Supplier of Last Resort Process Review

1
Supplier of Last ResortProcess Review
Ben Shaw (Carphone Warehouse) Michael Eagle
(FCS) Nick Griffiths (Openreach) Stephen Greene
(Openreach)
2
The Scenarios
3
Scenario 1
Openreach

• Scenario 1
• Openreach has a contract with a CP
• No resellers are identified in the supply chain
• Failure between Openreach and the CP

CP
EU
EU
EU
EU End User CP Communications Provider RS
Reseller
Contractual Relationship
Contract Failure Point
4
Scenario 2
Openreach

• Scenario 2
• Openreach has a contract with a CP
• Resellers are identified in the supply chain
• CP may also have direct contracted end users
• Contract failure occurs between Openreach and
  the CP

CP
RS 2
RS 1
EU
EU
EU
EU End User CP Communications Provider RS
Reseller
Contractual Relationship
Contract Failure Point
5
Scenario 3
Openreach

• Scenario 3
• CP has a contract with a reseller
• Contract failure occurs between CP and reseller
• Openreach would not be aware of the failure but
  will affect end users equally to scenario 1 and 2

CP
RS 1
RS 2
EU
EU
EU
EU End User CP Communications Provider RS
Reseller
Contractual Relationship
Contract Failure Point
6
The Current Process
7
The current Process

• There is an industry agreed process for scenario
  1 and 2 only at this time (i.e. where the is
  contract failure between Openreach and a CP)
• In this process, Openreach issues a breach notice
  as per the contract when non payment occurs
• Following expiry of the breach, Openreach then
• Suspends access to the gateway for new
  provide/transfer orders, stopping SPId on SPG/EMP
• Passes on a list of CLI data to BT Retail to act
  as Supplier of Last Resort
• BTR attempts to call each CLI 3 times
• Following this, BTR notify OR and remaining lines
  without pending transfer orders are ceased by OR
• Throughout this process regular dialogue takes
  place where possible between Openreach and the CP

8
The current information flow for SOLR
Openreach

• Openreach then passes on a list of CLI data to BT
  Retail to act as Supplier of Last Resort
• BTR attempts to contact each CLI 3 times
• BTR notify Openreach
• Remaining lines without pending transfer orders
  are ceased

CLI List
BT Retail
Process Complete
Openreach
9
Data Available
10
Data Available that could assist this process

• Timely and Simultaneous access to all data is
  required
• Manipulation and Analysis required to link
  disparate data and support action plan formation

11
Legal Considerations
12
Legal Considerations

• Data Protection
• Undertakings
• Contract Breach vs when the SOLR process starts
• Each party must have authority to provide the
  relevant information

13
Potential Improvements
14
Potential Improvements

• Use of a 3rd party to gather and manipulate data
• The party initiating the SOLR process would
  contact the 3rd party.
• This 3rd party would then
• be required to collect the relevant data,
• manipulate it and
• identify the scenario involved
• Initiate contact to suppliers on the supplier
  panel who would commence contact with affected
  parties

15
Possible Information Flow
When the conditions for the new SOLR process to
be initiated are met, the affected party
(Openreach/CP) contacts the agreed 3rd party The
3rd party then contacts the relevant data source
organisations to get the information required
e.g. RID database (OFCOM), CLI List (Openreach)
etc.
Openreach or CP
Openreach
3rd Party
OFCOM
Others
16
Possible Information Flow
Openreach or CP
The 3rd party then manipulates the disparate data
sources to identify the scenario which is taking
place. (eg, reseller, CP, or end users
affected) The resultant reseller or end user
contact information is then passed on as required
to a supplier panel, or to a nominated CP, in
order for them to contact the affected party. OR
or CP initiate cessation when process completed.
Openreach
3rd Party
OFCOM
Others
Nominated CP BTR as per current process, or
other CP
Preferred Wholesalers?
Resellers
End Users
17
Identified Issues
18
Challenges which Industry needs to fix

• Need a formal agreement of when the SOLR process
  can be started and how to communicate with the
  affected party that is in breach/financial
  difficulties
• Need agreed timescales for how the 3rd party
  would be expected to react
• Define a panel to help resellers find
  alternatives where their business is affected due
  to a contract breach.
• Identifying resellers cannot achieve today due
  to poor discipline on RID contact data.
• Discipline of RID usage is poor on SPG
• Need to agree who is going to contact end users
  when their CP is affected
• Confirm all information suppliers can give the
  data based on their legal and regulatory
  obligations and can commit to the timescales
• No easy way to identify longer supply chains in
  which RID data becomes more unreliable.