Telecommunications Adjudicator Update for January 2006

I am pleased to report some very important milestones. The number of lines unbundled will reach 250,000 this week. The weekly throughput of lines unbundled has exceeded 15000 on two recent weeks. The Telecommunications Adjudicator scheme has completed its initial period of 18 months and has been extended with the next review in March 2006.

A new OTA Forecast based on LLUOs Business Plans has been compiled. The new consolidated forecast predicts between 2 and 3 Million lines unbundled by end of 2006. It is important to remember that the OTA creates a consolidated forecast, and then we take a operationally realistic view of what is likely to happen. This is not a market view but a guide for Openreach and OTA to ensure the IT systems and Provisioning processes have adequate capacity to ensure the lines can be delivered if the market delivers the customers.

The OTA Right First Time KPI has reached a plateau and is particularly affected by the performance of New Provide MPF lines. When the New MPF performance is removed from the result the other lines (MPF & SMPF Transfers) are converging on the target KPI.

Openreach last month introduced a new Industry agreed KPI that measures delivery performance from Openreach First Touch to Openreach Last Touch. We feel this data is better presented as a four week rolling average so that we can identify trends clearly. (See OR FTLT KPI). This KPI represents Delivery performance to the ‘Customer Required Date’ as set by the LLUO and, as such, is a more demanding quality of delivery test.

We continue to be encouraged with the stability of the Key Tactical Automation Platforms. Openreach have attained ongoing stability on both the MPF and SMPF platforms. Updates are still being applied to the Tactical systems; however stability is being maintained through these quality improvement upgrades.

Bulk Migration is well under way. A detailed migration plan is in place for the next six months based on forecast inputs from the Bulk Migrating LLUOs. Plan, Build and particularly Backhaul issues are impacting the intensive Bulk Migration Programme and therefore are being treated with high priority by Openreach.

The Openreach Plan, Build & Backhaul processes have recently encountered delivery problems. Openreach has started to recover the P&B activity towards acceptable quality.

A new Backhaul team under the leadership of an Openreach General Manager has been put in place, we now have visibility of a Continuous Improvement Quality Initiative that we find acceptable and we will be able to track against. We have also had sight of the underlying initiatives both short term and longer term being put in place to deliver LLU Backhaul to acceptable Provision Quality and Timeliness. We have clear commitments from John Small, MD Openreach Service, to reach the quality targets. OTA will summarise and trend Backhaul Performance in future reports.

The implementation of the Openreach Strategic Systems (now known as the Equivalence Management Platform ( EMP)) for LLU and the transition from current Tactical Systems continues to be a significant area of focus for the OTA. Several LLUOs have made a commitment to go live with the first phase of EMP (SMPF) which is due for pilot launch on 13 th February 2006. A huge amount of collaborative effort is going into ensuring this is a success for Openreach and the LLU industry.

The new Evolutionary Governance Model for LLU has started after the inaugural meeting of the LLU Executive. The reason for change at this time is to start moving the LLU industry towards ‘life after the Adjudicator’. I will continue to chair the LLU Executive and IT Directors Group, Carlos Leira of Wanadoo has taken the 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. The new Provisioning Forum has also met under the leadership of Allison Halse, Director Service Management of Openreach.

There are no Disputes in progress at the present time.

We have reached a very significant milestone at 250,000 lines; we are achieving the breakthrough needed to create a major market platform. I remain confident that the industry has the opportunity to deliver given Openreach maintains high level focus on Backhaul and Plan & Build delivery. I am very pleased with the level of Openreach engagement, tempered by the rapid learning curves in some areas.

OTA will continue to focus in particular on: a) Bulk Migration; b) Backhaul; c) Plan & Build; and d) Strategic Automation Plans (EMP).

Peter McD. Black

Telecommunications Adjudicator