Telecommunications Adjudicator Update for December 2005

I am pleased to report the number of Unbundled Lines now exceeds 210,000; the current run rate of line orders is significantly greater than the 5000 per week reported last month. The OTA Right First Time KPI has reached a plateau at 90%. Bulk migration is well underway and more than 40,000 lines have been migrated at approx 98% RFT

A new Adjudicator Forecast based on LLUOs Business Plans has been compiled. The new consolidated forecast is very bullish and predicts unbundled lines well in excess of our target of greater than One Million lines unbundled in 2006.

The OTA Right First Time KPI had been improving and heading for target, but recently it has been subject to weekly fluctuations. The stability of this KPI is crucial in building long term confidence for the LLUOs so they can ramp up marketing programmes without worrying about quality of delivery from Openreach. In the spirit of continuous improvement we have improved the OTA KPI to indicate the performance of delivery to the Customer Agreed Date (CAD). This is a stricter measurement than the historical measure that is based on CAD+1 day. Now that the IT platforms have stabilised we are now able to reliably & regularly report the CAD measure, this will now become the OTA’s primary focus, and both are now shown.

Openreach, the LLUOs and the OTA have introduced a new KPI that measures delivery performance from Openreach First Touch to Openreach Last Touch. (See OR FTLT KPI) Openreach have significantly stepped up their focus on quality in general. This is an example of getting as close as possible to the real impact on end users caused by Openreach Processes and Systems.

This FTLT measurement is based on the Customer Required by Date ( CRD) and represents the % of successful installation completion notifications that reach LLUOs by midnight on the day the services were due to be delivered. Any circuits that fail the initial pre-order enquiry stage or subsequently prove faulty after delivery are subtracted from the successful number before final calculation; this stringent measure is a clearer representation of Openreach’s performance.

The FTLT also measures SMPF Bulk Migration, SMPF, Transfer MPF and New MPF Provision separately. The most significant problem identified in this new suite of measures is the performance of New MPF deliveries; this measure is moving about dramatically and thereby undermining the average delivery performance. Openreach are producing a new plan to address the specific problems in this area.

We are encouraged with the current stability of the Key Tactical Automation Platforms. We have ongoing stability on both the MPF and SMPF platforms. However there are still incidents so we need a few more weeks of stability behind us to be sure we have completely solved the historic problems. Automation remains an area of forensic focus for OTA in support of BT/Openreach and the LLUOs. It is critical that the Tactical systems remain stable whilst the industry works towards the Strategic System delivery phased throughout the year.

The Bulk Migration task team continues to make progress. A detailed migration plan is in place for the next 6 months based on new forecast inputs from the Bulk Migrating LLUOs. Plan, Build and particularly Backhaul issues could impact the intensive Bulk Migration Programme and therefore are being treated with high priority by Openreach. Bulk migration volumes are ramping up significantly.The Number of Lines forecast to be Bulk Migrated through to July 2006 is likely to be greater than half a million. There has been a slight drop off in process quality for Bulk Migration although without end user impact and Openreach are actively addressing the underlying issues.

The Openreach Plan, Build & Backhaul processes have recently encountered delivery problems. OTA has now had sight of a plan from Openreach that has started to recover the P&B activity to acceptable quality. However, the ongoing quality issues on delivery of Backhaul remain one of the OTA’s greatest concerns. The new management team in Openreach are tackling this problem as top priority and we await the benefits that extra staff and training will bring. We are staying very close to this problem and will receive a detailed update on the improvement plan from John Small, MD Service for Openreach, in the next few days.

The implementation of the Openreach Strategic Systems for LLU and the Transition from current Tactical Systems continues to be a significant area of focus for the OTA. The plans for Phase 1 SMPF (February 2006) and Phase 2 MPF (June 2006) have been signed off at the Market Breakthrough Executive. Some LLUOs have agreed to be Lead Implementation LLUOs and have now initiated their development and testing cycles to dovetail with BT One IT’s planned delivery cycle to ensure a quality implementation over the next six months or so. I am pleased with the level of interaction between BT & Openreach and the LLUOs in this critical area as they continue to put massive effort into working towards a joint understanding of what will be delivered. We are cautiously optimistic that this will be a much better experience for the LLUOs than the Tactical Deliverables of 2005 turned out to be.

We are in the early stages of implementing the new Evolutionary Governance Model for LLU. The reason for change at this time is to start moving the LLU industry towards ‘life after the Adjudicator’. An interim governance model has been approved by the MBE, now the LLU Executive.

I will continue to chair the LLU Executive and IT Directors Group, Carlos Leira of Wanadoo has agreed to chair the new Products & Commercial Group, Clive Fedida will continue to lead on Programme Implementation and Operational Performance Groups and Issues, Jim Reilly will continue to lead on the details of all the Strategic Platform work as well as Chair the Plan, Build & Backhaul group.

We have also taken a view of what the governance might be once the interim period through to late summer 2006 is over. Please see the interim governance model and the possible future governance model below.

There are no Disputes in progress at the present time.

We have reached a major milestone at 210,000 lines; we have come a long way and I would like to express my thanks to BT Wholesale, Openreach, Ofcom, the LLUOs and of course my own team. We are close to achieving a breakthrough that many doubted would happen. I remain confident that the industry has the opportunity to deliver a very significant market based on LLU.

OTA will continue to focus in particular on: a) Operational Stability; b) Bulk Migration; c) Backhaul delivery; and d) Strategic Automation Plans.

Industry Governance

 

Peter McD. Black

Telecommunications Adjudicator