Developers Working
Group
14 April 2011
Welcome
Domestics
Rest rooms
Fire alarm (Stewards will direct)
Smoking
Liv Garfield - CEO Openreach
Agenda

1.15pm
Builders and Developers Portal

1.30pm
SOD Payment Updates

2.00pm
Building Policy Updates and New Sites Fibre Kit

2.30pm
New Sites Product Roadmap

3.00pm
NSRs and Site Office Lines

3.30pm
Coffee break

3.50pm
Next meeting topics

4.00pm
Leading Edge Marketing

4.30pm
Liv Garfield Openreach CEO

5.00pm
Close
Caution advised
Some information in this presentation relates to plans currently under
development and are subject to consultation, and may be subject to
change
Information in this presentation is subject to change
Builders and Developers
Portal
Kerry Nutley
Site Map
Discussion - Ideas for Future Releases
• Online registration process which triggers activity planning
• Ability for developers to submit (upload) and share documents with Openreach
• Ability to interact in real time with Openreach systems to create newsites job, initiate
planning activity and allow tracking of progress
• Track Service On Demand payments
• Other ideas?
HBF Service On Demand
Payment
Didier Cordina
Background
Building a new site from the telecom perspective involves off site and on site costs
a)
Reinforcement cost
b)
SOD payment
c)
Site office
£ out
£ in
Offsite cost also known as Reinforcement
The only element that is Chargeable at this stage is the
network between the premise and the existing network
163
How much do we charge ?
Network Reinforcement = Total scheme costs – Total Exemption Allowance
The good news is that there is an ample allowance per unit i.e plot
Total Exemption Allowance = No. of Units x £3,400
So for large schemes - it is unlikely that a charge might be raised
On site cost, also related to SOD payment
SOD payment support developers civils onsite costs
Openreach provides appropriate materials / stores as per contract
Developer installs Openreach material and Openreach performs a quality
check
Once all snagging issues are completed Purchase order is raised by
developer then payment is made
Openreach then installs its network apparatus end to end at its own cost
163
SOD payment levels pre 1st April 2011
• The Service on Demand Payment is a payment that Openreach and other
Telecommunication providers provide to Developers once they have installed ducts &
chambers to Openreach specification when constructing a new site, so we can later
provision our network apparatus
• The SOD agreement currently stands between Openreach and the Home Builders
Federation (HBF) who negotiations the rate on behalf of their members
• SOD payments paid to HBF members.
• London
-
£151 per Single Dwelling Unit
• Outside London
-
£135
• Scotland
-
£128
• North England
-
£118
• All flats across the country were
-
£47
• Payment to be made for 4 or more plots only.
• Payment was done when contract was ‘’complete’’ :
SOD payment levels from 1st April 2011
• London
-
£151 per Single Dwelling Unit
• Outside London
-
£140
• All flats across the country were
-
£50
•
Payment to be made for 11 or more plots only
•
Quality check and payment to be done every 25 plots
•
Rates subject to review in 4 Years time.
•
Agreement to a reference to the installation of any communications electronic
apparatus (subject to survey and availability) rather than just copper to take into
consideration of Next Generation Access (NGA)
Site Office Overview – Developer completing
on-site plant
The only element that is Chargeable at this stage is the
network between the site boundary and the existing network
163
Questions?
Planning Policy and New
Fibre Kit
Brian Currie and Martin Porter
Builder’s Guide: Contents
3 Welcome to Openreach
4 How to contact your nearest newSites
office
6 Make the Openreach newSites office
your first port of call
8 The Openreach policy for the supply of
telephony services on new
developments
9 Alterations to the Openreach network
10 Avoiding damage to the Openreach
underground network
11 Miscellaneous charges and how they
apply
12 Making the infrastructure work for you
14 Arrangement of carriageway
roadcrossings
15 Arrangement of mains services
16 Pre-formed chamber system
17 Non-standard frames and covers
18 Jointing chamber construction JBF
104/106
20 Specifications for Carriageway
Chamber
22 New External Termination Point (NTE)
24 Entry into flats and business properties
26 Openreach standard wiring guide
29 Broadband provision
30 Diverse routing
30 Blown fibre tubing
31 Wayleaves
31 Lightning protection
32 The Openreach payments process
34 newSites stores list
37 newSites stores order form
New Sites Product
Roadmap
Chris McEwan & Kerry Nutley
What does the Openreach New Sites solution look like?
The ultimate e2e solution for New Sites is based on the Openreach Fibre To The
Premise (FTTP) technology and products. These products are already being
deployed in Brownfield as part of our NGA roll-out but in many respects the New Sites
solution is different.
3 main factors shape the product – the needs of our customers (Developers and CPs),
the nature of New Sites development planning/build and very different New Sites
service take-up volumes
Openreach Story:
 Modular architecture
 “Pre-installed” ONT
 Remote provision of voice and data services
 Positive customer experience and RFT
Developer Story:
CP Story:
 Increased sales
 Fibre enabled from start (no post sale
civils or build activity)
 Homes Ready for the future (PAS
2016…)
 FTTP
 Easy to consume (similar/better than
Brownfield)
 Quality voice-over-fibre
 Efficient RFS and addressing solution
Information in this presentation is subject to change
What does the Openreach New Sites solution look like?
Customer
Experience
 Consistent with FTTP Brownfield for CP/EU
 New requirement to support site developer/agent – site plans, phasing, build coordination, manage SOD payments
Plan &Build
 Modular architecture based on 32 way split/blown fibre
 Flexible approach to support new sites environment
 Phased approach to build
 Build up to splitter node
Plot Call-Off
 Build up to ONT
 Register ONT serial number
 Prove basic connectivity (Sync between ONT/OLT)
 Ready For Service/Support address matching post plot call-off
 Builders guide to provide recommendations on build options
L2C
 Analogous to FTTP Brownfield “home move/existing ONT” scenario
 Remote delivery of services - data/FVA/Multicast
T2R
 Re-use existing capabilities – Test & diagnostics etc.
 Accommodate new network architecture – Main Fault Locations
New Site Product Development










Fibre Voice Access
Tactical New Sites
 Deploy Fibre to the Premises GEA to New Sites (Greenfield) premises with a
copper underlay
 Deploy Tubing Only to New Sites
New Site P&B Status/Developer’s Portal
New Sites Network Design
Strategic New Sites - Plan, Build & Record
Strategic New Sites - Plot Call-off
Strategic New Sites - In-fill
Strategic New Sites - L2C
Strategic New Sites - T2R
Futures
 Anchor product
 Further fibre alternatives for mixed/commercial premises
 Home wiring propositions
 Smart metering
Information in this presentation is subject to change
New Site Deployment


Tactical deployments underway –

Copper underlay/fibre overlay sites

All other sites future enabled, including tubing
Early view of Strategic New Sites deployment plan 
2 or 3 phase roll-out

Phase 1 - 1 to 5 sites November 2011 to October 2012, target 200 to 500 planned, 50 plots calledoff, 25 occupied by July 2012, limited copper contingency (built-in but not offered)

Phase 2 - significant additional sites starting March 2012 building up to national roll-out

March 2013 - All Tactical New Sites activity ceases (Copper Underlay process & tubing deployment)
and in-progress developments switch to FTTP on strategic deployment
Information in this presentation is subject to change
Discussion Point

What other products and services do you require?
•
IRS
•
Network for smart metering
•
Internal Wiring
•
Kit cupboards
November Pilot Request
We are looking for:
 5 sites across NGA footprint
 Sites to have 75 - 100 plots
 MDUs and SDUs on site
 Mix of demographics
 Mix of building type, commercial, residential, signage, bus stops
 Plans to be received by November, Openreach plans will be
returned by end of December
 Circa 20% occupancy in July
 Involvement in pre design meetings
 Partnership working on site
 Feedback on lessons learnt
In return:
 Support of subject experts across Openreach
 Your input into building new products and service
 First mover advantage of new fibre only service
 Introduction to CPs
 Collateral for show home marketing if required
 SOD payment
Information in this presentation is subject to change
Announced Exchanges
For More Information
http://www.openreachcommunications.co.uk/superfast/where
-and-when/
Information in this presentation is subject to change
New Sites Rep and New
Site Office Lines
Phil Orr
Service Delivery to Site Offices
Industry complaints to the OTA about service delivery to site offices – long lead times and
high cost.
Working group with UKCG established:
•
•
•
•
Root cause analysis of failed jobs
Site distribution points introduced
Site survey fee (in advance of order) trialled, but limited demand at the time
Jobs cancelled by systems – systems improvements made.
•
Process trial to reduce internal hand offs and reduce survey time to <5 days.
•
Working with the UK construction group representatives monitor live orders
Information in this presentation is subject to change
Order Monitoring
•
•
•
Live order monitoring exercise tracking orders submitted by the UKCG.
On completion, learning will be used to drive further process improvement.
Learning so far….
24.3.2011
Learning point
Update
Owner
Status
24.3.2011
Site office orders on hot sites process
to be clarified
Site offices on hot sites to be progressed as hot
site orders.
Openreach
Closed.
24.3.2011
Use of excessive LADs when
no/minimal network build required.
Business improvement manager appointed
Openreach
In progress
24.3.2011
Default LADs (20/30 days) used. No
specific calculation. Policy to be
clarified.
Business improvement manager appointed
Openreach
In progress
24.3.2011
ECC and LAD entered incorrectly
(wrong format)
Openreach
In progress
24.3.2011
FLOW system errors – orders not
processed
Openreach
In progress
24.3.2011
Order entered with unrealistic
CRD/appointment (March – site ready
until May)
CP
Pending
24.3.2011
Why escalate jobs when not delayed
or failed?
CP
Pending
Information in this presentation is subject to change
Business improvement manager appointed
Under investigation
Profile of Time to Survey in Openreach
Process Improvement Trial
•
•
•
•
Next steps
•
Process refinement to enable more accurate
performance measurement, continue trial.
•
Develop national measure to sustain process
improvement
50.00
40.00
30.00
20.00
10.00
0.00
1
21
41
61
81
101
141
June 2010
25
20
15
10
5
0
April 2011 (trial)
Information in this presentation is subject to change
121
Cases
1
9
17
25
33
41
49
57
65
73
81
89
97
105
113
121
129
137
145
153
161
169
•
Site office survey process is not working:
• too many internal hand-offs
• lead times >12 days
• site office survey priority in planning work stacks
Taking advantage of Network Investment
transformation to focus field planners on site
surveys
Survey appointment with site representative within
1 working day
Excess construction charges and line plant
available dates calculated no later than the day
after survey
Survey lead time reduced from 6.91 (baseline
before trial) to 4.35 working days.
Maximum lead time reduced from 49 days to 22
days.
Days
•
60.00
Planning Structural Changes
Information in this presentation is subject to change
Next DWG and Feedback
Coffee
CEO Openreach
Liv Garfield
Openreach has come a long way within BT Group in 5
years
Openreach
is created to
stimulate
competition
and innovation
2006
2007
Large scale
Investment in
the network
LLU hits 1.5m
milestone as
Sky and Talk
Talk enter
the market
2008
Major price cuts Significant
in access and
infrastructure build,
backhaul
LLU, WBC Ethernet
NGA
2009
Announcement
of ground breaking NGA
plans- GEA
is born
2010
4m Homes Passed
with Fibre and roll
out accelerating
2011
FTTC launched , BT
1st Developers
Infinity comes to market Working Group
Other CP’s prepare to
At BT Tower
Go to market
A better
NOW
business
New Site FTTP
Strategy discussed
here at the
Emirates
In 12 months we have created a strong fibre presence working with
CP’s as Openreach accelerates the infrastructure delivery programme
• 4 million+ premises already passed
> 400 exchanges live
 > 10,000 cabinets live
• On track for 10 million premises passed
by end 2012 and 66% of the Country by
2015
• Openreach’s products (GEA) have been
accepted as “fit for purpose” by industry.
• > 500 customers and 12 ISPs trialling FTTP
in Milton Keynes and North London
• Full FTTP launch scheduled for 11/12
• DETI* deployment in Northern Ireland
completes in May 2011. Cornwall
deployment is well underway.
BT Infinity is establishing itself as both a
consumer and a business brand
Now we want to work together with you to make
Fibre Broadband a reality in all new homes and
businesses
To Summarise
 We understand that you have choice of telecommunications provider
 Openreach enables you to provide choice of telecommunications
provider on your sites
 We want to work across the industry in Partnership to build a fibre
future for the UK
 We want to work with you to shape that future
Leading Edge Market
Insight
Mel Budd
GB Construction Output - Trends and Forecast
Mel Budd of Leading Edge –
Construction Forecasting & Market Research Specialists
14th April 2011
51
Introduction to Leading Edge
 Marketing and research consultancy, founded in 1988
 Specialists in the construction sector
 Our core services to clients include:
– Market and sales forecasting
– Market research
– Marketing strategy
– Customer service measurement and benchmarking
 Worked with Openreach in 2010
52
Example clients – housebuilders & building contractors
 Ashe Construction
 Gratte Brothers
 BAM Construct
 Interserve Rail
 Beard Ltd
 Kier Group
 Bowmer & Kirkland
 Leadbitter
 Bouygues
 Miller
 Cosmur Construction
 MITIE
 Costain
 Morgan Est plc
 EPS plc
 SGB Contracts
 ETSU Contracts
 Shanks Waste
 Geoffrey Osborne
 Willmott Dixon
53
Construction output
54
Construction output back on track?
Output value in £M (2005 prices)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2005
2006
2007
All new work
2008
2009
2010
All R&M work
55
The last quarter in 2010 showed first decline for over a year
Construction output & orders £m (2005 prices)
20,000
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2005
2006
2007
Output
2009
Orders
2005 - 2010 actual figures
Source: ONS
2008
56
2010
Significant differences in growth rates by region
Regional new construction output % change (current prices) - excluding infrastructure
South
South Midlands
East (E) East (W) & Wales
Year
South
West
Scotland
East
North
West
North
East
London
Total
2009
-20.7
-14.8
-23.6
-17.0
-22.0
-18.7
-25.8
-28.9
-16.1
-21.3
2010
29.7
23.2
16.4
10.0
7.7
6.7
4.4
4.2
2.0
9.9
57
Construction forecasts
58
Different types of forecasting models
Causal forecasting model
Time series forecasting model
Qualitative forecasting
59
Example of output from forecasting model
Commercial construction output - rolling 12 months actual v predicted
30,000
25,000
20,000
15,000
10,000
5,000
Predicted
60
Actual
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
0
20
£m Constant 2005 prices
35,000
20
05
Q
20 1
05
Q
20 2
05
Q
20 3
05
Q
20 4
06
Q
20 1
06
Q
20 2
06
Q
20 3
06
Q
20 4
07
Q
20 1
07
Q
20 2
07
Q
20 3
07
Q
20 4
08
Q
20 1
08
Q
20 2
08
Q
20 3
08
Q
20 4
09
Q
1
Speedy Hire sales forecasting model
R squared 0.96
Actual
sales
Forecast
sales
61
One dominating factor in construction sector forecasts
Government Department
2009 /10
2014 / 15
% change
Communities & Local
Government (incl HCA)
9.4
2.0
-78.7
Education
7.5
3.4
-54.7
Health
5.4
4.6
-14.8
62
New and R&M (repair and maintenance) construction output
Output value in £M (2005 prices)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2005
2006
2007
2008
2009
All new work
2010
2011
2012
2013
2014
All R&M work
Source: ONS and Leading Edge
63
2015
Output in 2011 is forecast to be 2.3% lower than 2010
Historic and forecast construction output by sector % change - constant 2005 prices
2009
Act
2010
Act
2011
F'cast
2012
F'cast
2013
F'cast
2014
F'cast
2015
F'cast
5.6
47.8
-19.6
-23.5
-11.5
-8.7
0.0
Housing - private
-25.0
10.4
5.4
5.5
5.2
5.7
6.0
Housing - total
-20.2
18.2
-1.1
-0.6
2.5
3.7
5.3
Infrastructure
14.5
22.2
2.7
1.7
0.8
0.8
-0.8
Public
33.0
32.9
-17.4
-17.4
-8.9
-7.3
-5.3
Industrial
-31.5
13.9
0.6
7.6
13.2
9.3
4.3
Commercial
-23.5
-0.3
1.8
4.3
5.8
5.8
2.9
TOTAL NEW WORK
-12.4
13.9
-2.6
-0.8
2.5
3.0
2.0
R&M housing - public
-3.6
0.5
-13.4
-5.7
-6.0
-4.3
0.0
R&M housing - private
-11.9
3.8
3.0
1.9
2.8
2.7
1.8
TOTAL R&M - housing
-8.9
2.5
-3.2
-0.6
0.0
0.6
1.3
-10.6
-12.9
-0.2
0.6
2.3
1.7
1.7
-9.8
-6.1
-1.7
0.0
1.2
1.2
1.5
-11.4
6.4
-2.3
-0.5
2.0
2.4
1.9
Housing - public
TOTAL R&M - non housing
TOTAL R&M
TOTAL ALL WORK
Source: ONS and Leading Edge
64
Some sectors will see growth on the 2007 peak
Historic and forecast construction output by sector £000m - constant 2005 prices
Housing - public
Housing - private
Housing - total
Infrastructure
Public
Industrial
Commercial
TOTAL NEW WORK
R&M housing - public
R&M housing - private
TOTAL R&M - housing
TOTAL R&M - non housing
TOTAL R&M
TOTAL ALL WORK
% change - all work
2007
Act
2.9
18.0
20.9
7.0
6.4
5.6
29.4
69.3
6.2
10.8
16.9
22.0
38.9
108.3
2.4
2008
Act
2.7
14.6
17.3
8.1
7.5
4.5
30.0
67.3
6.3
11.2
17.5
22.3
39.7
107.1
-1.1
Source: ONS and Leading Edge
65
2009
Act
2.9
10.9
13.8
9.2
9.9
3.1
22.9
59.0
6.1
9.8
15.9
19.9
35.8
94.8
-11.4
2010
Act
4.2
12.1
16.3
11.3
13.2
3.5
22.9
67.2
6.1
10.2
16.3
17.3
33.7
100.8
6.4
2011
F'cast
3.4
12.7
16.1
11.6
10.9
3.5
23.3
65.4
5.3
10.5
15.8
17.3
33.1
98.5
-2.3
2012
F'cast
2.6
13.4
16.0
11.8
9.0
3.8
24.3
64.9
5.0
10.7
15.7
17.4
33.1
98.0
-0.5
Residential – housing and flat development trends
Comparison of flat and housing completions - England only
110,000
100,000
90,000
Completions
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2002
2003
2004
2005
2006
2007
2008
Houses
Source: DCLG & Leading Edge
2009
2010
2011
2012
Flats
66
2013
2014
2015
Residential and offices will take a greater share of output
New construction output £m current prices - key sectors
Market
% of total market - % of total market 2010 (actual)
2015 (forecast)
Residential
33.9
39.0
Offices
12.7
16.0
Retail
10.6
12.2
Education
17.8
9.5
Industrial
6.4
8.7
10.4
8.3
8.1
6.3
Leisure / Entertainment
Health
Source: ONS & Leading Edge
67
Growth
Our view on the next 2 years in the construction sector
It’s going to get worse before it gets better
BUT
Companies focussing on the right sectors and regions
still see revenue growth, but margins will be tight
can
How does this compare with your view / experience?
68
Leading Edge Delivering a better understanding of customers and markets
www.lead-edge.co.uk
69