BT 2012 Annual Report Download - page 21

Business
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Fibre Voice Access (FVA)
Openreach is introducing a voice service over fibre, FVA. This will
allow CPs to provide voice services over fibre with similar levels of
functionality to copper voice services. Our fibre broadband network can
also deliver IPTV services as we have launched a multicast capability.
This allows ‘triple play’ providers to prioritise broadcast TV traffic over
other internet traffic and to transmit broadcast signals efficiently to
their customers.
Passive Infrastructure Access (PIA)
Our PIA products allow CPs to rent space in our ducts or on our
telegraph poles. CPs can use this space for their own fibres, as an
alternative to buying fibre-based broadband from us.
Wholesale Ethernet
Ethernet is a widely-deployed network transmission technology that
can transport large amounts of any type of data in a fast, assured and
highly cost-effective manner. We offer a wide choice of high bandwidth
Ethernet services designed to help CPs extend their networks and
deliver a range of high quality services to their customers. Access
connection speeds range from 2Mbps to 10Gbps.
Our Wholesale Ethernet is certified as meeting the mandatory
Government security assurance levels required to support PSN
opportunities in the UK.
Capacity, call-based products and IP Exchange
We sell a wide range of capacity and call-based products and
services, both regulated and unregulated, using both traditional
andIPtechnologies.
IP Exchange is our global IP interoperability service allowing IP network
operators to interconnect with each other as well as with fixed telecoms
operators and MNOs.
Private and partial private circuits
We are a major provider of traditional data circuits in the UK, which
help our customers to extend the reach of their services and act as infill
solutions for their own networks.
Transit
We provide transit voice services across the UK and internationally. This
is a low-margin product where volumes are declining as CPs and MNOs
interconnect directly with each other.
White label managed services
Our white label managed services business helps customers with limited
or no infrastructure to offer telecoms services such as telephony and
broadband without the need to make large investments. We provide a
complete service, from accepting and processing new orders through to
customer service and end-user billing.
Mobility and wi-fi
Our Mobile Ethernet Access Service (MEAS) is now available at more
than 13,000 mobile base stations sites, an increase of around 3,800 in
the year, reinforcing our market leading position. Mobile operators can
also boost the capacity of their services using our more than 4m wi-fi
UK hot spots.
Broadcasting services
Our Global Media Network provides access to all the key locations
around the world where broadcast content is either created or
distributed. We are strengthening our digital content capabilities by
establishing a series of strategic alliances to expand our global media
footprint. In the UK we provide TV outside broadcast services from our
network of around 160 sports and news locations. Our UK media MPLS
network also underpins all digital terrestrial TV delivery in the UK.
Regulation
The efficient supply of telecoms services is so
important in the modern world that the industry
sometimes needs to be controlled and monitored. In
the UK, and in the majority of countries around the
world where we operate, these services are subject to
regulation by governmental and independent non-
governmental bodies. We explain below what this
means for us.
European Union (EU) regulation
In EU countries electronic communications services are governed
by a number of European directives and regulations. These
provide a Europe-wide framework for the regulation of electronic
communications services which includes both fixed and mobile voice
services, broadband, cable TV and satellite TV. The way in which the
existing directives have been implemented varies from country to
country. They include rules about things like access and interconnection,
universal service, and how often national regulators should review
markets for significant market power (SMP). They also cover matters
such as how SMP remedies like price controls should be set. They
require regulators to consult with the European Commission on any
price control decisions before they are finalised, to make sure they are
consistent with the European regulations.
UK Regulation
The UK telecoms industry is regulated through various European
directives, the Communications Act 2003 (the Communications
Act), Ofcom (the UK’s independent regulator), and other regulations
andrecommendations.
The Communications Act
The Communications Act gives Ofcom legal powers and sets out the
legal requirements for how electronic communications services should
be regulated in the UK. It includes the conditions imposed by the
European directives. The Government is currently reviewing our sector’s
regulatory regime which will result in a new framework in 2015. The
review is focusing on how growth and innovation can be encouraged
and on removing unnecessary regulation and barriers to growth.
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