous apportionments by the system.
•
Apportionment to subsequent cost pools in proportion to the pay costs (per pay - type F8 codes) received by those cost
pools.
•
Apportionment to subsequent cost pools in proportion to a specific type of pay costs (per specified restricted pay - type F8
codes e.g. maintenance pay F8 codes) received by those cost pools.
•
Apportionment to subsequent cost pools on the basis of previously apportioned costs pan-divisional.
Level 2 (FAC)
The IAGs (AGs 101 and 106) are attributed to subsequent AGs, PGs and/or Products.
Levels 3 – 5 (FAC)
At level 3, AG 112 Corporate Overhead Costs are apportioned to subsequent AGs, PGs and/or Products. This is followed by the
apportionment of AG 113 Total Liquid Funds and Interest (cash and bank balances, short-term investments and borrowings,
etc.) at level 4, and AG 114 Non-Core residual balances at level 5.
Level 6 (FAC)
14
At level 6, the support PGs and Liquid Funds (Network) are apportioned to the PGs to which they provide support.
The Activity Group AG401-AG415 [the driver AG’s] is apportioned to the PGs to which they provide support.
Level 7 (FAC)
At level 7, the intermediate retail activities are apportioned to the Products driving the retail overheads.
Level 8 (FAC)
Level 8 performs the attribution of PGs to network components. This takes place over a number of discrete stages in the
Network Cost Apportionment Module (NCAM) of the system:
•
PGs are assigned to network components using apportionment percentages held in fixed base tables.
The key stages of processing for Network charges, which also start at level 8 in the system, are as follows:
Level 8.1 (Network charges)
Level 8.1 performs the calculation of charges by Network Components, using the following data source/s:
•
Network Components used in Standard Services - prices are taken from price lists outside the system.
•
Network Components used in Non Standard Services - prices are calculated (outside this module) by taking the Fully
Allocated Costs (FACs) of network Components (per the output from the Fully Allocated Costing (FAC) module), with the
price calculated as cost plus a return on capital employed (including network own use).
The processing level 8.2 attributes Network Components to Standard Services (or Non Standard Services) based on the volume
of usage by the Standard or Non Standard Services.
Level 8.5 Openreach Part Services
At level 8.7 all Network components have been fully allocated to services.
3.4.3 Controls
There are a number of controls in the AS system to ensure the accuracy and completeness of the results. The key controls
include:
AS data vetting system
All data entry to the ASPIRE system, except the direct interfaces from the GL, takes place through the ASSURE system. The
ASSURE system manages version control and improves data integrity. Data is entered or loaded into ASSURE via a bespoke user
interface system, and can be managed and reworked in a variety of ways. Once a table has been updated, it is changed from a
‘Local’ to ‘Global’ phase. It cannot then be re-edited unless it is changed back to ‘Local’ by the Run Control Manager, which
helps to ensure data integrity. Once data has been collected from all the users it is submitted to an ASPIRE run and cannot be
altered after that point.
Specification of data sets for runs
Each run of the system is given a unique reference, which dictates the combination of data sets and reference data to be used in
the run. These are determined from electronic control sheets to effectively ‘commission’ the run.
Completeness of processing
ASPIRE produces a series of ‘probity reports’ to show the completeness of processing at each level of the system.
3.4.4 Self Accounting Units
Revenue, costs and net assets from Self Accounting Units (SAUs) are attributed directly to the Retail Residual activity with the
exception of Liquid Funds transactions e.g. cash, short term borrowings, short term investments and net interest payable, which
are apportioned to AG113.
3.5 Transfer charges as a basis for cost attribution
A number of the individual methodology/base descriptions set out in Section 4 (Base Methodology Dictionary) refer to the use
of an internal transfer charge destination as the basis for attribution of the actual cost underlying the transfer charge within the
AS process. This section explains the rationale for using this basis.
The purpose of transfer charging is to:
15
•
Enable customer-facing divisions, which are responsible for their own profitability, to receive a correct allocation of
income and expenditure.
•
Enable support functions to charge for their services to other group units.
•
Enable control to be exercised over use of key resources.
•
Maintain proper control in accounting units of certain balance sheet items.
There is a well-established process for the recording of transfer charges between organisational units, and for the monitoring
and control by each unit to ensure that the amount of the charge is properly stated in accordance with the transfer charge
agreement, and that the amounts are recorded in the correct organisational unit.
Within the AS process, the transfer charge amounts recorded by each unit are replaced with the actual cost underlying the
charge, and for which the charge is made. The actual cost is then attributed consistent with the treatment of the transfer
charge. This occurs principally in respect of the following types of cost and is attributed on a cost-causal basis:
•
Motor transport – charged on the basis of the number and types of vehicles used by each OUC.
•
Computing – charged on a monthly fixed charged, taking account of variations in volumes e.g. a reduction in volumes will
result in lower charges.
•
Accommodation – charged on the basis of floor space occupied by each organisational unit, taking account of the
variations in underlying cost (e.g. a central London office space being charged at a higher rate than an office space in a
rural location).
3.6 Use of System Generated Bases
In some instances, the regulatory accounting process uses previously attributed costs as the basis for further cost attribution.
These bases are system generated. A report is run from the accounting system that shows how costs have been attributed to
Plant Groups, so that we know what proportion of previously attributed costs has been attributed to Plant Groups 1, Plant
Groups 2 etc. The costs subject to the system generated base are then attributed to Plant Groups 1, 2 etc. in these same
proportions. For example, supervisory and management labour costs are considered to be incurred in support of the range of
activities supervised and/or managed. Accordingly, the supervisory pay costs are attributed as an overhead of the underlying
directly apportioned costs.
If an OUC, for example PQR1 is engaged in maintenance activity, and the pay costs that result from such activity are attributed
to Plant Groups 1 and 2 in the ratio 60:40, then the supervisory costs incurred in OUC PQR are also attributed to Plant Groups 1
and 2 in the same 60:40 ratio. The system generates the base because it is used to determine the 60:40 split of the underlying
maintenance costs incurred by OUC PQR1.The system base is generated using data designators..
3.6.1 Apportioned to specific cost pools on the basis of previously apportioned costs pan-divisionally
These bases (known as Rule Type 12s in the ASPIRE System) apportion group costs, revenues and capital employed across
multiple business units. These bases are assigned two markers that govern:
a) The Primary Data Designator 1 (DD1) – Identifies the income/cost transactions the system should draw upon to calculate the
appropriate base.
Primary
Designator
Transactions drawn upon
Cost type to be driven
CAPEXP
All non-pay capital additions (purchases of
non-current assets)
Capital expenditure payables
DTTCP
All Trade Receivables ledgered by BT during
the year
Balance Sheet bad debts
NCOFADA
Transmission Depreciation and non-current
assets
Depreciation Core Transmission: Cable & Other
NCOFADM
Apparatus Depreciation and non-current
assets
Depreciation Apparatus
NCOFAEA
Amortisation and non-current assets
Depreciation Software
OPEACN
Accommodation costs
Sundry receivables and payables arising from
16
Primary
Designator
Transactions drawn upon
Cost type to be driven
accommodation costs
OPECST
External operating costs excluding pay,
depreciation and capital additions
VAT related payables
OPEOTH
Total operating costs, excluding
depreciation and pay costs
Prepayments
OPEPST
External operating costs, excluding
depreciation, pay and POAS
Miscellaneous trade payables
OPEXPS
All operating costs, excluding depreciation
incurred by BT during the year
Prepayments receivables
REDUND
All redundancy and new start pay costs
Redundancy accruals
TOTPAY
Total capital and current pay costs
Payroll related receivables and payables
b) The Secondary Data Designator 2 – Identifies the AS cost pools to which the divisional balances should be apportioned.
Secondary
Designator
Destinations of previously attributed relevant costs (e.g. accommodation costs, payroll costs) to be
taken into account in deriving the base
ALA
Majority of all Products, AGs and PGs excluding Openreach PGs
ALL
All AS cost pools excluding Openreach PGs
ALLA
All AS cost pools
COR
Substantially all core Products and PGs excluding Openreach PGs
CORA
Substantially all core Products and PGs
ORP
All Openreach cost pools
PENA
All units in the BT Pension scheme i.e. all UK specific Products, e.g. core Products and PGs
SYBA
All units in the BT Sharesave scheme i.e. all UK specific Products, e.g. core Products and PGs
3.6.2 Apportioned on the basis of pay costs
System generated pay bases can draw on previously apportioned pay costs in a variety of ways. For example the TOTPAY pan
divisional base described in section 3.6.1 draws on all pay costs on a pan divisional basis BT wide. Another type of base (known
as a Rule Type 6 in ASPIRE) draws on previously apportioned pay costs specific to a Line of business. Using this base it is also
possible to restrict the calculation to specific parts of a Line of Business drawing on previously apportioned costs within a
defined organisational range (exceptional OUCs are cost pools whose costs are attributed using different bases compared to the
“standard” methodology used by other OUCs for any give cost type).
The table below lists all the major Rule Type 6 bases.
Designator
Procedure
FTD
This base is compiled from previously allocated Maintenance pay F8 codes, (excluding exceptional OUC
pay)
FTK
This base is compiled from previously allocated Provision and Installation and Maintenance pay F8 codes
17
(excluding non-core pay and exceptional OUC pay)
This base is compiled from the previously allocated Capital and Current pay F8 codes (excluding non-core
pay and exceptional OUC pay)
FTQ
A further type of pay base is known as a Rule Type 4 in the ASPIRE system. This base is similar to the Rule Type 6 base but draws
upon apportioned pay within specific OUCs including exceptional OUCs. This RT4 pay base has one data designator called PCT.
The PCT designator offers the ability of specifying a range of Wholesale, Openreach, Retail and Global Services cost pools to
which the cost should be apportioned. This type of base can be used where the engineering Travel and Subsistence of certain
OUCs has to be apportioned over a limited range of PGs using a pay base specific to the PGs supported by those units.
3.7 Sectors
We define our main activities in terms of ‘sectors’ for reporting purposes. The sectors show the:
•
Main types of services we provided - with revenue recorded against these services.
•
Main functional activities we perform - with operating costs incurred against these activities.
•
Main non-current assets underpinning our activities - with fixed asset values and costs recorded against these assets.
•
Other assets, liabilities and provisions that we incur in support of our services and activities.
There are two types of reporting sectors:
a) Internally reported ASPIRE sectors
Each of the internally reported sectors contains a number of F8 codes, which represent groups of GL codes for costs, revenue,
assets and liabilities. The F8 codes provide the starting point for the attribution of costs, revenues, assets and liabilities in the AS
system.
b) Externally reported sectors
F8 codes in an ASPIRE sector are attributed to Wholesale services and Retail products using specific bases. Once revenues and
costs are attributed, each service can still be reported by ASPIRE sector. Wholesale ASPIRE sectors are further grouped into
higher level sectors for external reporting purposes. We provide a mapping of ASPIRE sectors into reported Wholesale markets
in Section 3.7.1.2.
3.7.1 Sector Allocations
This section provides a description of ASPIRE sectors covering 90% of the absolute value of the cost allocation for each sector
and details of cost booked. We separately include in Appendix B a table which shows the allocations from the F8 cost or income
pools in each sector with a summary description of the base allocation method. Detailed descriptions of each base are provided
in sections 4, 5 and 6.
3.7.1.1 Revenue
Revenue is grouped into the following sectors and all relate to Retail activities:
Ref
AA
AU
AW
Sector Description
Other Revenue
Supply of Service Out - Prod Specific
Intra-group Elimination
3.7.1.2 Operating Costs and Balance Sheet Sectors
This section describes the operating costs and balance sheet sectors relating to activities that we provides to our customers.
Provision/Maintenance
Provision/Maintenance consists of the following ASPIRE sectors. The most material cost relates to D-side copper which is
apportioned on the basis of the number of lines.
ASPIRE
sector
Description
Includes:
B1
Provision and Installation
Installation activities such as the physical installation of network equipment,
cable and/or customer premises equipment to provide network connectivity
18
and other services to customers.
Provision activities such as work to activate and enable the service to a
customer. This may involve software configuration to activate or de-activate
particular services, using the underlying physical equipment and network
provided through installation activities.
B2
Maintenance
Costs to operate our network in good working condition to meet service
requirements such as performing activities to test, maintain and repair the
network e.g. scheduled or planned maintenance of particular network assets
or ad hoc maintenance problems reported by BT staff or customers.
Network Support
Network Support consists of the ASPIRE sectors below. The key drivers for the apportionment of network support costs include
pay, the relative floor space occupied by fixed assets and the current cost replacement value of assets.
ASPIRE
sector
BK
Description
Includes:
Plant Support
The costs of activities undertaken to support the running of our Network. E.g.
Government levied business rates payable on BT Network installations and
specialised estates such as telephone exchanges, radio stations; Coaching pay
costs booked by Customer Service Coach (CSC) staff; Transmission Repair and
Control pay costs on all core transmission equipment and private circuits; Pay
costs for the provision, re-arrangement or cessation of network services; Pay
costs relating to plant protection and inspection associated with statutory
notices; e.g. inspection of low voltage overhead power crossing clearance;
and miscellaneous support work costs e.g. the cost of installation (and
subsequent recovery) of emergency plant incorporated in the network at the
time of failure of other plant.
General Support
General Support consists of the ASPIRE sectors below. The key drivers for the apportionment of General Support include pay
costs and activity surveys.
ASPIRE
sector
Description
Includes:
B0
General Support
Staff costs for BT people in the UK transition centre or completing project
work. Other costs related to computing, security, mobile and general network
maintenance. Also includes cost for payments relating to service level
guarantee scheme, wayleaves payments in respect of network plant and the
Ofcom administration fee.
B4
Planning and Development
Costs relating to the planning of the network and the development of new
technologies and service offerings e.g. pay costs for operational planning and
planning agency staff and research and development contracts.
B6
Supplies
Costs associated with the procurement of materials and services (to support
business operations) and the issuing of supplies from stores e.g. outsourcing
of finance and accounting work, logistics and procurement pay costs, freight
and carriage costs of items held in stores, tools and small items.
B7
Transport
Costs associated with vehicles e.g. costs of acquiring, maintaining, leasing,
managing and retiring our fleet of vehicles.
BA
Computing
Mainly BT TSO costs re-charged to the rest of BT Group for their use of
services such as computer operations, research and development and user
support to our employees e.g. installing, setting up computers and helpdesk
support.
BB
Customer Service
Costs associated with customer service activities to maintain customer
satisfaction e.g. call centre management and customer service field
19
operations such as faults and maintenance tests.
BE
Personnel and Administration
Costs associated with the provision of personnel services e.g. recruitment,
release of staff/redundancies, development and implementation of
performance management processes and other human resources (HR)
support activities.
BV
Customer Support
Costs associated with performing diagnostic tests in support of maintenance
and repair work and operation of the work manager system to schedule and
control repair and maintenance work undertaken by BT engineers.
General Management
General Management consists of the ASPIRE sectors below. The key drivers are activity surveys and pay costs.
ASPIRE
sector
Description
Includes:
BF
General Management and Other
Costs associated with general management activities and other general
expenses e.g. New Start leaver payments, General management pay costs for
board members for business units, senior managers and support staff working
on general management activities; General management and other
incidentals such as costs for conference facilities; General legal charges, Group
insurance charges, Corporate provisions, and operating costs incurred by our
non-core businesses (i.e. subsidiaries, self-accounting units, etc.).
B5
Operator Services
Costs associated with operator assistance (OA) services, emergency calls and
directory enquiry (DQ) services.
Finance and Billing
Finance and Billing consists of the ASPIRE sectors below. The key drivers for the apportionment of Finance and Billing include
activity surveys and pay costs.
ASPIRE
sector
B9
Description
Includes:
Finance and Billing
Costs incurred from various activities of a financial nature, such as budget
building and management reporting, and costs incurred to generate a bill for
the customer and to collect payment. Accounting and general finance
activities include financial and management accounting, budgeting,
forecasting and payroll processing. Billing activities include customer service,
billing and credit control; bad debt costs and post office handling costs.
20
Accommodation
Accommodation sector consists of the following ASPIRE sectors. Accommodation costs are mainly apportioned based on the use
of floor space and utilities.
ASPIRE
sector
BC
Description
Includes:
Accommodation
Costs incurred for buildings maintenance and decoration of sites and
buildings, costs of rent payable to landlords on buildings occupied by BT,
costs of business rates on land and buildings, building electricity supply costs
in both operational and office buildings and payments to external contractors
for cleaning services in BT accommodation.
Bad Debts
Bad debts include costs associated with writing off amounts that cannot be collected from customers.
ASPIRE
sector
BW
Description
Bad Debts
Includes:
The internal and external costs associated with writing off amounts that
cannot be collected from customers. The majority of these costs relate to the
Retail Residual market.
Other Costs
Other Costs consists of the ASPIRE sectors below. The key drivers include the pence per minute charging of the other operators
for BT traffic on their network.
ASPIRE
sector
Description
Includes:
B8
Marketing and Sales
Costs to retain and win business from existing, new business and retail
customers. E.g. conducting market research to gain intelligence on BT’s
markets and understanding the demands of our customers and competitor
services; providing marketing services such as the design, planning and
implementation of marketing activities, publicity and promotions; managing
contact with customers and handling customer orders such as understanding
the specific needs of the customers, confirming their credit vetting, and
determining the feasibility of meeting the order requirements.
BG
SLRC Variance
Cost variances between actual labour costs and the standard rates used for
management costing purposes.
BU
Elimination of Intra-group
Transactions between BT group businesses.
Other Operating Income
Other operating income relating to non-telecommunications services and
hence separately recorded from BT’s core Revenue (calls, connections and
rental charges etc.). This mainly consists of profits on the disposal of land,
buildings and sale of scrap copper cables. There is also smaller sundry other
income categories.
C2
Payments to OCP
Payments made to OCPs for use of their network e.g. where BT carries a call
originating from a BT customer but terminating on a mobile phone, BT makes
a payment to the Operator for carrying the call over their network. Payments
may also arise from instances of call termination where BT use OCPs to
terminate a call, transit traffic where BT carries traffic over its network for part
of a call, but also uses another operator’s network. Payments are also made
for Premium Rate Services (PRS) where BT customers make calls to the
premium rate service telephone numbers of other operators and calls to BT
Freephone numbers.
C3
Payments to OA
Same as sector C2, but for International CPs.
C1
21
ASPIRE
sector
Description
Includes:
C7
Internal Product Charge from Core
Transfer charges for Products used internally within BT. For internal
management purposes, BT runs a 'transfer-charging' process. GL codes for
the transfer charges are set up as matched pairs, one for the charge out and
one for the charge in. These GL codes are associated with F8 codes. Therefore
there will be matching pairs of F8 codes, one for the charge out (F8 codes
beginning with ‘24’) and one for the charge in (F8 codes beginning with ‘28’).
EC
Other Intangible Asset
Identifiable intangible assets such as goodwill and indefinite life assets.
F0
Specific item interest
The net amount of interest payable and receivable by BT on its bank balance
which relates to specific items e.g. pensions.
F1
Employee Profit Sharing
The cost of provisions made for payments under the employee profit sharing
scheme.
F2
Net Short Term Interest
The net amount of short term interest payable and receivable by BT on its
bank balances.
F3
Associated Companies
The share of profit or loss before tax of associated undertaking and the profit
and loss account charges for the amortisation of goodwill arising from the
acquisition of subsidiary undertakings.
T3
Divisional Supply Service Out
Internal trading for BT Basic / Social telephony, billing services, directories
billing, retail billing to Redcare. (Costs transfer out)
U3
Divisional Sup Service In
Internal trading for BT Basic / Social telephony, billing services, directories
billing, retail billing to Redcare. (Costs transfer in)
F4
Corporation Tax
The current year corporation tax charge for BT and subsidiaries, as well as
prior year adjustments.
F5
Deferred Tax
The current year deferred tax charge and prior year adjustments.
Depreciation
Depreciation is analysed between land and buildings, access, switch and transmission and other (including network power,
computers and software). This is described in the individual asset sectors below.
The key drivers are engineering models and direct mapping of BT classes of work to network components and then onto the
appropriate service, based on usage factors and actual service volumes.
Balance Sheet
Land & Buildings
This sector contains the asset values that are booked to BT Classes of Work for land and buildings, including freehold, long
leases and short leases. The sector includes corporate office and network buildings owned by BT. Asset values are mainly
apportioned based on the use of floor space and utilities.
ASPIRE
sector
Description
Includes:
The asset values and depreciation for Network Plant Accommodation
necessary for the operation of network equipment e.g. ventilation and
cooling plant. Specific assets held within this sector (by CoW) include:
DF
Accommodation Plant Net
•
ACPM - Accommodation Plant, Equipment-Related - Motor Transport
•
ACPS - Accommodation Plant, Security for the provision and installation
of security equipment.
22
DP
•
ACPR - Accommodation Communication Plant Rooms.
•
ACPA - Accommodation Plant Access Services Division such as the cost of
construction provision, installation and recovery of ASD (i.e. Openreach)
network equipment-related plant (also known as accommodation plant).
•
ACPN - Accommodation Plant, Equipment Related - Network
Operational Buildings.
•
ACPC - Accommodation Plant - Computer Centres.
The asset values for land analysed between historic cost values and the CCA
adjustments applied to provide a current cost valuation of the assets.
Land
The main classes of work against which land values are recorded are land
freehold, land long lease and land short lease.
The asset values and depreciation for buildings fixed assets.
DQ
Buildings relate to the freehold, long leasehold and short leasehold buildings
that we own such as corporate office building, our shops and service centres,
and network buildings (e.g. exchange buildings) that we own.
Buildings
Costs and depreciation costs for accommodation plant.
DR
Accommodation Plant
Accommodation plant is held in our freehold, long leasehold and short
leasehold buildings, and contains asset items such as furniture and sundry
other items used in the buildings e.g. AFH- Accommodation Plant in our
Freehold buildings, ALL - Accommodation Plant in our Long lease buildings
and ASL - Accommodation Plant in our Short lease, buildings.
Access - Copper
This sector contains the asset values for access copper (all the copper cables in the access network and all other necessary
equipment required to carry signals between the user and the exchange). It includes 'Main' Copper and 'Distribution' Copper, as
illustrated in the diagram below. The key driver is the direct mapping of Classes of Work (CoW) to network components and then
onto the appropriate service based on usage factors and actual service volumes.
Local
Exchange
Primary Connection
Point “PCP”
Main Copper
CUSTOMER PREMISES
Distribution
Copper
SectorD2AccessCopper
The sector consists of:
ASPIRE
sector
D2
Description
Access: Copper
Includes:
•
LDC – Construction, Local Distribution Cable for the provision or recovery
of Access Copper Distribution and Branch Cables applicable to the copper
build programme. This covers all work to increase the capacity of the
network. Excludes duct.
•
LDCR - Renewal, Local Line Copper Distribution Cable for the
replacement of Access network metallic distribution and branch cables.
•
LMC - Construction, Local/Main Exchange-side Cable relating to the
provision or recovery of Access copper main cables to increase the
capacity of the network.
•
LMCR – Renewal, Local Line Copper Main Cable for the replacement of
23
Access network metallic main cables and ancillary plant as a result of a
fault.
•
ADSL – costs of contract, store and labour for the Construction of Digital
Subscriber-line.
•
NWB/NWR - Provision and Installation of business and residential
Exchange lines.
Access – Fibre
This sector contains the asset values and depreciation for access fibre and radio. The key driver is the mapping of CoW to
network components and then onto the appropriate service based on usage factors and actual service volumes.
ASPIRE
sector
Description
Includes:
The asset values and depreciation for Access Fibre (optical fibre cables in the
access network) and Access Radio (cellular, microwave and satellite radio
systems used to connect the user and the exchange). This includes costs
relating to:
D1
•
LFDC and LFSC - Construction of Local Line Optical Fibre Spine and
Distribution Cable such as the provision, re-arrangement and recovery of
optical fibre cable, blown fibre tubing, blown fibre bundle, and sub duct
in the access fibre network.
•
LFXE - Construction of Local Line of Exchange Service Module.
•
LFME - Construction of Local Network Service Module Equipment.
•
TPWA - Construction of Access Radio Systems.
Access: Fibre and Radio
Access – Duct
This sector contains the asset and depreciation values for duct. Duct is a pipe, tube or conduit through which underground
copper or fibre cables are passed. Duct in the network is split into 'main'/'Exchange Side' (Class of Work LMD) and 'Distribution'
(Class of Work LDD), Main Underground Duct (Class of Work MUD) and Core Junction Duct (Class of Work CJD). The fibre
Network is split into similar sections; the Exchange side is known as ‘Spine Fibre’ and the Distribution side is known as
Distribution Fibre and the main is Core Fibre. The key driver is a duct occupancy model that allocates CoW to network cable
components and then onto the appropriate service based on usage factors and actual service volumes.
ASPIRE
sector
Description
Includes:
Asset values and depreciation for Access Duct. Specific assets include the
costs of provision or recovery of:
• LDD - Construction of Local Distribution Duct for Copper Cable.
• LMD - Construction, Local main (Exchange-side) Duct for Copper.
• LDR - Renewal, Local line Duct for Copper Cable (either Main or
Distribution) to replace or partially replace duct for Access copper cables.
D3 & DB
Access: Duct
Core Transmission: Duct
• LFD - Construction, Local Duct for Optical Fibre Cable in the Access Fibre
Network.
• LFD - Construction, Local Duct for Optical Fibre Cable in the Access Fibre
Network.
• MUD/MUDR - Construction/Renewal of Backhaul/Inner Core Duct. This
asset class covers the provision and recovery/renewal of Backhaul/Inner Core
Duct. Construction covers all Core Network duct work.
• CJD/CJDR - Construction/Renewal of Backhaul/Inner Core Duct. This asset
class covers the provision and recovery/renewal of Core network duct.
Switch
24
This sector contains the asset values and depreciation for switching equipment located in BT exchanges and provides the
switching function of telephone networks. The key drivers are engineering models that allocate CoW to network component and
then onto the appropriate service based on usage factors and actual service volumes.
ASPIRE
sector
Description
Includes:
The asset values and depreciation for:
D4
•
Digital Local Exchanges LDX/LYX - Construction, Local Digital Exchange.
This asset class covers all equipment and associated costs incurred as part
of basic exchange provision, extension, or re-arrangement. CoW LDX for
Digital Local Exchanges manufactured by System X, LYX for Digital Local
Exchanges manufactured by Ericsson.
•
Main Distribution Frames LMDF - Construction, MDF for exchanges. This
asset class covers the provision, extension, upgrade, replacement, rearrangement and recovery of MDFs connected with Inland (BTUK)
telephone exchanges. MDFs are those distribution frames providing
direct interface with external circuits terminations (customer or other
exchanges).
•
DMC - Construction Operator Service System - Provision and recovery of
operating access, Automatic Voice Response (AVR), Directory Assistance
System and Operator Keyboard Display Terminal equipment controlled
by Operator Services.
Local Exchanges: Digital
The asset values and depreciation for the provision, rearrangement, recovery
and upgrade of:
D8
DC
•
MDX - Main Network Switching Digital which are digital exchanges
providing the certain functions to digital traffic e.g. setting up and
clearing down calls, switching traffic and signalling to other exchanges
and subscribers.
•
NGS - Next Generation Switch which is a new form of switch. There are
two types: one using traditional circuit switching technology the other a
hybrid using ATM packet switching technology.
Main Exchanges
Intelligent Networks
The asset values and depreciation for the Intelligent Networks Platform that
allows functionality to be distributed flexibly at a variety of nodes on and off
the network and allows the architecture to be modified to control the
services. The 'Intelligent Network' provides network functionality beyond
basic switching. Specific assets include:
•
Costs of construction of the Intelligent Networks Platform (INC)
•
Costs of the Signalling Network and Interconnect (SIGNI) including
Signalling Transfer Point (STP) and Signalling Point Relay (STP) switches
and Signalling Traffic Management (STMS) equipment.
25
Transmission
This sector contains the asset values for transmission. Transmission includes Core Transmission Synchronous Digital Hierarchy
(SDH), Plesiochronous Digital Hierarchy (PDH), Asynchronous Transfer Mode (ATM), Cables and Repeaters.
The Core transmission network is used to link exchanges. For AS purposes the Core Transmission network is split into the Core
Distribution network and the Core trunk network, illustrated below:
Access
Network
Cabinet
PCP
Core
Distribution
Local
Exchange
Core Trunk
Main
(DMSU)
Main
(DMSU)
SectorDaCoreTransmission
ASPIRE
sector
DA
DD
DK
Description
Core Transmission: Cable and
Other
Includes:
•
SDH – Costs of provision and re-arrangement of Construction of
Synchronous Digital Hierarchy transmission equipment. SDH is a key
element of BT's core transmission network.
•
ATM – capital expenditure for Asynchronous Transfer Mode platform
equipment. ATM (also referred to as Broadband Integrated Services
Digital Network (ISDN) is a fast, cell-switched technology. All broadband
transmissions (whether audio, data, imaging or video) are divided into a
series of cells and routed across an ATM network consisting of links
connected by ATM switches.
•
MUC – costs associated with the Construction of Main Underground
(Core) Cable to increase the capacity of the network.
•
CJF – costs associated with the Construction of Core Optical Fibre Cable
in the Core Network.
•
CRF – costs associated with the Construction of Repeaters, Optical Fibre
in the Core Network.
•
CRD – costs associated with the Construction of repeaters, digital, nonoptical in the Core Network.
•
NCRR - International Radio and Repeaters. This asset class is used for
Earth Station Capital expenditure on Broadcast Services or Shared
Infrastructure Earth Station Assets. The asset class includes Satellite Earth
Stations: mobile satellite dishes, small fixed dish systems and radio
equipment at Cable or earth station. It also includes microwave links
used for Broadcast Services or share infrastructure.
•
DTTM - Construction of Customer Wideband Services. This asset class
covers contract, stores and labour for the construction, installation,
commissioning, replacement, re-arrangement of equipment at local
exchanges and customer’s premises to carry wideband services to
customers such as Wideband bearer electronics to support Kilostream
service and Access SDH and test equipment for testing and maintenance
of customer’s wideband services.
•
DTTK - Construction of Kilostream/Automatic cross Connect Equipment
(ACE) Services. This asset class covers contract, stores and labour for the
construction, installation, commissioning replacement, re-arrangement
of Kilostream core network equipment for Kilostream Private Circuits e.g.
ACE, Multiplexing Site Units (MSU) and Equipment Network Access
(ENA) Contract, stores and labour for the work associated with the
Analogue Offload Programme, and supply and installation of all
customer end related equipment used for Kilostream Private Circuits
(e.g. Line cards, Modern Units, and Network Terminating Units) and
International Transmission
Private Circuits and SMDS
26
includes Cost of stores or other materials ordered for the provision of
Kilostream service (e.g. Line Cards, modem units, NTU) and the racking
and cabling for Kilostream core network equipment.
DT
21st Century Network
•
DTTS - Construction of Customer Wideband Services. This asset class
covers construction, provision, installation, commissioning, replacement,
re-arrangement or recovery of electronic equipment (but not service) for
the various Short Haul Data Services (SHDS).
•
DTTW - This asset class covers cost of provisions and such as stores and
labour for the construction, installation, commissioning, replacement
and upgrade of equipment at BT local exchanges and customers
premises.
•
DTTSW - Construction of SHDS links. Construction, provision,
installation, commissioning and replacement, electronic equipment for
products incorporating SHDS equipment.
•
MSAN (Multi Service Access Nodes) - provide customer access into the
network for Voice, Broadband and some Connectivity via line-cards and
the traffic generated is sent to Metro Nodes for switching. This can be via
other MSANs.
•
Metro/Core Nodes - Core Nodes are a special type of Metro Node where
there is a mesh or net of transmission between them. Most Core nodes
are connected to all other Core Nodes. Metro Nodes switch traffic and
contain the intelligence to direct its path. All traffic will traverse the
Metro Node to some degree whether it falls into the category of Voice,
Broadband or Connectivity.
•
21C WDM Transmission (Wave Division Multiplexing).
•
i-Nodes (Call Servers) - i-Nodes are used just for Voice customers and
contain intelligence for numbering and the intelligence for routing i.e.
Call Set-Up and Network Features.
•
Ethernet Switches - Ethernet Switches are for Connectivity access into
the network and are located at sites that can take advantage of WDM
transmission to send and receive traffic to the Metro node.
•
CCI (Common Capability Intelligence) - Common Capability Intelligence is
a set of re-usable components used to build our products and services. It
includes session management and intelligence voice routing,
authentication of customer identity, identification of customer location
and instant messaging.
The key drivers are engineering inventories and models that allocate CoW to network components and then onto the
appropriate service based on usage factors and actual service volumes.
Other
This sector contains the asset values for a range of assets used by BT businesses including categories such as Software, Motor
Transport and 21CN. The key drivers are surveys, engineering models and direct mapping of CoW to network components and
then onto the appropriate service based on usage factors and actual service volumes.
ASPIRE
sector
Description
Includes:
•
TPC - Construction of Telecom Power Plant. This asset class covers the
provision, installation, construction, replacement and re-arrangement of
power plant systems and distributions feeding network operational
equipment in operational buildings, i.e. telephone, radio and repeater
stations.
DG
Network Power
DH
Capital Miscellaneous
•
Miscellaneous capital expenditure
DI
Other Non-Voice Plant
•
IPNC (Internet Protocol Network Capital) including assets and
27
depreciation.
DJ
Net Enabling Computers
DL
Public Payphones
DM
Apparatus
DN
Motor Transport
DO
DS
EA
•
Network enabling computing fixed assets and depreciation.
•
PCOH This asset class covers the planning, provision and recovery of
payphone housing, including lighting and power, other than managed
sites.
•
Sector DM contains the asset values and depreciation of Apparatus
equipment.
•
NVAC - New Vehicles and Accessories purchased and include pool cars,
vans, light goods vehicles, heavy goods vehicles and 4 wheel drive
vehicles and trailers.
•
COMPA - BT Own Use Computer Mainframes and Peripherals. This
includes computers which require a controlled environment e.g. air
conditioning, water cooling, includes front end processors, tape drives,
disk drives, silos, dedicated terminals etc.
•
COMPE - BT Own Use Personal Computers. Includes the processor,
display monitor, keyboard, internal CD ROM and modem, one or more
diskette drives, internal fixed disk storage and the operating system
software purchased as an integral part of the PC.
•
COMPF - BT Own Use Data Communication Equipment. These includes
data transmission hardware and test equipment such as modems,
multiplexors, routers, bridges, patch panels, protocol converters, line
testers, monitor protocol analysers, cluster controllers, hyper-channels,
file servers and Open System Cabling Architecture (OSCA) cables.
•
IABC - Internal Infrastructure Cabling and Local Area Networks (LAN) in
BT offices.
•
IDX - Big and Large Switches. This asset class covers the provision of all
big and large switches and of small/medium switches with an installed
cost in excess of £1,500 for the COMMSURE (business continuity
solutions) scheme. The COMMSURE scheme provides switch systems to
be held on stand-by, to provide participating customers with temporary
service in the event of an emergency..
•
OM - Office machines (BT own use). This asset class covers the
procurement and installation of office machines for BT's own use, where
the cost is £1,500 or more.
•
Application system software - Designed to meet a specific business need
with an established intended use (and not for use for any other
purposes).
•
Operating system software - Manages the basic operations of a
computer system and the flow of information into and out of the main
processor.
General Computers
Office Machines
Software
28
Other Investments
This sector represents the shares of investments in subsidiaries and associated undertakings and relates purely to Retail Residual
products. The relevant ASPIRE sectors are as follows:
ASPIRE
sector
Description
E7
Other Investments
E8
E5
Includes:
•
the shares of investments in subsidiaries and associated undertakings
and relates purely to Retail Residual products
FA Invest Adj. CCA
•
CCA adjustments to fixed asset investments
Other Non-Current Assets
•
Other non-current assets
Working Capital
The figures for receivables and payables include an approximation of the internal “notional” receivables and payables that
would be incurred if trades between BT’s lines of business were undertaken to a third party and at arm’s length. They are based
upon the average trading terms of BT Group’s external trades.
ASPIRE
sector
G1
Description
Trading Inventories
GN
AS Notional Receivables
HN
AS Notional Payables
G2
G3
G4
G5
Trade Receivables
Intra-group Receivables
Short Term Investments: TP
Short Term Investments: IG
Includes:
•
Trade and finished goods inventories.
•
Work in progress.
•
Raw material inventory.
•
This is the calculated cost to BT of financing the payment terms it offers
•
This is the calculated amount owed by BT Wholesale to BT Openreach for
EOI services
•
Geneva receivables - These are receivables associated with invoices raised
through the Geneva system, a billing system used by BT Retail, Global
Services and BT Wholesale. It contains customer data, such as the Products
they currently rent, usage and any discounts applied.
•
Customer Service System (CSS) billed receivables - These are receivables
associated with invoices raised through the CSS. These receivables’
balances are generated by the Retail business unit of BT and include, for
example, balances for invoices due from PSTN call services provided to
business and residential customers.
•
Other Communication Provider (OCP) receivables.
•
Internal trading between our lines of businesses relating to receivables.
•
Listed UK investments.
•
Listed non-UK investments.
•
Unlisted investments.
•
Overnight deposits.
•
Term deposits at banks.
•
Certificates of tax deposits.
•
BT’s intra-group investments (funds deposited by one area of the business
into another part of the business) are directly allocated to Retail Residual.
29
G6
Cash At Bank
•
The material balances in this sector represent sterling bank accounts, with
different F8 codes used for accounts with different banks.
•
This sector relates to the balance sheet value of accrued income for
services provided to and used by customers but not yet invoiced by BT.
Accrued income arises where the invoice schedule for a particular customer
service allows the customer to use the service in advance of being billed
e.g. for telephony calls made by residential customers, where customers
are billed quarterly in arrears for the call charges.
•
Prepayments of general expenditure from BT.
•
This sector relates to the balance sheet value of Other Receivables for
amounts owing to BT. It contains sundry and miscellaneous receivable
balances.
G9
Accrued Income
GA
Prepayments
GB
Other Receivables
GC
Pay Recharges
•
Relates to pay accounting in BT. This sector always nets to zero.
GD
Derivative Financial
Instrument (Current Assets)
•
This sector holds the balance sheet value of current derivative financial
instruments and relates purely to Retail Residual products.
The borrowings include:
H1
H2
Short Term Borrowing
Provisions under one year
•
Overdrafts.
•
Short-term loans.
•
Other short-term loans (excluding bank overdrafts).
•
Commercial paper.
•
Liability balances on commercial paper held by the Treasury.
Potential liabilities faced by BT that are due within a year.
The key balances of trade Payables in this sector include:
H3
H4
Trade Payables
Intra-group Payable
•
Accounts Payable control.
•
Other Communication Provider (OCP) Payables.
•
Capital Trade Payables other.
•
Internal trading between our lines of businesses relating to payables.
Key balances include:
H6
Other Tax and Social
Security
•
Output VAT payables, arising from VAT collected by BT from its customers.
•
Input VAT receivable balances, arising from VAT paid by BT on inputs
purchased.
•
National Insurance contributions for employees, payable by BT.
H7
Provisions
•
Miscellaneous provisions
H8
Other Payables
•
Sundry and miscellaneous payable balances.
H9
Accrued Expenses
•
Accrued expenses not yet paid by BT.
HA
Deferred Income
•
Income received for services not yet provided to customers.
HF
Derivative Financial
Instrument (Payables)
•
This sector holds the balance sheet value of derivative financial instrument
payables and relates purely to Retail Residual products.
30
Provisions for liabilities and charges
This sector consists of the following:
ASPIRE
sector
Description
I2
Provision: Other Provisions
I4
Provisions: Pensions
Includes:
•
This sector contains the balance sheet values of ‘other’ provisions, which
are primarily BT’s warranty provisions.
•
This sector contains the balance sheet values of provisions for pension
liabilities.
31
4.1 Base Methodology Dictionary – Except bases
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
BE
Openreach Service Design
Description
This unit contains the Chief Engineer’s Office, Network Strategy and Business Solutions group.
Methodology
This base apportions Pay, Non-Pay and Assets of the business unit using the same allocation rules as for the BT
TSO Development charge into Openreach. This base is a subset of the TA except base (see below).
BH
Openreach Human Resources
Description
This base apportions Pay, Non-Pay and Assets relating to Openreach Human Resources department.
Methodology
Allocates directly to 100% to AG 401 (Openreach Pay Driver)
BL
Openreach Network Investment
Description
This base apportions the costs of the access network and capital build expenditure.
Methodology
This uses the FTQ base that is referring to all Unit Pay.
Data Source/s
The data is system generated from ASPIRE.
BT
Openreach Current Liabilities
Description
This is a record of the liabilities incurred from unpaid invoices. The value of these invoices relate to current
account expenditure received by the accounts payments centre which are unpaid at the period end.
Methodology
This is the FTQ driven on the OUC.
Data Source/s
The data is system generated from ASPIRE.
BY
Openreach Centre Costs
Description
This is the adjustment made for running then Openreach CEO’s office. This includes staff leaver payments,
recognition event costs and advertising costs
Methodology
This is base, 100% apportioned to AG401 (Openreach Pay Driver)
32
BZ
Openreach Adjustment
Description
This is the adjustment made for running then Openreach CEO’s office; an example of these are stock adjustments
and stocktaking, provisions for insurable incidents and other business costs.
Methodology
100% apportioned to AG401 (Openreach Pay Driver)
BLE
Openreach Ethernet End to End
Description
This base allocates the Pay, Non-Pay costs of the planning team with staff supporting the provisioning of
Openreach services. An example is the actual total pay bill for Supervision and Support staff within the team.
Methodology
100% direct to PG573B Openreach Service Centre Provision Ethernet.
BLH
BLP2
Openreach Copper Recovery Team
Description
This base allocates the Pay, Non-Pay costs associated with Organisational Unit Code (OUC) BLH. BLH is a copper
recovery team where scrap is recovered from the network and then sold as income.
Methodology
100% direct to PG986R Openreach Other Activities.
BP
Openreach Sales and Product Management team
Description
This base allocates the Pay; Non-Pay costs associated with Organisational Unit Code (OUC) BP. BP is the Sales and
Product Management division of Openreach. As the various teams support specific services, their costs cannot be
spread on a direct pay or revenue basis.
Methodology
100% direct to PG502B SG&A Openreach Sales Product Management.
BW
Openreach Service Division
BWA
Description
BWA1
This base apportions the Profit and Loss (P&L), supporting the provisioning and repair of Openreach services. As
the various teams support specific services, their costs cannot be spread on a Direct pay or revenue basis.
BWA2
BWA3
BWA6
BWB
BWC
BWD
BWE5
Methodology
A breakdown of each team’s headcount is obtained. The OUC base is then constructed by reference to the
respective service that each team member works on. Where a team works for a specific service (for example
Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Basic and Premier lines
by reference to their respective volumes.
Data Source/s
Headcount analysis.
BWF
BWG
BWG6
33
C
Corporate Costs
Description
The costs within this OUC include costs relating to personnel and administration, computing, planning and
development, general support and general management type costs. These costs are identified as ‘Corporate
Costs’, which support BT in general (both the people in BT and the management of its assets).
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are allocated 100% to the Corporate Costs AG112.
CRG
Group Internal Communications
Description
This base apportions the costs (e.g. current ETG and Non ETG Pay) associated with BT's internal communications
team. The team keep BT employees informed about major company issues and initiatives. Costs are mainly pay,
internal publicity and postage.
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are allocated 100% to the Corporate Costs AG112.
CRX
Group External Communications
Description
This base apportions the cost of BT’s external communication team. These units are responsible for the BT Group
website and for Media Relations.
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are allocated 100% to the Corporate Costs AG112.
CW
Description
This base apportions Profit and Loss (P&L) costs and Balance sheet items booked to Group Billing Organisational
Unit Code (OUC) CW.
Methodology
Group Billing was created from the combination BT Retail and BT Wholesale billing teams. It was formed from
Billing and Revenue assurance teams from BT Retail and Revenue management team from BT Wholesale. The unit
is predominantly made up of BT Retail c88%.
The retail versus Wholesale element of the cost is determined using a management assessment of revenue billed
against each respectively.
The retail element of the cost is allocated to P008 (Retail Other).
The Wholesale element of the cost is allocated using a Wholesale revenue base.
The Openreach element of the cost is allocated using an Openreach revenue base.
The final overall base for CW is derived by weighting the Retail and Wholesale bases.
Data Source/s
The source data is the Wholesale and Openreach external revenue split by product and management information
on the Group Billing cost split.
34
E
Miscellaneous Corporate Spend
Description
This base apportions “Corporate Costs” include those relating to personnel and administration, computing,
planning and development, general support and general management associated with this Organisational Unit
Code (OUC) E. They support BT in general (both the people in BT and the management of its assets) and are
allocated directly to AG112 Corporate Costs.
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head quarters’ nature.
Costs are apportioned 100% to AG112 Corporate Costs.
F
BT Facilities Services
Description
This base apportions Profit and Loss (P&L) costs and Balance sheet items booked to BT Facilities Services,
Organisational Unit Code (OUC) F.
Methodology
BTFS provide facilities management services to BT. These costs are part of BT’s property costs and are therefore
100% apportioned by the property activity group AG106.
KB
Mobile Service Delivery and BT Managed Services Ltd
Description
BT Mobile Service Delivery provides a dedicated end to end service fulfilment function for major Mobile
Customers. The unit’s management and support team support the engineering activities.
rd
BT Managed Services Ltd supports BT’s managed services capability and 3 party contracts with mobile network
operators and service providers.
Methodology
Allocation by a direct charge from TSO or by standard allocation which is on the value of sales.
KD, KK,
KU, KV,
KY
BT Wholesale Functional Units
Description
The five listed OUCs are the main functional units within the Wholesale Line of Business (LoB), covering all aspects
of the relationship with Communication Providers (CPs).
KD – Product Management
KK – Customer Services
KU – Markets
KV – Managed Services
KY – White Label Managed Services (ISP Co.)
The type of costs covered by these OUC exception bases will be people and pay related. These costs are reported
under the title Sales and General Administrative activities.
Methodology
An annual FTE activity based survey is conducted by the Wholesale costing team and is comprised of a mixture of
supporting data. This includes estimates of resource working on particular products, product volumes and
revenue.
An additional analysis of Managed Network contracts supported by the BTW product Finance team is undertaken
to identify the split of regulated and unregulated activity. This is because MNS contracts are essentially a sales
outlet for BT Wholesale catalogue products meaning it is appropriate to allocate some MNS activities to regulated
products.
The level of detail is generally at three and four digit OUC level but will be summarised up to a higher level for
input. The survey line details are agreed in advance with contacts in the Line of Business to align with their
management accounts view and can therefore change or be redefined on an annual basis.
Data Source/s
35
Annual BT wholesale SG&A FTE activity surveys.
M7
Residential Customer Contact Centres (CCC) Exception Base
Description
This base apportions the pay and non-pay costs associated with the Customer Contact Centres (CCC) staff involved
in Inland and International Directory Enquiries and Operator Assistance Services, Customer Complaints, Provision
Service, Fault Reporting and Repairs and general enquiry activities.
Types of costs are Profit and Loss (P&L) Current Non-ETG pay and Balance Sheet (Fixed Asset) costs.
Methodology
This model uses a breakdown of the Total Labour Costs associated with the BT Retail Customer Contact Centres.
The Labour Costs associated with Operator Services are then apportioned to Plant Group PG911A Operator
Services OA Inland. The remaining costs are apportioned to P006 Retail - Calls Lines & Circuits, P005 (Retail Broadband Ethernet & Convergence), P008 (Retail Other)
Data Source/s
Total Cost Survey to be supplied by BT Retail Consumer Finance in P9 and P12.
ML,
MLC,
MLC1,
MLC2,
MLC4,
MLC8
Phonebooks
Description
This base apportions costs relating to printing, producing and distributing BT’s Phone Book.
Methodology
The BT Phonebooks exception base is apportioned on the basis of a pay analysis completed by the BT Directories
Product Reporting Group. This allocates the costs between the Phonebooks Plant Group (PG) PG933A and the
Miscellaneous Number Information Retail Product P008.
Data Source/s
Management estimates of pay analysis completed by the BT Directories Product Reporting Group carried out at
P9.
MLC1,
MLC8
Directory Enquires/ Operator Assistance
Description
This base apportions costs relating to printing, producing and distributing BT’s directory enquires and operator
assistance function
Methodology
This model uses call volumes from directory enquiries, Operator Assistance and emergency operator 999 to
allocate costs associated with the relevant Class of Works to various plant groups, components and retail
products.
Data Source
The file is a summary of information from a variety of other data sources.
MLC,
MP
Combined Phonebooks / DQ/OA/ Payphones unit
Description
This base attributes the costs of the combined units following their reorganisation on 1 August 2013
Methodology
The base is an average of the bases of MLC1, MLC2, MLC,4 and MLC8, weighted in accordance with their cost
Data Source
The file is a summary of information from a variety of other data sources.
36
TA
BT TA : Architecture & Global IT platforms
This Operations team provides the development for all of BT’s IT platforms, networks and infrastructure. This
includes major software updates and thousands of smaller weekly maintenance upgrades.
Methodology
The Internal Trades generated by the AGIP team are billed via the BT TSO Billing System. The apportionment is
driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TA are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non-volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spends relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BTW will be
spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products BT Group allocates to AG112
Media & Broadcast
The costs relate to the dedicated teams supporting the Media & Broadcast (including BT Sport), TV and Content
portfolio. They are apportioned using the BT TSO Billing data and previously apportioned pay to allocate to plant
groups.
Other Contract Specific
These costs cover the BT TSO FTE support for specific support for external contracts and are allocated directly to
Retail Products.
Application Support and Management – Design/In Life
AS&M – Design and In life covers the activities of BTTSO FTE to provide the systems and support of new BT
designed software applications across BT LoBs. They are apportioned to the respective lobs using the BT TSO
Billing data and previously apportioned pay to apportion to plant groups.
IT Support (Cat 1/Cat 2)
BT IT Systems Support teams are responsible for keeping BT’s Networks, IT equipment, operating systems and
data centres up and running. The teams support Servers and Storage, Main Frame Computers support, Personal
Computers, IT Helpdesk, as well as specific Lob Computing Support teams. The apportionment methodology
utilises the BT TSO trade analysis, which is supported by cost analysis, and previously apportioned pay to allocate
to plant groups.
EUT and Desktop Security
The unit is responsible for BT’s Desktop and Personal Computer portfolio, as well as related IT and Security
systems. The apportionment methodology utilises the BT TSO trade analysis, which is supported by cost analysis,
and previously apportioned pay to allocate to plant groups.
Contract & In-Life Product Support
37
This covers the trade for the Specialised IT support teams for BT contracts for support to BT’s external customers
for products and/or services, as well as specific product support. The apportionment methodology utilises the BT
TSO trade analysis and then the BT TSO Resource Planning data & analysis to allocate to plant groups.
BT TSO Functions (including Oracle License)
Certain costs in BT TSO TA cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
The BT Enterprise Wide Oracle Licence costs also sit within OUC TA Functions and point 100% to AG112.
TB
BT TSO : Service, Strategy & Operations
nd
rd
This BT TSO unit provides the operational support to maintain BT platforms, together with the 2 and 3 line
technical support to the LoBs. They also lead on Strategic Business Planning for BT TSO.
Methodology
The Internal Trades generated by the SSO team are billed via the BT TSO Billing System. The apportionment is
driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TB are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spend relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
Other Contract Specific
These costs cover the BT TSO FTE support for specific support for external contracts and are allocated directly to
relevant Products
Exchange Infrastructure Plan & Build
The costs relate to the FTE that are responsible to plan and build the exchange infrastructure such as
Transmission, Ethernet and LLU. Costs are apportioned to plant groups using the BT TSO FTE Resource Capacity
Plan.
Contract & In-Life Product Support
This covers the trade for the Specialised IT support teams for BT contracts for support to BT’s external customers
for products and/or services, as well as specific product support. The apportionment methodology utilises the BT
TSO trade analysis and then the BT TSO Resource Planning data & analysis to allocate to plant groups
Power, Radio, and Other Infrastructure Support
The costs in this unit relate to the Field based FTE for Power, Radio & common/generic network infrastructure
38
support activities. The costs are apportioned via PDT bases based on CoW bookings and the power routines are
allocated to the power Activity groups (AG161 and AG163).
BT TSO Functions
Certain costs in BT TSO TB cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to 1) supporting and maintaining BT TSO network - This is apportioned via AG102 which uses the
net book value of the assets managed by BT TSO - and 2) Activities supporting BT TSO overall either as Project
Management, Business Strategy, or other general support and management type costs. These costs support BT
TSO’s people and the assets that BT TSO manages and are pointed to AG103.
TN
BT TSO : Global Network Services (GNS) Management and Support
This BT TSO unit is responsible for the design, build and running or BT’s network platforms.
Methodology
The Internal Trades generated by the GNS team are billed via the BT TSO Billing System. The apportionment is
driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TN are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spends relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
GVF Provide, Cease & Alter
The costs cover the system & process support activities for the downstream LoBs, primarily for Ethernet and
Private Circuit products and services, but also covering other products that use the BT network and platforms. The
apportionment methodology utilises the BT TSO trade analysis, which is supported by cost analysis, and
previously apportioned pay to allocate to plant groups.
Media & Broadcast
The costs relate to the dedicated teams supporting the Media & Broadcast (including BT Sport), TV and Content
portfolio. They are apportioned using the BT TSO Billing data and previously apportioned pay to allocate to plant
groups.
Other Contract Specific
These costs cover the BT TSO FTE support for specific support for external contracts and are allocated directly to
relevant Products
Application Support and Management – Design/In Life
AS&M – Design and In life covers the activities of BT TSO FTE to provide the systems and support of new BT
39
designed software applications across BT LoBs. They are apportioned to the respective lobs using the BT TSO
Billing data and previously apportioned pay to allocate to plant groups.
IT Support (Cat 1/Cat 2)
BT IT Systems Support teams are responsible for keeping BT’s Networks, IT equipment, operating systems and
data centres up and running. The teams support Servers and Storage, Main Frame Computers support, Personal
Computers, IT Helpdesk, as well as specific Lob Computing Support teams. The apportionment methodology
utilises the BT TSO trade analysis, which is supported by cost analysis, and previously apportioned pay to allocate
to plant groups.
Contract & In-Life Product Support
This covers the trade for the Specialised IT support teams for BT contracts for support to BT’s external customers
for products and/or services, as well as specific product support. The apportionment methodology utilises the BT
TSO trade analysis and then the BT TSO Resource Planning data & analysis to allocate to plant groups.
CSNO (Customer Service Network Operations)
These costs cover the desktop based Operations Centre managing the network traffic etc. Support costs for BT GS
Global & UK networks including architects and design who manage the network. Also covers any costs for Radio
Licences for spectrum. The apportionment methodology utilises the BT TSO trade analysis, which is supported by
cost analysis, and previously apportioned pay to allocate to plant groups.
BT TSO Functions
Certain costs in BT TSO TN cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
TC
BT TC : Group Customer Experience
This BT TSO unit is responsible for the measurement, analysis, reporting and improvement initiatives focused on
customer experience across BT. It also hosts the Centre of Excellence in business processes.
Methodology
The Internal Trades generated by the GCE team are billed via the BT TSO Billing System. The apportionment is
driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TC are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spend relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
40
BT TSO Functions
Certain costs in BT TSO TC cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
TG
BT TG : Chief Information Officer’s – Global Services
The CIO units design, build and deploy services for the LoB customers they support and the systems, networks
and processes that support these services. There is a Chief Information Office team supporting the respective lobs,
BT Wholesale, BT Group, BT Global Services, Openreach and BT Retail.
Methodology
The Internal Trades generated by the CIO GS team are billed via the BT TSO Billing System. The apportionment is
driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TG are
Development/Non-Volume Development / ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spend relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
GS Recharge
These costs cover the support for non ICT / Dev activities such as quality assurance and system transformation and
are pointed to a BT Global Services Product Code
BT TSO Functions
Certain costs in BT TSO TG cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
TM
BT TM : Chief Information Officer’s – Group
The CIO units design, build and deploy services for the lob customers they support and the systems, networks and
processes that support these services. There is a Chief Information Office team supporting the respective lobs, BT
Wholesale, BT Group, BT Global Services, Openreach and BT Retail.
41
Methodology
The Internal Trades generated by the CIO Group team are billed via the BT TSO Billing System. The apportionment
is driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TM are
Development / Non-Volume Development / ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spend relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
Application Support and Management – Design/In Life
AS&M – Design and In life covers the activities of BT TSO FTE to provide the systems and support of new BT
designed software applications across BT LoBs. They are apportioned to the respective lobs using the BT TSO
Billing data and previously apportioned pay to allocate to plant groups.
Contract & In-Life Product Support
This covers the trade for the Specialised IT support teams for BT contracts for support to BT’s external customers
for products and/or services, as well as specific product support. The apportionment methodology utilises the BT
TSO trade analysis and then the BT TSO Resource Planning data & analysis to allocate to plant groups.
BT TSO Functions
Certain costs in BT TSO TM cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
TP
BT TP : Chief Information Officer’s – Openreach
The CIO units design, build and deploy services for the lob customers they support and the systems, networks and
processes that support these services. There is a Chief Information Office team supporting the respective lobs, BT
Wholesale, BT Group, BT Global Services, Openreach and BT Retail.
42
Methodology
The Internal Trades generated by the CIO Openreach team are billed via the BT TSO Billing System. The
apportionment is driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC),
Line of Business (LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each
LoB has a base built using specific data relevant to the OUC. The base construction is formed of specific bases for
each LoB and weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TP are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non-volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spend relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
BT TSO Functions
Certain costs in BT TSO TP cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
TR
BT TR : Chief Information Officer’s – Retail
The CIO units design, build and deploy services for the lob customers they support and the systems, networks and
processes that support these services. There is a Chief Information Office team supporting the respective LoBs, BT
Wholesale, BT Group, BT Global Services, Openreach and BT Retail.
Methodology
The Internal Trades generated by the CIO Retail team are billed via the BT TSO Billing System. The apportionment
is driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC), Line of Business
(LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each LoB has a base built
using specific data relevant to the OUC. The base construction is formed of specific bases for each LoB and
weighted using the BT TSO Billing data for each 2 digit OUC code.
43
The following income types billed for OUC TR are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spend relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BTW Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
BT TSO Functions
Certain costs in BT TSO TR cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
TW
BT TW : Chief Information Officer’s – BT Wholesale
The CIO units design, build and deploy services for the lob customers they support and the systems, networks and
processes that support these services. There is a Chief Information Office team supporting the respective lobs, BT
Wholesale, BT Group, BT Global Services, Openreach and BT Retail.
Methodology
The Internal Trades generated by the CIO BT Wholesale team are billed via the BT TSO Billing System. The
apportionment is driven using the BT TSO billing data to determine the costs by Operational Unit Code (OUC),
Line of Business (LoB) and Income type (e.g. Development, Application Support and Maintenance etc.). Each
LoB has a base built using specific data relevant to the OUC. The base construction is formed of specific bases for
each LoB and weighted using the BT TSO Billing data for each 2 digit OUC code.
The following income types billed for OUC TW are
Development/Non-Volume Development/ICT
The costs relate to volume driven, non volume driven and ICT software development for the rest of BT.
The apportionment is driven using the BT TSO billing data to determine the costs by Line of Business (LoB). Each
LoB has a base built using specific data relevant to the OUC.
For Openreach the Development costs will use specific data provided from Openreach to determine which plant
groups the costs will be attributed to. Unspecified development costs use OR Fixed Asset base to apportion.
BT Wholesale uses business case analysis where each business case spends relevant to BTW is identified and where
possible pointed to the specific relevant SG&A Plant Group. Any unspecific business case spend for BT Wholesale
will be spread using BT Wholesale Current Account Pay
BT Global Services and BT Retail are allocated directly to Retail Products.BT Group allocates to AG112 driven on
the analysis of the Trial Balance data.
BT TSO Functions
Certain costs in BT TSO TW cannot be directly allocated to services provided to other lobs. The costs in this support
function relate to supporting and maintaining BT TSO network and are apportioned via AG102 which uses the net
book value of the assets managed by BT TSO.
44
TF, TH,
TT, TX,
TY,TZ,
and T
TSD
BT TSO : Other Management and Support functional units including Finance, Human Resources, and Strategy
The costs within these OUCs include costs relating to the BT TSO Finance functions, Human Resources personnel
and administration functions, together with BT TSO’s central functions and other general support and
management type costs. These costs cannot be directly attributed to another Lob, but support BT TSO’s people,
and the assets BT TSO manages. Costs are allocated to AG103 which is an activity pool for costs relating to the
management of BT TSO people and the maintenance of BT TSO’s managed assets.
BT TSO : BT Energy and Carbon Unit
The Energy and Carbon unit is responsible managing energy, and carbon emissions, across all of BT’s Lines of
Business (LoBs). The costs are treated as AG102. AG102 is an activity pool for the costs of maintaining TSO’s
managed assets i.e. the Network.
TU
BT TSO : Research & Innovation
The Research & Innovation unit runs a set of programmes to facilitate the use of new technologies to generate
revenue or transform costs. These costs benefit all BT’s activities and assets, and it is therefore appropriate to
attribute 100% to the Corporate Cost AG112.
V
BT Security
Description
The BT Security team is situated within Group. The function is responsible for keeping BT buildings secure, and
protecting BT’s networks and systems from outside interference.
Costs include those for BT staff, and also subcontracted security costs.
Methodology
BT Security recovers its costs from Lines of Business (Lobs) via internal Trades. The traded values are supported by
an analysis of costs by activity and customer, and therefore provide the basis for the apportionment
methodology.
Data Source/s
Analysis of BT Security trades from BT Security
WP
BT Property Partners
Description
The base apportions costs associated with BT Property Partners.
WP is the Organisational Unit Code (OUC) for BT Property Partners ICU, who acts as the informed strategic
interface between the Lines of Business (LoB), Group and the external property infrastructure and service
providers.
Property Partners manages the supply of all property and facilities in accordance with the requirements of BT
Property Partners and also holds, on behalf of BT Group, all interests in land and property including leases and
licences and manages all property and related projects on behalf of LoB) and Group, including appointing and
instructing external property and construction consultants.
Property Partners manages the supply of the following activities for the benefit of the BT Group:
•
Provision of premises – this includes the provision of land, the allocation of existing/refurbished space and
provision of new space.
•
Building and plant maintenance/replacement – this includes planned/reactive maintenance and external site
maintenance.
•
Alteration to accommodation – this includes minor alterations, fit out of accommodation, refurbishment and
upgrade of space.
•
Moves and space management – this includes managing large-scale people moves, vacation management
and internal space brokerage.
•
Estate management and strategic advice – this includes property related financial support, strategy planning
and portfolio management e.g. sub-letting.
•
Rating and valuation – this includes property asset accounting and property taxation cost control in
accordance with current legislation.
45
•
Property consultancy – this includes real estate strategy planning, property efficiency and utilisation studies,
call centre build and operation and flexible working advice.
•
Global property service – this includes portfolio strategy construction, project management and real estate.
Methodology
All costs within this OUC are allocated to the Facility Management Intermediate Activity Group AG106 for onward
apportionment to Products and Services. Other suitable cost centre allocations are made for relevant Other
Operating Income when material.
YF
Group Procurement
Description
Group Procurement performs activities associated with the procurement of materials and services (to support
business operations) and the issuing of supplies. This base apportions the Profit & Loss (P&L) costs e.g.
Procurement pay. This is the staff cost in respect of personnel involved in work associated with supplies, for
example, storekeepers, managers and other logistical support staff. Group Procurement provides support to the
different Lines of Business (LoBs) and these costs relate to BT Retail.
Methodology
Costs generated by Group Procurement in support of BT Retail are allocated 100% to Retail residual product
P683.
Y3/YL
BT Fleet
Description
BT Fleet provides motor vehicles and associated services to employees within BT and to external customers.
Methodology
BT Fleet Ltd provides its services to BT units and also to customers external to BT. It uses transfer codes to charge,
at commercial rates, for the services it provides to the relevant BT units. It records the revenue it receives from
external parties in ‘other income’ codes.
This base apportions all the profit and loss (P&L) and relevant balance sheet items relating to this subsidiary to the
following:
The intermediate Activity Group AG101 (Motor Transport).
Products relating to the other operating income received from external parties.
The apportionment between these destinations is determined by BT Fleet cost analysis which considers costs
drivers for different elements of the BT Fleet cost base and accordingly provides the appropriate apportionment.
Data Source/s
Management cost split based on Hyperion download data.
YK
Group Procurement supporting Openreach
Description
Group Procurement performs activities associated with the procurement of materials and services (to support
business operations) and the issuing of supplies. This base apportions the Profit & Loss (P&L) costs e.g.
Procurement pay. This is the staff cost in respect of personnel involved in work associated with supplies, for
example, storekeepers, managers and other logistical support staff. Group Procurement provides support to the
different Lines of Business (LoBs) and these costs relate to Openreach.
Methodology
Costs generated by Group procurement in support of Openreach are apportioned using the existing Openreach
Common costs base COMCOS.
Data Source/s
Ledgered data for Procurement costs. Existing Openreach base COMCOS on ASPIRE.
YM
Group Procurement supporting BT Wholesale
Description
Group Procurement performs activities associated with the procurement of materials and services (to support
46
business operations) and the issuing of supplies. This base apportions the Profit & Loss (P&L) costs e.g.
Procurement pay. This is the staff cost in respect of personnel involved in work associated with supplies, for
example, storekeepers, managers and other logistical support staff. Group Procurement provides support to the
different Lines of Business (LoBs) and these costs relate to BT Wholesale.
Methodology
Costs generated by Group procurement in support of BT Wholesale are apportioned using an existing Wholesale
SG&A base (K EXCEPT)
Data Source/s
Ledgered data for Procurement costs. Existing BT Wholesale base on ASPIRE
YL
BT Fleet - Motor Vehicle Assets
Description
BT Fleet provides motor vehicles and associated services to employees within BT and to external customers.
Methodology
BT Fleet Ltd provides its services to BT units and also to customers external to BT. It uses transfer codes to charge,
at commercial rates, for the services it provides to the relevant BT units. It records the revenue it receives from
external parties in ‘other income’ codes.
This base apportions all the profit and loss (P&L) and relevant balance sheet items relating to this subsidiary to the
following:
•
The intermediate Activity Group AG101 (Motor Transport).
•
Products relating to the other operating income received from external parties.
The apportionment between these destinations is determined by BT Fleet cost analysis which considers costs
drivers for different elements of the BT Fleet cost base and accordingly provides the appropriate apportionment.
Data Source/s
100% allocation to BT Fleet cost base
47
YW
Group Procurement supporting TSO
Description
Group Procurement performs activities associated with the procurement of materials and services (to support
business operations) and the issuing of supplies. This base apportions the Profit & Loss (P&L) costs e.g.
Procurement pay. This is the staff cost in respect of personnel involved in work associated with supplies, for
example, storekeepers, managers and other logistical support staff. Group Procurement provides support to the
different Lines of Business (LoBs) and these costs relate to TSO.
Methodology
Costs generated by Group Procurement in support of TSO are apportioned using the BT TSO managed Assets
Intermediate Activity Group AG102.
Data Source/s
YE,YP,
YV
YQ,YZ
Ledgered data for Procurement costs. AG102 on ASPIRE
Group Procurement supporting HQ
Description
Group Procurement performs activities associated with the procurement of materials and services (to support
business operations) and the issuing of supplies. This base apportions the Profit & Loss (P&L) costs e.g.
Procurement pay. This is the staff cost in respect of personnel involved in work associated with supplies, for
example, storekeepers, managers and other logistical support staff. Group Procurement provides support to the
different Lines of Business (LoBs) and these costs relate to Pan-LoB activities.
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are allocated 100% to the Corporate Costs AG112.
Y3
Motor Transport Fixed Assets
Description
This base apportions the Net Book Value (NBV) of Motor Transport fixed assets.
Methodology
This Group unit makes detailed internal transfer charges with regard to which units use its service. The costs
generated are apportioned using AG101 Motor Transport.
YS
Supply Chain Partners
Description
Organisation Unit Code (OUC) YS represents Supply Chain Partners, which is part of Business Services. Its
responsibilities (services) include:
•
The inventory management, warehousing and distribution of engineering materials and network
infrastructure items to Field Engineers.
•
The warehousing and distribution of Customer Premises equipment to BT’s trade distributors.
•
The warehousing and distribution of Telephone directories.
•
The provision of an internal mail service as well as a Document Design and Management Service.
These services are provided to other Lines of Business (LoB), and to non-BT customers’ e.g. O2.
The major costs of Supply Chain Partners relates to:
•
Internal labour and agency costs for the unit.
•
Freight, postage and delivery charges associated with materials procurement.
Methodology
The Supply Chain Finance team prepare details of their costs, by Activity, cumulative to Period 12. The costs are
further split by Line of Business (LoB) and/or Channel e.g. Openreach, BT Wholesale, BT Retail, BT Northern
Ireland and Third Parties. Costs related to Stores management are apportioned using the relevant Store
management activity groups.
48
Costs relating to BT Retail or BT Global Services are allocated directly to residual products.
A weighted base is then prepared by combining the Supply Chain costs analysis.
Data Source/s
Supply Chain Finance management accounts data.
49
4.2 Base Methodology Dictionary – Other Bases
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
BASENGT
E
This base does not allocate any cost. It is used to offset a dummy cost which is put through each plant group to
understand how the cost exhausts to the various markets. This is for reference only. To ensure none of this cost is
actually allocated, the offsetting entry to this dummy cost is allocated on this base to ensure the net impact is nil.
CAPEXP_A
LL
ALL
Core
OUCs
Capital Creditors
Description
This base is used to apportion BT Group capital creditors relative to the capital additions (purchase of Fixed
Assets) made over the year.
Capital creditors are the value of authorised invoices for capital expenditure due to suppliers, but that are unpaid
at the accounting period end. The detailed base is a system generated ratio that is derived from the ASPIRE
system using a two stage approach; this is recalculated each time the capital addition costs are updated. Each
base has two stages as follows:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. CAPEXP).
•
The Accounting Separation (AS) Cost centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
Diagram: Capital Creditors Apportion Process.
DD1:
List of F8 Codes
in Aspire from
which bases are
is
derived by Cost
Centre
Use
F8's
Use
F8s
to to
produce
data
in
produce
data
ASPIRE
in ASPIRE
ASPIRE:
array
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Array :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Array:
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
CAPEXP_Diagram1
“CAPEXP”, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. all non-pay capital additions (purchases of Fixed Assets) during the year. This data is held within the
system by AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Methodology
The CAPEXP base represents a smaller number of Products that are within the ‘ALL’ BT Group AS Cost Centres and
the existing CAPEXP base is apportioned to the existing array of AS Cost Centres.
Apportionments from
DD1 (CAPEXP)
Income / cost to
be apportioned
Capital Creditors
DD1: CAPEXP
Purchase of Fixed
Assets during year.
CAPEXP_Diagram2
50
AS Cost Centres
in DD2 (ALL)
DD2: ALL
BT Group Cost
Centres
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
Data Source/s
System generated base from ASPIRE.
CAPEXP_P
CT
B, T, J,
K, and
M
Capital Creditors
This base is used to apportion Line of Business capital creditors relative to the capital additions (purchase of noncurrent assets) made over the year.
Capital creditors are the value of authorised invoices for capital expenditure due to suppliers, but that are unpaid
at the accounting period end. The detailed base is a system generated ratio that is derived from the ASPIRE
system using a two stage approach; this is recalculated each time the capital addition costs are updated. Each
base has two stages as follows:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. CAPEXP).
•
The Accounting Separation (AS) Cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Capital Creditors Apportion Process.
DD1:
List of F8 Codes
in Aspire from
which bases are
is
derived by Cost
Centre
Use
F8s
to to
Use
F8's
produce
data
in
produce
data
ASPIRE
in ASPIRE
ASPIRE:
array
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Array :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Array:
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
CAPEXP_PCT_Diagram1
“CAPEXP”, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. all non-pay capital additions (purchases of Fixed Assets) during the year. This data is held within the
system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Methodology
The CAPEXP base represents a smaller number of Products that are within the ‘PCT’ BT Group AS Cost Centres and
the existing CAPEXP base is apportioned to the existing array of AS Cost Centres.
Apportionments from
DD1 (CAPEXP)
Income / cost to
be apportioned
Capital Creditors
DD1:CAPEXP
Purchase of Fixed
Assets during year
CAPEXP_PCT_Diagram2
Data Source/s
System generated base from ASPIRE.
CCAFIB
BV,BY
, MJ
Access Fibre CCA Adjustment
51
AS Cost Centres
in DD2 (PCT)
DD2: ALL
BT Group Cost
Centres
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
This base apportions CCA adjustments relating to access fibre to plant groups (PGs).
Methodology
CCA adjustments are allocated to PG111C and PG959C based on the existing cost bases for the PG weighted to
take into account their relative share of total CCA valuation of access fibre for the year.
Data Source/s
Costing bases PDTLFDC and PDTLFSC, and Life of Plant (LoP) list.
COMCOS_
PCT
B
Openreach Common Costs
Description
Openreach common costs
Apportionment Summary
Based on factorised current salary costs and return on assets within Openreach
Apportionment
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:
•
Factorised salary expenses for the whole of Openreach (current and capital account).
•
Net book value of fixed assets revalued for current cost accounting (CCA) for the whole of Openreach.
The COMCOS base draws on the result of the previously attributed Openreach pay costs within the ASPIRE system
following the base reference stage.
The ‘return on assets’ percentage is then applied to the CCA net book value of each fixed asset class identified by
the Regulatory Accounting system. This percentage is determined by Ofcom. This is applied to ensure that the
driver reflects the corporate activities of ‘managing the assets of the company to create a return’.
By weighting the previously attributed pay costs together with the CCA fixed asset values (taking into account the
fact that the asset amounts have already had the return on assets and investments percentages applied to them)
an apportionment base for COMCOS can be derived.
The final base apportionment excludes subsidiaries and associates as these are overseas activities and the
COMCOS costs are being attributed solely to UK activities.
Data Source/s
ASPIRE.
COMCOS
BLL,B
LP,
BA,
BF,
BQ,
BR
Openreach Common Costs
Description
Openreach common costs
Apportionment Summary
Based on factorised current salary costs and return on assets within Openreach
Apportionment
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:
•
Factorised salary expenses for the whole of Openreach (current and capital account).
•
Net book value of fixed assets revalued for current cost accounting (CCA) for the whole of Openreach.
The COMCOS base draws on the result of the previously attributed Openreach pay costs within the ASPIRE system
following the base reference stage.
The ‘return on assets’ percentage is then applied to the CCA net book value of each fixed asset class identified by
the Regulatory Accounting system. This percentage is determined by Ofcom. This is applied to ensure that the
driver reflects the corporate activities of ‘managing the assets of the company to create a return’.
By weighting the previously attributed pay costs together with the CCA fixed asset values (taking into account the
fact that the asset amounts have already had the return on assets and investments percentages applied to them)
an apportionment base for COMCOS can be derived.
Data Source/s
ASPIRE.
52
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
CUMNOR
M
W
BT’s Cumulo Rates liabilities
Description
BT’s cumulo rates liability covers what we pay in non-domestic rates on its rateable network assets in the UK. Non
domestic rates are effectively a form of property tax. Most businesses pay rates on properties and other rateable
assets that they occupy.
The rateable assets within BT’s cumulo assessment include exchange buildings, telegraph poles, duct, manholes,
cabinets, payphones, copper and fibre. Under rating principles these are assessed together, hence the term
“cumulo”. Other parts of BT’s property estate - e.g. offices and workshops - are assessed separately and do not
form part of BT’s cumulo assessment.
Non-domestic rating liabilities are calculated by applying a rate in the pound (rate poundage) to a rateable value
(RV). Rate poundages are the same for all ratepayers in each UK country. RVs are set by the UK rating authorities
under statutory rating law and principles.
The rateable value of BT’s cumulo assessment reflects the value of all the assets considered together. This cannot
be deconstructed to reflect individual lines of business or individual products. The base apportions BT’s cumulo
rates charges to products and services.
Rate poundages generally increase by RPI each year. RVs are reset every five years; however ratepayers may
appeal their RVs if they believe there have been “material changes in circumstance” (MCCs). What constitutes a
valid MCC is defined by legislation.
In recent years BT has successfully appealed its cumulo RV primarily as a result of increased levels of unbundling.
The CUMRBTE base applies to the changes to BT’s cumulo liabilities as a result of increased unbundling. The
CUMNORM base applies to all other BT cumulo liabilities.
Methodology
BT’s cumulo rates charge is allocated to products and services using a three stage process.
Stage 1: BT’s cumulo liabilities are divided into those to be allocated using the CUMNORM base and those to be
allocated using the CUMRBTE base.
Stage 2: CUMNORM base costs are allocated across line of business (LoB) and the rateable classes of work (CoW)
using profit weighted net replacement costs at the start of the rating valuation period.
Stage 3: These CoW liabilities are then allocated to plant groups, components and then services using standard
LoB allocation bases
Rationale
The key principle underlying the allocation is that it should reflect the use or occupation of rateable assets. The
use of profit weighted NRCs (PWNRCs) as the primary allocation basis can be shown to have clear links back to the
underlying rating and valuation theory in that it is a reasonable proxy for the expected return on the landlord’s
assets under the hypothetical rating tenancy. The use of PWNRCs produces a relatively stable and consistent
allocation. It is also superior to other potential bases – for example service revenues or product profitability.
Not all of BT’s assets are rateable. For example, computer software switching equipment and modems are not.
The Plant and Machinery (Rating) (Amendment) Order 1974 (and subsequent amendments) defines those assets
that are rateable. The CoWs that include rateable assets are set out in the table below.
53
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
The above list excludes exchange buildings (specialised accommodation) as these are no longer part of BT’s fixed
assets following their sale to what is now Telereal Trillium in 2001. However BT is the rateable occupier of these
assets so they need to be included. The NRCs of exchange buildings have been valued by Telereal Trillium using a
methodology consistent with that applied to the corresponding BT estate prior to the 2001 sale.
Profit weighted NRCs are calculated by applying the return reported in the RFS for each market (Access, Other
Wholesale and Wholesale Residual) to the NRC of each CoW allocated to that market as at the rating valuation
date.
For NGA, the valuation authorities currently apply an incremental fixed rateable value per connection as an MCC.
This is apportioned in the same way as the main charge but only across the assets that NGA uses.
The Organisational Unit Code (OUC) for CUMNORM is W
Data Source/s
Current Cost Accounting (CCA) valuations at year end.
CUMRBTE
W
CUMRBTE (Unbundling driven reductions to BT’s Cumulo Rates liabilities)
Description
See CUMNORM for a general description of BT’s cumulo rates liabilities and the allocation approach. CUMRBTE
covers the reductions in BT’s cumulo rates liabilities as a result of increased unbundling. Other changes to BT’s
cumulo liabilities are allocated using CUMNORM.
Methodology
Unbundling causes a loss of value in BT’s core network and it is this effect that the valuation authorities estimate
when they reassess BT’s cumulo RV for increased unbundling.
CUMRBTE liabilities are therefore allocated in exactly the same way, using the same principles and rationale, as
CUMNORM except that in Stage 2 the liabilities are apportioned across core rateable classes of work (CoW) only.
The relevant CoW that includes rateable core assets is shown in the table below.
54
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
The Organisational Unit Code (OUC) for CUMRBTE is W.
Data Source/s
Current Cost Accounting (CCA) valuations at year end.
DTNASBT
T
BT owned property charges.
TS
Description
This base allocates the BT owned property charges.
Methodology
This allocation is based on the overall floor space utilisation. A download of floor space utilisation is taken from
the Horizon system. The dimension size of the equipment is then used to determine the floor space occupied by
the TSO network. Relevant heat dissipation factors are applied to the dimension data of the equipment to account
for necessary cooling space. This provides a total floor space occupation for a particular equipment type
Data Source/s
Horizon
DTNASBT
B
BT owned property charges.
Description
This base allocates the BT owned property charges.
Methodology
Ledger information for the Openreach transfer charges from Group Property are downloaded from CID. These
charges are apportioned to the three areas Openreach own: MDF, Cable Chambers and LLU with an amount
remaining as ‘Other’ (e.g. Service centres).
The apportionment is based on analysis of the transfer charges by Group Property Finance who also supplies the
amount of charge for vacant space. The vacant space charge is then allocated to MDF, Cable Chambers and LLU.
The total charges against LLU, MDF are allocated to the relevant Plant Groups. Cable Chambers costs are
apportioned to the relevant Plant Groups by the Gross Replacement Costs. The amount remaining in ‘Other’ is
apportioned to Plant Groups by AG407 (Openreach engineering pay).
Data Source/s
Horizon
DTNASTR
T
Property costs associated with leasing from Telereal Trillium.
Description
This base allocates the property costs associated with leasing from Telereal Trillium.
Methodology
This allocation is based on the overall floor space utilisation. A download of floor space utilisation is taken from
the Horizon system. Dimension data of the equipment is then used to determine the floor space occupied by the
TSO network. Relevant heat dissipation factors are applied to the dimension data of the equipment to account for
necessary cooling space. This provides a total floor space occupation for a particular equipment type.
The cost is then allocated in proportion to floor space utilisation to service depending on what the space is used
for.
Data Source/s
Horizon
DTNASTR
B
Property costs associated with leasing from Telereal Trillium.
Description
This base allocates the property costs associated with leasing from Telereal Trillium.
Methodology
Ledger information for the Openreach transfer charges from Group Property are downloaded from CID. These
charges are apportioned to the three areas Openreach own: MDF, Cable Chambers and LLU with an amount
remaining as ‘Other’ (e.g. Service centres).
55
Base Ref
OUC
Descriptions (For all descriptions below, see Appendix A for Key Destinations)
The apportionment is based on analysis of the transfer charges by Group Property Finance who also supplies the
amount of charge for vacant space. The vacant space charge is then allocated to MDF, Cable Chambers and LLU.
The total charges against LLU, MDF are allocated to the relevant Plant Groups. Cable Chambers costs are
apportioned to the relevant Plant Groups by the Gross Replacement Costs. The amount remaining in ‘Other’ is
apportioned to Plant Groups by AG407 (Openreach engineering pay).
Data Source/s
Horizon
DTNCAP2
BL, BV
Capitalisation of field provision costs
Description
OUC BC undertakes customer related activities that are collectively described as field provision. The costs are
either booked to the current account or capitalised on to the relevant capital classes of work (CoW). The current
account costs involved in this case are for a variety of activities such as tools and small stores, travel and
subsistence, fuel, clothing, materials handling charges.
Methodology
We use details of how much has been capitalised against the relevant capital CoW. Each capital CoW is assigned to
the relevant Plant Group (PG) according to its treatment in ASPIRE. The costs are apportioned to the PGs in
proportion to the amounts capitalised to each capital CoW.
Data Source/s
Capitalisation data
Latest available Life of Plant (LoP) List.
DTNCNSP
O
J4
POLO
Description
This base attributes the costs relating to out payments to overseas operators.
Methodology
Costs are apportioned to CB561 (Interconnect outpayments overseas) and to P006 (Retail – Calls Lines & Circuits).
Data Source/s
The payment data is obtained from a report produced from Oracle Business Intelligence using the billing system
IXBS NG (Interconnect Bureau Service New Generation) as its data source.
Retail IDD volume data is obtained from the Call Statistics Centralisation System (CSCS)
56
DTNELSP
T
Electricity Transfer Charge
Description
This base allocates the electricity transfer charge.
Methodology
Volume data of the BT TSO network equipment is obtained from certain key data sources (mainly the PACS
system). Power consumption data for the various equipment types is obtained from a number of sources
including technical specifications and measured consumption.
From this information the total power consumption of the TSO network by equipment type is determined. A
relevant equipment allocation is applied for each different part of the TSO network
Data Source/s
A model of the power consumption across the BT TSO network is built based on equipment volume and power
consumption
DTNELSP
B
Electricity Transfer Charge
Description
This base allocates the electricity transfer charge.
Methodology
Ledger information for the Openreach transfer charges from Group Property are downloaded from CID. These
charges are apportioned to the three areas Openreach own: MDF, Cable Chambers and LLU with an amount
remaining as ‘Other’ (e.g. Service centres).
The apportionment is based on analysis of the transfer charges by Group Property Finance who also supplies the
amount of charge for vacant space. The vacant space charge is then allocated to MDF, Cable Chambers and LLU.
The total charges against LLU, MDF are allocated to the relevant Plant Groups. Cable Chambers costs are
apportioned to the relevant Plant Groups by the Gross Replacement Costs. The amount remaining in ‘Other’ is
apportioned to Plant Groups by AG407 (Openreach engineering pay).
Data Source/s
Horizon
DTNFA
WP
BT Property Fixed Assets
Description
This base is used to apportion the Net Book Values (NBV) of the retained BT Property Fixed Assets.
Methodology
The BT asset values are apportioned using an analysis of the transfer charges made to the BT occupants.
Overview of Transfer Pricing Process
A regular review is carried out of space consumed by BT units in BT owned buildings. BT units are then charged for
the occupancy. The base charge is then calculated as floor space times the market rent.
Buildings are designated as either Specialised (e.g. exchanges) or General Purpose (e.g. offices) and the charges
detailed by both OUC and Building on the Group Properties Horizon system.
ASPIRE is used to generate a base for the General Purpose buildings, utilising the charges by OUC and the
corresponding pay bases. The base used to support the Specialised Buildings is derived by an analysis of the floor
space occupied by equipment type.
The two bases are then combined, weighted by the relative charges, and applied against the BT Retained Estate
Fixed Asset values.
Data Source/s
Horizon and ASPIRE:
57
DTNFA
Y3
Motor Transport Fixed Assets
Description
This base apportions the Net Book Value (NBV) of Motor Transport fixed assets. These points to AG101.
Methodology
This Group unit makes detailed internal transfer charges with regard to which units use its service, an ASPIRE
report can be produced of the internal transfer charges identifying the Products and Plant Groups (PGs) which are
served by it and an apportionment is made on this basis.
Data Source/s
ASPIRE internal transfer charges reports.
WILLOW (Fleet management system on which all vehicles are tracked and monitored).
DTNHQ
YS
Supply Chain Partners
Description
Organisation Unit Code (OUC) YS represents Supply Chain Partners, which is part of Business Services. Its
responsibilities (services) include:
•
The inventory management, warehousing and distribution of engineering materials and network
infrastructure items to Field Engineers.
•
The warehousing and distribution of Customer Premises equipment to BT’s trade distributors.
•
The warehousing and distribution of Telephone directories.
•
The provision of an internal mail service as well as a Document Design and Management Service.
These services are provided to other Lines of Business (LoB), and to non-BT customers’ e.g. O2.
The major costs of Supply Chain Partners relates to:
•
Internal labour and agency costs for the unit.
•
Freight, postage and delivery charges associated with materials procurement.
Methodology
The Supply Chain Finance team prepare details of their costs, by Activity,. The costs are further split by Line of
Business (LoB) and/or Channel e.g. Openreach, Wholesale, Retail, Northern Ireland and Third Parties.
Costs related to Stores management are apportioned using the relevant Store management activity groups.
Costs relating to BT Retail or Global Services are allocated directly to residual products.
A weighted base is then prepared by combining the Supply Chain costs analysis.
Data Source/s
Supply Chain Finance management accounts data.
DTNIK
MJ
Northern Ireland, Customer Service Centres
Description
This base apportions the pay and non-pay costs (in Organisational Unit Code (OUC) MJ and F8 codes 153025/
207521 only) associated with the Customer Contact Centres (CCC) staff involved in Billing, Inland and
International Directory Enquiries and Operator Assistance Services, Customer Complaints, Provision Service, Fault
Reporting and Repairs and general enquiry activities.
Methodology
Data is used from the Call Centre Internal Trading Model developed by Customer Service Finance.
The QBC (Queue Based Costing) Model matches volumes to Customer Service (CS) costs by call queue levels. Data
sources are from the Merlin and Nexus systems, which are Performance and Management Information Reporting
systems.
Each call queue either has a Product identifier so it can be pointed directly to Products or, if not, it is treated as
follows:
•
Where the Product identifier is ‘All Products’, then it is broken down further by sub-product identifiers into
activities including Consumer and Business Repair, Billing, Provision Service (PSU) and various others. The
repair element is apportioned to Products by using an analysis of fault clear codes from Galileo. The Billing
element is apportioned by spreading across Residential Revenue. The remaining other All Products activities
58
are apportioned across either Residential, Business, Major Business or Northern Ireland Revenue .
•
Where the Product identifier is ‘Calls and Lines’, that element is pointed to an agreed range of Calls and
Rentals Products..
•
Where the Product identifier is described as ‘Not TLC’ (Total Labour Cost), that element is recognised and
treated as an overhead of the whole base.
Data Source/s
Galileo, Merlin and Nexus systems.
DTTCE
ALL
Core
OUCs
Trading Stocks – Network Equipment
Description
This base apportions trading stocks arising as a result of BT’s trade in network equipment, such as private circuits,
optical fibre network etc. These fixed assets relate to the engineering stores entitled ‘Materials Awaiting
Installation’.
Methodology
The ‘Material Awaiting Installation’ balance is apportioned using the closing stock balances from stock reports
that are maintained and provided by the Stock Accounting Unit.
Each item of BT’s stock is assigned a Quarterly Rolling Forecast (QRF) code (groups of item codes with similar
functional categories) and the base is derived from a download of closing stock balance by QRF code specifically
for network stock. A separately maintained spreadsheet provides the stock COWs and these are mapped to
specific cost centres based on where the costs are allocated.
Data Source/s
The data is sourced through the Automated Supply Chain (ASC) system which is a stores ordering, issuing and
reporting system. The data is then fed through Management Information Database (MIRAS) before being
forwarded by the Data supplier.
Stock report that gives closing balances by QRF. Spreadsheet that maps QRF codes to AS cost centres.
Management have used a cumulative period which they believe to be reflective of the full year.
DTTCY
ALL
Core
OUCs
Output VAT
Description
This base apportions the Output VAT creditor, which arises from the VAT collected by BT from UK customers for
forwarding on to HMRC. These VAT creditor balances are attributed pro-rata using BT's core revenue.
Methodology
This base is prepared using revenue generated by BT UK sourced from apparatus sales, connection charges, other
single payments, rentals, enhanced maintenance, calls gross, calls discounts and receipts from Other
Communication Providers (OCPs). These different classifications of revenue equate to specific sectors (groups of
General Ledger codes with similar functional categories) within the ASPIRE system.
The apportionment for this base is derived from a download of BT’s UK revenue from the ASPIRE system for each
of these sectors by cost centres and is solely apportioned to Products.
Data Source/s
System generated base.
FTQ
ALL
Core Capital and Current Pay
Description
FTQ is a base that uses previously apportioned core capital and current pay F8 codes, excluding those in
Exceptional Organisational Unit Codes (OUCs); to form system generated overhead bases.
Methodology
This method is used to attribute costs that are relevant to all of a unit e.g. coaching and training costs within a
unit and it would be appropriate for them to be apportioned in line with the previously apportioned pay costs of
that unit. This base is also used to apportion balance sheet balances – including Fixed Asset, Work in Progress.
The FTQ overhead base is derived as follows:
59
Base derivation
The ‘FTQ’ Base
Costs types
F 8 Costs
OUC
All costs in the
Line of
Business (LoB)
Self contained
processing OUCs
Previous apportionments
x + y + z = 100%
Other costs
x%
y%
z%
Capital and current
pay costs (core only)
Other OUCs in
LoB
Other costs
x%
y%
z%
Base application
Capital and current
pay costs (core only)
F8
apportioned
by FTQ
Self contained
processing units
x%
y%
z%
Other OUCs
taking these
costs
x%
y%
z%
OUC Overhead
Products
Product A
Product B
Product C
Product A
Product B
Product C
Product A
Product B
Product C
Product A
Product B
Product C
FTQ_Diagram1
•
The core current and capital pay costs of the unit are identified.
•
These costs will have been previously apportioned in the ASPIRE system using methodologies relevant to the
particular activities. Previous apportionments will have exhausted these pay costs to cost centres. The
percentage weights applied to these Products provide the base ‘FTQ’.
Data Source/s
The data is system generated from ASPIRE
Core Capital and Current Pay – Previously apportioned
Description
The designator FTQ_PCT uses all previously apportioned core capital and current pay F8 codes, including those in
Exceptional OUCs; to form system generated overhead bases.
Methodology
This method is used to attribute costs that are relevant to the whole of a unit, including Exceptional OUCs, and as
such it would be appropriate for them to be apportioned in line with all the previously apportioned pay costs.
The FTQ_PCT base is typically applied to overhead costs related to the activity of the whole unit such as NewStart
Leaver Payments, General Management pay, general travel and subsistence and stationery costs.
The “PAY” Base
Base derivation
ALL
F8 Costs
All costs in the
LoB
OUC
Costs types
Self contained
processing
OUCs
Other costs
OUC Overhead
Products
Product A
Product B
Product C
x%
y%
z%
Product A
Product B
Product C
Self contained
processing
units
x%
y%
z%
Product A
Product B
Product C
Other OUCs
taking these
costs
x%
y%
z%
Product A
Product B
Product C
Other OUCs in
LoB
Other costs
F8 apportioned
by PAY
Previous apportionments
x + y + z = 100%
x%
y%
z%
Capital and Current
Pay costs (core only)
Capital and current
pay costs (core only)
Base application
FTQ_PCT
FTQ_PCT_Diagram1
The FTQ overhead base is derived as follows:
•
The core current and capital pay costs of the unit (including those in Exceptional OUCs) are identified.
•
These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these products provide the base ‘PAY’.
60
Use F8s to DD1:
List of F8 Codes
to be used to
dervive relevant
download from
ASPIRE
Use
F8s
to to
Use
F8's
produce
data
produce
data
ASPIRE:
array
relevant base
information
by AS Cost
Centre
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
Array :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Array:
Eliminate data for
AS Cost Centres
not in DD2
100%
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
AS Cost Centre A
AS Cost Centre C
= 100%
FTQ_PCT_Diagram2
“FTQ”, the Data Designator 1, specifies the pay transactions (range of F8 codes) from which the base is derived
i.e. pay codes. This data is held within the ASPIRE system.
“PCT” the Data Designator 2, specifies the AS Cost Centres to which the cost should be apportioned. This type of
base can be used where the engineering Travel and Subsistence of certain OUCs has to be apportioned over a
limited range of Plant Groups (PGs) using a pay base specific to the PGs supported by those units.
Data Source/s
The data is system generated from ASPIRE.
FUEL
Y, Y3,
YL
External Payment for Vehicle Fuel
Description
This base apportions BT External Payment for Vehicle Fuel.
Methodology
The cost of Motor Transport (MT) vehicle fuel is recovered from the Lines of Business (LoB) via the transfer
charges to the Organisational Unit Codes (OUCs)/Organisational Units based on the utilisation of the services
provided to the OUC.
The transfer charges are used to provide an analysis of the fuel in the different parts of BT. The analysis of the
transfer charge amounts are used to calculate an overall base that is then applied to the underlying actual costs,
which are attributed pro-rata to the transfer charge.
Data Source/s
Internal transfer charges for fuel on the BT general ledger.
NCOFADA
-ALLA
NonCore
OUC G
Transmission Depreciation and Fixed Assets
Description
This base is used to apportion corporate provisions relating to Transmission depreciation costs and fixed assets.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the underlying Transmission costs are updated. Each base has two separate markers
that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. NCOFADA).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALLA).
61
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Eliminate data for
AS Cost Centres
not in DD2
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100 %
NNCOFADA_ALLA_Diagram1
Data Source/s
‘NCOFADA’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total Transmission depreciation costs incurred by BT during the year.
‘ALLA’, the Data Designator 2, specifies the AS Cost Centres to which the corporate provisions relating to
Transmission should be apportioned i.e. all AS Cost Centres.
The NCOFADA apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ALLA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the balance
on the corporate Transmission provisions.
‘ALLA’ refers to all BT Business Cost Centres.
Income / cost to be
apportioned
Corporate
Provisions
Transmission
Apportionments from
DD1 (NCOFADA)
DD1:NCOFADA
Previously
apportioned Transmission
costs on all units
AS Cost Centres in
DD2 (ALLA)
DD2: ALLA
BT Business
Cost Centres
NCOFADA-ALLA_Diagram2
NCOFAEA
NonCore
OUC G
Software Amortisation and Fixed Assets
Description
This base is used to apportion corporate provisions relating to amortisation depreciation costs and fixed assets.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the underlying Software costs are updated. Each base has two separate markers that
govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. NCOFAEA).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALLA).
62
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8s to
produce download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100 %
Eliminate data for
AS Cost Centres
not in DD2
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100 %
NCOFADM_ALLA_Diagram1
Data Source/s
‘NCOFAEA’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total Software depreciation costs incurred by BT during the year.
‘ALLA’, the Data Designator 2, specifies the AS Cost Centres to which the corporate provisions relating to
Transmission should be apportioned i.e. all AS Cost Centres.
The NCOFAEA apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ALLA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the balance
on the corporate Apparatus provisions.
‘ALLA’ refers to all BT Business Cost Centres.
Income / cost to be
apportioned
Corporate
Provisions
Transmission
Apportionments from
DD1 (NCOFAEA)
DD1:NCOFAEA
Previously
Apportioned Apparatus
costs on all units
AS Cost Centres in
DD2 (ALLA)
DD2: ALLA
BT Business
Cost Centres
NCOFADA-ALLA_Diagram2
NCOLF
ALL
NonCore
OUCs
Liquid Fund Transactions
Description
This base apportions all liquid fund transactions which are defined as Net Short Term Interest Payable, including
Interest Receivable, Profit and Loss (P&L) Cash, Short Term Investments (both internal and third party), and Short
Term Borrowings on the Balance Sheet. This base apportions mainly to an Intermediate Activity Group AG113
(Total Liquid Funds and Interest)
Methodology
All liquid funds (e.g. cash, short-term borrowings and short-term investments) are attributable to the Access,
Wholesale and Retail Markets. To allow visibility of such transactions in these Markets, the monies are collected
against AG113 (Total Liquid Funds and Interest). There are four specific GFR lines which determine whether an
activity is Liquid Funds:
•
GFR 160
Net Interest Payable.
•
GFR 231
Short-Term Investments.
•
GFR 232
Cash.
•
GFR 250
Short-Term Borrowings.
These sectors are 100% apportioned to AG113 (Total Liquid Funds and Interest)
NCOTH
NCOVATD
B111
6
Non-Core
G106
BT Group – Output VAT Related Creditors
Usually non-core entities, such as B1116, attribute all of their revenues, costs and capital employed directly to
Retail Residual. However for Openreach an exception has been made, because all of this LoB's costs are
attributed to Services/Markets, the costs on B1116 flow into the Wholesale Residual Market
63
Description
This base apportions the Output VAT related creditors arising from the VAT collected by BT’s corporate unit
forwarding on to HMRC.
Methodology
This base is prepared using revenue generated by BT UK sourced from:
•
Apparatus sales.
•
Connection charges.
•
Other single payments.
•
Rentals.
•
Enhanced maintenance.
•
Calls gross.
•
Calls discount.
•
Revenue from Other Communication Providers (OCPs).
These different classifications of revenue equate to specific sectors (groups of General Ledger codes with similar
functional categories) within the ASPIRE system.
Data Source/s
This base apportions using the analysis produced for the core VAT Creditors base - DTTCY. All core revenues are
taken but Revenue from Other Communication Providers is excluded from the final allocation.
OPEACNALL
ALL
Core
OUCs
Accommodation Charges – Creditors and/or Receivables
Description
This base apportions creditors/Receivables arising from accommodation charges, such as balances on
accommodation costs (external rent receivables, prepaid accommodation expenditure and provisions for
dilapidations and major repairs).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time accommodation charges are updated. Each base has two separate markers that
govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEACN).
•
The Accounting Separation (AS) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
DD1:
List of F8 Codes
to be used to
derive relevant
download from
ASPIRE
Use
toto
UseF8s
F8's
produce
producedownload
download
AS Cost Centres
that are not list in
DD2 are excluded
from the ASPIRE
download and the
remaining data is
rebased to 100%
ASPIRE:
download
relevant base
information
by AS Cost
Centre
Download
:
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
100%
Download
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
Centres to which
the balance
should be
apportioned
Download:
AS Cost Centre A
AS Cost Centre C
= 100%
OPEACN_ALL_Diagram1
‘OPEACN’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. accommodation costs incurred by BT during the year. This data is held within the ASPIRE system by
AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which these Receivables/creditors associated with
accommodation should be apportioned.
64
The OPEACN apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the
accommodation Receivables and creditors.
‘ALL’ refers to BT Group Cost Centres.
Apportionments
from DD1
(OPEACN)
Income / cost to be
apportioned
Creditors/debtors
arising from
accommodation
charges
DD1: OPEACN
P&L accommodation
costs
AS Cost Centres in
DD2 (ALL)
DD2: ALL
BT
Group
Cost Centres
OPEACN_ALL_Diagram2
Data Source/s
The data is system generated from ASPIRE
OPEPSTPCT
B, T,
J, K
and M
Miscellaneous Creditors
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed from
HMRC arises from BT purchases.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to provide the appropriate base (Data Designator
1, i.e. OPECST).
•
The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Miscellaneous Creditors Apportion Process
Use F8s to
produce
download
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within the
system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which these VAT input creditors should be
apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the VAT Input
Creditors.
‘PCT’ refers to BT Group Cost Centres.
65
Apportionments
from DD1
(OPECST)
Income / cost to be
apportioned
Input VAT in
Balance Sheet
DD1: OPECST
Previously apportioned
Operating Costs (exc
Pay, Depreciation) and
capital additions
AS Cost Centres in
DD2 (PCT)
DD2: PCT
BT
Group
Cost Centres
OPECST_PCT_Diagram2
Data Source/s
The data is system generated from ASPIRE
OPECSTALL
ALL
Core
OUCs
Miscellaneous Creditors
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed from
HMRC arises from BT purchases.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach
and relates to the total BT Group costs. It is recalculated each time operating costs are updated. Each base has
two separate markers that govern:
•
The income/cost transactions the system should draw upon to provide the appropriate base (Data Designator
1, i.e. OPECST).
•
The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
Diagram: Miscellaneous Creditors Apportion Process
Use F8s to
produce download
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within the
system by AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which these VAT input creditors should be
apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the VAT Input
Creditors.
‘ALL’ refers to BT Group Cost Centres.
66
Apportionments
from DD1
(OPECST)
Income / cost to be
apportioned
Input VAT in
Balance Sheet
DD1: OPECST
Previously apportioned
Operating Costs (exc
Pay, Depreciation) and
capital additions
AS Cost Centres in
DD2 (ALL)
DD2: ALL
BT
Group
Cost Centres
OPECST_ALL_Diagram2
Data Source/s
The data is system generated from ASPIRE.
OPEOTHCOR
All
Wayleaves Buy Outs Receivables and Accrued Creditors
Description
This base is used to apportion BT Group Wayleaves Buy Outs Receivables and accrued creditors. Wayleaves refers
to the arrangement in place when another company utilises BT land or plant/equipment (e.g. telegraph poles) to
provide service to a third party.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
The cost transactions the system should draw upon to derive the appropriate base (Data Designator 1, i.e.
OPEOTH).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
Diagram: Normal Trading Activity Apportion Process.
Use F8s to
produce
download
‘OPEOTH’, the Data Designator 1, specifies the cost transactions (range of f8 codes) from which the base is
derived, i.e. total operating costs, excluding depreciation and pay costs incurred by BT during the year. This data
is held within the system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which Wayleaves Buy Outs Receivables and accrued
creditors should be apportioned.
The’ OPEOTH’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the
‘COR’ group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the Wayleaves
Buy Outs Receivables and accrued creditors balances.
‘COR’ refers to BT Core Business Cost Centres.
67
Income / cost to be
apportioned
Wayleaves
Debtors Accured
Creditors and
deferred income
Apportionments from
DD1 (OPEOTH)
DD1: OPEOTH
Total Operating
Costs excluding
depreciation and
pay
AS Cost Centres in
DD2 (COR)
DD2: COR
BT Core
Business Cost
Centres
OPEOTH_COR_Diagram2
Data Source/s
The data is system generated from ASPIRE.
OPEPST,
OPEPSTALA
ALL
Core
OUCs
Excep
t B's
Miscellaneous Creditors
Description
This base apportions the miscellaneous creditors arising from current expenditure.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach
and relates to BT Group costs It is recalculated each time operating costs are updated. Each base has two separate
markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEPST).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ALA).
Use F8s to
produce
download
‘OPEPST’ The Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is derived
i.e. all operating costs excluding Payments to Overseas Administrations and Other Communication Providers
(OCPs), incurred by BT during the year. This data is held within the system by AS Cost Centre.
‘ALA’, the Data Designator 2, specifies the AS Cost Centres to which the miscellaneous creditors balance should be
apportioned.
The ‘OPEPST’ apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘ALA’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘ALA’ refers to all AS Cost Centres, which incurred costs, specifically excluding those with negative costs.
68
Data Source/s
The data is system generated from ASPIRE
OPEPSTPCT
ALL
Core
OUCs
except
B
Miscellaneous Creditors
Description
This base apportions the miscellaneous creditors arising from current expenditure.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach
and relates to LoB or individual unit costs. It is recalculated each time operating costs are updated. Each base has
two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEPST).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Use F8s to
produce
download
‘OPEPST’ The Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is derived
i.e. all operating costs excluding Payments to Overseas Administrations and Other Communication Providers
(OCPs), incurred by BT during the year. This data is held within the system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the miscellaneous creditors balance should be
apportioned.
The ‘OPEPST’ apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘ALA’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘PCT’ refers to all AS Cost Centres, which incurred costs, specifically excluding those with negative costs.
69
Data Source/s
The data is system generated from ASPIRE
OPEPSTPCT
B, T,
J, K
and M
Miscellaneous Creditors
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed from
HMRC arises from BT purchases.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach
and relates to LoB or individual unit costs. It is recalculated each time operating costs are updated. Each base has
two separate markers that govern:
•
The income/cost transactions the system should draw upon to provide the appropriate base (Data Designator
1, i.e. OPECST).
•
The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Miscellaneous Creditors Apportion Process
Use F8s to
produce
download
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within the
system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which these VAT input creditors should be
apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the VAT Input
Creditors.
‘PCT’ refers to BT Group Cost Centres.
70
Apportionments
from DD1
(OPECST)
Income / cost to be
apportioned
Input VAT in
Balance Sheet
DD1: OPECST
Previously apportioned
Operating Costs (exc
Pay, Depreciation) and
capital additions
AS Cost Centres in
DD2 (PCT)
DD2: PCT
BT
Group
Cost Centres
OPECST_PCT_Diagram2
Data Source/s
The data is system generated from ASPIRE.
OPEXPS,O
PEXPSCOR
ALL
Core
OUCs
Account Payable Activities – Prepayments
Description
This base apportions the prepayments arising from Accounts Payable activities.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach
and relates BT Group costs. It is recalculated each time operating costs are updated. Each base has two separate
markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
Use F8s to
produce
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‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which the Receivables for prepayments balance
should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the Receivables for
prepayments balance.
‘COR’ refers to BT Core Business Cost Centres.
71
Data Source/s
The data is system generated from ASPIRE.
OPEXPS_C
OR
C,T,M
7,W
Account Payable Activities – Prepayments
Description
This base apportions for prepayments arising from Accounts Payable activities not relating to Wholesale Line of
Business.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
Use F8s to
produce
download
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which the Receivables for prepayments balance
should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the Receivables for
prepayments balance.
‘COR’ refers to BT Core Business Cost Centres.
72
Data Source/s
The data is system generated from ASPIRE
OPGENAC
C
TS, TX
Description
This base apportions the BT TSO General Office Accommodation Transfer Charges from Group Property. This
includes the Data Centres (DC) charges.
Methodology
Group Property charge to BT TSO and these charges are posted on two F8 codes. This base apportions these
charges to Products & Plant Groups using the DC budgeted data which splits the overall budget to LOBS. A
suitable treatment is applied for each LOB.
The remaining (general) charges are apportioned using AG102 (BT TSO Pay & Managed Assets) system base.
Data Source(s)
BT TSO Finance for the Data Centres Budget Split.
The Ledgers for the actual charges
OPEXPSPCR
K
Account Payable Activities – Prepayments
Description
This base apportions for prepayments arising from Accounts Payable activities relating to Wholesale Line of
Business.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCR).
Use F8s to
produce
download
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
73
‘PCR’, the Data Designator 2, specifies the AS Cost Centres to which the Receivables for prepayments balance
should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the Receivables for
prepayments balance.
‘PCR’ refers to BT Core Business Cost Centres.
Data Source/s
The data is system generated from ASPIRE.
OPEXPSPCT
ALL
Account Payable Activities – Prepayments
Description
This base apportions for prepayments arising from Accounts Payable activities all LoBs
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Use F8s to
produce download
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the Receivables for prepayments balance
should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘COR’
group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the Receivables for
prepayments balance.
‘PCT’ refers to BT Core Business Cost Centres
74
.
Data Source/s
The data is system generated from ASPIRE.
ORCOPOO
I
ALL B
OUCs
Description – Sale of Scrap
This base apportions Other Operating Income received by Openreach from the sale of scrap copper.
Methodology
Income from scrap copper is apportioned to PG986R – Openreach Other Activities, PG118C – D-side Copper
Capital and PG980R – Repayment Works.
Income allocated to PG986R is based on actual cable recovery data provided by Openreach. The remainder is
allocated between PG118C and PG980R based on the amount of capital expenditure on D-side copper cable that
is proper to Repayment Works.
Data Sources
Cable recovery data from Openreach, Capex data from the Internal Projects Ledger and the Life of Plant List.
ORCUMN
OR
BY
Open Reach Cumulo Normal
Description
BT’s cumulo rates liability covers what we pay in non-domestic rates on its rateable network assets in the UK. Non
domestic rates are effectively a form of property tax. Most businesses pay rates on properties and other rateable
assets that they occupy.
The rateable assets within BT’s cumulo assessment include exchange buildings, telegraph poles, duct, manholes,
cabinets, payphones, copper and fibre. Under rating principles these are assessed together, hence the term
“cumulo”. Other parts of BT’s property estate - e.g. offices and workshops - are assessed separately and do not
form part of BT’s cumulo assessment.
Non-domestic rating liabilities are calculated by applying a rate in the pound (rate poundage) to a rateable value
(RV). Rate poundages are the same for all ratepayers in each UK country. RVs are set by the UK rating authorities
under statutory rating law and principles.
The rateable value of BT’s cumulo assessment reflects the value of all the assets considered together. This cannot
be deconstructed to reflect individual lines of business or individual products. The base apportions BT’s cumulo
rates charges to products and services.
Rate poundages generally increase by RPI each year. RVs are reset every five years; however ratepayers may
appeal their RVs if they believe there have been “material changes in circumstance” (MCCs). What constitutes a
valid MCC is defined by legislation.
In recent years BT has successfully appealed its cumulo RV primarily as a result of increased levels of unbundling.
The CUMRBTE base applies to the changes to BT’s cumulo liabilities as a result of increased unbundling. The
CUMNORM base applies to all other BT cumulo liabilities.
Methodology
BT’s cumulo rates charge is allocated to products and services using a three stage process.
Stage 1: BT’s cumulo liabilities are divided into those to be allocated using the CUMNORM base and those to be
allocated using the CUMRBTE base.
Stage 2: CUMNORM base costs are allocated across line of business (LoB) and the rateable classes of work (CoW)
using profit weighted net replacement costs at the start of the rating valuation period.
Stage 3: These CoW liabilities are then allocated to plant groups, components and then services using standard
LoB allocation bases.
Data Source/s
75
Current Cost Accounting (CCA) valuations at year end.
ASPIRE P9 downloads.
PDTACPA
B,
Accommodation Plant Network (Wholesale): Capital
BF,
Description
BI,
The base apportions capital work in BT TSO (CoW ACPA) relating to racks, power and ventilation.
BJ,
Methodology
BK,
BL,
The base apportions to PG132B Local Loop Unbundling (LLU) Hosting Rental,PG136A Local Loop Unbundling
(LLU) Surveys and PG953C NGA DSLAM and Cabinets, using an analysis of the Fixed Asset Register (FAR) Life of
Plant (LoP List) and Capex data from Openreach.
BV,
Data Source/s
BLP
The analysis used is extracted from the Period 10 FAR; Life of Plant (LoP List), Policy Code ACPA and Capex data
from the Internal Projects Ledger (IPL). Management believe this period is indicative of the full year position.
BW
BY
PDTATM
BL
Provision, rearrangement and recovery of Asynchronous Transfer Mode (ATM) equipment
BV
Description
MJ
This base attributes capital expenditure for provision, rearrangement and recovery work of ATM equipment in the
core transmission network by the Broadband and Data division within BT Wholesale. The base contains costs for
Depreciation, Pay, Capital Expenditure, contracts and indirects. These costs feed into the classes of work (CoW)
ATM.
TA
TB
TBS2
TBS3
TN
TT
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, and multiple virtual circuits per network access and flexible bandwidth per connection.
Methodology
Frame Stream allocation is identified by using the LoP (Life of Plant) list Asset Policy Code ATMR depreciation cost
as a percentage of the total ATM depreciation. The remaining percentage is allocated to the ATM Plant Groups
(PGs) using NEI (Network Element Inventory) and AIM (Analysis and Inventory Module) reports.
The NEI and AIM databases provide yearly and half yearly downloads of volumes of ports in the ATM network. The
volume data is converted into equivalent card volumes which are then weighted by latest prices from the AlcatelLucent price catalogue to take into consideration the different cost profiles of each card.
The NEI report provides data on each port as to whether it is customer or network interfacing by using a unique
identifier:
•
UNI (customer).
•
NNI (network).
This information is used to split customer interface PGs and the network interface PG.
The cards that support the customer interface functionality are identified by bandwidth and are allocated to the
appropriate bandwidth specific customer interface PGs.
The cards recorded in the AIM report primarily support the Network switching function and therefore used to
derive the allocation to PG656A (ATM Network Switching) on the same basis as the above. However, the high BW
cards which are recorded in the AIM report do not support the network switching function and are therefore
allocated to the customer and network interface PGs using the UNI and NNI split as a proxy.
The data required for the year end base production will use September volumes/data for the NEI, AIM and LoP list
reports. For the interims, March volumes and data will be used to maintain consistency with the Core Transmission
base allocations. Spare capacity is spread over the existing PGs for the interface cards as these could be used for
either customer or network facing. The split of working customer and network facing cards is used as a proxy to
allocate the spare costs to the relevant PGs.
Data Source/s
Volumes of cards/ports come from the NEI (Network Element Inventory) and AIM (Analysis and Inventory
Module) supplied from the Element Manager database via the capacity delivery manager in BT TSO (Interims –
March, Year end – September).
Card prices are supplied by BT Wholesale.
LoP (Life of Plant) List.
76
PDTBHQ
B, MJ
Inland Sub Sea Cable
Description
This base apportions the asset values and annual depreciation charge booked to OUCs B and MJ for Inland Sub
Sea Cable to the Openreach Backhaul Fibre Plant Group (PG).
Methodology
Allocates 100% to PG170B Openreach Backhaul Fibre.
PDTBHQ
B
Inland Sub Sea Cable
BK
Description
BL
This base apportions the asset values and annual depreciation charges booked to all OUCs (except B and MJ) of
Inland Sub Sea Cable to the Wholesale Inner Core Fibre Plant Group (PG).
BV
MJ
TB
Methodology
Allocates 100% to PG350N Wholesale Inner Core Fibre.
TBS2
TBS3
TT
PDTCCI
TA
Common Capabilities
TB
Description
TF
The base apportions costs and balance sheet identified with Common Capability assets such as Intelligent Service
Layer (CISL) and Call Messaging assets.
TN
TT
TZ
CISL is a system which replaces BT's legacy Network Intelligence Platform which provides many of BT's 0800,
0845, 0870 and premium rate number translation services. Call messaging assets support Call Minder 1571.
Other CCI assets support a variety of applications.
Methodology
During the year depreciation costs for Call Minder and CISL are derived from the Life of Plant (LoP) List using
asset policy code (APC) CIIR for CISL (PG276A) and APC CIMS for Call Minder (P287). The percentages allocated to
these entities form the basis of the PDTCCI base. Any remaining percentages follow an ASPIRE download for the
EXCEPT Base for BT TSO.
Where the EXCEPT base allocates for PG276A and P287 these percentages will point to the existing PG276A and
P006 entities.
Data Source/s
Life of Plant List (LoP List) – extracted from the fixed asset register.
COMP base for BT TSO supplied by Group Network Cost Analysis team.
PDTCJC
B
Construction Junction Cable – Metallic
BK
Description
BL
This base allocates the asset values and annual depreciation charges associated with the construction of metallic
junction cables in the core and 21c networks to a number of fibre Plant Groups.
BLH
BV
MJ
TN
TT
Methodology
PACS contains circuit path information for all SDH circuits. This data is extracted and analysed in an Access
database. From this we extract the total fibre km attributable to either 20c or 21c. For 20c fibre the costs are
allocated to either PG170B for OUC B & MJ or PG350N for all other OUCs.
The remaining percentage attributable to 21c is then broken down by the tier of the bearer and this drives the
allocation to 21C PG.
77
Data Source/s
PACS.
PDTCJF
ALL
Construction Junction Cable – Optical Fibre Assets
Description
This base allocates the asset values and annual depreciation charges associated with the construction of optical
fibre junction cables in the core and 21c networks to a number of fibre Plant Groups.
Methodology
PACS contains circuit path information for all SDH circuits. This data is extracted and analysed in an Access
database. From this we extract the total fibre km attributable to either 20c or 21c. For 20c fibre the costs are
allocated to either PG170B for OUC B & MJ or PG350N for all other OUCs.
The remaining percentage attributable to 21c is then broken down by the tier of the bearer and this drives the
allocation to 21c PG.
Data Source/s
PACS.
PDTCOBU
S
All
OUC’s
Business Drop Maintenance
Description
This base apportions repair costs for drop wires to:
PG121M - Business PSTN Maintenance
PG123M (ISDN Highway Maintenance)
PG981R - Openreach Time Related Charges
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Special Fault Investigation (SFI). The cost
for this activity is derived by multiplying the manhour rate x KMH for SFI. The total cost for the CoW is obtained
from CID and the proportion of cost allocated to SFI is based on the implied cost from the man hour rate x KMH.
The residual proportion of the cost after subtracting the above is then The apportionment split is derived from the
relative proportion of business connections between PSTN and ISDN. This connection information is obtained
from OR Management Accounts.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
Openreach Management Accounts.
78
PDTCORE
S
BV
Residential Drop Maintenance
Description
This base apportions repair costs for drop wires to:
PG122M - Residential PSTN Maintenance
PG981R - Openreach Time Related Charges
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Time Related Charges (TRCs) and Special
Fault Investigation (SFI). The cost for these activities is derived by multiplying the manhour rate x KMH for the
above activities. The total cost for the CoW is obtained from CID and the proportion of cost allocated to SFI and
TRC is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to Residential PSTN Maintenance.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
PDTCORL
U
TT
Core Nodes –Alcatel-Lucent
Description
This base apportions the historical cost and balance sheet for core node equipment to Plant Groups (PGs).
Core nodes are the high capacity, large scale routers providing cost efficient connections between Metro Nodes.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-nodes
and transmissions) strategic domains. Alcatel-Lucent is one of these suppliers.
Methodology
The Core-Node contains functionality for the transport of connectivity, voice and broadband services, via routers.
The latest 21CN business case model is analysed into the categories, for which we have assigned PGs, for the
assets the Core node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital for each of the categories provide the apportionment.
The recipients are:
•
PG878A Metro BB LNS
•
PG879A Metro BBL3
•
PG880A (BEA) Broadband Edge Aggregator
•
PG881A (BRAS) Broadband Remote Access Server
•
PG882A (FER) Front End Router
•
PG887A Ethernet Edge Aggregator Bandwidth
•
PG888A Ethernet Edge Aggregator Port
•
PG889A Infrastructure Ethernet
•
PG890A Media Gateway
•
PG892A Sync Racks
•
PG893A (MSPE) Multi Service Provider Edge Routers
•
PG895A P-Router Large (Core)
•
PG896A P-Router Metro
•
PG898A Core Directors
Data Source/s
21CN business case CAPEX forecast.
79
PDTCPDM
I
ALL
Wholesale Line of Business of work on ISDN30 connections
Description
This apportionment base is used to remap ISDN30 connection (classes of work (CoW) CPDI), Megastream
connections ((CoW) CPDM) and Analogue connections ((CoW) PSAA). The costs include Non-ETG Pay and stores.
Methodology
Costs for all three CoW are apportioned to PG114L (ISDN30 Connections), PG413P (Private Circuit Megastream
Connections) and PG421S (Private Circuit Analogue Installation) based on an analysis of the volumes and relative
price of each of the Products at Period 9.
Data Source
ISDN 30 Fill Factor from Model 25, IX Vols / Prices from BTWR6_1314_BTW-Interconnect Revenue and IX Vols /
Prices OR Revenue P12 Control File.
PDTCRDA
C
PDH Digital Repeater Equipment
MJ
Description
TB
This base allocates the depreciation costs and asset values of class of work CRD to Plant Groups representing
bearers in the core network. These assets relate to the older transmission network assets which have largely been
supplemented by the more modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
TBS2
TBS3
TN
TS
TT
W
Combinations of assets in the transmission network (i.e. two bits of electronics joined by fibre and duct) make up
what is known as a “bearer”. The bearers within the network carry circuits that relate to different products and
bandwidths. More detail can be found in Section 9 Data Sources under CTCS (Core Transmission Costing System).
The cost of a bearer includes an apportionment of the costs of these electronic assets.
Methodology
Most PDH electronics are specific to bearer types, and are dependent upon the capacity the of bearer- 2Mbit/s,
8Mbit/s, 34Mbit/s, 140Mbit/s and 565Mbit/s. Individual PGs capture the cost of each bearer type separately.
CTCS provides the volumes of each type of bearer. These volumes are weighted by depreciation in order to get the
allocation to PG.
Direct depreciation costs for PDH electronics, for period 6, sourced from the Life of Plant (LoP) list, are driven
directly to the relevant bearers’ types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed into
PG on the basis of the direct allocations.
Data Source/s
LoP list for Period 6, CTCS. Management believes this period to be reflective of the full year.
PDTCRFA
ALL
PDH Optical Fibre Repeater Equipment
Description
This base allocates the depreciation costs and asset values of class of work CRF to Plant Groups representing
bearers in the core network. These assets relate to the older transmission network assets which have largely been
supplemented by the more modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
Combinations of assets in the transmission network (i.e. two bits of electronics joined by fibre and duct) make up
what is known as a “bearer”. The bearers within the network carry circuits that relate to different products and
bandwidths. More detail can be found in Section 9 Data Sources under CTCS (Core Transmission Costing System).
The cost of a bearer includes an apportionment of the costs of these electronic assets.
Methodology
Most PDH electronics are specific to bearer types, and are dependent upon the capacity of the bearer- 2Mbit/s,
8Mbit/s, 34Mbit/s, 140Mbit/s and 565Mbit/s. Individual Plant Groups (PGs) capture the cost of each bearer type
80
separately.
CTCS provides the volumes of each type of bearer. These volumes are weighted by depreciation in order to get the
allocation to PG.
Direct depreciation costs for PDH electronics at Period 6, sourced from the Life of Plant (LoP) list, are driven to
the relevant bearer types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed into
PGs on the basis of the direct allocations.
Data Source/s
Life of Plant (LoP) list for Period 6, CTCS. Management believes this period to be reflective of the full year.
PDTCRHQ
C
ALL
PDH Repeaters (by Contractors)
Description
This base allocates the depreciation costs and asset values of class of work CRHQ to Plant Groups representing
bearers in the core network. These assets relate to the older transmission network assets which have largely been
supplemented by the more modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
Combinations of assets in the transmission network (i.e. two bits of electronics joined by fibre and duct) make up
what is known as a “bearer”. The bearers within the network carry circuits that relate to different products and
bandwidths. More detail can be found in Section 9 Data Sources under CTCS (Core Transmission Costing System).
The cost of a bearer includes an apportionment of the costs of these electronic assets.
Methodology
Most PDH electronics are specific to bearer types, and are dependent upon the capacity of the bearer- 2Mbit/s,
8Mbit/s, 34Mbit/s, 140Mbit/s and 565Mbit/s. Individual PGs capture the cost of each bearer type separately.
CTCS provides the volumes of each type of bearer. These volumes are weighted by depreciation in order to get the
allocation to PG.
Direct depreciation costs for PDH electronics at Period 6, sourced from the Life of Plant (LoP) list, are driven to
the relevant bearer types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed into
PGs on the basis of the direct allocations.
Data Source/s
LoP list for Period 6. Management believes this period to be reflective of the full year.
PDTDMC
M
Operator Call Handling Centres (OCHC) – Directory Enquiry Activities
M7F3
Description
MJ
This base apportions Profit and Loss (P&L) Capital spend and Balance Sheet costs relating to Operator Call
Handling Centres (OCHC) engaged primarily in Directory Enquiry (DQ) activities. Costs relate to the provision and
recovery of operating access (e.g. queuing equipment) and test equipment rented to new operator systems (e.g.
Operator Service System (OSS), Digital Access Signalling System (DASS)) including:
MLC
•
Supply and installation of Remote Integrated Services Line Units and Interface Cabinets to connect Directory
Assistance Centres (DAC) to the switch, bureau Primary Multiplexer (PMUX).
•
Provision and upgrade of Automatic Voice Response, DAC and Operator Keyboard Display Terminal
81
equipment controlled by Operator Services beyond the interface cabinet and PMUXs in the Enterprise
Information System (EIS) and DAC.
Extension and modification of Derived Services Network (DSN) switches to facilitate:
•
Automatic Call Distribution for DAC.
•
Directory assistance console.
From the F8 Code level, costs flow into the classes of work (CoW) DMC.
Methodology
Value of costs to be apportioned are calculated using volume data (call minutes) and capital cost information
obtained from the Fixed Asset Register (updated monthly).
Capital costs are attributed by asset (i.e. equipment) as listed by Asset Policy Codes in the Fixed Asset Register.
Each asset element is assigned to one of the Plant Group (PG) or Product destinations according to the
type/function of the asset:
•
P490 (BT DQ118 Service Provider)
•
P494 (Wholesale Agency Directory Enquiries (DQ))
•
PG216C (Local exchange general switchboard)
•
PG405A (DMS100 Call centre switches)
•
PG924A (Directory Enquiries (DQ), non-chargeable)
Also used is the Operfile, this is a spreadsheet used to derive apportionment information for Operator and
Directory Assistance costs. The file is a summary of information from a variety of other data sources and is
updated monthly on a cumulative basis.
Diagram:
Data Source/s
Inland and International Directory Assistance.
Central Data Store (CDS), Call Statistics Centralisation System (CSCS) and Featurenet (part of the Powerhouse
system).
PDTDSLP
MJ
Provision of Digital Subscriber Loop
Description
This allocates the cost of provision for ADSL (Asymmetric Digital Subscriber Line) and SDSL (Symmetric Digital
Subscriber Line).
It contains the Pay and Stores costs for this activity.
82
Methodology
•
PDTDTTK
ALL
Allocates directly to PG145N ADSL Connections
Kilostream Assets and Depreciation
Description
This base apportions the gross book value of Kilostream equipment assets and the associated depreciation and
accumulated depreciation charges to Plant Groups (PGs).
Kilostream is the brand name for BT’s portfolio of low speed digital private circuits. The circuits operate at
bandwidths of 2.4kbit/s up to 64kbit/s and are provided using BT’s Digital Private Circuit Network (DPCN).
Methodology
The PGs that these Kilostream assets and depreciation amounts are apportioned to are:
PG400T (ACE-Automated Cross-connection Equipment/ENA-Equipment Network Access core equipment)
PG412C (Private Circuits Kilostream Rental Capital).
An apportionment base between these two PGs is derived by reviewing the Life of Plant (LoP) list. The LoP list is
derived from the fixed asset register and provides a greater level of asset and depreciation detail than is available
by F8 code.
From the LoP list, information is obtained on the DTTK (Kilostream) classes of work (CoW). This lists the
depreciation charges by asset policy code for each different type of asset/equipment type in this class of work. By
reviewing the asset policy codes, a distinction between the different equipment types can be identified and the
equipment types split into two groups relating to the PGs listed above. An apportionment base can then be
created by dividing the depreciation charge allocated to each PG category by the total depreciation for the CoW.
Data Source/s
LoP List for Period 12.
PDTDTTM
ALL
Megastream
Megastream is a 2Mbit/s (2,048Kbit/s) high speed, permanently connected, point to point private circuit.
Megastream is a Product offered at different bandwidths (i.e. 1Mbit/s to 622Mbit/s). Apportionment is made to
various Megastream bandwidths, Kilostream and ISDN30 Plant Groups (PGs) due to the fact that these Products
can be carried over higher bandwidth bearers (e.g. 2Mbit/s, 34Mbit/s, etc.).
Methodology
This base apportions the gross book value of Megastream equipment assets and the associated depreciation and
accumulated depreciation charges to PGs. These Megastream assets are the electronic elements of the bearer.
The allocation is based on the numbers of bearers on the different bearer sizes weighted by the cost of each type
of bearer.
Volumes for the different bearer sizes come from the Core Transmission Costing System (CTCS) and the London
Local Fibre Network (LLFN). This is multiplied by the cost for the equipment. Different bearer sizes are
represented by different Plant Groups. We identify the numbers of circuits on these bearers that are used by
Kilostream (expressed in 2Mbit/s). We separate the cost of Kilostream and point it to its own Plant Group..
For bearers of 2Mbit/s size there are two Plant Groups, one for 2Mbit/s supplied over Copper and one for Fibre so
a split is derived from the fixed asset register using the depreciation from asset policy codes that relate to 2Mbit/s
fibre and 2Mbit/s copper.
Data Source/s
London Local Fibre Network (LLFN).
Core Transmission Costing System (CTCS).
LoP List at Period 12.
PDTDTTW
T
Ethernet Electronics
Description
This base apportions the electronics associated with Ethernet which are contained within class of work DTTW.
Methodology
Allocates 100% to PG447A.
83
PDTDUCT
T
Duct
Description
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG149.
This asset covers all duct (core access and shared) within the BT network.
Methodology
Allocates 100% to AG149.
PDTDUCT
B
Duct
Description
This base creates an apportionment to the Intermediate Activity Groups (AGs) AG148 (Backhaul Duct) and AG135
(Access Duct).
This asset covers all Ducts (core access and shared) within the BT network.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
spend).
Data Source/s
1996 Absolute Duct Study (ADS).
Internal Project Ledger (IPL).
PDTDUCT
BB,
BC,
BE,
BL,
BLP,
BV,
BY,
MJ
MX
TT
Duct
Description
This base creates an apportionment to the Intermediate Activity Groups (AGs) AG148 (Backhaul Duct) and AG135
(Access Duct).
This asset covers all Ducts (core access and shared) within the BT network.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
spend).
Data Source/s
1996 Absolute Duct Study (ADS).
Internal Project Ledger (IPL).
PDTETHE
R
ALL
Ethernet Switches
Description
This base apportions the costs and balance sheet charges for Ethernet switches to Plant Groups (PGs).
The Ethernet Switch is part of the 21c network and contains functionality for the access and onward switching of
Ethernet customers as well as Broadband including NGA (Next Generation Access).The recipients are:
•
PG901A Ethernet Switches
Methodology
The Ethernet switch contains functionality for the transport of connectivity, voice and broadband services.
84
The latest 21CN business case model is analysed into the categories, for which we have assigned PGs, for the
assets the Core node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to PG901A.
PDTINCD
T
Intelligent Network Architecture Equipment
Description
This base apportions the capital costs of the Intelligent Network (IN) platform. The IN platform consists of several
sub-platforms.
Methodology
The assets for each in sub-platform are registered against their own Asset Policy Code on the Fixed Assets
Register; this allows identification of depreciation costs by function and allows the calculation of the relevant split
to corresponding Plant Groups (PGs) This forms the basis of the apportionment base.
The costs for each sub platform are pointed at the relevant Plant Group (PG) as detailed in the table below
Asset Policy Code
INIC Intelligent Contact Manager (ICM)
INAH/INAS Alfredo Hardware and Software
INMH/INMS Montrose Hardware and Software
INVS Voice Mail System
INCG Indirect Costs, INCM Misc, INCS Network
Software in Access, ININ IN
Attributed to
PG260A Intelligent Contact Manager PRO
P007 Retail - ICT and Managed Networks
P007 Retail - ICT and Managed Networks
P006 Retail - Calls Lines & Circuits
Spread in proportion to all the above
Data Source/s
Fixed Asset Register (LoP List) Intelligent Network data for the latest available period. Management believe this
period to be reflective of the full year.
PDTINOD
E
T, TT
i-Node
Description
This base apportions the cost and balance sheet for I-Node equipment to Plant Groups (PGs).
I-Node is where the service execution functionality is located – in essence the intelligence that controls services.
In the 21CN context, this includes soft switches, network intelligence and bandwidth management capabilities.
Methodology
The i-Node contains functionality for both the setting up of Voice Calls and the provision of Calling Features e.g.
Ring Back When Free. The split of cost used is the current ratio of costs for these activities in the System X and
AXE10 Digital Local Exchange PGs as these assets have similar functionality.
The recipients are:
•
PG875A I-Node Features
•
PG876A I-Node Voice Call Set-Up
Data Source/s
Billing records.
PDTIPNCO
ALL
IP (Internet Protocol) Networks
Description
This base apportions costs of equipment supporting IP networks. Costs booked to classes of work (CoW) IPNC
(Internet Protocol Network Capital) include provision, extension, rearrangement and recovery of IP networks by
the Broadband and Data division in BT Wholesale.
IPNC is the set of communication tools which enables computers to 'talk' to each other over the Internet. Each
computer (known as a host) has at least one address that uniquely identifies it from all other computers on the
Internet. Each piece or 'packet' of information sent over the Internet contains both the sender's Internet address
and the receiver's address. This allows the packets to reach their intended destination, or, if necessary, to be
returned to the sender.
Methodology
According to the type or function of the asset (i.e. equipment), each IP piece of equipment is assigned to one of
85
the Plant Group (PG) destinations related to IP.
IP data and Broadband capital spend is downloaded from the Internal Project Ledger (IPL) for the previous three
years. The sub programme identifies capital spend associated with each PG. IPNC has a life of three years, the
capital spend for the last three years (from Internal Project Ledger) is then used to derive the deprecation.
Data Source/s
The Internal Project Ledger (IPL) lists depreciation costs by CoW, and produces a list of asset registrations by year,
which can be found in Central Information Data warehouse (CID) Financial Reporting system. Period 8 data is
used as activity after this period does not materially affect the base.
PDTKDEN
B
Kilostream Maintenance
Description
This base apportions the costs of maintaining Kilostream equipment assets. Kilostream is the brand name for BT’s
portfolio of low speed digital private circuits. The circuits operate at bandwidths of 2.4kbit/s up to 64kbit/s and
are provided using BT’s Digital Private Circuit Network (DPCN).
Methodology
This base apportions the costs of maintaining Kilostream equipment assets to Plant Groups (PGs) and follows the
same apportionment percentages as determined in the PDTDTTK base. PDTDTTK apportions using costs booked
against various asset policy codes on the Life of Plant List.
Data Source/s
LoP List for Period 12
PDTLFCM
B
Local Fibre Network Maintenance
This base apportions the costs of maintaining the Access Fibre network equipment assets.
Methodology
Apportions to the Spine Maintenance and NGA (Next Generation Access) Spine and NGA Distribution Plant Groups
based on their proportion of the Total GRC for Access Fibre. This information comes from the allocation model for
Fibre CoWs.:
•
PG111M
•
PG951M
•
PG950M
Data Source/s
GRC of Access Fibre.
PDTLFDC
All
Local Fibre Distribution Cable
This base apportions the costs and balance sheet associated with local fibre distribution cable.
Methodology
The local fibre distribution cable balance sheet and profit and loss values are apportioned to the following two
PGs based on their relative GRC:
•
PG959C
•
PG951C
Data Source/s
GRC of Access Fibre
PDTLFSC
All
Local Fibre Spine Cable
This base apportions costs and balance sheets associated with local fibre spine cable.
Methodology
The local fibre spine cable balance sheet and profit and loss values are apportioned to the following two PGs
based on their relative GRC:
•
PG959C
•
PG951C
86
Data Source/s
GRC of Access Fibre
PDTLMC
ALL
Exchange Side Cables
Description
This base apportions costs and balance sheet associated with exchange side cables.
Exchange side cable (e-side cable) is the cable that links the exchange to the primary cross connection point.
This is illustrated in the diagram below:
Diagram: Exchange Side Cables Process
Customer
1 2 3
4 5 6
7 8 9
8 #
Dsid
e
ca
ble
*
E-side cable
Local
E-side cable - LLU
e
sid
D-
Exchange
Primary Cross
Connection
Point (PCP)
e
bl
ca
LU
-L
Customer
1 2 3
4 5 6
7 8 9
*
8 #
PDTLMC_Diagram1
The E-side cable balance sheet and profit and loss values are apportioned to the following three Plant Groups
(PGs):
•
PG117C E-side Copper Capital.
•
PG130A Local Loop Unbundling (LLU) Tie Cables.
•
PG192A NGA E-side Copper Capital.
•
PG151B TAMS
N.B. LLU Tie cables are the cables from the Main Distribution Frame (MDF) to the Communications Provider’s
(CP’s) own equipment, normally within the exchange.
Methodology
The apportionment between these PGs is based on the relative sizes of the year to date depreciation at a period
representative of the full year. These figures are taken from the Life of Plant (LoP) listing which details the
historical cost. The proportion for LLU is further subdivided into costs relevant to TAMS and LLU tie Cables based
on a survey on registrations.
Data Source/s
Life of Plant (LoP) List.
Survey of asset registrations
PDTLMD
ALL
Local Main (Exchange Side) Duct
This base apportions costs and balance sheet associated with Local fibre distribution cable.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
87
spend).
A proportion is also allocated to NGA (Next Generation Access) based on depreciation estimated from detailed
capital expenditure on NGA projects on the Internal Project Ledger.
Exhausts to:
•
AG148 Backhaul Duct
•
AG135 Access Duct
•
PG192 NGA E-Side Copper Capital
Data Source/s
1996 Absolute Duct Study (ADS).
Internal Project Ledger (IPL).
PDTLMDF
ALL
Main Distribution Frames in Local Exchanges
Description
This base apportions the costs and balance sheet associated with main distribution frames in local exchanges.
Main distribution frames are the interface between the exchange side cables and the exchange switching
equipment. Exchange side cable is the cable that links the exchange to the primary cross connection point.
This is illustrated in the diagram below:
Customer
1 2
6
9
8
#
Main
Distribution
Frame
Dsid
e
ca
bl
e
Local Exchange
3
4 5
7 8
*
Primary Cross
Connection
Point(PCP)
E-side cable - LLU
E-side cable
d
si
De
e
bl
ca
LU
-L
PDTLMDF_Diagram1
Customer
1 2
3
4 5
7 8
6
9
8
#
*
Methodology
The main distribution frame balance sheet and profit and loss values are apportioned to the following two PGs:
•
PG217E
Local Exchange General Frames Capital
•
PG130A
Local Loop Unbundling Tie Cables
The reason why the main distribution frame values are apportioned to these PGs is that they support the activities
of the E-side copper cable. Therefore the apportionment between these two PGs can be based on the relative
sizes of the year to date depreciation of MDF assets at Period 11 for both E-side copper cable and local loop
unbundling frame usage. These figures are taken from the Life of Plant (LoP) listing which details the historical
cost depreciation for the year for different asset classes. The source of the LoP list data is the fixed asset register.
Data Source/s
LoP List at Period 12.
PDTLXTM
ALL
Local Exchange Testing
Description
This base apportions the costs of the Local Exchange Test and Measure (LXTM) classes of work (CoW). This covers
common or centralised testing, monitoring or access equipment for Local Exchanges that is not directly
associated with a particular exchange system type. The apportionment is based on an analysis of depreciation
costs.
Methodology
The depreciation charges from the Life of Plant (LoP) List for the CoW are analysed by asset policy code and
broken down into:
Exchange equipment used to test local exchanges.
88
•
This is Test Access Matrix (TAMS) equipment for Openreach and is apportioned to the TAMS Openreach Plant
Group (PG) - PG151B. BT TSO TAMS get apportioned to PG151N.
Other costs.
•
This is line test equipment and is apportioned to the Line Test Equipment PG240A.
Data Source/s
Latest available Life of Plant (LOP) list.
PDTLYX
ALL
AXE10 Exchanges
Description
This base apportions the costs and balance sheet charges for AXE10 local exchange equipment to Plant Groups
(PGs).
AXE10 equipment is equipment in BT’s network manufactured by Ericsson.
Methodology
This base apportions the F8 codes pointing to it in exactly the same way as base reference PDTSYSXD except that
the weighting between concentrators and processors is based on modern equivalent asset depreciation values
rather than historical cost depreciation values.
Therefore this base reference is calculated as follows:
There are two fundamental building blocks of AXE10 exchanges:
•
Concentrators.
•
Processors.
These building blocks are significantly different, and are each made up of a large number of specific equipment
elements. Each of these elements will relate to a specific PG. Therefore to create an apportionment base, we
need to ‘dimension’ each of these specific equipment elements.
Concentrators
Step 1 – Determine the modern equivalent asset value of all the equipment elements of concentrators in the
network.
Obtain from the Exchange Planning and Review System (EXPRES) system data that details the line types and the
total number of lines fitted to each concentrator in the BT network. This data is entered into an engineering
model which dimensions the number of equipment elements required to make up that number of lines. The
quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the total
cost for each equipment element. The appropriate element cost that the engineering model utilises is the modern
equivalent asset amounts for each type of equipment element. These are obtained from the Price Element
Scheduled (PES) as part of the LEMP (Local Exchange Modernisation Program). The figures that are used from
this are the March 1995 figures. These figures are frozen as this equipment is no longer available for purchase.
Step 2 – Determine an estimate of the modern equivalent asset depreciation value for the equipment building
blocks.
The current year’s asset life determinations are applied to the total modern equivalent asset values of the
equipment identified in step 1 to create a modern equivalent asset depreciation charge for the year. Asset lives
are calculated and determined by Wholesale Regulatory Finance each year. This is completed via a review process
undertaken by experts in this field. Where an individual building block does not have an individual asset life set in
this process, the equated life of the Class of Work (CoW) is applied.
Step 3 - Allocate the depreciation charge into call set-up, access and call duration categories.
Using detailed information obtained from the switch manufacturer, which analyses how the different equipment
types within the switch are used to provide service, the total modern equivalent asset depreciation value for each
type of equipment element is allocated to the following categories:
•
Call set-up.
•
Call duration.
•
Access.
Total modern equivalent asset depreciation charges under each of the three categories can then be calculated.
This step illustrates the reason for using modern equivalent asset values to create the apportionment base for the
historical cost AXE10 values. The manufacturer’s matrix is crucial in providing the link between the F8 codes and
the PGs that they are apportioned to. However the equipment elements in the manufacturer’s matrix cannot be
reconciled to asset policy codes that are based on historical cost values. However the PES equipment elements
89
compiled as part of the LEMP do reconcile to the manufacturers matrix and these items are listed at modern asset
equivalent values.
Step 4 – Apportion the Access category into more detailed access categories (which will be linked to PGs at a later
stage).
The total modern equivalent asset depreciation value allocated to the category ‘access’ must be further split into
the following categories:
•
Public Switched Telephone Network (PSTN).
•
Integrated Services Digital Network (ISDN2).
•
ISDN30.
•
Payphones.
This apportionment is calculated based on the relative proportion of cost already identified in the engineering
model.
Step 5 – Create concentrator weighted base.
Using the modern equivalent asset depreciation amounts calculated for the above-listed categories, create a
weighted base for concentrator kit.
The above steps are represented in the flowchart attached below:
Diagram: Overview of Historical Cost Balance Sheet – Concentrators.
Contractors
EXPRESS
SWITCH
Manufacturers
MATRIX
PES
EXPRESS
(Lines)
ASSET LIVES
MODEL
CURRENT COST
DEPRECIATION
Concentrator Setup Kit
Concentrator Kit Type 1 £ 1500
Concentrator Kit Type 2
Concentrator Duration Kit
Concentrator Kit Type 4 £ 1000
Concentrator Kit Type 5 £ 5000
TOTAL
£800
£5600
£1700
PSTN Access Kit
£1700
PSTN Access Kit
ISDN2 Access Kit
£2300
ISDN2 Access Kit
£2300
ISDN30 Access Kit
£1300
ISDN30 Access Kit
£1300
£300
TOTAL
Concentrator Kit Type 6
£2000
Concentrator Duration Kit
£800
£200
Concentrator Access Kit
Concentrator Kit Type 3
Concentrator Setup Kit
£2000
£8,400
Payphones Access Kit £300
£400
TOTAL
£5600
Payphones Access Kit
TOTAL
£300
£8,400
£8, 400
Concentrator Setup Kit
24%
Concentrator Duration Kit 10%
PDTLYX_Diagram1
Conc PSTN Access Kit
20%
Conc ISDN2 Access Kit
27%
Conc ISDN30 Access Kit
15%
Conc Payphones Access Kit 4%
TOTAL
100%
*percentages are for illustrative purposes only
Processors
Step 1 – Determine the modern equivalent asset value of all the equipment elements of processors in the
network.
Obtain from the EXPRES system data on the number of different lines connected to each processor in the BT
network. Data is also obtained from the Network Recording System (NRS) on the size of all the processors in the
BT Network. This data is then entered into an engineering model which dimensions the number of equipment
elements required to make up that total processing capacity. The quantities of each equipment element are then
multiplied by an appropriate element cost to arrive at the total cost for each equipment element. The appropriate
element cost that the engineering model utilises is the modern equivalent asset values for each type of
equipment. This is obtained from the Price Element Scheduled (PES) items as part of the Local Exchange
Modernisation Program (LEMP). The figures that are used from this are the March 1995 figures. These figures are
frozen as this equipment is no longer available for purchase.
90
Modern equivalent asset values are used for the same reason as stated above for concentrators.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken by
experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the CoW is applied.
Total modern equivalent asset depreciation values under each of the two categories can then be calculated.
Step 3 – Create processor weighted base.
Using the modern equivalent asset depreciation amounts calculated for the above-listed categories, create a
weighted base for processor kit.
The above steps are represented in the flowchart attached below:
Diagram: Overview of Historical Balance Sheet – Processors.
EXPRES
NRS
P
R
O
C
E
S
S
O
R
S
SWITCH
MANUFACTURER
MATRIX
PES
ASSET LIVES
MODEL
Current Cost
Depreciation
Processor Kit Type 1
£900
Processor Kit Type 2
£300
Processor Kit Type 3
£500
Processor Kit Type 4
£300
Processor Kit Type 5
£1200
Total
£3200
Digital Line Termination
£x
Digital Line Termination
%x
Switch Block
£y
Switch Block
%y
Processor end signalling
£z
Switch Block
%z
Total
£x,y,z
Total
100%
PDTLYX_Diagram2
* Percentages are for illustrative purposes only.
Apportionment to Plant Groups (PGs)
We now have two sets of apportionment data with both the concentrator and the processor apportionments
adding up to 100%. The next step in the process is to weight the concentrator and processor apportionments.
This base uses modern equivalent asset depreciation values to create the weighting from within the model.
Step 1 – Total the modern equivalent asset depreciation charges for AXE10 equipment
From the calculations above, the total of the modern equivalent asset depreciation charges for processor
equipment is calculated. The total of the modern equivalent asset depreciation values for concentrator
equipment is also calculated.
Step 2 – Create a weighted base for apportionment percentages
Using the relative proportions between processors and concentrators derived from the previous step, the
apportionment’s calculated for processors and concentrators can be weighted.
The above steps can be represented in the flowchart attached below:
Diagram: Historical Balance Sheet – Apportionment to PGs
91
MODEL
B
a
s
e
R
e
f
e
r
e
n
c
e
Digital Line Termination
20%
Digital Line Termination 5.6%
Switch Block
Processor & Signalling
40%
40%
Switch Block
11.0%
Processor & Signalling 11.0%
100%
Total
%’s
Processor Dep’n
£3, 200
Concentrator Dep’n £8, 400
Processor Dep’n
28%
Concentrator Dep’n72%
Total
28%
Concentrator Set up Kit 24%
Concentrator Duration
10%
Kit
Concentrator Set up Kit 17%
Concentrator Duration
7%
Kit
Concentrator PSTN
Access Kit
Concentrator ISDN2
Access Kit
Concentrator ISDN30
Access Kit
Concentrator
Payphones Access Kit
Concentrator PSTN
Access Kit
Concentrator ISDN2
Access Kit
Concentrator ISDN30
Access Kit
Concentrator
Payphones Access Kit
Total
20%
27%
15%
4%
100%
Total
14%
19%
11%
3%
72%
PDTLYX_Diagram3
* Percentages are for illustrative purposes only.
Step 3 – Apportion amounts to PGs
The apportionments are applied to the following Plant Groups (PGs) based on an analysis of the most appropriate
fit for the building blocks. These are then applied to the historical cost Balance Sheet (i.e. gross book value (GBV)
and accumulated depreciation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for AXE10 local
exchange equipment. The PGs that the apportionment’s point to are as follows:
Category
Plant Group
AXE10 Local Exchange Processor and Signalling
PG280C
AXE10 Local Exchange Digital Line Termination
PG281C
AXE10 Local Exchange Switch Block
PG282A
AXE10 Concentrator Set-Up
PG283A
AXE10 Concentrator Duration
PG284A
PSTN Linecards
PG127A
ISDN2 Linecards
PG128A
ISDN30 Capital /Maintenance
PG124A
This can be represented in the flowchart below:
Diagram: Historical Balance Sheet and Profit and Loss (P&L) Apportionment to PGs
92
A
p
p
o
r
t
i
o
n
m
e
n
T
LE Proc & Sign
PG280A
LE Processor and Signalling 25%
AXE10 Balance
Sheet and Profit
and Loss F8
Codes (Historical
Costs)
Processor DLT
3%
Process Switch Block
3%
Concentrator Set up Kit
17%
Concentrator Duration
Kit
7%
Conc Kit PSTN Access
14%
Conc. ISDN2 Access
Kit
19%
Conc. ISDN30 Access
Kit
11%
Conc. Payphones
Access Kit
LE DLT PG281C
LE Switch Block
PG282A PG287C
Conc SetupPG283A
Conc Duration
PG284a PG289A
PG128A
PG128A
3%
PG124A
Total
100%
PG120A
PDTLYX_Diagram4
Data Source/s
EXPRES and NRS Systems. Management uses a period that is reflective of the full year.
PDTMDEN
ALL
Private Circuits Megastream Maintenance
Description
This base apportions the costs of maintaining Megastream equipment assets. Megastream is a 2Mbit/s
(2,048kbit/s) high speed, permanently connected, point to point private circuit.
Methodology
This base apportions the costs of maintaining Megastream equipment assets to Plant Groups (PGs) and follows
the same apportionment percentages as determined in the PDTDTTM base. PDTDTTM apportions using a
combination of Current Costs values of bearers, volumes of circuit types and depreciation.
Data Source/s
Current Cost values of bearers, volumes of circuit types and depreciation for the most recent period of the year.
London Local Fibre Network (LLFN), Core Transmission Costing System (CTCS) and Life of Plant (LoP) List at
Period 11. Management believe this period to be reflective of the full year.
PDTMDF
ALL
Main Distribution Frames (Current)
Description
This base apportions current account costs for main distribution frames to:
PG217F - Local Exchange Frames (Current)
PG981R - Openreach Time Related Charges
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Time Related Charges (TRCs) and Special
Fault Investigation (SFI). The cost for these activities is derived by multiplying the manhour rate x KMH for the
above activities. The total cost for the CoW is obtained from CID and the proportion of cost allocated to SFI and
TRC is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to Local Exchange Frames.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
Openreach Management Accounts.
93
PDTMDSL
BL,
BV,
MJ
Main Distribution Frames (Current)
Description
This base apportions current account costs for maintenance of digital subscriber line equipment to:
PG152B - Digital Subscriber Line Openreach
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Special Fault Investigation (SFI). The cost
for this activity is derived by multiplying the manhour rate x KMH for SFI. The total cost for the CoW is obtained
from CID and the proportion of cost allocated to SFI is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to Digital Subscriber Line.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
Openreach Management Accounts.
PDTMETA
L
ALL
Metro Nodes – Alcatel-Lucent
Description
This base apportions the costs and balance sheet for Metro node equipment to Plant Groups (PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Alcatel Lucent is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:
•
PG878A Metro BB LNS
•
PG879A Metro BBL3
•
PG880A (BEA) Broadband Edge Aggregator
•
PG881A (BRAS) Broadband Remote Access Server
•
PG882A (FER) Front End Router
•
PG887A Ethernet Edge Aggregator Bandwidth
•
PG888A Ethernet Edge Aggregator Port
•
PG889A Infrastructure Ethernet
•
PG890A Media Gateway
•
PG892A Sync Racks
•
PG893A (MSPE) Multi Service Provider Edge Routers
•
PG895A P-Router Large (Core)
•
PG896A P-Router Metro
•
PG898A Core Directors
Data Source/s
CAPEX forecast from BT Technology, Service & Operations (BT TSO).
94
PDTMETCI
ALL
Metro Nodes - Cisco
Description
This base apportions the costs and balance sheet for Metro node equipment to Plant Groups (PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Cisco is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:
•
PG878A Metro BB LNS
•
PG879A Metro BBL3
•
PG880A (BEA) Broadband Edge Aggregator
•
PG881A (BRAS) Broadband Remote Access Server
•
PG882A (FER) Front End Router
•
PG887A Ethernet Edge Aggregator Bandwidth
•
PG888A Ethernet Edge Aggregator Port
•
PG889A Infrastructure Ethernet
•
PG890A Media Gateway
•
PG892A Sync Racks
•
PG893A (MSPE) Multi Service Provider Edge Routers
•
PG895A P-Router Large (Core)
•
PG896A P-Router Metro
•
PG898A Core Directors
Data Source/s
CAPEX forecast from BT Technology, Service & Operations (BT TSO).
PDTMETSI
T
Metro Nodes -Siemens
Description
This base apportions cost and balance sheet for Metro node equipment to Plant Groups (PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, I-Nodes
and transmissions) strategic domains. Siemens is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:
•
PG878A Metro BB LNS
•
PG879A Metro BBL3
•
PG880A (BEA) Broadband Edge Aggregator
95
•
PG881A (BRAS) Broadband Remote Access Server
•
PG882A (FER) Front End Router
•
PG887A Ethernet Edge Aggregator Bandwidth
•
PG888A Ethernet Edge Aggregator Port
•
PG889A Infrastructure Ethernet
•
PG890A Media Gateway
•
PG892A Sync Racks
•
PG893A (MSPE) Multi Service Provider Edge Routers
•
PG895A P-Router Large (Core)
•
PG896A P-Router Metro
•
PG898A TDM Specific Connects
Data Source/s
CAPEX forecast from BT Technology, Service & Operations (TSO).
PDTMSAN
F
ALL
Fujitsu MSANs
Description
This base apportions the cost and balance sheet for Fujitsu manufactured MSANs (Multi Service Access Nodes)
equipment to Plant Groups (PGs).
Methodology
The latest 21CN business case model is analysed into categories, for which we have assigned PGs, for the assets
the MSAN contains. The business case provides estimates of capital spend on a year by year basis. The relative
quantities of capital, for each of the categories provide the apportionment.
The recipients are:
•
PG857A CMSAN Combo Cards BB element.
•
PG858A CMSAN Combo Cards Voice element.
•
PG859A CMSAN Control Access.
•
PG860A CMSAN Control Transport.
•
PG861A CMSAN ISDN30 Cards.
•
PG862A CMSAN Low Band SDSL cards =<2Mbit/s.
•
PG864A CMSAN-FMSAN Link.
•
PG869A FMSAN Control Transport.
•
PG872A FMSAN TDM Cards.
•
PG874A FMSAN to WDM Link.
Data Source/s
CAPEX forecast from BT Technology, Service & Operations (BT TSO).
PDTMSAN
H
ALL
Huawei MSANs
Description
This base apportions the cost and balance sheet for Huawei manufactured MSANs (Multi Service Access Nodes)
equipment to Plant Groups (PGs).
Methodology
The latest 21CN business case model is analysed into categories, for which we have assigned PG, for the assets the
MSAN contains. The business case provides estimates of capital spend on a year by year basis. The relative
quantities of capital, for each of the categories provide the apportionment.
The recipients are:
•
PG857A CMSAN Combo Cards BB element.
96
•
PG858A CMSAN Combo Cards Voice element.
•
PG859A CMSAN Control Access.
•
PG860A CMSAN Control Transport.
•
PG861A CMSAN ISDN30 Cards.
•
PG862A CMSAN Low Band SDSL Cards =<2Mbit/s.
•
PG864A CMSAN-FMSAN Link.
•
PG869A FMSAN Control Transport.
•
PG872A FMSAN TDM Cards.
•
PG874A FMSAN to WDM Link.
Data Source/s
CAPEX forecast from BT Technology, Service & Operations (BT TSO).
PDTMTLU
R
BV
Main Distribution Frames (Current)
MJ
Description
This base apportions current account costs for main distribution frames to:
PG122M - Residential PSTN Maintenance
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Special Fault Investigation (SFI). The cost
for this activity is derived by multiplying the manhour rate x KMH for SFI. The total cost for the CoW is obtained
from CID and the proportion of cost allocated to SFI is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to Residential PSTN Maintenance.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
Openreach Management Accounts.
PDTMUC
B, BV,
TT
Construction of Main Underground Cable
Description
This base allocates the asset values and annual depreciation charges associated with the construction of main
underground cable in the core and 21c networks to a number of fibre Plant Groups.
Methodology
PACS contains circuit path information for all SDH circuits. This data is extracted and analysed in an Access
database. From this we extract the total fibre km attributable to either 20c or 21c. For 20c fibre the costs are
allocated to either PG170B for OUC B & MJ or PG350N for all other OUCs.
The remaining percentage attributable to 21c is then broken down by the tier of the bearer and this drives the
allocation to 21c PG.
Data Source/s
PACS
97
PDTMXD
ALL
Main Exchange Capital
Description
This base apportions the depreciation and capital costs of Main/Trunk Switches. The costs are recorded in two
Classes of Work (CoW).
•
MDX for System X switches.
•
NGS for Next Generation Switches.
The base also apportions the maintenance costs for Main/Trunk switches. These costs are recorded in two classes
of work.
•
DMS for System X Switches
•
NGSM for Next Generation Switches
Methodology
This methodology produces a combined base used for both CoWs. The System X platform asset are part of the
legacy network and are no longer manufactured. It is planned they will remain until 2014. The newer Next
Generation Switches (NGS) switches are used as a Modern Equivalent Asset as part of the process. The remaining
value on NGS is very much higher than System X.
Firstly, a fixed asset download is taken of both the MDX and NGS CoW. The proportion of depreciation relevant to
Intelligent Access and Messaging is attributed to its own Plant Group (PG) PG254A by identifying assets by policy
code or asset descriptions. Different results are obtained from the MDX and NGS CoW. The overall proportion of
depreciation is weighted by the relevant depreciation in the NGS and MDX CoWs from the previous period (either
half year or full year). Once this has been obtained then apportionment to three other relevant PGs can be
derived.
PG249C Main Exchange DLT (Digital Line Termination)
PG254A Main Exchange (I, A and M) – already described above
PG255B Main Exchange Switch Block
PG257C Main Exchange Processor
Costs subsequently exhaust to four components:
CO220 Main Exchange Call Set-Up.
CO221 Main Exchange Call Duration.
CO470 Interconnect Rentals
CO212 Local Exchange processor set-up.
CO260 Cambridge Voice Intelligent Peripherals.
In order to proportion costs to the three remaining PGs a Current Cost Accounting (CCA) approach is used to
dimension the equipment required using a Modern Equivalent Asset (MEA) of the NGS. The model dimensions the
size of the units and costs them using information contained in NGS contract (no 658109) between BT and
Ericsson.
The engineering model uses inputs of the NGS capacities from the Switch Deployment Plan sourced from the
Planning team. The model dimensions each exchange in the most efficient way. The total cost is obtained for all
98
the exchange units and the model costs are assigned as to whether they relate to the three overall building
blocks:
•
Digital Line Termination (DLT).
•
Processor.
•
Switch Block.
The relative proportions of these are used for determining the apportionment. The model also contains how much
of each building block within the exchange relates to call set up and call duration for further apportionment from
PG to component.
Data Source/s
PDTNTE2
1
ALL
•
EXPRES (Exchange Planning and Review System) – Supplies the number of System X and Next Generation
Switches (NGS) units in service.
•
Network Recording System (NRS) – Supplies the fitted and working capacities of System X and Next
Generation Switches (NGS) units.
•
Switch Deployment Plan – Also contains evidence on the fitted capacity of working NGS units together with
dates of migration from System X to NGS.
•
Fixed Asset Register.
21C Network Terminating Equipment
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated depreciation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for 21c Network Terminating Equipment.
Methodology
This allocates 100% to PG867A 21C Ethernet NTE.
This base apportions the cost and balance sheet for 21c Network Terminating Equipment.
This allocates 100% to PG867A 21C Ethernet NTE.
PDTORSFI
BL, BV
Dropwire repair Overhead Cable
Description
This base apportions repair costs for drop wires to:
PG122M - Residential PSTN Maintenance,
PG989A - Special Fault Investigation
PG981R -Openreach Time Related Charges
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Time Related Charges (TRCs) and Special
Fault Investigation (SFI). The cost for these activities is derived by multiplying the manhour rate x KMH for the
above activities. The total cost for the CoW is obtained from CID and the proportion of cost allocated to SFI and
TRC is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to Residential PSTN Maintenance.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
PDTRAR
B
Routing and Records Base - Openreach
Description
The costs within this base are for the routing and records activity. This activity is the physical verification of
routings within the network, and records the time associated with the initial recording of routing details on BT
systems.
There are also Capital Planning Pay and Non Pay costs which are not directly related to the routing and records
activity.
99
Methodology
Bookings to the Class of Work (CoW) RAR (Routing and Records) consist of two elements.
The first element is the time booked that is directly related to the Routing and Routing activity as defined in the
CoW description.
The second element, Capital Planning, is the time spent on activities that are outside of the CoW description and
allocated to Capital Programmes. This consists of bookings made by non-field units, maintenance of records and
planning indirects.
A survey/estimate is provided by the field operations manager for Routing and Records is used to split the costs
into the two elements. The proportion of cost proper to Routing and Records will exhaust to PG140A.
The portion that relates to capital programme will be allocated using the PDTDUCT base.
This based is chosen as it exhausts costs to Fibre capital plant groups which makes use of the planning system
that Routing & Records activity uses.
Data Source/s
Survey/Estimate provided by Operations manager responsible for Routing & Records.
PDTSBSB
B
BV
Broadband Boost
Description
This base apportions repair costs for Broadband Boost to PG118M - D Side Copper Current, PG989A - Special
Fault Investigation and PG580B - Broadband Boost.
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on copper repair, SFI and Broadband Boost.
Data Source/s
Workmanager data.
PDTSCNM
TN
Network Platform Support Contract Costs
Description
This base apportions the Profit and Loss (Other Payments) costs of technology vendor provided support usually
under fixed term support contracts.
The full detailed list of platforms supported is obtained from the Vendor Management team within Technology
Service & Operations and includes the following high level Platforms:
•
Transmission
•
Switch
•
Broadband
•
Private Circuits
•
Intelligent Networks etc.
Methodology
Step 1 – Platform level breakdown
The first step of the methodology breaks down the total Support Contract Costs into technologies or platform
specific categories. This data originates from the Support Contract Spend Managers.
Step 2 – Plant Group (PG) level breakdown
The Platform costs are then apportioned to the relevant PG’s (weighted by step 1). The method of allocating
across each Platform specific PG’s is driven by the relevant Platform base. The following data sources are used to
provide the step 2 allocations:
CoW
CoW Description
Data Source
ASN
Maintenance Intelligent Network Platform
Internal GRF sources
ATM
Asynchronous Transfer Mode
Internal GRF sources
100
DMC
Construction Operator Service System (OCHC)
Internal GRF sources
DX
Mtce:local Digital Exchange, System X
Internal GRF sources
DY
Mtce: Local Digital Exchange, System Y (AXE 10)
Internal GRF sources
ETHER
NETWORK TRANSFORMATION- 21CN
ETHERNET
Internal GRF sources
INM
Maintenance Intelligent Network Platform
Internal GRF sources
IVS
Mtce, Synchronous Digital Transmission
Equipment
Internal GRF sources
IVX
Mtce, Trunk Transmission Digital Multiplex
Equipment
Internal GRF sources
KDEN
Mtce: Kilostream Service
Internal GRF sources
MDEN
Mtce: Megastream Service
Internal GRF sources
MSAN
21CN MSAN Equipment
Internal GRF sources
MDX
Construction, Main Network Switching Digital
Internal GRF sources
IP
IP Network Capital
Internal GRF sources
TSO LOP list
Technology, Service & Operation Life of Plant
list
Internal GRF sources
OR LOP list
Openreach Life of Plant list
Internal GRF sources
Step 3 – Amalgamation
The PG level bases calculated in step2 are amalgamated back into a SCNM level base by utilising the outputs from
steps 1 and 2.
Data Source/s
Full year Platform level Contract Support costs – Provided by BT TSO
Platform specific bases
BT TSO & OR Life of Plant list asynchronous
PDTSDH
ALL
SDH (Synchronous Digital Hierarchy) Electronic Assets
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for classes of work (CoW) SDH and also the maintenance costs on
CoW IVS (Maintenance, Synchronous Digital Transmission Equipment).
SDH represents newer electronic assets in the Transmission network. They complement the transmission
equipment capacity provided by the Plesiochronous Digital Hierarchy (PDH) assets – see PDTCRD and PDTCRF.
IVS capture the corresponding maintenance costs incurred on SDH equipment.
Allocation is to Plant Group (PG), which represent bearers in the core network.
SDH CoW is subdivided into a number of asset policy codes, representing the different asset types within SDH. The
101
driver and destination for these policy codes does vary. SDH costs are mapped to bearer links, which can either be
STM1, STM4, STM16 or STM64, represented by a number of PGs.
Asset types
Asset types within SDH can be classified into a number of key categories:
•
Add Drop Muxes (Add Drop Muxes (ADMs) - Exchange and customer sited).
•
Cross Connects - (Routing equipment - Two main types-4/1 and 4/4).
•
Line systems.
•
International Backhaul equipment.
•
Other (Software, computer equipment, etc.).
Methodology
CTCS (Core Transmission Circuit costing System) generates a file listing all SDH equipment and the number of
factored hits by bearer type (PG). The aim is to allocate the cost of equipment to a number of bearer types based
on usage and utilisation. Hits represent the number of times a bearer interfaces with a piece of equipment. A
factor is applied in order to ensure utilisation is taken into account, for example an STM 4 (565Mbit/s) bearer
would utilise an ADM, four times as much as a STM 1(155Mbit/s) bearer.
The CTCS file details all SDH assets by bandwidth, e.g. ADMs are broken down by type - SMA1, SMA4 and SMA
16. BT’s initial calculations are at an asset policy level. Asset policy codes group assets into broad categories which
we can map to the asset types held in CTCS.
The value (Count of equipment * Price) of each equipment type, within a policy code, is used to weight the
factored hits. The hits are then grouped together, at an overall asset policy level. These hits are then weighted by
Period 6 depreciation from the Period 6 Life of Plant (LoP) list. This is derived from the fixed asset register.
Indirect costs are treated as overheads and are allocated to PGs in proportion to the value of the equipment
already apportioned.
Data Source/s
Period 6 circuit data is used in CTCS to allocate year end costs, as this reflects an average position of network
utilisation over the year.
Period 6 LoP list.
SDH prices-Procurement/SDH cost model.
For further explanation refer to the diagram below.
Diagram: SDH Electronic Assets PDTSDH Process
PDTSIGNI
T, TT
Signalling Equipment Capital Costs
Description
This base apportions the capital costs of Signalling equipment registered in the SIGNI classes of work (CoW) to
Plant Groups (PGs).
SIGNI equipment is associated with PSTN (Public Switched Telephony Network] Interconnect (Other Licensed
Operator) circuits and PSTN to Intelligent Network (IN) circuits.
The main assets are:
102
•
STP (Signalling Transfer Point) switches and Edge Link Monitors for Interconnect Circuits.
•
SPRs (Signalling Point Relay switches) and Core Link Monitors for PSTN to IN Circuits.
Methodology
The Fixed Asset Register records assets against distinct Asset Policy Codes (APCs) which reflect asset function. This
allows easy identification of depreciation costs by function and allows the calculation of the relevant split to
corresponding PGs. A summary of data from the Fixed Asset Register for the latest available period is used for the
base.
The relationship between APCs and PGs is shown below.
•
SIGN Signalling Transfer Point switches and SIGE Edge-link monitors - Costs directly attributed to
PG228A Signalling Transfer Point switches and Edge-link monitors.
•
SIGC Core-link monitors and SIGS Signalling Point Relay switches - Costs directly attributed to PG229A
Signalling Point Relay switches and Core-link monitors.
Diagram: Signalling Equipment PDTSIGNI Apportionment Process.
Data Source/s
Fixed Asset Register (LoP List) data at the latest available period. Management believe this period to be reflective
of the full year.
PDTSYSXD
ALL
System X
Description
This base apportions cost and balance sheet for System X local exchange equipment to Plant Groups (PGs).
There are two fundamental building blocks of System X
•
Concentrators.
•
Processors.
Each of these elements will relate to a specific PG. Therefore to create an apportionment base, we need to
‘dimension’ each of these specific equipment elements.
Concentrators
Step 1 – Determine the Current Cost value of all the equipment elements of concentrators in the network.
Obtain from the EXPRES (Exchange Planning and Review System) system data that details the line types and the
total number of lines fitted to each concentrator in the BT Network. This data is entered into an engineering
model which “dimensions” the number of equipment elements required to make up that number of lines. The
quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the total
cost for each equipment element. The appropriate element cost that the engineering model utilises is the Current
Cost amounts for each type of equipment element. These are obtained from the Price Element Scheduled (PES)
items as part of the LEMP (Local Exchange Modernisation Program). The figures that are used from this are the
March 1995 figures. These figures are frozen as this equipment is no longer available for purchase.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
103
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in Step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken by
experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the Class of Work (CoW) is applied.
Step 3 - Allocate the depreciation charge into call set-up, access and call duration categories using cost drivers.
Using detailed information obtained from the switch manufacturer, which analyses how the different equipment
types within the switch are used to provide service, the total Current Cost depreciation value for each type of
equipment element is allocated to the following categories:
•
Call set-up.
•
Call duration.
•
Access.
Total Current Cost depreciation values under each of the three categories can then be calculated.
This step illustrates the reason for using Current Cost values to create the apportionment base for the historical
cost System X values. The manufacturer’s matrix is crucial in providing the link between the F8 codes and the PGs
that they are apportioned to. However the equipment elements in the manufacturer’s matrix cannot be
reconciled to asset policy codes that are based on historical cost values. However the PES equipment elements
compiled as part of the LEMP do reconcile to the manufacturers matrix and these items are listed at modern asset
equivalent values.
Step 4 – Apportion the Access category into more detailed access categories, which will be linked to PGs in later
stages.
The total Current Cost depreciation allocated to the category ‘access’ must be further split into the following
categories:
•
Public Switched Telephone Network (PSTN).
•
Integrated Services Digital Network (ISDN2).
•
ISDN30.
•
Payphones.
This apportionment is calculated based on the relative proportion of cost already identified in the engineering
model.
Step 5 – Create concentrator weighted base.
Using the Current Cost depreciation amounts calculated for the above-listed categories, create a weighted base
for concentrator kit.
The above steps are represented in the flowchart below:
104
*percentages are for illustrative purposes only
Processors
Step 1 – Determine the Current Cost value of all the equipment elements of processors in the network.
Obtain from the EXPRES system data on the number of different lines connected to each processor in the BT
network. Data is also obtained from NRS (Network Recording System) on the size of all the processors in the BT
network. This data is then entered into an engineering model which “dimensions” the number of equipment
elements required to make up that total processing capacity. The quantities of each equipment element are then
multiplied by an appropriate element cost to arrive at the total cost for each equipment element. The appropriate
element cost that the engineering model utilises is the Current Cost amounts for each type of equipment. This is
obtained from the PES items as part of the LEMP. The figures that are used from this are the March 1995 figures.
These figures are frozen as this equipment is no longer available for purchase.
Current Cost values are used for the same reason as stated above for concentrators.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken by
experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the CoW is applied.
Step 3 – Create processor weighted base.
Using the Current Cost depreciation values calculated for the above-listed categories, create a weighted base for
processor kit.
The above steps are represented in the flowchart below:
105
* percentages are for illustrative purposes only
Apportionment to PGs
We now have two sets of apportionment data with the concentrator apportionments add up to 100% and the
processor apportionments also add up to 100%. The next step in the process is to weight the concentrator and
processor apportionments This base uses modern equivalent asset depreciation values to create the weighting
from within the model.
Step 1 – Total the modern equivalent asset depreciation charges for System X equipment.
From the calculations above, the total of the modern equivalent asset depreciation charges for processor
equipment is calculated. The total of the modern equivalent asset depreciation values for concentrator
equipment is also calculated.
Step 2 – Create weighted base for apportionment percentages.
Using the relative proportions between processors and concentrators derived from the previous step, the
apportionments calculated for processors and concentrators can be weighted.
The above steps can be represented in the flowchart below:
106
*percentages are for illustrative purposes only
Step 3 – Apportion amounts to PGs.
These apportionments are applied to the following PGs based on an analysis of the most appropriate fit for the
building blocks. These are then applied to the historical cost Balance Sheet (i.e. GBV and accumulated
depreciation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for System X local exchange
equipment. The PGs that the apportionments point to are as follows:
Category
Plant Group
System X Concentrator Call set-up
PG288A
System X Concentrator Call duration
PG289A
PSTN Linecards
PG127A
ISDN2 Linecards
PG128A
ISDN30 Capital
PG124A
Payphones Linecards
PG120A
System X DLE Processor and Signalling Capital
PG285C
System X DLE Processor Capital
PG286C
System X DLE Switch Block
PG287A
PDTSYSXD_Diagram5
This is represented in the flowchart below:
107
Data Source/s
EXPRES (Exchange Planning and Review System).
LEMP (Local Exchange Modernisation Program) Contract - The figures that are used from this are the March
1995 figures. These figures are frozen as this equipment is no longer available for purchase.
PDTTCR
B, TB,
TN
Costs - Transmission Repair and Control on Trunk and Junction Transmission equipment
Description
This base apportions management pay costs of maintenance and repair works carried out on Trunk and Junction
transmission equipment. This refers to the supervision of maintenance work carried out on the link sections of
optical fibre cables which form part of the Core Network (also known as Core networks) and Private Circuits using
the Plesiochronous Digital Hierarchy (PDH) technology (see Plant Group (PG) Overview on descriptions of Core
Transmission Bearers).
These costs flow into the classes of work (CoW) TCR (Transmission Control and Repair) which relate to PGs
representing bearers in the core network.
Methodology
Costs are attributed to PDH PGs based on the number of PDH Line Systems and PDH Multiplexors supporting the
different PDH bandwidths.
Data Source/s
Period 6 circuit data is used in Core Transmission Circuit costing System.
PDTTPWC
ALL
Costs – Core Microwave Radio Transmission Equipment
Description
This base apportions Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs related to core microwave radio transmission equipment, classes of
work (CoW) TPWC. Unlike cable transmission, radio has only link related equipment to consider. Examples of this
equipment are antennas, masts and radio electronics.
Methodology
Costs are apportioned over the different bandwidth bearers based on an analysis of radio bearers in the core
transmission network which is derived from Core Transmission costing Circuits System (CTCS) database. CTCS
shows the relationship between equipment types and the bearers they support. The depreciation costs of radio
equipment can be apportioned to radio bearers based on the bearers' usage of this equipment. Usage is measured
as the number of times a certain type of bearer “hits” the equipment in the network.
A usage factor is applied to these hits to get ‘factored hits’. The usage factor is used as for bearers on fibre cable,
e.g. a 140 Mbit/s radio bearer can support 64 x 2 Mbit/s circuits, and so the usage factor is 1/64.
108
Data Source/s
Period 6 CTCS data on factored bearer hits on each radio system type. Management believes this to be reflective
of the full year.
PDTUDL
BV
Distribution Side Copper Repair
Description
This base apportions repair costs for drop wires to:
PG118M - D-Side Copper Current
PG981R - Openreach Time Related Charges
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Time Related Charges (TRCs) and Special
Fault Investigation (SFI). The cost for these activities is derived by multiplying the manhour rate x KMH for the
above activities. The total cost for the CoW is obtained from CID and the proportion of cost allocated to SFI and
TRC is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to D-Side Copper Current.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
PDTUEL
BV
Exchange Side Copper Repair
Description
This base apportions repair costs for drop wires to:
PG118M - E-Side Copper Current
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Special Fault Investigation (SFI). The cost
for this activity is derived by multiplying the manhour rate x KMH for SFI. The total cost for the CoW is obtained
from CID and the proportion of cost allocated to SFI is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to E-Side Copper Current.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
PDTURSFI
BV
Dropwire repair Underground Cable
Description
This base apportions repair costs for drop wires to:
109
PG122M - Residential PSTN Maintenance,
PG989A - Special Fault Investigation
Methodology
The allocation is based on the share of kilo man hours (KMH) spent on Special Fault Investigation (SFI). The cost
for this activity is derived by multiplying the manhour rate x KMH for SFI. The total cost for the CoW is obtained
from CID and the proportion of cost allocated to SFI is based on the implied cost from the manhour rate x KMH.
The residual proportion of the cost after subtracting the above will go to Residential PSTN Maintenance.
Data Source
Workmanager data.
CID
Openreach Manhour Rate
PDTWDM
21
ALL
Wavelength Division Multiplexor transmission equipment used in 21CN (Ciena)
Description
This base apportions cost and balance sheet for the transmission equipment of the WDMSAN chains, the METRO –
CORE and CORE – CORE transmission electronic equipment, to Plant Groups (PGs).
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Ciena is one of these suppliers.
Methodology
The WDM equipment contains functionality for the transport of connectivity, voice and broadband services over
the WDM chains and the METRO/CORE layer nodes.
The latest 21CN business case model is analysed into the categories, for which we have assigned PGs, for the
assets of the WDM electronics. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
The recipients are:
•
PG866A Core-Core Link
•
PG886A Metro-Core Link
•
PG899A WDM-Metro Link
Data Source/s
CAPEX forecast from BT Technology, Service & Operations (BT TSO).
PDTWMC
N
BL,
BV,
TSH &
TBS
Work Manager
Description
Work Manager is a task recording system used in BT Operate to record the time spent by field engineers across
many Classes of Work (CoW). It allocates work in the core network and manages the control system for work
carried out at non-specialised Network Operations Units.
Methodology
This is system driven within ASPIRE. It will use specific OUC pay to allocate the amount of Work Manager costs
booked from each specific OUC.
Work Mgr
cost book
by OUC
BL (£)
% Allocated on
BL OUC pay
BV (£)
% Allocated on
BV OUC pay
TBS (£)
% Allocated on
TBS OUC pay
TSH (£)
% Allocated on
TSH OUC pay
Data Source/s
110
AG's, PG's
& P-Codes
N/A – ASPIRE driven
PENOFF
E
Share Benefit Cost Offset
Description
This base apportions the Profit and Loss (P&L) costs (current ETG Pay etc.) associated with the Share Option
Schemes and represents the “discount” offered as part of the scheme.
Methodology
This cost is charged to Lines of Business (LoB), with the corresponding credit going to OUC E. The Pan Divisional
balance is therefore zero. The PENOFF base is designed to ensure that the Products, Plant Groups (PGs) and Level
1 Activity Groups (AGs) also total zero.
The base is created by using a download from the relevant GL code i.e. 19299000 (Share Benefit Costs) and
apportioning the credit in OUC E to match the cost in the other divisions. The result is that the credit and the cost
have a net impact of nil on regulated markets.
Example:
Product/Plant Group etc
Prod/ PG etc
Value
A
P123
10
A
PG345a
10
B
P123
20
B
PG345a
10
B
AG678
F8 Code
OUC
109152
109152
109152
109152
109152
Total
20
70
109152
E
P123
-30
109152
E
PG345a
-20
E
AG678
109152
Product
Perspective
-20
Total
-70
Total
0
PENOFF_Diagram1
Data Source/s
Download from ASPIRE on F8 code 109152.
PROPPRO
V
W
Property Provision
Description
BT Property is currently implementing a property rationalisation strategy by consolidating the office space within
the estate, and this is enabling the mothballing and subletting of buildings.
The cost associated with this rationalisation is being treated as a provision, as it is not part of business as usual
activity.
Methodology
The property rationalisation is limited to office space, and therefore a base derived from the General Purpose
Occupation cost charges to Lines of Business (LoB) provides a cost causal apportionment methodology.
Effectively the cost of the property rationalisation is being apportioned over current office space usage.
Data Source/s
Horizon
REDUND_
COR
ALL
Core
OUCs
Excep
t B's
Balance Sheet – Redundancy Creditor Accruals
Description
This base is used to apportion redundancy creditor accruals in the Balance Sheet.
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time redundancy costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. REDUND).
111
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
Use F8s to
produce
download
‘REDUND’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all redundancy and NewStart pay costs incurred by BT during the year. This data is held within the
system by AS Cost Centre.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which the redundancy creditors balance should be
apportioned.
The REDUND apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘COR’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘COR’ refers to all AS Cost Centres, which incurred costs, specifically excluding any overseas activities.
Data Source/s
The data is system generated from ASPIRE.
REDUNDPCT
B, BV,
C, K,
TH,
TT,
TU,
TX, V,
W, Y,
Y3
Balance Sheet – Redundancy Accruals
Description
This base is used to apportion redundancy accruals in the Balance Sheet relating to BT TSO, Openreach and BT
Security.
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time redundancy costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. REDUND).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
112
Use F8s to
produce
download
‘REDUND’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all redundancy and NewStart pay costs incurred by the LoBs (in this case BT TSO and Openreach)
during the year. This data is held within the system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the redundancy creditors’ balance should be
apportioned.
The REDUND apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ‘PCT’ group of Cost Centres. The remaining data is rebased to 100% and this base is applied to the
miscellaneous creditors balance.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Data Source/s
The data is system generated from ASPIRE..
RETOHD
MH,
MN,
MX
BT Retail OUC MX
Description
This base apportions costs and balance sheet booked by Organisational Unit Code (OUCs) MX, NM and MH which
is not otherwise attributed using other bases.
Methodology
Apportioned 100% to Retail Residual.
SLGETH
BL
Service Level Guarantee scheme (SLG) – Ethernet
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with Ethernet Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.
Internal Costs F8 293753.
113
External Costs F8 209280.
A percentage split between provision and repair activities will be calculated using volume data from Orbit and the
costs will then be pointed to the following Plant Groups (PGs).
PG573B - OR Service Centre - Provision Ethernet.
PG578B - OR Service Centre - Assurance Ethernet.
Data Source/s
Data is produced from our tactical production files and from service flow” The majority of these are fed from
Orbit.
SLGWLR
BV
Service Level Guarantee scheme (SLG) – WLR
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with WLR Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.
•
Internal Costs F8 293752.
•
External Costs F8 209260.
A percentage split between provision and repair activities will be calculated using volume data from Orbit and the
costs will then be pointed to the following Plant Groups (PGs).
•
PG570B - OR Service Centre - Provision WLR.
•
PG575B - OR Service Centre - Assurance WLR.
Data Source/s
Data is produced from our tactical production files and from service flow” The majority of these are fed from
Orbit.
SOFTCAP
All B
OUCs
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Openreach Organisational Unit Codes (OUCs).
Methodology
SOFTCAP for Openreach uses the same methodology as the OR Development base. Data from OR shows how the
development costs should be allocated by product which is translated into the relevant Plant Group. For the
SOFTCAP base OR tells us out of each of the projects what percentage will be capitalised, this will be very similar
to the development base but with subtle differences. This data enables us to point costs to key areas for example
NGA, Management Centres etc. For costs identified as non-specific an OR pay / fixed asset weighted base is
derived from ASPIRE and applied. For the Fixed Asset base these figures will be weighted by the Cost of Capital
and then used in conjunction with the Pay base.
Data Source/s
LoB (Line of Business) development base.
Openreach development project data
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P12 Organisational Unit Code (OUC) pay & fixed asset downloads.
SOFTCAP
All M
OUCs
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Retail Organisational Unit Codes (OUCs).
Methodology
114
SOFTCAP uses the current year software capitalisation costs. These costs are provided by Retail Finance with
appropriate treatments (e.g. Billing base, Customer Service base, Overhead, etc.) and by Product for Broadband,
and those are used to produce the final base.
Data Source/s
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) revenue downloads.
SOFTCAP
C
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Group Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs.
The capitalisation costs for OUC C are apportioned 100% to AG112, Corporate costs.
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
SOFTCAP
K
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Wholesale Organisational Unit Codes (OUCs).
Methodology
SOFTCAP for BT Wholesale uses the same analysis as the EXCEPT T development bases. The BTW element analyses
the BT TSO development billing data specific to BTW. For the SOFTCAP element all the BTW billing data is used
with the exception of Applications Support & Maintenance and Overheads as both of these costs do not get
capitalised by BTW. The analysis of the billing data identifies the business case entries and maps these to the
relevant SG&A Plant Group. Where there is no specific information for any Business case line then this allocation
will follow an OUC K Fixed Asset / Pay weighted base derived from ASPIRE. For the Fixed Asset base these figures
will be weighted by the Cost of Capital and then used in conjunction with the Pay base.
Data Source/s
LoB (Line of Business) development base.
BT TSO Development billing data P12.
ASPIRE P12 Organisational Unit Code (OUC) pay and fixed asset downloads
SOFTDEP
All B
OUCs
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Openreach Organisational Unit Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register for Openreach and
for Classes of Work COMPG (Externally purchased software) and COMPS (Internally developed software). Each line
contains entries that can, for the majority be mapped to a product range. Using Current Year depreciation to
provide the allocation. Where necessary a further allocation to Plant Groups is required for example Duct or
Service Management Centre entries from the FAR etc then the LOB Development sub base is used. Where nonspecific entries are identified from the FAR then an ASPIRE Fixed Asset/Pay weighted base is built for Openreach
and used to allocate to PG’s. For the Fixed Asset base these figures will be weighted by the Cost of Capital and
then used in conjunction with the Pay base.
Data Source/s
LoB (Line of Business) development base.
Fixed Asset Register software data for Period 12. Management believe this period to be reflective of the full year.
115
ASPIRE P12 Organisational Unit Code (OUC) pay & fixed asset downloads.
SOFTDEP
All K
OUCs
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to BT Wholesale Organisational Unit Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register for BT Wholesale and
for Classes of Work COMPG (Externally purchased software) and COMPS (Internally developed software). Each line
contains entries that can, for the majority be mapped to a product range. Using Current Year depreciation to
provide the allocation. Where necessary a further allocation to Plant Groups is required for example 21CN entries
from the FAR etc then the LOB Development sub base is used. Where non- specific entries are identified from the
FAR then an ASPIRE Fixed Asset/Pay weighted base is built for BT Wholesale and used to allocate to PG’s. For the
Fixed Asset base these figures will be weighted by the Cost of Capital and then used in conjunction with the Pay
base.
Data Source/s
LoB (Line of Business) development base.
Fixed Asset Register software data for Period 12. Management believe this period to be reflective of the full year.
ASPIRE P12 Organisational Unit Code (OUC) pay & fixed asset downloads
SOFTDEP
C
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) Group Organisational Unit Code C (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures. The depreciation costs for C OUC are apportioned 100% to
AG112, Corporate costs.
THDPTY
G101
Third Party Equipment
Description
This base is used to apportion the cost of 3rd party Point of Handover (PoH) equipment depreciation which is
required when connecting private circuits to 3rd party Communications Provider (CP).
Methodology
The cost of the equipment sits within the SDH Class Of Work (COW) under the SDHC asset policy code. The cost of
the 3rd party equipment depreciation is allocated across 22 Plant Groups and then to 35 components. It uses the
same allocation as PDTSDH base which is the base for SDH class of works to plant groups (PG).
Data Source/s
CTCS
116
TOTPAY,T
OTPAYCORA
ALL
Core
OUCs
Employee-related Receivables and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related Receivables and creditors, pay related group adjustments and
other provisions.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. CORA).
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8's to proudce
download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
= 100%
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100%
TOTPAY_CORA_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘CORA’, the Data Designator 2, specifies the AS Cost Centres to which the employee related Receivables and
creditors, group adjustments and pay provisions balances should be apportioned i.e. all AS Cost Centres excluding
overseas activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the CORA group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the CORA
creditors balance.
‘CORA’ refers to BT Core Business Cost Centres.
Data Source/s
System generated base from ASPIRE.
TOTPAY_C
OR
All
OUCs
Employee-related Receivables and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related Receivables and creditors, pay related group adjustments and
other provisions.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
117
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR).
DD1:
List of F8 codes to
be used to derive
relevant download
from ASPIRE
Use F8s to
produce
Use
F8's to proudce
download
download
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
= 100%
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100%
TOTPAY_CORA_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘COR’, the Data Designator 2, specifies the AS Cost Centres to which the employee related Receivables and
creditors, group adjustments and pay provisions balances should be apportioned i.e. all AS Cost Centres excluding
overseas activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the COR group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the CORA
creditors balance.
‘COR’ refers to BT Core Business Cost Centres.
Data Source/s
The data is system generated from ASPIRE..
TOTPAYORP
ALL
OUCs
Employee-related Receivables and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related Receivables and creditors, pay related group adjustments and
other provisions relating to Openreach.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ORP).
118
DD1:
List of F8 codes to
be used to derive Use F8s to
Use F8's to proudce
relevant download produce
download
download
from ASPIRE
ASPIRE:
Download
relevant base
information by
AS Cost
Centre
AS Cost Centres
that are not listed
in DD2 are
excluded from the
ASPIRE download
and the remaining
data is rebased to
100%
Download :
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
Eliminate data for
AS Cost Centres
not in DD2
= 100%
Download::
AS Cost Centre A
AS Cost Centre B
AS Cost Centre C
= 100%
DD2:
List of AS Cost
centres to which
the balance
should be
apportioned
Download :
AS Cost Centre A
AS Cost Centre C
= 100%
TOTPAY_ORP_Diagram1
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘ORP’, the Data Designator 2, specifies the AS Cost Centres to which the employee related Receivables and
creditors, group adjustments and pay provisions balances should be apportioned i.e. all AS Cost Centres excluding
overseas activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS Cost Centres not listed in
the ORP group of AS Cost Centres. The remaining data is rebased to 100% and this base is applied to the ORP
creditors balance.
‘ORP’ refers to BT Openreach Cost Centres.
Data Source/s
The data is system generated from ASPIRE..
TOTPAYPENA
ALL
Core
OUCs
Employee Pensions
Description
This base is used to apportion staff pension cost ledgered on BT Group consolidation units as well as Receivables
and creditors relating to employee pensions. These are apportioned on the basis of total pay (current and capital
account).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
It is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PENA).
Diagram: ASPIRE System Process
119
Use F8s to
produce
download
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT. The data is held within the ASPIRE system by AS
Cost Centre.
‘PENA’, the Data Designator 2, specifies the AS Cost Centres to which the group adjustments and staff provisions
and Receivables and creditors relating to pensions balances should be apportioned i.e. total BT units excluding
subsidiaries.
The TOTPAY apportionment base (see above) is adapted to exclude apportionments to AS Cost Centres not listed
in the PENA group of AS Cost Centres.
‘PENA’ refers to those BT units participating in one of the BT Pension schemes.
Diagram: Employee Pensions Apportionment Process
Data Source/s
The data is system generated from ASPIRE.
TOTPAYSYBA
ALL
Core
OUCs
Employee Profit Sharing – Total Pay (Current and Capital Account)
Description
This base is used to apportion staff costs and creditors relating to Employee Profit Sharing on the basis of total
pay (current and capital account).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
This is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. SYBA).
Diagram: ASPIRE System Process
120
Use F8s to
produce
download
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT. This data is held within the ASPIRE system by AS
Cost Centre.
‘SYBA’, the Data Designator 2, specifies the AS Cost Centres to which the creditors relating to Employee Profit
Share should be apportioned.
The TOTPAY apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the SYBA
group of AS Cost Centres.
‘SYBA’ refers to those BT Group units in the BT Sharesave scheme, which relate to employee profit share.
Diagram: Employee Profit Sharing Apportionment Process.
Data Source/s
The data is system generated from ASPIRE.
121
5 The Activity Group Dictionary
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
AG101
Motor Transport
Description
BT Fleet Management (within BT Group) provides motor vehicles, and associated products and services, to employees within
BT. The group recovers its cost by charging other BT units for its activities at commercial rates. It does this by maintaining
records of the units 'owning' the expenditure and can recover the costs using internal transactions.
It therefore follows that since the activity of this IAG relates to the provision of motor vehicles and associated services to the
whole of BT, F8 codes which directly relate to this activity should be apportioned directly to this IAG. This base performs this
process by creating a direct allocation to AG101 for these F8 codes.
Apportionment Summary
The apportionment of Motor Transport costs is made using an analysis of the activity of units receiving the transfer charge
from BT Fleet Management. The internal billing systems used by the Fleet Management Unit hold details of every vehicle, the
cost and the ‘owner’ (Organisational Unit Code - OUC) of the vehicle. This system, therefore, enables internal charges to be
generated to the other BT units. The internal charges are all at commercial rates.
Apportionment
It thus follows that the activities of the units being charged, weighted by the amounts each are being charged by Fleet
Management, should provide an appropriate base to apply to the costs that have been allocated to AG101.
This result is produced automatically by the Regulatory Accounting system using the apportionment of the ‘transfer out’ (F8
code 28xxxx) charges in Motor Transport and apportioning on the same basis. This is appropriate as the underlying recharges
are based on the activities of the units receiving the charges.
The ‘DTNHQ’ base allocates the corresponding ‘transfer in’ (F8 code 24xxxx) charge. The net impact of transfer charges on the
regulated markets is nil as the transfer charge in and out net to zero.
AG102
BT TSO Operational Costs
Description
IAG102 is used to apportion BT TSO’s common network management costs and balance sheet values, which cannot be
allocated directly to individual Lines of Business (LoBs). F8 codes which directly relate to these activities are allocated to this
IAG.
Apportionment
The ASPIRE system uses the following values to generate an apportionment allocation:
•
Net book value of Core fixed assets, excluding the following fixed asset classes: Copper; Duct, Fibre; Land and Buildings;
Vehicles; Office Machines; and Materials Awaiting Installation.
The apportionment base is then applied to the amounts contained within AG102.
AG103
BT TSO Support Functions
Description
IAG103 is used to apportion BT TSO’s overall support functions costs and balance sheets values, such as the BT TSO Finance
team, Human Resources function and BT TSO Strategy function. F8 codes which directly relate to these activities are allocated
to this IAG.
Apportionment summary
Based on direct pay and return on assets which BT TSO directly manages (see AG102 definition).
Apportionment
122
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
The costs allocated to AG103 relate to BT TSO’s overall support function expenses, e.g. The Finance function, Human
Resources function and the TSO Strategy team. The purpose of these TSO support function activities is generally seen as being
two-fold:
•
Management of the employees within BT TSO.
•
Management of those assets managed by BT TSO to create a return.
The ASPIRE system uses the following costs to generate an apportionment allocation:
•
Salary expenses for BT TSO (current and capital account)
•
Net book value of Core fixed assets, excluding the following fixed asset classes: Copper; Fibre; Land and Buildings;
Vehicles; Office Machines; and Materials Awaiting Installation.
The AG103 base draws on the result of the previously attributed pay costs within the ASPIRE system following the base
reference stage.
The ‘return on assets’ percentage if then applied to the net book value of each of the fixed asset class identified by the
Regulatory Accounting system. Certain fixed asset classes are specifically excluded (as described above). The return on assets
percentage is determined by Ofcom. This is applied to ensure that the driver reflects the BT TSO support function activities of
‘managing those assets BT TSO manages”.
By weighting the previously attributed pay costs together with the fixed asset values (taking into account the fact that the
asset amounts have already had the return on assets and investment percentages applied to them) an apportionment base for
AG103 is derived.
AG106
Group Property and Facilities Management
Description
Group Property is a business unit responsible for all aspects of BT’s real estate management, including property strategy, real
estate transactions, workplace management and utilisation, property and cumulo rates management, and property cost
transformation activities.
This business unit is a cost centre that recovers its costs by charging Lines of Business (LoBs) for the occupancy of space
(including facilities management) and use of electricity on a building by building basis. It does so by maintaining records of the
costs of running each building and then also the use of office and operational floor space, energy usage and facility
management by each LoB in each building. Empty space in Operational buildings is charged to Openreach. This is because
management believe that the high costs and the disruption to services that would be incurred in moving cable chambers and
main distribution frames prevents BT from reducing the size of the operational building portfolio.
Apportionment Summary
The apportionment of costs within AG106 is made using an analysis of the transfer charges raised by Group Property to the
LOBs and then a secondary analysis of how each LOB uses the space or services for which it is being charged.
Apportionment
AG106 contains the costs and balance sheet amounts of the Group Property Unit (within BT Group) except for the cumulo
rates bills which are allocated separately and certain non-core transactions which are allocated to retail residual
products.AG106 also includes:
•
the costs of utility bills (that are incurred by BT TSO but transferred into Group Property and
•
facility management costs (which are incurred by the new LoB BT Facilities Services but whose costs are recovered
through Group Property billing).
We analyse the ledgered values for the Group Property bills received (Transfer In F8 codes: 24xxxx) by each LOB. We then
allocate the bills for each LOB according to the occupied space and power usage of their equipment (for operational space)
and the activities undertaken by their people (for office space).
The regulatory accounting system then automatically matches the cost allocations to the transfer charges by Group Property (
‘transfer out’ (F8 codes: 28xxxx) this credit effectively matches the costs received by the LOBs, so at this stage the internal
charges and receipts cancel each other out.
The system then collates all the transfer out F8 codes to provide a weighted allocation which is then applied to the underlying
123
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
cost within AG106.
This process is shown in the diagram below and the methods for allocation for each of the main LOBs are shown below.
BT TSO (OUC T) – Operational Space is allocated to Plant Groups and other Activity Groups based on detailed analysis of the
floor space and power requirements of their equipment and Office Space is allocated to Plant Groups and other Activity
Groups based on the previously allocated BT TSO pay.
Openreach (OUC B) Operational space and electricity are apportioned to Plant Groups and other Activity Groups based on a
detailed analysis of their equipment. In the case of LLU Hostels, space is apportioned using actual space occupied and
forecasts received from CP’s for new Points of Presence (POP) at exchanges. Office space is apportioned to Plant Groups and
other Activity Groups based on the previously apportioned Openreach pay.
BT Retail (OUC M) Office space is apportioned primarily to downstream Retail Residual products.
BT Global Services (OUC J) Office space is apportioned primarily to downstream Retail Residual products.
BT Wholesale (OUC K) Office Space is apportioned to Plant Groups based on the previously apportioned BT Wholesale pay.
BT Group (OUC C) Office space is allocated to AG112 Corporate Costs.
AG112
Corporate Costs
Description
IAG AG112 is used to apportion head office type costs an balance sheet values such as the Chairman’s office and the Group
secretariat. F8 codes which directly relate to these activities are allocated to this IAG.
Apportionment Summary
Based on factorised current salary and capital salary costs plus a return on assets.
Apportionment
The costs allocated to AG112 relate to head office type expenses e.g. the Chairman’s office and the Group secretariat. The
purpose of these head office activities is generally seen as being two-fold:
•
Management of the employees within the company.
•
Management of the assets of the company to create a return.
The base to apportion these costs must reflect these activities if it is to reflect cost causality.
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:
•
Factorised salary expenses for the whole of BT (current and capital account).
•
Net book value of fixed assets revalued for current cost accounting (CCA) for the whole of BT.
The AG112 base draws on the result of the previously attributed pay costs within the ASPIRE system following the base
reference stage.
The ‘return on assets’ percentage is then applied to the CCA net book value of each fixed asset class identified by the
Regulatory Accounting system. This percentage is determined by Ofcom. This is applied to ensure that the driver reflects the
corporate activities of ‘managing the assets of the company to create a return’.
By weighting the previously attributed pay costs together with the CCA fixed asset values (taking into account the fact that the
asset amounts have already had the return on assets and investments percentages applied to them) an apportionment base for
AG112 is derived.
The final base apportionment excludes subsidiaries and associates as these are overseas activities and the AG112 costs are
being attributed solely to UK activities.
This is illustrated in the following diagram:
124
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
How the salary&
Asset Categories
have been
previously
apportioned by the
Regulatory
Accounting System
Asset Categories
Asset
Category 1
£20, 000
Asset
Category 2
£40, 000
%
Return
on
Assets
(set by
Ofcom)
P001
£1, 000
Asset
Category 2
£4, 000
P002
£3, 000
PG003
£5, 000
Asset
Category 2
£8, 000
P001
£3, 000
Apportionment Base
:
P 001 = ((1, 000+3, 000+1,000)/18,000)*100=
P 002 = ((3, 000+1,000)/18, 000)*100=
PG 003= (5, 000/18,000)* 100=
PG 004= ((3,000+1, 000)/18, 000)- 100=
P001
£1, 000
Salary
Category 1
£4,000
PG004
£3, 000
PG004
£1, 000
Salary
Category 2
£2,000
P002
£1, 000
Salary Categories
Total Apportioned
Amount = £18,000
Diagram1_AG112_v1
This apportionment base can then be applied to the amounts contained within AG112:
Apportionment Base
P001
27.8%
P002
22.2%
27.8%
P003
P004
22.2%
P001
£27,800
P002
£22,200
AG112
£100,000
P003
£27,800
P004
£22,200
Diagram2_AG112
AG113
Liquid Funds and Interest
Description
The AG113 Activity Group apportions all liquid fund transactions, defined as Net Short-term Interest Payable (Profit and Loss)
and Short-term Cash, Short-term Investments (both internal and third party), and Short-term Borrowings.
Methodology
All Liquid Funds are collated against AG113 The apportionment of is driven by cash costs, which for these purposes are
defined by taking total current account costs and capital account expenditure
AG114
Non-Core Suspense
125
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
Description
Base apportions costs and capital employed for trades between Core and Non-Core units.
Methodology
Attributed directly to Retail Residual.
AG132
Payphone Revenue Collection
Description
Intermediate activity group AG132 acts as the collection pot for the costs relating to coin collection from Public Payphones.
Methodology
Attributed to Retail Residual products.
AG135
Duct used by Access Cables
Description
The amounts, apportioned to AG135, are the costs and balance sheet items for Access Duct.
Methodology
Access duct is apportioned to seven Plant Groups (PGs):
•
PG111C (Access Spine Fibre).
•
PG959C (Access Distribution Fibre).
•
PG950C (GEA Access Fibre Spine).
•
PG951C (GEA Access Fibre Distribution).
•
PG117C (E-Side Copper Cable).
•
PG118C (D-Side Copper Cable).
•
PG130A (Local Loop Unbundling Tie Cables).
The Absolute Duct Study determines the split between Access Duct used for fibre and Access Duct used for copper cable when
the survey was carried out in 1997. This base is then updated based on the split of 1997 Gross Replacement Cost (GRC) for
Access Duct plus fibre and copper Access Duct spend by Class of Work (CoW) since 1997.
For Access Fibre the split to the four PG’s is based on derived depreciation using internal project ledger (IPL) spend for the
Generic Ethernet Access (GEA) PG’s and depreciation from the (Life of Plan) LoP list for the Access Fibre Spine/Distribution
PG’s.
The apportionment to the other three PGs is determined using the depreciation charges for:
•
E-Side copper cable.
•
D-Side copper cable.
•
Local Loop Unbundling cable.
By totalling the depreciation for a period representative of the full year for these three items, apportionment percentages are
created for the related PGs. These historical cost figures are obtained from the Life of Plant (LoP) list. The LoP list sources its
information from the fixed asset register.
Data Source/s
Absolute Duct Study (carried out in 1997).
Life of Plant (LoP) list.
Central Information Database (CID).
126
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
Internal Project Ledger (IPL).
AG148
Duct used by Backhaul Cables
Description
The amounts, apportioned to AG148, are the costs and balance sheet items for Backhaul Duct.
Backhaul Duct is the national network of underground bores and ducting between exchange nodes that are considered part of
the Openreach division’s assets and is used to house optical fibre and metallic communications transmission cables.
Methodology
AG148 is allocated 100% to PG170B Openreach Backhaul Fibre.
AG149
Duct used by Core Cables
Description
The amounts, apportioned to AG149, are the costs and balance sheet items for Inner Core Duct.
Inner Core Duct is the national network of underground bores and ducting between exchange nodes (excluding Openreach
assets) and is used to house optical fibre and metallic communications transmission cables.
Methodology
AG149 is allocated 100% to PG350N Wholesale Inner Core Fibre.
AG161
Specialised Accommodation Equipment- Maintenance
Description
IAG AG161 acts as the collection pot for the current account related overhead costs of maintaining systems providing heating,
ventilation, air conditioning and general environmental control in BT’s Network Operational Buildings (i.e. non-office
buildings such as property occupied by local exchanges). The F8 codes directly relating to this activity are allocated to this IAG.
Methodology
This base apportions AG161 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work F2AN.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/T
Period 8 equipment data from network cost analysts and operational groups such as EXPRES and CTCS. Management believes
this period to be reflective of the full year.
AG162
Specialised Accommodation Equipment - non Maintenance
Description
IAG AG162 acts as the collection pot for the current account related overhead costs of maintaining systems providing heating,
ventilation, air conditioning and general environmental control in BT’s Network Operational Buildings (i.e. non-office
buildings such as property occupied by local exchanges). The F8 codes directly relating to this activity are allocated to this IAG.
Methodology
This base apportions AG162 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work ACPN.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/T.
Period 8 equipment data from network cost analysts and operational groups such as EXPRES and CTCS. Management believes
this period to be reflective of the full year.
127
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
AG163
Back-up Power Equipment – Maintenance
Description
IAG AG163 acts as the collection pot for the maintenance costs on equipment providing power to BT’s Network Operational
Buildings (i.e. non-office buildings such as property occupied by local exchanges). F8 codes directly relating to this activity are
allocated to this IAG.
Methodology
This base apportions AG163 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work P.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/T.
Period 8 equipment data from network cost analysts and operational groups such as EXPRES and CTCS. Management believes
this period to be reflective of the full year.
AG164
Back-up Power Equipment - non Maintenance
Description
IAG AG164 acts as the collection pot for the balance sheet amounts and associated depreciation charges of equipment
providing power to BT’s Network Operational Buildings (i.e. non-office buildings such as property occupied by local
exchanges). F8 codes directly relating to this activity are allocated to this IAG.
Methodology
This base apportions AG164 costs to Products and Plant Groups using the electricity consumption of network equipment
associated with class of work TPC.
Data Source/s
Most recent version of the specialised electricity base DTNELSP/T. Period 8 equipment data from network cost analysts and
operational groups such as EXPRES and CTCS. Management believes this period to be reflective of the full year.
AG401
Openreach Pay Driver
Description
IAG AG401 is used to apportion costs and balance sheet values needing to be allocated to products and services based on
Openreach Line of Business current and capital pay.
Types of costs captured in AG401 are Openreach Human Resources, Openreach HQ costs and miscellaneous costs supporting
Openreach Line of Business
Methodology
The AG401 base draws on the result of the previously attributed Openreach Line of Business current and capital pay costs
within the ASPIRE system following the base reference stage
AG402
TSO Pay driver
Description
IAG AG402 is used to apportion costs and balance sheet values needing to be allocated to products and services based on TSO
Line of Business current and capital pay.
Types of cost captured in AG402 are miscellaneous costs supporting BT TSO Line of Business.
Methodology
The AG402 base draws on the result of the previously attributed TSO Line of Business current and capital pay costs within the
ASPIRE system following the base reference stage.
128
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
AG403
Openreach Store driver
Description
IAG AG403 is used to apportion costs and balance sheet values needing to be allocated to products and services based on
Openreach Line of Business current and capital stores costs.
Types of cost captured in AG403 are elements of supplies management costs supporting Openreach Line of Business.
Methodology
The AG403 base draws on the result of the previously attributed Openreach Line of Business current and capital stores costs
within the ASPIRE system following the base reference stage.
AG404
TSO Store driver
Description
IAG AG404 is used to apportion costs and balance sheet values needing to be allocated to products and services based on TSO
Line of Business current and capital stores costs.
Types of cost captured in AG404 are elements of supplies management costs supporting TSO Line of Business.
Methodology
The AG404 base draws on the result of the previously attributed TSO Line of Business current and capital stores costs within
the ASPIRE system following the base reference stage.
AG405
Retail Store driver
Description
IAG AG405 is used to apportion costs and balance sheet values needing to be allocated to products and services based on BT
Retail Line of Business current and capital stores costs.
Types of cost captured in AG405 are elements of supplies management costs supporting Retail Line of Business
Methodology
The AG405 base draws on the result of the previously attributed Retail Line of Business current and capital stores costs within
the ASPIRE system following the base reference stage.
AG406
Wholesale Pay driver
Description
IAG AG406 is used to apportion costs and balance sheet values needing to be allocated to products and services based on
Wholesale Line of Business current and capital pay.
Types of cost captured in AG406 are miscellaneous costs supporting BT Wholesale.
Methodology
The AG406 base draws on the result of the previously attributed Wholesale Line of Business current and capital pay costs
within the ASPIRE system following the base reference stage.
AG407
OR Operations pay driver
Description
IAG AG407 is used to apportion costs and balance sheet values that need to be allocated to products and services based on
Openreach Operations – organisational units BV and BL current and capital pay.
Types of cost captured in AG407 are miscellaneous costs supporting Openreach Operations Units
Methodology
129
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
The AG407 base draws on the result of the previously attributed Openreach current and capital pay costs within the ASPIRE
system following the base reference stage.
AG408
Openreach Fixed Asset driver
Description
IAG AG408 is used to non-current assets and apportions costs and balance sheet values needing to be allocated to products
and services based on Openreach Net Book Value.
Types of cost captured in AG408 are non – specific Openreach development costs
Methodology
The AG408 base draws on the result of the previously attributed Openreach non-current Net Book Values within the ASPIRE
system following the base reference stage.
AG409
Wholesale Pay plus Return on Fixed Asset driver
Description
The type of cost captured in AG409 are non – specific software depreciation costs for Wholesale Line of Business
Methodology
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:
•
Salary expenses for the BT Wholesale Line of Business (current and capital account).
•
Net book value of fixed assets revalued for current cost accounting (CCA) for Wholesale Line of Business.
The AG409 base draws on the result of the previously attributed pay costs within the ASPIRE system following the base
reference stage.
The ‘return on assets’ percentage is then applied to the CCA net book value of each fixed asset class identified by the
Regulatory Accounting system. This is applied to ensure that the driver reflects the Wholesale activities of ‘managing the assets
of the company to create a return’.
By weighting the previously attributed pay costs together with the CCA non-current asset values (taking into account the fact
that the asset amounts have already had the return on assets and investments percentages applied to them) an apportionment
base for AG409 is derived.
AG410
Openreach Pay plus Return on Fixed Asset driver
The type of cost captured in AG410 are non – specific software depreciation costs for Openreach Line of Business
Methodology
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:
•
Salary expenses for the Openreach Line of Business (current and capital account).
•
Net book value of fixed assets revalued for current cost accounting (CCA) for Openreach Line of Business.
The AG410 base draws on the result of the previously attributed pay costs within the ASPIRE system following the base
reference stage.
The ‘return on assets’ percentage is then applied to the CCA net book value of each fixed asset class identified by the
Regulatory Accounting system. This is applied to ensure that the driver reflects the Openreach activities of ‘managing the
assets of the company to create a return’.
By weighting the previously attributed pay costs together with the CCA fixed asset values (taking into account the fact that the
asset amounts have already had the return on assets and investments percentages applied to them) an apportionment base for
AG410 is derived.
130
AG
An Intermediate Activity Group (IAG) is a collection pot of revenue, expenditure and balance sheet amounts whose similar
underlying nature means they have the same apportionment driver. Instead of creating individual apportionment bases for
each F8 code, they can be grouped together and apportioned using the one methodology
Base Ref
Detailed Description (For all descriptions below, see Appendix A for Key Destinations)
AG412
BT Property Fixed Assets
Description
This base is used to apportion the Net Book Values (NBV) of the BT Property non-current assets
Methodology
The BT asset values are apportioned using an analysis of the transfer charges made to the BT occupants. The transfer charges
within each Line of Business are allocated to products and cost centres. A regular review is carried out of space consumed by
BT units in BT owned buildings. BT units are then charged for the occupancy.
Buildings are designated as either Specialised (e.g. exchanges) or General Purpose (e.g. offices) and the charges detailed by
both OUC and Building on the Group Properties Horizon system.
ASPIRE is used to generate a base for the General Purpose buildings, utilising the charges by OUC and the corresponding pay
bases. The base used to support the Specialised Buildings is derived by an analysis of the floor space occupied by equipment
type.
The two bases are then combined, weighted by the relative charges, and applied against the BT Property Estate Fixed Asset
values.
Data Source/s
The data is system generated from ASPIRE
AG414
Property Provision
Description
BT Property is currently implementing a property rationalisation strategy by consolidating the office space within the estate,
and this is enabling the mothballing and subletting of buildings.
The cost associated with this rationalisation is treated as a provision, as it is not part of business as usual activity.
Methodology
The property rationalisation is limited to office space, and therefore a base derived from the General Purpose Occupation cost
charges to Lines of Business (LoB) provides a cost causal apportionment methodology. Effectively the cost of the property
rationalisation is being apportioned over current office space usage.
AG415
Fleet Fuel
Description
This base apportions BT External Payment for Vehicle Fuel.
Methodology
The cost of Motor Transport (MT) vehicle fuel is recovered from the Lines of Business (LoB) via the transfer charges to the
Organisational Unit Codes (OUCs)/Organisational Units based on the utilisation of the services provided to the OUC.
The transfer charges are used to provide an analysis of the fuel in the different parts of BT. The analysis of the transfer charge
amounts are used to calculate an overall base that is then applied to the underlying actual costs, which are attributed pro-rata
to the transfer charge.
Data Source/s
The data is system generated from ASPIRE
131
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix A for Key Destinations)
PG001X
POH Equipment Depreciation Adj Debit
Description
This Plant Group (PG) provides a debit adjustment for Equipment Depreciation that has been identified from the credit Plant
Group (PG001Y).
The PG contains bandwidth specific depreciation that is onward allocated to specific equipment services.
Methodology
The number of circuits is multiplied by the price per circuit to give the total revenue. The revenue is then split between the
different types of circuits i.e. 2Mbit/s, 34Mbit/s etc. This is then divided by the asset life to give the depreciation charge. The
accumulated deprecation is calculated and added into ASPIRE.
Data Source/s
ASPIRE, COSMOSS.
PG002X
TISBO Excess Construction Adjustment Debit
Description
This Plant Group (PG) provides a debit adjustment from a number of TISBO services whereby Excess Construction depreciation that
has been recovered under rental services has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue and the
‘estimated’ margin that BT makes, thus obtaining a total cost for both Traditional Interface symmetric broadband origination
(TISBO) and AISBO markets.Allocates 100% to the CE103 Low TISBO Excess Construction component.
Data Source/s
ASPIRE.
PG002Y
TISBO Excess Construction Adjustment Credit
Description
This Plant Group (PG) provides a credit adjustment from a number of TISBO services whereby Excess Construction depreciation
that has been recovered under rental services has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue and the
‘estimated’ margin that BT makes, thus obtaining a total cost for both Traditional Interface symmetric broadband origination
(TISBO) and AISBO markets.
Data Source/s
ASPIRE.
PG003X
AISBO Excess Construction Adjustment Debit
Description
This Plant Group (PG) provides a debit adjustment from a number of AISBO services whereby Excess Construction depreciation
that has been recovered under rental services, has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue and the
‘estimated’ margin that BT makes, thus obtaining a total cost for both Traditional Interface symmetric broadband origination
(TISBO) and AISBO markets. Allocates 100% to the CE104 AISBO Excess Construction component.
Data Source/s
ASPIRE.
132
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix A for Key Destinations)
PG003Y
AISBO Excess Construction Adjustment Credit
Description
This Plant Group (PG) provides a credit adjustment, from a number of AISBO services, whereby Excess Construction depreciation
that has been recovered under rental services has been extracted and moved to a specific Excess Construction PG.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction revenue and the
‘estimated’ margin that BT makes, thus obtaining a total cost for both Traditional Interface symmetric broadband origination
(TISBO) and AISBO markets..
Data Source/s
ASPIRE.
PG004X
POH Depreciation Local End Adjustment Debit
Description
This Plant Group (PG) provides a debit adjustment for PoH Equipment Depreciation that has been identified from the credit Plant
Group PG004Y. The PG contains bandwidth specific depreciation that is onward allocated to specific POH equipment services.
Methodology
The number of circuits is multiplied by the price per circuit to give the total revenue. The revenue is then split between the
different types of circuits i.e. 2Mbit/s, 34Mbit/s etc. This is then divided by the asset life to give the depreciation charge. The
accumulated deprecation is also calculated and added into ASPIRE.
Data Source/s
ASPIRE, LoP List, COSMOSS.
PG004Y
POH Depreciation Local End Adjustment Credit
Description
This Plant Group (PG) provides a credit adjustment for the specific POH equipment that is contained in a number of Traditional
Interface symmetric broadband origination (TISBO) services. These costs have been extracted to a specific POH equipment PG.
Methodology
The number of circuits is multiplied by the price per circuit to give the total revenue. The revenue is then split between the
different types of circuits i.e. 2Mbit/s, 34Mbit/s etc. This is then divided by the asset life to give the depreciation charge. The
accumulated deprecation is also calculated and added into ASPIRE.
Data Source/s
ASPIRE, LoP List, COSMOSS.
PG111C
Access Fibre Spine
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of spine fibre cable in the access
network i.e. the network between the local exchange and distribution node.
Exchange
Customer
Node
S pine C able
D is tribution C able
This includes costs associated with clearing existing duct (to allow cable to be installed), jointing and splicing spine fibre.
Specifically this PG captures costs from the following areas/functions:
•
Pay costs associated with the installation of spine fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
133
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix A for Key Destinations)
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding spine fibre to the access network.
•
Costs associated with installing spine fibre between the local exchange and the distribution node.
•
Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).
•
Depreciation costs from the following CoW – Local Fibre Spine Cable (LFSC).
Methodology
Apportionment to component is based on data supplied via the Core Transmission Circuit costing System (CTCS), using circuits and
bearer volumes as at Period 6. The data used from CTCS (refer to Data Source section) includes the percentage of fibre bearer
capacity used by a particular circuit (component).
CTCS provides the volumes of circuits over a bearer which is then converted into 2Mbit/s equivalents. These are weighted by
circuit bandwidth usage of the various bearers.
Data Source/s
Circuits and Bearer Volumes from CTCS for Period 6. Management believes this period to be reflective of the full year.
PG111M
Access Fibre Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with the local line fibre cable in the access network i.e. between
the local exchange and customer’s premises, or fibre installed up to street multiplexers. This includes costs associated with clearing
existing duct (to allow cable to be installed), jointing distribution and spine cable (splicing). This PG captures costs from the
following areas/functions:
•
Pay costs associated with the installation of access fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding fibre to the access network.
•
Costs associated with installing fibre between the local exchange and a customer (direct feed) and between a local spine fibre
and a customer.
•
Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).
•
Depreciation costs from the following CoW – Local Fibre Distribution Cable (LFDC) and Local Fibre Spine Cable (LFSC).
Methodology
The costs are attributed on the same basis as the depreciation costs of this equipment (see PG111C Local Lines Fibre Cable
Capital); on the basis that maintenance activity is carried out to support the performance of the cable and can therefore be
regarded as an overhead of the capital/depreciation expenditure incurred.
Data Source/s
Circuits and Bearer Volumes etc. from CTCS at Period 6. Management believes this period to be reflective of the full year.
PG114L
ISDN30 Connections
Description
This Plant Group (PG) captures the cost associated with the provision, cessation and rearrangement of Integrated Services Digital
Network (ISDN30) circuits.
Types of costs include pay, stores issued and general equipment.
Types of work carried out includes testing, line up of circuits, updating records, labelling equipment for onward connection and
connecting transmission equipment at the specified bit rate. These costs can be identified directly from the primary General
Ledger (GL) posting, the classes of work (CoW).
134
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix A for Key Destinations)
Methodology
Allocates 100% to the ISDN30 Connection component CL163.
PG115C
Access Radio Equipment
Description
This Plant Group (PG) captures the costs associated with the construction, rearrangement and renewal of access radio systems.
These systems are used to deliver Megastream and other non-voice services from the local exchange to customers’ premises.
Types of cost include depreciation, stores and pay costs.
Equipment used in the provision of this service includes:
•
Feeder cable between BT operational buildings and adjacent antenna.
•
Hand held mobile systems used in connection with the above work.
•
Testing equipment and line-of-sight surveying equipment.
•
Masts, aerials, transceivers and ancillary indoor and outdoor equipment for point-to-point and point to multi-point radio
systems.
•
Initial provision of spare plant.
Methodology
The Core Transmission Circuit costing System (CTCS) system is used to obtain circuit numbers from BT main systems. Period 6 data
is used as this is representative of the full year.
This gives a number of each type of circuit by bandwidths which are converted into 2Mbit/s equivalents, as 2Mbit/s is the smallest
unit. These circuits are weighted by the cost of the bearer system used to deliver the circuit. The bearer weighting is the bearer
cost.
Data Source/s
CTCS circuit numbers as at Period 6. Management believes this period to be reflective of the full year.
PG115M
Access Radio Maintenance
Description
This Plant Group (PG) captures the maintenance costs of the local line access radio.
Types of cost include non-ETG pay and stores.
Equipment used in the provision of this service includes:
•
Feeder cable between BT operational building and adjacent antenna.
•
Hand held mobile systems used in connection with the above work.
•
Testing equipment and line-of-sight surveying equipment.
•
Masts, aerials, transceivers and ancillary indoor and outdoor equipment for point-to-point and point to multi-point radio
systems.
•
Initial provision of spare plant.
Methodology
The costs are attributed on the same basis as the depreciation costs of this equipment (see PG115C Local Lines Access Radio
Capital) on the basis that maintenance activity is carried out to support the performance of the radio equipment and can therefore
be regarded as an overhead of the capital/depreciation expenditure incurred.
Data Source/s
Core Transmission Circuit costing System (CTCS) circuit numbers at Period 6. Management believes this period to be reflective of
the full year.
PG117C
E-Side Copper Cable
135
Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix A for Key Destinations)
Description
This Plant Group (PG) captures the capital costs associated with E-SideCopper. The Access Network for Regulatory Accounting
purposes is split between exchange (E-side) and distribution side (D-Side) copper cable. Types of cost include depreciation, stores
and pay costs.
E-Sidecable is the cable that links the local exchange to the primary cross connection point. D-Sidecable is the cable that links the
primary cross connection point to the Distribution Point (DP).
Methodology
Allocates 100% to the E-SideCopper Capital component CL171
PG117M
E-Side Copper Cable Maintenance
Description
This Plant Group (PG) captures the current costs associated with E-SideCopper. The Access Network for Regulatory Accounting
purposes is split between exchange-side (E side) and distribution side (D-Side) copper cable. E-Side cable is the cable that links
the local exchange to the primary cross connection point. D-Side cable is the cable that links the primary cross connection point to
the Distribution Point (DP).
Types of cost include non-ETG pay and stores.
Methodology
Allocates 100% to the E-SideCopper Current CL172
PG118C
D-Side Copper Cable
Description
This Plant Group (PG) captures the capital costs associated with D-Side Copper. Types of cost include depreciation, stores and pay
costs.
The Access Network for Regulatory Accounting purposes is split between exchange-side (E side) and distribution side (D-Side)
copper cable. E-Sidecable links the local exchange to the primary cross connection point. D-Sidecable links the primary cross
connection point to the Distribution Point (DP).
Methodology
Allocates 100% to the D-Side Copper Capital CL173
PG118M
D-Side Copper Cable Maintenance
Description
This Plant Group (PG) captures the current costs associated with D-Side Copper. The Access Network for Regulatory Accounting
purposes is split between exchange-side (E-side) and distribution side (D-Side) copper cable. E-side cable is the cable that links
the local exchange to the primary cross connection point. D-Side cable is the cable that links the primary cross connection point to
the Distribution Point (DP).
Types of cost include non-ETG pay and stores.
Methodology
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Plant
Group
Detailed Description and Methodology (For all descriptions below, see Appendix A for Key Destinations)
Allocates 100% to the D-Side Copper Current CL174
PG119A
Telephony Over Passive Optical Network (TPON)
Description
This Plant Group (PG) captures costs associated with TPON.
TPON is a technology which uses fibre from the exchange to the street cabinet and copper from the cabinet to the customer. It is
now in the process of being removed as it does not support broadband.
Types of cost include pay (from maintenance of exchange electronics and customer sited electronics), planning and depreciation
costs from the provision, rearrangement, replacement and renewal of both exchange service modules and customer sited
modules.
Methodology
Allocates 100% to the D-Side Copper component CL173.
PG120A
Payphone Line Cards
Description
This captures the costs associated with the maintenance of the Payphone line cards.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Public Payphones Access component CL191.
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PG121M
Dropwire Maintenance Business
Description
This Plant Group (PG) captures the costs associated with the maintenance of Business PSTN, from the distribution point to the
customer's premises.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the Business Analogue line drop maintenance component CL180.
PG122M
Dropwire Maintenance Residential
Description
This Plant Group (PG) captures costs associated with the maintenance of Residential PSTN, from the distribution point to the
customer’s premises. Types of cost include stores and pay costs.
The distribution point is the point near to a customer’s premises where the main cable from a Primary Cross connection point (PCP)
is split in order to provide service at one or more localised premises. It could be at the top of telegraph pole, under a walkway or
on the E-Side of a building etc. PCP boxes are the green metal cabinets located by the E-Side of the road.
Methodology
Allocates 100% to the Analogue line drop maintenance component CL180.
PG123M
ISDN2 Maintenance
Description
This Plant Group (PG) captures the store and pay costs associated with the maintenance of ISDN2, from the distribution point to
the customer's premises.
Methodology
Allocates 100% to the ISDNdrop Maintenance component CL181.
PG124A
ISDN30 Equipment
Description
This Plant Group (PG) captures the Capital costs of ISDN30.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the ISDN30 Line Cards component CL190.
PG127A
Analogue Linecards
Description
This Plant Group (PG) captures Profit and Loss (e.g. Depreciation, ETG and Non ETG Pay, and Non Pay) and Balance Sheet items
associated with the provision of analogue line cards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the PSTN Line Cards component CL183. (check comp name)
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PG128A
ISDN2 Linecards
Description
This Plant Group (PG) captures the capital costs associated with ISDN2 line cards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the ISDN2 Line Cards component CL184.
PG129A
Pair Gain Systems
Description
This Plant Group contains the cost of provisioning, rearranging and recovering pair gain electronics in the access network.
Pair gain is a piece of equipment which provides to analogue lines over one pair of copper wires.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Pair Gain component CL185.
PG130A
Intra-exchange Tie Cables
Description
This Plant Group (PG) captures costs of tie cables for LLU. LLU enables other communication providers (OCP) to use BT’s local loop
to provide services to customers. This is delivered by co-mingling in which BT provides a room in an exchange for an OCP and their
equipment and arranges for connection of the room to the BT Main Distribution Frame (MDF) via a tie cable. The OCP has to order
'ties' in items of 100 pair cables.
Methodology
Apportions to CL133 – Tie cables and CL170 – Internal tie cables based on tie cable volumes supplied by the Openreach’s
management LLU volume report.
PG131L
Liquid Funds (Network Business)
Description
This Plant Group (PG) captures the costs of Liquid Fund transactions, which are ultimately apportioned to the network business.
Methodology
This Plant Group apportions to components based on the cash flow of the underlying components .Cash flow, for these purposes is
defined as operating profit, less depreciation and adds in capital additions.
PG132B
LLU Co-mingling Recurring Costs (OR)
Description
This Plant Group (PG) captures the cost of LLU Hosting Rental. Hosting Rental is the rental of a site for hosting LLU equipment.
Methodology
Allocates 100% to the Co-mingling rentals component CL132.
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PG132N
LLU Co-mingling Recurring costs (BT TSO)
Description
This Plant Group (PG) captures the cost of LLU Hosting Rental. Hosting Rental is the rental of a site for hosting LLU equipment.
Methodology
Allocates 100% to the Co-mingling power & vent traded component CT134.
PG136A
LLU Co-mingling Surveys
Description
This Plant Group (PG) captures the costs of carrying out surveys on BT buildings to enable infrastructure such as Cabling, Vent and
Chill equipment, access etc for LLU hostels.
Methodology
Allocates 100% to the Co-mingling new provides component CL131.
PG136N
LLU Co-mingling Provision
Description
This PG captures the cost of building the LLU Hostels within BT Exchanges.
Methodology
Allocates 100% to Co-mingling new provides CL131.
PG140A
Routing and Records
Description
The Plant Group (PG) captures the costs and balance sheet (Depreciation, ETG and Non-ETG Pay and Non Pay) of Routing and
Records work for provision of analogue / ISDN lines, Local Loop Unbundling (LLU) and Fibre based circuits.
Methodology
Plant Group point 100% to component CL160 Routing & Records
PG142A
Main Distribution Frame (MDF) Hardware Jumpering
Description
This Plant Group (PG) captures the costs and balance sheet associated with jumpering activities on the Main Distribution Frame
(MDF) connecting the Exchange switch equipment to the Exchange-Side (E-Side) cable.
An MDF jumper is a copper connection that provides a flexible connection between two terminal ends, commonly used to connect
the line sideto the exchange side of the MDF.
Methodology
Allocates 100% to CL161 – MDF Hardware Jumpering
PG145B
Asymmetric Digital Subscriber (ADSL) Connections
Description
This Plant Group (PG) captures the costs associated with the provision and installation of ADSL.
The classes of work (CoW) associated with this PG is Circuit Provision ADSL. This CoW covers all provision activities in serving
exchanges and customer site, including end to end testing.
Methodology
Allocates 100% to the ADSL Connections component CO118.
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PG145N
WBA End User NTEs
Description
This Plant Group (PG) captures the costs associated with the Provision and Installation costs for Asymmetric Digital Subscriber Line
(ADSL).
The classes of work (CoW) associated with this Plant Group are Internally Developed Software (COMPS) and NOP (Network
Operations Platform) Circuit Provision - ADSL. These CoW’s cover all provision and software activities in serving exchanges and
customer site, including end-to-end testing.
Methodology
Allocates 100% to the ADSL Connections component CO118.
PG147B
Symmetric Digital Subscriber Line (SDSL) Connections
Description
This base apportions costs associated with SDSL Connections.
SDSL provides the same bandwidth in both directions, unlike Asymmetric Digital Subscriber Line (ADSL).
Methodology
Allocates 100% to the SDSL Connections component CO136.
PG147N
Symmetric Digital Subscriber Line (SDSL) Connections (Wholesale)
Description
SDSL provides the same bandwidth in both directions, unlike Asymmetric Digital Subscriber Line (ADSL).
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the SDSL Connections component CO136.
PG149A
Analogue Line Final Drop
Description
Drop wires are wires connecting the Distribution Point to the customer’s premises.
This Plant Group (PG) captures the Drop wire costs associated with specific analogue line based Products.
Methodology
Allocates directly 100% to the Drop wire component CL178.
PG150A
ISDN2 Access Equipment
Description
This Plant Group (PG) captures the Network Terminal Equipment (NTE) costs for ISDN2 rentals. It includes Network Terminal
Equipment (NTE) and line cards but excludes drop wire.
Methodology
Allocates directly to 100% to the ISDN2 specific component CL186.
PG151B
Broadband Line Testing Equipment (Openreach)
Description
This Plant Group (PG) contains the Test Access Management Systems (TAMS) and EvoTAMs costs.
These are used to provide remote access facilities on Metallic Path Facility (MPF), Shared Metallic Path Facility (SMPF), Wholesale
Line Rental (WLR) and IPstream circuits for testing towards the customer and into the network. Installed between the Main
Distribution Frame (MDF) and the Digital Subscriber Line Access Multiplexer (DSLAM).
Methodology
Apportioned to the MPF line testing systems component CF187 and EvoTAM testing systems component CF189 based on the
latest available LOP list depreciation figures. For CF189 a further figure for the amount of depreciation is added to account for
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installation of EvoTAMS. This is based on a survey.
It is possible to determine how much depreciation is applicable to the two components based on the Asset Policy Code (APC).
Data Source/s
Latest available Life of Plant (LoP) list
PG151N
Broadband Line Testing Equipment (BT TSO)
Description
This Plant Group (PG) captures the TAMS costs incurred by BT TSO.
Methodology
Allocates to CR187 - Broadband line testing systems and CT134 Co-mingling power & vent based on depreciation within classes
of work (CoW) WTMDF (Wholesale Test Equipment Main Distribution Frames). Depreciation on policy code WMDF is Allocates to
CT134, the remainder is allocated to CR187.
Data Source/s
Latest available Life of Plant (LOP) list.
PG152B
Other Openreach Repairs
Description
This Plant Group (PG) contains the values relating to the equipment that supports the DSL product rentals. DSL is a family of
technologies that provide digital data transmission over the wires of a local telephone network. These lines that provide faster
Internet access to the customer and also allows telephone calls to be made at the same time as Internet usage.
This PG contains all the balance sheet values relating to the equipment that supports the DSL product rentals including Digital
Subscriber Line Access Multiplexer (DSLAM) equipment. This PG also contains the depreciation and maintenance costs on this
equipment as well as overhead type costs such as the accommodation to house equipment etc..
Methodology
Allocates 100% to the SFI (Special Fault Investigations) component CO989.
CO188 onward allocates to Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL) services. It
does not support Local Loop Unbundling (LLU) and Shared Metallic Path Facility (SMPF) as a Service Provider would provide these
activities themselves.
PG152N
DSLAM – Overheads
Description
This PG contains all the balance sheet values relating to the equipment that supports the DSL Product rentals except Digital
Subscriber Line Access Multiplexer (DSLAM) equipment itself. This PG also contains the maintenance costs for this equipment as
well as overhead type costs such as the accommodation to house equipment etc.
Methodology
Allocates 100% to the DSL rentals- specific component CR188.
PG153N
DSLAM – Equipment
Description
This PG contains the balance sheet values relating to the Digital Subscriber Line Access Multiplexer (DSLAM) equipment. This PG
also contains the depreciation cost relating to the DSL equipment. It does not include the maintenance costs on this equipment or
overhead type costs such as the accommodation to house equipment etc. (This is included in PG152N).
Methodology
Allocates 100% to the DSL rentals depreciation - specific component CR189 DSLAM capital / maintenance.
PG170B
Backhaul fibre
Description
This Plant Group (PG) captures the depreciation costs and asset values of the backhaul length elements of the bearers in BT’s Core
Transmission network.
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Combinations of assets in the transmission network (i.e. two bits of electronics joined by fibre and duct) make up what is known as
a “bearer”. The bearers within the network carry circuits that relate to different products and bandwidths. More detail can be
found in Section 9 Data Sources under CTCS (Core Transmission Costing System).
Methodology
The costs and asset values on these PGs are allocated to network components (circuits) based on how the circuits use the different
bearers. The relationship between circuits and bearers is held in CTCS. Extracts from CTCS give us the total length of fibre used by
the circuits over each bearer. Fibre lengths for Ethernet main links are not captured in CTCS but need to pick up some of the costs
of backhaul fibre. The fibre km volumes are taken from Openreach volumes and then included in the CTCS output. Ethernet
circuits have one circuit per fibre therefore allowing the fibre km to be used as the bearer length.
Data Source/s
CTCS and Openreach volumes for Ethernet main links data for Period 6. Management believes this Period is reflective of the full
year.
PG192A
FTTC Copper Tie Cables
Description
This Plant Group captures the balance sheet values and depreciation associated with Next Generation Access ExchangESidecables.
Methodology
Allocates 100% to the NGA Exchange E-Side Copper Capital CL192.
PG197A
FTTC Service Delivery & Development
Description
This Plant Group (PG) captures the costs associated with the Openreach (OR) Next Generation Access (NGA) Fibre to the Cabinet
(FTTC) product.
Methodology
Allocates 100% to the NGA FTTC component CL197 (FTTC development).
PG198A
FTTP Development
Description
This Plant Group (PG) captures the costs associated with the Openreach (OR) Next Generation Access (NGA) Fibre to the Premises
(FTTP) product currently under development.
These costs are identified via a transfer charge made from BT TSO to OR.
Methodology
Allocates 100% to the NGA FTTP component CL198 (FTTP development).
PG213C
Remote Concentrators – Equipment
Description
This Plant Group (PG) captures the cost of constructing, extending and rearranging local UXD5 Exchanges. Types of cost include
pay, depreciation and overheads.
UXD5 exchanges are deployed in rural areas and cater for about 460 Public Switched Telephone Network (PSTN) customers each.
They are in effect mini Local Exchanges (LE).
Methodology
A Modern Equivalent Asset determination using System X and AXE10 equipment is produced. Unit Exchange Digital V5 (UXD5)
volumes are taken from EXPRES and the costs of the building blocks for the equivalent System X and AXE10 exchanges are
calculated. To this the manufacturers’ supplied matrices (a mapping of building blocks to Call Set-Up, Duration, Access and
Common) elements are applied. This is what happens in the LDX and LYX apportionment process. This base was frozen using this
methodology in 2010-11, as the volumes for UXD5 were unlikely to change and investment in the units is less than £200k.
Data Source/s
System X and AXE10 volumes in the network from the EXPRES system.
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PG213M
Remote Concentrators – Maintenance
Description
This Plant Group (PG) captures the maintenance costs for the Calls related element of UXD5 exchange switching.
Methodology
Apportions to the concentractor set-up and duration components based on the capital apportionment of UXD5 Exchange to the
concentrator components. This base was frozen during 2010 – 11, as the volumes for UXD5 were unlikely to change and
investment in the units is less than £200k.
Data Source/s
Capital Apportionment for UXD5’s.
PG216C
Operator Assistance Systems Equipment
Description
This Plant Group (PG) captures the depreciation costs of switching equipment used to support Operator Assistance (OA) calls.
Methodology
This is achieved through a Period 12 Operfile, this is a spreadsheet used to derive apportionment information for Operator and
Directory Assistance costs. The file is a summary of information from a variety of other data sources and is updated monthly on a
cumulative basis
Attribution is carried out as follows:
Call duration information from the central data store (CDS) and Call Statistics Centralisation System (CSCS) is summarised on the
basis of call types. A link is then made between the nature of the call and the type of equipment required to carry it. As this is a
capital base, the initial summary is then allocated to components on the basis of depreciation charges per switch type.
Depreciation is extracted from the Fixed Asset Register.
The Operator Assistance costs are attributed to the following components pro-rata to the call minute volumes:
•
Inland and International OA CO911 and CO912
•
Emergency OA 999 CO919
•
OA non- chargeable CO941
•
Emergency OA 999 non-chargeable CO942
•
Payphones operator assistance non chargeable CO943
Data Source/s
PG216M
•
Inland and International Directory Assistance (DA).
•
CDS.
•
CSCS and Featurenet (from the Powerhouse system).
•
Inland and International Operator Assistance (OA).
•
Call Centre Management Information System (CCMIS).
•
CSCS (for Retail chargeable).
•
6A Report (for Wholesale Chargeable).
•
Fixed Asset download by Accounting Policy Code (APC).
•
Lucent Switch billing system – (this is incorporated into the CDS file that is produced monthly and used to populate the
Operfile).
Operator Assistance Systems Maintenance
Description
This Plant Group (PG) captures the maintenance costs of the switching equipment used to support Operator Assistance (OA) calls
Methodology
This is achieved through a Period 12 Operfile, this being a spreadsheet used to derive apportionment information for Operator
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and Directory Assistance costs. The file is a summary of information from a variety of other data sources and is updated monthly
on a cumulative basis. The costs are attributed on the same basis as the depreciation costs of this equipment (See PG216C), on the
basis that maintenance activity is carried out to support the performance of the switching equipment and can therefore be
regarded as an overhead of the capital/depreciation expenditure incurred. It should therefore be attributed on a consistent basis
with the capital costs.
Data Source/s
PG217E
•
Inland and International Directory Assistance (DA)
•
Central Data Store (CDS).
•
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
•
Inland and International Operator Assistance (OA)
•
Call Centre Management Information System (CCMIS).
•
CSCS (for Retail chargeable).
•
6A Report (for Wholesale Chargeable).
•
Fixed Asset download by Accounting Policy Code (APC)
•
Lucent Switch billing system – (this is incorporated into the CDS file that is produced monthly and is used to populate
the Operfile).
Main Distribution Frames Equipment
Description
This Plant Group (PG) captures the cost of provision, extension, upgrade, replacement, re-arrangement and recovery of Main
Distribution Frames (MDFs).
MDFs are those distribution frames providing direct interface with external circuits terminations (customer or other exchanges).
Methodology
Allocates 100% to Local exchanges general frames equipment CL175.
PG217F
Main Distribution Frames Maintenance
Description
This Plant Group (PG) captures the maintenance cost of Main Distribution Frames (MDFs).
Methodology
Allocates 100% to Local exchanges general frames equipment CL175
PG217Q
LE Frames Capital (Wholesale)
Description
This Plant Group (PG) captures the cost of provision, extension, upgrade, replacement, re-arrangement and recovery of Main
Distribution Frames (MDFs)
Methodology
Allocates 100% to Local exchanges general frames equipment CL175
PG217R
Main Distribution Frames Maintenance (TSO)
Description
This Plant Group (PG) captures the maintenance cost of Main Distribution Frames (MDFs)
Methodology
•
PG227A
Allocates 100% to Local exchanges general frames maintenance (Wholesale) CL176
Advanced Switching Units
Description
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This Plant Group (PG) captures the cost of construction, installation, re-arrangement, recovery and renewal and maintenance of
Advance Service Units (ASUs) equipment and Call Centre DMS100s to provide the platform to support the provision of the Virtual
Private Network Service (VPNS). The VPNS Services being Virtual Private Network (VPN) and Virtual Private Services (VPS). This PG
also captures the maintenance costs of the above types of equipment.
Methodology
Allocates 100% to the Advanced Switching Units component CO227.
PG228A
Signalling Transfer Point (STP) and Edge Link Monitors
Description
This Plant Group (PG) captures the costs of BT’s signalling network, signalling network management system and interconnect
equipment. For example STP and Signalling Point Relay (SPR) switches, Signalling Traffic Management (STMS) equipment, link
monitors and associated equipment (core and edge), on site spares, initial databuild associated with switches, testing apparatus
and initial provision of spares held for changing purposes.
Methodology
Allocates 100% to the Signalling transfer point component CO270.
PG229A
Signalling Point Relay (SPR) and Core Link Monitors
Description
This Plant Group (PG) captures costs of the following signalling equipment: SPR switches and core link monitors, both with
associated on site spares. It also captures the costs of the initial databuild associated with the switches.
The core link monitors and Signalling Point Relay (SPR) switches are both items of signalling equipment used to interface Public
Switched Telephone Network (PSTN) switches with the Intelligent Network (IN)/Common Intelligent Service layer (CISL). The
former provides a signalling assurance function whilst the latter concentrates signalling from the PSTN switches onto the
Intelligent Network/CISL.
Methodology
Costs are allocated to the IN components CISL and Intelligent Contact Manager (ICM) based on the latest available period year to
data CISL and PSTN internal and external call volumes.
The CISL volumes provide the split between select services and the IN/CISL Services whilst the PSTN call volumes are used to
provide the split between the two select services components.
Data Source/s
Cumulative CISL platform volumes and PSTN internal and external call volumes.
PG240A
Analogue Line Testing Equipment
Description
This Plant Group (PG) captures the costs associated with the equipment that supports line testing of Public Switched Telephone
Network (PSTN) and ISDN circuits.
Methodology
Allocates 100% to the PSTN/ISDN line test equipment component CL177.
PG241A
Repair Handling Duty
Description
This Plant Group (PG) captures the costs associated with time spent by Repair Handling Duty staff on Network Operations Items
(NOUs), Remote Operations Items (ROU) and exchange line testing, report raising and records work.
Methodology
The PG is allocated based upon circuit volumes from Openreach management accounts to one Public Switched Telephone
Network (PSTN) component and one Integrated Services Digital Network (ISDN) component.
Data Source/s
Openreach Management Accounts.
PG249C
Main Exchange Line Transmission Equipment
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Description
This Plant Group (PG) captures the capital and depreciation costs of the Main Digital Exchange DLT equipment.
The DLT is part of the Main Exchange System X Processor unit and NGS (Next Generation Switch) that also comprises a switch
block and processor and signalling functional groups, and is used for call setup and call duration.
Main exchanges come in two types, the older System X unit and a newer NGS. System X units are not available and are being
replaced by NGS units.
Methodology
A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to allocate costs for both
types of switch. The NGS is split into its constituent elements: (such as AXD, Regional Processing Group 2 (RPG2) and Group
Switch Services (GSS) etc.) then grouped into DLT, switchblock or processor equipment. Account is taken of the additional
capacity required to accommodate the remaining System X working capacity which is to be consolidated on to the NGS system.
With information from the manufacturers we are able to determine the call setup and duration split for each element. The total
cost of all the elements of all the units in the network is summed and then these costs are analysed into setup and duration splits.
Common costs can be treated by apportioning a fraction to set-up and duration pro-rata on the already existing split however this
makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup component (CO220) and main exchange call duration component (CO221).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to the year-end
(Period 12) PG costs to determine the attribution to components.
However, the DLT cost relating to Other Communications Provider (OCP) has also to be determined. Mid-year port information is
downloaded from the Network Recording System (NRS). This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed and what type of
switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the Intra
Building Circuits component (CR470). The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call set up and main exchange call duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG249M
Main Exchange Line Transmission Repair
Description
This Plant Group (PG) captures the maintenance costs of the Main Digital Exchange DLT equipment.
The apportionment for maintenance uses the capital base (PG249C), to exhaust the costs to components.
Methodologies
A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to allocate costs for both
types of switch. The NGS is split into its constituent elements: (such as AXD, Regional Processing Group 2 (RPG2) and Group
Switch Services (GSS) etc.) then grouped into DLT, switchblock or processor equipment. Account is taken of the additional
capacity required to accommodate the remaining System X working capacity which is to be consolidated on to the NGS system.
With information from the manufacturers we are able to determine the call setup and duration split for each element. The total
cost of all the elements of all the units in the network is summed and then these costs are analysed into setup and duration splits.
Common costs can be treated by apportioning a fraction to set-up and duration pro-rata on the already existing split however this
makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup component (CO220) and main exchange call duration component (CO221).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to the year-end
(Period 12) PG costs to determine the attribution to components.
However, the DLT cost relating to Other Communications Provider (OCP) has also to be determined. Mid-year port information is
downloaded from the Network Recording System (NRS). This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed and what type of
switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the Intra
Building Circuits component (CR470). The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call set up and main exchange call duration.
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Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG252B
Openreach Residual Elimination
Description
This Plant Group (PG) captures the “variance” between the calculated notional revenues associated with Other Communication
Providers (OCPs), and the actual revenues received from OCPs, relating to Openreach activity.
Methodology
Costs, revenues and debtors from this Plant Group (PG) are apportioned 100% to the component CZ252B OR residual elimination.
PG252N
Network Residual Elimination
Description
This Plant Group (PG) captures the “variance” between the calculated notional revenues associated with Other Communication
Providers (OCPs), and the actual revenues received from OCPs relating to Wholesale activity.
Methodology
Costs, revenues and debtors from this Plant Group (PG) are apportioned 100% to the component CZ252N OR residual elimination.
PG254A
Main Digital Exchange - Intelligent Access and Messaging
Description
This Plant Group (PG) captures the depreciation costs of Main Digital exchange intelligent access and messaging equipment to
calls components only.
Methodology
Apportionment to the Call Set-Up components for Local and Main Exchanges is based on the relative number of Local Exchanges
and Main Exchanges in the network sourced from the EXPRES system. Data amendments are more numerous and more time
consuming for Main Exchanges than for Local Exchanges, so each Main Exchange is weighted by a factor determined by a survey
of time spent on Data Amendments. This factor is determined on the basis of the experience and expertise of the data amendment
team, being a management estimate. This gives an estimate of the time and hence relative cost for data amendments on Local
relative to Main Exchanges.
An apportionment to CO260 Cambridge Voice Intelligent Peripherals is made on the basis of minutes for CNA (Change Number
Announcement) relative to minutes for the Televote service and other messaging applications.
Data Source/s
Exchange Planning and Review System (EXPRES).
Data Amendments survey.
Minutes Data from Recorded Information Distribution Equipment (RIDE) - Statistics Data Warehouse (SDW).
PG255B
Main Digital Switchblock
Description
This Plant Group (PG) captures the capital depreciation and maintenance costs of the Main Digital Exchange Switch Block
equipment.
Main exchanges come in two types, the older System X unit and a newer Next Generation Switch (NGS). System X units are not
available and are being replaced by NGS units.
The Switch Block is part of the Main Exchange System X Processor and NGS (Next Generation Switch) unit that also comprises of a
Processor and Digital Line Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to allocate costs for both
types of switch. The NGS is split into its constituent elements: (such as AXD, Regional Processing Group 2 (RPG2) and Group
Switch Services (GSS) etc.) then grouped into DLT, switchblock or processor equipment. Account is taken of the additional
capacity required to accommodate the remaining System X working capacity which is to be consolidated on to the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109) between BT and
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Ericsson. With information from the manufacturers we are able to determine the call setup and duration split for each element.
The total cost of all the elements of all the units in the network is summed and then these costs are analysed into setup and
duration splits. Common costs can be treated by apportioning a fraction to set-up and duration pro-rata on the already existing
split however this makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup component (CO220) and main exchange call duration component (CO221).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to the PG costs
to determine the attribution to components.
However, the DLT cost relating to Other Communications Provider (OCP) has also to be determined. Mid-year port information is
downloaded from the Network Recording System (NRS). This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed and what type of
switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Connections component. The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call set up and main exchange call duration.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
PG257C
Main Exchange Processors Equipment
Description
This Plant Group (PG) captures the capital and depreciation costs of the Main Digital Exchange Processor and Signalling
equipment.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X units are not
available and are being replaced by NGS units.
The processor is part of the Main Exchange System X Processor unit that also comprises a Switch Block and Digital Line
Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to allocate costs for both
types of switch. The NGS is split into its constituent elements: (such as AXD, Regional Processing Group 2 (RPG2) and Group
Switch Services (GSS) etc.) then grouped into DLT, switchblock or processor equipment. Account is taken of the additional
capacity required to accommodate the remaining System X working capacity which is to be consolidated on to the NGS system.
With information from the manufacturers we are able to determine the call setup and duration split for each element. The total
cost of all the elements of all the units in the network is summed and then these costs are analysed into setup and duration splits.
Common costs can be treated by apportioning a fraction to set-up and duration pro-rata on the already existing split however this
makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup component (CO220) and main exchange call duration component (CO221).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to the PG costs
to determine the attribution to components.
However, the DLT cost relating to Other Communications Provider (OCP) has also to be determined. Mid-year port information is
downloaded from the Network Recording System (NRS). This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed and what type of
switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the Intra
Building Circuits component (CR470). The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call set up and main exchange call duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG257M
Main Digital Processor Maintenance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay etc.) maintenance costs of the main digital exchange processor
149
and signalling equipment.
The apportionment for maintenance uses the capital base (PG257C) to exhaust the costs to components.
The processor is part of the main exchange System X processor unit that also comprises a switch block and Digital Line Termination
(DLT) functional groups, and is used for call setup and call duration.
Methodology
A Current Cost Accounting (CCA) approach and a Modern Equivalent Asset (MEA) of the NGS are used to allocate costs for both
types of switch. The NGS is split into its constituent elements: (such as AXD, Regional Processing Group 2 (RPG2) and Group
Switch Services (GSS) etc.) then grouped into DLT, switchblock or processor equipment. Account is taken of the additional
capacity required to accommodate the remaining System X working capacity which is to be consolidated on to the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109) between BT and
Ericsson. With information from the manufacturers we are able to determine the call setup and duration split for each element.
The total cost of all the elements of all the units in the network is summed and then these costs are analysed into setup and
duration splits. Common costs can be treated by apportioning a fraction to set-up and duration pro-rata on the already existing
split however this makes no difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup component (CO220) and main exchange call duration component (CO221).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to the PG costs
to determine the attribution to components.
However, the DLT cost relating to Other Communications Provider (OCP) has also to be determined. Mid-year port information is
downloaded from the Network Recording System (NRS). This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed and what type of
switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the Intra
Building Circuits component (CR470). The residual amount is then re-based so that the new total equals 100% and pointed to
main exchange call set up and main exchange call duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG260A
Intelligent Network Platform
Description
This Plant Group (PG) captures the costs of all equipment and associated costs incurred as part of provision, extension, rearrangement and recovery of Intelligent Contact Manager equipment excluding Alfredo equipment. It also includes Intelligent
Peripherals (IP) Service Control Point (SCP) equipment, on site spares, initial databuild associated with switches, Testing Apparatus
and initial provision of spares held for changing purposes.
Methodology
Apportioned 100% to the Intelligent Contact Manager component CO261.
PG276A
Common Intelligence Service Layer (CISL)
Description
This Plant Group (PG) captures the cost of the CISL platform that supports basic and advanced number translation services (for
example 0800, 0845 etc.) into a geographic number (for example 020 7 234 5678) so that the call can then be routed by the
Public Switched Telephony Network (PSTN) switches. Services on this platform are migrating from the Cambridge and CoreIN
platforms (PG263/266).
Costs associated with the PG are:
•
Supervising contractors on installation.
•
On site spares.
•
Testing apparatus and initial provision of spares held for changing purposes.
Methodology
Costs from this PG are apportioned between the Cambridge / CISL infrastructure component CO266, the Intelligent Contact
Manager CO261, the OR Network Features (internal) component CO291 and the OR Network Features – external component
CO290 based on call volumes from the CISL platform and Powerhouse volumes.
150
Data Source/s
Cumulative CISL platform volumes and the split of PSTN internal and external call volumes.
PG280C
Local Exchange Processor (AXE10) Equipment
Description
This Plant Group (PG) captures the costs relating to the AXE10 Digital Local Exchange Processor and Signalling. The switch
comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange Processor, is calculated by taken a modern equivalent asset
(MEA) value of the components that make up the processor, the depreciation of which is then calculated. Maintenance costs for
the processor are then weighted across the DLT, Switchblock and processor. The depreciation and maintenance costs combined
are then compared with the depreciation for the other PG’s this CoW allocates to. The value of the depreciation of the processor
as a percentage of the total depreciation of all PG’s is the amount allocated to this PG.
The aggregate cost within the network of each of the elements of the switch is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme (LEMP). The LEMP contract is indicative of normal course of business.
It sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement function.
The elements of the processor are assigned into three main blocks:
•
Digital Line Termination (DLT).
•
Switch Block.
•
Processor and Signalling.
We are concerned with Processor and Signalling only for this PG. Based on advice from switching suppliers, the function of each
switch element is analysed between call set up and call duration. This advice showing an analysis between set-up and duration will
not change on a year by year basis as the building elements of the asset remain a constant. Certain elements support both
functions.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
However, the processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of ten System X and ten AXE 10 Local Exchanges and analysed into whether the record type is Select
Service driven or not.
Billing record types:
Record Types 34 were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for ISDN as for analogue calls.
Billing records were extracted for one whole week during the year at 20 Digital Local Exchange (DLE) sites in the country. The
number of processor instructions was derived for call usage types to derive a weighted processor average.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT. The Retail fraction is pointed at CO291 OR Network
Features – internal and the Wholesale fraction at CO290 OR Network Features - external.
The quantity of processor cost relating to DLE call set up and call duration is then re-based so that the new total equals 100%.
Data Source/s
NRS
EXPRES.
151
Billing Records.
ORBIT.
PG280M
Local Exchange Processor (AXE10) Maintenance
Description
This Plant Group (PG) captures the costs relating to the maintenance of AXE10 Digital Local Exchange (DLE) Processor and
Signalling.
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange Processor and signalling maintenance, is calculated by taken a
modern equivalent asset (MEA) value of the components that make up the processor, the depreciation of which is then calculated.
Maintenance costs for the processor are then weighted across the DLT, switchblock and processor. The depreciation and
maintenance costs combined are then compared with the depreciation for the other PG’s this CoW allocates to. The value of the
depreciation of the processor as a percentage of the total depreciation of all PG’s is the amount allocated to this PG. This
percentage is then weighted by the number of engineer hours spent repairing equipment used specifically for calls.
The aggregate cost within the network of each of the elements of the switch is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme (LEMP). The LEMP contract is indicative of normal course of business.
It sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement function.
The elements of the processor are assigned into three main blocks:
•
Digital Line Termination (DLT).
•
Switch Block.
•
Processor and Signalling.
We are concerned with Processor and Signalling only for this PG. Based on advice from switching suppliers, the function of each
switch element is analysed between call set up and call duration. This advice showing an analysis between set-up and duration will
not change on a year by year basis as the building elements of the asset remain a constant. Certain elements support both
functions.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
However, the processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of ten System X and ten AXE10 Local Exchanges and analysed into whether the record type is Select
Service driven or not.
Billing record types:
Record Types 34 were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for ISDN as for analogue calls.
Billing records were extracted for one whole week during the year at 20 Digital Local Exchange (DLE) sites in the country. The
number of processor instructions was derived for call usage types to derive a weighted processor average.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT. The Retail fraction is pointed at CO291 OR Network
Features - internal and the Wholesale fraction at CO290 OR Network Features – external.
The quantity of processor cost relating to DLE call set up and call duration is then re-based so that the new total equals 100%.
Data Source/s
152
NRS.
EXPRES.
Billing Records.
ORBIT
PG281C
Local Exchange Line Transmission (AXE10) Eqpt
Description
This Plant Group (PG) captures the costs and balance sheet of AXE10 DLT, which flow through classes of work (CoW) LYX via
PDTLYX
The DLT switch comprises both call set-up and call duration functionality.
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange DLT, is calculated by taken a modern equivalent asset (MEA)
value of the components that make up the processor, the depreciation of which is then calculated. Maintenance costs for the
processor are then weighted across the DLT, Switchblock and processor. The depreciation and maintenance costs combined are
then compared with the depreciation for the other PG’s this CoW allocates to. The value of the depreciation of the processor as a
percentage of the total depreciation of all PG’s is the amount allocated to this PG.
The aggregate cost within the network of each of these switch elements is determined on the basis of LEMP2 contract prices i.e.
the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local Exchange Modernisation
Programme. It set out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement
function. The LEMP2 contract is indicative of normal course of business and covers both Local and System X main Exchanges
based on advice from switching suppliers. The function of each switch element is analysed between call set-up and call duration.
This advice showing an analysis between set-up and duration will not change on a year by year basis as the building elements of
the asset remain a constant.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed to
concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and Local Exchange Processor
Duration CO210. All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated
each year and any changes mean that historic data is re-based to accommodate these.
However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
Mid-year port information is downloaded from the NRS. This provides the origin and destination of each 2Mbit/s port on every
local, trunk and main exchange. This data can then be manipulated to analyse where the ports are pointed, what type of switch, of
which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total is driven to CR470. This percentage is then
pointed at the Interconnect Rentals component. The residual amount is then re-based so that the new total equals 100% and
point to Local Exchange Call Set-Up and Local Exchange Call Duration.
Data Source/s
Network Records System (NRS).
Exchange Planning and Review System (EXPRES).
Billing records.
PG281M
Local Exchange Line Transmission (AXE10) Mtce
Description
This Plant Group (PG) captures the costs relating to the maintenance of AXE10 Digital DLE DLT.
The DLT switch comprises both call set-up and call duration functionality.
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange DLT maintenance, is calculated by taken a modern equivalent
asset (MEA) value of the components that make up the processor, the depreciation of which is then calculated. Maintenance costs
for the processor are then weighted across the DLT, Switchblock and processor. The depreciation and maintenance costs
combined are then compared with the depreciation for the other PG’s this CoW allocates to. The value of the depreciation of the
processor as a percentage of the total depreciation of all PG’s is the amount allocated to this PG. This percentage is then weighted
by the number of engineer hours spent repairing equipment used specifically for calls.
The aggregate cost within the network of each of the elements of the switch is determined on the basis of Local Exchange
153
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme (LEMP). The LEMP contract is indicative of normal course of business.
It sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement function.
The elements of the processor are assigned into three main blocks:
•
Digital Line Termination (DLT).
•
Switch Block.
•
Processor and Signalling.
We are concerned with Processor and Signalling only for this PG. Based on advice from switching suppliers, the function of each
switch element is analysed between call set up and call duration. This advice showing an analysis between set-up and duration will
not change on a year by year basis as the building elements of the asset remain a constant. Certain elements support both
functions.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
However, the processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of ten System X and ten AXE10 Local Exchanges and analysed into whether the record type is Select
Service driven or not.
Billing record types:
Record Types 34 were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one week during the year at 20 Digital Local Exchange (DLE) sites in the country. The number of
processor instructions was derived for call usage types to derive a weighted processor average.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using Period 8 OR management accounts (these draw on a number of volume sources
e.g. Atlantis and Hyperion). The Retail fraction is pointed at CO291 OR Network Features - internal and the Wholesale fraction at
CO290 OR Network Features - external.
The quantity of processor cost relating to LE call set up and call duration is then re-based so that the new total equals 100%.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
Billing records.
PG282A
Local Exchange Switch Block (AXE10)
Description
This Plant Group (PG) captures cost and balance sheet costs of AXE10 Digital LE Switch Blocks.
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange Switchblock, is calculated by taken a modern equivalent asset
(MEA) value of the components that make up the processor, the depreciation of which is then calculated. Maintenance costs for
the processor are then weighted across the DLT, Switchblock and processor. The depreciation and maintenance costs combined
are then compared with the depreciation for the other PG’s this CoW allocates to. The value of the depreciation of the processor
as a percentage of the total depreciation of all PG’s is the amount allocated to this PG.
The aggregate cost within the network of each of these switch elements is determined on the basis of LEMP2 contract prices i.e.
the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local Exchange Modernisation
154
Programme. It set out the contract prices for the various switch elements and is negotiated with suppliers by BT’s procurement
function. The LEMP2 contract is indicative of normal course of business and covers both Local and System X main Exchanges
based on advice from switching suppliers. The function of each switch element is analysed between call set-up and call duration.
This advice showing an analysis between set-up and duration will not change on a year by year basis as the building elements of
the asset remain a constant.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed to
concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and Local Exchange Processor
Duration CO210). All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated
each year and any changes mean that historic data is re-based to accommodate these.
However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
Mid-year port information is downloaded from the NRS. This provides the origin and destination of each 2Mbit/s port on every
Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of switch,
of which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total is driven to CR470. This percentage is then
pointed at the Interconnect Rentals component. The residual amount is then re-based so that the new total equals 100% and
point to Local Exchange Call Set-Up and Local Exchange Call Duration.
Data Source/s
NRS.
EXPRES.
PG283A
Local Exchange Conc (AXE10) Call set-up
Description
This Plant Group (PG) captures the costs and balance sheet relating to AXE10 DLE Digital Concentrator Call Set-Up.
These assets comprise both call set-up and call duration functionality. The PG contains both Capital and Maintenance costs
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange Concentrator Set-Up, is calculated by taken a modern
equivalent asset (MEA) value of the components that make up the concentrator, the depreciation of which is then calculated.
Maintenance costs for the concentrator are then weighted across the other elements that make up the concentrator based on a
percentage of the number of channels they use that make up the concentrator. Common costs are also split across the plant
groups for call set-up / call duration and access costs by pre-defined percentages set by the manufacturers. The depreciation,
maintenance and common costs combined are then compared with the depreciation for the other PG’s this CoW allocates to. The
value of the depreciation of the concentrator as a percentage of the total depreciation of all PG’s is the amount allocated to this
PG.
The amount of concentrator usage for Select Service calls has to be determined. An extract of the Billing Call Record information is
gathered from a sample of ten System X Local Exchanges and analysed into whether the record type is Select Service driven or not.
Only RT22 makes use of the Concentrator Duration element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 is ignored in this calculation on the assumption that the Select Services to ordinary calls without Select Services is in the
same ratio for ISDN as for Analogue calls.
Billing Records are generated only for outgoing calls and do not represent all of the concentrator call set-up capacity. The total
amount of Select Service related concentrator usage is further refined relative to the quantity of Originating Calls and Own
Exchange Calls in relation to the total.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT. The Retail fraction is pointed at CO290 OR Network
Features - external and the Wholesale fraction at CO291 OR Network Features - internal.
The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO214 Local Exchange Concentrator Set-Up.
155
Data Source/s
Billing Records obtained from a sample of ten AXE10 and ten System X Local Exchange.
ORBIT.
PG284A
Local Exchange Conc (AXE10) Call Duration
Description
This Plant Group (PG) captures the costs and balance sheet relating to AXE10 DLE Digital Concentrator Call Duration. The switch
comprises both concentrator and processor functionality, and is used for call set-up and call duration.
Methodology
The class of work (CoW) to PG allocation for AXE10 Local Exchange Concentrator Duration, is calculated by taken a modern
equivalent asset (MEA) value of the components that make up the concentrator, the depreciation of which is then calculated.
Maintenance costs for the concentrator are then weighted across the other elements that make up the concentrator based on a
percentage of the number of channels they use that make up the concentrator. Common costs are also split across the plant
groups for call set-up / call duration and access costs by pre-defined percentages set by the manufacturers. The depreciation,
maintenance and common costs combined are then compared with the depreciation for the other PG’s this CoW allocates to. The
value of the depreciation of the concentrator as a percentage of the total depreciation of all PG’s is the amount allocated to this
PG.
The amount of concentrator usage for Select Service calls has to be determined.
A sample extract of Billing Call Record information is gathered from a sample of ten System X local and ten AXE10 Local
Exchanges and analysed into whether the record type is Select Service driven or not.
Only RT22 makes use of the Concentrator Duration element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 record types are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for ISDN as for Analogue calls.
Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call set-up capacity.
The total amount of Select Service related concentrator usage is further refined relative to the quantity of Originating Calls and
Own Exchange Calls in relation to the total which also includes Call Terminating and DLE Transit.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT. The retail fraction is pointed at CO290 OR Network
Features - external and the wholesale fraction at CO291 OR Network Features - internal. The residual quantity of concentrator
cost relating to Call Set-Up is pointed to CO215 LE Concentrator Duration. The PG contains both capital and maintenance costs.
Data Source/s
Billing Records.
ORBIT
PG285C
Local Exchange Processor (Sys X) Equipment
Description
This Plant Group (PG) captures the costs and balance sheet relating to System X Digital DLE Processor and Signalling which flow
through from classes of work (CoW) LDX via PDTSYSXD.
The costs are identified by the CoW to PG exhaustion process. This enables the relative proportions of concentrator and processor
costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The LE processor is analysed into its constituent elements:
156
•
Flexible Voice Platforms.
•
Alarm Utility Subsystems.
•
Network Interface Subsystems.
•
Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mbit/s switch ports and the number of signalling channels) actually present in the BT Network, as shown in Exchange Planning
and Review System (EXPRES) and Processor Utilisation and Loading of Switch Equipment (PULSE).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of each
type for the purposes of this analysis.
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded on a switch
element-by-element basis, and it would not otherwise be possible to determine the relative split between set up and duration
costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme which set out the contract prices for the various switch elements. It
sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s Procurement function. The
LEMP2 contract is indicative of normal course of business and covers both Local and System X Main Exchanges.
The elements of the processor are assigned into three main blocks:
•
Digital Line Termination (DLT).
•
Switch Block.
•
Processor and Signalling.
We are concerned with the Processor and Signalling only for this PG.
Based on advice from switching suppliers, the function of each switch element is analysed between call set up and call duration.
This advice showing an analysis between set-up and duration will not change on a year by year basis as the building elements of
the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from NRS and EXPRES)
Unit cost (from LEMP2)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
£
B
AxB=C
Utilisation
Setup
%
Duration
X
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG285C_v1
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
These percentages are then weighted for the relative proportion of the PG’s total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to processor set up CO212 and processor duration CO210).
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
However, the Processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of ten System X Local Exchanges (Data Source/s: Billing Records) and ten AXE10 Local Exchanges then
analysed into whether the record type is Select Service driven or not.
157
RT34s are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select Services is in the
same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at twenty Digital LE sites in the country.
The number of processor instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and therefore do not represent all of the processing capacity. The total
amount of Select Service related processor usage is further refined relative to the quantity of Originating Calls and Own Exchange
Calls relative to the total which also includes Call Terminating any Tandem traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. The quantity of processor cost
relating to LE call set up and call duration is then re-based so that the new total equals 100%. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT. The retail fraction is pointed at CO290 OR Network
Features - external and the wholesale fraction at CO291 OR Network Features - internal.
The signalling usage and cost relating to other operators has yet to be determined. Information from Network Recording System
(NRS) is downloaded showing destinations including those relevant to Other Operators and compared to the total. Signalling
costs form part of the PG total costs but the separate signalling cost is clearly identifiable so on this basis an apportionment is
made from this PG to CR470 Intra Building Circuits (Rentals).
Data Source/s
EXPRES.
Billing Records.
NRS.
ORBIT
PG285M
Local Exchange Processor (Sys X) Maintenance
Description
This Plant Group (PG) captures the cost and balance sheet relating to the maintenance of System X Digital Local Exchange (DLE)
Processor and Signalling.
The costs are identified by the CoW to PG exhaustion process. This enables the relative proportions of concentrator and processor
costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The LE processor is analysed into its constituent elements:
•
Flexible Voice Platforms.
•
Alarm Utility Subsystems.
•
Network Interface Subsystems.
•
Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mbit/s switch ports and the number of signalling channels) actually present in the BT Network, as shown in Exchange Planning
and Review System (EXPRES) and Processor Utilisation and Loading of Switch Equipment (PULSE).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of each
type for the purposes of this analysis.
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded on a switch
element-by-element basis, and it would not otherwise be possible to determine the relative split between set up and duration
158
costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme which set out the contract prices for the various switch elements. It
sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s Procurement function. The
LEMP2 contract is indicative of normal course of business and covers both Local and System X Main Exchanges.
The elements of the processor are assigned into three main blocks:
•
Digital Line Termination (DLT).
•
Switch Block.
•
Processor and Signalling.
We are concerned with the processor and signalling only for this PG.
Based on advice from switching suppliers, the function of each switch element is analysed between call set up and call duration.
This advice showing an analysis between set-up and duration will not change on a year by year basis as the building elements of
the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from NRS and EXPRES)
Unit cost (from LEMP2)
Total Cost
1
2
3
etc
Total 1+2+3 etc
A
£
B
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG285C_v1
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the cost of those
functions pro-rata to their unloaded costs:
These percentages are then weighted for the relative proportion of the PG’s total cost represented by processor costs as opposed
to concentrator costs and are used to attribute costs to processor set up CO212 and processor duration CO210).
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
However, the Processor usage of Select Service calls has also to be determined. An extract of billing call record information is
gathered from a sample of ten System X Local Exchanges (Data Source/s: Billing Records) and ten AXE10 Local Exchanges then
analysed into whether the record type is Select Service driven or not.
RT34s are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select Services is in the
same ratio for ISDN as for analogue calls.
Billing records were extracted for one week during the year at 20 DLE sites in the country.
The number of processor instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and therefore do not represent all of the processing capacity. The total
159
amount of Select Service related processor usage is further refined relative to the quantity of Originating Calls and Own Exchange
Calls relative to the total which also includes Call Terminating any Tandem traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. The quantity of processor cost
relating to LE call set up and call duration is then re-based so that the new total equals 100%. This is further split into Select
Services relating to Wholesale and Retail by using voumes from ORBIT. The retail fraction is pointed at CO290 OR Network
Features - external and the wholesale fraction at CO291 OR Network Features – internal.
The signalling usage and cost relating to other operators has yet to be determined. Information from Network Recording System
(NRS) is downloaded showing destinations including those relevant to Other Operators and compared to the total. Signalling
costs form part of the PG total costs but the separate signalling cost is clearly identifiable so on this basis an apportionment is
made from this PG to CR470 Intra Building Circuits (Rentals).
Data Source/s
EXPRES.
Billing Records.
NRS.
ORBIT
PG286C
Local Exchange Line Transmission (Sys X) Eqpt
Description
This Plant Group (PG) captures the costs and balance sheet relating to the System X Digital DLE DLT.
The switch comprises both concentrator and processor functionality and is used for call set-up and call duration.
Methodology
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:
•
Host Core.
•
C7 Signalling Links.
•
2Mbit/s Systems.
•
Miscellaneous.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mbit/s switch ports and the number of signalling channels) actually present in the BT Network, as shown in Network Records
System (NRS) and Processor Utilisation and Loading of Switch Equipment (PULSE).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity if the switching functionality were optimally dimensioned. This gives the number of switch elements of each
type for the purposes of this analysis. It is necessary to carry out this step in the process as switching assets is not always purchased
and recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative split between
set-up and duration costs.
The aggregate cost within the network of each of element within the switch is determined on the basis of LEMP2 contract prices
i.e. the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local Exchange Modernisation
Programme. It set out the contract prices for the various switch elements and was negotiated with suppliers by BT’s procurement
function. The LEMP2 contract is indicative of normal course of business and covers both local and System X main Exchanges.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set-up and call
duration. This advice showing an analysis between set-up and duration will not change on a year by year basis as the building
elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
160
Switch Element
2
1
£/%
3
etc
Total 1+2+3 etc
A
Volume (from NRS and EXPRES)
Unit cost (from LEMP2)
£
B
Total Cost
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG286C_v1
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed to
concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and Local Exchange Processor
Duration CO210. However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
Mid-year port information is downloaded from NRS. This provides the origin and destination of each 2Mbit/s port on every Local,
Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of switch, of
which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Rentals component CO470. The residual amount is then re-based so that the new total equals 100% and is pointed
to Local Exchange Call Set-Up and LE Call Duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG286M
Local Exchange Line Transmission (Sys X) Mtce
Description
This Plant Group (PG) captures the costs and balance sheet relating to the maintenance of System X Digital Local Exchange (LE)
Digital Line Termination (DLT).
The switch comprises both concentrator and processor functionality and is used for call set-up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator CO214 LE Concentrator Set-Up and
CO215 LE Concentrator Duration. The costs are identified by the classes of work (CoW) to PG exhaustion process. This enables the
relative proportions of concentrator and processor costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:
•
Host Core.
•
C7 Signalling Links.
•
2Mbit/s Systems.
•
Miscellaneous.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mbit/s switch ports and the number of signalling channels) actually present in the BT Network, as shown in Network Records
System (NRS).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity. It is necessary to carry out this step in the process as switching assets is not always purchased and recorded
on a switch element-by-element basis. Otherwise it would not be possible to determine the relative split between set-up and
duration costs.
The aggregate cost within the network of each of these switch element is determined on the basis of LEMP2 contract prices i.e.
161
the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local Exchange Modernisation
Programme. It set out the contract prices for the various switch elements and was negotiated with suppliers by BT’s procurement
function. The LEMP2 contract is indicative of normal course of business and covers both local and System X main Exchanges.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set-up and call
duration. This advice showing an analysis between set-up and duration will not change on a year by year basis as the building
elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below:
Switch Element
£/%
Volume (from NRS and EXPRES)
1
2
3
etc
Total 1+2+3 etc
A
Unit cost (from LEMP2)
£
B
Total Cost
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG286C_v1
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed to
concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and LE Processor Duration CO210.
However, the DLT cost relating to Other Communications Providers (OCPs) also needs to be determined.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated each year and any
changes mean that historic data is re-based to accommodate these.
Mid-year port information is downloaded from NRS. This provides the origin and destination of each 2Mbit/s port on every Local,
Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are pointed, what type of switch, of
which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed at the
Interconnect Rentals component CO470. The residual amount is then re-based so that the new total equals 100% and is pointed
to LE Call Set-Up and Local Exchange Call Duration.
Data Source/s
NRS.
Exchange Planning and Review System (EXPRES).
PG287A
Local Exchange Switch Block (AXE10)
Description
This Plant Group (PG) captures the costs and balance sheet relating to the System X Digital Local Exchange Switch Block.
The switch comprises both concentrator and processor functionality, and is used for call set-up and call duration. The concentrator
call related costs are attributed wholly to the local exchange concentrator components CO214 Local Exchange Concentrator SetUp and CO215 Local Exchange Concentrator Duration. The costs are identified by the classes of work (CoW) to PG exhaustion
process. This enables the relative proportions of concentrator and processor costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:
•
Flexible Voice Platforms.
•
Alarm Utility Subsystems.
162
•
Network Interface Subsystems.
•
Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the number of
2Mbit/s switch ports and the number of signalling channels) actually present in the BT Network, as shown in Exchange Planning
and Review System (EXPRES) and NRS (Network Recording System).
The next step is to determine the number of switches and switching elements within each switch that would be required to
provide such capacity. It is necessary to carry out this step in the process as switching assets are not always purchased and
recorded on a switch element-by-element basis. Otherwise it would not be possible to determine the relative split between setup and duration costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local Exchange
Modernisation Programme2 (LEMP2) contract prices i.e. the volume of each element is multiplied by the unit cost of each
element. LEMP2 was the Local Exchange Modernisation Programme. It set out the contract prices for the various switch elements
and is negotiated with suppliers by BT’s procurement function. The LEMP2 contract is indicative of normal course of business and
covers both Local and System X Main Exchanges.
The elements of the processor are assigned into four main blocks. Digital Line Termination (DLT), Switch Block, Processor and
Signalling. For this PG we are only concerned with the switch block.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set up and call duration.
Certain elements support both functions. This overall process is illustrated below:
Switch Element
£/%
1
Volume (from NRS and EXPRES)
2
3
etc
Total 1+2+3 etc
A
Unit cost (from LEMP2)
£
B
Total Cost
£
AxB=C
%
X
Utilisation
Setup
Duration
Y
Both
Z
Cost of call setup functionality
£
CxX
P
Cost of call duration functionality
£
CxY
Q
Cost of elements supporting both
functions
£
CxZ
R
Diagram1_PG2867A_v1
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs as opposed to
concentrator costs and are used to attribute costs to Local Exchange processor set up CO212 and processor duration CO210.
The base is currently frozen.
Data Source/s
NRS.
EXPRES.
PG288A
Local Exchange Concentrator (Sys X) Call Set-Up
Description
This Plant Group (PG) captures the costs and balance sheet relating to the System X Digital Concentrator Call Set-Up which flows
from classes of work (CoW) LDX via PDTSYSXD. The switch comprises both concentrator and processor functionality, and is used
for call set-up and call duration.
Methodology
The processor call related costs (DLT, Switch Block and Processor and Signalling) are attributed to CO210 Local Exchange
processor duration and CO212 LE Processor set-up. Additional apportionment is made from the Local Exchange DLT PG to
Interconnect Connections and from Local Exchange Processor to Chargeable Services (Select Services). The costs are identified by
the CoW to PG exhaustion process. This enables the relative proportions of concentrator and processor costs to be identified.
The attribution of Concentrator Call Set-Up costs follows a number of steps and the procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined. An extract of billing call record information is
gathered from a sample of ten System X Local Exchanges and ten AXE10 Local Exchanges analysed into whether the record type is
Select Service driven or not.
163
Only RT22s make use of the Concentrator Set-Up element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 record types were ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for ISDN as for Analogue calls.
Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call set-up capacity.
The total amount of Select Service related concentrator usage is further refined relative to the quantity of Originating Calls and
Own Exchange Calls in relation to the total which also includes Call Terminating and DLE Transit.
The final weighted concentrator usage percentage for Select Services is then applied to the PG. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT The retail fraction is pointed at CO290 OR Network
Features - external and the Wholesale fraction at CO291 OR Network Features - internal.
The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO214 Local Exchange Concentrator Set-Up.
The PG contains both Capital and Maintenance costs.
Data Source/s
Billing Records.
ORBIT.
PG289A
Local Exchange Concentrator (Sys X) Call Duration
Description
This Plant Group (PG) captures costs and balance sheet relating to System X DLE Digital Concentrator Call Duration which flows
from classes of work (CoW) LDX via PDTSYSXD.
The System X switch comprises both concentrator and processor functionality, and is used for call set-up and call duration.
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are attributed to
CO210 Local Exchange processor duration and CO212 LE Processor Set-Up. Additional apportionments are made from the LE DLT
PG to Interconnect Connections and from LE Processor to Chargeable Services (Select Services). The costs are identified by the
CoW to PG exhaustion process.
This enables the relative proportions of concentrator and processor costs to be identified. The attribution of Concentrator Duration
costs follows a number of steps.
The procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined. An extract of billing call record information is
gathered from a sample of ten System X Local Exchanges and ten AXE10 Local Exchanges analysed into whether the record type is
Select Service driven or not.
Only RT22s make use of the Concentrator Duration element of the switch assets and the fraction of these compared to the total
(RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services. RT34s are ignored in this
calculation on the assumption that the Select Services to ordinary calls without Select Services is in the same ratio for ISDN as for
Analogue calls. Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call setup capacity.
164
The total amount of Select Service related concentrator usage is further refined relative to the quantity of Originating Calls and
Own Exchange Calls in relation to the total which also includes Call Terminating and Call Originating.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further split into Select
Services relating to Wholesale and Retail by using volumes from ORBIT. The retail fraction is pointed at CO290 OR Network
Features - external and the wholesale fraction at CO291 OR Network Features (Internal). The residual quantity of concentrator
cost relating to Call Set-Up is pointed to CO215 LE Concentrator Duration. The PG contains both Capital and Maintenance costs.
Data Source/s
Billing Records.
ORBIT
PG300T
PPC Point of Handover
Description
This Plant Group (PG) captures costs and balance sheet associated with providing customer sited point of handover equipment.
Methodology
Allocates 100% to the Point of Handover Electronics component CO379.
PG301T
SDH Tier Equipment
Description
This Plant Group (PG) captures depreciation costs and asset values of the link element of Global Backhaul bearers. Bearers provide
the transmission capability for the circuits that support BT’s Products.
Global Backhaul bearers are at Tier 0 (zero) in the core transmission network. This tier is associated with international circuits
between Digital International Switching Centres (DISCs) and Satellite earth stations as well as international private circuits.
Methodology
Allocates 100% to the ISC to Frontier Link component CB367.
PG311T,
PG313T,
PG315T,
PG321T,
PG323T,
PG325T,
PG331T,
PG333T,
PG335T,
PG341T,
PG343T,
PG345T,
PG351T,
PG353T,
PG355T,
PG359T,
PG381T,
PG383T,
PG385T
SDH Tier Equipment
Description
These Plant Groups (PGs) capture the depreciation, maintenance and other overhead (e.g. accommodation) costs and asset values
associated with the link elements of SDH and MSH (Marconi Synchronous Hierarchy) bearers.
SDH and MSH are types of technology that form part of BT’s Core Transmission network. Combinations of these assets (i.e. two
bits of electronics joined by fibre and duct) make up what is known as a “bearer”. The bearers within the network carry circuits
that relate to different products and bandwidths. More detail can be found in Section 9 Data Sources under CTCS (Core
Transmission Costing System).
PGs exist to differentiate the different tiers of bearers in the network and their transmission rate.
•
Tier 0 is the highest level in the network, intended to handle international traffic.
•
Tier 1 is the long haul intricate or backbone network. It consists of 4/1 and 4/4 cross connect switches. A cell or Supercell is
an additional ring between Tiers 1 and 2.
•
Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two separate Tier
1 nodes.
•
Tier 3 is the level used for Booster schemes.
•
Tier 4 is the access network for SDH Customers.
MSH is the high capacity platform to cater for traffic at 140Mbit/s and above.
SDH bearers have various transmission rates as indicated by the Synchronous Transport Module (STM).
•
STM1 – 155Mbit/s. [MSH STM1 Equipment]
•
STM4 – 622Mbit/s.
•
STM16 – 2.48Gbit/s. [MSH STM16 Equipment]
•
STM64 – 10Gbit/s. [MSH STM64 Equipment]
165
Methodology
The costs and asset values on these PGs are allocated to network components (circuits) based on how the circuits use the
bandwidth of a bearer. The relationship between circuits and bearers is held in CTCS. Extracts from CTCS give us the data required
to derive an allocation, specifically:
•
The bearer equipment that a circuit ‘Hits’ along its route.
•
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. The cost of an individual bearer is therefore apportioned across all the segments of
circuits carried by the bearer.
The apportionment of cost is based on a factored volume which is calculated by factoring the raw volume (circuit-bearer
equipment hits) figure by a usage factor:
The usage factor is the proportion of the total bandwidth of a bearer used by a circuit. For example a 155Mbit/s SDH bearer can
support 63 2Mbit/s circuits, 3 34Mbit/s circuits or a single 155Mbit/scircuit so a 2Mbit/s circuit would have a usage factor of one
63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a third.
PG341T, PG343T and PG345T relate to the Tier 4 bearers and need to be split between both Core and Access components.
However in CTCS we only see the data for Core components. To calculate the split between the Core and Access elements we the
use the output of the PDTSDH. To derive an appropriate allocation to Access components we take the PG to Component data
from the Access Rentals model. This is to allocate the costs of electronics in the last serving exchange to the Local end component.
Data Source/s
CTCS data for Period 6. Management believes this Period to be reflective of the full year.
For PG341T, PG343T and PG345T we also use output from PDTSDH base and Access Rentals model.
PG350N
Core Fibre
Description
This Plant Group (PG) captures the depreciation costs and asset values of the core length elements of the bearers in BT’s Core
Transmission network.
Combinations of assets in the transmission network (i.e. two bits of electronics joined by fibre and duct) make up what is known as
a “bearer”. The bearers within the network carry circuits that relate to different products and bandwidths. More detail can be
found in Section 9 Data Sources under CTCS (Core Transmission Costing System).
Methodology
The costs and asset values on these PGs are allocated to network components (circuits) based on how the circuits use the different
bearers. The relationship between circuits and bearers is held in CTCS. Extracts from CTCS give us the total length of fibre used by
the circuits over each bearer.
Data Source/s
CTCS data for Period 6. Management believes this Period is reflective of the full year.
PG361T,
PG365T,
PG367T,
PG371T,
PG373T,
PG375T,
PG377T,
PG379T,
PG399T
Plesiochronous Digital Hierarchy (PDH) Bearer Link
Description
These Plant Groups (PGs) capture the depreciation, maintenance and other overhead costs and asset values of the link elements of
PDH bearers. Bearers provide the transmission capability for the circuits that support BT’s Products.
PDH technology forms part of BT’s Core Transmission network. Combinations of assets in the transmission network (i.e. two bits of
electronics joined by fibre and duct) make up what is known as a “bearer”. The bearers within the network carry circuits that relate
to different products and bandwidths. More detail can be found in Section 9 Data Sources under CTCS (Core Transmission Costing
System).
PDH bearers have various transmission rates and can use an optical or metallic path. The variations are represented in by the
different PGs.
•
2Mbit/s. [PDH Metal and PDH Optical]
•
8Mbit/s. [PDH Optical]
•
34Mbit/s. [PDH Metal and PDH Optical]
•
140Mbit/s. [PDH Metal and PDH Optical]
166
•
565Mbit/s. [PDH Optical]
Methodology
The costs and asset values on these PGs are allocated to network components (circuits) based on how the circuits use the
bandwidth of a bearer. The relationship between circuits and bearers is held in CTCS. Extracts from CTCS give us the data required
to derive an allocation, specifically:
•
The bearer equipment that a circuit ‘Hits’ along its route.
•
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. The cost of an individual bearer is therefore apportioned across all the segments of
circuits carried by the bearer.
The apportionment of cost is based on a factored volume which is calculated by factoring the raw volume (circuit-bearer
equipment hits) figure by a usage factor:
The usage factor is the proportion of the total bandwidth of a bearer used by a circuit. For example a 155Mbit/s SDH bearer can
support 63 2Mbit/s circuits, 3 34Mbit/s circuits or a single 155Mbit/s circuit so a 2Mbit/s circuit would have a usage factor of one
63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a third.
Data Source/s
CTCS Database for Period 6 Management believes this Period to be reflective of the full year.
PG391T,
PG393T,
PG395T
Plesiochronous Digital Hierarchy (PDH) Radio Bearer Link
Description
These Plant Groups (PGs) capture the depreciation costs and asset values of the link elements of PDH Radio bearers.
Radio Bearers provide the core microwave radio transmission capability for the circuits that support BT’s Products.Radio bearers
are predominantly used for high capacity, city to city routes (e.g. London to Birmingham) and in inaccessible areas (such as
remote parts of Scotland).
PDH Radio bearers have various transmission rates which are represented by the different PGs:
•
8Mbit/s.
•
34Mbit/s.
•
140Mbit/s.
Methodology
The costs and asset values on these PGs are allocated to network components (circuits) based on how the circuits use the
bandwidth of a bearer. The relationship between circuits and bearers is held in CTCS. Extracts from CTCS give us the data required
to derive an allocation, specifically:
•
The bearer equipment that a circuit ‘Hits’ along its route.
•
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together with the
length of these segments.
In general a bearer can support many circuits. The cost of an individual bearer is therefore apportioned across all the segments of
circuits carried by the bearer.
The apportionment of cost is based on a factored volume which is calculated by factoring the raw volume (circuit-bearer
equipment hits) figure by a usage factor:
The usage factor is the proportion of the total bandwidth of a bearer used by a circuit. For example a 155Mbit/s SDH bearer can
support 63 2Mbit/s circuits, 3 34Mbit/s circuits or a single 155Mbit/s circuit so a 2Mbit/s circuit would have a usage factor of one
63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a third.
Data Source/s
CTCS data for Period 6. Management believes this Period to be reflective of the full year.
PG400T
ACE (Access Control Equipment) / ENA (Equipment Network Access) Core Equipment
Description
This Plant Group (PG) captures the network transmission costs associated with ACE/ENA core equipment. This equipment is used
to supply Kilostream.
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Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the PC Rental 64Kbit/s Link per link component CO381.
Data Source/s
Allocates directly, no data source/s required.
PG401A
NetStream Equipment
Description
This Plant Group (PG) captures the costs associated with NetStream. NetStream is a Retail Product offering that enables mobile
network operators (MNOs) to backhaul their traffic from their cell sites (satellite sites) to their core networks (at major customer
sites).
Methodology
Costs are allocated 100% to the Netstream equipment component CO401.
PG405A
DMS100 Call Centre Switches
Description
This Plant Group (PG) captures the equipment costs associated with DMS100 Call Centre Switches. The DMS100 (Digital
Multiplexer System) is a digital facility that processes OA (Operator Assistance) telephone calls.
Methodology
Allocates 100% to the DMS100 component CO405.
PG407A
Carrier Pre Selection (CPS) Operator Set-Up
Description
This Plant Group (PG) captures the cost of CPS Operator Set Up. CPS allows customers to select to have certain call types carried by
another network operator.
Methodology
Allocates 100% to the Carrier Pre Selection operator set-up component CO407.
PG408A
Carrier Pre Selection customer set-up
Description
This Plant Group (PG) captures the cost of CPS Customer Set Up. CPS allows customers to select to have certain call types carried
by another network operator.
Methodology
Allocates 100% to the CPE CSE component CO408.
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PG411C
Analogue Private Circuit Equipment
Description
This Plant Group (PG) captures the capital cost of dedicated plant associated with Private Analogue Circuits and allied specialised
applications.
Methodology
Allocates 100% to the OR PC Rental Analogue local end component CO431.
PG411P
Analogue Private Circuit Connections
Description
This Plant Group (PG) captures the connection costs of providing analogue circuits for National Business Customers. The work
takes place primarily within the transmission network.
Methodology
Allocates 100% to the Analogue PC link Connection circuit provision component CO411.
PG412M
Local End Equipment 64kit/s Repair
Description
This Plant Group (PG) captures the maintenance costs associated with 64Kbit/s (Kilostream) private circuits.
Methodology
Allocates 100% to the PC rentals 64Kbit/s local end component CO432.
PG412P
64Kbit/s Private Circuit Connections
Description
This Plant Group (PG) captures the connection costs of providing Kilostream circuits. The work takes place primarily within the
transmission network and includes provision of private circuits.
Methodology
Costs are apportioned to components CO417 64 Kbit/s link connection circuit provision and CO418 OR PC rearrangement 64
Kbit/s based on volumes of each activity from Powerhouse and COSMOSS.
Data Source/s
Powerhouse and COSMOSS.
PG413P
Private Circuits MegaStream and IX Conns
Description
This Plant Group (PG) captures the connection costs of providing 2 MegaStream circuits of 2Mbit/s or higher bandwidth based
circuits. The work takes place primarily within the transmission network and includes re-arrangement and transfers.
Methodology
Costs from this PG are apportioned to components based on a price-weighted volume of circuits provided during the year. The
volumes are sourced from Powerhouse and Customer Oriented System for the Management of Special Services (COSMOSS) and
prices from the Carrier Price List. The price-weighting takes into account the difference in providing a connection with that of
carrying out a re-arrangement or a transfer. From these price-weighted volumes usage factors are calculated and applied.
Data Source/s
IX Vols / Prices from BTW Interconnect Revenue and related Pay Costs download from CID.
PG414M
Analogue international leased line Current
Description
This Plant Group (PG) captures the maintenance costs associated with Private Circuits International Analogue International Private
Leased Circuit (IPLC).
Methodology
Allocates 100% to the Analogue international leased line component CO415.
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PG415M
Private Circuits International Digital IPLC Current
Description
This Plant Group (PG) captures current costs associated with Private Circuits International Digital International Private Leased
Circuit (IPLC).
Methodology
Allocates 100% to the Digital IPLC component CO414.
PG421S
Private Circuits Analogue Installation
Description
This Plant Group (PG) captures the connection costs in providing and rearranging analogue circuits..
Methodology
Allocates 100% to the OR Analogue PC installation component CO421.
PG422S
Private Circuits Analogue Installation
Description
This Plant Group (PG) captures the connection costs in providing and rearranging KiloStream circuits.
Methodology
Costs are apportioned to components CO417 64Kbit/s link connection circuit provision and CO418 OR PC rearrangement 64Kbit/s
based on volumes of each activity from Powerhouse and COSMOSS.
Data Source/s
Powerhouse and COSMOSS.
PG426S
Private Circuit Access Lines Installation
Description
This Plant Group (PG) captures costs associated with Private Circuit Access Line Installation.
Methodology
Allocates 100% to the OR Analogue PC installation component CO421.
PG440C
Local End Equipment ASDH 4x2Mbit/s Equipment
Description
This Plant Group (PG) captures the depreciation costs for ASDH 4x2 Bearer/Line systems, that is, electronics equipment for a
Bearer/Line System capacity of 4x2Mbit/s.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these Bearer/Line Systems.
These 4x2 bearers are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs (Partial Private Clients) and
SMDS (Switched Multimegabit Data Services). Each of these circuit types has its own component and the PG costs are attributed
to them based on the circuit count using CTCS data.
Data Source/s
The data source for the number of circuits is the CTCS for Period 6. Management believes this period to be reflective of the full
year.
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PG440M
Local End Equipment ASDH 4x2Mbit/s Maintenance
Description
This Plant Group (PG) captures the costs associated with maintenance of ASDH 4x2 Line systems, i.e. electronics equipment that
can carry up to 4x2Mbit/s bearers.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (PG440C).
This assumes that a line system with only (for example) private circuits connected to it has the same maintenance profile as the
same line systems with only (for example) interconnect circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
PG441C
Local End Equipment ASDH 16x2Mbit/s Equipment
Description
This Plant Group (PG) captures the depreciation costs for ASDH 16x2 Bearer/Line systems, electronics equipment for a
Bearer/Line System capacity of 16x2Mbit/s. Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these Bearer/Line Systems.
These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs (Partial Private Clients) and
SMDS (Switched Multimegabit Data Services) and the PG costs are therefore attributed to the components that are used in the
provision of these services.
Core Transmission Circuit costing System (CTCS) is a circuit inventory system, which holds a count of the number of each circuit
type that utilises each equipment type. In this case, it records the number of the above circuit types that use 16x2 line systems.
Data Source/s
The data source for the number of circuits is CTCS for Period 6 Management believes this period to be reflective of the full year.
PG441M
Local End Equipment ASDH 16x2Mbit/s Maintenance
Description
This Plant Group (PG) captures the costs associated with maintenance of ASDH 16x2 Line systems, i.e. electronics equipment that
can carry up to 16x2Mbit/s bearers.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
using these line systems and follows the attribution of the Capital costs (PG441C).
This methodology assumes that a line system with only (for example) private circuits connected to it has the same maintenance
profile as the line systems with only (for example) interconnect circuits.
Data Source/s
Core Transmission Circuit costing System (CTCS) for Period 6. Management believes this period to be reflective of the full year.
PG442C
Local End Equipment 2Mbit/s (Copper) Equipment
Description
This Plant Group (PG) captures the depreciation costs for 2Mbit/s copper Bearer/Line systems, i.e. electronics equipment that
supports 2Mbit/s circuits carried over copper pairs. The circuits are almost wholly 2Mbit/s private circuits, but there is a small
number of interconnect circuits carried over copper.
Methodology
The attribution of the PG costs to components is based on the number of circuits of each type that is carried over bearers that use
these line systems.
Total 2Mbit/s circuit over copper volumes are obtained from Powerhouse.
The number of interconnect circuits is also taken from Powerhouse, which records the number of such circuits, however the
number of these circuits travelling over copper is calculated separately. To do this Core Transmission Circuit costing System (CTCS)
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data is used to determine the split of circuits going over copper, fibre and radio.
This percentage is then applied to the Powerhouse total 2Mbit/s circuit volume to determine the number of interconnect circuits
using 2Mbit/s copper Bearer/line systems.
The PG costs are then attributed to components pro-rata to these volumes.
This is illustrated below.
Determine interconnect volumes:
From Powerhouse:
•
Total number of circuits carried over copper, X.
From CTCS:
•
Total number of Interconnect circuits carried over copper, Y.
Therefore percentage of circuits carried over copper represented by interconnect circuits = Y / X = Z%.
Determine split of Powerhouse volumes between interconnect and private circuits:
Take total volume of 2Mbit/s circuits over copper = A.
Determine volume of interconnect circuits = A x Z% = B.
Then volume of 2Mbit/s private circuits = A – B.
Data Source/s
Powerhouse volumes and CTCS data - Period 6. Management believes this period to be reflective of the full year.
PG442M
Local End Equipment 2Mbit/s (Copper) Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 2Mbit/s copper Bearer/Line systems, i.e. electronics equipment that
supports 2Mbit/s circuits carried over copper pairs. The circuits are almost wholly 2Mbit/s Private Circuits, but there is a small
number of interconnect circuits carried over copper
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (see PG442C).
This assumes that a line system with only (for example) private circuits connected to it has the same maintenance profile as the
line systems with only (for example) interconnect circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
Data Source/s
Powerhouse volumes and Core Transmission Circuit costing System (CTCS) data for Period 6. Management believes this period to
be reflective of the full year.
PG443C
Local End Equipment 2Mbit/s (Fibre) Equipment
Description
This Plant Group (PG) captures the depreciation costs for 2Mbit/s Bearer/Line systems i.e. electronics equipment that supports
2Mbit/s circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems. As PG443C covers both 2Mbit/s and 4x2Mbit/s circuits the volume of each type of circuit is weighted
by the cost of the relevant electronics.
These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs (Partial Private Circuits) and
SMDS (Switched Multimegabit Data Services) and the PG costs are therefore attributed to the components that are used in the
provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
number of the above circuit types that use 2Mbit/s line systems.
Data Source/s
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The data source for the number of circuits is CTCS. Circuit numbers are based on Period 6 and are believed by management to be
representative of the full year.
PG443M
Local End Equipment 2Mbit/s (Fibre) Maintenance
Description
This Plant Group (PG) Captures the maintenance costs for 2Mbit/s Bearer/Line systems i.e. electronics equipment that supports
2Mbit/s circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems. These line systems are used in the provision of 2Mbit/s private circuits, interconnection circuits, PPCs
(Partial Private Clients) and SMDS (Switched Multimegabit Data Services) and the PG costs are therefore attributed to the
components that are used in the provision of these services.
This base follows the attribution of the Capital costs (see PG443C). This assumes that a line system with only (for example) private
circuits connected to it has the same maintenance profile as the same line systems with only interconnect circuits (for example).
This assumption is consistent with BT’s actual experience of maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
number of the above circuit types that use 2Mbit/s line systems.
Data Source/s
The data source for the number of circuits is CTCS. Circuit numbers are based on Period 6 and are believed by management to be
representative of the full year.
PG444C
Local End Equipment 34Mbit/s Equipment
Description
This Plant Group (PG) Captures the depreciation costs for 34Mbit/s Bearer/Line systems i.e. electronics equipment on which
circuits with a bandwidth of up to and including 34Mbit/s can travel over.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried over 34Mbit/s
bearers/Line Systems. These line systems are used to provide a medium for the circuits to travel over and the PG costs are
therefore attributed to the components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
total number of the above circuit types that use 34Mbit/s line systems. Circuits for 34Mbit/s and above are taken from CTCS circuit
volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of 34Mbit/s and
above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 34Mbit/s line system can support
1x34Mbit/s circuit or 16x2Mbit/s circuits. So for example the number of 2Mbit/s circuits is therefore weighted by a factor of 16,
to reflect the capacity utilisation, and express the number of 2Mbit/s circuits in terms of their 34Mbit/s equivalent.
Data Source/s
CTCS. The circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
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PG444M
Local End Equipment 34Mbit/s Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 34Mbit/s Bearer/Line systems i.e. electronics equipment that supports
34Mbit/s circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the capital costs (see PG444C).
This assumes that a line system with only (for example) 2Mbit/s private circuits connected to it has the same maintenance profile
as the same line system with only (for example) 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
total number of the above circuit types that use 34Mbit/s line systems. Circuits for 34Mbit/s and above are taken from CTCS circuit
volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of 34Mbit/s and
above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 34Mbit/s line system can support
1x34Mbit/s circuit or 16x2Mbit/s circuits. So for example the number of 2Mbit/s circuits is therefore weighted by a factor of 16,
to reflect the capacity utilisation, and express the number of 2Mbit/s circuits in terms of their 34Mbit/s equivalent.
Data Source/s
CTCS. The circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG445C
Local End Equipment 140Mbit/s Equipment
Description
This Plant Group (PG) captures the depreciation costs for 140Mbit/s Bearer/Line systems i.e. electronics equipment on which
circuits with a bandwidth of up to and including 140Mbit/s can travel over.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried over
140Mbit/s bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore attributed to the
components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
total number of the above circuit types that use 140Mbit/s line systems. Circuits for 34Mbit/s and above are taken from CTCS
circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of 34Mbit/s
and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 140Mbit/s line system can support
one 140Mbit/s circuit or four 34Mbit/s circuits, or 63 2Mbit/s circuits, or some Combination of 34 and 2Mbit/s circuits. The
number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 63, to reflect the capacity utilisation, and express the
number of 34Mbit/s circuits in terms of their 140Mbit/s equivalent. Similarly, the number of 34Mbit/s circuits is weighted by a
factor of four.
Data Source/s
CTCS. The circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG445M
Local End Equipment 140Mbit/s Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 140Mbit/s Bearer/Line systems i.e. electronics equipment that supports
140Mbit/s circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the Capital costs (see PG445C).
This assumes that a line system with only 2Mbit/s private circuits connected to it has the same maintenance profile as the same
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line system with only 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
total number of the above circuit types that use 140Mbit/s line systems. Circuits for 34Mbit/s and above are taken from CTCS
circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of 34Mbit/s
and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 140Mbit/s line system can support
1 140Mbit/s circuit or four 34Mbit/s circuits, or 63 2Mbit/s circuits, or some Combination of 34 and 2Mbit/s circuits. The number
of 2Mbit/s interconnect circuits is therefore weighted by a factor of 63, to reflect the capacity utilisation, and express the number
of 34Mbit/s circuits in terms of their 140Mbit/s equivalent. Similarly, the number of 34Mbit/s circuits is weighted by a factor of
four.
Data Source/s
The data source for the number of circuits is CTCS.
The circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG446C
Local End Equipment 622Mbit/s Equipment
Description
This Plant Group (PG) captures the costs for 622Mbit/s Bearer/Line systems i.e. electronics equipment on which circuits with a
bandwidth of up to and including 622Mbit/s can travel over.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried over
622Mbit/s bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore attributed to the
components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
total number of the above circuit types that use 622Mbit/s line systems. Circuits for 34Mbit/s and above are taken from CTCS
circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of 34Mbit/s
and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 622Mbit/s line system can support
one 622Mbit/s circuit, four 140Mbit/s circuits, 16 34Mbit/s circuits, or 252 2Mbit/s circuits, or some Combination of 140, 34 and
2Mbit/s circuits. The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 252, to reflect the capacity
utilisation, and express the number of these circuits in terms of their 622Mbit/s equivalent. Similarly, the number of 140Mbit/s
circuits is weighted by a factor of four and the number of 34Mbit/s circuits is weighted by a factor of 16.
Data Source/s
The data source for the number of circuits is CTCS.
The circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG446M
Local End Equipment 622Mbit/s Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 622Mbit/s Bearer/Line systems, electronics equipment that supports
622Mbit/s circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried over bearers
that use these line systems and follows the attribution of the capital costs (see PG446C).
This assumes that a line system with only (for example) 2Mbit/s private circuits connected to it has the same maintenance profile
as the same line system with only (say) 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of maintenance
in this area.
The data source for the number of circuits is Core Transmission Circuit Costing System (CTCS). In summary, this is a circuit inventory
system, which holds a count of the number of each of circuit type that utilises each equipment type. In this case, it records the
total number of the above circuit types that use 622Mbit/s line systems. Circuits for 34Mbit/s and above are taken from CTCS
circuit volumes, whereas the 2Mbit/s volumes are derived from the balance of total bearer volumes less the volume of 34Mbit/s
175
and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 622Mbit/s line system can support
1 622Mbit/s circuit, 4 140Mbit/s circuits, 16 34Mbit/s circuits, or 252 2Mbit/s circuits, or some Combination of 140, 34 and
2Mbit/s circuits. The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 252, to reflect the capacity
utilisation, and express the number of these circuits in terms of their 622Mbit/s equivalent. Similarly, the number of 140Mbit/s
circuits is weighted by a factor of 4 and the number of 34Mbit/s circuits is weighted by a factor of 16.
Data Source/s
CTCS. The circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
PG447A
Ethernet Access Equipment
Description
This Plant Group (PG) captures costs associated with the dedicated plant connected with the SHDS Products and is wholly assigned
to the SHDS components. Where customers are using Local Area Networks (LAN) to access and exchange data at one site, SHDS
Products enables them to extend the LAN to other sites.
Methodology
Allocates 100% to Ethernet electronics CO485.
PG448A
CCTV Rental
Description
This Plant Group (PG) captures costs associated with the rental of CCTV circuits.
Methodology
Allocates 100% to the Ethernet electronics component CW617.
PG448L
CCTV Connection
Description
This Plant Group (PG) captures costs associated with the connection of CCTV circuits.
Methodology
Allocates 100% to the Ethernet electronics component CW619.
PG461A
Private Circuits Test and Maintenance System
Description
This Plant Group (PG) captures the costs associated with Private Circuit maintenance and testing work carried out in the Work
Manager Control Centres. It includes jeopardy management of jobs, Work Manager Helpdesk and administration costs.
Methodology
Allocates 100% to the Private Circuit test system component CO461.
PG462A
Private Circuits Customer Premises
Description
This Plant Group (PG) captures the cost of dealing with Private Circuit maintenance and faulting work in customer premises on
analogue private circuits and access lines.
Methodology
Allocates 100% to the Openreach Private Circuit Customer Premises component CO462.
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PG463A
Private Circuits Testing
Description
This Plant Group (PG) captures the cost of dealing with Private Circuit maintenance and testing carried out in the Work Manager
Control Centres. It includes jeopardy management of jobs, Work Manager Helpdesk and administration costs. It also captures the
cost of time spent by exchange maintenance people in co-operation with field people for line test in order to localise a fault.
Methodology
Allocates 100% to the Openreach Private Circuit Testing component CO463.
PG483A
Flexible Bandwidth Services (FBS)
Description
This Plant Group (PG) captures the costs associated with the FBS product. The FBS product offers a flexible private virtual network
providing the customer with both re-routing, on demand, to pre-determined destinations and band width flexibility within
agreed limits.
Methodology
Allocates 100% to the Flexible Bandwidth Services component CO483.
PG502B
SG&A Openreach Sales Product Management
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross Book Value (GBV)
costs associated with Organisational Unit Code (OUC) BP. BP is the Sales and Product Management division of Openreach. As the
various sub-teams support specific services, their costs cannot be spread on a Direct pay or revenue basis.
Methodology
Allocates 100% to the Sales product management component CP502.
PG504B
Number Portability Operational Management
Description
This Plant Group (PG) captures the cost and balance sheet associated with Organisational Unit Code (OUC) BM. BM is the Service
division of Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair of
Openreach services. This facility enables a telephone customer to retain their phone number if they switch to another CP.
Methodology
Allocates 100% to the Number Portability Set-up costs component CO732.
PG505A
Selling, General and Administration (SG&A) Private Circuits
Description
This Plant Group (PG) captures the cost and balance sheet of the SG&A activity in BT Wholesale supporting Private Circuits.
Methodology
Costs from this plant group are allocated 100% to the SG&A Private Circuits component CO505.
PG506N
SG&A PPC (Wholesale)
Description
This Plant Group (PG) captures the cost and balance sheet of the SG&A activity in BT Wholesale supporting PPCs.
Methodology
Costs from this plant group are allocated 100% to the SG&A partial private circuits component CO506.
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PG511M
Interconnect OCP Maintenance
Description
This Plant Group captures the costs and balance sheet associated with Interconnecting with OCPs for building activity.
Methodology
Allocates 100% to the Intra Building Circuit (IBC) rental component CR470.
PG511P
Interconnect OCP Provision
Description
This Plant Group (PG) captures provision costs specific to Interconnect Operational Capacity Planning (OCP) circuits. Interconnect
OCP circuits are circuits which connect the BT Network to the networks of Other Communications Providers.
Methodology
Allocates to the Interconnect 2Mbit/s connections component CR453 and Interconnect IBC 2Mbit/sit connection CR469 based on
the relative connection volumes of each.
Data Source/s
Wholesale Customer Reporting System (WCR).
PG512A
SG&A Calls
Description
This Plant Group (PG) captures the costs incurred by BT in servicing and supporting the Interconnect market. The primary unit
concerned is BT Wholesale Products with minor contributions from the rest of BT Wholesale.
Methodology
Costs from this plant group are allocated 100% to the PPP component CO512.
PG561A
Interconnect Outpayments International
Description
This Plant Group (PG) captures cost of outpayments to overseas carriers.
Methodology
Allocates 100% to the Interconnect outpayments overseas component CB561.
PG570B
OR Service Centre Provision Analogue/ISDN2
Description
This Plant Group (PG) captures the cost and balance sheet of Service Centres for the Provision of Wholesale Line Rental (WLR) and
ISDN2.
Methodology
Allocates 100% to the OR Service Centre - Provision Analogue/ISDN2– CL570.
PG571B
OR Service Centre Provision ISDN30
Description
This Plant Group (PG) captures the cost and balance sheet Service Centre for the Provision of Wholesale Line Rental ISDN30.
Methodology
Allocates 100% to the OR Service Centre - Provision WLR ISDN30 – CL571.
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PG572B
OR Service Centre Provision LLU
Description
This Plant Group (PG) captures the cost and balance sheet Service Centre for the Provision of Wholesale Line Rental (WLR) Local
Loop Unbundling.
Methodology
Allocates 100% to the OR Service Centre - Provision WLA – CL572.
PG573B
OR Service Centre Provision Ethernet
Description
This Plant Group (PG) captures the cost and balance sheet Service Centre for the Provision of Wholesale Line Rental Ethernet.
Methodology
Allocates 100% to the OR Service Centre - Provision AISBO – CL573.
PG574B
OR Service Centre Provision NGA
Description
This Plant Group (PG) captures the cost and balance sheet Service Centre for the Provision of Next Generation Access (NGA).
Methodology
Allocates 100% to the OR Service Centre - Provision NGA – CL574.
PG575B
OR Service Centre Assurance WLR PSTN/ISDN2
Description
This Plant Group (PG) captures the cost and balance sheet Service Centre for the Assurance Wholesale Line Rental (WLR)
PSTN/ISDN2.
Methodology
Allocates 100% to the OR Service Centre - Assurance Analogue/ISDN2 – CL575.
PG576B
OR Service Centre Assurance WLR ISDN30
Description
This Plant Group (PG) captures the cost and balance sheet Service Centre for the Assurance Wholesale Line Rental ISDN30.
Methodology
Allocates 100% to the OR Service Centre - Assurance WLR ISDN30 – CL576.
PG577B
OR Service Centre Assurance LLU
Description
This Plant Group (PG) captures the cost and balance sheet of assurance LLU costs associated with Organisational Unit Code (OUC)
BV. BV is the Service division of Openreach. The teams within BV are primarily call centre based, with staff supporting the
provisioning and repair of Openreach services. As the various teams support specific services, their costs cannot be spread on a
direct pay or revenue basis.
Methodology
Allocates 100% to the OR Service Centre - Assurance WLA – CL577.
PG578B
OR Service Centre Assurance Ethernet
Description
This Plant Group (PG) captures the cost and balance sheet of assurance Ethernet.
Methodology
Allocates 100% to the OR Service Centre - Assurance Ethernet – CL578.
179
PG579B
OR Service Centre Assurance NGA
Description
This Plant Group (PG) captures the cost and balance sheet of Assurance Next Generation Access (NGA).
Methodology
Allocates 100% to the OR Service Centre - Assurance NGA – CL579.
PG580B
Broadband Boost
Description
This Plant Group (PG) captures the Openreach engineering costs associated with Broadband Boost jobs. Broadband Boost is a
solution to improving speed, quality and reliability of customer’s Broadband service.
Methodology
Allocates 100% to the Broadband Boost component CO580.
PG583N
SG&A Wholesale Residual
Description
This Plant Group (PG) costs and balance sheet of the SG&A activity by BT Wholesale supporting unregulated products which will
include Wholesale calls.
Methodology
Allocates 100% to the SG&A Wholesale residual component CO583.
PG584N
SG&A Wholesale Other
Description
This Plant Group (PG) captures the costs and balance sheet of the SG&A activity by BT Wholesale supporting unregulated products
which will include Managed Wholesale Ethernet.
Methodology
Allocates 100% to the SG&A Wholesale other component CO584.
PG585A
SG&A downstream residual
Description
This Plant Group (PG) costs and balance sheet of the SG&A activity by BT Wholesale supporting unregulated downstream
products. Products included in this category will include Agile Media and Media and Broadcast.
Methodology
Allocates 100% to the SG&A downstream residual component CO585.
PG586N
SG&A Interconnect
Description
This Plant Group (PG) costs and balance sheet of the SG&A activity by BT Wholesale supporting the Interconnect market.
Methodology
Allocates 100% to the SG&A Interconnect component CO586.
PG590B
LLU Service Level Guarantees External
Description
This Plant Group (PG) captures costs associated with External LLU SLG costs..
Methodology
Allocates 100% to the Service Level Guarantees component CL590.
PG591B
LLU Service Level Guarantees Internal
180
Description
This Plant Group (PG) captures costs associated with Internal LLU SLG costs..
Methodology
Allocates 100% to the Service Level Guarantees – Internal component CL591
PG599A
Interconnect Outpayments Inland
Description
This Plant Group (PG) captures the cost of Interconnect payments made to Other Communication Providers (OCPs).
Methodology
Allocates 100% to the Interconnect POCPs component CB599.
PG609N
SG&A Broadband
Description
This Plant Group (PG) captures the costs and balance sheet of the SG&A activity by BT Wholesale supporting the Wholesale
Broadband Access markets.
Methodology
Allocates 100% to the SG&A Broadband component CO609.
PG622A
Public Payphones Kiosks
Description
These Plant Groups (PG) captures the costs and balance sheet associated with the Openreach’s maintenance of BT Retail Public
Payphone kiosks.
Methodology
Allocates Openreach costs 100% to the component CF446. All other OUCs allocate 100% to CR446
PG622B
Public Payphones Operations
Description
These Plant Groups (PG) captures the Profit and Loss (P&L) and Balance Sheet costs associated with the Openreach’s maintenance
of BT Retail Public Payphone kiosks.
Costs from this Plant Group PG622B feed into the Public Payphones Operations component CF446 for Openreach only. Whereas
retail costs point to PG622A which in turn point to CR446.
Methodology
Allocates Openreach costs 100% to the component CF446 and in turn to service SK987. All other OUCs allocate 100% to CR446.
PG651B
Number Portability Set-up Costs – Operation and Maintenance Centre (OMC) Activities
Description
This Plant Group (PG) captures the OMC activity costs associated with Number Portability set-up. This facility enables a telephone
customer to retain their phone number if they switch to another CP.
Methodology
Allocates 100% to the Number Portability Set-up costs component CO732.
PG653A
ATM Customer Interface 2Mbit/s Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 2Mbit/s Customer Interface Cards,
namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the ATM classes of work (CoW). This
equipment is located in the ATM PoP (Point of Presence) at the edge of the ATM Network and links the customer's premises via a
private circuit, to the ATM network.
Methodology
181
Allocates 100% to the ATM customer interface 2Mbit/s components CO310.
PG654A
ATM Customer Interface 34Mbit/s Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 34Mbit/s Customer Interface
Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the classes of work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of Presence) at the edge of the
ATM Network and links the customer's premises via a private circuit, to the ATM network.
Methodology
Allocates 100% to the ATM customer interface 34Mbit/s components CO311.
PG656A
ATM Network Switching
Description
This Plant Group (PG) captures the cost of network switching ports deployed in the ATM platform. ATM is a high throughput
packet switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates, multiple virtual circuits per
network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the ATM Network Switching component CO314.
PG657A
FrameStream Switch
Description
This Plant Group (PG) captures the cost of Frame relay equipment booked to the Asynchronous Transfer Mode (ATM) classes of
work (CoW). This CoW falls within the ATMR asset policy code. The ATMR asset policy code captures the costs for all frame relay
equipment. Frame relay equipment is a small network which works alongside the ATM.
FrameStream/Frame Relay is a simple, cost effective, frame relay-based Virtual Private Network (VPN) solution that supports
high-speed data and Internet Protocol (IP) connectivity in the UK and abroad.
Methodology
Allocates 100% to the FrameStream Switch component CO657.
PG658A
ATM Customer Interface >155Mbit/s Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 155Mbit/s and higher bandwidth
Customer Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the ATM
classes of work (CoW).
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates,
multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the ATM customer interface > 155Mbit/s components CO312.
PG659A
ATM Network Interface Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of Network Interface Cards, namely,
the cost of equipment provision, rearrangement or recovery. These costs fall within the ATM classes of work (CoW). Types of cost
include pay and stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband (multimegabit) data rates,
multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the ATM Network Interface component CO313.
PG667A
IP International Peering
182
Description
This Plant Group (PG) captures the cost of:
•
Gigabit Routers, connecting International transmission and peering links to USA, Europe. Gigabit Routers is a high bandwidth
switch, used for switching Internet traffic.
•
Links for World Wide Web (www) Products - anything that uses the Internet such as BTnet and WebPort. BTnet Dial IP service
provides remote dial-in access to corporate networks so they can extend their Intranet and Extranet and offers Internet
Service Providers (ISPs) with dial ports via BT’s fully managed high speed dial network.
Methodology
Allocates 100% to the IP International Peering component CO667.
PG668A
IP Network Management
Description
This Plant Group (PG) captures the costs of IP Network Management including all the costs associated with Operational Support
Systems (OSS) – these are activities used to run the network and business. Typical activities that are part of OSS are taking a
customer’s order, configuring network components, logging and managing faults. The types of cost include pay and stores costs.
Methodology
Allocates 100% to the IP Network Management component CO668.
PG669A
IP Network Dial IP
Description
This Plant Group (PG) captures the cost of the following types of equipment:
•
IP Dial Ports. Dial Ports connect Public Switched Telephone Network (PSTN) to IP Network.
•
Dial Access Routers. Dial Access Routers connect Dial Ports into IP Network.
•
Home Gateway Routers. Home Gateway Routers are customer specific e.g. ISP (Internet Service Provider).
Methodology
Allocates 100% to the IP Network Dial IP component CO669.
PG670A
IP Network Fixed Access
Description
This Plant Group (PG) captures the cost of the following types of equipment:
•
BTnet Direct and Flex NTE (Network Terminal Equipment) Routers, which connect the customer to the BT Network.
•
BTnet Access Routers, which connect the MSIP (Multi Services Intranet Platform) and Synchronous Digital Hierarchy (SDH)
access to the IP Network at Colossus PoPs (Point of Presences).
Methodology
Allocates 100% to the IP Network Fixed Access component CO670.
PG671A
IP Network VPN
Description
This Plant Group (PG) captures the cost of the platform that delivers the following VPN products: Metro, Equip, and Internet
Protocol (IP) Clear and Ethernet delivery services (e.g. Fusion and IP Clear).
There are three main types of equipment in this platform:
•
Provider Edge Routers, used to terminate customer ports.
•
Provider Router, used to route traffic through network.
•
Catalyst Switch, used to aggregates traffic into a Provider router.
Methodology
Allocates 100% to the IP VPN component CO671.
183
PG672A
IP Network Broadband
Description
This Plant Group (PG) captures the cost of the following types of equipment:
•
Remote Authentication Servers (RAS) (which connect Asymmetric Digital Subscriber Line (ADSL) users into IP cloud, for direct
connection to the Internet Service Provider Home Gateways.
•
Broadband Access Routers, which connect RAS into IP cloud.
•
Broadband Service Provider Home Gateways.
Methodology
Allocates 100% to the IP Network Broadband component CO672.
PG673A
IP Network BT Intranet
Description
This Plant Group (PG) captures the cost of the Command Control Router Network (CCRN) or Information Network (iNet). Command
Control Router Network (CCRN) is a BT internal structure for the transport of management traffic.
Methodology
Allocates 100% to the IP Network BT Intranet component CO673.
PG674A
IP Core/Colossus
Description
This Plant Group (PG) captures the cost of:
•
Gigabit Core Routers.
•
Catalyst LAN (Local Area Network).
Switches that aggregate and link router ports from the IP back bone core.
Methodology
Allocates 100% to the IP Core Node Equipment component CO674.
PG675A
IP VOIP Infrastructure
Description
VoIP is a method of transporting speech over the internet.
This Plant Group (PG) captures the cost of the following types of equipment:
•
Gigabit Routers - Gigabit Routers are high bandwidth switches, used for switching Internet traffic.
•
Gateways and Access Routers are for transmitting voice over the IP Network.
Costs include provision, extension, rearrangement and recovery of IP Networks by the Broadband and Data division in BT
Wholesale.
Methodology
Allocates 100% to the VoIP Equipment component CO675.
PG676A
IP (Internet Protocol) Applications
Description
This Plant Group (PG) captures the cost of DNS (Domain Name Servers). DNS convert IP addresses into world wide web (www)
format and vice versa. It also contains Radius Dial, Radius Broadband Servers, Mail and News servers.
Methodology
Allocates 100% to the IP Core Node Equipment component CO674.
PG678A
SIP servers
184
Description
This Plant Group (PG) captures the cost of the SIP server equipment. SIP is a signalling protocol used for establishing sessions in an
IP network.
Methodology
Allocates 100% to the IP SIP Server component CO678.
PG722A
Circuit Provision (CP) Digital Public Network
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other payments) costs
associated with the provision of transmission circuits for the digital Public Switched Telephony Network (PSTN). This transmission
network consists of Remote Concentrator to Local Exchange, Local Exchange to Trunk/Tandem Exchange and InterTandem/Trunk circuits.
Methodology
Costs are apportioned based on the number of PSTN transmission circuits provided, ceased and rearranged over the reporting
period. This information is sourced from the Core Transmission Costing System (CTCS).
Data Source/s
CTCS provides a count of the number of PSTN transmission circuits provided, ceased and rearranged over the reporting period. For
full year reporting this is based on the number of aforementioned circuit changes between September (Period 6) prior year and
September current year.
PG771A
Special Applications Other Development
Description
This plant group (PG) captures provision of Microconnect equipment.
Methodology
Allocates 100% to the Development component CB782.
PG772A
Openreach Systems and Development (Product Specific)
Description
This Plant Group (PG) captures the cost of Research and Development (R&D) projects, undertaken by Technology Service &
Operations on behalf of Openreach, that are specific to Products e.g. Local Loop Unbundling (LLU), Wholesale Line Rental (WLR)
and Ethernet.
Development projects can range from high-level strategy, down to operational and logistical development. Development project
costs are apportioned according to the nature of the individual projects.
PG772A (Openreach Systems and Development (Product Specific)) is for Openreach development projects that are specifically
relate to Products.
Methodology
Analysis of the Fixed Asset Register (FAR) for CoW’s COMPS and COMPG for Openreach Line of Business. Analysis of the “Asset
Description” and “Subgroup Description” fields to ascertain which specific products e.g. Local Loop Unbundling (LLU)/Wholesale
Line Rental (WLR)/Ethernet. the asset entry in the FAR relates to. Using the Current Year Depn field and the aforementioned
mapping this is the driver to derive the allocation of PG772A to the relevant Components.
Data Source/s
Fixed Asset Register (FAR) for Class of Work COMPS & COMPG for Openreach
PG823P
BT Own Use Private Circuits
Description
This Plant Group (PG) captures those provision costs of BT own use private circuits, which can be identified directly from the ledger
systems, along with associated overheads.
Methodology
Allocates 100% to the BT Own Use PC Provision component CO823.
185
PG855A
Border Gateway and Signalling Firewall
Description
This Plant Group (PG) captures the Capital costs of the Border Gateway and Signalling Firewall costs contained within Metro
Nodes. The Border Gateway provides a connectivity point or POSI (Point of Service interconnect) for Other Communication
Providers (OCPs) into the 21CN network.
Methodology
Allocates 100% to the Border Gateway and Signalling Firewall component CN867.
186
PG856A
CMASN ISDN2 Cards
Description
This Plant Group (PG) captures the Capital costs of ISDN2 contained within Multi Service Access Nodes (MSANs). Line cards are the
electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the 21CN ISDN2 Cards component CN852.
PG857A
Copper MSAN Combi Cards Broadband element
Description
This Plant Group (PG) captures the capital costs of the Broadband element of ComboCards contained within Multi Service Access
Nodes (MSANs). Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the Combi card broadband access component CN854.
PG858A
Copper MSAN Combi Cards Voice element
Description
This Plant Group (PG) captures the capital costs of the Voice element of Combo Cards contained within Multi Service Access Nodes
(MSANs). Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the Combi card voice component CN853.
PG859A
Copper MSAN Control Access
Description
This Plant Group (PG) captures the capital costs of the control and common elements of a Copper Multi Service Access Node
(MSAN) that are relevant to line cards. Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
The control/common element of the Copper MSAN is exhausted to the line card components that are connected into a Copper
MSAN. The basis of apportionment is the relative number of connections for each service driven by the total volumes for each of
the relevant products currently in the network (both on legacy and 21C equipment).
21C migrated volumes are used to derive a split for Broadband and Voice to align with the Combi card split. Elsewhere, in this case
the full volume of 21C In-Scope products are used.
This is because the Combo card voice access connections capital was originally predicated for a full voice migration and is
therefore regarded as a fixed element for voice access.
The line card components that are recipients are:
•
CN853 Combi card voice.
•
CN854 Combi card broadband access.
Data Source/s
21C Generic Cost Model and Group Volume forecast.
PG860A
Copper MSAN Control Transport
Description
This Plant Group (PG) captures the capital costs of the control and common elements of a MSAN that are relevant to the transport
of calls or traffic through the switch.
Methodology
The control/common element of the Copper MSAN is exhausted to the traffic and calls components that utilize the Copper MSAN.
The basis of apportionment is the contended relative bandwidth that the relevant products would consume if the total volume of
relevant products currently in the network were migrated onto 21C equipment. That is ignoring whether the products have
migrated to use the 21C network or not with the exception of Voice where migrated, the volume is used.
187
The traffic components that are recipients are:
•
CN890 MSAN BB Access.
•
CN861 MSAN – POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume Forecast.
PG861A
Copper MSAN ISDN30 cards
Description
This Plant Group (PG) captures the capital costs of ISDN30 contained within MSANs. Line cards are the electronic cards in the
exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the 21CN ISDN30 component CN851.
PG862A
Copper MSAN SDSL cards =<2Mbit/s
Description
This Plant Group (PG) captures the capital costs of SDSL contained within MSANs. Line cards are the electronic cards in the
exchange that provide connectivity to the switch. Types of cost include depreciation, stores and pay costs.
Methodology
Line Cards are used by Low band data products <=2Mbit/s and ISDN30. The driver for this base is the total volume of underlying
relevant products i.e. two in this case currently in the network were migrated onto 21C equipment. That is, ignoring whether the
products have migrated to use the 21C network or not.
Drives to:
•
CN851 21C ISDN30.
Data Source/s
21C Generic Cost Model
PG863A
Copper-Fibre MSAN Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Fibre and Duct) between a
CMSAN and a FMSAN.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative bandwidth that these
products would consume if the total volume of underlying relevant products currently in the network were migrated onto 21C
equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN890 MSAN Broadband Access.
•
CN862 MSAN - POSI Length Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
188
PG864A
Copper-Fibre MSAN Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a CMSAN and a FMSAN. Types
of cost include Non-ETG Pay and Fixed Assets.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative bandwidth that these
products would consume if the total volume of underlying relevant products currently in the network were migrated onto 21C
equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN890 MSAN Broadband Access.
•
CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG865A
Core-Core Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Duct and Fibre) between a
Core Node and another Core Node.
Methodology
The PG drives to seven high level product s e.g. Voice, specific transmission components based on the relative bandwidth that
these products would consume if the total volume of underlying relevant products currently in the network were migrated onto
21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
In the case of Voice there is a variant of POSI-POSI which describes traffic across Core-Core.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN903 Metro-core broadband transmission.
•
CN866 POSI - POSI Length Voice.
•
CN871 MSAN - METRO Length Connectivity.
•
CN902 Metro-switching IP/VPN.
•
CN618 Ethernet Backhaul Direct
•
CN617 Ethernet Backhaul Direct extended reach
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG866A
Core-Core Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Core Node and another Core
Node.
Methodology
The PG drives to five high level product s e.g. Voice, specific transmission components based on the relative bandwidth that these
products would consume if the total volume of underlying relevant products currently in the network were migrated onto 21C
equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
189
In the case of Voice there is a variant of POSI-POSI which describes traffic across Core-Core.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN903 Metro-core broadband transmission.
•
CN865 POSI - POSI Link Voice.
•
CN870 MSAN - METRO Link Connectivity.
•
CN902 Metro-switching IP/VPN.
•
CN618 Ethernet Backhaul Direct
•
CN617 Ethernet Backhaul Direct extended reach
Data Source/s
21C Generic Cost Model, Group Volume Forecast.
PG867A
Ethernet NTE
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the customer sited Ethernet NTE.
This is where the BT line from the exchange terminates and allows the customers’ equipment to be connected. Ethernet is the
most widely-installed Local Area Network (LAN) technology.
Methodology
Allocates 100% to CN901 Ethernet Switches.
PG869A
Fibre MSAN Control Transport
Description
This Plant Group (PG) captures the Capital costs of the Control and common elements of a FMSAN that are relevant to the
transport of calls or traffic through the switch.
Methodology
The control/common element of the FMSAN is exhausted to the traffic and calls components that utilise the Copper MSAN. The
basis of apportionment is the relative bandwidth that the relevant products would consume if the total volume of relevant
products currently in the network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to
use the 21C network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN890 MSAN Broadband Access.
•
CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model
PG872A
FMSAN TDM cards
Description
This Plant Group (PG) captures the Capital costs of TDM (Time Division Multiplexing) cards contained within Fibre Multi Service
Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the MSAN TDM Card component CN881.
PG873A
Fibre MSAN-WDM Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Fibre and Duct) between a
190
Fibre Multi Service Access Node (MSAN) and a WDM (Wave Division Multiplexing) MSAN.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative bandwidth that these
products would consume if the total volume of underlying relevant products currently in the network were migrated onto 21C
equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN862 MSAN - POSI Length Voice.
•
CN890 MSAN BB Access.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG874A
Fibre MSAN-WDM Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a FMSAN and a WDM MSAN.
Methodology
The PG drives to two high level products e.g. Voice, specific transmission components based on the relative bandwidth that these
products would consume if the total volume of underlying relevant products currently in the network were migrated onto 21C
equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN890 MSAN Broadband Access.
•
CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG875A
i-NODE Network Features
Description
This Plant Group (PG) captures the Capital costs of Network Features functionality contained within iNode. The iNode represents
the part of the network that contains intelligence associated with routing, verifying and controlling end to end service. Line cards
are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the iNode Features component CN855.
191
PG876A
i-NODE Voice Call Set-Up
Description
This Plant Group (PG) captures the Capital costs of Voice Call Set-Up functionality contained within iNode. The iNode represents
the part of the network that contains intelligence associated with routing, verifying and controlling end to end service. Line cards
are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocates 100% to the iNode Voice Call Set-Up component CN868.
PG877A
ISDN30 Network Termination Equipment (NTE)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the ISDN30 Customer sited NTE. This
is where the BT line from the exchange terminates and allows the customers’ equipment to be connected.
Methodology
Allocates 100% to the ISDN30 Access component CL189.
PG878A
Metro Broadband LNS
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BB LNS. The L2TP (Tunnelling
Protocol) Network Server is the Layer 2 Network Server.
Current there are only a few Test LNS boxes designed to test connectivity. The LNS boxes are still to be designed for the network.
When the boxes are finally designed and deployed, they will be used to provide a Routed Internet Protocol (IP) service.
Methodology
Allocates 100% to the Core/Metro Broadband component CN904 21CN broadband service provider link..
PG879A
Metro BBL3
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BBL3
BBL3 is a device used to interface 21C Broadband to the internet. Traffic is either switched directly to the internet, or looped via
CP cages where additional packet processing may be carried out before onward transmission.
Methodology
Allocates 100% to the Core/Metro Broadband component CN860.
PG880A
Metro Broadband Edge Aggregator
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BEA.
BEAs are planned to be deployed across all 21CN Core Point of Presence (PoP).
A BEA is essentially the device which a Communication Provider (CP) will interface to, in order to aggregate its traffic from all the
Broadband Remote Access Server (BRAS) located within a PoP. Initially a BEA will aggregate a single Logical PoP or 8 BRASs.
Methodology
Allocates 100% to the Core/Metro Broadband component CN860.
PG881A
Metro Broadband Remote Access Server
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BRAS. BRAS routes traffic to and
from the digital subscriber line access multiplexers (DSLAM) on an Internet service provider's (ISP) network. The BRAS sits at the
core of an ISP's network, and aggregates user sessions from the access network.
Methodology
192
Allocates 100% to the Core/Metro component CN860.
PG882A
Metro Front End Router (FER)
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the FER.
The FERs are used to connect to Communications Providers (CPs) for the Aggregated Wholesale Broadband Managed Connect
(WBMC) service. They provide load-balancing and shaping/policing functions.
Traffic from the Core to the L2 MPLS (Multi-Protocol Label Switching) network via the FERs will be over L2TP (Tunnelling
Protocol) tunnels (for L2TP Pass through).
Methodology
Allocates 100% to the Core/Metro Broadband component CN904 21CN broadband service provider link.
PG885A
Metro-Core Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission length related elements (Duct and Fibre) between a
Metro Node and a Core Node.
Methodology
The PG drives to eight high level products e.g. Voice, specific transmission components based on the relative bandwidth that these
products would consume if the total volume of underlying relevant products currently in the network were migrated onto 21C
equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice
where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN617 EBD Extended Reach
•
CN618 Ethernet Backhaul Direct
•
CN903 Metro-core broadband transmission.
•
CN862 MSAN - POSI Length Voice.
•
CN871 MSAN - METRO Length Connectivity.
•
CN902 - Metro-switching IP/VPN.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG886A
Metro-Core Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Metro Node and a Core Node.
Methodology
The PG drives to five high level products e.g. Voice, specific transmission components based on the relative contended bandwidth
that these products would consume if the total volume of underlying relevant products currently in the network were migrated
onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C network or not with the exception of
Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
CN617 EBD Extended Reach
•
CN618 Ethernet Backhaul Direct
•
CN903 Metro-core broadband transmission.
•
CN861 MSAN - POSI Link Voice.
193
•
CN870 MSAN - METRO Link Connectivity.
•
CN902 Metro-switching IP/VPN.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
PG887A
METRO-Edge Ethernet Bandwidth
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Edge Ethernet Bandwidth.
The Edge Ethernet Bandwidth is used to groom Virtual Local Area Networks (VLANs) from the Multi-Service Access Nodes
(MSANs) to the relevant Metro device such as the Voice PE using Pseudo-Wire Emulation (PWE) tunnels (across the core if
necessary). It is also used to provide point to point connectivity for Broadband traffic via Pseudo-Wire Emulation Edge to Edge
(PWE3) tunnels.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for this
service and therefore serves as a tool to allocate costs.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
CN860 - Core/Metro (broadband).
•
CN869 - Core/Metro (voice).
•
CN902 - Metro-switching IP/VPN.
•
CN905 – Multi Service Interconnect Link
Data Source/s
Generic 21CN cost model.
PG888A
METRO-Edge Ethernet Port
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Edge Ethernet Port.
The Edge Ethernet Port terminates:
•
VLAN - Virtual Local Area Networks.
•
MSIL - Multi Service Interconnect Link.
•
Ethernet services.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor reserves or books
spaces in the event of this happening. The bandwidth is divided by this factor to show the “reserved space” on the network for this
service and therefore serves as a tool to allocate costs.
The components that are recipients are:
•
CN883 - Edge Ethernet ports voice.
•
CN884 - Edge Ethernet ports broadband.
•
CN902 - Metro-switching IP/VPN.
•
CN905 - Multi Service Interconnect Link
Data Source/s
Generic 21CN cost model.
194
PG889A
METRO-Infrastructure Ethernet
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Infrastructure Ethernet.
The infrastructure switches are used to provide basic fast, Gigabit and 10 Gigabit Ethernet connectivity within a metro node and
Intelligent Node (iNode) function.
They are used to give efficient port utilisation on the expensive PE (Provider Edge) router Ethernet interfaces and because they
provide higher port densities for low-speed interfaces than are typically available on PE routers. The switches are not customerfacing and therefore do not require complex edge features or Virtual Private LAN Services (VPLS) capabilities.
Methodology
Allocates directly (100%) to CN869 Core/Metro (Voice).
Data Source/s
Allocates directly, no data source/s required.
PG890A
METRO-Media Gateway
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Media Gateways. The Media
GateWay (MGW) components provide inter-working between the packet switched Internet Protocol (IP) domain and the legacy
TDM domain.
Methodology
Allocates 100% to the Core/Metro Voice component CN869.
PG892A
METRO-Sync Racks
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Sync racks.
Each Core/Metro Point of Presence (PoP) is equipped with sync equipment to ensure that accurate timing is maintained across the
BT network. The sync equipment provides reference clock to equipment within the PoP (e.g. Media Gateway) down to the MultiService Access Nodes (MSANs).
Methodology
Allocates 100% to the Core/Metro Voice component CN869.
PG893A
Multi Service Provider Edge Routers
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Voice Router.
The PE (Provider Edge) routers provide the customer interfaces to the Internet Protocol (IP) / Multi-Protocol Label Switching
(MPLS) network, receiving customer traffic and encapsulating it as MPLS frames for transmission across the core of the network.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
CN869 Core/Metro Voice.
•
CN860 Core/Metro BB.
•
CN902 Metro-switching IP/VPN.
Data Source/s
Generic 21CN cost model.
PG895A
Network Router (large) Core
Description
195
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the P Router..
The P Routers in the Core nodes (Provider routers) form the core of the network, aggregating traffic from a number of Provider
Edge (PE) routers and connecting to P routers in other Point of Presence (PoP) across wide-area transmission links..
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
CN860 - Core/Metro (broadband).
•
CN869 - Core/Metro (voice).
•
CN902 - Metro-switching IP/VPN.
Data Source/s
Generic 21CN cost model.
PG896A
Network Router Metro
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the P Router.
The P Routers in the METRO nodes (Provider Routers) form the core of the network, aggregating traffic from a number of Provider
Edge (PE) Routers and connecting to P Routers in other Point of Presence (PoP) across wide-area transmission links.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
CN860 - Core/Metro (broadband).
•
CN869 - Core/Metro (voice).
•
CN902 - Metro-switching IP/VPN.
Data Source/s
Generic 21CN cost model.
PG898A
Core Directors
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the the 21C Core Directors which will
be used to carry former MSIP data traffic as the MSIP Platform is closed.
Methodology
Allocates 100% to the Core/Metro (Connectivity) component CN878
PG899A
WDM-Metro Link
Description
This Plant Group captures the Capital costs associated with transmission electronics between WDM Multi Service Access Node
(MSAN) and a Metro Node.
Methodology
Allocates 100% to the Ethernet Backhaul Direct component CN616 Ethernet Backhaul Direct
PG900A
WDM-Metro Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission length related elements (Duct and Fibre) between
WDM Multi Service Access Node (MSAN) and a Metro Node.
Methodology
196
Allocates 100% to the Ethernet Backhaul Direct component CN616 Ethernet Backhaul Direct..
PG901A
Ethernet Switches
Description
This Plant Group (PG) captures the Capital costs associated with Ethernet Switches.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
CN861 MSAN - POSI Link Voice.
•
CN901 Ethernet Switches.
•
CN891 Ethernet Switch BB.
Data Source/s
Generic 21CN cost model.
PG902A
Ethernet Switch Customer Access Cards
Description
This Plant Group (PG) captures the Capital costs of Ethernet Switch Customer Access Cards contained within Ethernet Switch.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
CN882 High band customer data card
•
CN890 MSAN-Broadband Access
Data Source/s
Generic 21CN cost model.
PG911A
Operator Services Inland
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on Inland Operator Assistance (OA) 100 and 999
calls. Customers dial 100 (OA) and speak to an Operator if they require help making a call.
Methodology
This PG is apportioned to Operator Assistance (OA) components:
CO911 National Operator Assistance.
CO919 Emergency operator assistance (999).
CO941 National OA non chargeable.
CO942 Emergency OA - 999 non chargeable.
CO943 Payphones operator assistance non chargeable.
The apportionment is based on average total operator handling time and volume of calls for both services. Central Data Store
(CDS) and Call Statistics Centralisation System (CSCS) are the data sources for total calls to all operator assistance Products which
include this PG and the Operator Services OA International PG PG912A. Also used is the Operfile, this being a spreadsheet used to
derive apportionment information for Operator and Directory Assistance costs. The file is a summary of information from a variety
of other data sources and is updated monthly on a cumulative basis.
Data Source/s
•
Inland and International Directory Assistance (DA).
•
Central Data Store (CDS).
197
PG912A
•
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
•
Inland and International Operator Assistance (OA).
•
Call Centre Management Information Systems (CCMIS).
•
CSCS (for Retail chargeable).
•
6A Report (for Wholesale Chargeable).
Operator Services International
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on International Operator Assistance (IOA) 155
calls. Customers dial 155 (IOA) and speak to an International Operator if they require help making a call to a foreign country.
Methodology
This is achieved through a Period 12 Operfile, this being a spreadsheet used to derive apportionment information for Operator
and Directory Assistance costs. The file is a summary of information from a variety of other data sources and is updated monthly
on a cumulative basis.
The costs are apportioned to the following components based on average operator handling times and volumes of calls generated
by each type of call:
•
International OA (CO912).
•
Emergency OA (999) non-chargeable (CO942).
Data Source/s
PG924A
•
Inland and International Directory Assistance (DA).
•
Central Data Store (CDS).
•
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
•
Inland and International Operator Assistance (OA).
•
Call Centre Management Information Systems (CCMIS).
•
CSCS, (for Retail chargeable) and 6A Report (for Wholesale Chargeable).
Directory Enquiries Non Chargeable
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on Directory Enquires (DQ) non chargeable calls.
These type of calls include:
• Blind and Disabled calls. An Operator service available for Blind, Disabled, Hearing or Speech impaired customers on 195.
• Internal service line calls to Directory Enquiries (DQ).
• Calls from foreign operators requesting an inland number.
• Calls requesting a credit for a previous call where incorrect information had been given.
• Calls from text phones.
Methodology
Allocates 100% to the Directory enquiries non chargeable Component CO927.
PG933A
Phonebooks
Description
This Plant Group (PG) captures costs and balance sheet of Phonebook compilation.
Costs for Phonebook compilation are made up of a mixture of direct and internal trading costs for paper, printing, binding,
delivery and freight.
Methodology
Allocates 100% to the Directories component CKT12.
198
PG950C
GEA Access Fibre Spine
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of NGA fibre cable in the access
network i.e. the network between the local exchange and a BT Intermediate node (Cabinet). This includes costs associated with
clearing existing duct (to allow cable to be installed), jointing and spine cable (splicing). Specifically this PG captures costs from
the following areas/functions:
•
Pay costs associated with the installation of NGA access fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding fibre to the access network.
•
Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).
•
Depreciation costs from the following CoW – Local Fibre Spine Cable (LFSC).
Methodology
Allocates 100% to GEA access fibre spine component CL950.
PG950M
GEA Access Fibre Spine Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with the provision, installation and recovery of NGA fibre cable in
the access network i.e. the network between the local exchange and a BT Intermediate node (Cabinet). This includes costs
associated with clearing existing duct (to allow cable to be installed), jointing and spine cable (splicing). Specifically this PG
captures costs from the following areas/functions:
•
Pay costs associated with the installation of NGA access fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding fibre to the access network.
•
Costs associated with installing optical spine cable between the local exchange and last connection point before local
distribution fibre or street optical Multiplexors (MUX).
•
Depreciation costs from the following CoW – and Local Fibre Spine Cable (LFSC).
Methodology
Allocates 100% to GEA access fibre spine component CL950.
PG951C
GEA Distribution Fibre
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of NGA fibre cable in the access
network (i.e. the network between the Intermediate node (cabinet) and the customer premises). This includes costs associated
with clearing existing duct (to allow cable to be installed), jointing distribution (splicing). Specifically this PG captures costs from
the following areas/functions:
•
Pay costs associated with the installation of NGA access fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding fibre to the access network.
•
Costs associated with installing optical spine cable between the Intermediate node and the customer premises.
•
Depreciation costs from the following CoW – and Local Fibre Spine Cable (LFDC).
Methodology
Allocates 100% to the GEA distribution fibre component CL951.
199
PG951M
GEA Distribution Fibre Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with the provision, installation and recovery of NGA fibre cable in
the access network i.e. the network between the Intermediate node (cabinet) and the customer premises. This includes costs
associated with clearing existing duct (to allow cable to be installed), jointing distribution (splicing). Specifically this PG captures
costs from the following areas/functions:
•
Pay costs associated with the installation of NGA access fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding fibre to the access network.
•
Costs associated with installing optical spine cable between the Intermediate node and the customer premises.
•
Depreciation costs from the following CoW – and Local Fibre Spine Cable (LFDC).
Methodology
Allocates 100% to the GEA distribution fibre component CL951.
PG952C
GEA Electronics
Description
This Plant Group (PG) captures the NGA costs associated with the provision, rearrangement, recovery, replacement and renewal of
NGA Local Access Network equipment at the exchange end of Local Access Optical Fibre Cables.
•
Pay costs associated with the installation of NGA access electronics
•
Contract costs associated with renewal of NGA Electronics.
•
Planning costs.
•
Depreciation costs from the following CoW’s – Construction of local line exchange service module (LFXE), Circuit Provision,
Megastream Services (CPDM), Circuit Provision- Asymmetric Digital Subscriber line(ADSL) (CPDSL)
Methodology
Allocates 100% to the GEA electronics component CL952.
200
PG953C
GEA DSLAM and Cabinets
Description
This Plant Group (PG) includes the NGA costs associated with the DSLAM cabinets, cabinet shells, and cabinet tie cables relevant
for installation /provision.
•
Pay costs associated with the installation of NGA DSLAM and Cabinets.
•
Contract costs associated with renewal DSLAM and Cabinets.
•
Planning costs.
•
Depreciation costs from the following CoW – Construction, Local Network Service Module Equipment (LFME).
Methodology
Allocates 100% to the GEA DSLAM and cabinet component CL953.
PG954C
GEA Customer Site Installations
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of NGA Customer sited
equipment. Specifically this PG captures costs from the following areas/functions.
•
Pay costs associated with the installation of NGA Customer sited Installs.
•
Indirect costs of Customer sited Installs.
•
Contract costs.
•
Planning costs.
•
Depreciation costs from the following CoW – Customer Premises Provision (FTTX).
Methodology
Allocates 100% to the GEA customer site installation component CL954.
PG955M
GEA FTTC Maintenance
Description
This Plant Group (PG) includes the NGA FTTC costs associated with the repair/ maintenance of the head end electronics, and
DSLAM cabinets and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTC maintenance component CL955.
PG956M
GEA FTTC Maintenance
Description
This Plant Group (PG) includes the NGA FTTP costs associated with the repair / maintenance of the head end electronics, and
DSLAM cabinets and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTP maintenance component CL956.
201
PG957P
GEA FTTP Provision
Description
This Plant Group (PG) includes the NGA FTTP costs associated with the Provision of the head end electronics, and DSLAM cabinets
and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTP provision component CL957.
PG958P
GEA FTTC Provision
Description
This Plant Group (PG) includes the NGA FTTC costs associated with the Provision of the head end electronics, and DSLAM cabinets
and specific NGA customer equipment.
• Pay costs associated with the repair / maintenance of NGA equipment.
• Indirect costs of any repair / maintenance of NGA specific equipment.
Methodology
Allocates 100% to the GEA FTTC provision component CL958.
PG959C
Access Distribution Fibre
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of fibre cable in the access
network i.e. the network between the Node and customer’s premises (see diagram) or fibre installed up to street multiplexers.
Exchange
Customer
Node
S pine C able
D is tribution C able
This includes costs associated with clearing existing duct (to allow cable to be installed), jointing distribution. Specifically this PG
captures costs from the following areas/functions:
•
Pay costs associated with the installation of access fibre.
•
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) classes of work (CoW).
•
Contract costs associated with renewal of optical fibre.
•
Planning costs, adding fibre to the access network.
•
Costs associated with installing fibre between the node and a customer (direct feed).
•
Costs associated with installing distribution fibre or street optical Multiplexors (MUX).
•
Depreciation costs from the following CoW – Local Fibre Distribution Cable (LFDC).
Methodology
Apportionment to component is based on data supplied via the Core Transmission Circuit costing System (CTCS), using circuits and
bearer volumes as at Period 6. The data used from CTCS (refer to Data Source section) includes the percentage of fibre bearer
capacity used by a particular circuit (component).
CTCS provides the volumes of circuits over a bearer which is then converted into 2Mbit/s equivalents. These are weighted by
circuit bandwidth usage of the various bearers.
Data Source/s
Circuits and Bearer Volumes from CTCS for Period 6. Management believes this period to be reflective of the full year.
202
PG980R
Repayment Works
Description
This Plant Group (PG) captures the costs and balance sheet of Openreach repayment works.
The main role of the Repayment Works unit is to ensure the integrity and protection of BT’s network, where the highway
infrastructure is required to be altered due to promoting authority works under an act of parliament and protecting the network
from damage as a result of third party works.
The main direct classes of works (CoW) are, HK, HM, HO, HE, HPL, HDM, HUR, HSW, HL HNE.
Methodology
Allocates 100% to the Openreach Repayment Works component CK980.
PG981R
Time Related Charges
Description
This Plant Group (PG) captures the costs and balance sheet of with time scale charges. Time scales charges refer to time spend on
planned/ Unplanned jobs when a timescale charge is appropriate.
Key costs are allocated to this PG from the following classes of work (CoW):
•
TRC Timescale-Time Related charging.
•
CNS - Customer Network Services.
•
NWKB - Non Capital P&I Exchange Lines (Business).
•
NWKR - Non Capital P&I Exchange Lines (Residential).
•
CoW starting with AP/AM.
Methodology
Allocates 100% to the Openreach Time Related charges component CK981
PG982R
Openreach Managed Services for BT Wholesale
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Wholesale Products and
services or activities.
Methodology
Allocates 100% to the Openreach Managed Services for Wholesale component CK982.
PG984R
Openreach Managed Services for BT Global Services
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Global Services or activities.
Methodology
Allocates 100% to the Openreach Managed Services for Global component CK984.
PG985R
Openreach Managed Services for BT Retail
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Retail Products and services
or activities.
Methodology
Allocates 100% to the Openreach Managed Services for Retail Other component CK985.
203
PG986R
Openreach Other Activities
Description
This Plant Group (PG) captures the income for Openreach other activities on F8 Code 209942 Miscellaneous other operating
income & F8 Code 209019 Openreach Other Operating Income.
Methodology
Allocates 100% to the Openreach Other Activities component CK986.
PG989A
Special Fault Investigation (SFI)
Description
This Plant Group (PG) captures the costs and balance sheet of SFI.
A Local Loop Unbundling (LLU) SFI can be initiated by an LLU Communications Provider (CP) when a Metallic Path Facility (MPF)
or Shared Metallic Path Facility (SMPF) tests OK on the Openreach line test system, but where there might be a problem with the
CP’s Asymmetric Digital Subscriber Line (ADSL) or Symmetric Digital Subscriber Line (SDSL) service. The LLU SFI is a chargeable
investigation product which attempts to identify and resolve DSL service affecting problems.
Methodology
This PG exhausts 100% to component CO989 – Special Fault Investigations
PGT01N
Line Cards trade
Description
This Plant Group (PG) captures the costs of internal trade for Line Cards which provides routing functionality. This PG contains
both the revenue earned by BT Wholesale and the related payment made by Openreach therefore netting off to zero.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
PGT02N
Backhaul Electronics trade
Description
This Plant Group (PG) captures the costs of internal trade for Backhaul Electronics between BT Wholesale and Openreach. This PG
contains both the revenue earned by BT Wholesale and the related payment made by Openreach netting off to zero.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
PGT03N
Access Electronics trade
Description
This Plant Group (PG) captures the internal trade for Access Electronics. This PG contains both the revenue earned by BT Wholesale
and the related payment made by Openreach therefore netting off to zero.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
PGT04N
WES/BES Electronics trade
Description
This Plant Group (PG) captures costs for internal trade for WES/BES electronics. This PG contains both the revenue earned by BT
Wholesale and the related payment made by Openreach therefore netting off to zero.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
204
PGT05N
Local Loop Unbundling (LLU) Power and ventilation trade
Description
This Plant Group (PG) captures the costs of internal trade for LLU Power and Ventilation. The trade is between Wholesale and
Openreach.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
PGT06N
Network Features trade
Description
This Plant Group (PG) captures the costs of internal trade for Network Features. This PG contains both the revenue earned by BT
Wholesale and the related payment made by Openreach.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
PGT07N
Network managed service Selling, General and Administration (SG&A) trade
Description
This Plant Group (PG) captures the SG&A costs of Network managed services
This PG contains both the revenue earned by BT Wholesale and the related payment made by Openreach netting off to zero.
Methodology
Allocates 100% to the Openreach Internal Trades component CZ900.
PGT11M
Openreach Contribution to BT Basic
Description
This Plant Group (PG) captures the costs of the BT Basic (formerly known as the BT Light User Scheme) internal trade.
Methodology
Allocates 100% to the LUS trade in component CKT11.
205
7 Network Component Allocations - Network Charging
7.1 Overview
Our total network costs are disaggregated into a number of network components. Network components are used in the
provision of Wholesale Services. The way in which network components receive costs is by the attribution methods
described in detail in earlier sections of the DAM.
In this section it is important to bear in mind the distinction between a “charge” – which is the revenue amount generated
from providing a service – and “cost” – which is the cost of providing that service.
7.1.1 Wholesale Markets Costs
The total costs of the Wholesale Markets are given simply by aggregating the costs of the network components. However, it
is necessary to attribute that total cost to individual wholesale services. For services provided on a cost basis, the cost to
Wholesale Markets of providing such service is the cost of each component used in providing the service. For some
Wholesale Services, the calculation of the cost of service provision is more complicated, as each service represents the
utilisation of one or more network components, and its cost is therefore determined by an attribution of component costs.
This attribution can involve the calculation and application of route factors, usage factors or other appropriate basis of
apportioning components costs.
Components are either used in the provision of services for which there is a published price, or are used by themselves and
charged on a cost basis. Cost basis services arise in markets in which BT has not been found to have significant market
power.
Network components represent the collection of various different cost types. One of the distinguishing features of a
component is that it would usually have a single cost driver. Call switching is consumed in the provision of minutes of
conversation time, and so conversation time is used as the cost driver for switching costs. In the case of switching,
component costs or charges flow to downstream retail products via services pro-rata to the volume of call minutes
generated by each product or service.
7.1.2 Wholesale Market Revenues
Wholesale Market revenues are from network charges made to BT or to Other Communication Providers (OCPs).
In most cases, a published price is used as the basis of charging for the provision of Wholesale Services. Wholesale Services
are sold both externally to OCPs and internally to BT’s retail activities. These services will use one or more network
components.
The following sections set out:
•
An overview of network component and Wholesale Service volumes, including discussion of Route/Usage factors.
•
Discussion of the cost basis of charging.
•
Charging to downstream Retail Residual products.
•
Wholesale Market Statements.
•
A table showing components charged on a cost basis.
•
A table showing the Wholesale Service destinations of the costs of components recovered via Wholesale Service
charging.
7.1.3 Network Component Volumes
The charge made to each downstream Retail Residual product is driven by the volume of that product sold/used during the
year. The product volume also defines the component volumes via the application of Route/Usage factors.
7.1.3.1 Conveyance Products and Components
Where Retail Residual products incur a cost charge, their volumes drive the component volumes directly. Typically, where a
product is carried across a number of components, the product volume can be applied directly to each component.
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Since each component may support more than one product, the total component volume is determined by aggregating the
volume of each product that uses it.
If component Z is utilised by products A, B and C, which generate 150, 250 and 100 minutes of use respectively, then
component Z has a total volume of 500 minutes.
In some cases, one product may utilise a component more intensively than another. In this case it is necessary to factor the
product volumes. Taking the example above, if it is necessary for product C to utilise component Z twice in each minute,
then the total volume of usage of component Z is 600 minutes (150 + 250 + (100x2)). It is necessary to know the
utilisation rate of each component by each product. This relationship gives the factored volume for each component.
For the utilisation rate to be calculated, we measure calls on the network. It is not practical to measure all calls for every day
of the reporting period (in excess of 90 billion), for the purposes of network management, each telephone exchange
monitors one call in 300 passing through it. Using this facility, combined with a suitable periodicity (28 days), a statistically
significant call sample of approximately 45 million calls can be extracted from which the utilisation factors are calculated.
For each call in the sample, its routing is determined from the switch record. Each call has a switch record, this captures its
routing detail, of how the call has been carried over the network, and generates such details as distance, and the number of
times the call passes through any given component (such as a local exchange).
The sample therefore gives an observed relationship between the provision of products and the utilisation of conveyance
components.
In order to obtain the total factored volume for each conveyance component for the full year, we take the product volumes
and apply the sampled utilisation factors (e.g. product volumes x utilisation factor = factored component volume).
If Product 1 has a full year volume of 8,000 minutes, then it has generated utilisation of 8,000 minutes of component A
and 9,600 minutes of component D. Similarly, if Product 2 has a full year volume of 3,000 minutes, then there is utilisation
of component A of 3,000 and of component D of 1,500.
By aggregating the result for each product, we get a total factored volume for each component. Following the illustration
above, the factored volume for component A is 11,000 minutes, and 11,100 minutes of component D.
In order to obtain a unit cost for each component, divide the component cost (derived from Plant Group (PG) and other
cost attributions described elsewhere) by the factored volume for each component.
7.1.3.2 Transmission Volumes (including Partial Private Circuit components)
Transmission costing is based on the Core Transmission Circuit costing System (CTCS).
In simple terms, CTCS is an inventory of all circuits. Every circuit in the network is tagged and details of its route length and
routing are recorded. An example of the detail captured in CTCS is as follows:
•
The number of 2Mbit/s circuits that use 34Mbit/s bearers, and the total length of those circuits
(length is the appropriate volume for attributing the cost of 34Mbit/s bearers).
•
The number of 34Mbit/s circuits that use 34Mbit/s bearers, and the total length of those circuits.
By factoring the volumes we can take account of the fact that 16 2Mbit/s circuits can be carried on a 34Mbit/s bearer,
whilst alternatively it can carry only one 34Mbit/s circuit. CTCS, also tells us what is the total circuit length carried over
34Mbit/s bearers. Costs can then be attributed on the basis of the number of kilometres of 34Mbit/s bearers used by
2Mbit/s circuits.
The detailed workings of CTCS are considered more fully in the data source section of the DAM (section 9).
7.1.3.3 Other volumes
For other components, the volume is determined consistent with the principles outlined above. Where there is a one-forone relationship between the product and the component, then there is a direct relationship between the product volume
and the component volume. Where the relationship is not so straightforward, it is necessary to take account of different
utilisation rates by factoring the component volume.
7.1.3.4 Data sources for Volumes
Volumes are supplied from the data source most appropriate to each product consistent with reliability and ease of data
access. The major data sources used to provide volumes are as follows:
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Call Statistics Centralisation System (CSCS)
Inter Network Call Accounting (INCA)
Powerhouse/Hyperion
Charge Raising System (CRS)
Integrated Network System (INS)
Planning Assignment and Configuration System (PACS)
Core Transmission Circuit costing System (CTCS)
Customer Oriented System for Management of Special Services
(COSMOSS)
Operator Report Generation System (ORGS)
Multi Services Intranet Platform Model (MSIP)
Data Sources for Volumes_Diagram
7.2 Wholesale Markets Revenue – Cost based charging
The cost charge for the component is calculated as the historical cost of the component
The cost charge to products is determined based on the percentage of each components utilisation driven by the product.
If component Y supports a total volume for the year of 100 minutes, and product Q drives 60 minutes of that total, then
product Q is charged with 60% of the cost of component Y.
The tables set out in section 7.5 show the major charging destinations of those components charged on a cost basis. The
destinations listed cover at least 90% of the total network charge made in respect of each component.
The tables also describe the cost driver for each component.
7.3 Wholesale Markets Revenue - Charging for Wholesale Services
There is a defined relationship between the products provided by BT and network Wholesale Services. Product volumes are
translated into Wholesale Service volumes and the network charge in respect of each product is simply the aggregate of the
(price x time of day volume) charge calculated for each Wholesale Service used in providing that product. Wholesale Service
prices are those published by BT for each service as Network Charge Change Notifications (NCCNs).
7.3.1 Partial Private Circuits (PPCs) – Calculation of internal and external reported revenues
The revenue disclosed in the Regulatory Financial Statements is calculated based on a Price x Quantity (PxQ) basis. This
applies to both internal (to downstream BT divisions) and external (to other CPs) revenue.
Price (P): The price used for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is based
on the relevant entries in the Carrier Price List (CPL). The CPL is published by BT Wholesale to document contractual pricing
and generally to inform Industry of the interconnect charges in use by BT for calls originating, transiting, or terminating on
the BT network. For Partial and PPCs, these prices are contained in section B8 of the CPL.
The calculation of PPC revenue reported in the Regulatory Financial Statements is described in further detail below:
Price (P)
The price reported in the RFS for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is
based on the relevant entries in the CPL after applying certain adjustments that are explained below. This process to arrive
at the price (applied to internal and external revenue) used for reporting purposes has been discussed and demonstrated to
Ofcom.
In general, the prices used in the RFS for the revenue calculation are sourced directly from the CPL. If the relevant CPL price
for the service reported in the RFS changed within the relevant year, the price reported in the RFS is the calculated
weighted average of the relevant price applicable throughout the year, weighted by time. This is further explained below:
•
Connection Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.
•
Link Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.
•
Local End Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.
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•
Link & Local End - Enhanced maintenance charge: An enhanced maintenance charge applies to all circuits and is
separately identified in the CPL . The fixed p.a. enhanced maintenance charge is split between Local End and Link
based on the proportion of maintenance pay for the Local End & Link.
•
Terminating / Distribution prices - the price reported in the RFS is the calculated weighted average of the relevant
price applicable throughout the year, weighted by time.
•
Trunk Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.
•
Distribution and Trunk - Enhanced maintenance charge: A per km enhanced maintenance charge is separately
identified in the CPL. This was applied to all per km distribution length and per km trunk length.
•
Third Party customer infrastructure - the external charge reported in the RFS is based upon the calculated weighted
average of the relevant price applicable throughout the year, weighted by time and the mix of volumes. No separate
average price is reported in the RFS due to the mix of many different prices listed on the CPL and associated mix of
volumes.
•
Protected path variants and resilience - the external charge reported in the RFS is based upon the calculated weighted
average of the relevant price applicable throughout the year, weighted by time and the mix of volumes. No separate
average price is reported in the RFS due to the mix of many different prices listed on the CPL and associated mix of
volumes.
•
Other single payments (OSPs) - the external charge reported in the RFS is based upon the relevant reported general
ledger postings and the internal charge reported in the RFS is based upon the charge in the management accounts.
•
Point of Handover - CSH, ISH and per circuit charge: the external charge reported in the RFS is based upon the
calculated weighted average of the relevant connection and rentals prices applicable throughout the year, weighted
by time and mix of volumes.
Quantity (volumes) (Q)
The quantity (also referred to as volumes) used for both downstream BT divisions and other CPs is based on the volume of
circuits sold, connected or actively in use. The quantity used in the RFS for PPCs is based on revenue system size (RSS). RSS
is a revenue generating measure which counts only the circuits that generate revenue.
The primary volume sources used to arrive at the quantity reported in the RFS include CTCS and COSMOSS (for main link,
trunk and distribution, local ends) and Powerhouse (connections).
The rental volumes reported in the RFS is based on spot volumes. This is based on the revenue generating total volumes as
at the end of September, being the mid way point of the accounting period of each year. As such the RFS show the total
rental volumes as at 30 September of the relevant year.
The connection volumes reported in the RFS are based on the number of total new connections in the relevant financial
year.
The main adjustments made to the raw volume sources to arrive at the volumes reported in the RFS are explained below:
•
BT Internal (Own Use) circuits: The source system CTCS provides total raw volume data. As such, the volumes in the
relevant services have been adjusted to exclude the network element of BT internal (Own Use).
•
Local ends: For certain circuits, the number of local ends is calculated based on a review of the product profile. For
these circuits, a factor is applied to the volumes of circuits to convert the raw volumes from source system into local
ends. The factor applied is based on the product profile as the number of local ends per circuit can vary depending on
the product.
•
Additional service granularity for reporting purposes: The raw volumes provided by the CTCS system do not necessarily
provide volumes that meet the exact granularity requirements for reporting purposes requested by Ofcom. As such,
where necessary, the raw volumes in these products / services have been adjusted to further analyse the parent
product / service into sub-products / services for reporting purposes. The allocation to a product is calculated by using
information from the Powerhouse / COSMOSS / CTCS systems to calculate the ratio / percentage split between these
sub-products / services and applies this split to the total parent product / service volumes.
•
Average bandwidth for reporting: For reporting purposes, BT reports the Kilostream and Kilostream “N” products, but
does not distinguish between bandwidth for these products. As such, an adjustment is made to the raw volumes using
the average bandwidth of all circuits where a factor (derived from information from a system which tracks all
kilostream circuits) is applied to Kilostream “N” to convert this into 64Kbit/s equivalents.
•
Trunk and distribution: As the core transmission only measures over 2Mbit/s lengths, there is no readily available
analysis between trunk and distribution lengths for 64Kbit/s lengths, billing data is used to separate the trunk and
distribution lengths.
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7.3.2 Interconnect Specific Basket
The average charge for the interconnect specific services are taken directly from the Carrier price list.
The following table summarises the derivation of Interconnect Circuit Wholesale Service costs from the Interconnect
Specific Components within the regulatory accounts.
Component
Wholesale Service
Derivation
CO452 Interconnect local end
rental 2Mbit/s
CSI Fixed Rental
The unit costs are derived from this component cost
and the relevant circuit volume.
CO453 2Mbit/s connection
Interconnect Circuit
Connection
The unit cost is derived from the component cost
and the relevant product volumes.
IEC connection
This component also contains the costs of circuit’s
rearrangements.
Rearrangements
CO458 Interconnect Extension
Circuits (IEC) 2Mbit/s link
IEC per link rental
The unit cost is derived from the component cost
and the relevant product volumes.
CO459 Customer Sited
Interconnect cct (CSI) 2Mbit/s link
CSI per link rental
The unit cost is derived from the component cost
and the relevant product volume.
CO466 Interconnect Extension
Circuits (IEC) 2Mbit/s per km
IEC per Km rental
The unit cost is derived from the component cost
and the relevant product volume.
CO467 Customer Sited
Interconnect cct (CSI) 2Mbit/s per
km
CSI per Km rental
The unit cost is derived from the component cost
and the relevant product volume.
CO468 In Span Interconnect
circuits (ISI) transmission
ISI transmission
The unit cost is derived from the component cost
and the relevant product volume.
CO469 IBC connection
IBC Connection
The unit cost is derived from the component cost
and the relevant product volume.
7.3.3. Calculation of Wholesale Broadband Access (WBA) revenue reported in the Regulatory
Financial Statements (RFS)
WBA revenue is divided into 4 areas:
1.
End User (EU) rentals, connections and ceases.
2.
‘Pipes’ Revenues - This covers the costs of backhaul and conveyance through the core network.
3.
Broadband Boost - A solution to improving speed, quality and reliability of customer’s Broadband service.
4.
Ancillaries - This covers the remaining revenues relating to areas such as Special Faults Investigation (SFI),
cancellation charges. Wherever possible, these are identified separately with everything else remaining as Other
Ancillaries.
The revenue for rentals, connections and pipes is calculated based on a Price x Volume (PxV) basis. This applies to both
internal (to downstream BT divisions) and external (to other Communications Providers) revenue.
Price (P): The price used for both BT’s internal downstream business (i.e. BT Retail, BT Global Services & BT Northern
Ireland) and other external CPs is based on the relevant entries in the Service Provider Price List (SPPL). The SPPL is
published by BT Wholesale to document contractual pricing and generally to inform Industry of the interconnect charges in
use by BT. For WBA, these prices are contained in section 44 of the SPPL – Wholesale Broadband Services. In the case of the
IPStream Connect service, there are several variants sold, each with a different rental price and so a composite price is
calculated based on the relative mix of those services.
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Volume (V): The volumes used for both internal and external revenue are an End User (EU) System Size for rentals revenue
and the number of new provides (Period 12 cumulative) for connections. This data is taken from the Wholesale Customer
Reporting system (WCR) and the volumes are split by the three geographic markets. The market classification within the
WCR system is by exchange and is based on the Ofcom’s final statement ‘Review of the Broadband Access Markets’
(December 2010).
For pipes, bandwidth data for IPstream and Wholesale Broadband Connect is supplied by the Wholesale Product line. The
volume measure is the total contracted bandwidth (b/w) usage plus any burst. This data is not available by geographic
market and so a report called Peak Bandwidth Usage (from WCR) is used to split the bandwidth data to the three
geographic markets. For Datastream it is the volumes of Virtual Paths (VPs) from GLOSSI and market apportionment is
based on the EU rental volumes split.
For Broadband Boost, the volumes (number of jobs) are supplied by the Openreach Regulatory finance team with a
breakdown by telephone exchange supplied by the Openreach Offshore team. This breakdown enables a split to be made
by geographic market.
For ancillaries, the revenues are derived and reconciled to the BT general ledger (for external) and internal trading data (for
internal). For SFI and Migrations, the split across the 3 geographic markets is driven by the volumes for those categories
obtained from the WCR system. For the remaining ancillaries (called “other ancillaries”) a split across the 3 geographic
markets is in accordance with the rentals, connections & pipes revenue total.
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7.4 Wholesale Significant Market Power (SMP) Financial Statement Preparation
7.4.1 Overview
The principal set of Wholesale SMP statements are:
•
The Statements of Financial Performance in the Access and Other Wholesale Markets.
•
The Statements of Attribution of Wholesale Current Costs by market.
•
The Statements of Attribution of Wholesale Current Cost Mean Capital Employed.
•
The Network Activity Statement of Costs detailing the fully allocated component costs of published Network
components and where appropriate their volumes and unit costs.
•
The Wholesale Service Statements, which show their Fully Allocated Cost (FAC) unit costs, their average charges, and
their relationship with the relevant components.
•
Wholesale Market Summary Statements showing service revenue, service volumes, average service prices and service
FAC, Long Run Incremental Cost (LRIC) floors and ceilings.
7.4.2 Network Activity Statement
Component operating costs, Mean Capital Employed and capital costs calculated, as previously described, are summarised
on this statement.
Component unit costs are calculated by dividing the component fully allocated costs by the volume shown. Factored
volumes are used when calculating the component fully allocated unit cost because they more accurately reflect the
utilisation of a given component by a product.
7.4.3 Calculation of FAC based on Component Costs and Usage Factors
Wholesale Service FAC unit costs are calculated as the sum of all the relevant component fully allocated unit costs
multiplied by the appropriate usage factor for each Wholesale Service. The relationship between components and
Wholesale services is set out in section 7.7 below. Component fully allocated unit costs are taken from the Network
Statement of Costs.
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7.5 Components charged on a cost basis
The table below describes those components charged on a cost basis i.e. where a component price is based on cost.
Super Comp
Comp
Description
Driver
CB367
CB367
ISC to frontier link:
Allocated on a percentage utilisation
basis, pro-rata to the number of
international call minutes generated
by each product. Volumes for call
minute calculations are sourced from
CSCS and INCA.
This component represents the link electronics that
connect an International exchange to a Frontier
Station (This section of the Network is sometimes
referred to as the backhaul network). International
subsea cables terminate at these Frontier Stations.
CB451
CB451
Radiostream links:
Allocated directly to a single Product.
The costs of point-to-point microwave transmission
equipment.
CB561
CB561
Interconnect outpayments overseas:
Interconnect payments to Communications
Networking Services (UK) (CNS) (formerly Concert).
Allocated to Products on the volume
of call minutes generated by each
Product using the other operator's
network.
The call minutes are sourced from
CSCS and INCA and are factored to
reflect differing rates for different
Products.
CB599
CB599
Interconnect outpayments inland:
This Component will capture all costs relating to IX
(Interconnect) Payments to Other Communication
Providers (POCPs).
Allocated to products to the volume
of call minutes generated by each
Product using the other operator's
network. The call minutes are sourced
from CSCS and INCA and are factored
to reflect differing rates for different
Products.
CB782
CB782
Development: Captures the cost of development of
special applications.
Allocated directly to a single Product.
CD100
CD100
Low Tisbo 3rd Party Equipment Depn.
Allocated directly to a single Product.
CD101
CD101
High Tisbo 3rd Party Equipment Depn.
Allocated directly to a single Product.
CD102
CD102
Very High Tisbo 3rd Party Equipment Depn.
Allocated directly to a single Product.
CE103
CE103
Low Tisbo Excess Construction.
Allocated directly to a single Product.
CE104
CE104
AISBO Excess Construction.
Allocated directly to a single Product.
CO224
CO224
UCP Equipment:
Apportioned using the Number of
Calls for each product sourced directly
from the platform covering around
three quarters of the period e.g.
Periods 1-9 for the year end
apportionment.
This component captures the costs of the Universal
Card Platform (UCP) which provides cashless prepaid
or post paid Public Switched Telephone Network
(PSTN) calls.
CO227
CO227
Advanced Switching Units:
The Advanced Services Unit (ASU) is a collection of
switches, which are used for the following functions:
Customer calls for range of products FeatureNet
213
Allocated on a percentage basis to the
range of products that use this
component pro-rata to the call
minutes generated by each product.
Super Comp
Comp
Description
Driver
5000; FeatureNet 1000; Call Centre Services –
Automated Call Distribution etc.
Data source is Nemos. (Network
Management Operations System).
This relates to all connection costs in respect of
providing customers with Advanced Services Unit
(ASU) Switching facility from the Digital Local
Exchange (DLE) (Local Exchange).
CO260
CO260
Cambridge Voice Intelligent Peripheral (VIP):
Cambridge Voice Intelligent Peripheral (VIP).
Voice Intelligent Peripheral (VIP) Cambridge is an
Intelligent Network (IN) platform. This component
captures costs of the electronics used for voice
prompts.
CO261
CO261
Allocated pro-rata to the number of
call attempts made by products that
use this component. The call minutes
are sourced from INCA.
Allocated directly to a single Product.
Intelligent Contact Manager:
This component captures the costs of electronics that
provide intelligent call routing to customers for their
various call centres.
CO262
CO262
Intelligent Network links
Allocate factors sourced from Call
Volumes and Route Factor Model.
CO263
CO263
CORE IN.
Allocate factors sourced from Call
Volumes and Route Factor Model.
CO266
CO266
Common Intelligence Service Layer (CISL)
Allocate factors sourced from Call
Volumes and Route Factor Model.
CO270
CO270
Signalling Transfer Point.
Allocate factors sourced from Call
Volumes and Route Factor Model.
CO378
CO378
PC Rental 622Mbit/s link per km trunk.
Allocated pro-rata to 622Mbit/s
Trunk volumes sourced from CTCS.
CO401
CO401
Netstream equipment.
Allocated directly
CO405
CO405
DMS 100 call centre.
Costs populated from discrete assets
policy code within CoW DMC.
Allocated directly to a single product.
Digital Matrix Switches (DMS) that are used for BTs
own call centres.
CO414
CO414
Digital IPLC:
Allocated directly to a single Product.
This component captures costs such as maintenance
for International Transmission Repeater Stations.
CO415
CO415
Analogue international leased line:
Allocated directly to a single Product.
Captures cost of providing international circuits such
as connections and maintenance.
CO461
CO461
Private circuit test systems:
Testing of the analogue network is carried out to
protect provision of all services that use it.
CO483
CO483
Flexible Bandwidth Services.
Allocated to Products on the number
of circuits of each Product. Volumes
are sourced from PC Billing System/
COSMOSS (via Powerhouse).
Allocated directly to a single Product.
This component captures costs such as the installation
of Flexible Bandwidth Services (FBS) specific
214
Super Comp
Comp
Description
Driver
equipment in an exchange or customer’s premises. It
also captures the cost of FBS specific software.
CO657
CO657
Framestream switches:
Allocated directly to a single Product.
Costs of electronics and maintenance associated with
provided X75 protocol switches.
CO658
CO658
Inter Framestream switch transmission:
Allocated directly to a single Product.
Captures transmission costs between X75
Framestream switches.
CO669
CO669
IP Network Dial IP:
Allocated directly to a single Product.
Costs associated with dial product such as modems
and associated maintenance.
CO670
CO670
IP Network Fixed Access:
This component contains the cost of the following
types of equipment. BT Net Direct and Flex Network
Terminal Equipment (NTE) Routers (connect the
customer premises to the BT Network), BT Net Access
Routers (connect the MSIP) and Synchronous Digital
Hierarchy (SDH) access to the Internet Protocol (IP)
Network at Colossus Points of Presence (POPs).
CO671
CO671
IP Network VPN:
This component captures the cost of the platform that
delivers the following products. Metro, Equip,
Internet Protocol (IP) Clear and Ethernet delivery
services e.g. Fusion and Internet Protocol (IP) Clear
10100.
Allocated to Product using customer
totals on the Multi Services Intranet
Platform (MSIP) Model.
Allocated to Product using customer
totals on the Multi Services Intranet
Platform (MSIP) Model.
CO673
CO673
IP Network BT Intranet.
Allocated directly to a single product.
CO678
CO678
SIP Servers.
Allocated directly to a single product
CO927
CO927
Directory enquiries non chargeable.
Allocated directly to a single product.
CO928
CO928
DQ Number Information Network:
Apportioned to Non chargeable AGs
and Products on a minutes basis.
Inland and International Directory Enquiries (DQ) core
transmission costs.
7.6 Component to Wholesale Broadband Access Services
This section describes the apportionment of relevant component costs to Wholesale Broadband Access (WBA).
The service destinations of the published super components are shown in the in the published annex called the Calculation
of FAC based on component costs and usage factors (Annex 16) of the Current Cost Financial Statements.
Comp
Description
Published
super
component
Component: MSAN Combi card broadband access
CN003
onent
CN854
Super Component: Combi Card Broadband
215
Comp
Description
Published
super
component
onent
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of ports in
the Combi card that is situated with the MSAN asset. It is specific to the element of the Combi card that is
used for Broadband. The Combi card supplies Broadband with access into the Network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network. These exhaust to access rental services in this
case.
The apportionment in ASPIRE and is based on the relative proportion of the factored end user rental
volumes in each service. No component to service factors are applied to influence or weight the final
result so in this case factored volume equals raw volume.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts.
CN856
CN013
Component: MSAN-Metro BRAS Broadband Link
Super Component: MSAN-Metro BRAS
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
electronics in the backhaul transmission between but not including the Ethernet Switch and the Metro
node that are relevant to Broadband products. This component represents the EBD (Ethernet Backhaul
Direct) platform consumed internally by Broadband products. The backhaul is a shared element of the
network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPstream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN857
Component: MSAN-Metro BRAS Broadband Length
Super Component: MSAN-Metro BRAS
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
duct and cabling in the backhaul transmission between the Msan and the Metro node that are relevant to
Broadband products. The backhaul is a shared element of the network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPstream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
216
CN013
Comp
Description
Published
super
component
onent
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN860
CN015
Component: Metro Broadband
Super Component: Core Metro Broadband
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of
Broadband products contained within the Metro Node. The Metro Node contains elements that are
Broadband specific e.g. BRAS (Broadband Remote Access server) and also elements that are shared
among other product areas e.g. P-Routers. This component captures both the specific elements of the
Metro that are Broadband related and the Broadband related cost of the shared elements.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN884
Component: Edge Ethernet Aggregator Ports Broadband
CN008
Super Component: Edge Ethernet Ports
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of ports in
the EEA (Edge Ethernet Aggregator) that are used for Broadband products. The EEA is situated within the
Metro Node and it reported separately to the Broadband Metro component. It provides access into the
Metro Node from other parts of the network. The EEA is a shared element of the metro node.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by internal or external variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN890
CN003
Component: MSAN Broadband Access
Super Component: Combi Card Broadband Access
217
Comp
Description
Published
super
component
onent
Description
This component captures the maintenance (Profit and Loss, Pay, Non-Pay, Materials etc.) costs of the
electronics in the backhaul transmission between the MSAN and up to and including the access port on
the Ethernet Switch that are relevant to Broadband products. The backhaul is a shared element of the
network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPSream and Datastream services on the legacy network.
The apportionment is automatic in ASPIRE and is based on the relative end user rental volumes in each
service. No component to service factors are applied to influence or weight the final result.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts.
CN891
CN013
Component: Ethernet Switch Broadband
Super Component: 21CN Backhaul Link & Length
Description
This component captures the maintenance (Pay, Non-Pay, Materials etc.) costs of the electronics in the
backhaul transmission contained in the Ethernet Switch, that is the element of the Ethernet Switch which
is not used for access. This is a shared element of the network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by Internal or External variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CN903
CN015
Component: Metro-core broadband transmission
Super Component: Core/Metro Broadband
Description
This component captures the maintenance (Pay, Non-Pay, Materials etc.) costs of the electronics in the
transmission contained between Metro nodes and other Metro Nodes and Core nodes. This is a shared
element of the network.
Methodology
Apportions to both WBC (Wholesale Broadband Connect) services which are migrated onto 21c and
IPStream and Datastream services on the legacy network.
The apportionment is based on the volume of end users for WBC services which are migrated onto 21c
and IPStream and Datastream services on the legacy network factored by the bandwidth for each service.
The bandwidth used is for the WBC product by market and by Internal or External variant. The source for
the bandwidth volumes is the BT Wholesale ‘Bandwidth Measurement Tool’.
The final result is therefore the original end user volume factored by the bandwidth.
218
Comp
Description
Published
super
component
onent
Data Source/s
The source is Wholesale Finance using the Wholesale Customer Reporting system (WCR) which provides
the End User Rentals to which this component exhausts and BT Wholesale ‘Bandwidth Measurement
Tool’.
CO310
CO310
Component: ATM customer interface 2Mbit/s
Super Component: ATM Customer Interface 2Mb Cards
Description
This Component captures the cost of capital expenditure incurred from the deployment of 2Mbit/s
Customer Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These
costs fall within the ATM (Asynchronous Transfer Mode) Class of Work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of
Presence) at the edge of the ATM Network and links the customer's premises via a private circuit, to the
ATM network.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC10 (ATM customer interface 2Mbit/s ). The basis of
allocation is on mean year port volumes utilised by the range of products accessing the ATM Network
through the 2Mbit/s port card. The sum of the residual product ports (non WBA) over the total ports form
the allocation to SOC10 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager (source AIM) a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as the The Suffolk Show and specific sites such as Heathrow
Terminal 5.
Step 4 – The A end port identifiers are matched to the port file report (source element manager via AIM)
in order to determine the type of port, for example E1 (2Mbit/s), E3 (34 Mbit/s), STM1 (155 Mbit/s),
Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – Using the port allocations calculated in step 6, the total port allocation by port type and product
is calculated and a summary produced.
Step 8 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
Market
E1's
E3's
219
STM1
Comp
Description
Published
super
component
onent
DataStream
IPStream
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
Xx
Xx
Xx
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
Xx
Xx
Xx
xx
xx
xx
Step 9 – Using the summary table above, the actual percentage allocation by product and market can be
determined. For the 2 Mbit/s E1 circuits this equates to:
Market
DataStream
IPStream
E1's
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
xx%
Step 10 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
Xx
xx%
IPStream
External
Xx
xx%
Datastream
Internal
Xx
xx%
Datastream
External
Xx
xx%
The allocation calculated in step 9 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source/s
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing.
CO311
CO311
Component: ATM customer interface 34Mbit/s
Super Component: ATM Customer Interface 34 Mbit/s Cards
Description
This Component captures the cost of capital expenditure incurred from the deployment of 34 Mbit/s
Customer Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These
costs fall within the ATM (Asynchronous Transfer Mode) Class of Work (CoW).
220
Comp
Description
Published
super
component
onent
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of
Presence) at the edge of the ATM Network and links the customer's premises via a private circuit, to the
ATM network.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC11 (ATM customer interface 34 Mbit/s). The basis of
allocation is on mean year port volumes utilised by the range of products accessing the ATM Network
through the 34 Mbit/s port card. The sum of the residual product ports (non WBA) over the total ports
form the allocation to SOC11 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager [source AIM] a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow Terminal
5.
Step 4 – The A end port identifiers are matched to the port file report [source element manager via AIM]
in order to determine the type of port, for example E1 (2 Mbit/s), E3 (34 Mbit/s), STM1 (155 Mbit/s),
Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
For example, below is an extract:
Product
E1
E3
STM1
Broadband Test Ccts
Xx
Xx
Xx
Btnet
Xx
Xx
Xx
Cellstream
Xx
Xx
Xx
DataStream Mkt 0
Xx
Xx
Xx
DataStream Mkt 1
Xx
Xx
Xx
DataStream Mkt 2
Xx
Xx
Xx
DataStream Mkt 3
Xx
Xx
Xx
Enterprise Ethernet
Xx
Xx
Xx
IPEnabled
Xx
Xx
Xx
IPStream Mkt 0
Xx
Xx
Xx
IPStream Mkt 1
Xx
Xx
Xx
IPStream Mkt 2
Xx
Xx
Xx
IPStream Mkt 3
Xx
Xx
Xx
IPStream Mix
Xx
Xx
Xx
221
Comp
Description
Published
super
component
onent
Management traffic
Xx
Xx
Xx
Megastream
Xx
Xx
Xx
Miscellaneous
Xx
Xx
Xx
Site Connect
Xx
Xx
Xx
xx
xx
xx
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – Using the port allocations calculated in step 6, the total port allocation by port type and product
is calculated and a summary is produced.
Step 8 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
Market
DataStream
1
E1's
xx
E3's
xx
STM1
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
2
3
IPStream
1
2
3
xx
xx
xx
xx
xx
xx
Step 9 – Using the summary table above, the actual percentage allocation by product and market can be
determined. For the 34 Mbit/s E3 circuits this equates to:
DataStream
IPStream
Market
E3's
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
xx%
Step 10 - An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
xx
xx%
IPStream
External
xx
xx%
222
Comp
Description
Published
super
component
onent
Datastream
Internal
xx
xx%
Datastream
External
xx
xx%
The allocation calculated in step 9 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO312
Component: ATM customer interface > 155Mbit/s
Super Component: ATM Customer Interface >155 Mbit/s Cards
Description
This Component captures the cost of capital expenditure incurred from the deployment of 155 Mbit/s and
higher bandwidth Customer Interface Cards, namely, the cost of equipment provision, rearrangement or
recovery. These costs fall within the ATM (Asynchronous Transfer Mode) Class of Work (CoW). The types of
cost include pay and stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC12 (ATM customer interface >155 Mbit/s). The basis of
allocation is on mean year port volumes utilised by the range of products accessing the ATM Network
through the 155 Mbit/s port card. The sum of the residual product ports (non WBA) over the total ports
form the allocation to SOC12 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager [source AIM] a list of all Virtual Paths (VPs) on the ATM is
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow Terminal
5.
Step 4 – The A end port identifiers are matched to the port file report [source element manager via AIM]
in order to determine the type of port, for example E1 (2 Mbit/s), E3 (34 Mbit/s), STM1 (155 Mbit/s),
Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – Using the port allocations calculated in step 6, the total port allocation by port type and product
is calculated and a summary produced
223
CO312
Comp
Description
Published
super
component
onent
Product
E1
E3
STM1
Broadband Test Ccts
Xx
Xx
Xx
Btnet
Xx
Xx
Xx
Cellstream
Xx
Xx
Xx
DataStream Mkt 0
Xx
Xx
Xx
DataStream Mkt 1
Xx
Xx
Xx
DataStream Mkt 2
Xx
Xx
Xx
DataStream Mkt 3
Xx
Xx
Xx
Enterprise Ethernet
Xx
Xx
Xx
IPEnabled
Xx
Xx
Xx
IPStream Mkt 0
Xx
Xx
Xx
IPStream Mkt 1
Xx
Xx
Xx
IPStream Mkt 2
Xx
Xx
Xx
IPStream Mkt 3
Xx
Xx
Xx
IPStream Mix
Xx
Xx
Xx
Management traffic
Xx
Xx
Xx
Megastream
Xx
Xx
Xx
Miscellaneous
Xx
Xx
Xx
Site Connect
Xx
Xx
Xx
xx
xx
xx
Step 8 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market allocation is allocated proportionately
across the other three markets, both for Datastream and then for IPStream. Also, the IPStream Mix line is
allocated proportionately across the three IPStream markets. Finally the Broadband test circuits allocation
is shared proportionately across both IPStream and Datastream by market.
Market
DataStream
IPStream
E1's
E3's
STM1
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
xx
xx
xx
1
Xx
Xx
Xx
2
Xx
Xx
Xx
3
xx
xx
xx
Xx
Xx
Xx
Step 9 – Using the summary table above, the actual percentage allocation by product and market can be
determined. For the 155 Mbit/s STM1 circuits this equates to:
Market
DataStream
STM1
1
xx%
2
xx%
224
Comp
Description
Published
super
component
onent
IPStream
3
xx%
1
xx%
2
xx%
3
xx%
xx%
Step 10 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
1142602
xx%
IPStream
External
930410
xx%
Datastream
Internal
3691
xx%
Datastream
External
60710
xx%
The allocation calculated in step 9 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO313
CO313
Component: ATM Network Interface Cards
Super Component: ATM Network Interface
Description
This Component captures the cost of capital expenditure incurred from the deployment of Network
Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall
within the ATM (Asynchronous Transfer Mode) Class of Work (CoW). Types of cost include pay and stores
pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC13 (ATM network interface). The basis of allocation is on
mean year port volumes required by the ATM Network to direct all access ports across the ATM Network.
The sum of the residual product ports (non WBA) over the total ports form the allocation to SOC13 and
the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager (source AIM) a list of all transmission circuits in the ATM
platform is compiled, along with all the Virtual Paths (VPs) using each circuit. Also included is the booked
bandwidth for each VP.
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
225
Comp
Description
Published
super
component
onent
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow Terminal
5.
Step 4 – A table is then prepared showing all the transmission circuit’s IDs and the booked bandwidth on
each circuit by product (and market for Broadband).
Step 5 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
However, for each circuit there will be two network interface ports, one at each end. Therefore this
allocation is doubled to produce the final port allocation for this circuit.
Step 6 – Using the port allocations calculated in step 5, the total port allocation by port type and product
is calculated and a summary produced:
Product
Broadband Test Ccts
Btnet
Cellstream
DataStream Mkt 0
DataStream Mkt 1
DataStream Mkt 2
DataStream Mkt 3
e-line
Enterprise Ethernet
IPClear
IPEnabled
IPStream Mkt 0
IPStream Mkt 1
IPStream Mkt 2
IPStream Mkt 3
IPStream Mix
Management traffic
Megastream
Metroflex
Miscellaneous
Site Connect
Share of Port
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Step 7 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
DataStream
IPStream
Market
Share of Port
1
Xx
2
Xx
3
Xx
1
Xx
2
Xx
226
Comp
Description
Published
super
component
onent
3
Xx
Xx
Step 8 – Using the summary table above, the actual percentage allocation by product and market can be
determined. This equates to:
DataStream
IPStream
Market
1
Allocation
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
Step 9 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
Xx
xx %
IPStream
External
Xx
xx%
Datastream
Internal
Xx
xx%
Datastream
External
Xx
xx%
The allocation calculated in step 8 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO314
CO314
Component: ATM Network Switching
Super Component: ATM Network Switching
Description
This Component captures the cost of network switching ports deployed in the ATM (Asynchronous
Transfer Mode) platform.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC14 (ATM network switching). The basis of allocation is the
volume of Switched Bandwidth required by the ATM Network to carry the products across the ATM
Network. The sum of the residual product bandwidth (non WBA) over the total product bandwidth form
the allocation to SOC14 and the remainder goes to the WBA Services.
Data Source/s
AIM (Analysis and Inventory Module).
Methodology to split costs across WBA services
Step 1 – Using data from the element manager [source AIM] a list of all Virtual Paths (VPs) on the ATM is
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onent
compiled showing the VPID along with the booked bandwidth and A end port (customer interface port).
Step 2 – The first four characters of the VPID is used to determine the product.
Step 3 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow Terminal
5.
Step 4 – The A end port identifiers are matched to the port file report [source element manager via AIM]
in order to determine the type of port, for example E1 (2 Mbit/s), E3 (34 Mbit/s), STM1 (155 Mbit/s),
Ethernet etc.
Step 5 – The data is then combined to produce a list of all A end ports with their associated type (e.g. E1),
and details of how much booked bandwidth by product is using that port.
Step 6 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth on each port, a proportion of each port is allocated to the relevant products.
Step 7 – As the Ethernet ports could be used for either a 10 Mbit/s, 30 Mbit/s or 100 Mbit/s service, the
Ethernet ports are now split into their relevant bandwidth. This is done by utilising the data in the PSID
Notes field in the Portfile report [source Network Equipment Inventory NEI].
Step 8 – Using the port allocations calculated in step 6 and 7, the total port allocation by port type and
product is calculated and a summary produced. Then, in order to calculate the actual bandwidth switched
by product, the port allocations are multiplied by the port bandwidth. This is then doubled to account for
bandwidth being switched at both ends.
Step 9 – The total switch bandwidth by product is then calculated by adding together the switched
bandwidth of every port type.
Product
Broadband Test Ccts
Btnet
Cellstream
DataStream Mkt 0
DataStream Mkt 1
DataStream Mkt 2
DataStream Mkt 3
e-line
Enterprise Ethernet
IPClear
IPEnabled
IPStream Mkt 0
IPStream Mkt 1
IPStream Mkt 2
IPStream Mkt 3
IPStream Mix
Management traffic
Megastream
Metroflex
Miscellaneous
Site Connect
Grand Total
Switch Bwd
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
xx
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Step 10 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
DataStream
IPStream
Market
Switched Bwd (Mb)
1
Xx
2
Xx
3
Xx
1
Xx
2
Xx
3
Xx
Xx
Step 11 – Using the summary table above, the actual percentage allocation by product and market can be
determined. This equates to:
DataStream
IPStream
Market
Allocation
1
xx%
2
xx%
3
xx%
1
xx%
2
xx%
3
xx%
Step 12 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
1142602
xx%
IPStream
External
930410
xx%
Datastream
Internal
3691
xx%
Datastream
External
60710
xx%
The allocation calculated in step 8 is then multiplied by the above in order to calculate an allocation to
each product, internal /external and market combination.
Data Source
AIM (Analysis and Inventory Module) takes its data from the MSIP element managers, it interrogates the
ATM platform itself to compile lists of ports and routing, and the WCR System.
CO316
CO316
Component: Inter ATM transmissions
Super Component: Inter ATM Transmissions
Description
229
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Description
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component
onent
This Component captures the cost of transmission connecting all of the ATM (Asynchronous Transfer
Mode) POP´s) Points of Presence nodes together.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per
connection.
Methodology to split costs between WBA and Other services
Allocated to the WBA Services (SMxxx) and SOC16 (Inter ATM transmissions). The basis of allocation is the
volume of Virtual Path Bandwidth required by to connect the ATM Network together to carry the
products across the ATM Network. The sum of the residual Virtual Path bandwidth (non WBA) over the
total Virtual Path bandwidth form the allocation to SOC16 and the remainder goes to the WBA Services.
Data Source/s
Network Equipment Inventory (NEI).
Methodology to split costs across WBA services
Step 1 – Using data from the Network Equipment Inventory (NEI) a list of all Transmission circuits in the
ATM is compiled showing their A and B end locations and size of circuit (for example STM1).
Step 2 – Using the grid reference on the Property Portal, the eastings and northings of both ends of each
circuit (A end and B end) are added, and these are then used to calculate the radial distance of each
transmission circuit.
Step 3 – A ‘proxy’ cost for each transmission circuit is then calculated using two costs from the RFS.
1) Link - TISBO market : PPCs 140/155 Mbit/s FAC link cost.
2) Length - Wholesale Trunk Segments: trunk PPC segments on a £ per Km basis (FAC).
These costs are multiplied by 4 for the STM4 circuits, and by 4 again to get costs for an STM16 circuit.
This ensures that each transmission circuit has a value relative to its size and distance.
Step 4 – Using data from the element manager [source AIM] a list of all transmission circuits in the ATM
platform is compiled, along with all the Virtual Paths (VPs) using each circuit. Also included is the booked
bandwidth for each VP.
Step 5 – The first four characters of the VPID is used to determine the product.
Step 6 – Using data reports from NuNCAS, the Broadband’s VPIDs are matched to their originating
DSLAM and exchange. The exchange code is compared to the published Ofcom market document so that
each DSLAM (and therefore VPID) can be allocated to its relevant market. Any exchanges that are not
included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs such as
those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow Terminal
5.
Step 7 – A table is then prepared showing all the transmission circuit’s IDs and the booked bandwidth on
each circuit by product (and market for Broadband).
Step 8 – Using the booked bandwidth by product (and market) as a percentage of the total booked
bandwidth, a percentage allocation to product is calculated for each circuit.
Step 9 – The proxy costs for each circuit calculated in step 3 are then allocated out to products based on
the allocation percentages calculated above. If there are any circuits with no booked bandwidth on them,
the average allocation by product for all other circuits is used to allocate that circuits cost.
Step 10 – The total proxy cost by product is then calculated by adding together the product cost
allocations for every circuit.
Product
Cost
230
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onent
Broadband Test Ccts
Xx
Btnet
Xx
Cellstream
Xx
DataStream Mkt 0
Xx
DataStream Mkt 1
Xx
DataStream Mkt 2
Xx
DataStream Mkt 3
Xx
e-line
Xx
Enterprise Ethernet
Xx
IPClear
Xx
IPEnabled
Xx
IPStream Mkt 0
Xx
IPStream Mkt 1
Xx
IPStream Mkt 2
Xx
IPStream Mkt 3
Xx
IPStream Mix
Xx
Management traffic
Xx
Megastream
Xx
Metroflex
Xx
Miscellaneous
Xx
Site Connect
Xx
£ xx
Step 11 – In order to produce a complete allocation for Broadband, the entries in the above table
specifically for Broadband are put into a separate table. The market 0 allocation is allocated
proportionately across the other three markets, both for Datastream and then for IPStream. Also, the
IPStream Mix line is allocated proportionately across the three IPStream markets. Finally the Broadband
test circuits allocation is shared proportionately across both IPStream and Datastream by market.
DataStream
IPStream
Market
Cost
1
£ xx
2
£ xx
3
£ xx
1
£ xx
2
£ xx
3
£ xx
£ xx
Step 12 – Using the summary table above, the actual percentage allocation by product and market can be
determined. This equates to:
DataStream
Market
Allocation
1
xx%
2
xx%
231
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Description
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component
onent
IPStream
3
xx%
1
xx%
2
xx%
3
xx%
Step 13 – An allocation by internal and external is then calculated using end user volumes (source
Wholesale Customer Reporting (WCR) system).
Market 1
IPStream
Internal
1142602
xx%
IPStream
External
930410
xx%
Datastream
Internal
3691
xx%
Datastream
External
60710
xx%
The allocation calculated in step 12 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
Using data from the Network Equipment Inventory (NEI) a list of all Transmission circuits in the ATM is
compiled showing their A and B end locations and size of circuit (for example STM-1), and the WCR
System.
CO609
Component: Selling, General and Administration (SG&A) Broadband
CO509
Super Component: SG&A
Description
This Component captures the Profit and Loss (Pay, Depreciation etc.) and Balance Sheet (Fixed Asset) cost
of the Selling, General and Administration activity in Wholesale Markets supporting Broadband.
This component has been set up to specifically capture Broadband SG&A costs only and includes costs
previously allocated to CO509 (SGA Other Access).
Methodology
This component allocates to appropriate Services driven on Network Charge Control (NCC) revenue for
Wholesale Broadband Access services.
Data Source
ASPIRE report Analysis of Charges shows the NCC revenue by Service, these services are then mapped to
the appropriate SG&A component and the ‘Price’ is then used as the usage factor from Component to
Service relationship which is loaded into ASPIRE.
CO681
CO681
Component: Broadband backhaul circuits
Super Component: Broadband Backhaul Circuits
Description
Costs relating to broadband backhaul circuits. These circuits provide connection between the DSLAMs in
the local exchange to the ATM conveyance network. The costs include depreciation costs and overheads
such as accommodation, maintenance and software.
Methodology
Step 1 – a list of all DSLAMs in the network is prepared, including the exchange code [source NISM]. The
exchange code is compared to the published Ofcom market document so that each DSLAM can be
allocated to its relevant market. Any exchanges that are not included in Ofcom’s document are shown as
232
Comp
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onent
allocated to market 0. This would include DSLAMs such as those used for trials, annual events such as The
Suffolk Show and specific sites such as Heathrow Terminal 5.
Other key data items included are the DSLAM type [source NISM] and the ATM switch that the backhaul
terminates at [source ATM element manager via AIM]. The DSLAM type includes within it a reference to
the size of the backhaul circuit, either E1, E3 or STM-1.
Step 2 – Some DSLAMs do not have their own dedicated backhaul but share a backhaul between 2 or
more DSLAMs (sub tending) in a parent / child relationship.
Using data that shows the sub tending relationship between DSLAM [source FastCAP] the list of DSLAMs
is then split in two, firstly those DSLAMs that have a backhaul circuit from the ATM switch (dedicated and
parent) and secondly, child DSLAM that do not have their own backhaul but share a backhaul via another
(parent) DSLAM.
Step 3 – The VP bandwidth at each DSLAM is then added [source NuNCAS] split by IPStream and
DataStream. The total bandwidth on each backhaul circuit is then calculated, including both parent and
child bandwidth.
Step 4 – Using the grid reference on the Property Portal, the eastings and northings of all exchanges (A
end) and ATM nodes (B end) are added, and these are then used to calculate the radial distance of each
backhaul circuit.
Step 5 – The distance for the segments can be calculated from report data from NISM (Network Inventory
Management System) and NUNCAS (New Network Capacity Assignment System).
Step 6 – A ‘proxy’ cost for each backhaul circuit is then calculated using the fully allocated component
costs of PPC’s [source: ‘Wholesale Trunk Segments’ cost data from the 2009 Current Cost Financial
Statements ]. This ensures that each backhaul circuit has a value relative to its size (2 Mbit/s, 34 Mbit/s,
155 Mbit/s) and distance.
There are some exchanges where the DSLAM and the ATM node are co-located, i.e. the serving ATM
switch is in the same building as the DSLAM. In these cases, the distance is zero and no cost has been
calculated as these would be internal ‘across the floor’ circuits.
Step 7 – Where the backhaul is shared between more than one DSLAM (sub tending), this proxy cost
calculated in step 6 is then allocated proportionately to each DSLAM using the backhaul based on the
bandwidth used.
Step 8 – Finally, the proxy cost is allocated out to IPStream and DataStream products based on the
proportional bandwidth usage of each circuit.
There may be cases where the total bandwidth on a backhaul is zero, for example if the associated DSLAM
is in the process of being recovered from the network or where a new DSLAM and backhaul has been
installed but does not yet have any end users. In these cases the backhaul is allocated 100% to IPStream.
IPStream end users exist in every enabled exchange whereas DataStream end users do not. Also there
continues to be growth in IPStream end users in some exchanges but DataStream end users are declining
rapidly. Therefore IPStream would be the driver for any new provision.
Step 9 – A summary is prepared showing the total proxy cost by market and product
233
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onent
Market
Total Costs
IPStream Allocation
DataStream Allocation
0
£ xx
£ xx
£ xx
1
£ xx
£ xx
£ xx
2
£ xx
£ xx
£ xx
3
£ xx
£ xx
£ xx
Step 10 – Where a sub tending relationship exists, this could take either one of two forms. In some cases
the parent and child DSLAM are both in the same exchange and are connected to each other in the rack.
However, in other cases the parent and child DSLAMs are in different exchanges and must therefore have
a circuit connecting them.
Using the grid reference on the Property Portal, the eastings and northings of both the parent and the
child DSLAMs are used to calculate the radial distance of each circuit. The size of the circuit is determined
by looking at the child booked bandwidth and determining the smallest size circuit that would be
required.
If the bandwidth > 32 Mbit/s then an STM1 circuit is assumed
If the bandwidth is ≤32 Mbit/s but >1.75 Mbit/s then an E3 circuit is assumed
If the bandwidth is ≤1.75 Mbit/s then and E1 circuit is assumed
Step 11 – Using the above data, a proxy cost is calculated for the child to parent links following the
methodology in Steps 5 and 6.
The proxy cost is allocated out to IPStream and DataStream products based on the proportional
bandwidth usage of each circuit and a summary is prepared showing the total proxy cost by market and
product.
Step 12 – The two summary tables produced at step 9 (dedicated backhauls and parent) and step 11
(child to parent links) are added together to produce a final summary table:
Backhaul P09 2011/12 by market
Market
Total Cost
Market %
IPStream Cost
DataStream Cost
0
£ xx
xx%
£ xx
£ xx
1
£ xx
xx%
£ xx
£ xx
2
£ xx
xx%
£ xx
£ xx
3
£ xx
xx%
£ xx
£ xx
£ xx
An allocation is then calculated by market for each product. Market 0 is allocated proportionately across
the other three markets:
Market
IPStream Allocation
DataStream Allocation
1
xx%
xx%
2
xx%
xx%
3
xx%
xx%
xx%
xx%
Step 13 – An allocation by internal and external is then calculated using end user volumes [source
Wholesale Customer Reporting (WCR) system].
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onent
Market 1
IPStream
Internal
Xx
xx%
IPStream
External
Xx
xx%
Datastream
Internal
Xx
xx%
Datastream
External
Xx
xx%
The allocation calculated in step 12 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source
NISM.
ATM element manager via AIM.
FastCap.
NuNCAS.
WCR System.
CR118
CO118
Component: ADSL Connections (Wholesale)
Super Component: ADSL Connections
Description
This Component captures the costs associated with the Provision and Installation costs for Asymmetric
Digital Subscriber Line (ADSL).
The Class of Work (CoW) associated with this Component is Circuit Provision - asymmetric Digital
Subscriber Line (NCDSL). This CoW with failed Broadband provision of service activities. Types of cost
include stores and pay costs.
Methodology
Allocated to BT Wholesale WBA end user Services driven on 21CN and 20CN connection volumes.
Data Source
The source for allocating the costs is Wholesale Customer Reporting (WCR).
CR187
CO187
Component: Broadband Line Testing Systems
Super Component: Broadband Line Testing Systems
Description
This component captures the depreciation of the EvoTAM test equipment that support the relevant
Broadband products.
Methodology
The apportionment in ASPIRE is based on the relative proportion of depreciation directly attributed from
CoW WTMDF (Wholesale Test Equipment and MDF). In this case there are 3 asset policy codes within CoW
WTMDF that are directly attributable to Broadband line test systems. The cumulative value of these are
weighted against the other non broadband asset policy code to form the base.
Data Source/s
The source is the BT TSO Asset Register at P12.
CR188
CO188
Component: DSLAM overheads
Super Component: DSLAM
Description
235
Comp
Description
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super
component
onent
Overheads relating to Digital Subscriber Line Access Multiplexer (DSLAM). DSLAM equipment contains
subscriber access cards and concentration to enable broadband services over the copper access network.
The component includes costs such as accommodation, maintenance and software. This component
excludes overheads relating to capitalised pay (included with CR189).
Methodology
Step 1 – a list of all DSLAMs in the network is prepared, including the exchange code [source NISM]. The
list of DSLAMs is based on those in use as at period 9. The exchange code is compared to the published
Ofcom market document so that each DSLAM can be allocated to its relevant market. Any exchanges that
are not included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs
such as those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow
Terminal 5.
Step 2 – Based on an analysis of the various types of cost for DSLAM overheads, the overall component
costs are split into fixed costs and variable (per user) costs.
Fixed costs are allocated evenly to all DSLAMs, whereas variable costs are allocated to DSLAMs
proportionately to the number of end users served by each DSLAM.
For each DSLAM, the volume of IPStream end users and DataStream end users is shown, [source NuNCAS]
and this is used to allocate a proportion of each DSLAM fixed costs to a product. For example, a DSLAM
has 100 end users in total. 90 are IPStream end users and 10 are DataStream end users. Therefore
90/100 = 0.9 of the DSLAM costs are allocated to IPStream and 10/100 = 0.1 of the DSLAM is allocated
to DataStream. There may be cases where the total number of end users on a DSLAM is zero, for example
if the DSLAM is in the process of being recovered from the network or where a new DSLAM has been
installed but does not yet have any end users. In these cases the DSLAM is allocated 100% to IPStream.
IPStream end users exist in every enabled exchange whereas DataStream end users do not. Also there
continues to be growth in IPStream end users in some exchanges but DataStream end users are declining
rapidly. Therefore IPStream would be the driver for any new provision.
Step 3 – For each DSLAM, an analysis is performed to determine whether the DSLAM is installed to
provide end-user capacity or backhaul capacity. For those DSLAMs which are installed to provide
backhaul capacity, the fixed costs are separately identified and are allocated to the bandwidth services
within the relevant market.
Step 4 – The total allocation to product and market is summarised in a table:
Market
0
1
2
3
Total
xx
xx
xx
xx
xx
IPS-eu
xx
xx
xx
xx
xx
DS-eu
xx
xx
xx
xx
xx
IPS-bw
xx
xx
xx
xx
xx
DS-bw
xx
xx
xx
xx
xx
Step 5 – an allocation is then calculated by market for each product. Market 0 is allocated proportionately
across the other three markets:
Market
0
1
2
3
IPS Allocation DS Allocation
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
Step 6 – An allocation by internal and external is then calculated using end user volumes [source
Wholesale Customer Reporting (WCR) system].
Market 1 IPStream Internal
IPStream External
Datastream Internal
Xxx
Xxx
Xxx
xx%
xx%
xx%
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onent
Datastream External
Xxx
xx%
The allocation calculated in step 4 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source/s
NISM.
NunCAS.
WCR.
CR189
CO188
Component: DSLAM capital / maintenance
Super Component: DSLAM
Description
This component is mainly comprised of depreciation costs relating to Digital Subscriber Line
Asynchronous Modems (DSLAM). DSLAM equipment contains subscriber access cards and concentration
to enable broadband services over the copper access network. The component also includes some
overheads as a result of the capitalised pay associated with the DSLAMs.
Methodology
Step 1 – a list of all DSLAMs in the network is prepared, including the exchange code [source NISM]. The
list of DSLAMs is based on those in use as at period 9. The exchange code is compared to the published
Ofcom market document so that each DSLAM can be allocated to its relevant market. Any exchanges that
are not included in Ofcom’s document are shown as allocated to market 0. This would include DSLAMs
such as those used for trials, annual events such as The Suffolk Show and specific sites such as Heathrow
Terminal 5.
Step 2 – each DSLAM is then matched to its Connected to Network date (or planned date if not available),
[source NISM]. The asset life of DSLAMs is 6 years. All DSLAMs that are fully depreciated, i.e. more than 6
years old, based on their Connected to Network date, are excluded from further analysis.
Step 3 – – for each remaining DSLAM, depreciation and capital costs are split into fixed and variable costs
according to an analysis of the DSLAM component modularity using current prices.
Fixed costs are allocated evenly to all remaining DSLAMs, whereas variable costs are allocated to
remaining DSLAMs proportionately to the number of end users served by each DSLAM.
For each DSLAM, the volume of IPStream end users and Datastream end users is shown, [source NuNCAS]
and this is used to allocate a proportion of each DSLAM to a product.
For example, a DSLAM has 100 end users in total. 90 are IPStream end users and 10 are DataStream end
users. Therefore 90/100 = 0.9 of the DSLAM is allocated to IPStream and 10/100 = 0.1 of the DSLAM is
allocated to DataStream. There may be cases where the total number of end users on a DSLAM is zero, for
example if the DSLAM is in the process of being recovered from the network or where a new DSLAM has
been installed but does not yet have any end users. In these cases the DSLAM is allocated 100% to
IPStream. IPStream end users exist in every enabled exchange whereas DataStream end users do not. Also
there continues to be growth in IPStream end users in some exchanges but DataStream end users are
declining rapidly. Therefore IPStream would be the driver for any new provision.
Step 4 – For each DSLAM, an analysis is performed to determine whether the DSLAM is installed to
provide end-user capacity or backhaul capacity. For those DSLAMs which are installed to provide
backhaul capacity, the fixed costs are separately identified and are allocated to the bandwidth services
within the relevant market.
Step 5 – The total allocation to product and market is summarised in a table:
Market Total
IPS-eu DS-eu IPS-bw DS-bw
0
xx
xx
xx
xx
xx
1
xx
xx
xx
xx
xx
2
xx
xx
xx
xx
xx
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onent
3
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
Step 6 – an allocation is then calculated by market for each product. Market 0 is allocated proportionately
across the other three markets:
Market
0
1
2
3
IPS Allocation
xx%
xx%
xx%
xx%
xx%
DS Allocation
xx%
xx%
xx%
xx%
xx%
Step 7 – An allocation by internal and external is then calculated using end user volumes [source
Wholesale Customer Reporting (WCR) system].
Market 1 IPStream Internal
IPStream External
Datastream Internal
Datastream External
Xxx
Xxx
Xxx
Xxx
xx%
xx%
xx%
xx%
The allocation calculated in step 5 is then multiplied by the above in order to calculate an allocation to
each product, internal / external and market combination.
Data Source/s
NISM.
NuNCAS.
WCR.
7.7 Component to Wholesale Services
The table below shows each component not charged on a cost basis. The table also shows the published super components
to which the components are mapped. The service destinations of the published super components are shown in the in the
published annex called the Calculation of FAC based on component costs and usage factors (Annex 16) of the Current Cost
Financial Statements.
Comp
Component Description
Supercomp
Published Super Component
CB367
ISC to frontier link
CB367
ISC to frontier link
CB451
Radiostream links
CB451
Radiostream links
CB561
Interconnect outpayments overseas
CB561
Interconnect outpayments overseas
CB599
Interconnect outpayments inland
CB599
Interconnect outpayments inland
CB782
Development
CB782
Development
CD100
Low Tisbo 3rd Party Equipment Depn
CD100
Low Tisbo 3rd Party Equipment Depn
CD101
High Tisbo 3rd Party Equipment Depn
CD101
High Tisbo 3rd Party Equipment Depn
CD102
Very High Tisbo 3rd Party Equipment Depn
CD102
Very High Tisbo 3rd Party Equipment Depn
CDE432
3rd party Depn adjust credit PPC 64Kbit/s LE
CO432
PC rentals 64Kbit/s local end
CDE434
3rd party Depn adjust credit PPC 34 Mbit/s LE
CO434
PC rentals 34Mbit/s local end
CDE436
3rd party Depn adjust credit PPC 140 Mbit/s LE
CO436
PC rentals 140Mbit/s local end
CDE438
3rd party Depn adjust credit PPC 2 Mbit/s Copper LE
CO438
PC rentals 2Mbit/s local end copper
CDE439
3rd party Depn adjust credit PPC 2 Mbit/s Fibre LE
CO439
PC rentals 2Mbit/s local end fibre
238
CDO432
3rd party Depn adjust credit PC 64Kbit/s LE
CO432
PC rentals 64Kbit/s local end
CDO434
3rd party Depn adjust credit PC 34 Mbit/s LE
CO434
PC rentals 34Mbit/s local end
CDO436
3rd party Depn adjust credit PC 140 Mbit/s LE
CO436
PC rentals 140Mbit/s local end
CDO438
3rd party Depn adjust credit PC 2 Mbit/s Copper LE
CO438
PC rentals 2Mbit/s local end copper
CDO439
3rd party Depn adjust credit PC 2 Mbit/s Fibre LE
CO439
PC rentals 2Mbit/s local end fibre
CE103
Low Tisbo Excess Construction
CE103
Low Tisbo Excess Construction
CE104
AISBO Excess Construction
CE104
AISBO Excess Construction
CEA447
ECC Credit BES 100 Mbit/s rental
CO447
Backhaul extension services fibre etc
CEA450
ECC Credit WES/LES 10Mbit/s rtl - ext
CO450
Wholesale & LAN extension services fibre etc
CEA454
ECC Credit BNS - rental
CT454
Backhaul Network Services rental
CEB447
ECC Credit BES 1000 Mbit/s rental
CO447
Backhaul extension services fibre etc
CEB450
ECC Credit WES/LES 100 Mbit/s rtl - ext
CO450
Wholesale & LAN extension services fibre etc
CEC447
ECC Credit BES other bwidth rtl
CO447
Backhaul extension services fibre etc
CEC450
ECC Credit WES/LES 1000 Mbit/s rtl - ext
CO450
Wholesale & LAN extension services fibre etc
CED450
ECC Credit WES/LES other bwidth rtl - ext
CO450
Wholesale & LAN extension services fibre etc
CEE438
Excess Construction credit PPC 2 Mbit/s Copper LE
CO438
PC rentals 2Mbit/s local end copper
CEE439
Excess Construction credit PPC 2 Mbit/s Fibre LE
CO439
PC rentals 2Mbit/s local end fibre
CEE450
ECC Credit WES/LES 10 Mbit/s rtl - int
CO450
Wholesale & LAN extension services fibre etc
CEF450
ECC Credit WES/LES 100 Mbit/s rtl - int
CO450
Wholesale & LAN extension services fibre etc
CEG450
ECC Credit WES/LES 1000 Mbit/s rtl - int
CO450
Wholesale & LAN extension services fibre etc
CEH450
ECC Credit WES/LES bwth rtl - int
CO450
Wholesale & LAN extension services fibre etc
CEO438
Excess Construction credit PC 2 Mbit/s Copper LE
CO438
PC rentals 2Mbit/s local end copper
CEO439
Excess Construction credit PC 2 Mbit/s Fibre LE
CO439
PC rentals 2Mbit/s local end fibre
CF118
OR ADSL Connections
CO118
ADSL Connections CO118
CF136
OR SDSL Connections
CO136
SDSL Connections CO136
CF187
MPF line testing systems
CO187
LLU/BB Line Testing Systems CO187
CF188
OR DSLAM (capital / maintenance)
CO188
DSLAM (capital / maintenance) CO188
CF189
EVOTAM testing systems
CO187
LLU/BB Line Testing Systems CO187
CF369
OR ASU Links
CO369
ASU links
CF371
OR PC rentals 2Mbit/s distribution
CO371
PC rental 2 Mbit/s link per km distribution
CF373
OR PC rentals 34Mbit/s distribution
CO373
PC rental 34 Mbit/s link per km distribution
CF375
OR PC rentals 140Mbit/s distribution
CO375
PC rental 140 Mbit/s link per km distribution
CF377
OR PC Rental 622Mbit/s link per km distribution
CO377
PC rental 622 Mbit/s link per km distribution
CF381
OR PC rentals 64Kbit/s link
CO381
PC rental 64Kbit/s link
CF383
OR PC rentals 2Mbit/s link
CO383
PC rental 2 Mbit/s link
CF385
OR PC rentals 34Mbit/s link
CO385
PC rental 34 Mbit/s link
CF387
OR PC Rental 622Mbit link
CO387
PC rental 622Mbit link
CF388
OR PC rentals 140Mbit/s link
CO388
PC rental 140Mbit link
CF391
OR PC rentals 64Kbit/s link distribution
CO391
PC rental 64Kbit/s link per km transmission
CF446
OR Payphone kiosks maintenance
CO446
Public payphones operations
CF453
OR Interconnect 2Mbit/s connection
CO453
Interconnect 2Mbit/s connection
CF469
OR Intra Building Circuit (IBC) connection
CO469
Intra Building Circuit (IBC) connection
CF470
OR Intra Building Circuit (IBC) rental
CO470
Intra Building Circuit (IBC) rental
CF550
OR PC rental 34Mbit/s link WECLA
CO550
PPCs 34/45 Mbit/s Link CELA
CF551
OR PC rentals 34Mbit/s distribution WECLA
CO551
PPCs 34/45 Mbit/s Distribution CELA
239
CF553
OR PC rentals 140Mbit/s link WECLA
CO553
PPCs 140/155 Mbit/s Link CELA
CF554
OR PC rentals 140Mbit/s distribution WECLA
CO554
PPCs 140/155 Mbit/s Distribution CELA
CF781
CG101
OR SMDS
PC rentals 2Mbit/s regional trunk
CO781
CG101
SMDS CO781
PC rentals 2Mbit/s regional trunk
CG102
PC rentals 34Mbit/s regional trunk
CG102
PC rentals 34Mbit/s regional trunk
CG103
PC rentals 140Mbit/s regional trunk
CG103
PC rentals 140Mbit/s regional trunk
CG107
Protected path 2Mbit/s regional trunk
CG107
Protected path 2Mbit/s regional trunk
CG108
Protected path 34Mbit/s regional trunk
CG108
Protected path 34Mbit/s regional trunk
CG109
Protected path 140Mbit/s regional trunk
CG109
Protected path 140Mbit/s regional trunk
CG201
PC rentals 2Mbit/s national trunk
CG201
PC rentals 2Mbit/s national trunk
CG202
PC rentals 34Mbit/s national trunk
CG202
PC rentals 34Mbit/s national trunk
CG203
PC rentals 140Mbit/s national trunk
CG203
PC rentals 140Mbit/s national trunk
CG207
Protected path 2Mbit/s national trunk
CG207
Protected path 2Mbit/s national trunk
CG208
Protected path 34Mbit/s national trunk
CG208
Protected path 34Mbit/s national trunk
CG209
Protected path 140Mbit/s national trunk
CG209
Protected path 140Mbit/s national trunk
CK980
Repayment works
CK980
Openreach repayment works
CK981
Time related charges
CK981
Openreach time related charges
CK982
OR Managed Services for Wholesale
CK982
Openreach Managed Services for Wholesale
CK984
OR Managed Services for Global
CK984
Openreach Managed Services for Global
CK985
OR Managed Services for Retail
CK985
Openreach Managed Services for Retail Other
CK986
OR Other activities
CK986
Openreach other activities
CK988
Openreach Total Care
CK988
Openreach Total Care
CKT11
OR Contribution to BT Basic
CKT11
BT Basic (Low user scheme)
CKT12
Directories
CKT12
Directories
CL131
Co-mingling new provides
CL131
Co-mingling new provides
CL132
Co-mingling rentals
CL132
Co-mingling rentals
CL133
Tie cables
CL133
Tie cables
CL139
Local Loop Unbundling systems development
CL139
Local Loop Unbundling systems development
CL144
Wholesale Access specific
CL144
Wholesale Access specific
CL160
Routing & records
CL160
Routing & records
CL161
MDF Hardware jumpering
CL161
MDF Hardware jumpering
CL163
ISDN30 connections
CL163
ISDN30 connections
CL170
Internal tie cables
CL170
Internal tie cables
CL171
E side copper capital
CL171
E side copper capital
CL172
E side copper current
CL172
E side copper current
CL173
D side copper capital
CL173
D side copper capital
CL174
D side copper current
CL174
D side copper current
CL175
Local exchanges general frames equipment
CL175
Local exchanges general frames equipment
CL176
Local exchanges general frames maintenance
CL176
Local exchanges general frames maintenance
CL177
PSTN line test equipment
CL177
PSTN line test equipment
CL178
Dropwire capital & PSTN NTE
CL178
Dropwire capital & PSTN NTE
CL180
Analogue line drop maintenance
CL180
Analogue line drop maintenance
CL181
ISDN2 drop maintenance
CL181
ISDN2 drop maintenance
CL183
PSTN line cards
CL183
PSTN line cards
CL184
ISDN2 line cards
CL184
ISDN2 line cards
240
CL185
Pair gain
CL185
Pair gain
CL186
ISDN2 Network Terminating Equipment
CL186
ISDN2 Network Terminating Equipment
CL189
ISDN30 access
CL189
ISDN30 access
CL190
ISDN30 line cards
CL190
ISDN30 line cards
CL191
Public payphones line cards
CL191
Public payphones line cards
CL192
GEA tie cables between cabinets
CL192
GEA tie cables between cabinets
CL197
FTTC development
CL197
FTTC development
CL198
FTTP development
CL198
FTTP cevelopment
CL501
Service centres - Provision
CL501
Service centres - Provision
CL503
Service centres - Assurance
CL503
Service centres - Assurance
CL570
OR Service Centre - Provision Analogue/ISDN2
CL501
Service centres - Provision
CL571
OR Service Centre - Provision WLR ISDN30
CL501
Service centres - Provision
CL572
OR Service Centre - Provision WLA
CL501
Service centres - Provision
CL573
OR Service Centre - Provision AISBO
CL501
Service centres - Provision
CL574
OR Service Centre - Provision NGA
CL574
OR Service Centre - Provision NGA
CL575
OR Service Centre - Assurance Analogue/ISDN2
CL503
Service centres - Assurance
CL576
OR Service Centre - Assurance WLR ISDN30
CL503
Service centres - Assurance
CL577
OR Service Centre - Assurance WLA
CL503
Service centres - Assurance
CL578
OR Service Centre - Assurance Ethernet
CL503
Service centres - Assurance
CL579
OR Service Centre - Assurance NGA
CL579
OR Service Centre - Assurance NGA
CL590
Service Level Guarantees
CL501
Service centres - Provision
CL591
Service Level Guarantees - Internal
CL501
Service centres - Provision
CL950
GEA access fibre spine
CL197
FTTC development
CL951
GEA distribution fibre
CL197
FTTC development
CL952
GEA electronics
CL197
FTTC development
CL953
GEA DSLAM and cabinets
CL197
FTTC development
CL954
GEA customer site installation
CL197
FTTC development
CL955
GEA FTTC maintenance
CL197
FTTC development
CL956
GEA FTTP maintenance
CL197
FTTC development
CL957
GEA FTTP provision
CL197
FTTC development
CL958
GEA FTTC provision
CL197
FTTC development
CL959
Access Distribution Fibre
CL197
FTTC development
CL960
Access Fibre Spine
CL197
FTTC development
CN614
EBD External LINK
CN013
21CN Backhaul Link & Length
CN615
EBD External Length
CN013
21CN Backhaul Link & Length
CN616
Ethernet Backhaul Direct
CN013
21CN Backhaul Link & Length
CN617
Ethernet Backhaul Direct extended reach
CN013
21CN Backhaul Link & Length
CN618
Ethernet Backhaul Direct resilience
CN013
21CN Backhaul Link & Length
CN851
21CN ISDN30
CN017
Access Cards (ISDN30 services)
CN852
21CN ISDN2
CN016
Access Cards (ISDN2 services)
CN853
Combi card voice
CN002
Combi Card voice
CN854
Combi card broadband
CN003
Combi Card Access
CN855
iNode features
CN010
iNode (call set up and features)
CN856
MSAN - BRAS Broadband Link
CN013
21CN Backhaul Link & Length
CN857
MSAN - BRAS (dense) length broadband
CN013
21CN Backhaul Link & Length
241
CN860
Core/Metro (broadband)
CN015
Core/Metro (broadband)
CN861
MSAN - POSI Voice Link
CN011
MSAN - POSI (dense) link voice
CN862
MSAN - POSI (dense) length voice
CN010
iNode (call set up and features)
CN865
POSI - POSI link voice
CN004
Core/Metro (voice)
CN866
POSI - POSI length voice
CN010
iNode (call set up and features)
CN867
Border gateway & signalling firewall
CN009
Border gateway & signalling firewall
CN868
iNode voice call set-up
CN010
iNode (call set up and features)
CN869
Core/Metro (voice)
CN004
Core/Metro (voice)
CN870
MSAN - METRO Connectivity Link
CN005
MSAN-Metro connectivity (dense)
CN871
MSAN - METRO (dense) length connectivity
CN005
MSAN-Metro connectivity (dense)
CN872
MSAN - METRO Connectivity Link OR
CN005
MSAN-Metro connectivity (dense)
CN873
MSAN - METRO (dense) length connectivity OR
CN005
MSAN-Metro connectivity (dense)
CN878
Core/Metro (Connectivity)
CN007
Core/Metro connectivity
CN879
Core/Metro (connectivity) OR
CN007
Core/Metro connectivity
CN880
Low band SDSL card
CN001
Access Cards (other services)
CN881
MSAN TDM card
CN001
Access Cards (other services)
CN882
High band customer data card
CN001
Access Cards (other services)
CN883
Edge Ethernet ports voice
CN008
Edge Ethernet ports
CN884
Edge Ethernet ports broadband
CN008
Edge Ethernet ports
CN885
Edge Ethernet ports connectivity
CN008
Edge Ethernet ports
CN886
Edge Ethernet Ports Connectivity (Openreach)
CN008
Edge Ethernet ports
CN887
Ethernet Backhaul
CN005
MSAN-Metro connectivity (dense)
CN888
EBD Main Links
CN005
MSAN-Metro connectivity (dense)
CN890
Broadband MSAN access
CN003
Combi Card Access
CN891
Ethernet Switch BB
CN013
21CN Backhaul Link & Length
CN901
Ethernet Switches
CN001
Access Cards (other services)
CN902
Metro-switching IP/VPN
CN007
Core/Metro connectivity
CN903
Metro-core broadband transmission
CN015
Core/Metro (broadband)
CN904
21CN broadband service provider link
CN015
Core/Metro (broadband)
CN905
Multi Service Interconnect Link
CN015
Core/Metro (broadband)
CO210
Local exchange processor duration
CV001
Local exchange processor
CO212
Local exchange processor set-up
CV001
Local exchange processor
CO214
Local exchange concentrator set-up
CV034
Local exchange concentrator
CO215
Local exchange concentrator duration
CV034
Local exchange concentrator
CO220
Main exchange set-up
CV002
Main exchange switching
CO221
Main exchange call duration
CV002
Main exchange switching
CO224
UCP equipment
CO224
UCP equipment
CO227
Advanced Switching Units
CO227
Advanced Switching Units
CO260
Cambridge Voice Intelligent Peripheral (VIP)
CO260
Cambridge Voice Intelligent Peripheral (VIP)
CO261
Intelligent Contact Manager
CO261
Intelligent Contact Manager
CO262
Intelligent Network links
CO262
Intelligent Network links
CO266
Common Intelligence Service Layer (CISL)
CO266
Common Intelligence Service Layer (CISL)
CO270
Signalling Transfer Point
CO270
Signalling Transfer Point
CO290
OR Network Features - external
CO290
OR Network Features - external
CO291
OR Network Features - internal
CO291
OR Network Features - internal
242
CO310
ATM customer interface 2Mbit/s
CO310
ATM customer interface 2Mbit/s
CO311
ATM customer interface 34Mbit/s
CO311
ATM customer interface 34Mbit/s
CO312
ATM customer interface > 155Mbit/s
CO312
ATM customer interface > 155Mbit/s
CO313
ATM network interface
CO313
ATM network interface
CO314
ATM network switching
CO314
ATM network switching
CO316
Inter ATM transmissions
CO316
Inter ATM transmissions
CO325
Remote - local transmission link
CO325
Remote - local transmission link
CO326
Remote - local transmission length
CO326
Remote - local transmission length
CO330
Local - tandem transmission link
CO330
Local - tandem transmission link
CO340
Local - tandem transmission length
CO340
Local - tandem transmission length
CO360
Inter - tandem transmission link
CO360
Inter - tandem transmission link
CO370
Inter - tandem transmission length
CO370
Inter - tandem transmission length
CO372
PC rental 2Mbit/s link per km trunk
CO372
PC rental 2Mbit/s link per km trunk
CO374
PC rental 34Mbit/s link per km trunk
CO374
PC rental 34Mbit/s link per km trunk
CO376
PC rental 140Mbit/s link per km trunk
CO376
PC rental 140Mbit/s link per km trunk
CO378
PC rental 622Mbit/s link per km trunk
CO378
PC rental 622Mbit/s link per km trunk
CO379
Point of Handover electronics
CO379
Point of Handover electronics
CO401
Netstream equipment
CO401
Netstream equipment
CO405
DMS 100 call centre
CO405
DMS 100 call centre
CO407
Carrier Pre Selection operator set-up
CO407
Carrier Pre Selection operator set-up
CO408
Carrier Pre Selection customer set-up
CO408
Carrier Pre Selection customer set-up
CO411
OR Analogue PC link connection cct prov
CO411
OR Analogue PC link connection cct prov
CO413
2Mbit/s and above PC link connection cct provision
CO413
2Mbit/s and above PC link connection cct provision
CO414
Digital IPLC
CO414
Digital IPLC
CO415
Analogue international leased line
CO415
Analogue international leased line
CO417
64Kbit/s PC link connection cct provision
CO417
64Kbit/s PC link connection cct provision
CO418
OR PC rearrangement 64Kbit/s
CO418
OR PC rearrangement 64Kbit/s
CO421
OR Analogue PC installation
CO421
OR Analogue PC installation
CO431
OR PC Rental Analogue local end
CO431
OR PC Rental Analogue local end
CO432
PC rentals 64Kbit/s local end
CO432
PC rentals 64Kbit/s local end
CO434
PC rentals 34Mbit/s local end
CO434
PC rentals 34Mbit/s local end
CO436
PC rentals 140Mbit/s local end
CO436
PC rentals 140Mbit/s local end
CO437
OR PC rental 622Mbit/s link local end
CO437
OR PC rental 622Mbit/s link local end
CO438
PC rentals 2Mbit/s local end copper
CO438
PC rentals 2Mbit/s local end copper
CO439
PC rentals 2Mbit/s local end fibre
CO439
PC rentals 2Mbit/s local end fibre
CO446
Public payphones operations
CO446
Public payphones operations
CO447
Backhaul extension services fibre etc
CO447
Backhaul extension services fibre etc
CO450
Wholesale & LAN extension services fibre etc
CO450
Wholesale & LAN extension services fibre etc
CO451
Ethernet Access Direct Electronics
CO450
Wholesale & LAN extension services fibre etc
CO452
Interconnect local end rental 2Mbit/s
CO452
Interconnect local end rental 2Mbit/s
CO458
Interconnect Extension Circuits (IEC) 2Mbit/s link
CO458
Interconnect Extension Circuits (IEC) 2Mbit/s link
CO459
Customer Sited Interconnect cct (CSI) 2Mbit/s link
CO459
Customer Sited Interconnect cct (CSI) 2Mbit/s link
CO460
Nominated In Span I/Connect cct (ISI) transmission
CO460
Nominated In Span I/Connect cct (ISI) transmission
CO461
Private Circuit test systems
CO461
Private Circuit test systems
CO462
OR Private Circuit customer premises
CO462
OR Private Circuit customer premises
243
CO463
OR Private Circuit testing
CO463
OR Private Circuit testing
CO466
CO466
CO467
Interconnect Extension Circuits (IEC) 2Mbit/s per km
Customer Sited Interconnect cct (CSI) 2Mbit/s per
km
CO467
Interconnect Extension Circuits (IEC) 2Mbit/s per km
Customer Sited Interconnect cct (CSI) 2Mbit/s per
km
CO468
In Span Interconnect circuits (ISI) transmission
CO468
In Span Interconnect circuits (ISI) transmission
CO473
Separation & Diversity
CO474
Third Party Equipment PC
CO474
Third Party Equipment PC
CO474
Third Party Equipment PC
CO475
Other Single Payments (internal)
CO474
Third Party Equipment PC
CO476
Other Single Payments (external)
CO474
Third Party Equipment PC
CO477
Excess construction charge (internal)
CE104
AISBO Excess Construction
CO478
Excess construction charge (external)
CE104
AISBO Excess Construction
CO479
Ancillary charges (internal)
CO681
Broadband backhaul circuits
CO480
Ancillary charges (external)
CO681
Broadband backhaul circuits
CO483
Flexible Bandwidth Services
CO483
Flexible Bandwidth Services
CO484
Ethernet main links
CO484
Ethernet main links
CO485
Ethernet electronics
CO485
Ethernet electronics
CO495
IP Switch transmission
CO495
IP Switch transmission
CO506
SG&A partial private circuits
CO506
SG&A partial private circuits
CO512
Product management policy & planning
CO512
Product management policy & planning
CO552
OR PPCs 34/45 Mbit/s Local Ends CELA
CO552
OR PPCs 34/45 Mbit/s Local Ends CELA
CO555
OR PPCs 140/155Mbit/s Local Ends CELA
CO555
PPCs 140/155 Mbit/s Local Ends CELA
CO556
PPCs 34/45Mbit/s Trunk CELA
CO374
PC rental 34Mbit/s link per km trunk
CO557
PPCs 140/155Mbit/s Trunk CELA
CO376
PC rental 140Mbit/s link per km trunk
CO583
SG&A Wholesale residual
CO583
SG&A Wholesale residual
CO584
SG&A Wholesale other
CO584
SG&A Wholesale other
CO585
SG&A downstream residual
CO585
SG&A downstream residual
CO586
SG&A Interconnect
CO586
SG&A Interconnect
CO609
SG&A Broadband
CO609
SG&A Broadband
CO657
Framestream switches
CO657
Framestream switches
CO658
Inter Framestream switch transmission
CO658
Inter Framestream switch transmission
CO667
IP International peering
CO667
IP International peering
CO668
IP Network management
CO668
IP Network management
CO669
IP Network Dial IP
CO669
IP Network Dial IP
CO670
IP Network Fixed Access
CO670
IP Network Fixed Access
CO671
IP Network VPN
CO671
IP Network VPN
CO672
IP Network broadband
CO672
IP Network broadband
CO673
IP Network BT intranet
CO673
IP Network BT intranet
CO674
IP core node equipment
CO674
IP core node equipment
CO675
IP VOIP platform
CO675
IP VOIP platform
CO678
SIP Servers
CO678
SIP Servers
CO681
Broadband backhaul circuits
CO681
Broadband backhaul circuits
CO682
OR BT central circuits
CO682
OR BT central circuits
CO683
OR SP access links
CO683
OR SP access links
CO684
Broadband Virtual Paths
CO681
Broadband backhaul circuits
CO732
Number Portability set-up costs
CO732
Number Portability set-up costs
244
CO772
OR systems & development - Ethernet
CO450
Wholesale & LAN extension services fibre etc
CO823
BT Own Use PC provision
CO823
BT Own Use PC provision
CO911
National operator assistance
CO911
National operator assistance
CO912
International operator assistance
CO912
International operator assistance
CO919
Emergency operator assistance (999)
CO919
Emergency operator assistance (999)
CO927
Directory enquiries non chargeable
CO927
Directory enquiries non chargeable
CO928
DQ Number Information Network
CO928
DQ Number Information Network
CO941
National OA non chargeable
CO941
National OA non chargeable
CO942
Emergency OA (999) non chargeable
CO942
Emergency OA (999) non chargeable
CO943
Payphones operator assistance non chargeable
CO943
Payphones operator assistance non chargeable
CO989
Special Fault Investigation
CO989
Special Fault Investigation
CP371
Protected path 2Mbit/s distribution
CO474
Third Party Equipment PC
CP372
Protected Path PC rental 2Mbit/s link per km trunk
CO474
Third Party Equipment PC
CP373
Protected path 34Mbit/s distribution
CO474
Third Party Equipment PC
CP374
Protected Path PC rental 34Mbit/s link per km trunk
CO474
Third Party Equipment PC
CP375
CO474
Third Party Equipment PC
CP376
Protected path 140Mbit/s distribution
Protected Path PC rental 140Mbit/s link per km
trunk
CO474
Third Party Equipment PC
CP383
Protected path 2Mbit/s link
CO474
Third Party Equipment PC
CP385
Protected path 34Mbit/s link
CO474
Third Party Equipment PC
CP388
CO474
Third Party Equipment PC
CP413
Protected path 140Mbit/s link
Protected Path 2Mbit/s and above PC link
connection
CO474
Third Party Equipment PC
CP434
Protected path 34Mbit/s local end
CO474
Third Party Equipment PC
CP436
Protected path 140Mbit/s local end
CO474
Third Party Equipment PC
CP438
Protected Path PC rental 2Mbit/s local end copper
CO474
Third Party Equipment PC
CP439
Protected path 2Mbit/s local end
CO474
Third Party Equipment PC
CP502
Sales product management
CP502
Sales product management
CPE105
POH LE adjust CSH debit
CO379
Point of Handover electronics
CPE106
POH LE adjust CSI debit
CO379
Point of Handover electronics
CPE432
POH adjust credit PPC 64Kbits/s LE
CO432
PC rentals 64Kbit/s local end
CPE434
POH adjust credit PPC 34Mbit/s LE
CO434
PC rentals 34Mbit/s local end
CPE438
POH adjust credit PPC 2Mbit/s Copper LE
CO438
PC rentals 2Mbit/s local end copper
CPE439
POH adjust credit PPC 2Mbit/s Fibre LE
CO439
PC rentals 2Mbit/s local end fibre
CR118
ADSL connections
CO118
ADSL Connections CO118
CR136
SDSL connections
CO136
SDSL Connections CO136
CR187
Broadband line testing systems
CO187
LLU/BB Line Testing Systems CO187
CR188
DSLAM overheads
CO188
DSLAM (capital / maintenance) CO188
CR189
DSLAM capital / maintenance
CO188
DSLAM (capital / maintenance) CO188
CR369
Advanced Switching Unit Links
CO369
ASU links
CR371
PC rental 2Mbit/s link per km distribution
CO371
PC rental 2Mbit/s link per km distribution
CR373
PC rental 34Mbit/s link per km distribution
CO373
PC rental 34Mbit/s link per km distribution
CR375
PC rental 140Mbit/s link per km distribution
CO375
PC rental 140Mbit/s link per km distribution
CR377
WH PC Rental 622Mbit/s link per km distribution
CO377
PC rental 622Mbit/s link per km distribution
CR381
PC rental 64Kbit/s link
CO381
PC rental 64Kbit/s link
CR383
PC rentals 2Mbit/s link
CO383
PC rental 2Mbit/s link
245
CR385
PC rentals 34Mbit/s link
CO385
PC rental 34Mbit/s link
CR387
WH PC Rental 622Mbit/s link
CO387
PC rental 622Mbit/s link
CR388
PC rentals 140Mbit/s link
CO388
PC rental 140Mbit/s link
CR391
PC rental 64Kbit/s link per km transmission
CO391
PC rental 64Kbit/s link per km transmission
CR446
Public payhone kiosks
CO446
Public payphones operations
CR453
Interconnect 2Mbit/s connection
CO453
Interconnect 2Mbit/s connection
CR469
Intra Building Circuit (IBC) connection
CO469
Intra Building Circuit (IBC) connection
CR470
Intra Building Circuit (IBC) rental
CO470
Intra Building Circuit (IBC) rental
CR550
PC rentals 34Mbit/s link WECLA
CO550
PPCs 34/45 Mbit/s Link WECLA
CR551
PC rentals 34Mbit/s distribution WECLA
CO551
PPCs 34/45 Mbit/s Distribution WECLA
CR553
PC rentals 140Mbit/s link WECLA
CO553
PPCs 140/155 Mbit/s Link WECLA
CR554
PC rentals 140Mbit/s distribution WECLA
CO554
PPCs 140/155 Mbit/s Distribution WECLA
CR781
WH SMDS
CO781
SMDS CO781
CT134
Co-mingling power & vent
CT134
Co-mingling power & vent
CT454
Backhaul Network Services rental
CT454
Backhaul Network Services rental
CT455
BES BNS traded
CO485
Ethernet electronics
CW609
Ethernet Access Direct Fibre
CO450
Wholesale & LAN extension services fibre etc
CW610
Ethernet Access Direct Rental - External
CO450
Wholesale & LAN extension services fibre etc
CW611
Other Ethernet Rentals - External
CO450
Wholesale & LAN extension services fibre etc
CW612
Ethernet Access Direct Connection - External
CO485
Ethernet electronics
CW613
Other Ethernet Connection - External
CO485
Ethernet electronics
CW614
Ethernet Backhaul Direct Rental - External
CN013
21CN Backhaul Link & Length
CW615
Ethernet Backhaul Direct Connection - External
CN013
21CN Backhaul Link & Length
CW616
Ethernet Access Direct Rental - Internal
CO450
Wholesale & LAN extension services fibre etc
CW617
Other Ethernet rentals - internal
CO450
Wholesale & LAN extension services fibre etc
CW618
Ethernet Access Direct Connection - Internal
CO485
Ethernet electronics
CW619
Other Ethernet new provides - internal
CO485
Ethernet electronics
CW620
Oth Ethernet Services more than 1Gbit/s rental
CO450
Wholesale & LAN extension services fibre etc
CW621
Oth Ethernet Services more than 1Gbit/s conn
CO485
Ethernet electronics
CX139
WH Local Loop Unbundling systems development
CL139
Local Loop Unbundling systems development
CX160
WH Routing & records
CL160
Routing & records
CX161
WH MDF Hardware jumpering
CL161
MDF Hardware jumpering
CX170
Wholesale Internal LLU Tie Cables
CL170
Internal LLU Tie Cables
CX171
WH E-side copper capital
CL171
E-side copper capital
CX172
WH E-side copper current
CL172
E-side copper current
CX173
WH D side copper capital
CL173
D-side copper capital
CX174
WH D-side copper current
CL174
D-side copper current
CX175
WH Local exchanges general frames capital
CL175
Local exchanges general frames equipment
CX176
WH Local exchanges general frames current
CL176
Local exchanges general frames maintenance
CX178
WH Dropwire capital & PSTN NTE
CL178
Dropwire capital & PSTN NTE
CX180
WH Residential PSTN drop maintenance
CL180
Analogue line drop maintenance
CX325
WH Remote - local transmission link
CO325
Remote - local transmission link
CX326
WH Remote - local transmission length
CO326
Remote - local transmission length
CX330
WH Local - tandem transmission link
CO330
Local - tandem transmission link
CX340
WH Local - tandem transmission length
CO340
Local - tandem transmission length
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CX411
CO411
OR Analogue PC link connection cct prov
CX413
WH Analogue PC link connection cct prov
WH 2Mbit/s and above PC link connection cct
provision
CO413
2Mbit/s and above PC link connection cct provision
CX417
WH 64Kbit/s PC link connection cct provision
CO417
64Kbit/s PC link connection cct provision
CX418
WH 64Kbit/s PC link connection cct rearrange
CO418
OR PC rearrangement 64Kbit/s
CX421
WH Analogue PC installation
CO421
OR Analogue PC installation
CX431
WH PC Rental Analogue link local end
CO431
OR PC Rental Analogue local end
CX432
WH PC rental 64Kbit/s link local end
CO432
PC rentals 64Kbit/s local end
CX434
WH PC rental 34Mbit/s link local end
CO434
PC rentals 34Mbit/s local end
CX436
WH PC rental 140Mbit/s link local end
CO436
PC rentals 140Mbit/s local end
CX437
WH PC rental 622Mbit/s link local end
CO437
OR PC rental 622Mbit/s link local end
CX438
WH PC rental 2Mbit/s local end copper
CO438
PC rentals 2Mbit/s local end copper
CX439
WH PC rental 2Mbit/s local end fibre
CO439
PC rentals 2Mbit/s local end fibre
CX452
WH Interconnect local end rental 2Mbit/s
CO452
Interconnect local end rental 2Mbit/s
CX458
WH I/C Extension Circuits (IEC) 2Mbit/s link
CO458
Interconnect Extension Circuits (IEC) 2Mbit/s link
CX459
WH Cust Sited Interconnect cct (CSI) 2Mbit/s link
CO459
Customer Sited Interconnect cct (CSI) 2Mbit/s link
CX460
WH Nominated In Span I/Connect circts (ISI) transn
CO460
Nominated In Span I/Connect cct (ISI) transmission
CX462
WH Private Circuit customer premises
CO462
OR Private Circuit customer premises
CX463
CO463
OR Private Circuit testing
CX466
WH Private Circuit testing
WH I/Connect Extension Circuits (IEC) 2Mbit/s per
km
CO466
CX467
WH Cust Sited Interconnect cct (CSI) 2Mbit/s per km
CO467
Interconnect Extension Circuits (IEC) 2Mbit/s per km
Customer Sited Interconnect cct (CSI) 2Mbit/s per
km
CX468
WH In Span I/Connect circuits (ISI) transmission
CO468
In Span Interconnect circuits (ISI) transmission
CX484
WH Ethernet main links
CO484
Ethernet main links
CX501
WH Service centres - Provision
CL501
Service centres - Provision
CX502
WH Sales product management
CP502
Sales product management
CX503
WH Service centres - Assurance
CL503
Service centres - Assurance
CX552
WS PPCs 34/45 Mbit/s Local Ends WECLA
CO552
OR PPCs 34/45 Mbit/s Local Ends WECLA
CX555
WS PPCs 140/155 Mbit/s Local Ends WECLA
CO555
PPCs 140/155 Mbit/s Local Ends WECLA
CX571
WS Service Centre - Provision WLR ISDN30
CL501
Service centres - Provision
CX572
WS Service Centre - Provision LLU
CL501
Service centres - Provision
CX577
WS Service Centre - Assurance LLU
CL503
Service centres - Assurance
CX681
WH Broadband backhaul circuits
CO681
Broadband backhaul circuits
CX682
WH BT central circuits
CO682
OR BT central circuits
CX683
WH SP access links
CO683
OR SP access links
CX732
Wholesale Number Portability set-up costs
CO732
Number Portability set-up costs
CX880
WH Low band SDSL card
CN001
Access Cards (other services)
CX975
WBA Other Residual
CO672
IP Network broadband
CY118
OR ADSL Connections
CO118
ADSL Connections CO118
CY139
Local Loop Unbundling systems development
CL139
Local Loop Unbundling systems development
CY160
Routing & records
CL160
Routing & records
CY161
MDF Hardware jumpering
CL161
MDF Hardware jumpering
CY502
Sales product management
CP502
Sales product management
CY572
OR Service Centre - Provision WLR LLU
CL501
Service centres - Provision
CZ252B
OR residual elimination
CZ252B
OR residual elimination
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CZ252N
WH residual elimination
CZ252N
WH residual elimination
CZ900
Openreach Internal Trades
CZ900
Openreach Internal Trades
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7.8 Equivalence of Input Charges to WBA Markets
As a result of the June 2011 Ofcom Statement ‘Changes to BT and KCOM’s regulatory and financial reporting 2010/11
update’, BT is required to report separately on certain Openreach charges for the WBA Markets.
These Openreach charges are required be reported on Equivalence of Input (EOI) basis.
In ASPIRE, a set of cost components are used by WBA services. These components are split into 2 categories:
a)
b)
Costs and capital employed by Openreach.
Costs and capital employed by non-Openreach Lines of business. This covers charges directly from divisions such
as BT Wholesale and BT TSO.
The EOI methodology replaces certain underlying Openreach component costs and capital employed apportioned to WBA
services with charges based on EOI prices. The notional creditors relating to these components, however, are not replaced
with an EOI charge. This is because the notional creditor represents the amount owed by BT Wholesale to BT Openreach for
EOI services and therefore still needs to be reported.
The component costs that the EOI charges replace in the WBA markets are:
Component
CF118
OR ADSL Connections
CF187
MPF line testing systems
CF188
OR DSLAM (capital / maintenance)
CL139
Local Loop Unbundling systems development
CL161
MDF Hardware jumpering
CL162
Software jumpering
CL170
Internal tie cables
CL172
E-side copper current
CL174
D-side copper current
CL175
Local exchanges general frames equipment
CL176
Local exchanges general frames maintenance
CL572
OR Service Centre - Provision LLU
CL577
OR Service Centre - Assurance LLU
CN856
MSAN-Metro BRAS Broadband Link
CO989
Special Fault Investigation
CP502
Sales product management
The approach employed to generate EOI charges is to identify the Openreach services used as an input for the WBA
services. Volumes of these services used for WBA are established. The most appropriate market volume driver available is
identified based on either BT Openreach or BT Wholesale data. Weighted average EOI prices are applied to these volumes
to get the total charges. The charges are allocated to services within each of the geographic markets with the best available
volume driver.
SMPF connections
The weighted average SMPF connection charge from Openreach is multiplied by the BT Wholesale end user connection
volumes for each of WBA market 1 and market 2. The volumes include IPstream, Datastream and Wholesale Broadband
Connect (WBC). These charges are pointed to the following published WBA services in each of market 1 and market 2:
•
Internal End Users Connections.
•
External End Users Connections.
SMPF rentals
The weighted average SMPF rental charge from Openreach is multiplied by the BT Wholesale end user rental service
volumes for each of WBA market 1 and market 2. The volumes include IPstream, Datastream and WBC. These charges are
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pointed to the following published services for market 1 and 2:
•
External Datastream End user access Rental.
•
Internal IPstream Connect End user access Rental.
•
External IPstream Connect End user access Rental.
•
Internal Ancillary Charges and Other.
SMPF ceases
The weighted average SMPF cease charge from Openreach is multiplied by the BT Wholesale end user cease volumes for
each of WBA market 1 and market 2. The volumes include IPStream, Datastream and WBC. These charges are pointed to the
following published services for market 1 and 2.
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
Special Faults Investigation (SFI)
A weighted average SFI charge is calculated from the total BT Openreach SFI volumes and prices. The volumes include SFIs
for IPstream, Datastream and WBC. The BT Openreach volumes are based on the number of SFI1s and SFI2 modules.
Volumes by geographic market are obtained from BT Wholesale. The BT Wholesale volumes are counted by total SFI jobs
and not SFI modules. i.e. 1 SFI job may involve 1 or more SFI modules. The BT Wholesale SFI job volumes are factored to
align to the BT Openreach SFI module volumes. The factored BT Wholesale volumes are then used to allocate the EOI
charges to market 1 and 2.
The SFIs volumes are split into 2 categories – (1) those SFIs for which BT Wholesale make a charge and (2) those SFIs that
are not charged for.
(1) For those SFIs that BT Wholesale charges for, the weighted average Openreach EOI SFI charge is multiplied by the
volume of SFIs charged for by BT Wholesale. These charges are pointed to the following published services for market
1 and 2:
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
(2) For those SFIs that BT Wholesale does not charge for, the weighted average Openreach SFI charge is multiplied by the
volume of non-charged SFIs. The volume of non-charged SFIs are split by service based on BT Wholesale end user
rental volumes for IPstream, Datastream and WBC. These charges are pointed to the following published services for
market 1 and market 2:
•
External Datastream End User Rentals.
•
External IPStream Connect End User Rentals.
•
Internal IPStream Connect End User.
•
Internal Ancillary Charges and Other.
Broadband Circuit Regrades (from IPStream and Datastream to Wholesale Broadband Connect)
The weighted average Openreach charge multiplied by the volume of Regrades for market 1 and market 2. These charges
are pointed to the following published services for market 1 and market 2:
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
Broadband Conversions (used for the rationalisation of DSLAMs)
Total Openreach charges are calculated by multiplying the BT Openreach volume of conversions by the weighted average
Openreach EOI price. The total Openreach charge is then apportioned to WBA market based on the total number of
IPStream and Datastream BT Wholesale end user rental volumes. These charges are pointed to the following reported
services for market 1 and market 2:
•
External Datastream End User Rentals.
•
External IPstream Connect End User Rentals.
•
Internal IPstream Connect End User.
•
Internal Ancillary Charges and Other.
Tie Cables (e.g. for wiring HDF to DSLAMs / MSANs)
The Openreach charges are calculated by multiplying the BT Openreach volume of tie cable by the weighted Openreach EOI
price. This is done for each tie cable type and then aggregated to get a total charge. The charges are then allocated to
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Market 1 and Market 2 based on total BT Wholesale end user rental volumes for IPstream, Datastream and WBC. These
charges are pointed to the following reported services for market 1 and market 2:
•
External Datastream End User Rentals.
•
External IPstream Connect End User Rentals.
•
Internal IPstream Connect End User.
•
Internal Ancillary Charges and Other.
SMPF expedite
The Openreach charges are calculated by multiplying the BT Openreach volume of expedited installed SMPF lines by the
weighted Openreach EOI price.
The charges are then allocated to WBA market/service based on total BT Wholesale end user connection volumes. These
charges are pointed to the following reported services for market 1 and market 2:
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
Migrations (CP to CP)
The weighted average Openreach EOI price is multiplied by the number of migrations for both market 1 and market 2:
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
SMPF Enhanced care
Total Openreach charges are calculated by multiplying the BT Openreach volume of SMPF Enhanced Care lines by the
weighted Openreach EOI price. The total Openreach charge is then apportioned to market 1 and market 2 based on the
total BT Wholesale end user rental volumes for IPstream, Datastream and WBC. These charges are pointed to the following
reported services for market 1 and market 2:
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
Broadband Boost
The weighted average Openreach EOI price is multiplied by the number of migrations for both market 1 and market 2 (The
average charge is not published but is based on daily rate based cost of a BT ‘Converged’ engineer and the average number
job completed):
•
Internal Ancillary Charges and Other.
•
External Ancillary Charges and Other.
The EOI costs for the ‘Internal Ancillary Charges and Other’ and ‘External Ancillary Charges and Other’ services are reported
in the total costs for market 1 and market 2 within Annex 11 of the Current Cost Financial Statements. These costs,
however, are not reported at the service level on a unit basis because they are comprised of a mixture of services that do
not have common volume measure.
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8 Data Sources
Summary list of Data Sources:
AIM
GL
OMC
Amethyst
Geneva/Avalon
OMP
ARSCC
GNCM
ORBIT
ARTISAN
GLOSSI
ORGS
ASC
GT-X
PACS
ASPIRE
HORIZON
Pathfinder
ASSURE
IBIS
Payphones Data Warehouse
ATLAS
iBuy
PCNBS
BT Design Billing System
ICARUS
PIBS
CAMERA
IIDA
PIRM
CARDVU
INCA
PRAVAT
CARISMAN
INS
Powerhouse
CC-MIS
IXBS
PULSE
CDS
JRMIS
RIDE SDW
CID
LLCS
SCARS
CISL
LLFN
SPG
COSMOSS
LoP List
Siebel
CSCS
LRIC
SMART
CSS
MEDIATOR
SWIFT
CTCS
Merlin
TEM
CWSS
Metro Node/I-Node/MSAN Node
TITAN
DESS
MSIP
TXD-OP
DSR
NCDB
WCR
EASI
NEMOS-DR
Willow
EBC
NetView
Work Manager
EM
Nexus
EXPRES
NIMS
FastVPlan
NJR
FAR
NRS
Featurenet
NCAS
GALILEO
NUNCAS
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AIM (Analysis and Inventory Module)
Collects detailed engineering data from the 5620 Network Manager, the 5620 Stats Collector, and major Alcatel Core and Edge Switching
Products.
Amethyst
Amethyst is the web application which provides aged debt & net cash analysis. It uses debt and credit information from various billing
platforms & financial systems across all lines of business within BT for both the UK and the rest of the world. This information is then
consolidated to provide analytical reports on a customer’s debt, credit profile, on a weekly or monthly basis and gives visibility on net cash
positions for each customer. This supports the cash flow management strategies. In Amethyst data level access security is provided for
each group (Openreach, RoBT, BT Group) depending on the access rules for the corresponding users; access approval is controlled by Line
manager & System Owner.
ARSCC (Administration of Repair Service Controls by Computer)
ARSCC Clear codes and activity codes system. An example of Clear code: Fault not found – code 151, 152; and of activity codes. Time
with Supervisor (TWS) code, General Activities (GA) code.
ARTISAN (Automated Reporting and Target Investment System for the Access Network)
ARTISAN is a multi-functional application which encompasses a number of work areas, including:
•
Fault Volume Reduction – reports which allow the user to identify fault prone network, assess the work required to resolve the
issue, generate a proactive uplift task and dispatch to the relevant resource for execution.
•
Allow the Planning community to monitor their return on investment (Post Execution Monitoring).
•
To interrogate individual circuits to assess the likelihood of a fault based on historic line test results (overnight routing) /
historical faults (utilisation of Customer Diagnostic Tool / Bloodhound functionality).
•
Access Capital Repair – to generate Cable Length Renewals as a result of a Customer reported fault where we cannot provide
service due to no spare capacity.
•
Record observed defects in the access network (using the A1024 process) – including safety and non-safety defects.
•
Identify / dispatch safety related defects to external suppliers for resolution (e.g. broken Joint Box cover / Low Wire).
•
Provides an interface to the Manage Hazard and Warnings (which allows MHW to display information relating to potential
hazards to the external work force).
•
Record where CPs have access to Poles allowing them to connect their network to Openreach plant.
•
Act as a data repository for Poling information (maintain a record of the Pole population) enabling the Pole Test community to
execute their testing regime.
ASC (Automated Supply Chain)
ASC is the name given by BT to the AmSOFT system and its interfaces.
The ASC primary functions include: stores purchasing, order management, stock control, accounting systems and foreign currency
invoices.
The ASC procurement matching module is used to authorise invoices.
The accounting arrangements for the payment of foreign currency invoices are described in Group Accounting Manual (GAM).
ASPIRE (Accounting Separation Product and Integrated Environment)
ASPIRE is a regulatory reporting system used to perform the fully allocated cost attribution for Accounting Separation (AS). The ASPIRE
system apportions/allocates all costs ledgered on our General Ledger (GL) to BT’s regulatory markets and services. This is explained in
detail in section 2 and 3 of the DAM.
ASSURE (Accounting Separation SecUre Repository Environment)
ASSURE is an Oracle platform based system. Its main function is to deal with the validation of data ready for submission to ASPIRE for
processing.
ATLAS
ATLAS is a sub-ledger for IXBSng - UK, holding authorised billed amounts (both Accounts Payable (AP) and Accounts Receivable (AR)) for
253
international voice products, by carrier and allowing them to be allocated to Receipts and Payments.
BT Design Billing System
The BT Design Billing System provides details of projects/ programmes of work.
•
Development - BT TSO prepare a work package agreement, with details of the development work to be completed and the charges
to be raised. This is agreed both operationally and financially by the Market Unit (MU). TSO enters the details of these charges on to
an internal system called BCAT (Business Case Analysis Tool). The charges are agreed monthly on BCAT by MU finance.
•
Support and maintenance - This charge cover the costs of providing support and maintenance of BT internal systems. The MUs agree
with TSO which systems will be maintained and what cover i.e. 24/7 or just working hours 5 days a week. The annual charge is
agreed for all the system to be maintained and supporting work done on behalf of all BT. This is reviewed if any systems are ceased or
new system implemented.
•
Overheads and other fixed charges - Annual agreed charges to cover all BT overheads for supporting development work called
Development Non Volume another trade is overheads etc.
CAMERA (Campaign Management Evaluation and Reporting on AXSYS)
CAMERA is BT's multimedia tool enabling Marketing, Marketing Finance and external agencies to work simply and effectively together
online and in real time.
Users manage the financial and procurement aspects of campaign activity and have instant and easy access to:
•
Briefs.
•
Status reports.
•
Presentations.
•
Audio and video files.
•
A library of marketing material, both of current activities and earlier campaigns.
The process works as follows:
CAMERA Actions
FEC
Brief and Budget and Purchase Requisition Process/Flow
Campaign Managers
Supplier Managers
NON CAMERA actions
Supplier
Invoices/Accounts Payable
Create Budget Structure for
the year – includes: budget,
signatories, GL code and OU
Code
Sign off Business cases
allocated to products and
services and give a “Case No”
Authorise B&B – Reference
to Case No and Value
Raise the Brief & Budget
(B&B) via Camera- Select
appropriate budge criteria,
Case No, and Value
Raise Purchase
Requisition (PR) against
authorised budgets, based
on detailed estimate from
supplier
>£1k
FEC given to PR – check for
appropriateness against
budget
<£1k
Estimate forwarded to
Specifier
PR & estimate received
for checking for
appropriate
procurement process
i.e. tender, negotiate etc
Detailed Purchase
Order (PO) raised
Accrual reports done at the
end of each month – based on
commitments made to
supplies i.e. PO’s raised
Camera_Diagram1_260
509
Invoice checked and
authorised confirming
receipt of Goods and
Services
PO received for
work to
commence
Invoice sent for
work completed
Payment received
Author: Simon Smales Issue v10. Date: Dec8, 2003
Finance modifies the Program details on CAMERA.
254
Invoice validated against
the PO and scanned into
CAMERA
Authorised invoices
forwarded to Accounts
payable in Manchester for
payment
Finance modifies the Business Case details on CAMERA.
The Campaign Manager submits electronically the modified brief and budget to Finance.
Finance re-authorise the campaign, as the campaign status changes automatically to "Unauthorised" if the budget is being increased.
CARDVU (Charging and Routing Data Verification Utility)
CARDVU is a centralised tool which automatically checks all types of digital exchange charging and routing data against a national
reference source (NCDB). CARDVU is one of the key systems in obtaining metering approval from BABT for BT’s pricing of calls made by
customers. In addition, CARDVU verifies the exchange data which causes INCA records to be generated. The INCA system is expanding to
cope with the volume of business as more interconnections with other Network Operators are implemented. This revenue is dependent
upon manually entered data on exchanges being correct and CARDVU ensures this through its automatic verification against the INCA
Routing Reference Model.
CARISMAN (Calls And Reliability Information System for Managing and Analysing the Network)
The main purpose of CARISMAN is to provide support to the Network Performance Management, Capacity Management and Interconnect
Operations functions within BT. CARISMAN is a key reporting system for BT’s 20C and 21C Public Switched Telephone Network (PSTN) call
performance measurement. It collects daily call sample data extracts from the TXD-OP and FusionWorks systems which it holds as base
data and also summarises network call performance measures for use within and outside BT. CARISMAN enables reporting and in depth
analysis of network performance measures (mainly telephony).
CARISMAN data in:
•
20C PSTN Exchange source stats data collected daily via MEDIATOR (BDS).
•
21C PSTN Exchange source stats data collected daily via FusionWorks (FTP).
•
CISA extract of OLO number ranges weekly via TXD-OP (FTP).
•
EXPRES monthly extract of exchange details and Processor to Concentrator (FTP).
•
NEMOS-DR monthly extract of network routes (FTP).
•
CDS monthly extract of working lines per Zone (FTP).
•
TXD-OP monthly missing hours files (FTP).
•
ISS weekly extract of Other Communications Providers network routes (FTP).
CARISMAN data out:
•
ePI monthly results file (FTP).
•
NetView weekly and monthly results files (FTP).
CC-MIS (Call Centre – Management Information System)
This is a management system for Operator Assistance calls. CC-MIS obtains data from the Lucent 5ESS switches in Operator Assistance
centres (100/999) from around the country. Information captured includes: number of calls in a queue, time taken to answer, call
distribution and performance management.
The source of information for Directory Assistance products is the CDS system (Central Data Store).
CDS (Central Data Store)
CDS is a large Quality Of Service (QoS) data warehouse. It is accessed either through Business Objects (BO) or through a web front end.
The CDS warehouse contains volume data for Public Switched Telephone Network (PSTN) and Private Circuits. CDS receives volume data
relating to Public Switched Telephone Network (PSTN) from Customer Service System (CSS), and it receives volume data relating to Private
Circuits from Customer Oriented System for the Management Of Special Services (COSMOSS).
CID (Central Information Database)
This system is both a comprehensive data warehouse of financial and non-financial data at General Ledger (GL) level, volumes and a suite
of application software, which enables management information to be extracted. The applications run on the system and service the
needs of Group and Divisional financial analysts, field operational managers and business planners.
CISL (Common Intelligent Service Layer)
This platform provides usage statistics by call type, which are used for cost apportionment from CISL Plant Group to components.
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This data source is also used for SPR cost allocations. SPRs are the Signalling Equipment sited between the PSTN and the CISL.
COSMOSS (Customer Oriented System for the Management Of Special Services)
COSMOSS is a database used for the provision of Private Services. This includes the provision of Partial Private Circuits sold to Other
Communication Providers (OCPs). It is used for new orders, re-arrangements and ceases. It acts as a 'Front End' and generates activities
for the various groups involved in providing a Private Circuit.
It includes Working System Size (WSS) for costing purposes and Revenue System Size (RSS) for revenue purposes.
Reports generated from this system include working system sizes by circuit type (Kilostream and Megastream etc.).
An adjustment is made to the Kilostream N volumes. Copper depreciation costs, obtained from the Life of Plant (LoP) List, are adjusted
where two pairs are used to supply Kilostream N (exchange lines only use one copper pair, therefore any Product using two copper pairs
will get a higher amount apportioned to it). Once this adjustment is made, data from COSMOSS is fed into CDS and MIS, where the data is
checked and then loaded into ASPIRE.
CSCS (Call Statistics Centralisation System)
CSCS is a dynamic and flexible 24x7 Management Information System which processes raw data in the form of priced call records
collected from BT billing systems. It derives additional data fields, summarises the data and feeds it into an Oracle database. CSCS is used
for reporting information about the calls made by customers using BT fixed lines (post & pre-payment) and BT Mobility offerings.
The information relates to those calls that are paid for by the renter of the line and reports the number of calls, the summed call durations
and summed revenues of those calls (before bulk usage discounts have been applied). It is not primarily intended to provide data on
individual customers, but summarised data for specific groups of customers (e.g. Business, Residential, those with common discount
options, Geographic Area). These groupings are based either on the calling line identity (CLI) or on codes supplied in the call record from
upstream systems.
This provides an almost immediate view of call revenue & volumes, which enables accurate and timely income accounting to be
maintained and provides a ready analysis of volume activity. Where data supplies are less timely, the window for receipt of call records is
kept open longer (e.g. Mobility). The exception to this is when the first day of the month falls on a working day, in which case the results
for the final day of each calendar month must be available by WD1 of the following month (instead of the normal WD2). This is to enable
the full month out-turns for the previous month to be posted to the General Ledger (GL) on WD1.
On average, CSCS processes around 50m call records per day, with summarised details of 18bn calls, worth around £1.5bn of annual
revenue to BT, stored in the database.
CSCS is interrogated directly using Business Objects and is used as a data source for:
•
•
•
•
•
•
•
•
•
Financial Turnover (Revenue) Reporting in the GL
Regulatory reporting of volumes & costs/revenue
Tracking overall business performance against budgets
Tracking performance & impact of marketing campaigns and activity (inc. advertising)
Forecasting volume and revenues for budget & target setting
Management Reporting
Pricing of calls – judging impact/likely impact of changes
Measuring Price Elasticity
Tracking performance of new products e.g. BT Mobility, Broadband Voice, BT Communicator
CSCS provides direct feeds to the following systems with Call Revenue and Volume data:
•
the GL (via iOTA) (Enterprise Code Extract, Earned Revenue Cube)
•
Powerhouse
•
ICIP/CCBA
There are currently seventeen separate databases populated by daily process Runs:
•
CSS PSTN (chargeable calls dialled from BT fixed PSTN & ISDN post-payment lines and Coinbox lines (excluding Freephone)). Data
derived from priced call records from Service Domain Processor (SDP).
•
Operator Assistance Calls (calls originated from BT and some OLO fixed lines). Data derived from priced call records from Operator
•
Select Services (special facility calls from BT fixed lines e.g. 1471, Call Divert). Data derived from RT29 and RT22 records from SDP.
Assistance Flexible Charging (OAFC) system via Cashless Services Platform (CSP).
256
•
Avalon (Consumer chargeable calls dialled from BT fixed PSTN & ISDN post-payment lines, BT Charge card and BT Text (excluding
•
Avalon Network Features (special facility calls from BT fixed lines e.g. 1471, Call Divert). Data derived from RT29 records from
Freephone)). Data derived from priced call records from Geneva via the GIB (Geneva Information for Business).
Geneva via the GIB.
•
Avalon Late Data Consumer data received too late to be included as current data in the main Avalon table.
•
Avalon Operator (calls originated from BT). Data derived from priced call records from Geneva via the GIB.
•
Avalon Late Operator Consumer operator data received too late to be included as current data in the main Operator data table.
•
Avalon Migrated Unbilled CDRs for Billing Accounts that have migrated from CSS to Avalon.
•
Antillia (Business chargeable calls dialled from BT fixed post-payment lines, BT Charge card and BT Text (excluding Freephone)).
Data derived from priced call records from Geneva via the GIB.
•
Antillia Network Features (special facility calls from BT fixed lines e.g. 1471, Call Divert). Data derived from RT29 records from
Geneva via the GIB.
•
Antillia Late Data Business data received too late to be included as current data in the main Antillia table.
•
Antillia Migrated Unbilled CDRs for Billing Accounts that have migrated from CSS to Antillia.
•
Antillia Operator (calls originated from BT). Data derived from priced call records from Geneva via the GIB.
•
Antillia Late Operator Business operator data received too late to be included as current data in the main Operator data table.
•
Business Mobility calls priced on DISE3G (from MDS).
•
Consumer Mobility calls from Geneva via the GIB.
Data is analysed by various dimensions and is held for 90 days (daily and hourly data) and 18 months (monthly).
The primary dimensions of the data that are of interest are:
•
Who made the calls? E.G. Business Customers, Residential Customers, Trading Unit (customers grouped according to the Account
Management teams in BT).
•
What type of connection was used? e.g. PSTN, ISDN, PCO, RCB, Home Highway, Business Highway , GPRS, GSM
•
What type of call? Local and National (Geographic & Non-Geographic), International, Internet
•
Geographic analysis in terms of where callers are making their calls from is available at Exchange (NNI), CSS District and Zone level,
for PSTN.
•
Geographic analysis of International calls destinations is available by country and in most cases can be further separated by calls
terminating on fixed lines and those that terminate on International Mobiles.
CSS (Customer Service Systems)
CSS manages all aspects of Customer Service on the Public Switched Telephone Network (PSTN), from order capture and Job
Management, fault handling, work management and billing. CSS deals with engineering time through National Job Recording (NJR)
system. CSS also supports network management, call itemisation, Issue Handling and line testing. The CSS headquarters system allows
national changes (e.g. new Products) to be configured in a uniform, speedy and cost effective manner.
The diagram below provides a CSS Overview:
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CSS Overview – Simplified View
Customer
Account
Appointment
Details
Call Data
Reminders
Customer
Queries
Customer
Fault
Report
Contract
Receipts
What The
Customer Sees
Contact
Handling
Order
Handling
Customer
Order
SM I/F
Billing
Receipting Centre
CSS
Customer Data
Switch Manager
Network
Systems
Network Data
What BT Sees
Work Manager
Job
Manager
Accounting
and
Statistical
Information
Repair
Handling
Line Test
Works Instructions
MIS
Directories
Marketing
Information
CSS Overview
CTCS (Core Transmission Circuit costing System)
CTCS is set out by the following sections:
Contents
01) Purpose of CTCS
02) Key information required to understand CTCS process
03) CTCS Inputs
04) CTCS Process
05) CTCS Outputs
06) Access Database Inputs
07) Access Database Process
08) Access Database Output
09) Component to Product Apportionment
10) Use of CTCS for other apportionments
11) Route to Radial
12) Trunk and Distribution
13) WECLA (West East and Central London Area)
14) CTCS Glossary
CTCS - Overview
BT’s Core Transmission network is primarily made up of Electronics (Plesiochronous Digital Hierarchy (PDH) and Synchronous Digital
Hierarchy (SDH)), Cable and Duct. Combinations of these assets (i.e. two units of electronics joined by fibre and duct) make up what is
known as a “bearer”. See diagram below.
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The bearers within the network carry numerous circuits which relate to several different products and bandwidths. CTCS is used as the
volume source to record all network entities (i.e. the individual assets), bearers and circuits so that costs can be apportioned in an
objective manner. This enables product managers to get a view of their costs and to find out exactly how these have been driven
according to volumes, bandwidth and utilisation of the network.
Duct and Cable
Duct connects BT’s Network sites with each other and with customers’ premises. Both Access and Core Transmission cables run through
this duct network with access cables primarily connecting the customer to the local exchange and Core cables primarily interconnecting
Network sites.
A cable infrastructure interconnects BT core transmission, access and switching/routing assets. The Integrated Network Systems (INS)
network management system differentiates Core Transmission from Access cables, and within those two groups, the type of cable used –
e.g. metal, fibre, e-side (from the exchange to the customer point) and d-side (from the customer point to the network terminating
equipment (e.g. phone socket).
PDH
The PDH was introduced in BT’s Core Transmission network during the 1970’s, as primary 2Mbit/s line systems began to saturate the core
network. PDH was developed as a way to multiplex 2Mbit/s traffic to higher order capacity through a set of transmission hierarchies.
However, due to the limitations of the PDH technology several multiplexers are required at each point in which circuits are required to
move up the bandwidth scale. This results in multiplex mountains as illustrated below:
2-8
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
2-8
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
34-140
LTE
LTE
34-140
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
2-8
2-8
2-8
2-8
8-34
8-34
2-8
2-8
2-8
2-8
2-8
CTCS_PDH
Access to an individual 2Mbit/s circuit is impossible without undergoing a long de-multiplexing process. For this reason PDH is considered
259
as an “end-to-end” technology: it does not support adding and dropping circuits at intermediary stages as allowed in SDH line systems.
The PDH platform provided an initial ‘Bearer System’ functionality within the core network. A bearer system transports circuits of various
bit rates, between two geographic points.
A circuit is likely to require several bearers to cover the distance from origin to destination. Therefore a 2Mbit/s circuit between London
and Brighton may travel on an 8Mbit/s bearer between London and Croydon, then on a 140Mbit/s bearer Croydon and Gatwick, and
finally on an 8Mbit/s bearer between Gatwick and Brighton.
Five circuit rates can be carried over PDH line systems: DS-1 (2Mbit/s), DS-2 (8Mbit/s), DS-3 (34Mbit/s), DS-4 (140Mbit/s) and DS-5
(565Mbit/s). Those rates are obtained by successive multiplexing as shown on above.
SDH - SDH technology was included to BT’s Core Transmission Platform in the late 1980’s as a way to provide reliable and cost effective
transmission services to the end-customer.
A circuit is likely to require several bearers to cover the distance from origin to destination. Therefore a 2Mbit/s circuit between London
and Brighton may travel on an STM-1 bearer at 155Mbit/s between London and Croydon, then on an STM-16 bearer at 2.5Gbit/s
between Croydon and Gatwick, and finally on an STM-1 bearer between Gatwick and Brighton.
SDH offers a number of benefits:
Minimum number of breakdowns:
- Rapid restoration of service
- Separation of circuits
- Rapid circuit configuration
Cost effectiveness:
- Fewer number of components,
- Interchange ability of components amongst suppliers.
Compatibility with previous PDH technology and with Other Communication Providers (OCPs) Transmission networks.
These reasons compelled BT to choose SDH as its main Core Transmission technology. It must however be noted that the PDH architecture
is still dominant for capacity provision to the Public Switched Telephone Network (PSTN) platform. The SDH Network is organised into a
number of different tiers.
Tier 0
Tier 1
Supercell
Tier 2
Cross-connect
Add-drop
mux
Tier 3
Tier 4
CTCS_SDH
Tier 1 – Trunk Network connecting about 30 nodes covering Britain. Transmission Links are STM-16 (2.48Gbit/s) and STM-64 (10Gbit/s).
Traffic is groomed by Digital Cross Connects (DXCs) for onward transmission and allows incoming signals to be terminated on a node.
Tier 2 – Regional Network connecting in a ring a number of ADMs. Two configurations are available: Cell – 450 nodes in Britain - and
Supercell – 80 nodes.
Tier 3 – Smaller rings that may be necessary to interconnect the Access Network to the Tiers 2.
Tier 4 – SDH access. The ADM is located in customer premises.
Tier 0 refers to the international network infrastructure.
Since 1999, BT has had a network build of SDH technologies at higher bandwidths as an overlay to the basic network shown above. These
include the MSH and UBB networks.
The Marconi Synchronous Hierarchy (MSH) is a type of SDH equipment in the network. The Marconi Synchronous Hierarchy (MSH)
260
network is used to deliver the Multi-Service Intranet Platform (MSIP) and other broadband services while supporting processes will be
kept as similar to existing SDH processes as possible.
Most circuits on the MSH network are at 155Mbit/s. The later Ultra Broadband (UBB) supports bit rates of 2.4Gbit/s and 10Gbit/s.
1. Purpose of CTCS
CTCS is an Oracle database that records all Transmission network elements, bearers and circuits and uses this information to provide
apportionments for Accounting Separation purposes.
The overall objective of the CTCS process is to provide data to enable apportionments of costs from Class Of Work (CoW) to Plant Group,
Plant Group to Component and Component to Products.
The following diagram represents the end to end CTCS process. The key steps which are described in this section are as follows:
•
CTCS Inputs
•
CTCS Process
•
CTCS Outputs
•
Access Database Inputs
•
Access Database Process
•
Access Database Outputs
•
Component to Product Apportionment
Planning
Assignment and
Configuration
System (PACS)
Integrated
Network System
(INS)
Usage
Factors
Product
Tagging
CTCS Process
Data Feeds
from Offline
Models
Access Database
LTXN
Apportionment
s
AG129
DTNACSP
DTTM
LTME
CTCS_EndToEndProcess
CTCS derives all the core transmission apportionments. This principally involves Duct and cable assets and operating costs which are later
apportioned over core transmission plant groups and subsequently over core transmission components.
2) Key information required to understand CTCS process
In order to understand the CTCS, it is vital to understand several key words which are used repeatedly in the following sections:
Element/Network Element
This can refer to any type of asset or grouping of assets in the Core Transmission network, but will usually refer to either a Circuit, a Bearer
(as explained above) or an individual asset (e.g. electronics). It is the relationship between these items which allows for apportionment
from Class Of Work (CoW) and Plant Group (groupings of assets) to Components (Bearers) and Product (Circuits).
3) CTCS Inputs
261
Diagram: Overview of CTCS inputs
Integrated Network System (INS)
INS is an operational system which also feeds data into Core Transmission Circuit costing System (CTCS).
The database records information on BT's Core Transmission Network. It also holds locations of operational buildings and record of the
digital connections between these buildings and interconnection points between various cables and circuits. It also holds information on
the capacity utilisation of bearers within the BT Network. This information is used to enable engineers to plan and route new circuits
through the network.
A snapshot of the network at Period 6 (mid-point of the financial year) is uploaded into CTCS, containing the following information:
262
PACS (Planning Assignment and Configuration System)
PACs is an operational database. It contains an inventory of the equipment used in the Synchronous Digital Hierarchy (SDH) Network
(including Access SDH).
Network planners use PACS as an operational tool, to assist in the effective provision of new circuits across the SDH Network.
This system supports the planning of the SDH Network. It provides support for orders to be entered manually or via an interface called,
'Service Solution Design.' These orders can then be configured and routed across the SDH Network.
A snapshot of the network at Period 6 (mid-point of the financial year) is uploaded into Core Transmission Circuit costing System (CTCS),
containing the following information:
263
Product Tagging
Product Tagging is a further input to Core Transmission Circuit costing System (CTCS) and is carried out in a separate database. This
includes the following information related to circuits:
•
Individual Circuit identifier
•
A and B end 1141 code (sourced from COSMOSS)
•
Platform
•
Product
Circuit ID and Platform information is extracted from INS and PACS above.
Information from COSMOSS is downloaded and used to provide the A and B ends of each circuit.
A series of 60 queries are run to identify the product to which the circuit should be linked, this is mostly based upon information that is
available from the individual circuit identifier (for example Megastream products will be identified by the prefix MXUK).
Product tagging does not influence apportionments of cost from Class Of Work (CoW) to Plant Group or from Plant Group to component.
However, these are used in the final apportionment of components to products (see later section for detail).
Usage Factors
The final input to CTCS relates to usage factors. These are required in order to correctly weight the many different variations of circuit
bandwidths that can utilise bearers and bearers that “hit” network elements.
Examples of the tables which are fed into CTCS can be seen below:
Synchronous Digital Hierarchy (SDH) Circuit to Bearer Relationships
As an example, it can be seen that 1008 E1 (2Mbit/s) circuits can use a single S16 (or STM-16) bearer.
4) CTCS Process
The process by which CTCS creates the necessary data for apportionment can be summarised in the diagram below. This highlights the
introduction of several tables which are described in greater detail on the next page.
Diagram: Overview of CTCS Process
264
Network Element – All
elements of network and
their relationship with each
other sourced from INS/
PACS data
Origin
NE List – More detailed
version of Network
Element table
Destination
NE List – More detailed
version of Network
Element Table
The Translation Table –
Transates elements into
Entities
End to End Circuits – List
of all circuits created
from INS/PACS data
The Translation Table –
Translates elements into
Entities
The Relationship Table –
Provides volume for each
Entity relationship –
Output to Access
Database
CTCS_Process
Network Element Table
Circuit no
A-End NETWORK
ELEMENT CODE
A 1141 A
A 1141 B
B-End NETWORK
ELEMENT CODE
BL
BL
SSS-63762
SSS-63762
BL/B
PR/E
SNE-20870
SSS-63762
BL/B
PR/E
SNE-20871
873104
BL/DA-PR/UG 2809 JDD
873104
873104
CTCS_NetworkElementTable
Data from the Network Element table is as shown above.
This illustrates the fact that the circuit BL/DA-PR/UG 2809 JDD uses the bearer SSS-63762. In turn, this bearer uses two network
elements, SNE-20870 and SNE-20871.
However, this does not provide sufficient information to know exactly what assets are being used and how this fits into the appropriate
Plant Group or Component. Two tables, ‘End to end circuits’ and ‘NE List’ are used to find the Brick Type for the circuit and its components
retrospectively.
The Brick type is a code that identifies the details of the element by the following six properties:
Brick code – the type of element i.e. a circuit (CT), bearer (BE)
Brick sector – where the element sits in the network i.e. tier, core or local
Brick sub code – further identifies the type of element i.e. identifies cable as fibre or copper, a mux type etc.
Brick bit rate – the speed of the element
Brick usage – identifies if in service for Plesiochronous Digital Hierarchy (PDH) circuits only
Brick product – the product that the circuit is assigned to
End To End Circuits Table
By using the End to End circuit table, further data relating to this circuit can be obtained:
265
Circuit
No
A-End
NETWORK
ELEMENT
CODE
A1141
B1141
Radial
Length
Circuit
Length
Brick
Type
Brick
Code
Brick
Bitrate
Brick
Product
Platform
873104
BL/DA-PR/
UG 2809
JDD
BL
BL
27.216
52
CT///E1//
LPF
CT
E1
LPF
SDH
CTCS_EndToEndCircuitTable
Circuit
No
A-End
NETWORK
ELEMENT
CODE
A1141
B1141
Radial
Length
Circuit
Length
Brick
Type
Brick
Code
Brick
Bitrate
Brick
Product
Platform
873104
BL/DA-PR/
UG 2809
JDD
BL
BL
27.216
52
CT///E1//
LPF
CT
E1
LPF
SDH
CTCS_EndToEndCircuitTable
However, the key item of information is the Brick Type, this element is therefore identified as a 2Mbit/s (E1) circuit (CT) which relates to
the product “LPF” (LPF).
The appropriate brick codes relating to the bearer and elements can be obtained from the Network Elements (NE) List table which
expands upon the data given in the Network Elements (NE) table.
Network Elements (NE) List Table
Network
Network
Element No Element code
A1141
B1141
Radial
Length
Platform
1321095
BL/DA-PR/UG
2809 JDD
BL
BL
27.216
SDH
1288803
SSS-63762
BL/B
PR/E
27/216
SDH
1180174
SNE-20871
PR/E
1180173
SNE-20870
BL/B
Cable
Length
Brick
Code
Brick
Brick
Sub-code Sector
Brick
Bitrate
Brick
Product
Brick Type
E1
LPF
CT///E1//LPF
CT
52
BE
SDH
SDH
2
S16
BE/2//S16//
MU
SDH
2
S16
MU/2/SDH/
S16//
MU
SDH
2
S16
MU/2/SDH/
S16//
CTCS_BrickTypes
From the data illustrated above, brick types have now been identified for the circuit, bearer and elements (far right column). The three
elements of the circuit are:
One Bearer in Tier 2 with a bit rate of STM-16 “BE/2//S16//” and two multiplexers in Tier 2 Synchronous Digital Hierarchy (SDH) with a
bit rate of STM-16 “MU/2/SDH/S16//”.
Accounting Separation (AS) Translation
The brick types can then be used in order to link the network elements to a particular Accounting Separation (AS) Building Block/Plant
Group or Cost Pool/Component as shown below:
Platform
Brick Type
SDH
MU/2/SDH/S16//
NZ01111
Y
SDH
BE/2//S16//
NN01127
Y
SDH
CT///E1//LPF
NR14651
Y
Entity Code
Entity Flag
DT Flag
D
Driver Code
AS Component
D000627
N/A
D000181
PG325T
D000073
CO330
CTCS_ASElement
5) CTCS Output
Private Circuit volumes are now Revenue System Size (RSS), where they were previously Working System Size (WSS). This is achieved by
cross-referencing CTCS with COSMOSS (which feeds into the billing system) and omitting circuits that are not billed for. Circuit lengths are
calculated by the radial distance between the Last Serving Exchange (LSEs). This distance is apportioned to Trunk and Distribution based
266
on the ratio of the distance from LSEs to Parent Tier 1 Exchanges and the distance between Parent Tier 1 Exchanges, in-line with billing.
6) CTCS - Access Database Inputs
The objective of the Access database is to allow some key adjustments to be made to the output CTCS data.
The inputs to the Access database are as shown below:
Diagram: Overview of CTCS Access Database Inputs
Fixed Percentage Adjustments
A small number of off-line apportionments have to be calculated and input to the database.
These relate to a number of PDH asset policy codes, i.e. CF14, CF56 and CF64 which cover Plesiochronous Digital Hierarchy (PDH) Optical
Repeater Equipment.
Fixed percentages are also calculated offline for the following Synchronous Digital Hierarchy (SDH) Classes of Work (CoW):
SDHC – Customer Add-drop Multiplexers (ADMs)
SDHA – Exchange Add-drop Multiplexer (ADMs)
SDHX – Cross-Connects.
SDHK/SDHL – Line Terminating Equipment
SDHP – Marconi Synchronous Hierarchy (MSH) assets
All of the above are termed Fixed Percentage apportionments in the database as they are not generated by the database itself (compared
with Driver Based (DB) and Usage Factor (UF) based apportionments that are calculated in the database based on volumes of drivers or
factored volumes of drivers as described later in the document).
The Fixed Percentage apportionments for Synchronous Digital Hierarchy (SDH) asset policy codes SDHA and SDHC, for example, are
calculated by apportioning the Period 6 depreciation based on the volumes and relative costs of SMA-1, SMA-4 and SMA-16 ADMs.
The calculations for the apportionment of these SDH Classes Of Work (CoW) to Plant Groups (PGs) are based on Period 6 depreciation and
volumes of Add-drop Multiplexer (ADM) equipment.
7) Access Database Process
The Access database sorts the data from the CTCS output and adjustments into a series of tables in order to produce the final Class Of Work
(CoW) to Plant Group and Plant Group to Component apportionments.
Summary of Input files required:
•
CTCS factored hits file detailing hits and cable distance.
•
CTCS element count file.
•
Direct fibre distance.
•
LoP List P6.
•
SDH equipment prices.
CTCS factored hits match the Plant Group to a specific network element and then gives a count of the number of pieces of equipment and
thus a usage factor.
267
The raw file looks like this:
The Equipment count file is a lookup of all the network equipment and is based on the following criteria:
•
Number of entries of Bearer.
•
Tiers and Type of Tier.
•
MSH Equipment count.
•
SDH equipment count.
•
PDH equipment count.
•
Tier 4 equipment count.
•
Radio Links.
Direct fibre and its associated Km are obtained directly from CTCS.
LoP List. This is an extract from the asset register which details the individual CoW class of work and its associated policy code. The policy
code and its description is a unique identifier which is used to feed the access database as it will detail the individual network elements
under each CoW. The asset register holds the depreciation for each CoW and asset policy code which is then used within the access
database and mapped to CTCS. The data is extracted at P6.
The example extract below is based on the SDH CoW and demonstrates the level of granularity that the LoP List holds, the lower level
descriptions and the YTD Depreciation. The access data bases use this information along with CTCS to map costs.
The CoW to plant group table lists all the transmission asset policy codes and indicates which plant groups they should be mapped to.
Details are also given of the driver used for the allocation.
The following drivers have been used to allocate asset policy codes:
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Factored hits on 1/16 LTEs
Indirect
Factored hits on 1/4 LTEs
Length of all cable types
Factored hits on 140/565 Mux
Length of fibre cable
Factored hits on 2/34 Mux
Length of transverse screen cable
Factored hits on 2/8 Mux
No of 140mb radio links
Factored hits on 34/140 Mux
No of 34mb radio links
Factored hits on 8/34 Mux
No of 4/1
Factored hits on broadband kit
No of 8mb radio links
Factored hits on cross connects 4/4
No of PDH LS Metallic 140MBits/s
Factored hits on customer located ADM STM-1
No of PDH LS Metallic 2MBits/s
Factored hits on customer located ADM STM-16
No of PDH LS Metallic 34MBits/s
Factored hits on customer located ADM STM-4
No of PDH LS Optical 140MBits/s
Factored hits on exchange located ADM STM-1
No of PDH LS Optical 2MBits/s
Factored hits on exchange located ADM STM-16
No of PDH LS Optical 34MBits/s
Factored hits on exchange located ADM STM-4
No of PDH LS Optical 565MBits/s
Factored hits on MSH51-Customer sited
No of PDH LS Optical 8MBits/s
Factored hits on MSH51-exchange sited
Notional hits-all allocated to one plant group
Factored hits on MSH64-customer sited
Total no of muxes
Factored hits on MSH64-exchange sited
Use length of analogue circuits
CTCS_Inputs_Table5AssetPolicyCodes
•
“Factored Hits”
Most of the SDH equipment is allocated to plant groups using factored hits. This is essentially where a bearer type hits a particular piece of
equipment. The hit is factored to take into account the capacity of the bearer, so that higher capacity bearers pick up a large proportion of
costs.
•
“Distance of cable”
Cable asset policy codes are allocated using distance of cable by bearer type and Tier.
•
“No of….”
Most of the PDH kit is allocated using the no of each type of kit. A separate plant group has been set up for each PDH kit type, so the
driver is used to allocate 100% to that particular plant group.
•
“Other drivers-sub drivers”
A number of asset policy codes require a collective base to allocate. These are:
- Length of all cable types
- Total no of muxes
•
“Indirect”
Indirect drivers are assigned to those policy codes which cannot be allocated directly. These are normally miscellaneous lines on the LoP
List. Indirect asset policy codes are allocated to plant group based on the allocation of direct driver based codes.
Once all the information that is required is feed into the access database we can then start to process it.
The extract below is an example of the translation tables highlighting the CoW, its description or policy code, what the driver is, for
example factored hits, what category it’s allocated to i.e. Plant Groups.
269
8) CTCS - Access Database Outputs
As noted above, the Relation Table is the key output from the Access Database as this provides the detail of all apportionments between
entities (i.e. Class Of Work (CoW) to Plant Group and Plant Group to Component).
However, another step is required in order to finalise the process by apportioning Components to Products.
9) CTCS - Component to Product Apportionments
There are three key data sources for the final stage of Core Transmission apportionments:
CTCS for Private Circuit apportionments
Call volumes from Powerhouse for Public Switched Telephone Network (PSTN) apportionments
Powerhouse for Local End apportionments
In the case of Private Circuit apportionments, CTCS summarises the detail of the End to End Circuits to record the overall volume and
length of circuits (see CTCS process).
“Link” based components will use circuit volumes while “length” based components will be based on circuit length data extracted from
the table.
10) Use of CTCS for other apportionments
CTCS data is also used to provide other bases including:
270
11) Route to Radial
In the Wholesale SMP markets that make up Partial Private Circuit (PPC) and leased line services (Traditional Interface Symmetric
Broadband Origination Markets and the Wholesale Trunk Market) the bearers and all associated trunk and transmission services are now
reported in radial km. The underlying PPC and leased line costing system (CTCS) is now able to replicate the actual billing process which
calculates a theoretical radial distance of circuits. This radial distance is applied to the cost of these circuits (which is based on the actual
length or route of the circuit) to give a unit cost on a radial basis. This change brings the market definition on pricing and regulatory
costing methods into alignment and allows for greater transparency of the regulatory charges with the actual radial price billed. This was
implemented in the regulatory accounts for 2005/06 as described in page 20 of the Regulatory Financial Review of the “Current Cost
Financial Statements for 2006”.
The example table below shows an extract from CTCS for CO372 2Mbit/s Trunk per Km and identifies the difference in reporting route vs.
radial by Product. Prior to the 2006 Financial Statements the price shown in the Regulatory Accounts was adjusted by a factor (“the route
to radial factor”) to adjust the billed radial price to a route basis to align with a unit cost that was shown on a route basis. The 2006
Financial Statements adopted the change described above and shows both price and cost information on a radial basis.
271
12) Trunk and Distribution
Following an Ofcom investigation into PPC Trunk charges, BT has revised the cost allocation for PPC trunk segments which fall into the
Wholesale Trunk market and terminating charges which fall into the Traditional Interface Symmetric Broadband Origination (TISBO)
markets. Cost apportionments from the underlying circuit costing system (CTCS) are now in line with the pricing of trunk segments i.e.
parent Tier 1 nodes.
This methodology was implemented in the 2006/07 Regulatory Accounts and apportions the costs to distribution and trunk components
using circuit’s route length split by the radial trunk to distribution ratio. This ratio is applied to the main and standby paths independently.
The diagram below gives a general overall view of the new methodology and of how circuits are to be split.
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Circuit split is achieved by the following 3 steps:
•
Calculate the radial Distribution and Trunk ratio.
•
Apply the ratio to the main and standby paths.
•
Identify elements of the circuit as Distribution and Trunk.
Details of these steps are explained below.
•
Calculate the radial Distribution and Trunk ratio
The radial Distribution distance is attained by taking the straight line distance from the Last Serving Exchange to its Parent Node at each
end of the circuit. If the Last Serving Exchange is a Parent Node this distance will be zero.
The radial Trunk distance is attained by taking the straight line distance between the Parent Nodes. If the Last Serving Exchange at both
ends of the circuit shares the same Parent Node this distance will be zero.
Note: - The circuit does not have to pass through the Parent Node. This is a theoretical shortest path for the circuit.
With these two distances, ratios are calculated to determine what proportion of the circuit is to be identified as Distribution and Trunk.
A end
LSE
A end
Parent
B end
Parent
3 km
40
km
B end
LSE
7 km
CTCS_RatioCalculation
Radial Distribution
= 10 (3+7)
Radial Trunk
= 40
Total
= 50
Distribution ratio
= 10/50 = 0.2
Trunk ratio
= 40/50 = 0.8
•
Apply the ratio to the main and standby paths
The Distribution and Trunk ratios are then applied to both the circuits’ main and standby paths independently to calculate the required
route lengths for Distribution and Trunk.
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Applying the 0.2 and 0.8 ratios to this circuit will give the following results:
Diagram 3
Main Path
70 km
A end
Parent
B end
Parent
Standby Path
CTCS_02and08Ratios
Main Distribution
= 70km x 0.2
= 14km
Main Trunk
= 70km x 0.8
= 56km
Standby Distribution
= 90km x 0.2
= 18km
Standby Trunk
= 90km x 0.8
= 72km
•
Identify elements of the circuit as Distribution and Trunk
Bearers and Line Systems are grouped into hierarchical ‘Tier Levels’ based on their platform, tier and bit rate. The grouping is shown it the
table below:
Diagram 4
SDH Tier 1
Level 1
PDH 140/566
Level 2
SDH Tier 1.5
SDH Tier 2
Level 3
SDH Tier 3
PDH sub 140
Level 4
SDH Tier 4
Level 5
CTCS_BearerandLineSystemTiers
The Bearers and Line Systems length is exhausted to the Trunk component, starting at the top level and working down until the Trunk
distance is achieved. This can be either whole Bearers/Line Systems or a proportion of their length.
The remaining Bearers/Line Systems length is then apportioned to the Distribution component. This will add up to the correct Distribution
length.
If the main path of the circuit consisted of the Bearer and Line System shown in the diagram below, using the ratio and distances
calculated previously the split would be as follows:
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B end
Parent
A end
Parent
Diagram 5
2Mbit
2 km
8 km
SDH 
 PDH
Tier 1 bearer
Tier Tier
3
2
14 6
km km
Trunk
56km
Tier
1
40
km
140
Mbit
4 0km
140 Mbit Line system 8km
8km
Tier 2 bearer
14km
Tier 3 bearer
6km
2 Mbit Line system
2km
12km
Dist
14km
CTCS_BearerandLineRatioandDistances
Tier 1 Bearers and 140Mbit/s Line Systems will be identified as Trunk.
Tier2/3 Bearers will be split between Trunk and Distribution.
2Mbit/s Line Systems will be identified as Distribution.
Both the Length and Link (volume) element of the Bearers are apportioned by the same amount i.e. if 40% of a Bearer’s length is
identified as Trunk a volume of 0.4 will be used for the volume.
This methodology is then applied to the standby path using the same ratios.
13) WECLA (West East Central London Area)
The Business Connectivity Market Review (BCMR) conducted by Ofcom determined that two of the TISBO markets (TISBO above 8Mbit/s
and up to 45Mbit/s and TISBO above 45Mbit/s and up to 155Mbit/s) under a new geographic area were now competitive and no overall
Communication Provider had ‘Significant Market Power’, the area defined is known as WECLA.
3rd Party
Customer
CP
Network
SDH Transmission
Network
Tier 1
Node
LSE
Local End
Tier 1
Node
POC /
LSE
Distribution
Distribution
Point of Handover /
Local end
Trunk
3rd Party
Customer
LSE
Local End
Tier 1
Node
Tier 1
Node
POC
/ LSE
Distribution
Distribution
SMP TISBO Markets
CP
Network
SDH Transmission
Network
Point of Handover
/ Local end
Trunk
CP
Network
Tier 1
Node
POC/
LSE
Non SMP
Central and East London Area
3rd Party
Customer
SDH Transmission
Network
Point of handover /
Local end
Distribution
Tier 1
Node
POC /
LSE
Distribution
Local end
Key
Local End
Distribution
Trunk
Point of Handover
Ofcom defined WECLA within the BCMR and identified the London areas by postcodes. Ofcom separately provided a further definition of
WECLA and in particular what elements of a circuit (Link, Distribution, Trunk and Local End) should be excluded and pointed to WECLA
and which ones remain as TISBO.
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14) CTCS - Glossary
ADM - Add-Drop Multiplexers. Key item of Synchronous Digital Hierarchy (SDH) electronics which allows the circuits of varying
bandwidth to be multiplied up to utilise more efficient high bandwidth bearers.
COSMOSS - Customer Oriented System for the Management of Special Services (Private Circuits).
CTCS - Core Transmission Circuit costing System.
INS - Integrated Network Systems – Computer System for BT's Plesiochronous Digital Hierarchy (PDH) Network, containing cable and
Plesiochronous Digital Hierarchy (PDH) equipment records.
MSH - Marconi Synchronous Hierarchy. High bandwidth Transmission Network.
NDS - Network Decision Support. Tool used to extract data from INS.
OCP - Other Communications Provider (e.g. Vodafone).
PACS - Planning Assignment and Configuration System.
PDH -Plesiochronous Digital Hierarchy – PDH was the initial structure for organising the hierarchy or possible bit rates in synchronous
time-division multiplexing. Now superseded by Synchronous Digital Hierarchy (SDH).
SDH - Synchronous Digital Hierarchy.
STM - Synchronous Transport Module. Measurement of Transmission bit rate – Where n = 1, 4, 16, 64, i.e. 155, 622Mbit/s, 2.5, 10Gbit/s.
UBB - Ultra Broadband Network.
CWSS (Copper Wideband Serving Section)
BT’s bespoke copper based bearer between customer’s equipment and the network. Typically carries Kilostream over high-speed DSL
(HDSL).
DESS (Digital Exchange SubSystem)
DESS is a key system used for Data Management of System X exchanges. It supports the data on load, download and manipulation of
exchange software.
DESS is the key system for download, manipulation and upload of System X Exchange Data allowing new equipment and rearrangements
to be implemented on the narrow band network. Data used by DESS originates from BT UK network of System-X exchanges serving the
UK Public Switched Telephone Network (PSTN).
Data is downloaded in the form of binary system dumps, and is de-compiled on the DESS system into ASCII format. DESS provides data to
CARDVU allowing System X exchange data to be viewed and validated. DESS is a key feed to Network Audit Charging Validation.
DSR (Duct Space Records Survey)
The DSR is a standard record of the use of ducts. The DSR provides a record of cables within a duct section (i.e. between two manholes).
The high cost of providing ducts demands that this record is kept up-to-date. The DSR is used in-conjunction with the Duct plan. Each
length of duct on the Duct Plan is given a serial number. The DSR shows a cross-section of the duct on a particular length (or a number of
lengths with the same formation). This is a survey based on DSR paper records, held at drawing offices. The survey splits duct into:
•
Access Fibre.
•
Access Copper.
•
Core Transmission.
EASI (Exchange And Station Information)
EASI is a subsystem of Integrated Network Systems (INS). It is the master source of 1141 codes used by all design, assignment and order
handling systems. It holds the Exchange/system types which are used in Planning Assignment and Configuration System (PACS) for
planning equipment and in Service Solution Design (SSD) for taking in orders that need to terminate on certain switch types.
EBC (Element Based Conveyance)
EBC is a mechanism that measures BT network usage by Communications Providers (CPs). It is one of the factors that affect the final price
of certain calls and a matrix is used by BT to calculate the appropriate network usage charges. The EBC matrix is also provided, along with
other supporting files, to CPs allowing them to verify the bills from BT Wholesale and to correctly charge for certain calls on their invoices
to BT.
EBC types of call have a charge dependent on the optimum use of the BT Network to carry or terminate a call. The network use is defined
as the optimal exchange connectivity path a call can take and, within that, the shortest distance between the trunk exchanges in that
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path. A connectivity path is based on the shortest distance between the exchanges, which lie along the path of a call between origination
and termination.
EBC charging applies to various call types, such as a call terminating on, transiting or in some cases leaving the BT Network.
EBC Data Sources
National Charging Database (NCDB).
Network Records System (NRS).
Routing Reference Model (RRM).
Point Code Information System (PCIS).
Routing Plan Database (RPD).
EM (Element Manager)
Each telecommunication equipment vendor has their own EM system based on agreed industrial standards. The Alcatel 5620 EM is a
scalable network management solution. It provides the network operator with a full range of configuration capabilities on multitechnology networks. The system holds the volumes of cards/ports that come from the NEI (Network Element Inventory) and AIM
(Analysis and Inventory Module) supplied from the EM database. Card prices are supplied by BT Wholesale.
Traffic and service parameters on frame relay, ATM, X.25, SONET/SDH and ISDN links and paths can be configured through a point-andclick graphical user interface.
The element manager provided the following benefits:
•
Reduced time to market for integration development and new service introduction.
•
This facilitates reduced cost of operations by flow-through provisioning. It also facilitates reduced maintenance cost by aggregating
all fault and performance data in systems dedicated to correlation, root cause analysis, and pre-emptive maintenance. Integrated
operational support systems enable faster service creation and higher revenues by service differentiation and shorter time to market
with new services.
•
Provides capability so that the management activities can be tailored by customizing or restricting views of the network for different
operators.
•
Reduced integration development cost.
•
Reduced cost of operational support systems ownership.
•
Improved operational support for the end customers.
EXPRES (Exchange Planning and Review System)
EXPRES is a system used for capacity planning in BT’s Local Exchange Network. It provides an inventory of 'capacity in service' available in
the Voice Network also known as the Public Switched Telephone Network (PSTN). The system uses this information to forecast future
capacity requirements.
It also links to an equipment-ordering programme for our suppliers.
EXPRES is extensively used to provide regular switch network data for reports and briefings together with data for key reports to Ofcom
and other Communication Providers (CPs). Additionally it is used throughout the business, particularly within planning offices, to provide
management statistics and data on the works programme and asset utilisation. It is the definitive source for Network Nodal Identifier
(NNI) codes.
EXPRES contains details of the hierarchy of the Voice Network. e.g. which Local exchanges are linked to which Tandem exchanges
If BT decides to re-parent a Local Exchange, other CPs must be told to enable their traffic to be re-routed. EXPRES produces the relevant
reports for the other CPs.
Within ASPIRE, EXPRES data is used to ascertain the number of lines served by specific types of exchange. It is used in combination with
Powerhouse.
ASPIRE uses Powerhouse data to obtain the number of exchange lines. EXPRES data will tell us the particular type of exchange, from
which these lines are served. The raw data from both these systems is put into a builder file and then uploaded into ASPIRE.
FastVPlan
Tracking and Modelling application used for Capacity Managing for BT Wholesale Broadband Digital Subscriber Line Access Multiplexer
(DSLAM) platform.
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FAR
The Fixed Asset Registar is the internal list of all of BT’s fixed assets. The FAR team have the job of maintaining and registering BT's assets
on its Fixed Asset Register.
Featurenet
Featurenet is a BT virtual private service for the transmission of voice, facsimile and voice band data either between sites or from site to
locations not connected to the service.
GALILEO
A fault reporting Management Information System (MIS) which feeds off Customer Service Systems (CSS). GALILEO is used by the BT
Wholesale and Retail by providing online access over the BT Intranet.
GL (General Ledger)
The GL is the capital element of a company’s financial records. Every financial transaction flows through the GL. The records remain as a
permanent track of the history of all financial transactions in the company.
Geneva/Avalon
Avalon is the name of the Geneva/IRB BT Retail instance being used to bill for a multitude of products.
Deployment Date: 31/08/2006
SPDS50937
SPD Approved Date 24/01/2011
The Infinys Rating and Billing (IRB) Billing platform uses an "off the shelf" billing system supplied by Convergys based in Cambridge, UK.
The system has been built on the core Geneva platform with a number of Pre & Post processors and interfacing systems. Products billed
include PSTN, Featurenet, BT Mobile (consumer), Openworld products (narrowband and broadband), Wireless Broadband (Openzone),
Corporate Broadband (Internet Tele Worker) and a number of other small product sets.
GNCM (Global Network Cost Model)
The GNCM is a network centric model which allocates the Global Network Operating Costs and Depreciation budgets incurred by the
Global (non-UK Global Services) network infrastructure to BT Global Services products. This does not include the Infonet platform and
Italy. All costs are initially allocated to Network platforms and in the case of the IDD Product, this is the Global Carrier Voice (NICs)
Platform. The Satellite costs are allocated based on capacity utilisation. The Subsea costs are allocated using cost allocation keys fed from
the inventory of leased circuits and their costs, giving annual recurring cost by platform of international circuits and then weighted based
on the amount of NICs trunks capacity (which is carried over the UK Backhaul network and is provided by the Global Transport Planners).
GLOSSI (Global Support System for Invoicing)
GLOSSI is a global billing system offering multi-lingual invoices and reports and flexible multi-currency tariffing, pricing and reporting.
The system captures all information required for billing - including customer data, service and product data and tariff data - via a GUI
front end. The system can stand-alone or use feeds from other systems to do initial and on-going data build.
GT-X
GT-X is a call handler system and data capture (CRM) tool. The system allows calls (inbound and outbound) from a dialler to be processed
by an agent in a contact centre. Currently only outbound calls are being run from GT-X.
Agents receive calls using Graham Technology software (GT-X), which runs on UNIX, on application servers. Around 40 agents can be
allocated to each application server. The GT-X client is thin and code is held on the Oracle database within GT-X delivered tables. There
are also a number of database servers.
GT-X is used to run call centre scripts that enable agents to view customer information and record data gathered on a call. The application
interacts with UNIX processes called Service Objects which allow GT-X to interface with external systems and databases.
GT-X campaigns are used for acquisition and retention, sales and billing in both business and consumer areas.
HORIZON
This database holds detailed records for BT’s properties (e.g. tenure, ownership and floor areas).
This system contains data on the BT Estate (both office and operational). It holds data such as the Net Internal Area (this is the floor space
that is billable) and Gross Internal Area (floor space that isn’t billable). It records, at Organisation Unit Code (OUC) level, who actually
278
occupies the floor space so that a particular OUC can be billed for usage.
The occupancy details on the database contain the footprints of the equipment. This helps to establish the occupancy split between the
specialised, the general purpose or both for each property on the system.
HORIZON is managed and owned by Telereal Trillium who is BT’s outsourced agents for estate management.
IBIS (International Private Leased Circuit Billing Information System)
IBIS is the billing and information system for International Private Leased Circuit (IPLC) Product line. This system generates bills on a
quarterly basis and handles accounts receivables with Sales Ledger reporting.
This system contains customer data, such as their billing address, account number and all IPLCs, by circuit identifier, rented by that
particular customer.
iBuy
iBuy provides a simple, consistent process and a single tool through which all goods and services will be purchased. iBuy enables the
purchase goods or services directly, or vial a link (from iBuy) to an existing ordering tool.
ICARUS (International Circuit Allocation Record Update System)
ICARUS is an inventory and order entry system. It is dedicated to the International circuits originated / terminated in the UK (“IPC”)
transiting through the UK (“Hubbing” circuits). Particular cases to the International Private Circuits (IPC) are the circuits that terminate on
BT network but outside the UK.
It contains capacity and usage data on BT’s International Transmission Network.
It holds data on cables between exchanges that are based in various countries around the world. This system also contains routing details
for these circuits. International Circuit Provisioning teams use this system to install new circuits. It is also used for maintenance purposes
i.e. re-routing circuits.
The diagram below provides an ICARUS Overview.
IIDA (Inland and International Directory Assistance)
IIDA, or directory enquiries, is a phone service used to find out a specific telephone number and/or address of a residence, business, or
government entity.
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INCA (Inter Network Call Accounting)
This system is used to record calls that leave/arrive from/to the BT Network via an Interconnect with an Other Communications Provider
(OCP). The records are from some 900+ exchanges and arrive via a mediator. The types of calls are:
•
Originating on the BT Network, terminating on an Other Communication Provider (OCP) Network (BT makes a Payment to Other
Communication Provider (POCP) for terminating the call).
•
Originating on an OCP Network, terminating on the BT Network (BT receives a Receipt from Other Communication Provider (ROCP).
•
Originating (0800/0808, IA/CPS) on the BT Network, terminating on an Other Communication Provider (OCP) Network (BT receives a
Receipt from Other Communication Provider (ROCP)).
•
Originating (0800/0808, IA/CPS) on an OCP Network, terminating on the BT Network (BT makes a Payment to Other
Communication Provider (POCP)).
•
Transit Traffic – where calls originate and terminate on OCPs Network. The BT Network is used to carry traffic between these two
networks.
When a customer makes a call that passes between BT and another operator’s network the details of that calls are collected at the
exchange that forms the interconnection point between them. The Streamer takes all the interconnect call records from MEDIATOR which
has polled the exchanges for this data. The Streamer then validates these calls against a model of the network routing information. Files
are then created from these validated records and these are streamed into the Company system for consolidation into summary tables.
The Company system individually charges each call using the information provided by the contract that BT has with each other operator.
The pricing reference data is maintained using a graphical user interface. Data used for charging is provided by EBC and NCDB.
INCA is the charging engine within the overall GenIUS (Geneva Integrated Universal System) used to pass on charging data to the pricing
engine, Geneva, to bill OCPs for their telephony traffic, carried over the BT Network.
INCA is able to apply charging data for the proportion of the BT Network used to transport an interconnect call. INCA is also used
extensively to check bills received from OCPs.
•
Maps the INCA data to Regulatory Products.
•
Converts individual call detail records into amalgamated ‘buckets’ of data (summarised) dependent on EBC band, time of day etc.
and sorts this data into relevant OCP files.
Checks products that use basic and advanced features of the Derived Services Network (Basic Products are Freephone, Low Call 0845,
0870, speaking clock. Advanced Products are Televoting, Mid Call Diversion and Non Geographic Number Portability).
Data is summarised and incorporated with Geneva data to add pricing data and to produce invoices.
INS (Integrated Network Systems)
INS is the family name for the architecture encompassing a group of mainframe subsystems supporting Plesiochronous Digital Hierarchy
(PDH) core network planning and utilisation processes. These processes manage the assignment of BT's core and wideband network and
transmission equipment areas.
It is one of the major Operation Support Systems (OSS) within BT for (PDH) plus the analogue network and holds all data for Cables (Fibre
and Copper - non Customer Service System (CSS)), Radio, Bearers, Switch, Equipment and Private Services and is one of the largest online
data systems in Europe.
It underpins network technologies and topologies such as Ultra Broadband (UBB), Wavelength Division Multiplexing (WDM), Synchronous
Digital Hierarchy (SDH), Internet Protocol (IP), PDH, Kilostream and high bit rate services. It also records the inter exchange network for
Public Switched Telephone Network (PSTN) and Featurenet. It fully supports the three main business processes of Provision, Build and
Repair.
INS is essentially a data warehouse and is a representation of physical bearers and equipment for logical solutions. It provides end to end
routing design and solutions across network platforms for public, private and network services, 20CN and 21CN. It also provides a level of
resilience checking.
IXBS NG (Interconnect Bureau Service New Generation)
A system that gives hourly traffic utilisation on a route basis.
JRMIS (Job Recording Management Information Systems)
This system contains job recording data for field engineers and is used to monitor engineering time. The system receives Engineers
Unauthorised and Authorised time booking data and job information from various feeder systems, processes it and produces various
reports and extracts. The reports and extracts are used by various lines of business.
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LLCS (Local Line Costing Study)
This is normally conducted annually and is valued using current equipment costs and installation prices. This LLCS covers ducts that
contain at least one local cable.
LLFN (London Local Fibre Network)
The LLFN is an analogue private circuit overlay platform providing services to major customers, with an enhanced service wrap within the
0207 and 0208 areas of London only.
The platform is now over 20 years old and primarily is based on PDH technology but is now making more use of SDH. There are various
bespoke systems that support the platform along with a raft of BAU systems for order/faults management.
LoP List (Life of Plant List)
LOP List details the Capital Fixed Assets for BT TSO & Openreach on a monthly basis, and is made available to users on a request only basis.
It shows details of registered assets down to Policy Code level; Work in Progress, Backlog Registrations and Accounting Adjustments at
CoW level. The totals should reconcile with the Fixed Assets figures in the published Balance Sheet.
• LOP List was first produced in financial year 1996/97.
• The LOP List is loaded into SharePoint where access permission is granted through the Fixed Assets Manager.
• Asset Policy Codes (APC's) can be created / deleted during any financial year depending on demands/decline of technology. New assets
and current assets depreciating would obviously be a change in the year and write-offs which occur from building closure: assets that
have no use etc. will change also. The Book life of the assets may change dependent on the Asset Life Review (ALR) which is proposed by
BT Group Regulatory Finance.
This is an excel spreadsheet that contains Class of Work (CoW) information by Asset Policy Code for the assets belonging to BT Wholesale
or Openreach. This excel spreadsheet is prepared on a quarterly basis by the BT Group Fixed Assets team. The LoP List is loaded into
Livelink where access permission is granted through the Fixed Assets Manager. In Regulatory Reporting, the information on the excel
spreadsheet is used in base preparation. The inputs to the excel spreadsheet is from the Oracle Fixed Assets Register and Central
Information Database (CID) Work In Progress report.
Long Run Incremental Cost (LRIC) model for Main Exchanges
A method of cost analysis based on an economic concept which separates costs of a specific “increment” of business activity from the
overall costs of the business with the advantage of enabling the business to identify the separable costs of providing certain services, and
thus to inform decisions as to the pricing of those services.
The model dimensions the optimum network configuration for Main Exchanges using a Modern Equivalent Asset (MEA) of Next
Generation Switches for both the MDX (System X Main Exchanges) and NGSC (Next Generation Switch) CoWs.
Using feeds from EXPRES, NRS and the Switch Deployment Plan the cost of each unit is valued individually and the total value of the
individual building blocks are mapped against a matrix to provide the fraction of cost pertinent to Main Exchange Call Set-Up and Main
Exchange Call Duration.
MEDIATOR
Mediator has replaced Network Mediation Processor (NMP) as the data collection system, polling the majority of BT’s Network Elements.
It interfaces with a variety of Billing and Management Information systems and provides a billing data feed for Wholesale, Retail and
Global Services. MEDIATOR collects the majority of BT’s billing and other data streams from all network elements (other than 21CN) and,
after transformation, makes the data available for collection by other downstream billing platform components such as the Service
Domain Processor (SDP), where the call records are priced prior to subsequent transfer to Customer Service System (CSS).
The system components, collectively known as ‘MEDIATOR’, comprises of:
•
Unix Mediation Engines (ME).
•
A Windows server known as the Mediation Control Centre.
•
X25 network access nodes (MegaPACs).
•
Automatic backup and restore capability (Net backup).
•
UNIX tape server for the input of exchange data in case of data communications network failure.
Merlin Performance Management
Merlin Performance Management provides a strategic Business Intelligence Reporting Platform for Customer Contact Centres within BT
Retail and is used to record call statistics within the Centres.
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The reports from Merlin are vital at senior management level to provide visibility of the previous day's performance in each of the main
business units (Business, Consumer Sales, Customer Service, etc.). The results on the reports will then drive key decisions on the immediate
focus for each of these areas for the forthcoming day. These reports also provide Key Performance Indicator (KPI) data at agent level
which provide a mechanism for relevant comparison of performance and improvement purposes which can then be used to drive
performance improvement plans.
Metro Node/I-Node/MSAN Node cost model
Contains the various building blocks of the Metro Node, I-Node and MSAN (Multi Service Access Node) derived from the unit prices and
overall projected spend on the items.
MSIP (Multi Service Intranet Platform)
MSIP currently* consists of two sub-platforms delivering ATM, Frame Relay and Ethernet connectivity in the UK. The sub-platforms are
integrated together to offer customer accesses at speeds from 64kbps to 622Mbps. Full automated provisioning of PVCs for the Cisco BPX
and Alcatel sub-nets is standard with a minimum bandwidth of 4kbps.
The BT Alcatel-Lucent ATM network supports the national 20C BT Broadband backhaul infrastructure (carrying the IPstream &
Datastream products) as well as the Cellstream, Framestream and Megastream Ethernet customer products along with backhaul trunking
for Dial IP, IP VPN, 21 DCN and a number of other products and services. The network is based on a tiered hierarchy of ATM switches
(7470, 7670RSP & 7670 ESE) using STM1, STM4 and STM16 SDH trunks. The Network provides customer connectivity at sub E1 Frame,
E1 ATM, E1 Frame, E3 ATM, E3 Frame, STM1, STM4, 10/100 BaseT Ethernet and GigE Ethernet.
*The Cisco BPX/MGX platform provides BTs national Framestream Service. The network comprises of Cisco BPX ATM switch nodes
interconnected by STM1 core trunks and Cisco MGX nodes associated with the BPXs to provide E1 and Sub E1 ports for customer access.
Interworking trunks to the Alcatel ATM Network provide Cell/Frame services and Frame Relay Gateways to the IPVPN network provide IP
enabled services.
Framestream Network: 81 Nodes with 49 Core links **
**NB the UK CISCO Framestream platform went unsupported in Sep 2011 and is at the very latest stages of closure with all remaining
users off by July 2012.
Age of Network: ATM Network-1995, Framestream Network-1996.
Platform Details:
ATM Network: 508 switches with 6766 Core links, 1568GBt/s Physical Core capacity (2453GBit/s effective).
Ownership:
The Platform is owned by BT Global Services and is operated and managed on their behalf by BT Operate and BT Innovate & Design.
NCDB (National Charging Database)
This system holds reference data by which voice calls are charged.
The reference data is used to generate a charge for a particular call. When a call is made, the local telephone exchange generates a call
record. The originating number and receiving number are then cross-referenced against the NCDB so that a charge for the call can be
calculated.
NEMOS-DR (NEtwork MOdelling System – Data Repository)
The system contains the route performance information for Network Capacity management.
The basic data needed in order to perform the network route capacity management function is information about a route's busy hour
performance and loading, in terms of traffic, calls offered, carried and lost, together with an indication of the capacity available. The data
requirements are very similar to those for real time network management and so NEMOS-DR makes use of the large amount of data
collected by TrafficHawk - the Network Traffic Management System (contains raw unprocessed call data).
TrafficHawk collects data from all monitored exchanges every five minutes and the Network Managers use it to monitor and identify
network problems and take short term corrective action as necessary. TrafficHawk combines the relevant data from three to five minute
periods and transmits a file to NEMOS-DR every fifteen minutes. The collected data is then grouped into Day, Afternoon, Evening and
Night periods within which busy-hours are identified. This data enables the Network teams to manage the Public Switched Telephone
Network (PSTN).
NetView
NetView is a Business Intelligence Reporting system produced and managed by the Openreach Business Intelligence team. This system
provides reporting and analytical capabilities across a wide set of standard Openreach measures.
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Nexus
Nexus is a time recording and performance management system used by the sales force to introduce Sales Order details that the Order
Entry team will review and, if wrong return to Sales team to complete. If everything is OK, an Order is introduced in the Order Entry And
Delivery System.
NIMS (Network Instruction Management System)
The NIMS application serves the Openreach Planning, Programming and control communities. It is a sophisticated database tool which is
used to programme, schedule, plan and execute work and to control and monitor progress throughout each phase of the job's life-cycle.
It enables aspects of works planning, logistics control and overall project management to be co-ordinated and prioritised at national and
task level. It assists in optimising capital resource, available time and work to meet business requirements. It is the data warehouse system
for TCP and WFMT so is critical to the Network Engineering Journey (NEJ) and NGA both FTTC and FTTP. There are 4400 registered users
of which 100 are concurrent at any one time.
NJR (National Job Recording System)
A BT system which collects, verifies, reconciles, authorises, collates and disseminates engineering time, allocation and
overtime/allowances data for NewGrid grades within BT.
NRS (Network Records System)
NRS is the national system for the allocation/de-allocation and display of Public Switched Telephony Network (PSTN) 2Mb Switch Ports
and related switch data. The information held by NRS is derived from PSTN switch data, which is refreshed regularly from System X,
AXE10, NGS, Hybrid and Call Server switches. The received data is reconciled against the existing NRS data and any anomalies are raised
as Reconcile Exceptions. During 2008 the functionality provided by NRMS (Network Routing and Modelling System) was subsumed into
NRS. This functionality is referred to as NRS-NRMS and provides users with a graphical representation of the current routing structure of
the network.
Route Factors give a view of network component utilisation across BT’s PSTN and meet requirements of the Communications Act 2003.
They are also published in BT’s annual accounts.
Interfaces with other systems:
•
DESS – Network - Digital Exchange Support System. It contains print files (switch archive data) for System X exchanges.
•
MMS and MNOSS – Network - NGS hybrid switches use AXD/AXE processors. To get a feed from the AXD part of the processors MMS
is used. NRS Polls MNOSS data from CSAM-D into NRS.
•
NMP – Network - Network Mediator Protocol. NRS print files of AXE10, NGS, HYBRID and Call Server (non-ISML data) exchanges are
received from NMP.
•
APG40 – Network - APG40 provides Call Server prints to NRS on daily basis (ISML data)
•
NIO and RDB – Network - NRS receives AXE hardware information from NIO interface in XML file format.
•
ISML - Netconf – Network - NRS Polls ISML data from CSAM-D into NRS.
•
CTM – Network - CTM provides CTM print to NRS.
•
WOOSH – GUI - WOOSH is the GUI of NRS.
•
Fusion Work – OSS - NRS polls print files from Fusion Works for CRAFT.
•
Email – Every Friday auto generated mail is dispatched to NRS Helpdesk detailing reconcile exception counts per switch type etc.
•
Email – Daily Report at 12:00 detailing switches breaking certain thresholds.
•
Email – From Release N (29/03/10), on the 14th of each month a script runs to produce Global Number Portability reports for
System X, NGS and Hybrid switches and email them to John McKeown.
•
Email – Monthly break down of Reconcile Exceptions by NNI, Rec Excep type etc. to NRS Helpdesk.
•
Fast Alarm – OSS - Email with 4 zipped CSV files is dispatched to concerned users whenever report is requested.
•
NEMOS–MT – OSS - NEMOS-MT imports routing files for System X and AXE10 switches from NRS via Reports option (Appendix 24A)
and email).
•
CRAB (OTDB) – OSS - Data related to circuits, termination details are provided to OTDB (One Truth Database) - NRS System
Allocation tables weekly by FTP for “Interconnect Inventory”. (CRAB = Circuit Revenue Assurance Board).
•
UII – OSS - Unified Inventory Interface. NRS provides detail of specified tables to UII with help of Views.
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•
EBC – OSS - EBC is used to charge transit traffic. It creates a matrix with the POC (Point Of Connect) where the call leaves the BT
network. The Exit POC’s is provided by NRMS using the eplagent utility.
•
NRMS–A – OSS - The NRMS network audit system referred to as NA provides a definitive view of the network to downstream
systems. This view consists of nodes, links between nodes and traffic destination to decode structure. Information is received from
the NRMS System, re-arranged and then fed out to OTIS. GUI access is provided for non-standard routes.
•
CSAM–N – OSS - NRS provides PACS IP association detail for call server to CSAM-N via DB Link.
•
PACS 20C – OSS - NRS is used for 2M Routes and Circuit Allocations and needs information held in PACS (Planning Assignment and
Configuration System) to allow ADM mapping during the allocation process. The PACS system delivers 2 CSV files to NRS through
FTP, on a weekly basis for NGS and NGS-Hybrid switch allocations. ADM, DDF_1141 and Highband_port information is provided by
PACS which are updated in the SYS_ALLOCATION and SYS_HY_ALLOCATION TABLES. PACS 21CN – OSS - provides inventory and
Activation notification to NRS (XML link to transfer PACS data to NRS).
•
CSAM–D – OSS - CSAM provides various feeds to NRS. For example MNOSS, ISML etc.
•
ANDES – OSS - interrogates NRS (in_information_only = Y) or interrogates and auto-allocates on NRS. Jobs recorded in NRS’s
ANDES_Request_Log. NRS supplies allocation information to ANDES for MML generation and switch onload. ANDES cease jobs also
update NRS making terminations "spare" on completion. (JDBC link to allow automation of 2Mb Switch termination allocation/deallocation and database link for Data Warehouse).
•
NBI / MNOSS-CORBA / MMS and MNOSS (CSAM-D) – OSS - This interface, known as the NorthBound Interface (NBI) is currently
disabled following sys_hy_allocation data corruption problems. NGS Hybrid switches use AXD/AXE processors. To get a feed from the
AXD part of the processors (board = ATM) MMS is used. NRS Polls MNOSS data from CSAM-D into NRS for NGS Hybrid ATM system
data. Also, where a connection is made via one switch between two other switches, i.e. tunnelled, we cannot deduce from the AXE
data which ports are in use. This information is derived with the help of NBI.
•
BBCM – Database link to allow BBCM a specified view of NRS data.
•
“In house” graphical user interfaces (GUIs):
1
9
Query
Module
GUI
Available on
wooshNRS.
On screen display determined by direct user input – interrogation
2
0
Allocation
Module
GUI
Available on
wooshNRS.
On screen display/input determined by direct user input for new/cease/
increase/decrease route/concentrator/hardware etc
2
1
Generate
MML Module
GUI
Available on
wooshNRS.
On screen display/input determined by direct user input for new routes,
route increase, route decrease and route cease
2
2
Report
Module
GUI
Available on
wooshNRS.
On screen display determined by direct user input – interrogation, CSV
downloads etc
2
3
MicroEDMS
module
GUI
Available on
wooshNRS.
On screen display determined by direct user input - interrogation
2
4
NRMS
Module
GUI
Available on
wooshNRS.
On screen display determined by direct user input – interrogation to display
network mapping
2
5
NaDIA
Module
GUI
Available on
wooshNRS.
On screen display determined by direct user input – interrogation – National
Database for Information on AXE
2
6
Admin
Module
GUI
Available on
wooshNRS.
On screen display/input determined by direct user input
2
7
Feedback
Module
GUI
Available on
wooshNRS.
On screen display/input determined by direct user input
2
8
Documents
Module
GUI
Available on
wooshNRS.
On screen display/download determined by direct user selection
NRS.Diagram1
•
In house GUI – see above.
NRS has the following data flows with other systems: These are all included in the above list of interfaces.
•
Interconnect Inventory (OTDB) – NRS System Allocation tables weekly FTP.
•
CSAM (ANDES) – JDBC link to allow automation of 2Mb Switch termination allocation/de-allocation and database link for Data
Warehouse.
•
BBCM – Database link to allow BBCM a specified view of NRS data.
•
PACS – XML link to transfer PACS data to NRS.
•
MNOSS – CORBA interface for receipt of NGS Hybrid ATM system data.
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•
DESS – For the collection of System X switch data.
•
MEDIATOR – For the collection of AXE 10, NGS and Hybrid switch data.
•
21CN Call Server and CTM – for the collection of 21CN data.
NCAS (Network Capacity Assignment System)
NCAS provides the capacity calculations to determine if access capacity exists in the network to support Asymmetric Digital Subscriber
Line (ADSL) Broadband connectivity. NCAS supports the following functions:
1 - Service Profile Definition - including connections within the ADSL network, connections within the core network, association of core
connection groupings with the relevant Multiplexer (MUX).
2 - View ADSL model - using object attributes.
3 - Audit ADSL Network.
4 - Capacity Thresholding.
5 - List incomplete Service Provisions.
6 - Report Planning Failure Exceptions.
7 - Support for automated core VP build.
8 - Configure Service on request from SSD.
NOTE: The two ADSL Element Managers (ADSLEMs), the Fujitsu FENS-AN and the Alcatel AWS, manage all aspects of the ADSL
equipment. Both Element Managers support the building of planned equipment. The EM will auto-discover equipment when installed
and download the appropriate configuration data to the network elements. The ADSLEMs will also support capacity management
activities. They hold the data that will be required to monitor capacity utilisation and this information is passed to NCAS.
NUNCAS
New Network Capacity Assignment System (NUNCAS) provides the capacity calculations to determine if access capacity exists in the
network to support Asymmetric Digital Subscriber Line (ADSL) Broadband connectivity. NUNCAS supports the following functions:
1 - Service Profile Definition - including connections within the ADSL network, connections within the core network, association of core
connection groupings with the relevant Multiplexer (MUX).
2 - View ADSL model - using object attributes.
3 - Audit ADSL Network.
4 - Capacity Thresholding.
5 - List incomplete Service Provisions.
6 - Report Planning Failure Exceptions.
7 - Support for automated core VP build.
8 - Configure Service on request from SSD.
NOTE: The two ADSL Element Managers (ADSLEMs), the Fujitsu FENS-AN and the Alcatel AWS, manage all aspects of the ADSL
equipment. Both Element Managers support the building of planned equipment. The EM will auto-discover equipment when installed
and download the appropriate configuration data to the network elements. The ADSLEMs will also support capacity management
activities. They hold the data that will be required to monitor capacity utilisation and this information is passed to NCAS.
OMC (Operation and Maintenance Centre)
OMC supports the management of digital exchanges for all remote operations and maintenance. It provides a user-friendly interface
between users and digital exchanges and provides a gateway to the exchange for the repair of exchange faults, receipt of faults and
alarms from exchanges, holds spare exchange capacity information, and customer and exchange configuration information. OMC
supports the management of digital exchanges, System X and AXE10 for all remote operations and maintenance. Additionally it hosts a
UNIX Data Server (UDS).
OMC provides a user-friendly interface between users and digital exchanges and a gateway to the exchange for the repair of exchange
faults; receipt of faults and alarms from exchanges; holds spare exchange capacity information; customer and exchange configuration
information (including the management of customer, route, routing and circuit data). On-line terminal access provides immediate
response by the OMC/Exchange.
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OMC users are varied and include maintenance, installation office, and sales and management duties. The OMC applications have been
integrated into a single application serving both Trunk and Local exchanges. The operational OMC is based on COMPAC Alphaserver 8200
series machines acting as hosts, and Compac Alpha 1200 machines acting as Front End Processors (FEP's) all running Open VMS. The
Alpha Servers access the ORACLE databases on a COMPAC Alphaserver 4100 series machine Unix (UDS) across the GDC LAN. The system is
under constant development to provide for support products and services, new technologies and architectural evolution.
OMP (Open Mediation Processor)
The OMP is a file handling system. It converts records from the various systems formats belonging to other network operators (Other
Administrations (OAs), Other Communication Providers (OCPs) and Foreign Post, Telegraph and Telephones (PTTs)) to a common format
containing the Platform Independent Usage Record (PIUR) this being a marker on the call record that enables the call to be priced).
It is a UNIX application that also acts as an intermediary between other applications such as Customer Service System (CSS), OCPs and
International Billing.
The OMP:
•
Provides a configurable control program to deal with all file transfers to and from the system.
•
Detects files arriving by other file transfer methods (e.g. CONNECT Direct), using a table containing a relationship between file
specification and conversion program name.
•
Uses discrete programs translate files as required to other formats. Records that cannot be translated will be written to error files in
Platform Independent Usage Record (PIUR).
OMP allows other network operators systems to interact by converting data to a common language. Ultimately it allows interconnect
traffic data to be converted into a common format.
ORBIT (OpenReach Business Information Toolset)
To comply with the Telecoms Strategic Review (TSR), Openreach has developed a new data warehouse to capture and store management
information and this warehouse is called ORBIT.
The ORBIT data warehouse is the Key stone in the Openreach Management Information System (MIS) strategy. It performs the task of the
central data store and information repository, holding both granular and aggregated data together with measures and business metrics.
ORGS (Operator Report Generation System) - (now known as CC-MIS - Call Centre Management Information System)
This is a management system for both Operator and Directory Assistance calls.
ORGS obtains data from the Lucent 5ESS switches in Directory Assistance centres (118XXX) and Operator Assistance centres (100/999)
from around the country. Information captured includes, number of calls in a queue, time taken to answer, call distribution and
performance management.
PACS (Planning Assignment and Configuration System)
PACS has two prime functions:
•
20C Transmission (SDH/WDM) - Network Control Layer
•
21C Converged Core - Network Control Layer
PACS provides network planners with the ability to plan, assign and remotely configure these networks.
Pathfinder
Pathfinder is just one element of ToPAZ. ToPAZ is the point of reference for the BT Group on Procurement Corporate Governance and is in
six distinct sections as follows:
•
The BT Group section contains our Purchasing Principles, Corporate Procurement Policy, and Chief Procurement Officer Reserved
Powers. We are expected to operate to these Principles and meet the standards of professional integrity as set out in the Corporate
Policy.
•
Country specific procurement procedures contains information pertinent to the country in which they are working.
•
Procurement Unit Specific contains detailed instructions for a particular procurement unit. These may be password protected as they
only apply to specific operational areas. Operational units provide these and are responsible for their upkeep.
•
Process Model - a top level map of the procurement process with links to electronic Pathfinder sections (via the section title bars).
•
Best Practice procedures. Known as Pathfinder, this section uses a "road map" to navigate the procurement process, providing
guidance, advice and best practice further information and also highlighting potential hazards.
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•
Checklists/Templates/Tools - a quick access link to a variety of useful checklists, document templates and tools links.
Payphones Data Warehouse
The BT Payphones Data Warehouse holds details of all Street, Managed and Private BT Payphones. It is maintained using information
extracted from the Customer Service System (CSS) and, in the case of the Street and Managed base, from data received directly from
the payphones.
PCNBS (Private Circuits New Billing Information System)
The PCNBS was developed to provide a single, national billing service for UK retail private circuits, whilst at the same time extending the
range and type of services and facilities offered. The system interfaces with systems such as Customer Oriented System for the
Management of Special Services (COSMOSS), Customer Service System (CSS) and Computer Assisted Maintenance for Special Services
(CAMSS).
PCNBS is an all-purpose billing system that supports the following functionality - variable bill cycles and on demand billing, multiple level
customer hierarchy supported by user friendly navigation interface, flexible discounting applicable to rentals, support for discounting
schemes, support of separate Management Information System (MIS) for enhanced reporting facilities, support of finance requirements
including copy/duplicate bills, support for variable printing.
PCNBS data is also used by Powerhouse - a front end query tool that reports on revenues and volumes primarily for BT Retail.
Retail private circuits are billed on a rental basis - the rental depends on the equipment provided at each end of the circuit(s), contract
length and maintenance agreement. There is no usage charges associated with retail private circuits and therefore there is no need for an
interface with the network.
PCNBS holds the customer inventory data base. Product prices are supplied to PCNBS and COSMOSS from the Portfolio Database (PDB)
for retail private circuit Products and the Product reference table for CPE Products - though customer specific prices may be created and
stored on PCNBS.
COSMOSS supports the order handling and provisioning process for private circuits and provides information to update the customer
inventory on PCNBS. CAMSS provides details of service level agreement breaches for which a credit has to be given to the customer.
Portfolio Database (PDB) supports the definition of retail private circuits type Products, customer focussed billing Products, and
discounted Products handled by Customer Services System (CSS). It also cascades this information to those systems that need it.
PIBS (Payphones Information Business Systems)
This Management Information System (MIS) database. It contains data for each individual payphone by telephone number i.e.
mechanism, kiosk, faults, and revenue and call data etc.
This system holds inventory and revenue information on all payphones. It contains data on service routines, type of equipment,
electronics fitted and payphone locations. It also captures the revenue generated.
The database is updated from Central BT systems e.g. Customer Service System (CSS), engineering records and downloads from the
individual payphones.
PIRM (Power Inventory of Routine Manager)
PIRM is owned by the Network Power and Cooling Unit within BT Operate which has responsibilities for planning, maintenance and
setting of national policy for all aspects of BT’s power and cooling infrastructure.
This system holds an inventory of all the power equipment used within BT’s exchanges. It also contains details on all ‘Stand by’, Air
Conditioning (AC) and cooling systems.
Its primary function is to act as a management tool to schedule the routine maintenance required for this category of equipment. The
system has links to Work Manager (this system sends out work tasks to engineers). PIRM will tell Work Manager the type of equipment,
what the maintenance routine is and the level of training the engineer must have.
Power equipment can be identified and categorised by use. PIRM identifies if equipment is used specifically by a certain switch, e.g.
System X or is used for general power purposes but excluding legacy plant.
New DC Equipment should be connected to a fuse distribution board which will show which equipment it is serving. Legacy DC plant is
also connected to DC distribution boards but the records as to which equipment is being served are very poor as they were not historically
held on PIRM.
PRAVAT (Product Reporting and Volumes Analysis Tool)
The PRAVAT process a major part of the call volumes and does Fit for Purpose (Non-Core P&L, Balance Sheet, Component comparisons)
calculations.
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•
Volumes are used to apportion Component costs to Products in ASPIRE.
•
Call volumes data is supplied via spreadsheets, using email as the delivery mechanism, or taken directly from the system that provides
the necessary level of detail required for a correct categorization of the network traffic.
•
Various BT sub-systems provide the source data used to populate Accounting Separations sub-products with the call handling times
(minutes/ calls) and associated route factors.
•
Where possible, source data is mapped directly to a single Accounting Separation sub-product. When the source data does not
provide enough granularity for a direct mapping to a single sub-product, the volumes are pointed to a range of sub-products.
•
The ranges generally represent various combinations of business and residential classes and local, national, mobile, ISDN 2 and ISDN
30 rates.
•
Additional analysis is required to break down the ranges into sub-products, prior to ASPIRE processing.
CSCS - Provides the bulk of the volumes used for Accounting Separations. The system provides source data for all calls that originate from
a BT line. Enterprise codes in CSCS are mapped directly to individual sub-products.
Processed data from CSCS is used to calculate a percentage ratio used to split the range of sub products for local, national, mobile and
ISDN traffic.
INBOUND - Provides source data for a comprehensive range of 'Advanced Call Routing' features, externally known as Telemarketing
Services. The Product Package and Customer Class codes in INBOUND are mapped directly to individual sub-products.
INCA - Provides source data for all interconnect calls across the BT Network. A combination of the Other License Operator (Alternate
Network Operator) and Report Type determines the range of sub-products these volumes are pointed to in ASPIRE.
CVTT - This system provides computation of data for all the values derived from CSCS, INBOUND and INCA and this data is fed into the
ASPIRE processing system.
Processed data from INBOUND is used to calculate a percentage ratio used to split the range of sub products for basic and advanced
traffic.
Route factors - The Call Volume data is non-factored. The route factor process provides source data after reformatting the group data by
(Product, Prod, data_designator). RA route Factor codes in the Route Factors are mapped directly to individual sub-products. These data
along with the Call volume data is used in the ASPIRE Processing. The Route Factor data is provided for the BT Network.
IAG - Provides data for BT Own use. The source data is categorised for Pay and Computing Areas.
Powerhouse
Powerhouse is a reporting system for Product volumes i.e. number of calls over number of exchange lines by trading unit. It is a front-end
query tool that interrogates raw data from other systems such as Call Statistics Centralisation System (CSCS), Private Circuits New Billing
System (PCNBS) and Central Database System (CDS). Powerhouse reporting enables end users, primarily in BT Retail, Global, Openreach
and Group, to report on volumes of calls, exchange lines and inbound services etc.
The application has an Oracle database held on a UNIX server and comprises a number of summarised Online Analytical Processing (OLAP)
databases (Oracle Express) built from data held in the relational database tables. Powerhouse comprises of a three tier architecture with
NT-based web server at the top, NT-based ORACLE Express server in the middle and an existing UNIX machine hosting the ORACLE back
end database on the third tier.
PULSE (Processor Utilisation and Loading of Switch Equipment)
PULSE is used to capture processor performance (equipment, traffic, calls and processor occupancy). The threshold/trend of this
information is apportioned to give an indication to planning duties of exhaustion to trigger either a re-arrangement or extension to a
particular switch. The information stored is also used to analyse configuration to resolve performance issues and monitor critical
processor resources (e.g. Traffic Handling Magazines). Network capacity is key to the performance of our network. Critical resources need
to be monitored and reported on so that BT provides the optimal network configuration, at least cost. BT also has a responsibility to show
in its quarterly report the amount of network capacity that is in the network, PULSE is used to provide this information.
RIDE SDW (Recorded Information Distribution Equipment)
RIDE is a mass call termination platform playing pre-recorded announcements and capturing voice messages and data. The platform
provides a wide range of services from speaking clock (Timeline) to call centre overflow, televotes and TV quiz show services and is
capable of handling more than 200,000 calls per minute. The SDW (Statistics Data Warehouse) is specific to the RIDE platform and is
utilised to capture call volumes. The system retains 3 months full data and a 2-year summary archive.
SCARS (Sales Contribution Analysis Reporting System)
SCARS is a management information system reporting revenue by Product, by customer, by month using a web based intuitive front end.
In addition SCARS data feeds a number of other systems, these include: SCORS, MARK, BMW, CDMC, Amethyst, CXD, CIA, GOLD, SIMON,
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RADAR, SABRE, ABC, CCAT, ICIP and JUPITER. SCARS was initiated in 1993/94 to enable the reporting of billed revenue for all BCD
(Business Communication Division) and certain Non BCD revenue streams by Sales Account for all Global (Multi National Sales and Service)
customers.
Revenue data is received from over 90 different billing feeds. However, two things need to happen in order for revenue to appear on
SCARS. Billing accounts need to be linked to a legal entity (LE). LE's need to be linked to Sales Accounts (SAC's) within C-CAT. This then
enables the revenue data to be reported against the correct channel.
Information is arranged on SCARS based on two hierarchies:
•
Customer hierarchy - This is structured by: Channel - Sector - Segment - Sales Account - Legal Entity - Billing Account. Note that
Channel, Sector, Segment, Segment and Sales account data is fed to SCARS from a customer reference database called C-CAT
(Customer Channel Allocation Tool). Billing accounts are linked to legal entities using various key criteria to make the match, one of
the most important being the billing account name. In the main, revenues are identified as two categories - CSS billed (Public
Switched Telephony Network PSTN) and non-CSS billed (Non-PSTN). The CDMC links PSTN billing accounts and SCARS links NonPSTN billing accounts.
•
Product hierarchy - This is structured by: Revenue Stream - Revenue sub-stream - Product group - Product. This information is
derived from the Product map used by BT management accounts.
SCARS sits within BT Retail as our customers perform Marketing and Sales activities and it is our responsibility to provide business services
to our customer base. SCARS data is supplied by a number of billing feed's which can be reconciled back to BT's financial system's and
therefore, it is important to note that the data is not owned by SCARS but is under the ownership of our Internal Billing Suppliers.
SPG (Service Provider Gateway) - Wholesale Calls and Access
Service Outage Reporting System. It is the wholesale electronic gateway between Service Providers and various BT Operational Support
Systems (OSSs) for Wholesale Calls and Access.
Siebel
Siebel Converge our Customer Relationship Management (CRM) application. It has been tailored to BT’s own business processes and
needs using customisable software produced by Siebel Systems.
Siebel system provides data for activity surveys related to the sales channel that are used in the base calculations.
SMART
SMART is a telecom application providing a user-friendly front-end for call centre agents involved in customer care and support of
residential and small business customers. It is Computer Telephony Integration (CTI) enabled and helps automate business processes, such
as provision of telephony service, billing enquiries and fault repair.
SMART is intended to enhance productivity of Customer Service Advisors (CSAs) by reducing the call handling time and entry errors with a
user friendly interface and to improve revenue by enabling CSAs to sell to the customer at every opportunity.
Currently SMART handles inbound calls made at number 150 and provides about 50% of the functionality of the Customer Services
System (CSS) for the calls made at this number. It also handles calls made at number 151 for Repair handling. SMART regularly undergoes
significant enhancements in its functionality.
SWIFT
This system is an integrated data warehouse used by BT Retail that holds customer details, billing and revenue data. It has been hitherto
the single source of data for BT Retail Marketing. The database allows BT Retail to analyse all its Customer Service System (CSS) based
customers
For Siebel Oneview handled customers, the equivalent set of data is held in the SWIFT successor system, EDW (Enterprise Data
Warehouse), and SWIFT exports all its data to that system. EDW went live during May 2007 with the commencement of Consumer mass
migration from CSS to Siebel Oneview commenced late June 2007.The current feed from SWIFT to Accounting Separation should be reengineered to use EDW instead and the SWIFT feed switched off. When SWIFT is switched off, all the feeds from CSS systems will be
diverted to EDW where the build of EDW has not already replicated these.
SWIFT also supplies the data used by the Campaign Management Tool (CMT), used for targeting Consumer customer marketing campaigns
and will be able to measure their effectiveness, by allowing pre and post campaign analysis. CMT was also replaced during 2007 by Siebel
Marketing.
TEM (Telephony over Passive Optical Network (TPON) Element Manager)
This system holds records on the TPON Network. These are fibre cables between the local exchange and street cabinet or business
customers’ premises.
It holds data on the type of electronics installed, capacity used and available and circuit identifiers. It is used for maintenance and
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providing new circuits on the TPON Network.
TITAN (The Interbusiness Transfer Charging and Agreement Network)
TITAN is the BT business-wide system for processing Interbusiness charges. It is an Oracle Financials package that has been customised to
meet the requirements of the business. It allows for a consistent and controlled approach throughout the business in order to eliminate
discrepancies and misbalances and to enable a business-wide net settlement of debts and balance agreement. It is BT Group Finance
policy that all Interbusiness bills are processed via TITAN (in detail or in summary) and as such it is mandatory for all BT Core units, selfaccounting units and subsidiaries. It is designed so that transactions between them will always be in equilibrium.
Each unit on TITAN is identified by its GFR (Group Finance Reporting) element number. Each GFR has a functional currency, which is the
default currency, but bills may be issued in any of the currencies set up on the system. The functional currency for Core is Pounds Sterling.
Each GFR also has a default method of settlement such as Next Period, Treasury etc.
For every type of charge being raised via TITAN, a TCA (Transfer Charge Agreement) has to be in place. This is a formal agreement between
the charge originator and receiver accepting the transfer of predetermined charges.
Bills to be raised are input to the Accounts Receivable (AR) module by END User or his Representative and a corresponding entry is
automatically generated by Batch process in the Accounts Payable (AP) module for the receiving unit. The two modules will always be in
step, subject to batch processing times.
Similarly, the Customer’s AP payment entries are reflected in the Supplier’s AR system. This ensures that both sets of books and therefore
the complete set of BT’s books are always in equilibrium.
TITAN has its own General Ledger (GL) and there is a daily posting run to post AR and AP transactions to TITAN GL. TITAN GL has journal
voucher facilities to enable the posting of Accruals/Prepayments.
TXD-OP (Digital Exchange Output Processing)
TXD-OP is a key system for Public Switched Telephone Network (PSTN) call performance measurement. It collects a systematic 1 in 300
sample of every call attempt from all PSTN exchange systems. Call records are extracted to the CARISMAN system where data is
summarised to produce a variety of call performance measures for publication to Ofcom and for use within BT. TXD-OP call data also
provides the basis for Accounting Separation (AS) information for Ofcom. This is to satisfy conditions within the Telecommunications Act
2003, with regard to the reporting of Separated Accounts and has important uses for other areas of the Business such as capacity
planning, product management and marketing. Call data is held for a rolling 10 weeks. Approximately 95 million records are loaded each
month into the TXD DB2 Tables.
TXD-OP Data in:
•
Exchange source stats data, collected via MEDIATOR (BDS)
•
CISA extract of Other Licensed Operator (OLO) number ranges (FTP)
•
EXPRES extract (FTP)
•
NEMOS-DR extract (FTP)
TXD-OP Data out:
•
CARISMAN daily extracts.
•
NEMOS-MT daily extracts (FTP)
•
PULSE monthly extract (FTP)
•
NEMOS-DR daily file (FTP)
WCR
WCR is a computer system for BT Wholesale. It is the Wholesale Customer Reporting System,
Willow
Willow is the main computer system for BT Fleet. The system holds data for all the vehicles in BT’s motor transport fleet and non BT
customers, including company cars.
The Willow computer system is used to record details of all work carried out on BT and non BT vehicles and it includes the management of
service schedules, repairs and legal compliance.
290
Work Manager
Work Manager is the primary scheduling, allocation and dispatch system within Openreach to manage work. The system uses automated
scheduling techniques to identify appropriate engineers to undertake work on the basis of skill, location and customer required by times.
The system manages work for all the key regulated and non-regulated products. Work Manager also manages task closures from data
recorded by the field engineers for receipt by Work Manager and upstream systems and subsequently Communication Providers.
Overview – Work Manager is the prime scheduling allocation dispatch and task management system for Openreach supporting
approximately 15000 users primarily the OR mobile field engineering workforce. The automated Work Manager scheduling engine
allocates work to suitable field engineers using the inbuilt Work Manager scheduling rules, work is subsequently dispatched to field
engineers via an encrypted 3G/GPRS link to the field devices associated with the field engineers. The notification messages from the field
engineers may implement one or more of the following:
• Task Closure to back end systems in near real time to avoid SLG payments.
• TRC information.
• ONT switch on.
Work Manager supports a wide range of systems requiring work to be tasked to field engineers for most of the key OR products for the
T2R and L2C journeys including WLR 3, NGA and SBS. Such systems are integrated to Work Manager using automated bi-directional
interfaces where the interface data integrity/ accuracy is checked for each message from source system to Work Manager and Work
Manager to destination systems using automated data checks at the Work Manager, middleware and source/destination system against a
defined ICD and Interface Specification for each system interfaces.
291
Section 9- Line of Business Organisational Unit Codes (OUCs)
Each Line of Business (LoB) in BT has their own Organisational Unit Code (OUC) to which their revenues and costs
are booked on BT’s general ledger. The top level code for each LoB is as follows:
Top Level OUC
Description
B
OPENREACH
C
BT GROUP HEADQUARTERS
E
CORPORATE ADJUSTMENTS
F
BT CORPORATE SERVICES
G
GROUP CONSOLIDATION UNITS
J
BT GLOBAL SERVICES
K
BT WHOLESALE
M
BT RETAIL
T
BT TECHNOLOGY, SERVICE & OPERATIONS
V
GROUP ENGINEERING / SECURITY
W
BT PROPERTY
Y
BUSINESS SERVICES
292
Section 10 - Glossary
Term
Description
Notes
AC
Air Conditioning
Plant cooling equipment
ACG
Accounting Control Group
BT Group which meets monthly to
approve all accounting changes
ACR
Accounting Change Request
Form which initiates an accounting or
reporting change including requests for
new GL8 codes
ADM
Add and Drop Multiplexor
Network device that brings different
links together
ADSL
Asymmetric Digital Subscriber Line
Broadband Line
AIM
Analysis & Inventory
BT Data Source
AISBO
Alternative Interface Symmetric broadband origination
Next generation connection interface
such as Ethernet.
Amsoft
a.k.a. ASC
BT National Stores system
AS
Accounting Separation
Separation of cost to products and
services and internal businesses.
ASC
Automated Supply Chain
(originally American Software Corporation)
Supply chain system. Used for stores
purchasing, order management, stock
control and stock accounting.
ASDH
Access Synchronos Digital Heirarchy
Network devices that push high
bandwidth services closer to the edge of
the network
ASPIRE
Accounting Separation, Product Integration Reporting
Environment
Bespoke Oracle system used to produce
BT's regulatory results
ASSURE
Accounting Separation SecUre Repository Environment
BT developed Oracle application used to
load, validate & transform ASPIRE
tables prior to system runs
ATM
Asynchronos Transfer Mode
Legacy TDM to transport voice and data.
AVR
Authomatic Voice Response
Telephony platform that asks an end user
for a response to questions. E.g press 1 to
speak to an operator, press 2 to leave a
message
AXE-10
Ericsson TDM Voice switch
Legacy TDM switch
BEA
Broadband Edge Aggregator
Network node where other broadband
communication providers connect to.
293
Term
Description
Notes
BES
Backhaul Extension Service
A carrier service link that connects from
the MSAN to the BRAS platform.
BIFR
Business Insight Financial Reporting
also known as Hyperion, Perform &
HFM
BBIP
Broadband IP
Generic term for referring to IP
infrastructure and service for broadband
services.
BRAS
Broadband Remote Access Server
Network node where broadband traffic
from end users terminate and connects to
the Internet.
BT1P
General Ledger Platform
Platform which hosts all LoBs ledgers
Also covers the e-journals application.
C7 (SS7)
Comité Consultatif International Téléphonique et
Télégraphique (Signalling System No 7)
Global voice signalling standard for
voice communications
CAM
Cost Allocation Model
Used to describe the LoB costing models
which assign & apportion costs to
Products & Services
Campaign Management Evaluation and Reporting
Used in Core BT units to allocate
marketing budgets to marketing
campaigns and manage and monitor the
spend vs budget.
C-CAT
Customer to Channel Allocation Tool
This is used to record the Customer
Hierarchies for larger customer, it is
used to manage the hierarchies between
related customers, allocating accounts to
sales and service people. It is used to
feed SACRS to correctly record revenues
against Accounts, Customers and
Sectors.
CE
Customer Edge
Customer side equipment
CCRN
Command and Control Router Network
Private network to manage internal
network nodes.
CCTV
Closed Circuit Television
Private Visual TV monitoring service
CDR
Central Data Repository
Database which provides common
information to Hyperion Reporting &
Planning cubes
CDR
Call Data Record
File produced when a telephone calls
starts and ends.
CDS
Central Data Source
BT Data Source
CID
Central Information Database
see E-Reports
CAMERA
294
Term
Description
Notes
Clarity
Clarity
A system which collects, verifies,
reconciles, authorises, collates and
diseminates non-engineering and all nonUK time allocation and overtime /
allowance data
CMA
Change of Management Assignment
Use by eOrg to transfer FTE to new
reporting manager
CMSAN
Copper Multi Service Access Node
Broadband device where end user phone
lines connect into the BT Network
CoA
Chart of Accounts
Used to record and report against all
financial transactions
Colo
Colocation Location
Data Centre or telecoms facility where
other communication providers all colocate
COSMOSS
Customer Oriented System of Management of Special
Services
BT Data Source
CoRD
Common Reference Data
This is used to store reference data for
Core BT units and then to feed the
financial reporting systems as required.
CoS
Change of Structure
A process used to create OUCs on eOrg controlled via the RDM team.
COS
Cost of Sales
A common abbreviation used for direct
costs - used in the calculation of 'Gross
Margin'.
COW
Class of Work
Activities (eg Maintenance &
Construction) which identify the plant
type or the product group/service being
worked on. Usually identified as part of
job/project set up
CP
Communication Provider
Term to describe another telecoms
service provider
CPE
Customer Premises Equipment
Network device still on the customer site.
CPL
Carrier Price List
Price list for carrier services
CPS
Carrier Pre-Select
Service where customer determine which
carrier to route calls over
CRM
Customer relationship management
Generic term for managing customer
interfaces.
CSCS
Call Statistics Centralisation System
System used to produce call volume &
revenue information from exchange call
records
295
Term
Description
Notes
CSS
Customer Service Systems
System used to update rental volume
information to support customer billing
CTCS
Core Transmission Costing System
BT Data Source
CWSS
Copper Wideband Servicing Section
BT Data Source
DACS
Digital Access Cross Connect
Device for connecting lines together
DC
Data Centre
Purpose built facility to house large scale
computing infrastructure.
DLE
Digital Local Exchange
Legacy TDM switch that is a small
device that connects to local lines that
connect to the home.
DMSU
Digital Main Switching Unit
Legacy TDM switch, that is a large
device connecting to local smaller
exchanges
DP
Distribution Point
Point where the BT network connects to
wider end points that terminate at end
user homes.
DQ
Directory Enquiries
Helpline fo finding phone numbers
DSL
Digital Subscriber Line
Broadband line
DSLAM
Digital Subscriber Line Access Multiplexor
Broadband device than sends the
broadland IP down the telephony line
DLE
Digital Local Exchange
Small exchange that is digital
DLT
Digital Line Termination
Position where digital phone lines are
connected and terminated on the
network.
DNS
Domain Naming Service
Method to convert numeric internet
addresses into useable .co.uk, .org or
.com etc names
EAD
Ethernet Access Direct
Ethernet Access Services
EBD
Ethernet Backhaul Direct
Backhaul service that connect access
nodes to the core network.
EBITDA
Earnings Before Interest, Taxes, Depreciation and
Amortisation
A widely used measure of "controllable"
profit roughly equating to operating
profit excluding depreciation
EFM
Ethernet First Mile
Ethernet services from customer site to
the network.
EIN
Employee Identification Number
Unique 9 digit multi purpose number
assigned to each employee. Used to
296
Term
Description
Notes
control access to reporting applications.
E-journals
The on line input & & authorisation
system for journal vouchers which are to
be posted to the general ledger.
eOrganisation
eOrganisation
People & asset management system.
Holds details of OUC and assets
assigned to people at EIN level.
Commonly referred to as eOrg.
EM
Element Manager
BT Data Source
e-Reports
e-Reports
Ageing but dependable management
reporting system previously known as
CID. In the process of being phased out.
essbase
Essbase
Hyperion Cube System used for
management reporting & planning
ETG
Engineering & Technical Grade
A band of employee
EU
End User
A consumer
EUT
End User Technology
Term to describe voice and data user
services in BT
EOI
Equivalence of Inputs
All communication providers are treated
as if they were the same as a BT internal
company
EPPCs
Ethernet Partial Private Circuits
Links that are Ethernet based to link sites
together to create a closed private
network
Extract, Transform & Load
Generic process of data extraction,
conversion & upload. In the Hyperion
context the term is used specifically for
the processes of extraction of raw ODC
data, loading to a staging table, applying
further processing and finally uploading
to the CDR.
ETG
Engineering & Technical Grade
This is a non-management grade within
the business. It is often used with tiome
recording systems to allocate hours to
projects.
EVOTAM
Evolution Test Access Matrix
Advanced Test Equipment to test the
copper lines.
FAC
Fully Allocated Cost
100% apportionment on cost
FER
Front End Router
Routers that provide an IP connection
from one carrier to another.
eJV
ETL
297
Term
Description
Notes
FMSAN
Fibre Multi Service Access Node
Access electronics device, that is fibre
ready to connect to the end user and also
fibre back to the exchange.
FSE
Force Structure Element
More commonly known as Force Types For pay purposes people are classified
into the following categories, known as
Force Types
FTAM
Frame Test Access Matrix
Test Equipment that sits of the frame in
the exchange
FTE
Full Time Employee
Member of staff.
FTP
File Transfer Protocol
Method of moving files between
computers
FTTC
Fibre to the cabinet
Optical fibre from the BT exchange to
the cabinet
FTTP
Fibre to the premises
Optical fibre from the BT exchange to
the home.
FTTx
Fibre to the (cabinet or home)
Optical fibre from the BT network to
either the cabinet or home
GAMMA
Gamma
Unified management reporting systems
(including Hyperion cubes) for BT
Global Services
GCS
Group Consolidation System
The Hyperion HFM consolidation
system which replaced Planmaster. Also
known as GCS HFM and previously
known as Thin Layer.
GNCM
Global Network Costing Model
BT Data Source
GEA
Generic Ethernet Access
Ethernet access using the access fibre
from a street cabinet
GFP
Global Finance Platform
The common Global Services platform
which hosts the integrated Oracle
financial applications for countries and
entities that have been migrated.
Progressively all Global Services entities
are being migrated to this single
platform.
GL
General Ledger
BT Data Source
GL8 code
8-digit General Ledger code
Codes used in the Chart of Accounts for
"core" BT units
GLOSSI
Global Support for Invoicing
BT Data Source
298
Term
Description
Notes
GPRS
General Packet Radio Service
Mobile data service
GSM
Group Special Mobile
International Standard for 2nd Generation
mobile digital services
GS HFM
Global Services Hyperion Financial Management
Hyperion application used by Global
Services for management reporting.
HDF
Hybrid Distribution Frame
Added frame in an exchange to connect
consumer lines to the main telecoms
nework.
HFM
Hyperion Financial Management
Hyperion application used for group
consolidation (see GCS) and GS
reporting (see GS HFM)
IC
Interconnect Circuits
Links that connect one carrier to another
carrier (another term for point of
handover)
IIE
Inter & Intra Eliminations
Module used to manage deals between
BT trading entities to ensure that they are
agreed by both parties
IN
Intelligent Network
Computer Platform that translates nongeographic numbers to geographic
destinations.
iNET
Information Network
Internal Management Network.
INS
Integrated Network Systems
BT Data Source
IP
Internet Protocol
Packet network that moves information
(Voice & Data) using the TCP/IP
protocol
IP
Intelligent Peripheral
Network system for giving routing
information for telephone calls.
IPL
Internal Project Ledger
Project’s private ledger of accounts
IPLC
International Private Leased Circuit
Line that connects 2 sites on a dedicated
connection
ISDN
Integrated Services Digital Network
Legacy Digital TDM line
ISP
Internet Service Provider
Communication provider that enables
end users connect to the internet.
ITC
Inter-Tandem Conveyance
Transmission services that links carriers
together who do have a direct link
between them
ITT
Inter-Tandem Transit
Transmission services that links carriers
together who do have a direct link
299
Term
Description
Notes
between them
ITU
International Telecommunications Union
Executive agency of the United Nations
that sets international
telecommunications standards.
IXBS NG
Interconnect Bureau Service New Generation
BT Data Source
Java Runtime Environment
"Foundation" module component used to
interface with Hyperion eg as a data
input interface for eliminations, overlays
& deals.
JRE
JRMIS
Job Recording Management Information System
From JRMIS, a variety of reports are
available covering many statistical
aspects of the data entered via NJR.
KMH
Kilo Man Hours
1000 hours of manpower time
LAN
Local Area Network
Office network
LC
Line Card
Piece of network equipment that
connects into a slot on an network
element
LCC
Local Cost Centre
A management entity to which only
'COSTS' are allocated.
LDX
System X local exchange
TDM Legacy Voice Switch
LDY
System Y local exchange
TDM Legacy Voice Switch
LE
Local Exchange
The first exchange that a phone line
connects to.
LLCS
Local Line Costing Study
BT Data Source
LLFN
London Local Fibre Network
Dedicated optical network for business
customers in London
LLU
Local Loop Unbundling
Ability to offer other carriers to access
the BT local line.
LRIC
Long Run Incremental Cost
BT Data Source
LoB
Line of Business
Internal Subsidary Company
LoP List
Life of Plant List
BT Data Source
MDF
Main Distribution Frame
Static device in the BT exchange where
all phone lines connect to the BT
network.
MISBO
Multiple Interface Symmetric Broadband Origination
Term to define services over 1Gb/s
MNS
Managed Network Services
Where one carrier manages other carriers
300
Term
Description
Notes
network and services to the end user
MPLS
Multi Protocol Label Switching
IP Network capable of carrying voice
and data. Sometimes known as a
coverged network.
MPF
Metalic Path Facility
Copper line that can offer voice and
broadband
MSAN
Mutliservice Access Node
Next Generation Access device that
sends broadband down the telephone lne.
MSPE
Multi Service Provider Edge
Network device that resides in the
customer environment that can handle
voice and data.
MMM
Metadata Maintenance Module
Hyperion module which is used to
maintain reporting hierarchies.
MSIP
Multi Service Intranet Platform
BT Data Source
NAS
Network Acces Server
Computer platform authenticates users
onto the network
NBV
Net Book Value
Calculation: [NBV = Gross Book Value
minus the accumulated depreciation plus
assets in course of build.]
NEMOS-DR
Network Modelling System Data Recovery
BT Data Source
NIMS
Network Instruction Management System
Used to plan & monitor network
engineering & equipment jobs
NETA
Non Engineering Time Apportionment
Employees (predominantly the nonengineering workforce) - must be
designated Force Type 3 users on eOrg.
NGA
Next Generation Access
Replacement to copper connectivity to
the home.
NGS
Next Generation Switch
Legacy TDM switch to work along side
the System X and System Y devices.
NIP
Network Intelligent Platform
Computer platform that translates phon
numbers
NISM
Network Inventory Spares Management
BT Data Source
NJR
National Job Recorders
All people who record time using NJR must be designated as a Force Type 1
user on eOrg.
NOC
Network Operations Centre
Purpose built secure facility to monitor
and manage a telecoms network.
NRS
Network Records System
BT Data Source
301
Term
Description
Notes
NTE
Network Termination Equipment
The B end of a connection
NTT
National Transaltion Table
This sits at the front end of the TP
(Translation Process) and translates all
'feeder' transactions coming into the BT
Ledgers.
OA
Operator Services
Telephony helpline information and
services
OAM
Overlays & Adjustments
Hyperion module which manages the
input of overlays & adjustments
OBI
Oracle Business Intelligence
Oracle application used for transaction
reporting
OBIEE
Oracle Business Intelligence Enterprise Edition
The version of OBI implemted in BT to
replace Microstrategy
OC
Optical Carrier
Generic term to refer to fibre optics
carrying voice or data.
OCP
Other Communications Provider
Another carrier to BT
ODC
Oracle Data Centre
Data warehouse which holds general
ledger information and transaction detail
from feeder systems
ODF
Optical Distribution Frame
Optical equivalent to a copper frame in
an exchange building.
OLAP
Online analytical processing
generic term
OM
Office Machines
BT own use machines
OMC
Operations Maintainence Centre
BT Data Source
OR
Openreach
BT Access Company
OSS
Operational Support Systems
Computer systems that manage the end
to end network
OUC
Organisation Unit Code
A management entity to which a number
of employees are mapped. Also referred
to as Cost Centre.
OVP
Over Voltage Protection
Fuses that protect the copper network
from a power surge from the access
network.
PACS
Planning Assignment and Configuration System
BT Data Source
PaBX
Private Automatic Branch Exchange
Telephony Customer Premises
Equipment that business use.
302
Term
Description
Notes
PBX
Private Branch Exchange
Telephony Customer Premises
Equipment that business use.
PC
Private Circuits
Business lines sold to connect sites
together.
PCP
Primary Connection Point
A green cabinent where copper lines
connect to the BT network.
PDH
Plesiochronos Digital Hierarchy
Legacy transmission equipment
PE
Provider Edge
Router that sits on the edge of the carrier
network that links to the customer router
PECN
Public Electronic Communications Network
National telecoms network
P&L
Profit & Loss
Gain and Loss expenses
POCP
Payments to Other Communications Providers
Financial payments made to other phone
companies.
PFC
Project Financial Control
Oracle application used to monitor
projects & programmes which feeds into
the General Ledger & ODC
PI
Purchase Intellligence
OBI based reporting system for the iBuy
procurement application.
POH
Point of Handover
Where one carrier interconnects with
another carrier.
POI
Point of Interconnect
Handover point where one carrier
connects to another carrier.
POP
Point of Presence
A site where the network offers
connectivity to end users.
Powerhouse
Powerhouse
Oracle application used to hold audited
product volume data for system size, new
supply, takeovers & cessations
PRAVAT
Product Reporting and Volumes Analysis Tool
BT Data Source
PULSE
Processor Utilisation and Loading of Switch
BT Data Source
PRI
Primary Rate ISDN
2Mb/s ISDN lines that are delivering
service at 64kbit’s in digital format
PSTN
Public Switched Telephone Network
Traitional legacy voice service
RADIUS
Remote Access Dial In User Service
Username and Password Database that is
used to authenticate users connecting to
network service.
RAFT
Resource Analysis Flow Tool
Decision support system hosted on the
NIMS platform & used for resource
303
Term
Description
Notes
forecasting & allocation.
RCM
Release & Configuration Management
Steria team dealing with software
upgrade implementation
RCU
Remote Concentrator Unit
Switch that grooms domestic lines into a
local exchange
RDM
Reference Data Management
BT team supporting Hyperion reporting
hierarchy maintenance
RDS
Reference Data System
Oracle application used to control &
maintain accounting & reporting
reference data, driven from ACR
changes
RFS
Regulatory Financial Statements
BT regulatory financial numbers
RIDE
Recorded Information Distribution Equipment
BT network platform that gives call
announcements.
RTU
Regulatory Trading Unit
BT unit which acts as a trading interface
between Openreach/BT Operate & the
customer facing LoBs
SAU
Self Accounting Unit
BT units which manage their own
ledgers outside of "core" accounting
systems
SCC
Standard Cost Centres
This is a specialised usage of a 'Cost
Centre' for Accounting purposes. This
type of cost centre can only be set up
using the ACR procedure.
SCP
Service Control Point
An Intelligent Network device that
handles calls and gives intelligent routing
information
SFR
Standard Financial Report
How General Ledger Codes are fed to
create a general report.
SFI
Special Fault Investigation
Openreach work to identify a complex
network fault, requiring dedicated
technical specialists
SIP
Session Initiation Protocol
Voice of IP method of voice
communication on an IP network.
SDH
Synchronos Digital Hierarchy
Legacy optical transmission equipment
sometimes known as as SONET
SHDS
Short Haul Data Service
Optical transport technology using dark
fibre
SDSL
Symmetric Digital Subscriber Line
Broadband that offers the same speed in
both directions. (upstream and
304
Term
Description
Notes
downstream)
SG&A
Sales General & Admin
A classification of costs commonly
referred to as overheads ie excluding
direct costs
SLR
Standard Labour Rate
a common labour costing method with
common components (e.g. base pay,
pension, NI…), set by grade and country
SLRC
Standard Labour Rate Costing
System to cost labour hours
SMDS
Switched Megabit Data Service
Legacy data service for large bandwidth
users.
SME
Small & Medium Enterprises
Smaller xxternal companies that are sold
BT products and services
SMP
Significant Market Presence
A business with influence in the market.
SMPF
Shared Metalic Path Facility.
Copper line that can offer voice from one
communication provider and broadband
from a different communication providor
SONET
Synchronos Optical Network
Legacy optical transmission equipment
sometimes known as as SDH
SPPL
Service Provider Price List
BT’s price list for services and products
for other communications providers to to
purchase
STARS
STARS
The Steria platform used for logging and
managing queries raised with the
integrated service desk.
STP
Signalling Transfer Point
Network Node for controlling voice
traffic routes
Thin Layer
Thin Layer
The previous name for GCS HFM
T&S
Travel and Subsistence
Staff expenses
21CN
21st Century Network
BT’s new network to replace legacy and
obsolete equipment.
TAMS
Test Access Management System
Line test device to test an end user phone
and broadband line.
TDM
TITAN
TISBO
Moving voice or data an a specific
interval of time
Time Division Multiplexing
The Interbusiness Transfer Chanrge Agreement
Network.
Traditional Interface Symmetric broadband origination
305
This is a computer system used for
internal market charging by BT's
divisions.
Legacy connection interface
Term
TP
TPON
TRC
URN
UXD5
VAT
VDM
VDSL
VIP
VoIP
VPN
WAN
WBA
WBC
WECLA
WES
WDM
WLR
Description
Notes
Its function is to take financial and
statistical feeds from disparate
applications, both BT core and Non-Core
(mostly Fleet), convert them to a
common format, translate and validate
them and then pass them on to ODC
which is a downstream application. The
incoming transactions may have just a
Cow, or just a GL8 or may have neither
and contain Fist Codes
Transaction Processor
Telephony over a Passive Optical Network
Optical delivery of residential telephone
service over optical access
Manpower time for field engineering
services
Time Related Charges
Another term used to describe the EIN,
employee identification number
Unique Reference Number
Legacy TDM small exchange
Unit eXchange Digital 5
Government Tax on sales
Valued Added Tax
There is 1 Vendor Data Master for the
UK which is a consolidation of a number
of historic vendor mastering systems.
Vendor Data Master
Very High Bit Rate Digital Subsciber Line
High Speed Broadband such as NGA
Intelligent network deivce that routes
calls based on specific rules
Voice Intelligent Peripheral
IP method to transport voice traffic.
Voice over IP
Closed network
Virtual Private Network
Network that connects remote sites.
Wide Area Network
Broadband access service sold to carriers
from BT Wholesale.
Wholesale Broadband Acess
Broadband service sold to carriers from
BT Wholesale.
Wholesale Broadband Connect
High density of telecom services and
carriers of choice.
West East Central London Areas
A carrier service that offers connectivity
from an access node to a network node.
Wholesale Extension Service
Moving information using optical
connectivity to use varying wavelengths
Wave Division Multiplexing
Opportunity for other carriers to sell BT
Wholesale Line Rental
306
Term
Description
Notes
network products and services.
YTD
For the past 12 months up up until now.
Year to Date
307
Appendix A: Key Destinations
The attached table in the spreadsheet format gives the key destinations of each of the
bases identified in the DAM
308
Appendix B: Sector Allocations
The attached table in the spreadsheet format identifies the destintions or
apportionment base applied to specfic F8 code / OUC combinations. The
methodologies applied are described in sectiuons 4-7 of the DAM
309