developers working group 14 april 2011. welcome domestics rest rooms fire alarm (stewards will...
TRANSCRIPT
Developers Working Group
14 April 2011
Welcome
DomesticsRest rooms
Fire alarm (Stewards will direct)
Smoking
Liv Garfield - CEO Openreach
Agenda
1.15pm Builders and Developers Portal
1.30pm SOD Payment Updates
2.00pm Building Policy Updates and New Sites Fibre Kit
2.30pm New Sites Product Roadmap
3.00pm NSRs and Site Office Lines
3.30pm Coffee break
3.50pm Next meeting topics
4.00pm Leading Edge Marketing
4.30pm Liv Garfield Openreach CEO
5.00pm 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
163
The only element that is Chargeable at this stage is the network between the premise and the existing network
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 x £3,400
So for large schemes - it is unlikely that a charge might be raised
On site cost, also related to SOD payment
163
SOD payment support developers civils onsite costsOpenreach provides appropriate materials / stores as per contractDeveloper 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
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 - £135
• Scotland -£128
• North England - £118
• All flats across the country were - £47
• Payment to be made for 4 or more plots only.
• Payment was done when contract was ‘’complete’’ :
SOD payment levels from 1st April 2011
• London - £151 per Single Dwelling Unit
• Outside London - £140
• All flats across the country were - £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
163
The only element that is Chargeable at this stage is the network between the site boundary and the existing network
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
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…)
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?
Adobe Acrobat Document
Information in this presentation is subject to change
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 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
Plot Call-Off 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 RequestWe 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 Learning point Update Owner Status
24.3.2011Site office orders on hot sites process to be clarified
Site offices on hot sites to be progressed as hot site orders.
Openreach Closed.
24.3.2011Use of excessive LADs when no/minimal network build required.
Business improvement manager appointed Openreach In progress
24.3.2011Default LADs (20/30 days) used. No specific calculation. Policy to be clarified.
Business improvement manager appointed Openreach In progress
24.3.2011ECC and LAD entered incorrectly (wrong format)
Business improvement manager appointedOpenreach In progress
24.3.2011FLOW system errors – orders not processed
Under investigation Openreach In progress
24.3.2011Order entered with unrealistic CRD/appointment (March – site ready until May)
CP Pending
24.3.2011Why escalate jobs when not delayed or failed?
CP 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.
Next steps• Process refinement to enable more accurate
performance measurement, continue trial.• Develop national measure to sustain process
improvement
Profile of Time to Survey in Openreach
0.00
10.00
20.00
30.00
40.00
50.00
60.00
1 21 41 61 81 101 121 141
Cases
Da
ys
Profile of Time to Survey in Openreach
0.00
10.00
20.00
30.00
40.00
50.00
60.00
1 21 41 61 81 101 121 141
Cases
Da
ys
June 2010
1 11 21 31 41 51 61 71 81 91 1011111211311411511610
5
10
15
20
25
April 2011 (trial)Information in this presentation is subject to change
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
A better business
2006 2007 2008 2009 2010 2011 NOW
Openreach is created to stimulate competition and innovation
Large scale Investment in the network
LLU hits 1.5m milestone as Sky and Talk Talk enter the market
Announcement of ground breaking NGA plans- GEA is born
Major price cuts in access and backhaul
Significant infrastructure build, LLU, WBC Ethernet NGA
New Site FTTPStrategy discussed here at the Emirates
4m Homes Passed with Fibre and roll out accelerating
FTTC launched , BT Infinity comes to marketOther CP’s prepare toGo to market
1st DevelopersWorking GroupAt BT Tower
In 12 months we have created a strong fibre presence working with CP’s as Openreach accelerates the infrastructure delivery programme
BT Infinity is establishing itself as both a consumer and a business brand
• 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.
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
51
GB Construction Output - Trends and Forecast
Mel Budd of Leading Edge –
Construction Forecasting & Market Research Specialists
14th April 2011
52
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
53
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
54
Construction output
55
Construction output back on track?
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2005 2006 2007 2008 2009 2010
Out
put
valu
e in
£M
(20
05 p
rice
s)
All new work All R&M work
56
The last quarter in 2010 showed first decline for over a year
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
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 2006 2007 2008 2009 2010
Co
ns
tru
cti
on
ou
tpu
t &
ord
ers
£m
(2
00
5 p
ric
es
)
Output Orders
2005 - 2010 actual figures
Source: ONS
57
Significant differences in growth rates by region
YearSouth
East (E)South
East (W)Midlands & Wales
South West Scotland East
North West
North East London Total
2009 -20.7 -14.8 -23.6 -17.0 -22.0 -18.7 -25.8 -28.9 -16.1 -21.3
2010 29.7 23.2 16.4 10.0 7.7 6.7 4.4 4.2 2.0 9.9
Regional new construction output % change (current prices) - excluding infrastructure
58
Construction forecasts
59
Different types of forecasting models
Causal forecasting model
Time series forecasting model
Qualitative forecasting
60
Example of output from forecasting model
Commercial construction output - rolling 12 months actual v predicted
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
£m C
on
stan
t 200
5 p
rice
s
Predicted Actual
61
Speedy Hire sales forecasting model
0
1 0 ,0 0 0 ,0 0 0
2 0 ,0 0 0 ,0 0 0
3 0 ,0 0 0 ,0 0 0
4 0 ,0 0 0 ,0 0 0
5 0 ,0 0 0 ,0 0 0
6 0 ,0 0 0 ,0 0 0
7 0 ,0 0 0 ,0 0 0
Actual sales
Forecast sales
R squared 0.96
62
One dominating factor in construction sector forecasts
Government Department 2009 /10 2014 / 15 % change
Communities & Local Government (incl HCA) 9.4 2.0 -78.7
Education 7.5 3.4 -54.7
Health 5.4 4.6 -14.8
63
New and R&M (repair and maintenance) construction output
0
10,0
20,0
30,0
40,0
50,0
60,0
70,0 2
0
OAll new work All R&M work
Source: ONS and Leading Edge
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Out
put
valu
e in
£M
(20
05 p
rice
s)
All new work All R&M work
64
Output in 2011 is forecast to be 2.3% lower than 2010
2009 2010 2011 2012 2013 2014 2015Act Act F'cast F'cast F'cast F'cast F'cast
Housing - public 5.6 47.8 -19.6 -23.5 -11.5 -8.7 0.0
Housing - private -25.0 10.4 5.4 5.5 5.2 5.7 6.0
Housing - total -20.2 18.2 -1.1 -0.6 2.5 3.7 5.3
Infrastructure 14.5 22.2 2.7 1.7 0.8 0.8 -0.8
Public 33.0 32.9 -17.4 -17.4 -8.9 -7.3 -5.3
Industrial -31.5 13.9 0.6 7.6 13.2 9.3 4.3
Commercial -23.5 -0.3 1.8 4.3 5.8 5.8 2.9
TOTAL NEW WORK -12.4 13.9 -2.6 -0.8 2.5 3.0 2.0
R&M housing - public -3.6 0.5 -13.4 -5.7 -6.0 -4.3 0.0
R&M housing - private -11.9 3.8 3.0 1.9 2.8 2.7 1.8
TOTAL R&M - housing -8.9 2.5 -3.2 -0.6 0.0 0.6 1.3
TOTAL R&M - non housing -10.6 -12.9 -0.2 0.6 2.3 1.7 1.7
TOTAL R&M -9.8 -6.1 -1.7 0.0 1.2 1.2 1.5
TOTAL ALL WORK -11.4 6.4 -2.3 -0.5 2.0 2.4 1.9
Historic and forecast construction output by sector % change - constant 2005 prices
Source: ONS and Leading Edge
65
Some sectors will see growth on the 2007 peak
2007 2008 2009 2010 2011 2012Act Act Act Act F'cast F'cast
Housing - public 2.9 2.7 2.9 4.2 3.4 2.6Housing - private 18.0 14.6 10.9 12.1 12.7 13.4Housing - total 20.9 17.3 13.8 16.3 16.1 16.0Infrastructure 7.0 8.1 9.2 11.3 11.6 11.8Public 6.4 7.5 9.9 13.2 10.9 9.0Industrial 5.6 4.5 3.1 3.5 3.5 3.8Commercial 29.4 30.0 22.9 22.9 23.3 24.3TOTAL NEW WORK 69.3 67.3 59.0 67.2 65.4 64.9R&M housing - public 6.2 6.3 6.1 6.1 5.3 5.0R&M housing - private 10.8 11.2 9.8 10.2 10.5 10.7TOTAL R&M - housing 16.9 17.5 15.9 16.3 15.8 15.7TOTAL R&M - non housing 22.0 22.3 19.9 17.3 17.3 17.4TOTAL R&M 38.9 39.7 35.8 33.7 33.1 33.1TOTAL ALL WORK 108.3 107.1 94.8 100.8 98.5 98.0% change - all work 2.4 -1.1 -11.4 6.4 -2.3 -0.5
Historic and forecast construction output by sector £000m - constant 2005 prices
Source: ONS and Leading Edge
66
Residential – housing and flat development trends
Comparison of flat and housing completions - England only
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Co
mp
leti
on
s
Houses Flats
Source: DCLG & Leading Edge
67
Residential and offices will take a greater share of output
Source: ONS & Leading Edge
Market% of total market -
2010 (actual)% of total market -
2015 (forecast) Growth
Residential 33.9 39.0
Offices 12.7 16.0
Retail 10.6 12.2
Education 17.8 9.5
Industrial 6.4 8.7
Leisure / Entertainment 10.4 8.3
Health 8.1 6.3
New construction output £m current prices - key sectors
68
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?
69
Leading Edge -
Delivering a better understanding of customers and markets
www.lead-edge.co.uk