OFCOM new market classification scheme

[#1]

What is the time scale for all of this?
and crucially will the new system be updated somewhat faster than the old one so that when competition arrives at the local exchange its market status will be changed within a reasonable amount of time?
And any ideas on possible pricing?

[#2]

There's only one exchange currently in Market 3 which doesn't become Market B and that is the one I mentioned in reply #25 EACHU (Church Langley).
From the consultation document it appears Ofcom anticipate the new regulatory framework will come into force from 1 April 2014 running for a period of 3 years. However it cannot be assumed that Ofcom will adopt the scheme and/or exchange assignments in the consultation document for the new framework.

[#3]

So i take it form the above "running for three years" that it will be no more than a snapshot of the exchanges at the time of the review and that it will only be changed after three years.
For the system to be really effective, and truly represent the needs of consumers and service providers it needs to change and adapt as the situation at the exchange changes, when an LLU provider arrives the market classification should change to reflect this within a reasonable amount of time.

[#4]

Yes, almost certainly it will be 3 years before Ofcom review the market classifications again.
What Ofcom are trying to do is improve competition - so they control BT Wholesale prices such that a lower cost LLU operator might be encouraged to put their own equipment into the exchange knowing they will have an opportunity to build their customer base and get a return on their investment. That will include migrations from ISPs using BT Wholesale's regulated (to higher cost) infrastructure.
A difference from previous regulatory periods is that on this occasion Ofcom are only regulating 20CN IP Stream Connect (up to 8Mbps) so that BT Wholesale are free to enable unregulated 21CN WBC (ADSL2+) services in the exchange if they wish.

[#5]

Quote from: spraxyt

What Ofcom are trying to do is improve competition - so they control BT Wholesale prices such that a lower cost LLU operator might be encouraged to put their own equipment into the exchange knowing they will have an opportunity to build their customer base and get a return on their investment.

Whilst if they do, the non-LUU operators are still forced to charge the higher rate for up to three years until the next Ofcom review.  That hardly seems fair.   

[#6]

Unfortunately Ofcom logic is that they only regulate wholesale prices and retail ISPs can reduce their own prices to compete if they wish. I think that is called making a loss on each customer.
I guess Ofcom would argue retail ISPs could move their customers to LLU wholesale infrastructure to reduce their costs (which also reduces BT Wholesale's market power in the exchange).

[#7]

one thing that surprises me is how the ISPs using BTW products ( such as plusnet) dont appear to care, or want to do anything in order to persuade  offcom to get off their backsides and actauly come up with a system  that benefits the consumer and the ISP alike.
As it stands an LLU supplier can come onto an exchange and massively undercut  the competitions prices, safe in the knowledge that a market review will be some time
If an LLU supplier charges £7.00 for Broadband, but BTW suppliers charge £17 ( due to market whatever price regulation) then this leads to a lack of choice for the cons

[#8]

Since Ofcom's aim is to increase competition, they want LLU suppliers to move in knowing they "will* have an opportunity to build their customer base and get a return on their investment.
However in the proposed Market A exchanges BT Wholesale will be able to compete immediately if they wish by investing themselves and enabling the exchange for 21CN WBC (ADSL2+) services.

[#9]

So my exchange is proposed to be in Market B (from Market 1).  Hoorah! 
Let's hope that the customer options team can keep me until Plusnet refresh products / prices 

[#10]

When will these proposals be implemented?

[#11]

When I contacted Ofcom they said March-April.
My contract is up with PN end of Feb so it will interesting for me to see what are proposing.

[#12]

Anyone have any more news on this?

[#13]

Nope,  it will still be 1st July 2014 from reports I've seen, such as - ISPreview : Fixed Access Review Delay  
Just over ten weeks to wait for the new market classification and pricing ! 

[#14]

or two- three billing cycles.
Will plusnet respond, or not? im getting a sore backside sitting on the fence between plusnets prices on one side, and talk talks low cost options, but hassle of changing over ( even it plusnet force me to pay £30 to leave ) on the other side.
And if i phone plusnet to negotaie a better price, only to find market 2/3 prices in a few months time would i still be tied to what was a good price, but is now not so good after the new market review???

[#15]

I'm in exactly the same position, not keen to leave Plusnet but knowing that they cannot compete on price with the LUU providers that have moved in since Ofcom's last reclassification.