NEWS REPORT
www.comms-dealer.com
Fishwick issues WLR warning
every year,” said Fishwick. “Initially,
Adept Telecom’s Managing Director Ian
business line rental will fall to the
Fishwick is urging fixed line resellers to get to
current residential price of £8.39.
That is a drop in wholesale cost
grips with Ofcom’s latest proposals to change
of 8.5 per cent from £9.17 down
Wholesale Line Rental pricing structures.
to £8.39. That is a huge impact
when it can represent 40 per cent
of a fixed line reseller’s revenue.
O
fcom issued a consultation are boring, and I honestly believe “Already the cost of installing a
bulletin in early July the majority of resellers will be new line is dropping closer to LLU
announcing WLR price unaware of these proposals. When levels from £88 to £67. The first
controls which if approved will take I received notification I cancelled key point is whether resellers are
effect from October 1st this year my meetings to read up on it.” going to pass the price saving
and will run until 2013. Fishwick is onto customers or not? Secondly,
not wholly against the proposals, The changes proposed are as Openreach will no longer be
which he says will create a more follows: From 1st October 2009 regulated for call services such
level playing field on rental prices, there will be a single price for
Ian Fishwick
as call divert/call forwarding
but he is concerned BT Openreach PSTN lines (business and residential etc. There will be a big drop in
could use the changes as an lines will be charged the same); will rise initially from £2 to £3; and line rental revenue, so they will
excuse to increase charges for business lines will fall to the current the cost of installing a new PSTN be tempted to simply increase
features such as call divert. He residential price of £8.39 per line will fall initially from £88 to £67. the call service prices. We could
also believes the changes could month, ie, a saving of 8.5 per cent; be back to square one again.
creep under the radar of resellers from 1st April 2010, and every “This is all about creating a level
before they have had the chance year thereafter, line rental prices playing field by 2013, by which “We are advising our partners
to evaluate them. “I think this is the will change dependent upon a time LLU and BT pricing will be very to wait and see what happens.
biggest single issue for resellers at formula linked to the RPI (Retail similar. We’ve all been used to no I would be very careful about
the moment,” he stated. “Anyone Price Index); prices for call services changes in line rental pricing. If dropping prices now in case they
can register to receive Ofcom (eg, call divert) will cease to be this goes through we are going to have to be raised again in April
updates but 99 per cent of them regulated; the cost of WLR transfers see BT line rental prices changing when the RPI rate kicks in.”
n
50 COMMS DEALER SEPTEMBER 2009 www.comms-dealer.com
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