Developers Working Group

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Transcript Developers Working Group

Developers Working Group

14 April 2011

Welcome

Domestics

Rest rooms Fire alarm (Stewards will direct) Smoking

Liv Garfield - CEO Openreach

Agenda

   

1.15pm

  

1.30pm 2.00pm 2.30pm 3.00pm 3.30pm 3.50pm Builders and Developers Portal SOD Payment Updates Building Policy Updates and New Sites Fibre Kit New Sites Product Roadmap NSRs and Site Office Lines Coffee break Next meeting topics



4.00pm

 

4.30pm 5.00pm

Leading Edge Marketing Liv Garfield Openreach CEO Close

Caution advised

Some information in this presentation relates to plans currently under development and are subject to consultation, and may be subject to change

Information in this presentation is subject to change

Builders and Developers Portal

Kerry Nutley

Site Map

Discussion - Ideas for Future Releases

• Online registration process which triggers activity planning • Ability for developers to submit (upload) and share documents with Openreach • Ability to interact in real time with Openreach systems to create newsites job, initiate planning activity and allow tracking of progress • Track Service On Demand payments • Other ideas?

HBF Service On Demand Payment

Didier Cordina

Background

Building a new site from the telecom perspective involves off site and on site costs a) Reinforcement cost b) SOD payment c) Site office £ out £ in

Offsite cost also known as Reinforcement

The only element that is Chargeable at this stage is the network between the premise and the existing network

163

How much do we charge ?

Network Reinforcement = Total scheme costs – Total Exemption Allowance The good news is that there is an ample allowance per unit i.e plot Total Exemption Allowance

No. of Units

£3,400 So for large schemes - it is unlikely that a charge might be raised

On site cost, also related to SOD payment

SOD payment support developers civils onsite costs Openreach provides appropriate materials / stores as per contract Developer installs Openreach material and Openreach performs a quality check Once all snagging issues are completed Purchase order is raised by developer then payment is made Openreach then installs its network apparatus end to end at its own cost

163

SOD payment levels pre 1st April 2011

• The Service on Demand Payment is a payment that Openreach and other Telecommunication providers provide to Developers once they have installed ducts & chambers to Openreach specification when constructing a new site, so we can later provision our network apparatus • The SOD agreement currently stands between Openreach and the Home Builders Federation (HBF) who negotiations the rate on behalf of their members • SOD payments paid to HBF members. • London £151 per Single Dwelling Unit • Outside London • Scotland £135 £128 • North England • All flats across the country were • Payment to be made for 4 or more plots only.

£118 £47 • Payment was done when contract was ‘’complete’’ :

SOD payment levels from 1st April 2011

• London • Outside London • All flats across the country were £151 per Single Dwelling Unit £140 £50 • Payment to be made for 11 or more plots only • Quality check and payment to be done every 25 plots • Rates subject to review in 4 Years time.

• Agreement to a reference to the installation of any communications electronic apparatus (subject to survey and availability) rather than just copper to take into consideration of Next Generation Access (NGA)

Site Office Overview – Developer completing on-site plant

The only element that is Chargeable at this stage is the network between the site boundary and the existing network

163

Questions?

Planning Policy and New Fibre Kit Brian Currie and Martin Porter

Builder’s Guide: Contents

3 Welcome to Openreach 4 How to contact your nearest newSites office 6 Make the Openreach newSites office your first port of call 8 The Openreach policy for the supply of telephony services on new developments 9 Alterations to the Openreach network 10 Avoiding damage to the Openreach underground network 11 Miscellaneous charges and how they apply 12 Making the infrastructure work for you 14 Arrangement of carriageway roadcrossings 15 Arrangement of mains services 16 Pre-formed chamber system 17 Non-standard frames and covers 18 Jointing chamber construction JBF 104/106 20 Specifications for Carriageway Chamber 22 New External Termination Point (NTE) 24 Entry into flats and business properties 26 Openreach standard wiring guide 29 Broadband provision 30 Diverse routing 30 Blown fibre tubing 31 Wayleaves 31 Lightning protection 32 The Openreach payments process 34 newSites stores list 37 newSites stores order form

New Sites Product Roadmap

Chris McEwan & Kerry Nutley

What does the Openreach New Sites solution look like?

The ultimate e2e solution for New Sites is based on the Openreach Fibre To The Premise (FTTP) technology and products. These products are already being deployed in Brownfield as part of our NGA roll-out but in many respects the New Sites solution is different. 3 main factors shape the product – the needs of our customers (Developers and CPs), the nature of New Sites development planning/build and very different New Sites service take-up volumes   

Openreach Story:

 Modular architecture “Pre-installed” ONT Remote provision of voice and data services Positive customer experience and RFT

Developer Story:

 Increased sales  Fibre enabled from start (no post sale civils or build activity)  Homes Ready for the future (PAS 2016…) Information in this presentation is subject to change

CP Story:

  FTTP Easy to consume (similar/better than Brownfield)  Quality voice-over-fibre  Efficient RFS and addressing solution

What does the Openreach New Sites solution look like?

Customer Experience  Consistent with FTTP Brownfield for CP/EU  New requirement to support site developer/agent – site plans, phasing, build co ordination, manage SOD payments Plan &Build Plot Call-Off   Modular architecture based on 32 way split/blown fibre  Flexible approach to support new sites environment  Phased approach to build Build up to splitter node      Build up to ONT Register ONT serial number Prove basic connectivity (Sync between ONT/OLT) Ready For Service/Support address matching post plot call-off Builders guide to provide recommendations on build options L2C   Analogous to FTTP Brownfield “home move/existing ONT” scenario Remote delivery of services - data/FVA/Multicast T2R   Re-use existing capabilities – Test & diagnostics etc.

Accommodate new network architecture – Main Fault Locations

New Site Product Development

          Fibre Voice Access Tactical New Sites  Deploy Fibre to the Premises GEA to New Sites (Greenfield) premises with a copper underlay  Deploy Tubing Only to New Sites New Site P&B Status/Developer’s Portal New Sites Network Design Strategic New Sites - Plan, Build & Record Strategic New Sites - Plot Call-off Strategic New Sites - In-fill Strategic New Sites - L2C Strategic New Sites - T2R Futures  Anchor product  Further fibre alternatives for mixed/commercial premises   Home wiring propositions Smart metering Information in this presentation is subject to change

New Site Deployment

  Tactical deployments underway –  Copper underlay/fibre overlay sites  All other sites future enabled, including tubing Early view of Strategic New Sites deployment plan  2 or 3 phase roll-out  Phase 1 - 1 to 5 sites November 2011 to October 2012, target 200 to 500 planned, 50 plots called off, 25 occupied by July 2012, limited copper contingency (built-in but not offered)  Phase 2 - significant additional sites starting March 2012 building up to national roll-out  March 2013 - All Tactical New Sites activity ceases (Copper Underlay process & tubing deployment) and in-progress developments switch to FTTP on strategic deployment Information in this presentation is subject to change

Discussion Point

 What other products and services do you require?

• IRS • Network for smart metering • Internal Wiring • Kit cupboards

November Pilot Request

      We are looking for:  5 sites across NGA footprint  Sites to have 75 - 100 plots   MDUs and SDUs on site Mix of demographics Mix of building type, commercial, residential, signage, bus stops Plans to be received by November, Openreach plans will be returned by end of December Circa 20% occupancy in July Involvement in pre design meetings Partnership working on site Feedback on lessons learnt   In return:  Support of subject experts across Openreach   Your input into building new products and service First mover advantage of new fibre only service Introduction to CPs Collateral for show home marketing if required  SOD payment Information in this presentation is subject to change

Announced Exchanges

For More Information http://www.openreach communications.co.uk/superfast/where -and-when/ Information in this presentation is subject to change

New Sites Rep and New Site Office Lines

Phil Orr

Service Delivery to Site Offices

Industry complaints to the OTA about service delivery to site offices – long lead times and high cost. Working group with UKCG established: • • • • Root cause analysis of failed jobs Site distribution points introduced Site survey fee (in advance of order) trialled, but limited demand at the time Jobs cancelled by systems – systems improvements made.

• Process trial to reduce internal hand offs and reduce survey time to <5 days.

• Working with the UK construction group representatives monitor live orders Information in this presentation is subject to change

Order Monitoring

• • • Live order monitoring exercise tracking orders submitted by the UKCG. On completion, learning will be used to drive further process improvement.

Learning so far….

24.3.2011

24.3.2011

Learning point

Site office orders on hot sites process to be clarified Use of excessive LADs when no/minimal network build required.

Default LADs (20/30 days) used. No specific calculation. Policy to be clarified.

ECC and LAD entered incorrectly (wrong format) FLOW system errors – orders not processed Order entered with unrealistic CRD/appointment (March – site ready until May) Why escalate jobs when not delayed or failed?

Update

Site offices on hot sites to be progressed as hot site orders.

Business improvement manager appointed Business improvement manager appointed Business improvement manager appointed Under investigation

Owner Status

Openreach Closed.

Openreach In progress Openreach In progress Openreach In progress Openreach In progress CP CP Pending Pending Information in this presentation is subject to change

Process Improvement Trial

• • • • • • Site office survey process is not working: • too many internal hand-offs • lead times >12 days • site office survey priority in planning work stacks Taking advantage of Network Investment transformation to focus field planners on site surveys Survey appointment with site representative within 1 working day Excess construction charges and line plant available dates calculated no later than the day after survey Survey lead time reduced from 6.91 (baseline before trial) to 4.35 working days.

Maximum lead time reduced from 49 days to 22 days.

25 20 15 60.00

50.00

40.00

30.00

20.00

10.00

0.00

1 10 • •

Next steps

Process refinement to enable more accurate performance measurement, continue trial.

Develop national measure to sustain process improvement 5 0 Information in this presentation is subject to change Profile of Time to Survey in Openreach 21 41 61 Cases 81 June 2010 101 121 141 April 2011 (trial)

Planning Structural Changes

Information in this presentation is subject to change

Next DWG and Feedback

Coffee

CEO Openreach

Liv Garfield

Openreach has come a long way within BT Group in 5 years

Openreach is created to stimulate competition and innovation LLU hits 1.5m milestone as Sky and Talk Talk enter the market Major price cuts in access and backhaul Significant infrastructure build, LLU, WBC Ethernet NGA 4m Homes Passed with Fibre and roll out accelerating Large scale Investment in the network

business

Announcement of ground breaking NGA plans- GEA is born FTTC launched , BT Infinity comes to market Other CP’s prepare to Go to market 1st Developers Working Group At BT Tower New Site FTTP Strategy discussed here at the Emirates

In 12 months we have created a strong fibre presence working with CP’s as Openreach accelerates the infrastructure delivery programme

• 4 million+ premises already passed 

> 400 exchanges live



> 10,000 cabinets live

• On track for 10 million premises passed by end 2012 and 66% of the Country by 2015 • Openreach’s products (GEA) have been accepted as “fit for purpose” by industry.

• > 500 customers and 12 ISPs trialling FTTP in Milton Keynes and North London • Full FTTP launch scheduled for 11/12 • DETI * deployment in Northern Ireland completes in May 2011. Cornwall deployment is well underway.

BT Infinity is establishing itself as both a consumer and a business brand

Now we want to work together with you to make Fibre Broadband a reality in all new homes and businesses

To Summarise

 We understand that you have choice of telecommunications provider  Openreach enables you to provide choice of telecommunications provider on your sites  We want to work across the industry in Partnership to build a fibre future for the UK  We want to work with you to shape that future

Leading Edge Market Insight Mel Budd

GB Construction Output - Trends and Forecast Mel Budd of Leading Edge – Construction Forecasting & Market Research Specialists 14 th April 2011

Introduction to Leading Edge

 Marketing and research consultancy, founded in 1988  Specialists in the construction sector  Our core services to clients include: – Market and sales forecasting – Market research – Marketing strategy – Customer service measurement and benchmarking  Worked with Openreach in 2010 52

Example clients – housebuilders & building contractors

 Ashe Construction  BAM Construct  Beard Ltd  Bowmer & Kirkland  Bouygues  Cosmur Construction  Costain  EPS plc  ETSU Contracts  Geoffrey Osborne           Gratte Brothers Interserve Rail Kier Group Leadbitter Miller MITIE Morgan Est plc SGB Contracts Shanks Waste Willmott Dixon 53

Construction output

Construction output back on track?

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2005 2006 All new work 2007 2008 2009 2010 All R&M work 55

The last quarter in 2010 showed first decline for over a year

20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 Output 2006 2007 2008 2009 Orders 2010 2005 - 2010 actual figures Source: ONS 56

Significant differences in growth rates by region Regional new construction output % change (current prices) - excluding infrastructure Year

2009 2010

South East (E) South East (W) Midlands & Wales South West Scotland East

-20.7

29.7

-14.8

23.2

-23.6

16.4

-17.0

10.0

-22.0

7.7

-18.7

6.7

North West North East London Total

-25.8

4.4

-28.9

4.2

-16.1

2.0

-21.3

9.9

Construction forecasts

Different types of forecasting models

Causal forecasting model Time series forecasting model Qualitative forecasting

Example of output from forecasting model

35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2000 2001

Commercial construction output - rolling 12 months actual v predicted

2002 2003 2004 2005 Predicted 2006 Actual 2007 2008 2009 2010 60

Speedy Hire sales forecasting model

R squared 0.96

Actual sales Forecast sales 20 05 Q 1 20 05 Q 2 20 05 Q 3 20 05 Q 4 20 06 Q 1 20 06 Q 2 20 06 Q 3 20 06 Q 4 20 07 Q 1 20 07 Q 2 20 07 Q 3 20 07 Q 4 20 08 Q 1 20 08 Q 2 20 08 Q 3 20 08 Q 4 20 09 Q 1 61

One dominating factor in construction sector forecasts Government Department

Communities & Local Government (incl HCA) Education Health

2009 /10

9.4

7.5

5.4

2014 / 15 % change

2.0

3.4

4.6

-78.7

-54.7

-14.8

New and R&M (repair and maintenance) construction output

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2005 2006 2007 All new work 2008 Source: ONS and Leading Edge 2009 2010 2011 2012 2013 2014 All R&M work 2015 63 , , , , 3 0 , , 5 0 , 7 0 0 0 2 0

Output in 2011 is forecast to be 2.3% lower than 2010 Historic and forecast construction output by sector % change - constant 2005 prices

Housing - public Housing - private Housing - total Infrastructure Public Industrial Commercial TOTAL NEW WORK R&M housing - public R&M housing - private TOTAL R&M - housing TOTAL R&M - non housing TOTAL R&M TOTAL ALL WORK

2009 Act

5.6

-25.0

-20.2

14.5

33.0

-31.5

-23.5

-12.4

-3.6

-11.9

-8.9

-10.6

-9.8

-11.4

2010 Act

47.8

10.4

18.2

22.2

32.9

13.9

-0.3

13.9

0.5

3.8

2.5

-12.9

-6.1

6.4

2011 F'cast

-19.6

5.4

-1.1

2.7

-17.4

0.6

1.8

-2.6

-13.4

3.0

-3.2

-0.2

-1.7

-2.3

2012 F'cast

-23.5

5.5

-0.6

1.7

-17.4

7.6

4.3

-0.8

-5.7

1.9

-0.6

0.6

0.0

-0.5

2013 F'cast

-11.5

5.2

2.5

0.8

-8.9

13.2

5.8

2.5

-6.0

2.8

0.0

2.3

1.2

2.0

2014 F'cast

-8.7

5.7

3.7

0.8

-7.3

9.3

5.8

3.0

-4.3

2.7

0.6

1.7

1.2

2.4

2015 F'cast

0.0

6.0

5.3

-0.8

-5.3

4.3

2.9

2.0

0.0

1.8

1.3

1.7

1.5

1.9

Source: ONS and Leading Edge 64

Some sectors will see growth on the 2007 peak Historic and forecast construction output by sector £000m - constant 2005 prices

2007 Act

2.9

18.0

20.9

7.0

6.4

5.6

29.4

69.3

6.2

10.8

16.9

22.0

38.9

108.3

2.4

2008 Act

2.7

14.6

17.3

8.1

7.5

4.5

30.0

67.3

6.3

11.2

17.5

22.3

39.7

107.1

-1.1

2009 Act

2.9

10.9

13.8

9.2

9.9

3.1

22.9

59.0

6.1

9.8

15.9

19.9

35.8

94.8

-11.4

2010 Act

4.2

12.1

16.3

11.3

13.2

3.5

22.9

67.2

6.1

10.2

16.3

17.3

33.7

100.8

6.4

2011 F'cast

3.4

12.7

16.1

11.6

10.9

3.5

23.3

65.4

5.3

10.5

15.8

17.3

33.1

98.5

-2.3

2012 F'cast

2.6

13.4

16.0

11.8

9.0

3.8

24.3

64.9

5.0

10.7

15.7

17.4

33.1

98.0

-0.5

Residential – housing and flat development trends Comparison of flat and housing completions - England only

110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2002 2003 2004 2005 2006 Houses 2007 2008 2009 2010 2011 2012 Flats 2013 2014 2015 Source: DCLG & Leading Edge 66

Residential and offices will take a greater share of output New construction output £m current prices - key sectors Market

Residential Offices Retail Education Industrial Leisure / Entertainment Health

% of total market - 2010 (actual) % of total market - 2015 (forecast)

33.9

12.7

39.0

16.0

10.6

17.8

6.4

10.4

8.1

12.2

9.5

8.7

8.3

6.3

Source: ONS & Leading Edge 67

Growth

Our view on the next 2 years in the construction sector

 It ’ s going to get worse before it gets better BUT  Companies focussing on the right sectors and regions can still see revenue growth, but margins will be tight How does this compare with your view / experience?

Leading Edge Delivering a better understanding of customers and markets www.lead-edge.co.uk

Developers Working Group

Transcript Developers Working Group