Broadband News

PIA pricing to reduce outside of BDUK areas

Physical Infrastructure Access is something that has been debated and regulated for sometime in the UK, with Openreach setting prices that then competitors and lobbyists complain are too high, regulation kicks in and prices are set lower, but often not as low as some would like. The latest round of changes are due to a Competition Commission investigation in 2012 and Openreach has now given its required 90 notice for price changes.

The price changes affect the cost of ducts and ancillary services and are the result of Regulatory Asset Valuation (RAV) Adjustment and should mean that for infrastructure access in the cities prices will drop, for example the price for 'Facility in Spine duct per metre - single bore' should drop from 86p to 60p per metre in September 2013. The current PIA pricelist has both sets of pricing where applicable.

PIA allows competing broadband providers to share the Openreach ducts, pavement chambers of other network elements on an item by item or metre by metre basis. This becomes important in cities and larger towns as it can often be the case that the only sensible route across a road junction is via the Openreach ducting, or an expensive and intrusive dig to add your own ducting.

A common moan about PIA is that it cannot be used for business access, but the restriction on business use does not stop the deployment of PIA to serve a number of businesses and homes but rather to stop PIA being used to provide national fibre backbone infrastructure or for point to point links between two data centres for example.

Comments

"From 16/9 /2013, the distinction between BDUK and Non BDUK regional prices was removed and a single price now applies." so non-BDUK projects will be charged the same as BDUK projects. From the title I thought it was regional but apparently not.

  • herdwick
  • over 4 years ago

"A common moan about PIA is that it cannot be used for business access, but the restriction on business use does not stop the deployment of PIA to serve a number of businesses ...." - can you go over that again, Andrew?

  • mikejp
  • over 4 years ago

PIA can be used to provide NGA services to homes and businesses from an exchange. It can't be used to run leased lines to businesses or to interconnect beyond the exchange.

The legal powers for PIA are around the SMP in the local access market, not in the leased line or backhaul markets.

  • herdwick
  • over 4 years ago

So, an ISP - Talk Talk for example, can freely provide an NGA connection to any of their business customers via a PIA fibre they have dropped into the duct?

  • mikejp
  • over 4 years ago

If talk talk built an NGA network in an area using PIA then business customers as well as residential could connect to it, as I understand it. But not a mobile phone base station.

By "NGA services" we're talking contended end-user type services.

  • herdwick
  • over 4 years ago

The annoying thing is that the EU communications framework allows OFCOM to open up networks irrespective of SMP, however BIS has decided not apply the power and isn't going to review this until 2017...

  • themanstan
  • over 4 years ago

The cost of PIA isn't the problem, its the excess construction charges that stop anyone using them. Its in the small print.

  • cyberdoyle
  • over 4 years ago

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