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Physical Infrastructure Access (PIA)

Internal Reference Offer (IRO)

August 2019 – Issue 4

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Foreword

On 28 June 2019, Ofcom published its Physical Infrastructure Market Review (PIMR) final statement setting

out the regulation applying to Openreach’s physical infrastructure (ducts, poles and underground

chambers). This document forms part of Openreach’s PIMR obligations commonly referred to as an

internal Reference Offer (IRO).

Openreach

Openreach Ltd is a wholly-owned subsidiary of BT looking after the networks and physical infrastructure

that connect tens of millions of homes and businesses to phone, broadband, and TV. We have our own

Board, separate brand and approximately 31,000 strong independent workforce, including the largest team

of fibre broadband engineers in the country.

Openreach is a highly regulated and functionally separate business designed to provide products and

services in a non-discriminatory way, primarily through obligations to sell those products on an Equivalence

of Inputs (EoI) basis. The major EoI products include those supporting Ethernet, local loop unbundling, and

fibre broadband amongst others.

Openreach relies on its physical infrastructure (its ducts and poles) to deliver these services and meet its

regulatory obligations, as well as enabling it to compete commercially with operators that have their own

networks, platforms and physical infrastructure (e.g. cable, wireless and TV). Consequently, Openreach

does not have the same discretion as a CP investing in a new network and choosing only to access specific

parts of Openreach’s physical infrastructure.

The PIMR (as did the WLA market review) concluded that Openreach should not be required to purchase

its own Physical Infrastructure Access (PIA) product on an EoI basis,1 as this could increase costs and

require new systems and processes to be implemented within Openreach, as well as potentially impacting

Openreach’s ability to invest in new fibre networks.

Instead, Ofcom imposed a ‘No Undue Discrimination’ obligation for PIA.2 This document supports the

regulation by increasing transparency of Openreach’s internal operations and enabling comparison with

the terms and conditions of its PIA product.

This document will be updated regularly to include changes to the PIA product, and where relevant,

additional details of Openreach’s internal processes as they are further developed and documented.

1 See WLA Final Statement Volume 3 paragraph 3.39, and PIMR Final Statement paragraph 4.77. 2 See WLA Final Statement Annex 33 Condition 4, and PIMR Final Statement Annex 26 Condition 4.

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Table of Contents

1. Introduction .............................................................................................................................................. 4 2. Overview of the PIA product and Openreach’s Fibre First programme ................................................... 6

2.1 Physical Infrastructure Access (PIA) ........................................................................................................ 6 2.2 Openreach’s Fibre First Programme ....................................................................................................... 7

3. Key Differences - PIA product and Openreach Internal Usage for FTTP ................................................... 9 3.1 Forecasting and Plan & Build .................................................................................................................. 9 3.2 PIA systems ........................................................................................................................................... 11 3.3 The Order/Notice of Intent (NoI) Process ............................................................................................. 13 3.4 The Build Complete Process ................................................................................................................. 15 3.5 The Network Adjustments Process ....................................................................................................... 16

4. Comparison of PIA legal instrument conditions to Openreach’s usage .................................................. 22 5. Regulatory Financial Reporting ............................................................................................................... 29 ANNEX A - Network Adjustment Categories ................................................................................................... 30 ANNEX B – Network Adjustments and the ‘Path to Collaboration’ model. .................................................... 31 ANNEX C – Key Performance Indicators (KPIs). ............................................................................................... 32 ANNEX D - PIMR Legal Conditions. .................................................................................................................. 33 ANNEX E - Further Information Sources. ........................................................................................................ 36 ANNEX F - Glossary of Acronyms. ................................................................................................................... 37

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1. Introduction

Background to the PIA internal Reference Offer (IRO)

1. The Physical Infrastructure Access (PIA) product, also known as Duct and Pole Access (DPA), is made

available to Communications Providers (CPs) by Openreach. PIA allows CPs to place orders to gain direct

access to Openreach’s physical infrastructure (ducts, poles, and underground chambers) so that they

can deploy their own fibre networks to supply broadband and/or business connectivity services3 to their

end-customers.

2. The PIA product also enables PIA customers to order Network Adjustments from Openreach. Network

Adjustments are a range of network and civil engineering activities which are necessary, feasible and

efficient4 and are required to repair or relieve congestion in existing Openreach physical infrastructure.5

3. Openreach does not purchase the PIA product to use its physical infrastructure. Therefore, this internal

Reference Offer (IRO) document is intended to increase transparency of Openreach’s internal

processes, and where relevant, identify differences with the PIA product. This document is based on

two information sources.

Firstly, the most recent external reference offer issued by Openreach effective from 1 August 2019,

6 which governs the Physical Infrastructure Access product provided to third parties; and

Secondly, Openreach’s internal use of its physical infrastructure for the purposes of deploying Fibre

to the Premises (FTTP) and/or Ethernet networks, and in so far as possible, comparing these to the

externally sold PIA product.

4. This document represents a current comparison of PIA with those systems and processes that we apply

where we use existing physical infrastructure. In this context, we look to Openreach’s Fibre First towns

and cities FTTP programmes (FFC) as the primary benchmark.7 This comparison has been chosen as the

key policy driver behind the WLA PIA remedy is to support, where viable, further third party FTTP

investment in the UK.8 However where appropriate we also compare to Ethernet services.9

5. To date, we have been trialling many different techniques and operational processes10 to deploy FTTP

and are now refining these into a standardised approach to apply on a forward looking basis. It is this

broad approach which is described in this document. Therefore this document will be subject to further

development and refinement on an ongoing basis.

6. We have reviewed the external reference offer conditions set out in the PIMR legal instrument, and

cover these in Section 4 of this document. But have also focussed in more detail on specific areas where

we understand stakeholders require more information regarding Openreach’s internal use of physical

infrastructure in the context of FFC, and have covered these in Section 3 of this document.

7. In Section 3 we set out the main differences between Openreach’s internal use and the PIA product and

an explanation of why such differences exist. The areas covered include the Plan and Build process, PIA

Digital Maps system, Order/Notice of Intent (NoI) process, Build Complete process and the Network

Adjustment validation process.

3 Previously under WLA regulation PIA customers could only use the PIA product if they were planning to supply ‘mixed usage’ services i.e. primarily broadband services but business connectivity services could also be supplied as a secondary use case. These restrictions have now been removed by the PIMR final statement. 4 Please see paragraphs 2.31 to 2.93 ‘WLA Market Review: Statement – Volume 3 – PIA remedy’. Ofcom also set a range of other criteria which a network adjustment must fulfil. Also see paragraphs 5.87 to 5.123 of the PIMR final statement. 5 Please see Section 2 of this document for an overview of the PIA product, including Network Adjustments. 6 Please see the PIA contractual documentation at: https://www.openreach.co.uk/orpg/home/products/ductandpoleaccess/ductandpoleaccess.do 7 Please see: https://www.openreach.co.uk/orpg/home/index.do for further details. 8 Rather than other Openreach uses such as for the LLU MPF product for example. 9 We will continue to work with stakeholders to refine the process and KPI comparisons going forward to take account of the new unrestricted nature of the PIA products. 10 Please see Section 2.2 for some further background on our Fibre First towns and cities programmes.

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8. For ease of reference, the legal conditions covering the IRO are attached at Annex D of this document.

These are set out in Annex 26 of the PIMR Final Statement published on 28 June 2019.11

9. The structure of the IRO is as follows:

Section 1 - provides background information on Openreach, PIA and on how the IRO has been

prepared.

Section 2 - contains a high-level description of the PIA product and the Openreach Fibre First

programme.

Section 3 – covers the main areas that stakeholders have identified as needing further transparency

such as PIA ordering processes and systems, and network adjustments.

Section 4 – lists the legal conditions in the PIMR legal instrument for the PIA Network Access

reference offer and comments on the comparison with Openreach’s internal usage of infrastructure.

Section 5 – gives an overview of current regulatory accounting consultations and how they will

develop to give further transparency to both internal and external PIA transactions.

Annex A – summarises our approach to validating different categories of Network Adjustments.

Annex B – outlines how our ‘Path to Collaboration’ approach will operate for Network Adjustments.

Annex C – sets out our initial views on KPIs and operational metrics that we will publish.

Annex D – includes an extract of the legal conditions applying to the PIA reference offer.

Annex E - provides links to PIA product and contractual information as well as other supporting

information from the Openreach website including relevant Passives Industry Working Group (PIWG),

and Copper and Fibre Products Commercial Group (CFPCG) information.

Annex F – includes a glossary of the abbreviations and acronyms commonly used in relation to

Openreach products and services.

11 PIMR Final Statement Annex 26 – Conditions 7.2, 7.3 and 7.4.

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2. Overview of the PIA product and Openreach’s Fibre First programme

10. In this section we highlight the major similarities between the PIA product and Openreach’s internal

usage of physical infrastructure for FFC. Section 3 focusses on the main differences.

2.1 Physical Infrastructure Access (PIA)

11. PIA is a product which enables CPs to utilise Openreach’s physical infrastructure in ways which support

their investment in new fibre networks. CPs are able to rent access to ducts, poles, underground

chambers, plus request Network Adjustments, and purchase a range of other ancillary services to help

link into their own physical infrastructure.12 Openreach uses the same physical infrastructure13 to

deploy its own FTTP networks.14 Openreach also uses infrastructure belonging to third parties such as

energy companies but this infrastructure does not form part of Openreach’s PIA product.

12. Please see Figure 1 below, which illustrates how PIA customers can access the same Openreach

infrastructure elements that Openreach uses for FFC. Working from the left-hand side of the diagram

the text boxes explain the common elements used by both Openreach and a PIA CP when building an

FTTP network from an Openreach exchange/Point of Handover (PoH), or CP Point of Presence (PoP) to

an end-user premises.

13. PIA customers do not need to collocate at an Openreach PoH or in the Openreach exchange area serving

the end-user, and since the introduction of the PIMR they are no longer restricted to using PIA for their

access network.15

14. Openreach does not purchase the PIA product as an input into its services,16 however the Openreach

physical infrastructure elements used are the same (i.e. the occupation of spine and lead-in ducts, poles,

footway boxes and manholes by Openreach network). Openreach also carries out many different civil

12 Please see the full set of PIA products at: https://www.openreach.co.uk/orpg/home/products/ductandpoleaccess/ductandpoleaccess.do 13 Where it exists. Openreach also utilises methods such as Direct in Ground (DIG) as do other CPs. 14 And all other services such as Ethernet, FTTC, LLU, WLR etc. 15 Ofcom’s ‘Physical Infrastructure Market Review’ introduced unrestricted PIA and the product can now be used for any purpose in the network including access, backhaul and core. 16 Or for any other services such as Ethernet, FTTC, LLU, WLR etc.

Figure: 1

End-user

4. Duct, poles & chambers occupied by d-side fibre (shown by blue dashed line) – can be used for an FTTP based deployment.

5. Final FTTP drop to end-user could be via a pole or lead-in duct. The Connectorised Block Terminals (CBTs) or alternative CP equipment could be attached to poles or placed in UG chambers.

2. Duct, poles & chambers occupied by e-side fibre (shown by blue dashed line) can be used by both Openreach and PIA customers as part of an FTTP deployment.

1. Cablelink is required if CP wants to link its FTTP network installed in Openreach physical infrastructure to space rented in an Openreach POH/Exchange.

Exchange or CP PoP

Fibre cable Fibre cable

Pole

3. A GPON Splitter or other fibre equipment can be placed in an underground chamber for FTTP by CPs or Openreach.

6. Spine Duct

7. Lead in duct

8. Final drop

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engineering activities when it builds networks, and therefore if applicable will also use a range of

network adjustment activities similar to PIA customers for adjustments to its physical infrastructure.

15. The Openreach physical infrastructure represents only a part of the overall fibre and infrastructure build

required for an FTTP network deployment. Openreach and CPs also need to carry out a much wider

range of network build activities which are not part of the PIA remedy (e.g. installing fibre cabling, new

infrastructure asset construction, site surveys, obtaining relevant wayleaves, training and accreditation

of their engineers and contractors etc.).

16. The PIA product range maps onto Figure 1 as follows:

Spine duct - this is the main duct infrastructure running from the serving exchange to a distribution

point close to the end-user premises (see 6 above in Figure 1). CPs are granted a licence to install

multiple cables up to 25mm in diameter for the spine of their fibre network within Openreach’s duct

infrastructure.

Lead-in duct - this is the duct between the last distribution point and the end user premise (see 7

above in Figure 1).17

Pole access - Openreach grants a CP a licence to attach and maintain a cable, blown fibre attachment

or pole top equipment to one of Openreach’s existing poles to carry out a final drop (i.e. distribution)

to an end-user premises (see 7 above in Figure 1); and/or to provide the ‘carrier’ element of their

network deployment (i.e. serving a similar function to duct access to build out from their PoP).

Underground chambers - CPs can rent space in Openreach’s underground chambers to place their

equipment (see 3 above in Figure 1).

Network Adjustments - the PIA product also provides the facility for CPs to order Network

Adjustments from Openreach. These are a range of network and civil engineering activities which

are necessary to repair or relieve congestion in existing Openreach physical infrastructure. For a

Network Adjustment to qualify as a legitimate request it has to be a necessary, feasible and efficient

adjustment. 18 CPs can either request Openreach to carry out the adjustment or carry it out

themselves (a self-provide order) in line with the terms and conditions of the PIA contract. Please

see Section 3.5 of this document for more details.

Ancillary Services - there are a large range of ancillary services that a CP can request from Openreach,

all of which are charged separately at cost oriented tariffs and listed on the Openreach price list.19

Access to the Exchange - PIA customers are able to use Openreach exchange space (see 1 above in

Figure 1) or their own PoP to house their headend equipment. If they choose to purchase Openreach

exchange space they are also able to buy a Cablelink product (which is not a PIA portfolio product)

to connect their external FTTP network into their space within the Openreach PoH/Exchange.

Alternatively, they can choose to link directly into a non-Openreach duct network or non-Openreach

PoP without using Openreach Cablelink products. Openreach FTTP deployments use Openreach

exchange space to house headend equipment but do not purchase a Cablelink product for exchange

access.

2.2 Openreach’s Fibre First Programme

17. Openreach already provides close to one and a half million premises in the UK with the capability to

buy FTTP, and the Fibre First programme aims to support a potentially a much larger upgrade of the

UK’s fibre infrastructure and to extend well beyond the existing coverage.20

18. Our current plan is to make 4 million premises capable of ordering GEA-FTTP by March 2021. This target

will set Openreach on a potential trajectory to achieve its ambition of building a fifteen million FTTP

17 There is also an element of the product which is referred to as Lead-in link duct which is currently under review by the product team. 18 Please see paragraphs 5.87 to 5.123 of the PIMR final statement. Ofcom also set a range of other criteria which a network adjustment must fulfil. 19 http://www.openreach.co.uk/orpg/home/products/ductandpolesharing/ductandpolesharing/ductandpolesharing.do 20 Please see: https://www.homeandbusiness.openreach.co.uk/fibre-first

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footprint by the mid-2020s and if the conditions are right, to go significantly beyond, bringing the

benefits of FTTP to many more homes and businesses across the UK.

19. However, ensuring the majority of properties in the UK can have a full fibre connection is a massive task

and will take significant time, engineering, manpower and investment to deliver. Therefore, Openreach

needs to gain experience in building FTTP networks at scale and at a competitive cost. Our consultation

with industry21 helped us identify a set of enablers which would help to support this ambition.22

20. Fundamentally, we need to reduce the costs of delivering fibre at scale and ensure that there is demand

for and take up of the new FTTP platform. Therefore, we are trialling lots of different processes and

operating models around the country, with the aim to choosing and adopting best practice for all our

projects. The multiple FFC programmes have been particularly effective in enabling us to do this.

21. Consequently, we have already made significant progress in reducing the cost of delivering FTTP. We

are also piloting new ways of working, for example, with local government to simplify regulations and

traffic management.

22. Importantly, Openreach is also committed to providing CPs with a ‘fit for purpose’ high quality PIA

product to support their own investments in full fibre networks and/or business connectivity services,

both for large scale and more niche operations. As part of the FFC programme, Openreach uses the

same Openreach ducts, poles, and underground chambers for its fibre programmes as PIA customers

do.23 We have also sought to align our processes and systems, as far as possible, to ensure there is no

undue discrimination between how we use our physical infrastructure, and how PIA customers can use

it, including how we deal with the new Network Adjustment obligations. However, legitimate and

necessary differences do exist. We set out the major differences in Section 3 of this document and

explain why they are necessary.

23. We also aim to ensure transparency by reporting on a range of internal and external KPIs and

operational metrics to demonstrate that there is no undue discrimination across a number of key civils

related activities.24 The first tranche of reports was issued on 1 April 2019 showing the Openreach

metrics for Mean Time to Provide (MTTP), and a second tranche issued in July 2019 comprised two

major reports focussing on (i) PIA Service Performance and (ii) PIA Openreach Comparisons related to

the no undue discrimination obligations.25 The reports were issued to PIA customers, Ofcom and the

OTA.

24. These reports were built on significant work carried out to date with stakeholders and PIA customers.

However we are fully committed to continuing to work with all parties to develop and improve our KPI

information as part of our ongoing product development,26 both to increase the information available

to PIA customers on processing and completion times for a wide range of network adjustments, and to

provide further information to demonstrate that we are not unduly discriminating with respect to

Openreach’s internal activities. Please see Annex C of this document for further details on existing KPI

information.

21 Please see: https://www.openreach.co.uk/orpg/home/updates/briefings/generalbriefings/generalbriefingsarticles/gen04717.do 22 In addition to improving our own operational processes and commercial case, we also need a supportive public policy and regulatory environment that encourages infrastructure investment. 23 Openreach may also decide to use the physical infrastructure of other providers to support its programmes through application of the ATI Regulations. 24 The metrics are published on the PIA Closed User Group area of the Openreach Customer Portal under ‘My Dashboard’ at: https://www.openreach.co.uk/orpg/home/home.do 25 These covered Mean Time to Provide (MTTP), Time to Verify and Performance vs CCD%, 26 Which is referred to as the ‘Day 2’ development phase. Day 2 refers to a series of future product, systems and process developments we are working with the OTA and CPs to implement during 2019/20.

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3. Key Differences - PIA product and Openreach Internal Usage for FTTP

25. Stakeholders have raised a number of key items on which they require further transparency, which we

therefore cover in this section.27 They are addressed in the order of a PIA customer deployment process

and include:

Site selection, Forecasting and Plan & Build processes.

The systems used by PIA customers (the PIA Digital Maps system) and Openreach’s PIPeR system.

The Notice of Intent (NoI) ordering process.

The Build Complete process.

The Network Adjustment process.

26. In broad terms, these differences arise because a PIA customer is a third party accessing Openreach

assets (i.e. Openreach being a separate legal entity), and the PIA customer is the only party which knows

the inventory of the Openreach infrastructure that they are using, and on which date they start

providing ‘live’ end-customer services. These important elements are captured in the formal contract

(i.e. the terms of the Reference Offer) and are not applicable to transactions within Openreach.

27. Further, in the case of Network Adjustments, Openreach has a corporate governance responsibility to

apply sufficient controls to authenticate and control costs and liabilities generated by third parties

which directly impact Openreach’s cash flow and capital budgets.

3.1 Forecasting and Plan & Build

Openreach Process

28. The Openreach FTTP deployment process is subject to a highly structured and phased approach. As part

of the overall coverage objective individual cities, towns or other areas are identified in phases looking

approximately 12-18 months ahead and included in the rollout plan based on their suitability for an

FTTP product with good economics for Openreach, CPs and end-users. Major factors taken into

consideration during the selection process (amongst others) include:

Anticipated demand for the product - taking particular account of CP and regional development

stakeholder demand.

Cost of deployment and potential return on investment.

Existing network performance.

29. No forecast information provided by PIA customers to Openreach is used in any way other than to help

ensure we meet our contractual obligations to the PIA customer and to provide a quality PIA service.

Such information is strictly controlled and restricted to individuals on a need to know basis and who

only need it for operational purposes to support the PIA product.28

30. Underpinning the analysis of the major commercial factors are a number of more detailed activities

which feed into the overall assessment of the viability of deployment in the selected areas. For

example:

1. Engineering assessments may rule out individual areas which are likely to be uneconomic for FTTP

deployment (e.g. due to a low density of premises or where existing broadband take-up is known to

be very low).

2. Openreach Regional and Public Policy teams continuously engage with local development agencies

and stakeholders to assess their commitment to fibre roll-out which can change over time.

27 This section does not address every detailed requirement that Ofcom has set for the PIA reference offer – the full list (twenty nine items) are covered in Section 4 of this document. 28 Openreach recently held a briefing session for CPs on 22 July 2019 (organised by the OTA) to explain the extensive controls we have in place to ensure the confidentiality of commercially sensitive CP information, including the recent introduction of the internal directory ‘PIA Marker’ system. Any requests for further information on our internal controls can be made through the Passives Industry Working Group (PIWG) where a presentation by the Business Integrity team (part of the Openreach Legal team) can be arranged.

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3. Other factors can also come into play, such as conflicting demands on the available Openreach

resource and that of its contractors which might restrict the capability to install the infrastructure in

the target timescales or in a particular geography. 29

31. After a deployment area has been chosen for an FTTP network deployment, a coordinated and

committed delivery plan is agreed internally and with engineering contractors, concerning the coverage

and other infrastructure related work on duct, poles and chambers. Detailed internal forecasts of

resourcing and costs are then generated during January and February covering the whole upcoming

financial year commencing in April, and it is this process which enables the correct scaling of engineering

resource to be committed by Openreach and its contractors to the specified area to achieve the plan.

Additionally, all major operating and capital expenditures by fibre programme will be subject to a

detailed five year overview as part of our Medium Term Plan (MTP). We set out further operational

details of the Fibre First planning process in Section 3.5 of this document.

32. After the FTTP build is completed, engineers are also assigned to the area to carry out the skilled tasks

required to support the product ordering and fulfilment process. In particular the FTTP end-user

installation process is very important in achieving a robust and premium quality product.

PIA Customer Process

33. PIA customers have control over their site selection and build process; and to the extent that they

require access to Openreach physical infrastructure to build their network, the PIA Digital Maps system

provides the inventory information they need to feed into their planning tools, as well as estimates of

duct availability by individual duct section.

34. At the point that the CP decides that they wish to use Openreach infrastructure, then Openreach needs

to gear up to provide resources in the right locations, just as we do for our own deployments, as well

as tailoring our scalability and readiness plans for future demand. This is why we require good quality

forecasts from CPs. The hard reality is that Openreach and its external civil contractors cannot resource

appropriately for regional or national projects unless PIA customers provide reasonable and reliable

forecasts with sufficient lead-times, comparable to what we do for ourselves.

35. As set out above, we do this ourselves when planning for national or regionally focussed projects, but

we do not use the same forecasting process as that set out in the PIA contract. Openreach requires

much greater granularity and a longer view of all its operational activities, as it needs to forecast all

major products and operational field led activities by region for the whole of the UK. Therefore all major

operating expenditure and capital programmes (LLU, WLR, Ethernet, Fibre First, and BDUK etc.) will be

subject to a detailed five year overview as part of its Medium Term Plan (MTP).

36. This is why we need PIA customers to engage with Openreach ahead of their demand impacting

Openreach, in line with the agreed PIA forecasting requirements and process,30 to ensure alignment of

Openreach and external civils resources across all activities we are responsible for delivering.

37. This is particularly important to enable us to provide a quality service and given that a failure to deliver

to an SLA on our (or our external contractor’s) part means that Openreach may be liable to pay an SLG

on PIA or potentially another impacted product. PIA is not a service where Openreach can forecast

demand based on run rate, which is more viable for active services. The PIA customer’s capital

investment programme is under the control of the CP, and Openreach need the PIA forecasts to be

matched to CPs investment plans in order to be able to provide a good quality service and help tailor

our service capabilities.

29 Openreach works closely with its public funding partners such as BDUK, and civil engineering suppliers and depending on their priorities this can lead to tactical changes to coverage plans being agreed which will be picked up in revised forecasts. 30 Please see PIA Contract Schedule 2.

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38. Establishing best practice is also very important at this stage of the PIA lifecycle. If significant un-

forecasted demand materialises then it will put a significant strain on Openreach and external suppliers

and that will not generate good outcomes for either party.31 We need to deliver on our obligations, but

it is not unreasonable that a PIA customer has a proportionate incentive not to over or under forecast

to help Openreach resource to an efficient level, especially given the ambition for the PIA product over

the next few years to be the primary regulatory remedy for large regions of the UK.

39. We consider that the terms and conditions relating to forecasting for PIA32 are reasonable and not

disproportionate compared to our own processes, which are far more extensive and demanding, and

cover a much longer time period. We also consider the forecasting requirements to be proportionate

in relation to the obligations and responsibilities which fall on Openreach to make our infrastructure

available and to carry out network adjustments subject to SLA/SLGs.

40. As noted above, we recognise that PIA customers may have concerns about Openreach ensuring strict

confidentiality over the forecast information that they supply to Openreach. Therefore, we would be

pleased to provide further information to any stakeholder on the detailed controls we have in place to

ensure that such information is not shared inappropriately in Openreach, and therefore cannot be used

to influence Openreach’s own fibre deployment plans.

3.2 PIA systems

Overview of inventory and ordering systems

41. Openreach does not use the same inventory and ordering systems as PIA customers, as Openreach does

not purchase its own PIA product. Openreach uses its existing inventory system, called PIPeR, which

contains both physical infrastructure and network level information (including information on cables,

joint user poles, planned infrastructure etc.). PIPeR was not designed as a multi-CP system and is not

able to support the planning, ordering, and billing requirements of multiple third party PIA customers.

42. This level of system functionality needed by PIA customers is incorporated into our PIA systems so that

CPs can (i) access Openreach’s physical infrastructure records to assist their network planning, (ii) order

the PIA product, and (iii) record which elements of the Openreach infrastructure they are occupying.

More details of the ordering functions are given below in Sections 3.3 and 3.4.

43. However, a very important and key correlation between the PIA and Openreach systems and processes

is that the infrastructure records which feed the PIA system are the same as those used by Openreach,

and are sourced from the same system (i.e. PIPeR). A continuous update process ensures that PIPeR

updates are passed to the PIA system in approximately 24 hours.33 Please see the illustrative diagram

below:

Physical infrastructure records from PIPeR feed both the Openreach planning process and PIA systems.

31 Also significant over forecasting will result in excess resources being deployed in the wrong locations, which could be equally damaging. 32 See PIA Contract Schedule 2. 33 Physical infrastructure which is still in the planning or build stage is not passed to the PIA Digital Maps system until it is formally handed over to Openreach and forms part of its physical infrastructure inventory.

PIPeR system Openreach’s physical infrastructure (duct, pole &

underground chamber) records are held on the PIPeR system.

Openreach FTTP Planners FTTP planners access inventory records via the PIPeR interface.

PIA Digital Maps system PIA customers access PIPeR inventory

records via the PIA Digital Maps system.

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44. The infrastructure data fed into the PIA Digital Maps system can then be used by the PIA customer to

plan its deployment, automatically populate its Openreach inventory records and create an agreed

billing record.

PIA Digital Maps system

45. The primary reason why a different system to Openreach’s internal legacy system PIPeR was developed

for PIA customers (apart from PIPeR’s unsuitability as a multi-CP system) was that implementation of a

tailored PIA system could be introduced much more quickly and efficiently in 2017, significantly ahead

of the WLA obligations being imposed in 2018. Thereby providing significant improvements to the

product and enabling efficient and significantly increased consumption of PIA by CP customers over a

year before the WLA final statement was published.

46. This enabled major benefits for PIA customers, making it possible to plan and record network

deployments through on-line access to the PIA Digital Maps tool and a web services interface, in a

comparable manner to Openreach and by accessing the same underlying Openreach physical

infrastructure record information as Openreach planners use, but through a much more flexible and

adaptable system. In summary the new PIA system:

enabled PIA customers to download and import network data into their own GIS network planning

tools;

provided estimated capacity information for spine duct calculated from Openreach’s inventory

systems which was presented in a suitable format to enable PIA customers to estimate duct

availability and;

included relevant duct, pole, joint box and manhole information at a sufficient level of granularity

for planning, ordering and billing, with the required physical attribute and network code information

to speed up planning, ordering and billing.

47. As set out above, the separation of the PIA system development from the legacy PIPeR system has

already enabled a significant number of other developments to be progressed with PIA customers and

the OTA through the Passives Industry Working Group (PIWG). These systems developments could only

have been this reactive to PIA customers’ needs because they did not impact Openreach’s legacy PIPeR

system.

48. Over time the functionality of the different systems has also been more closely aligned on some key

items. In particular, the browsing capability of the PIA system was increased from a 1km2 window to a

5km2 area enabling CPs to view, and whilst on-line, move around the map display to view large areas of

infrastructure to assist CP planning. Additionally, CPs can now download Openreach infrastructure

information via multiple 1km2 sections which can be automated to build up whole city databases (or

larger) in CP’s own geospatial systems. Whilst currently Openreach planners do have the capability to

pan across and view the whole of the UK without limitation via the PIPeR interface, they typically do

not do so, as their work tends to focus on specific deployment areas. Therefore we do not currently

have such functionality in scope for PIA systems development. However, should we identify that it is

causing CPs issues, then it is something that we would consider as part of a future development.

49. At this time, Openreach planning information is not passed from PIPeR to the PIA system. This is

primarily because the PIA obligation does not apply to planned physical infrastructure that has not yet

Issue 4 – 01/08/2019 13 of 38

been built by the site developer or been handed over to Openreach. In these circumstances it would

not yet form part of Openreach’s infrastructure (even if it has been constructed).34

50. In relation to new sites, we recognised that delays in updating PIPeR inventory data on completion (or

partial completion) of infrastructure build was causing issues for CP planning. Hence we have

introduced a new process for PIPeR which enables early phases of fibre new site infrastructure,35 when

built and handed over to Openreach, to be flagged as built on our inventory systems, triggering that

phase of information to be automatically updated on the PIA Digital Maps system (i.e. prior to the whole

site being built, signed-off and handed over to Openreach).

The Openreach PIPeR system

51. Openreach’s planners use the PIPeR interface to access physical inventory information in the same way

as PIA customers use the PIA Digital Maps system, and in broad terms the operational activities carried

out by Openreach planners are the same as those carried out by PIA customers (please see further

details in Section 3.3 below).

52. At this time, PIPeR is integral to Openreach’s operations and processes across all networks and

products.36 However, in-line with PIMR regulation and guidance, we are committed to reviewing all

future platform developments as they occur, including potential replacements for PIPeR, and ensuring

we continue to meet our regulatory obligations on a forward looking basis.

53. These future developments will require careful consideration of PIA customers’ and Openreach’s needs,

as even for a relatively recent and new development such as the PIA Digital Maps system the

requirements and priorities of PIA customers at the time were different to those of Openreach.37

3.3 The Order/Notice of Intent (NoI) Process

Overview of the NoI Process

54. Please note that the ‘Order/NoI process’ was previously part of a process that was referred to as the

‘Reservation process’, and this has led to some confusion with stakeholders, as it did not confer any

formal space reservation rights. Rather it denoted potential future occupancy of infrastructure by the

PIA customer which could then be taken into account by other PIA customers when assessing physical

infrastructure availability and also by Openreach’s physical infrastructure planners. Access to

infrastructure capacity operates on a ‘first come, first served’ basis for everyone including Openreach

and there is no formal reservation.

55. Therefore the order process is now referred to as the Order/NoI process as it describes the PIA

customer’s order for, and intention to occupy space in, or on, a particular section of Openreach’s

physical infrastructure, although the space is not formally reserved. Following a NoI/Order, the CP is

then able to confirm and amend their NoI/Order records once they have installed their equipment and

completed their build (i.e. the ‘build complete’ process). Openreach does not use the NoI process and

this is explained further below.

PIA Customer Process

34 The WLA final statement concluded that Openreach does not have an obligation to publish its planning information – ‘WLA Statement Volume 3 – paragraph 6.353’. 35 Further work is continuing to address any new site record backlog and should complete by end of Q2 2019/20. Copper related processes are also being reviewed and this is expected to complete by end of Q2 2019/20. 36 The potential complexity and cost of unravelling these processes within Openreach was recognised in the WLA Final Statement. Please see Volume 3 - paragraph 3.39, and PIMR Final Statement paragraph 4.77. 37 PIA customers were looking for a multi-CP system enabling electronic access to, and download of specific physical layer information, plus automation of the ordering process to link into their own planning, inventory and ordering systems. However, Openreach as a national operator providing all products and services needed to access integrated nationwide inventory information for all technologies and at all layers of the network architecture (both physical and active). Also there was no requirement for Openreach to develop or operate an internal physical infrastructure ordering or billing capability.

Issue 4 – 01/08/2019 14 of 38

56. When a CP chooses to use Openreach’s physical infrastructure as part of its network deployment

process (i.e. purchase the PIA product):

• It will combine information about Openreach’s physical infrastructure with information about its

own physical infrastructure, and then add its cabling and equipment design to produce a

deployment plan.

• Only the PIA customer knows its plan, and therefore what equipment it will be deploying and at

what locations in the Openreach physical infrastructure and/or its own infrastructure. Openreach

is unable to gather this information and therefore requires it to be provided by the PIA customer

to Openreach. The information is required so that:

o Openreach can produce a bill for PIA usage.

o There is an accurate record of the locations where Openreach can expect ‘Whereabouts’

notices when the PIA customer is operating in the Openreach network for security, quality

and health and safety reasons.

o Openreach knows where the CP’s equipment will be located in its infrastructure. The records

need to be easily accessible by Openreach so that it can contact the equipment owners at

times of emergency, or for re-planning and other network rearrangement projects.

• The core purpose of the Order/Notice of Intent (NoI) process is to fulfil the needs set out above

(i.e. for the PIA customer to accurately record the inventory of Openreach physical infrastructure

it is using as part of its network deployment plan).

• PIA customers are required to provide this information when they place their Order/NoI, but they

are able to deviate from the original route for a variety of reasons (e.g. poor records, route

congestion, to avoid blockages etc.) with no penalty as these would be legitimate operational

reasons. They are required to inform Openreach of the deviations as part of the process.

• In summary, the PIA Digital Maps System is the CP interface that Openreach specially developed

to allow multiple PIA customers to plan and place NoIs/Orders and record their usage of

Openreach physical infrastructure.

Openreach Process

57. Openreach planners do not use the Order/NoI process as they do not access or use the PIA Digital Maps

System. This is because although Openreach planners do need to carry out the same functions as a PIA

customer, they already use the existing Openreach inventory system (PIPeR) to source and record the

relevant Openreach information. Broadly the relevant design steps are:

Assess available Openreach physical infrastructure - this is taken from PIPeR, the same as the

source data for the PIA Digital Maps System.

Construct a network design (equipment and cabling etc.) – both Openreach and PIA customers will

have their own processes and practices for doing this.

Record the information in an inventory system – Openreach inputs this information into the PIPeR

system where its network design (i.e. equipment & cabling etc.) and usage of its physical

infrastructure is held. In comparison, PIA customers will hold their own detailed network design

information locally in their own systems (i.e. not on the PIA Digital Maps system), but they also

need to record their usage of Openreach’s physical infrastructure on the PIA Digital Maps Tool for

the reasons explained above.

58. Additionally, Openreach imposes obligations on its own contractors in terms of ‘whereabouts’

information, plus tracks the location of its own personnel which is recorded in Openreach’s operational

systems. This information is required for health and safety, security, quality and audit purposes.

Issue 4 – 01/08/2019 15 of 38

Summary

59. The PIPeR system was not designed as a multi-CP system and cannot be used by multiple CPs to record

their usage. Therefore the PIA Digital Maps System was specifically developed to provide the interface

for multiple CPs to be able to plan their potential use of Openreach infrastructure, and after completing

their network build, to feed their actual PIA usage data back into Openreach (via the Build Complete

process) for the reasons set out above.

60. Openreach carries out the same network functions as the PIA customer, using the same physical

infrastructure source data (i.e. from PIPeR), but does not record billing or location information on the

PIA Digital Maps System. This is because it is not required for ordering and billing purposes, and would

be a duplication of the activities already carried out and the information already recorded by Openreach

in its PIPeR system.

3.4 The Build Complete Process

PIA Customer Build Process

61. Following on from the Order/NoI process, the build complete process is a key stage in the overall PIA

ordering framework. As explained in Section 3.3 above, a PIA customer can place an initial Order/NoI

with Openreach for PIA before they install any equipment in Openreach’s physical infrastructure, but

once they have completed the installation of their network, they are required to submit a Build

Completion Pack to Openreach. This is the finalised NoI order, inclusive of any changes the PIA customer

may have needed to make to their original NoI information whilst they were building their network.

62. In the context of the PIA product, the function of the build period and build complete process is to

support the formal contractual relationship established between the PIA customer and Openreach, so

that the CP can legally occupy Openreach’s physical infrastructure and consequently pay the

appropriate regulated charges for its usage. Therefore, as Openreach does not contract with itself,

there is no simple internal analogy for the contractual build complete process.

63. Once a CP has notified Openreach that it has an intention to access Openreach physical infrastructure

via the Order/NoI process and they provide their whereabouts, they are free to start placing equipment

in the infrastructure and occupying space. They have no obligation to pay for the occupancy38 at this

stage even though they may have already taken up significant space in the physical infrastructure.

Therefore, there needs to be a reasonable control placed around this process to prevent unpaid and

open-ended occupancy of Openreach’s physical infrastructure by CPs. The build complete process is

the trigger point at which CPs are required to start paying for their occupancy.

64. The overriding principle is that whenever live services are provided by the PIA customer then Openreach

should also be enabled to charge for its infrastructure. This principle is supported by the contractual

build period and the build complete process, as these are the key controls which establish the

contractual relationship for the PIA customer to legally occupy Openreach’s physical infrastructure, pay

the appropriate regulated charges for its infrastructure usage, and consequently sell its services.

65. This is also why Openreach restricts the ability of a PIA customer to indefinitely extend an Order/NoI,

as this would enable CPs to occupy Openreach infrastructure indefinitely without paying for it, and/or

without informing Openreach of which parts of the network they have occupied or not. Therefore, the

contract also maintains Openreach’s right to require CPs to remove their equipment in these

circumstances.

66. Broadly, the CP chooses the size of the NoI, the time and rate at which they build, and the point at

which they offer live services to end-users (i.e. after build complete takes place). The initial build period

38 The original method of charging for ‘reservations’ was intended to overcome this anomaly.

Issue 4 – 01/08/2019 16 of 38

for a PIA NoI is currently set at 12 months.39 Due to a current systems constraint the build period cannot

be extended beyond 12 months at this time, but as part of the Day 240 programme we have now

developed the capability to extend up to a maximum of 18 months where the CP encounters matters

beyond its reasonable control.41 In such circumstances, the customer is required to inform Openreach

of the delay or the build period will expire at the 12 month limit.42

67. Some recent changes have been made to the PIA product with regard to the build complete and billing

process. We now permit PIA customers to connect up end-users prior to submitting a build completion

pack as long as these connections are reported to Openreach as part of the forecasting requirements

on a monthly basis. We are also assessing a further systems development to support partial build

complete recording (i.e. the ability to complete a sub-part of a larger NoI order). This is likely to be

delivered in the next financial year (subject to funding). In the interim PIA customers can continue to

connect up customers prior to submitting their final build report but must report customer connections

on a monthly basis (in the ‘lead-in’ report).

68. The build complete process is also fundamental to the calculation and linking of network adjustment

funding (whether Openreach provided or self-provided), where Openreach can only fully reconcile

financial balances and liabilities on receipt of the build completion notifications from CPs.

69. There is currently a system limitation of 1500 items within an Order/NoI on the PIA Digital Maps System.

This was not viewed as an operational constraint at the time the PIA system was originally implemented.

However we are currently planning a future development43 which will provide the systems capability to

create a ‘project’ and associate a number of NoIs within it, thereby enabling customers to benefit from

a ‘pooled’ network adjustment fund (in-line with PIA contractual terms and conditions). This will

effectively increase the aggregate limit for a group of NoIs enabling an order to address circa 100k

premises passed. In addition, we are continuing to discuss other longer term requirements with

stakeholders.

70. The planned future developments will add greater flexibility to the product, but a build complete

process of some form will still need to be in place for the reasons set out above. The correct incentives

and controls are necessary so that PIA customers submit accurate build complete notifications, as only

then can Openreach have any proper view of what is actually ‘in’ or ‘on’ the Openreach network and

where it is located, and align PIA customers’ ability to sell end-customer services, and Openreach’s right

to bill its regulated access charges.

71. As and when new systems developments and processes are agreed with industry these will be reflected

in a revised version of the PIA IRO.

3.5 The Network Adjustments Process

Overview of Network Adjustments

72. The PIA product provides for PIA customers to order Network Adjustments from Openreach. These are

a range of network and civil engineering activities which are available where necessary to repair or

relieve congestion in existing Openreach physical infrastructure. For a Network Adjustment to qualify

as a legitimate request it has to be a necessary, feasible and efficient adjustment.44

39 This was changed prior to publication of the 1 April 2019 reference offer following stakeholder feedback. It was previously 6 months. 40 Day 2 refers to a series of future product, systems and process developments we are continuing to work with stakeholders to implement during 2019/20. 41 This functionality is due to be delivered in release R4150 in September 2019. 42 Please note that increase to a 12 month build period and changes to extension functionality occurred shortly before the 1 April 2019 final reference offer was in force and hence we are still working through some transitional issues with PIA customers until the R4150 systems release. 43 We are currently targeting deliver in R4150 but this is still subject to final confirmation. 44 Please see paragraphs 2.31 to 2.93 ‘WLA Market Review: Statement – Volume 3 – PIA remedy’. Ofcom also set a range of other criteria which a network adjustment must fulfil. Also see paragraphs 5.87 to 5.123 of the PIMR final statement.

Issue 4 – 01/08/2019 17 of 38

73. This includes typical activities such as repairing a length of damaged duct to make an existing duct route

suitable for new network installation, or replacing a pole which has been classified as unusable45

because it is considered unsafe to add any additional dropwires or equipment to it.46

74. For qualifying underground adjustments Openreach is responsible for funding a proportion of the cost

up to the financial limit,47 and for qualifying overhead adjustments no financial limit is currently applied.

Many Network Adjustments can be carried out by the CP itself, or by Openreach.48

75. This means there are three key aspects to the network adjustment process:

a) If Openreach is paying for the Network Adjustment, then there is a need for Openreach to

validate that it is a legitimate order.49

b) The validation process needs to be efficient and timely, but also provide sufficient information

to enable PIA customers to make informed deployment decisions.

c) In the cases where Openreach undertakes the work, the Network Adjustments should be carried

out efficiently and completed in a reasonable timeframe.

76. Our Network Adjustment processes for the PIA product are designed to meet all these objectives.

Further, we are also committed to producing and sharing KPIs and indicative operational metrics with

PIA customers and wider stakeholders to provide evidence that the validation process is operating

efficiently, and that there is no undue discrimination taking place in the validation and delivery of

Network Adjustments.50

77. It is challenging to map Openreach’s internal activities exactly onto the external Network Adjustment

ordering and validation process,51 as Openreach has a variety of operating models and is also in the

process of standardising its approach to fibre programmes and reorganising how work is shared

between its Chief Engineers (CE), Fibre Network Delivery (FND) and Service Delivery (SD) teams.

However, for its FFC programmes Openreach primarily controls its civils costs in two main ways. Firstly,

by carrying out significant survey activity and pre-validation of any civils work required (including

Network Adjustments) for FFC deployments before commissioning any build work. And following this

phase, maintaining very tight controls on any additional work identified by contractors or direct labour

in the build phase through additional control processes52 to continue to drive out unnecessary civils

costs.

78. Where possible below, we have identified Openreach activities which are similar to the PIA product,

but in summary we view an appropriate PIA validation process as a proportionate and pragmatic way

to ensure that PIA customer network adjustment costs are also controlled in a similar way to

Openreach’s civils costs. We set out the key elements and comparisons of the PIA process and

Openreach’s internal processes below.

The PIA Process

79. The process set out in the current reference offer (1 August 2019) includes a 5 day SLA for completing

the Network Adjustments validation process prior to work being carried out. This process is required to

provide the correct corporate governance and contractual controls around complex and expensive civil

engineering processes. The 5 day period in the reference offer does not reflect the ‘time to verify’ for

45 Openreach has a major pole testing and safety programme which identifies defective poles and assigns a ‘D pole’ classification. In broad terms this means that (i) some are usable but can’t be climbed, (ii) some are usable but need to be replaced over the next two years, and (iii) some are not usable and need immediate replacement. 46 Even with the use of specialised overhead equipment such as hoists or mobile platforms. 47 This is £4750 per kilometre for UG adjustments. 48 PIA customers can also order Ancillary Services from Openreach for which they pay a cost oriented tariff. 49 Sufficient to satisfy UK corporate governance rules such as Sarbanes Oxley. 50 Please see Annexes A, B and C for further information on these points. 51 This also makes it difficult to map internal and external KPIs, but we are working with stakeholders to find the best comparators (see Annex C). 52 Primarily the Departure from Estimate (DFE) process.

Issue 4 – 01/08/2019 18 of 38

each individual order (and further work is continuing with stakeholders to better understand the

variation by order type53) but rather to define the point after which SLGs would become payable.

Therefore, the ‘time to verify’ SLA has to be clear and unambiguous in the contract as it is used to define

a contractual SLA and a potential consequential liability for an SLG payment.

80. Also, the more accurate and specific the forecasts that PIA customers are able to produce, and the

further in advance that CPs can provide them to Openreach, then the greater the capability Openreach

will have to assign specific resource to support the CP and to be ready to verify and/or progress network

adjustments.54

81. Multiple tasks need to be carried out in the verification stage of the network adjustment process, and

in this light the current 5 day period SLA does not seem excessive, and may in fact be challenging, given

the number of activities that need to be completed.55 The table below summarises the tasks that need

to be carried out:

PIA Network Adjustment Approval Process

1) Check the network adjustment order contains all of the information it should have and is accurate.

2) Identify whether the order type qualifies as a valid network adjustment.

3) Investigate the method to resolve, which may involve organising and completing a field visit (e.g. is it a

simple repair or major replacement).

4) Produce a quotation for the PIA customer – i.e. does the cost fall within the financial limit or not, and

therefore what will the CP be liable to pay. If the CP wants to carry out the adjustment, what is Openreach

prepared to pay the CP to complete the job.

5) Set a delivery date, the customer committed date (CCD).

82. Following the provision of the information, the PIA customer chooses whether to proceed with the

order or not. We also aim to ensure that the PIA validation process is as efficient and timely as possible

and therefore have introduced a flexible approach to meet PIA customers’ needs and capabilities.

Broadly our PIA validation processes operate as follows:

• Firstly, we have tailored the network validation process so that certain tasks can be carried out

more quickly than others. For example, this means that many overhead (OH) related adjustments

are possible to authorise without a field visit. However, other adjustments, particularly

underground (UG) tasks are more complex to assess visually (and may also require additional

activities such as road closures for example, to be taken into account). Therefore, more extensive

validation will be required. Also, we will need to work with PIA customers as the product matures

to develop means of managing unavoidable delays to field validation. Please see Annex A where

further details of the adjustment types and approach to validation is set out.

• Secondly, we plan to introduce a ‘Path to Collaboration’ process to enable PIA customers to take

more control of the network adjustment process by working with us collaboratively to evidence

that they are carrying out the required verification checks themselves, whilst also enabling us to

maintain due diligence over network adjustment requests (i.e. ensuring they are actually

53 See Annexes A and B. 54 We are currently renegotiating our partner agreements with civil engineering suppliers and this may have consequential impacts on current processes, timescales and ways of working. 55 We adopt a different process for Ethernet delivery which allows a longer period to set a CCD, but enables greater certainty in the delivery date.

Issue 4 – 01/08/2019 19 of 38

necessary). Please see Annex B of this document where an overview of the ‘Path to Collaboration’

process is set out. Further details will be added to this IRO as the programme is developed with

stakeholders.

The Openreach Process

83. As noted above, it is difficult to map our internal activities exactly onto the external Network

Adjustment ordering and validation process as Openreach actively controls civils costs on its own

related programmes in two ways. Firstly by surveying and pre-validating the civils work required in our

FFC deployments (some of which would be classified as Network Adjustments). And secondly by

maintaining rigorous controls on any additional work identified by contractors or direct labour after the

initial planning stage (i.e. in the build process).56 We also apply civils avoidance techniques to minimise

costs. This is why we need to ensure a similarly robust validation of PIA orders.

84. As noted above, we are still working towards standardising internal processes57 but broadly our Fibre

First plan and build, and control processes operate as follows:

Fibre First – illustrative plan and build, and network adjustment (NA) process

56 Primarily the Departure from Estimate (DFE) process. 57 Additional information will be added to this section as Openreach FFC processes are further developed and documented; and if required, should renegotiation of Openreach’s civil engineering partner agreements impact current work processes.

Target City is selected by Openreach Strategy team.

FTTP planning team draw up a draft plan for the deployment. This is primarily based on the fibre architecture specified in Openreach Chief Engineers (CE) models, existing network records and

address data.

CE/FND team conduct field surveys of physical infrastructure covered by the draft plan including:

visual inspection of Overhead (OH) infrastructure and

physical inspection (including rodding and roping) of Underground (UG) infrastructure.

Using the survey/validation information, the CE/FND teams amend the draft plan to produce a final plan. This includes all amendments identified to the draft plan, representing a list of all civils activity required to build the FTTP network (including those classified as Network Adjustments).

The final plan is placed with contractors for delivery. All network adjustments have been pre-validated. Contractors have approval to work to plan unless there is a Departure from Estimate

(DFE).

Contractors have to seek approval from the CE/FND team (via A55) to any DFEs (i.e. build or network adjustment changes). The default position is that the CE/FND team need to approve all

DFEs, although in exceptional circumstances a contractor may be given verbal permission to proceed at risk.

If DFE is rejected - then contractor does not carry out job. If DFE is accepted – then job is placed in civils queue. Fibre First jobs are treated with the same

priority as a PIA Network Adjustment.

This planning process is highly variable depending on the target area, but is typically measured in months. Hence there is no easily identifiable ‘time to validate’ for a single civils task. Adopting this approach to planning and pre-validating civils (including NAs) reduces the impact of civils validation activity on the critical path for network build.

These plans use the PIPeR physical infrastructure data (i.e. the same as available to PIA customers via PIA Digital Maps).

As part of the internal DFE process newly identified jobs need to be approved to ensure they are necessary, then estimates are produced and placed with a contractor or direct labour for delivery. We are continuing to explore whether comparative KPIs for the validation process could be developed using this data. In the short term we have focussed on the Ethernet ECC process.

Issue 4 – 01/08/2019 20 of 38

85. In broad terms we operate an approval process for all civils required (including network adjustments)

either before placing the job with a contractor or later when a new requirement is identified to help

ensure that costs are only incurred where truly necessary. This has also led us to develop a range of

civils avoidance techniques.58

86. The terms and conditions relating to Network Adjustment validation for the PIA product are intended

to be proportionate and reasonable and not unduly discriminatory, and to introduce similar incentives

for cost control compared to Openreach’s own internal cost control processes. Such checks are

necessary and proportionate in relation to the significant obligations and responsibilities which fall on

Openreach to provide network adjustment pricing information and/or to carry out adjustments given

the direct impact of CP requests for network adjustments on Openreach’s cash flows and capital

budgets.

87. Therefore, in summary:

• We carry out extensive planning and pre-validation processes as part of our Fibre First

programmes to survey and validate prospective civil engineering requirements. These result in a

final plan which contains multiple jobs including some which will fall within Ofcom’s definition of

Network Adjustments59. The work is then placed with contractors based on the estimates raised,

and work then proceeds unless there is a divergence from the plan.

• These initial controls are then reinforced by additional processes to deal with new civil works

identified after the final plan stage and its associated work packages and estimates. This is

referred to as the departure from estimate (DFE) process. All new requirements have to be raised

via the A55 process in a similar way to an external PIA Network Adjustment, and internal approval

and estimation processes also need to be carried out. Further, if the job is approved it will be

placed into the work stack and treated with the same priority as a PIA network adjustment.

Key Performance Indicators (KPIs) and Operational Metrics

88. In addition to the control processes identified for Fibre First and PIA network adjustments, we also

produce KPIs and indicative operational metrics across a range of PIA and Openreach Network

Adjustments to ensure that:

• The performance of the PIA validation process is efficient and timely, and

• To provide comparative information and transparency with regard to PIA product processes and

Openreach’s internal processes, so that stakeholders can also validate Openreach’s obligation not

to unduly discriminate in terms of results and outputs.

89. Please see Annex C where we set out a summary of the current KPIs being produced and published by

Openreach, including both PIA Service Performance and Openreach PIA Comparator information.

Additionally, given the difficulties in mapping complex internal Openreach processes exactly to the

external PIA network adjustment process, we are continuing discussions with stakeholders to build on

the current approach to KPIs to find the most comparable internal and external statistics for the longer

term and share these with stakeholders as they become available.

Other aspects

90. For the avoidance of doubt, we do not impose the following criteria internally on Openreach, as they

have no function within Openreach, but are proper and proportionate to an external contract with a

third party.

58 Which we have already shared with PIA customers at the PIWG, and would expect them to employ in their own network build as required. 59 But which could also include ancillary activities and new build which would not be classified as a network adjustment.

Issue 4 – 01/08/2019 21 of 38

• Network Adjustment Financial Limit (5 year systems time limit) – this was proposed in the external

PIA reference offer for corporate governance reasons and to simplify billing and operations. The 5

year period was proposed to align with the spine licence term, and our view was this would help

minimise the operational difficulties of maintaining linkages between old PIA orders (NoIs) and

subsequent potentially unlimited network adjustment orders over an unlimited period. However,

we are shortly planning to implement a new development which will provide the systems

capability to create a PIA ‘project’ and associate a number of NoIs within it. This will enable

customers to benefit from a ‘pooled’ network adjustment fund (in line with PIA contract terms

and conditions) and effectively enable a longer time limit, as the 5 year period will not commence

until the last linked NoI is closed.

• Network Adjustment (spine duct minimum length requirement) – the minimum PIA order (NoI)

size of 126 metres60 of spine duct to qualify for an Openreach funded network adjustment was

proposed in the external PIA reference offer to ensure a degree of comparability between the

financial limit per kilometre and the cost of a basic network adjustment (e.g. a duct blockage

repair). It was a pragmatic proposal to try and ensure that sufficient Openreach funding would

typically be provided within the financial limit calculation (i.e. £584) so that a basic adjustment

would be paid in full by Openreach. Thus reducing the likelihood of large volumes of small partial

payments needing to be settled by Openreach and CPs. This requirement is due to be removed by

a new systems release in autumn 2019.61

• Unauthorised Use of Openreach Physical Infrastructure - we do not allow a third party to use or

access our physical infrastructure without prior permission. This is important to enable us to

properly protect our network. If there is no valid order, then the use is unlawful and a trespass.

This can include those cases where the order or licence to occupy expires or where it is

terminated or cancelled. In these circumstances appropriate legal consequences will apply.

However, we do recognise that there may be cases where use of physical infrastructure has

inadvertently been incorrectly recorded or omitted in an order or build completion pack. In these

circumstances we do have the concept of minimum unauthorised use which allows us to deal with

such incidents in a reasonable and proportionate way through appropriate dialogue with the

relevant CP.

91. The above terms and conditions are not intended to be disproportionate or unduly discriminatory but

rather to deal pragmatically with issues arising from use of Openreach physical infrastructure by a third

party and are therefore proper aspects to be addressed by a formal contract with an external party.62

60 A CP could place an order for any length of spine duct above or below 126 metres. 61 Release R4150 due in September 2019. 62 As part of our own ‘business as usual’ processes we carry out additional checks which we do not apply to CPs - for example checking that we have the correct permissions, wayleaves and permits.

Issue 4 – 01/08/2019 22 of 38

4. Comparison of PIA legal instrument conditions to Openreach’s usage

1. Standard Elements of the PIA Reference Offer (PIMR Condition 7.2)

Legal Condition Comparison of PIA product to Openreach Internal Usage

a. a description of the network access to be provided, including technical characteristics (which shall include information on network configuration where necessary to make effective use of network access);

Openreach’s services use identical infrastructure components to those offered as part of the PIA product.

A summary product description is given in Section 2 above, and full details of the product can be found at:

https://www.openreach.co.uk/orpg/home/products/ductandpoleaccess/ductandpoleaccess.do

b. the locations at which network access will be provided;

Physical infrastructure network access is possible at all points in the Openreach fixed infrastructure to build a network (subject to survey and obtaining the relevant wayleave/planning consents).

This is the same for Openreach deployments and PIA customer deployments.

c. any relevant technical standards for network access (including any usage restrictions and other security issues);

Openreach applies the same technical standards to all infrastructure whether it is used for Openreach network deployments or a PIA customer’s network deployment.

Openreach also applies specific physical standards to cables (overhead and underground) for both its own and CP’s installations in order to minimise damage, interference and maintain safety.

d. the conditions for access to ancillary, supplementary and advanced services (including operational support systems, information systems or databases for pre-ordering, provisioning, ordering, maintenance and repair requests and billing);

Due to the different requirements of PIA customers compared to Openreach planners, a more flexible external interface and PIA customer system was developed for use by multiple CPs in 2017. As Openreach does not purchase the individual elements of the PIA product internally it does not use the external interfaces developed for CPs. Therefore:

Openreach planners use the PIPeR system and its interfaces, and: PIA customers use the PIA Digital Maps system.

Most infrastructure level internal work flows are governed and managed by the same systems such as Next Generation Workflow Management Tool (NGWFMT) once any initial engineering activity has been triggered by Openreach or a PIA customer.

Issue 4 – 01/08/2019 23 of 38

Openreach’s civil engineering contractors permit Openreach access to an on-line system which enables direct checking of the status of works, estimated dates etc. For PIA, CPs need to request information from Openreach.

Please see Section 3.2 of this document for more details on systems.

e. any ordering and provisioning procedures; Openreach does not purchase the PIA rental products internally and hence does not raise an internal order for duct or pole occupancy. Please see Section 3.3 of this document for more details.

In so far as possible, all requests for civil engineering work (such as network adjustments) will be actioned through the same standard systems and processes for both Openreach’s own use and PIA related work and treated with the same priority. Please see Section 3.5 of this document for more details.

f. relevant charges, terms of payment and billing procedures;

Openreach does not purchase the PIA product internally and hence does not raise an internal charge (other than through the regulatory accounting process), or have terms of payment or produce a bill.

Also processes such as credit vetting which are applicable to an external customer and form part of the contractual terms are not applicable within Openreach as it is a single legal entity.

The new regulatory accounting obligations imposed on Openreach are set out in Ofcom’s Regulatory Financial Reporting final statement published on 12 July 2019, and are also the subject of extensive ongoing work by Ofcom, Openreach and BT.

The resulting Regulatory Financial Statements and the supporting regulatory accounting methodologies will enable stakeholders to monitor the accounting practices of Openreach’s own use of its physical infrastructure as well as in the treatment of the costs of network adjustments. Please see Section 5 of this document for further details.

Further work is continuing with PIA customers to determine the settlement process for self-provide orders.

g. details of maintenance and quality as follows:

(i) specific time scales for the acceptance or refusal of a request for supply and for completion, testing and hand-over or delivery of services and facilities, for

In summary, tasks associated with construction and repair of physical network are carried out by suppliers who are contracted to provide a large array of different services to Openreach. The PIA contract applies the same quality standards to civils work carried out by PIA customers and/or their contractors on Openreach physical infrastructure as we do to our own contractors.

(i) There are no contractual provisions relating to these matters internally within Openreach. Please see Section 3.5 where we discuss the Network Adjustments process in more detail.

Issue 4 – 01/08/2019 24 of 38

provision of support services (such as fault handling and repair);

(ii) service level commitments, namely the quality standards that each party must meet when performing its contractual obligations;

(iii) the amount of compensation payable by one party to another for failure to perform contractual commitments;

(iv) a definition and limitation of liability and indemnity; and

(v) procedures in the event of alterations being proposed to the service offerings, for example, launch of new services, changes to existing services or change to prices;

(ii) There are no contractual service level commitments internally within Openreach. Please see Section 3.5 where we discuss the Network Adjustments process in more detail.

(iii) There are no compensation schemes internally within Openreach.

(iv) There are no legal liability and indemnity issues within a single legal entity such as Openreach. Strict liability and indemnity clauses apply to external parties placing equipment in Openreach physical infrastructure or carrying out operations on Openreach infrastructure. Openreach applies the same or similar liability and indemnity clauses to its own chosen contractors.

(v) The external PIA product will be subject to the notification periods specified in the legal

annex of the PIMR final statement63 (eg Condition 8 – Notification of charges, terms and conditions). CPs can also request changes to the existing product or new products via the Openreach SoR process64. This is governed by Condition 3 of the PIMR legal instrument. Openreach does not notify itself or issue SoRs to itself, but all changes to its services will be governed by the relevant conditions applied by the appropriate market review final statement and corresponding legal instruments.

h. details of measures to ensure compliance with

requirements for network integrity;

This is the same for Openreach and PIA customer deployments.

All physical infrastructure integrity measures apply equally to Openreach and PIA deployments (e.g. cable breaking strengths, gas testing, pole structural assessments etc.).

ANFP rules apply both to Openreach and to PIA customers.

i. details of any relevant intellectual property rights; Not applicable within a single legal entity such as Openreach.

63 https://www.ofcom.org.uk/__data/assets/pdf_file/0026/154592/annex-26-legal-instruments.pdf 64 https://www.openreach.co.uk/orpg/home/loadStatementOfRequirement.do?data=5VuXDcYvB0NkrRQRrBZRxYyWF5PgOs6bUzF%2BfSrZzmJba5FvEz4krukRuCCbqYkv

Issue 4 – 01/08/2019 25 of 38

j. a dispute resolution procedure to be used between the parties;

Not applicable within a single legal entity such as Openreach.

k. details of duration and renegotiation of agreements; Not applicable within a single legal entity such as Openreach.

l. provisions regarding confidentiality of the agreements; Not applicable within a single legal entity such as Openreach.

m. rules of allocation between the parties when supply is limited (for example, for the purpose of co-location or location of masts); and

All deployments are subject to the same survey rules and dependent on space being available. Effectively allocation is on a ‘first come first served’ basis. Should particular problems arise in future more detailed rules of priority could be developed to address them as part of the PIA product development process (e.g. if the PIA product were to substantially change in specification or volume).

The main limitations affecting PIA customers are more likely to be external to Openreach (e.g. obtaining the necessary wayleaves and permissions for CPs to access private property).

n. the standard terms and conditions for the provision of network access.

Not applicable within a single legal entity such as Openreach.

2. Additional PIA specific elements included in the PIA Reference Offer (PIMR Condition 7.3)

Legal Condition Comparison to PIA product to Openreach Internal Usage

a. the location of Physical Infrastructure or the method by which Third Parties may obtain information about the location of Physical Infrastructure;

CPs have access to a specific system designed to meet their requirements (i) for physical infrastructure information, (ii) to place orders for occupancy and network adjustments, and (iii) to maintain an inventory of Openreach infrastructure that they are renting from Openreach.

Physical infrastructure information provided is at the same level of granularly as that used by Openreach planners and sourced from the same system (i.e. PIPeR).

Openreach planners using PIPeR interfaces have the ability to ‘zoom’ in and out of images, and to ‘pan’ to move around images of UK infrastructure. The PIA Digital Maps system has been enhanced to enable an ability to pan within a 5km2 area, and CPs can also automate their queries to be able to download city or UK wide data. Please see Section 3.2 of this document for more details on systems.

b. technical specifications for Physical Infrastructure Access including:

The same specifications apply to Openreach and PIA customer deployments.

Further details are given in the PIA product descriptions, and Engineering Principles documentation (referenced in Annex E of this document).

Issue 4 – 01/08/2019 26 of 38

(i) technical specifications for permitted cables and associated equipment;

(ii) cable installation, attachment and recovery methods; and

(iii) technical specifications relevant when Third Parties elect to undertake repair works on Openreach physical infrastructure;

(iv) technical specifications relevant when Third Parties elect to undertake build works on Openreach physical infrastructure;

Quality and workmanship standards and quality accreditation details are common across CPs, Openreach personnel and Openreach contractors.

All physical infrastructure integrity measures apply equally to Openreach and PIA deployments (eg cable breaking strengths, gas testing, pole structural assessments etc.).

ANFP rules apply both to Openreach and to PIA customers.

c. the methodology for calculating availability of spare capacity in Physical Infrastructure;

CPs are required to use the same rules and principles as Openreach uses and these are applied consistently for both underground and overhead infrastructure.

Openreach also provides an estimated status for availability in duct infrastructure as part of the PIA Digital Maps system.

d. procedures for the provision of information to Third Parties about spare capacity, including arrangements for visual surveys of Physical Infrastructure to determine spare capacity;

CPs are required to use the same rules as Openreach uses for surveys and visual inspections, and have the same rights as Openreach to survey both overhead and underground infrastructure.

Openreach also provides additional information on duct usage and estimated spare capacity via its PIA Digital Maps system.

CPs also have the similar analytical capabilities via the PIA system as Openreach do via the PIPeR system interfaces, with an ability to ‘zoom’ in on designated geographic areas, pan across infrastructure images and download network record information.

e. conditions for reserving capacity that shall apply equally to Openreach and Third Parties;

Broadly, in terms of access to infrastructure capacity the process operates on a ‘first come, first served’ basis for everyone including Openreach.

The PIA specific approach is now referred to as the Order/Notice of Intent (NoI) process as it describes the PIA customer’s intention to order and occupy space in, or on, a particular section of Openreach’s physical infrastructure, but the space is not formally reserved. After placing a NoI order, the PIA customer is able to survey and carry out its build, just as Openreach would, and then confirm or amend their NoI records once they have installed their equipment (i.e. at the Build Complete stage).

Openreach does not use the NoI process but uses a similar internal PIPeR based process to record its plans. As stated above there is no reservation of capacity for Openreach (or

Issue 4 – 01/08/2019 27 of 38

the CP) as the process operates on a ‘first come, first served’ basis for all users. Please see Section 3.3 of this document for further details of the NoI ordering process.

f. conditions for the installation and recovery of cables and associated equipment;

CPs are required to use the same rules as Openreach uses.

Openreach may also be required to remove equipment as part of a qualifying network adjustment, and under certain circumstances a CP may also have to remove redundant and unused equipment as set out in the PIA Product Description. Please see Section 3.5 for further information on the Network Adjustment process.

g. arrangements for relieving congested Physical Infrastructure, including the repair of existing faulty infrastructure and the construction of new Physical Infrastructure;

CPs are required to use the same rules as Openreach uses.

Openreach may also be required to carry out repair of existing faulty infrastructure and/or very limited construction of new physical infrastructure as part of a qualifying network adjustment. Please see Section 3 for further information on the Network Adjustment process.

h. conditions for Third Parties to gain access to the Physical Infrastructure including if appropriate training, certification and authorisation requirements for personnel permitted to access and work in/on Physical Infrastructure;

These are described in the Accreditation Guidelines. They are the same requirements as Openreach uses for its workforce and sub-contractors.

All operatives need to be accredited in the relevant skills to work on the appropriate infrastructure (e.g. overhead working requires very different skills to underground operations).

i. the arrangements for maintenance of cables and associated equipment installed by Third Parties and of the Physical Infrastructure, including provision for the temporary occupation of additional infrastructure capacity for the installation of replacement cables;

CPs are required to follow the processes in the contract and Product Description. These are the same processes as Openreach.

j. conditions for the inspection of the Physical Infrastructure at which access is available or at which access has been refused on grounds of lack of capacity;

CPs carry out their own surveys and have access to all infrastructure, in line with appropriate security clearances, and access to detailed on-line information via the PIA Digital Maps system.

CPs are required to carry out surveys in line with the contract documentation. This is the same for Openreach and PIA customer deployments.

Issue 4 – 01/08/2019 28 of 38

k. the information that a Third Party is required to provide to the Dominant Provider where that Third Party is requesting the repair of existing faulty infrastructure and/or the construction of new Physical Infrastructure necessary for the Service Level Commitments and Service Level Guarantees required by Conditions 7.3B(l) and (m) below;

Openreach validates any required Network Adjustments as part of its own deployments and applies cost controls and civils avoidance techniques to ensure only necessary civils costs are incurred.

Openreach does not subject itself to SLA/SLG arrangements. Please see Section 3.5 for further information on the Networks Adjustment process.

l. Any reasonably necessary Service Level Commitments including in respect of at least the following:

(i) the provision by the Dominant Provider to a Third Party of a Response Notice;

(ii) the completion by the Dominant Provider of any works necessary to relieve congested Physical Infrastructure including the repair of existing faulty infrastructure and the construction of new Physical Infrastructure other than a congested Pole;

(iii) the provision by the Dominant Provider of a response to a request by a Third Party to undertake works itself to relieve congested Physical Infrastructure;

(iv) the provision by the Dominant Provider to a Third Party of a Pole Response Notice; and

(v) the completion by the Dominant Provider of any works necessary to relieve a congested Pole.

Openreach does not have internal contractual SLAs in the same way as it does with an external Third Party. However we operate similar levels of validation and controls on Openreach’s own civils work as we do for PIA customers’ requests, plus produce KPIs to ensure transparency of internal vs external performance. Please see Section 3.5 for further information on the Network Adjustment process.

m. Service Level Guarantees in respect of the Service Level Commitments specified in Condition 7.3(l) above;

Not applicable within a single legal entity such as Openreach.

n. conditions for the provision of forecasts by a Third Parties in respect of their future requirements for Physical Infrastructure Access; and

Openreach produces very detailed and extensive internal forecasts which look forward over a 5 year window to ensure appropriate availability of resource, funding and prioritisation. Please see Section 3.1 for more details.

o. conditions on which Third Parties may elect to undertake repair or build works on behalf of the Dominant Provider.

Not applicable within a single legal entity such as Openreach.

However same quality standards are applied to Openreach’s contractors as to PIA customers and their contractors.

Issue 4 – 01/08/2019 29 of 38

5. Regulatory Financial Reporting

92. Ofcom published their statement for the regulatory financial reporting of the physical

infrastructure markets on 12 July 2019.65 In this statement Ofcom have directed Openreach to

introduce PIA reporting to the Regulatory Financial Statements (RFS) in two stages.

Aggregated PIA reporting for the RFS in 2019/20 (to be published in July 2020)

93. Openreach are required to report on a new market for PIA which will disclose the total costs

of all physical infrastructure, and present the share of costs recovered from PIA customers and

how much is recovered from Openreach’s own cable networks.

94. Openreach will also be required to disclose the value of network adjustments (both above and

below the financial limit) carried out on behalf of PIA customers and for work on Openreach’s

own cable networks.

More detailed PIA reporting for the RFS in 20/21 (to be published in July 2021)

95. The next stage of reporting is for Openreach to disclose revenues and costs for detailed PIA

components like spine duct, lead-in duct, junction boxes and poles as and when the revenues

exceed £5m. Openreach will be required to disclose the amount of costs for each of these

components that are recovered from PIA customers and from Openreach’s own cable

networks.

65 https://www.ofcom.org.uk/consultations-and-statements/category-1/bt-regulatory-financial-reporting

Issue 4 – 01/08/2019 30 of 38

ANNEX A - Network Adjustment Categories

Network Adjustment Categories Approach to Validation

Overhead D Pole. Poles overloaded with wires. Poles with no space for additional furniture. Poles with wire attachment restrictions due to crown rings.

Notes: Openreach is committed to desk based validation for the majority of OH adjustments, although some OH work will always need a field survey (split poles for example). CPs need to submit sufficient information and photographic evidence to enable desk based validation. *Where sufficient evidence is provided by the CP and a survey is not required. Some types of complex pole scenarios will always need field verification (e.g. split pole).

Desk and Field Validation Desk validation * Desk validation * Desk validation *

Underground Spine duct with lack of capacity that can be resolved by recovering cables. Spine duct collapsed. Jointing chamber - lack of capacity. Jointing chamber – damaged. Lead-in duct – lack of capacity that can be resolved by recovering cables. Lead-in-duct – collapsed.

Notes: UG network adjustments initially require 100% desk & field validation. Achieving successful ‘Path to Collaboration’ status will reduce this rate (please see next slide).

Desk and Field Validation Desk and Field Validation Desk and Field Validation Desk and Field Validation Desk and Field Validation Desk and Field Validation

Note: Operational experience during 2019/20 will help determine the extent to which surveys will be required to produce accurate Customer Committed Dates (CCDs).

High Level Approach to Validation

Issue 4 – 01/08/2019 31 of 38

ANNEX B – Network Adjustments and the ‘Path to Collaboration’ model.

Step 1: Collaboration

•Forecast submitted on forecasting area basis.

•Whereabouts submitted.

•SPO evidence submission requirements adhered to.

•Less than 5% rejected at desk (previously 2%).

Step 2:

Quality

•Less than 10% rejection field (previously 5%).

•Audit pass >= 90%.

•Remedial action <= 30 days.

•Safety- no reported infrastructure/member of public incidents in preceding 3 months.

Work is continuing with stakeholders to develop an operating model where PIA customers can take greater responsibility for validating adjustments

Path to Collaboration’ model The ‘Path to Collaboration’ model will enable

CPs to take greater control of Network Adjustment (NA) validation by evidencing they are carrying out the due diligence required to ensure civils costs are controlled appropriately and that they are working within the terms of the PIA contract.

Where a CP has achieved ‘Collaboration’ status Openreach will not automatically validate in the field when a survey is not required.

The intention is that ‘Collaboration’ status will be granted using a combination of geography and supplier.

Qualifying criteria and detailed workflows are still being discussed with industry, and this IRO will be updated as and when details are finalised during 2019/20.

A review of the content and quality standard associated with PIA customer’s ‘Build Complete’ returns will also be required to ensure that Openreach has proper fiduciary control and auditability over the NAs that it is required to pay for.

Metrics and qualifying criteria are being considered in two ways - either: • National qualification with a minimum threshold of 80 successful UG self-provide orders progressed

in total, or • Regional qualification with a minimum threshold of 20 successful UG self-provide orders progressed

within that region. All ‘qualified’ PTC orders would still be subject to sampling checks. The proposed sampling methodology would initially be up to 20% of orders progressed via the PTC workflow, gradually decreasing over the period of qualification.

Current proposals

Openreach see providing a forecast and submission of whereabouts data as a basic hygiene factor for any CP that wishes to ‘Collaborate’ with Openreach in order to pass self-provide orders through the PTC.

Issue 4 – 01/08/2019 32 of 38

ANNEX C – Key Performance Indicators (KPIs). • The existing KPIs broadly split into two groups (i) PIA Service Performance and (ii) PIA Openreach Comparator data. • The majority of PIA data has been delivered with the latest data drop having taken place in mid-July. • These KPIs will demonstrate the performance of the PIA product, with the PIA Service Performance data primarily used to assess quality of

service for the PIA product, but it can also be used to compare against the PIA Openreach Comparator data (see table below).

KPI Description PIA Service Openreach1 Granularity & Frequency

Mean Time to Provide Mean time for the provision of a Network Adjustment.

Duration - PIA actuals

Duration - Openreach comparator data.

By adjustment type and area, monthly for PIA, quarterly for Openreach data.

Time to Verify Time taken to verify whether a Network Adjustment is necessary and respond to CP.

Duration - PIA actuals

Duration - Openreach comparator data.

By adjustment type and area, monthly for PIA, quarterly for Openreach data.

Performance vs. CCD Success rate against date given for the completion of a Network Adjustment.

% success rate – PIA actuals

% success rate – Openreach comparator

data.

By adjustment type and area, monthly for PIA, quarterly for Openreach data.

The PIA Service KPIs will be published monthly and shared with Ofcom and the PIA Customers Closed User Group on the 15th working day of each month. These can be accessed from the “My Dashboard” area of the PIA customer website. They will be subject to ongoing review and further developments are anticipated. New KPIs will be added to this report as and when they become available.

The Openreach internal comparator measures used to demonstrate No Undue Discrimination, will be published quarterly and shared with Ofcom and the PIA Customers Closed User Group on the 15th working day after the end of each quarter. This means that prior to submitting a Network Adjustment request, CPs will be able to see typical lead times for each of the main network adjustments within each of the 25 forecasting regions, reported on a quarterly basis.

Note 1: We are continuing to work with stakeholders to refine internal comparator measures. This IRO will be updated when they are available. We will also need to work with stakeholders to manage and potentially adjust metrics to take account of scenarios outside of Openreach control (e.g. to avoid cases where NAs remain open indefinitely and accrue and inflate MTTP).

A set of KPIs are being developed to underpin PIA performance and No Undue Discrimination (NUD) requirements.

Issue 4 – 01/08/2019 33 of 38

ANNEX D - PIMR Legal Conditions. PIMR Annex 26 – 28 June 2019

Condition 7.4

To the extent that the Dominant Provider provides to itself network access that: a. is the same, similar or equivalent to that provided to any Third Party; or b. may be used for a purpose that is the same, similar or equivalent to that provided to any

Third Party; in a manner that differs from that detailed in a Reference Offer in relation to network access provided to any Third Party, the Dominant Provider must ensure that it publishes a Reference Offer in relation to the network access that it provides to itself which includes, where relevant, at least those matters detailed in Condition 7.2(a) to (o)66 and any other matters Ofcom may direct from time to time. Condition 7.2

Subject to Condition 7.9, the Dominant Provider must ensure that a Reference Offer in relation to the provision of network access pursuant to Condition 1 includes, where applicable, at least the following, and any other matters Ofcom may direct from time to time — a. a description of the network access to be provided, including technical characteristics (which

shall include information on network configuration where necessary to make effective use of network access);

b. the locations at which network access will be provided; c. any relevant technical standards for network access (including any usage restrictions and

other security issues); d. the conditions for access to ancillary, supplementary and advanced services (including

operational support systems, information systems or databases for pre-ordering, provisioning, ordering, maintenance and repair requests and billing);

e. any ordering and provisioning procedures; f. relevant charges, terms of payment and billing procedures; g. details of maintenance and quality as follows—

(i) specific time scales for the acceptance or refusal of a request for supply and for completion, testing and hand-over or delivery of services and facilities, and for provision of support services (such as fault handling and repair);

(ii) service level commitments, namely the quality standards that each party must meet when performing its contractual obligations;

(iii) the amount of compensation payable by one party to another for failure to perform contractual commitments;

(iv) a definition and limitation of liability and indemnity; and (v) procedures in the event of alterations being proposed to the service offerings, for

example, launch of new services, changes to existing services or change to prices; h. details of measures to ensure compliance with requirements for network integrity; i. details of any relevant intellectual property rights; j. a dispute resolution procedure to be used between the parties; k. details of duration and renegotiation of agreements; l. provisions regarding confidentiality of the agreements; m. rules of allocation between the parties when supply is limited (for example, for the purpose

of co-location or location of masts); and n. the standard terms and conditions for the provision of network access.

66 Condition 7.2 does not have a part (o) specified in the condition.

Issue 4 – 01/08/2019 34 of 38

Condition 7.3

Subject to Condition 7.9, and to the extent not already required by Condition 7.2, the Dominant Provider must ensure that a Reference Offer in relation to the provision of Physical Infrastructure Access pursuant to Conditions 1 and 2 also includes at least the following: a. the location of Physical Infrastructure or the method by which Third Parties may obtain

information about the location of Physical Infrastructure; b. technical specifications for Physical Infrastructure Access including:

(i) technical specifications for permitted cables and associated equipment; (ii) cable installation, attachment and recovery methods; and (iii) technical specifications relevant when Third Parties elect to undertake repair

works on behalf of the Dominant Provider; (iv) technical specifications relevant when Third Parties elect to undertake build

works on behalf of the Dominant Provider; c. the methodology for calculating availability of spare capacity in Physical Infrastructure; d. procedures for the provision of information to Third Parties about spare capacity, including

arrangements for visual surveys of Physical Infrastructure to determine spare capacity; e. conditions for reserving capacity that shall apply equally to the Dominant Provider and Third

Parties; f. conditions for the installation and recovery of cables and associated equipment; g. arrangements for relieving congested Physical Infrastructure, including the repair of existing

faulty infrastructure and the construction of new Physical Infrastructure h. conditions for Third Parties to gain access to the Physical Infrastructure including if

appropriate training, certification and authorisation requirements for personnel permitted to access and work in/on Physical Infrastructure;

i. the arrangements for maintenance of cables and associated equipment installed by Third Parties and of the Physical Infrastructure, including provision for the temporary occupation of additional infrastructure capacity for the installation of replacement cables;

j. conditions for the inspection of the Physical Infrastructure at which access is available or at which access has been refused on grounds of lack of capacity;

k. the information that a Third Party is required to provide to the Dominant Provider where that Third Party is requesting the repair of existing faulty infrastructure and/or the construction of new Physical Infrastructure necessary for the Service Level Commitments and Service Level Guarantees required by Conditions 7.3B67 (l) and (m) below;

l. Any reasonably necessary Service Level Commitments including in respect of at least the following:

(i) the provision by the Dominant Provider to a Third Party of a Response Notice (other than where a Response Notice is not required);

(ii) the completion by the Dominant Provider of any works necessary to relieve congested Physical Infrastructure including the repair of existing faulty infrastructure and the construction of new Physical Infrastructure other than a congested Pole;

(iii) the provision by the Dominant Provider of a response to a request by a Third Party to undertake works itself to relieve congested Physical Infrastructure (other than where a response is not required);

(iv) the provision by the Dominant Provider to a Third Party of a Pole Response Notice; and

(v) the completion by the Dominant Provider of any works necessary to relieve a congested Pole.

m. Service Level Guarantees in respect of the Service Level Commitments specified in Condition 7.3(l) above;

67 There is no Condition 7.3B shown in Annex 26, only Condition 7.3.

Issue 4 – 01/08/2019 35 of 38

n. conditions for the provision of forecasts by a Third Parties in respect of their future requirements for Physical Infrastructure Access; and

o. conditions on which Third Parties may elect to undertake repair or build works on behalf of the Dominant Provider.

Issue 4 – 01/08/2019 36 of 38

ANNEX E - Further Information Sources.

Physical Infrastructure Access (PIA)

Under the terms of Ofcom’s final statement on the “Physical Infrastructure Market Review”

(PIMR) published on 28 June 2019, BT is required to publish reference offers in relation to

network access provided within SMP designated markets.

For PIA, the relevant product information, technical and contractual information is at:

https://www.openreach.co.uk/orpg/home/products/ductandpoleaccess/ductandpoleaccess.

do

PIA related charges are published in the Openreach price list and can be found at:

https://www.openreach.co.uk/orpg/home/products/pricing/loadPricing.do

Interface Specifications can be found at:

http://www.sinet.bt.com/

Information on the Openreach Statement of Requirements (SOR) process can be found at:

https://www.openreach.co.uk/orpg/home/loadStatementOfRequirement.do?data=5VuXDcY

vB0NkrRQRrBZRxYyWF5PgOs6bUzF%2BfSrZzmJba5FvEz4krukRuCCbqYkv

BT’s Regulatory Financial Statements can be found at:

https://www.btplc.com/Thegroup/Policyandregulation/Governance/Financialstatements/20

18/index.htm

Details of the Passives Industry Working Group (PIWG) and the Copper and Fibre Products

Commercial Group can be found at:

https://www.openreach.co.uk/orpg/home/products/industryforums/industryforumlanding.

do]

Openreach Fibre First information can be found at:

https://www.homeandbusiness.openreach.co.uk/fibre-first

Please note: If you require any of the on-line information referenced above, but are unable to

access the relevant website then please contact openreach.service.desk@openreach.co.uk or

your Sales and Relationship Manager (SRM) for assistance and further information.

Issue 4 – 01/08/2019 37 of 38

ANNEX F - Glossary of Acronyms.

ADSL Asymmetric Digital Subscriber Line

ANFP Access Network Frequency Plan

BDUK Building Digital UK (was formally known as Broadband Delivery UK)

CP Communications Provider

CFPCG Copper and Fibre Products Commercial Group

D side Distribution side

DSLAM Digital Subscriber Line Access Multiplexer

E side Exchange side

eMLC Enhanced Managed Line Characteristics

EMP Equivalence Management Platform

EoI Equivalence of Input

EU End User

FTTC Fibre To The Cabinet

FTTP Fibre To The Premises

GEA Generic Ethernet Access

GPON Gigabit Passive Optical Network

IRO Internal Reference Offer

LLU Local Loop Unbundling

MDF Main Distribution Frame

MPF Metallic Path Facility

NA Network Adjustment

NGA Next Generation Access

ODF Optical Distribution Frame

OTA Office of the Telecoms Adjudicator

PCP Primary Cross-connection Point

PIMR Physical Infrastructure Market Review

PIPeR

Physical Inventory Planning and eRecords

PIWG Passive Industry Working Group

PoH Point of Handover

PoP Point of Presence

SFBB Super-Fast Broadband

SIN Suppliers Information Note

SLU Sub Loop Unbundling

SMC Service Management Centre

SMP Significant Market Power

SMPF Shared Metallic Path Facility

SoR Statement of Requirements

VDSL Very high speed Digital Subscriber Line

VLAN Virtual Local Area Network

VULA Virtual Unbundled Local Access

WLA Wholesale Local Access

WLR Wholesale Line Rental

Issue 4 – 01/08/2019 38 of 38

Document History

Status Date Details of Change Issue 1.0 Issue 2.0 Issue 3.0 Issue 4.0

21/11/2011 16/05/2013 01/04/2019 01/08/2019

Initial publication Update following Exchange Access Link withdrawal Update for WLA PIA product launch on 1 April 2019 Update for PIMR PIA product launch on 1 August 2019.

End of Document