Ofcom proposals for charge controls on Openreach with respect to ISDN30

On 1 April 2011, Ofcom set out proposed price controls on Openreach for its wholesale ISDN30 services. ISDN30 provides between eight and 30 digital telephone lines for businesses. This follows a previous market review by Ofcom in relation to retail and wholesale ISDN30 markets and the profits earned by Openreach. Ofcom notes that Openreach’s returns from wholesale ISDN30 services are well above its weighted average cost of capital and that it is appropriate to impose an RPI-X control. Ofcom proposes a price cap of RPI-8% to RPI-12% for the main basket of ISDN30 rentals and connections.

In June 2010, DotEcon advised Openreach on the proportionality and potential adverse effects of the proposed remedies in light of ISDN30 being at the end of its lifecycle. DotEcon’s report to Openreach can be found here.

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