The regulator found that although Openreach narrowly failed to comply with three out of its 35 QoS standards between April 2022 and March 2023, it wouldn't impose a fine or other penalty for the breaches.
BT is required to meet specified QoS performance standards across the leased lines access, interexchange connectivity and wholesale local access markets. These standards are implemented under the SMP Conditions imposed on BT under the Whoelsale Fixed Telecoms Market Review (WFTMR). Openreach was appointed by BT as an agent to manage and operate its network business, to which these standards apply.
Ofcom found that BT, through Openreach, contravened SMP Condition 10.1 and the QoS Standards set out in volume seven of WFTMR, by failing to meet three of the QoS obligations.
The regulator said that mean time to provide completed orders was 38.4 days for relevant ethernet services and dark fibre access in certain leased lines access and certain interexchange connectivity markets (above the no more than 38-day standard).
Ofcom found that Openreach completed 93.8 per cent of provisions for MPF and GEA-FTTC services on time in London and the South East (falling below the 94 per cent standard); and it completed 84.2 per cent of repairs for faults subject to service management level 2 on time in Wales and Midlands (falling below the 85 per cent standard).
After taking account the situation which affected performance in 2022/2023, and the steps taken by Openreach to comply with BT's QoS obligations under these circumstances, Ofcom said that it wouldn’t impose a financial penalty or any other remedy in relation to the breaches.
In reaching this decision, Ofcom also considered the fact that of the three standards was failed by a narrow margin; and the 2022/2023 regulatory period included eight days of industrial action (IA) by the Communications Workers Union. It added that Openreach calculated the impact of the IA on its performance in 2022/23 to be larger than the margins with which it failed each of the three standards; and said the breach was not flagrant, with Openreach demonstrating it made considerable efforts to meet the performance requirements.
Ofcom concluded that a penalty or another remedy would not have, in this case, been appropriate or proportionate to the contraventions.
Ofcom said in a statement, "Ofcom takes compliance with QoS standards seriously, as consumer harm can result when service levels fall below the standards that are expected. It is important that communications providers take compliance with their regulatory responsibilities seriously and that when things go wrong, they recognise this and act quickly and responsibly to remedy any harm that has been caused and that they allow Ofcom to investigate, as appropriate."
An Openreach spokesperson said, "We respect Ofcom's decision and agree with the reasons given. More generally, we're proud that our service performance has improved consistently over recent years, to the point where customer satisfaction has never been higher. We've invested heavily to support our customers, with our Net Promoter and Trustpilot ratings now at record levels. There are always ways to improve though, and we're working hard to become even better."