Bringing it all together
BT Group plc
Detailed Attribution Methods (DAM)
2010
28 July 2010
Detailed Attribution Methods (DAM) – Contents
CONTENTS
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.1 Regulatory Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 The Accounting Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 The Detailed Attribution Methods (DAM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4 Guide to using the DAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
2.1 BT Group and regulatory reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 Financial Accounting and Accounting Separation (AS) Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2.1 Feeder systems and reporting hierarchy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2.2 Attribution of BT’s financial information to Markets and Services . . . . . . . . . . . . . . . . . . . . . . . 9
2.2.3 Scope of Document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
3 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Basis of preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
3.1.1 Source of transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
3.1.2 Gross Adjusted Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
3.2 Costing principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.2.1 Cost causality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
3.2.2 Objectivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.2.3 Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
3.3 Conceptual model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
3.3.1 Attribution of General Ledger/F8/OUCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
3.3.2 Attribution of Initial Intermediate Activity Groups (Initial IAGs) . . . . . . . . . . . . . . . . . . . . . . . 15
3.3.3 Attribution of Support Plant Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
3.3.4 Attribution of Plant Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
3.3.5 Attribution/Charging of Network Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
3.3.6 Attribution of ‘own use’ of Network Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
3.3.7 Products and Product Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
3.3.8 Current Cost Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
3.4 System process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
3.4.1 Key Interfaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
3.4.2 System processing levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
3.4.3 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
3.4.4 Self Accounting Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
3.5 Transfer charges as a basis for cost attribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
3.6 Use of System Generated Bases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
3.6.1 Attributing costs and capital employed using turnover information. . . . . . . . . . . . . . . . . . . .24
3.6.2 Apportioned to specific cost centres on the basis of previously apportioned
costs pan-divisionally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
3.6.3 Apportioned on the basis of pay costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
3.7 Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
3.7.1 Sector Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
3.7.1.1 Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
3.7.1.2 Operating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
3.7.1.3 Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
3.7.1.4 Current Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
3.7.2 Externally reported SMP sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
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Detailed Attribution Methods (DAM) – Contents
CONTENTS
4 Base Methodology Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
5 Activity Group Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201
6 Plant Group Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
7 Network Component Allocations - Network Charging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329
7.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
7.1.1 Wholesale Markets Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
7.1.2 Wholesale Market Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
7.1.3 Network Component Volumes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
7.1.3.1 Conveyance Products and Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
7.1.3.2 Transmission Volumes (including Partial Private Circuit components) . . . . . . . . . . . . 330
7.1.3.3 Other volumes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
7.1.3.4 Data sources for Volumes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
7.1.4 Conveyance Wholesale Service Volumes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
7.2 Wholesale Markets Revenue – Cost based charging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
7.3. Wholesale Markets Revenue - Charging for Wholesale Services . . . . . . . . . . . . . . . . . . . . . . . . . 333
7.3.1 Partial Private Circuits (PPCs) – Calculation of internal and external reported revenues . . . 333
7.3.2 Calculation of PPC revenue reported in the Regulatory Financial Statements (RFS) . . . . . . 335
7.3.3 Interconnect Specific Basket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
7.4. Wholesale Significant Market Power (SMP) Financial Statement Preparation . . . . . . . . . . . . . 337
7.4.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
7.4.2 Network Activity Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
7.4.3 Calculation of FAC based on Component Costs and Usage Factors . . . . . . . . . . . . . . . . . . . 337
7.4.3.1 Component Usage Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
7.5 Components charged on a cost basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
7.6 Component to Wholesale Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342
7.7 Wholesale Service to Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
7.8 Route and Call Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
7.8.1 Route Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
8 Wholesale Service and Retail Product SMP Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397
8.1 Wholesale Market Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397
8.2 Wholesale Service Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398
8.3 Retail Market Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445
9 Data Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .447
Appendix A - Network Overview Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491
Appendix B - SDH Core Network Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .493
Appendix C - Bearer Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .495
Appendix D - Circuit Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .497
Appendix E - Key Destinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .499
Appendix F – Sector Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .657
Appendix G - Line of Business Organisational Unit Codes (OUCs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .787
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Section 1 Introduction – Detailed Attribution Methods (DAM)
1 Introduction
Electronic communications regulation in the UK is conducted within a framework set out in various European Union (EU) directives,
regulations and recommendations. The framework is currently under review and revised directives are expected to take effect during the first
half of 2011.
Ofcom (the Office of Communications) was set up under the Office of Communications Act 2002 (replacing the previous telecommunications
regulator, Oftel) to provide a single, seamless approach to regulating the entire communications market. Ofcom regulation takes the form
of sets of conditions laid down under the Communications Act 2003 (Communications Act), and directions under these conditions. Some
conditions apply to all providers of electronic communications networks and services; others apply to individual providers, which Ofcom has
designated as universal service providers or having significant market power (SMP) in a particular market.
References below and elsewhere in this document, to both Oftel and Ofcom (or, the Regulator) should therefore be read in this context.
1.1 Regulatory Reporting Requirements
The Communications Act identifies three types of regulatory financial reporting obligations that Ofcom can impose on dominant providers.
These are:
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Wholesale cost accounting;
Retail cost accounting; and
Accounting separation.
BT’s regulatory financial reporting obligations are ex ante obligations that will be imposed under Communications Act Sections 87(9) to
81(11) for wholesale cost accounting, 91(5) and 91(6) for retail cost accounting and 87(7) and 87(8) for accounting separation. The
regulatory financial reporting obligations are being imposed by Ofcom to monitor and enforce other ex ante obligations, e.g. for cost
orientation, cost recovery, price controls and no undue discrimination. Regulatory financial reporting requires BT to demonstrate compliance
with these obligations in certain SMP markets.
These cost accounting and accounting separation requirements are detailed in the Final Statement and Notification in ‘The regulatory
financial reporting obligations on BT and Kingston Communications’, which was published on 22 July 2004 as amended by the Final
Statements and Notifications entitled:
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“Changes to BT’s regulatory financial reporting framework” issued by Ofcom on 31 August 2005;
“Changes to BT’s regulatory financial reporting and audit requirements” issued on 16 August 2006;
“Changes to BT’s regulatory financial reporting and audit requirements” issued on 30 May 2007;
“Changes to BT’s 2007/08 regulatory financial statements” issued on 26 June 2008;
“Changes to BT and KCOM’s regulatory financial reporting – 2008/09 update” issued on 15 June 2009; and
“Changes to BT and KCOM’s regulatory and financial reporting 2009/10 update” issued on 4 June 2010.
(Together “the Final Statements and Notifications”).
Further information on BT’s regulatory reporting requirements, SMP markets and financial reporting conditions are detailed in BT’s Primary
Accounting Documents.
1.2 The Accounting Documents
The Regulatory Financial Statements (RFS) are prepared in accordance with the Accounting Documents, where the Accounting Documents
means together the Primary Accounting Documents (PAD), the Secondary Accounting Documents and the Wholesale Catalogue.
The PAD sets out the framework under which the statements are to be prepared.
The Secondary Accounting Documents set out more detailed descriptions of the policies, methodologies, systems, processes and procedures
for deriving or calculating the costs, revenues, assets and liabilities underlying the RFS and comprise the following three documents:
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The Detailed Attribution Methods (DAM) - this describe the processes used to derive the fully allocated costs of BT’s network
components, SMP Markets, Technical Areas and Disaggregated Activities (as applicable).
The Detailed Valuation Methodology (DVM) - this describes the methods used to derive current cost valuations.
The Long Run Incremental Cost Model: Relationship and Parameters (LRIC) - this describes the calculation of the long run incremental
costs for network elements.
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Section 1 Introduction – Detailed Attribution Methods (DAM)
The Wholesale Catalogue identifies and describes the wholesale services included in the Wholesale SMP markets and technical areas for which
BT has a regulatory financial reporting obligation.
1.3 The Detailed Attribution Methods (DAM)
The purpose of the DAM is to:
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Describe the costing principles used by BT to prepare the RFS on a fully allocated cost basis.
Describe the methods used in the Accounting Separation process to attribute revenue, costs and capital employed to the Markets,
Technical Areas and Disaggregated Activities in the RFS.
Outline the systems and processes used by BT to support Accounting Separation.
Outline the methods for transfer charging from the BT Wholesale Markets to BT Retail Residual.
Outline the methods for preparing the Statement of Costs on a Current Cost Basis and the Statements of Costs and Charges for Internal
and External Wholesale Services.
The DAM provides detailed and granular descriptions of the procedures used to apply the principles set out in the Primary Accounting
Documents (PADs).
The DAM is structured in sections explaining the different stages of the Accounting Separation process. Accounting Separation is the
attribution of costs, revenues and capital employed to the defined Markets and Disaggregated Activities of BT.
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Section 1 - Provides an introduction and guide to using the DAM.
Section 2 - Provides an overview of the BT business, describes how the underlying financial transactions supporting the business
activities and functions recorded in the financial ledgers are grouped to provide the starting costs, revenues, assets and liabilities used
by the Accounting Separation (AS) system. This provides the starting cost pools (‘F8 items’), grouped and presented by different areas
of BT’s business (sectors). The AS system attributes the costs, revenues, assets and liabilities to defined products and components which
aggregate into the Markets, Technical Areas and Disaggregated Activities to create a view of BT’s financial position and results against
SMP Markets.
Section 3 - Provides an overview of the AS solution, in terms of the underlying costing principles and the conceptual flow of costs and
revenues from source financial systems to the separated Markets, Technical Areas and Disaggregated Activities to create a view of BT. It
sets out the main types of cost pool used by the solution, in terms of F8 items, activity groups, plant groups, network components and
products, and explains the flow of costs and revenues across the different types of cost pool.
The DAM also describes the system and processes, which underpin the flow of costs and revenues in the Accounting Separation process.
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Section 3.7 - Shows, on a sector by sector basis, how source ledger costs, grouped into F8 codes, are attributed in the AS system. It
provides an overview description of each sector, a summary table setting out the F8 items contained in the sector and a high level
summary of the attribution methodology (Base Methodology) applicable to each F8 item is provided in Appendix F.
Section 4 – Base Methodology Dictionary provides a complete description of the attribution base methodologies referred to in the
sector tables (Appendix F) for each given base methodology, based on the current year profit and loss accounts and closing balance
sheet. In the majority of cases opening balance sheet destinations would not be materially different. Where a methodology applies to
the opening balance sheet only, the key destinations will still be shown (see Appendix E).
Section 5 - Provides an overview description of activity groups, followed by a table setting out the Activity Groups contained in the
DAM. The table shows, for each Activity Group, a high level summary of the methodology that is applied to attribute the costs to the
next cost pool (e.g. plant groups, products) in the AS system. The main costs pool destinations can be found in the Key Destination
tables (Appendix E). The Activity Group Dictionary provides a complete description of the attribution methodologies applicable to the
Activity Groups based on the current year profit and loss accounts and closing balance sheet. In the majority of cases the opening
balance sheet destinations would not be materially different.
Section 6 - Sets out the Plant Groups used in the AS system. The attribution table showing a high level summary of the base
methodology used for each Plant Group follows the overview of the Plant Groups. The Plant Group Dictionary sets out the detailed
descriptions of the Plant Group attribution methodologies. The main costs pool destinations can be found in the Appendix E Key
Destinations table.
Section 7 - Sets out an overview of Network Components, followed by attribution tables. These explain the attribution of Network
Components and Standard Services to final products in the AS system.
Section 8 - Provides a description of the services as defined in the AS system, which are grouped into the different regulated Markets
and Services required for regulatory reporting.
Section 9 - Provides a dictionary of data sources.
Appendix A - Shows the Network overview diagram.
Appendix B - Shows the SDH Core Network Detail diagram.
Section 1 Introduction – Detailed Attribution Methods (DAM)
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Appendix C - Shows the Bearer diagram.
Appendix D - Shows the Circuit diagram.
Appendix E - The Key Destinations Table identifies the key destinations of all the bases described in sections 4-6. This is based on the
current year Profit and Loss account and closing Balance Sheet. In the majority of cases the opening balance destinations would not be
materially different.
Appendix F - The Sector Allocation Table identifies the base applied to each F8 code/OUC combination (representing at least 90% of the
costs, assets or liabilities of each sector). Descriptions for these bases can be found in sections 4-6. Key destinations can be found in
Appendix E.
Appendix G - Shows the Line of Business Organisational Unit Codes (LoB OUCs).
1.4 Guide to using the DAM
The DAM is structured to provide a logical description of the flow of costs from source ledgers (with similar cost types grouped together and
treated in a similar way) through a series of attribution stages to Services or products.
Section 3 describes the main attribution stages in the AS process. Each attribution stage forms a section in the DAM.
Readers should familiarise themselves with the different types of cost pool and layers of attribution as described in the conceptual model in
section 3. Readers can then follow the flow of costs, for a chosen sector of BT’s business, by starting at the lowest level of source costs/
revenues/assets/liabilities, and following the attribution process through the sections of the DAM.
The example below shows how network costs are apportioned to P317 in a fully allocated process.
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Step 1 - Identify the functional cost sector for review in Section 3.7.1.2 e.g. the General Support sector (Sector B0).
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Section 1 Introduction – Detailed Attribution Methods (DAM)
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Step 2 - Review the description of Sector B0 (in Section 3.7).
Step 3 - Select an F8 cost item from within sector B0 to review using the attribution table in Appendix F (e.g. F8 203986 BT Licence
Fee). The attribution table identifies the reference of the attribution base applied to the F8 code i.e. the EXCEPT base for OUC C.
Step 4 - Follow link/ reference to the base attribution methodology in the Base Methodology Dictionary in Section 4 using the base
name and, if required, the OUC reference combined.
Step 5 - Review the description of base attribution methodology in Section 4 and also the key destinations for the attribution base in
Appendix E i.e. Corporate Costs AG112.
Step 6 – Where the attribution base has apportioned to an Activity Group, review the description of the Activity Group (e.g. AG112) in
Section 5 and review the AGs key destinations (e.g. System X LE Processor Capital in Appendix E).
Step 7 - Follow link from the attribution method description for PG285C in Section 6 to its key component destinations in Appendix E
(e.g. CO212 Local Exchange processor set-up).
Step 8 - Review attribution description of network components in Section 7 (e.g. CO212) and its key service destinations.
Step 9 - Review definition of Wholesale service in section 8.
Step 10 – In a fully allocated process Wholesale service costs can be apportioned to end Retail product destinations on a cost basis.
Step 11 – In an AS process, Wholesale Services charge Retail products for the use of their services on the same basis as Other
Communication Providers see section 7.
Section 2 Business Overview – Detailed Attribution Methods (DAM)
2 Business Overview
The purpose of this section is to provide a brief overview of the BT business and regulatory financial reporting obligations. It also briefly
describes how the underlying financial transactions supporting the business activities and functions that are recorded in BT Group’s financial
ledgers are grouped to provide the starting costs, revenues, assets and liabilities used by the Accounting Separation (AS) system; and explains
that the starting cost pools (‘F8 items’) are grouped and then presented by different areas of BT’s business (sectors).
The AS system attributes the costs, revenues, assets and liabilities to defined products and components which are aggregated into the
Markets, Technical Areas and Disaggregated Activities to create a view of BT’s financial position and results against SMP Markets. BT’s AS
process is described in further detail in Section 3.
2.1 BT Group and regulatory reporting
BT Group plc (the “Group”) is the listed holding company for an integrated group of businesses that provides voice and data services in the
UK and overseas, in Europe, the Americas and the Asia Pacific region. BT has four customer-facing lines of business: BT Global Services, BT
Retail, BT Wholesale and Openreach, all supported by two internal functional units: BT Design and BT Operate. BT Global Services is a global
business operator; BT Retail, BT Wholesale and Openreach operate mainly within the UK, where BT is the largest communications services
provider to the residential and business markets. The results and further detail on each of the lines of business are reported on in BT’s annual
report.
As explained in Section 1, Ofcom imposes regulatory financial reporting obligations on BT for those Markets, Technical Areas and
Disaggregated Activities (as applicable) where BT is deemed to have Significant Market Power (SMP). The markets (including technical areas)
where BT has SMP reporting obligations is listed in the Primary Accounting Documents and in Section 8 of the DAM.
BT prepares Current Cost Financial Statements which show BT’s costs, revenues, assets and liabilities against defined regulatory Markets and
Services. The statements are prepared via the Accounting Separation (AS) process and comprise a financial performance summary, review of
financial performance by groupings of markets and by individual markets, other information including the network activity statement and
the calculation of FAC based on component costs and usage factors statement and reconciliation statements, described in Section 3. For
regulatory reporting purposes, turnover is recorded against a range of services provided to customers e.g. sales of apparatus, connection
charges , rentals , etc. Cost associated with operational and support activities undertaken to support the provision of these services are
recorded against sectors such as planning and development, provision and installation, maintenance and plant support. This is described in
detail in Section 3 of the DAM.
2.2 Financial Accounting and Accounting Separation (AS) Systems
To support the data capture and information summation at the Line of Business and Activities level, BT’s Financial and Reporting systems use
a hierarchical coding structure. This structure can be visualised in terms of a pyramid. At the base or the lowest level of the pyramid, the
transactions are captured using GL Codes. The GL codes are then summated to F8 Codes to support the AS allocation and apportionment
models. AS allocation and apportionment are carried out in a reporting system known as ASPIRE. ASPIRE produces the results by attributing
costs, revenues, assets and liabilities to BT’s regulatory Markets and Services for internal and external financial reporting.
The GL Codes also point to Standard Financial Reporting (SFR) lines. The SFR lines form the basis of the production of internal and external
Financial and Management reports. SFR lines point to Group Financial Report (GFR) lines. GFR lines forms the basis of the Group Financial
Reports, which are used to consolidate publish BT’s financial results externally.
The F8 Codes via SFR lines point to high level reporting sectors known as the AS Sectors. One or many F8 Codes can point to an AS sector. To
support SMP external reporting, another layer of high level sectors has been added at the top of the pyramid. These new sectors are known
as SMP sectors. All AS sectors point to SMP sectors. One or many AS sectors can point to a SMP sector. It is worth noting that the pointing of
AS sectors to SMP sectors for BT’s Wholesale Markets reporting are different from BT Retail Residual. This is primarily due to the different
nature of the activities carried out within Wholesale and Retail.
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Section 2 Business Overview – Detailed Attribution Methods (DAM)
2.2.1 Feeder systems and reporting hierarchy
The diagram above shows the grouping of financial accounting information from general ledger cost accounts to F8 codes and sectors. The
different levels of the hierarchy are discussed below.
•
Accounting Transaction (GL Codes) Layer
The costs, revenues, assets and liabilities of BT’s main business activities (within the operating businesses of BT Retail, BT Wholesale,
Openreach, BT Global Services, and other parts of the BT Group organisation) are recorded in the group General Ledger (GL) system. There
are approximately 85,000 GL Codes.
•
Base Apportionment ( F8 codes) Layer
General ledger codes are aggregated to ‘F8 codes’, which represent groups of similar general ledger codes. One or many GL Codes are
aggregated to an F8 code. The costs, revenues, assets and liabilities associated with an individual F8 code (for a given Organisational Unit
Code– see OUC description below) will be attributed to Products, Plant Groups (PGs) and/ or Activity Groups (AGs) using a base methodology
appropriate to the OUC that records. There are approximately 40,000 F8 Codes.
It is worth noting that the Regulatory Reporting system ASPIRE receives General Ledger feed aggregated at F8 code level and not at an
disaggregated GL Code level.
•
Financial and Management Accounting (SFR Lines and Reports) Layer
General ledger codes are aggregated to Standard Financial Report (SFR) Lines. One or many GL Codes are aggregated to a SFR line. SFR lines
form the basis of BT’s Financial and Management Reports which are used internally. The SF Reporting structure is hierarchical with the
detailed reports at low level. The subtotals and totals from the low level reports feed in to the high level summary reports. The formats of the
SF Report are grouped in two broad categories – Profit and Loss Account and Balance Sheet. The SFRs form the basis of both Financial and
Management reports. They provide a pivotal link in reconciling BT’s internal and external financial reports. The creation of SF Lines and
Reports is subject to strict change control procedures. In general, SF reports comply with the group accounting policies, the accounting
standards and the GAAP. There are approximately 100 SF Reports and approximately 8,200 SFR Lines.
•
8
Group Accounting (GFR Lines and Reports) Layer
Section 2 Business Overview – Detailed Attribution Methods (DAM)
SF Lines aggregate to Group Financial Reporting (GFR) Lines. One or many SFR Lines are aggregated to a GFR line. GFR lines form the basis
of BT’s Group Financial Reports, from which, BT’s external Financial Reports are produced. The GF Reporting structure is hierarchical with
the detailed reports at low level. The subtotals and totals from the low level reports feed in to the high level summary reports. The formats
of the GF Report can be grouped in two broad categories – Profit and Loss Account and Balance Sheet. The creation of GF Lines and Reports
is subject to strict change control procedures. In general, GF reports comply with the group accounting policies, the accounting standards
and the GAAP. There are approximately 50 GF Reports and approximately 1,510 GFR Lines.
Self-accounting Units (SAUs) not using the BT Group General Ledger (GL) system (such as Global Solutions) provide summarised details of
their financial accounts on a Group Financial Return (GFR), with line items from the GFR mapped to General Ledger (GL) codes for use in the
Accounting Separation (AS) system. All SAU revenues, costs and liabilities are allocated to the BT Retail Residual Market.
•
Regulatory Reporting (AS Sectors and SMP Sectors) Layer
F8 codes are grouped into similar functional categories called AS sectors. One or many F8 Codes are aggregated to an AS sector. The AS
sectors provide a manageable way of presenting all of the ‘originating’ costs, revenues, assets and liabilities in the Accounting Separation
(AS) system. It should be noted that while sectors contain functionally similar categories of cost, an individual sector is likely to use multiple
attribution base methodologies. The AS sectors can be grouped in two broad categories – Profit and Loss Account and Balance Sheet. There
are approximately 150 AS sectors.
The AS sectors are grouped in to SMP reporting sectors to produce the Wholesale SMP and Retail Reports as described in the section on SMP
Reporting above.
•
Organisational Unit Code (OUC)
OUCs provide a horizontal, organisational cut of the financial data in the vertical ‘GL-F8-sector’ pyramid. Costs/ revenues/assets/liabilities
are recorded by OUC, at the class of work/ general ledger account level.
The codes for OUCs follow a hierarchical structure, with the first level of the OUC code defining the highest level of the organisation unit and
the subsequent letters of the OUC code representing the more detailed sub-divisions within the top-level organisation unit. Thus OUC code
N, for example, represents BT Wholesale, and code NB represents a subsidiary organisational unit within BT Wholesale.
A sector is therefore represented by a series of F8 codes, with OUCs showing their financial values against the different F8 codes. Each sector
can be represented by a matrix of the F8-OUC combinations. The Accounting Separation system looks at each F8-OUC combination to
identify an appropriate base attribution methodology to attribute the costs, revenues, assets and liabilities. There are approximately 60,000
OUC codes.
F8_OUC combinations are the lowest level at which discrete cost pools are defined for the purposes of the
Accounting Separation System
F8_OUC_Combination
2.2.2 Attribution of BT’s financial information to Markets and Services
The DAM aims to explain how the costs, revenues, assets and liabilities of the BT Group business are attributed to the products of the defined
regulatory Markets and Services.
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Section 2 Business Overview – Detailed Attribution Methods (DAM)
The DAM therefore sets out for each sector the component F8/ OUC codes and the base methodologies that are applied to each F8/ OUC
code to attribute them to products (and/or intermediate cost pools). Several F8-OUC combinations may share the same base, if they have
similar cost behaviour.
The base methodologies are summarised in the sector tables against the relevant F8/OUC code, and described in detail in the Base
Methodology Dictionary.
2.2.3 Scope of Document
There are approximately 54,000 separate F8/OUC combinations populated in BT’s ledgers (that is, showing a year-end balance reflecting
the posting of transactions by one or more OUCs to the relevant F8 codes during the year). Approximately 7,000 F8/OUC items account for
more than 90% of the total ledger value represented by the total population of F8/OUC items.
The DAM has been written specifically to describe the attribution of the items comprising at least 90% of the total ledger value in absolute
terms. However, actual coverage exceeds this threshold. Methodologies have been described that are relevant to the attribution of the items
that make up approximately 90% of each sector within the ledgers. Some attribution methods apply to more than one F8/OUC combination.
Therefore, there are F8/OUC items whose attribution would be described by the methodologies included in the DAM, but which are not
specifically identified. The methodologies described therefore cover substantially all of the revenues, costs and capital employed recorded in
the ledgers.
The document follows this principle of identifying only those material items, rather than the total population of items that is relevant to a
methodology. Key destination tables specify the destinations of at least 90% of the costs being attributed by a methodology. Standard
Service charging destinations list the product destinations that make up at least 90% of the total charge for the year of each Standard Service.
To document every single item of revenue, cost and capital employed is not necessary to provide a transparent account of the regulatory
accounting processes, because the 90% coverage threshold adopted by BT identifies substantially all of the different ways in which
attribution is carried out.
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Section 3 Overview – Detailed Attribution Methods (DAM)
3 Overview
3.1 Basis of preparation
The Regulatory Financial Statements are required to show costs, revenues, assets and liabilities on a current cost accounting basis, against
the defined regulatory Markets, technical areas and disaggregated activities of BT.
The source of the financial data is the central ledgers and consolidation system for BT, where financial transactions are recorded by the
organisational units within BT, supplemented by current cost accounting adjustments as described in the Detailed Valuation Methodology
(DVM). Accounting Separation (AS) uses this information to present costs, revenues, assets and liabilities against each of the Markets,
Technical Areas and Disaggregated Activities defined for regulatory purposes.
3.1.1 Source of transactions
The historical cost, financial transactions and balances for use in the separated accounts come from two main sources:
•
•
The core central General Ledger (GL) system.
The group consolidation system.
Core General Ledger system
The core BT businesses record their financial transactions on a historic cost basis in the core General Ledger system. These ledgers are
supplemented by feeder systems that capture details at transaction level of:
•
•
•
•
Pay
Stores
Materials handling charges
Other costs
Transactions relating to engineering activities are collected and posted to the ledgers at Class of Work (CoW) level. Class of Work (CoW)
specifies the type of activity or asset type on which the engineer is engaged. Transactions for non-engineering activities are captured in the
General Ledger against the relevant functions involved (e.g. marketing, billing etc.).
Consolidation system for self-accounting units
The non-core BT businesses do not use BT’s core General Ledger to record their financial transactions and instead provide details of their
financial information on a Group Financial Return (GFR). GFR follows a standard format, allowing individual GFR line items to be mapped to
a special General Ledger code for use in the AS system.
Current Cost Accounting Adjustments
The current cost accounting adjustments for BT Group, and other adjustments such as accounting journals posted outside the General Ledger
system, are also recorded through the GFR system. The adjustments follow a similar mapping from the GFR to individual General Ledger
account codes for use in the AS system. Current Cost Accounts (CCA) adjustments are described in detail in the Detailed Valuation
Methodology (DVM).
3.1.2 Gross Adjusted Costs
Costs are presented on a ‘gross adjusted basis’, i.e. reflecting all external costs together with all transfer charges between divisions. There are
two main types of transfer charges:
•
•
Cost transfer charges between divisions/organisational units, which go through the General Ledgers. Such charges are eliminated in the
consolidated results and usually in the AS framework, where they are replaced by the underlying cost.
Transfer charges between Markets (e.g. from the Wholesale Significant Market Power (SMP) Markets to the BT Retail Residual. Such
charges are calculated and presented only within the AS framework (rather than through the General Ledgers).
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Section 3 Overview – Detailed Attribution Methods (DAM)
3.2 Costing principles
In order to translate the financial information of the accounting ledgers from a functional and organisational view to the separate Markets,
Technical Areas and Disaggregated Activities defined for regulatory purposes, it is necessary to attribute each financial cost (or revenue, etc.)
item to the relevant Market, Technical Areas and Disaggregated Activity.
The Accounting Separation (AS) system achieves this by defining each Market and Technical Area in terms of its Disaggregated Activities
(Components, Retail Products and Wholesale Services) a number of constituent services, and attributing the source costs, revenues, assets
and liabilities to the relevant services. The attribution is underpinned by a strict set of costing principles, which are set out in detail in the
Primary Accounting Documents.
Three of the key costing principles are cost causality, objectivity and transparency, explained in further detail below.
3.2.1 Cost causality
The principle of cost causality requires costs (revenues, assets and liabilities) to be allocated or apportioned to Products or Components in a
way that reflects the way that Products cause or drive the costs to be incurred or revenues to be earned.
In some situations there may be a direct causal relationship between a cost type (and revenue etc.) and a Component, Product and
Disaggregated Activities. In other cases the causal relationship may be built up over a series of intermediate stages – following a similar
principle to Activity Based Costing (ABC). At each stage of attribution, where costs (or revenues, etc.) flow from one cost category/pool to
the next, there should be a causal relationship between cost pools. In such cases, a basis considered by management to be reasonable is used.
Diagram: Showing costs A to B using causal effect NB
Source: BT Group
Products A, B and C cause the billing postage costs to be incurred through the despatch of bills therefore the cost driver in this example is the
‘number of bills’.
Specific terminology used within the context of this principle includes:
Cost drivers or ‘bases’
This is the underlying basis on which costs are incurred, for example, accommodation costs are incurred on the basis of floor space
requirements (with different Disaggregated Activities using different amounts of floor space). The cost driver or ‘base method’ is therefore
floor-space (usually measured in metres squared).
Allocation
Where an item of cost can be allocated wholly to a particular Retail Product, Plant Group (PG) or Activity Group (AG), without the need to
split the underlying cost pool.
Apportionment
Where an item of cost cannot be identified directly with one Product (or PG or AG) and needs to be split across several cost pools on an
appropriate basis. The cost driver will provide an objective basis for splitting the costs, as the cost driver will show how the cost was caused
subsequently the costs are then split in proportion to the value of the driver associated with each subsequent cost pool. For example, billing
postage costs are apportioned between Business and Residential line rental Product sets, in the proportion of the cumulative number of
invoices raised against Business customer accounts to the cumulative number of invoices raised against Residential customer accounts in the
same period. The costs are then further split between Products within the Business and Residential rental product sets on the basis of Ledger
product revenue.
Attribution
This is a general term encompassing both allocation and apportionment.
12
Section 3 Overview – Detailed Attribution Methods (DAM)
There are certain types of cost (e.g. the costs of the Chairman’s Office) which do not have a causal relationship with any Products.
Additionally, at very detailed levels of reporting, cost attribution may not be possible on a strictly cost causal basis (e.g. attribution of
common marketing costs to a series of similar Products). In such cases, a reasonable method is used.
3.2.2 Objectivity
The principle of Objectivity requires that attributions are objective. This supports the Cost Causality principle, requiring cost attribution to
reflect cost causation using an objective (e.g. determined in an unbiased manner) cost driver. At very detailed levels of reporting, cost
attribution may not be possible on a strictly cost causal basis (e.g. attribution of common marketing costs to a series of similar Products). In
such cases, a reasonable method is used.
3.2.3 Transparency
The principle of Transparency requires the attribution methods used to be transparent. The descriptions of the attribution methods should
provide sufficient information such that a suitably informed reader can easily:
•
•
•
Gain a clear understanding of the overall structure of BT’s financial and information systems from which regulatory accounting data is
derived and in particular the processing and ‘cascade’ effect of the intermediate cost centres.
Gain a detailed understanding of all the material methodologies and drivers applied in the preparation of regulatory accounting data.
Make their own judgement as to the reasonableness of these methodologies and driver data and any changes to them.
13
Section 3 Overview – Detailed Attribution Methods (DAM)
3.3 Conceptual model
The Accounting Separation (AS) solution provides a logical structure for the attribution of costs, revenues, assets and liabilities of BT to,
ultimately, the components and Products that aggregate into:
•
•
•
•
Markets
Technical Areas
Disaggregated Activities
Wholesale Services of BT.
The conceptual model below describes the attribution structure, setting out the key types of cost pool and the flow of different categories
of costs (and revenues, assets, liabilities) through the model.
Diagram: Conceptual Model of BT’s Businesses and Activities
Source: BT Group
Key for the above diagram
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Section 3 Overview – Detailed Attribution Methods (DAM)
The term cost pool is used as a generic term referring potentially to a pool of cost, revenues, assets or liabilities.
3.3.1 Attribution of General Ledger/F8/OUCs
Costs, revenues, assets and liabilities form the starting cost pools for the attribution process, defined in terms of F8/Organisational Unit Code
(OUC) combinations.
An F8 code is a group of one or more similar General Ledger (GL) codes within the core General Ledger system. In an OUC each F8 code can
be attributed using an appropriate cost driver of ‘base methodology’. F8/OUC cost pools are allocated or apportioned to Retail Products (Ps),
Intermediate Activities or Plant Groups (PGs).
3.3.2 Attribution of Initial Intermediate Activity Groups (Initial IAGs)
Initial Intermediate Activity Groups are intermediate cost pools used to collect costs relating to activities such as training, development,
facilities management and general corporate costs. The category includes the apportionment of specific activity costs for units that perform
a service to other organisation units and recover their costs through a transfer charge. The external costs of the unit supplying the services
are apportioned on the basis of an analysis of the transfer charges to the receiving units. (See 3.5).The costs of the Initial Intermediate Activity
Groups (IAGs) may be attributed to Products, support Plant Groups, intermediate retail activities or a combination of the above.
3.3.3 Attribution of Support Plant Groups
Support Plant Groups (PGs) are intermediate cost pools used to collect costs relating to plant overheads, such as accommodation costs for
network buildings and costs of providing power to the exchanges and transmission assets. These costs are apportioned directly to the
relevant Plant Groups, which they support.
3.3.4 Attribution of Plant Groups
Plant Groups (PGs) are intermediate cost pools used to collect costs relating to the BT Wholesale Markets. The PGs carry the capital costs and
values (depreciation, net book values) and expense items (e.g. maintenance) for specific types of network assets, as well as other general
costs allocated to PGs via Initial Intermediate Activity Groups (IAGs) and support PGs. Plant Groups are attributed to Network Components
on a one to one or one to many basis. A Plant Group could contribute costs to many Network Components, and a Network Component could
receive costs from many Plant Groups. Examples of Plant Groups are Local Lines Fibre Cable (Current and Capital) and Main Digital Exchange
Switchblock.
3.3.5 Attribution/Charging of Network Components
Network Components collect costs from the Plant Groups and constitute discrete parts of the network. The Network Components (which are
in some cases grouped for presentation in the Regulatory financial statements) are used to provide network services to Retail Markets and
Products as well as to Other Communication Providers (OCPs). Network Components are charged to Retail Services (Products) or Other
Communication Providers (OCPs) via Standard Services. Calculation of charges for Network Components may support Standard Services or
be consumed directly (non Standard Services), and the charging structure is different for each.
Standard Services are segments of the network that represent a bundle of network Components. The Standard Services provide use of the
network to both BT regulatory businesses (e.g. BT Retail) and Other Communication Providers (OCPs) and are charged at a price subject to a
system of charge controls, referred to as the Network Charge Control (NCC) regime. Standard Services are bundles of one or more Network
Components that are not subject to the Network Charge Control (NCC) regime.
Products that use Standard Services are charged for the use of the constituent Network Components based on the Network Charge Control
(NCC) charge (calculated outside the Accounting Separation (AS) system).
Non Standard Services are charged for the use of the constituent Network Components on a ‘cost-plus’ basis. This is calculated using the fully
allocated unit cost of the network Component calculated on a current cost basis plus a return on the mean capital employed of the underlying
Component. This is calculated using the ‘fully allocated cost’ results at the Network Component level from the Accounting Separation (AS)
15
Section 3 Overview – Detailed Attribution Methods (DAM)
system. The charge applied to the different Products using the Network Components (via the Standard Services or non Standard Services) is
calculated as:
3.3.6 Attribution of ‘own use’ of Network Components
Where BT uses some part of a Network Component to support its own activities in general, this is referred to as ‘own use’ of the Components.
For example, calls from, to and within BT to support a whole range of activities will use the local switch and will therefore generate local
switch costs which are attributed to the activities that generate calls.
Own use will typically relate to activities in support of Retail Residual. The total own use volumes will therefore be apportioned to Retail (and
other) activities, on an appropriate basis. For example, the volume of private circuits forming computer links within BT would be apportioned
to Retail Residual the basis of the way computing costs are assigned.
‘Own use’ by Retail Residual’
Volumes of ‘own use’ of Network Components by the other Markets are identified and assigned to BT Own Use Intermediate Services (e.g.
BT Own Use Retail computer links). These intermediate services are then attributed to Products.
Diagram: Overview of ‘Own use’ by BT Retail Residual products
Source: BT Group
3.3.7 Products and Product Groups
By the end of the final stage of attribution from Network Components and own use Activity Groups (intermediate services) to Products, all
the non-network costs and the network charges are attributed to Wholesale Services. Retail Products or Wholesale Services can be grouped
together to represent the distinct Markets, Technical Areas and Activities defined for regulatory purposes.
3.3.8 Current Cost Financial Statements
This Accounting Separation (AS), processes information for key tables in the Regulatory financial statements, as follows:
16
Current Cost Account (CCA) financial statements
Description
Consolidated Performance Summary (Annex 3)
Shows the performance of:
The consolidated Access and Wholesale SMP markets.
The consolidated performance of the Wholesale and Retail Residual activities.
Attribution of Wholesale Current Costs (Annex 5A)
Shows the P&L costs of Access and Wholesale SMP markets by reported cost
sector.
Section 3 Overview – Detailed Attribution Methods (DAM)
Current Cost Account (CCA) financial statements
Description
Attribution of Wholesale Current Cost MCE (Annex
6A)
Shows the MCE costs of Access and Wholesale SMP markets by reported sector.
Financial Performance in Access Markets (Annex
7)
Shows the financial performance of individual Access Markets.
Financial Performance in Other Wholesale Markets
(Annex 8)
Shows the financial performance of individual Wholesale markets.
Individual Market Reviews (Annex 11, 12 & 13)
Reviews of Access and Wholesale Markets.
Network Activity Statement (Annex 15)
Shows, by individual network components:
Fully allocated costs, plus
Capital costs by network component (calculated as mean capital employed
multiplied by return on capital)
Calculation of FAC based on component
costs and usage factors (Annex 16)
SMP service fully allocated cost calculated using component costs and
usage factors.
BT Network Services Reconciliation (Annex
17)
A summary of all wholesale markets where there are cost accounting
obligations by fully allocated component.
BT Reconciliation Statements
Reconciliation of BT Markets to BT’s Annual Report
(Annex 19 and 20)
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Section 3 Overview – Detailed Attribution Methods (DAM)
3.4 System process
BT uses a system called ASPIRE to perform the fully allocated cost attribution for Accounting Separation (AS). The system defines different
categories of costs, which are treated in a similar manner in the system. At each level of the system processing, a particular category of costs
will be emptied (attributed) to other cost pools, and usually receive no further costs itself. This causes a sequential flow of costs across
different categories at each stage of the system, with all the costs ultimately emptying into the end Product categories. The process of cost
pools emptying as the costs are attributed forwards is referred to as ‘exhaustion’.
The diagram below illustrates the main processing stages of the ASPIRE system for Accounting Separation (AS).
Diagram: Overview of ASPIRE’s main processing stages for Accounting Separation (AS)
Source: BT Group
3.4.1 Key Interfaces
Different types of data are fed into ASPIRE tables from a number of sources. The diagram below illustrates the main types of transaction data
entering the Aspire system prior to processing:
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Section 3 Overview – Detailed Attribution Methods (DAM)
All of the above data types, except for the core General Ledger feed, are uploaded to ASPIRE via a data management system called
Accounting Separation Secure Repository Environment (ASSURE) to ensure data integrity and maintain version control.
Financial account data
In the first stage of the system process, the cost, revenue, assets and liabilities for apportioning are brought into ASPIRE. This is done through
two main feeds:
Core General Ledger feed
The core General Ledger feed provides values for costs, revenues, assets and liabilities at General Ledger account level. This covers the areas
of the business that use the central accounting system and General Ledger for BT (i.e. excluding the Self-Accounting Units). The information
is input to ASPIRE via an automatic upload.
Non-core General Ledger feed
The non-core General Ledger feed provides values for costs, revenues, assets and liabilities for parts of the BT business that do not use the
main central accounting systems and General Ledger. These parts of the business (‘Self-Accounting Units’) provide financial information on
a Group Financial Return (GFR), with information reported by individual Group Financial Return (GFR) line (e.g. Group Financial Return (GFR)
15642 Other Operating Income - Other). The Group Financial Return (GFR) information is then updated into a system called Planmaster,
maintained centrally by BT Group. Information at Group Financial Return (GFR) level from Planmaster is translated into specific General
Ledger code references, which will be used in the ASPIRE system. The non-core trial balance feed then uploads the General Ledger (GL)
codes, Organisational Unit Code (OUC) references and values to ASPIRE (via the ASSURE system).
Other cost adjustments such as Current Cost Account (CCA) adjustments and accounting journals are also entered into Aspire via the noncore General Ledger feed.
General Ledger accounts are the lowest level at which financial information is brought into ASPIRE. A CHART file is fed into ASPIRE, which
sets out a mapping of General Ledger accounts to F8 codes, sectors, transaction types etc. This is done through a series of markers, which
enable the system to track and report results against a number of views:
Diagram: Overview of a CHART file which is fed into ASPIRE
Source: Regulatory Accounting
Non financial account data
In addition to the basic financial data that will be attributed to Products in ASPIRE, Product volume data and other non-financial data for
base attribution methodologies are entered into ASPIRE (via ASSURE). For example, data on the square metre usage of different buildings
by different activities would be converted into a set of percentages (representing the proportion of total space used by each activity) and
entered into Aspire, for use in the apportionment of accommodation costs on the basis of floor space usage.
Base and volumes information comes from a variety of sources (e.g. Core Transmission Costing System (CTCS) and Call Statistics Centralisation
System (CSCS) for Product volume data). The data includes a revenue table, which shows the relationship between revenues and Products.
3.4.2 System processing levels
Level 1 (Fully Allocated Cost (FAC))
The source cost pools at level 1 are the F8/Organisational Unit Code (OUC) combinations of cost, revenues, assets and liabilities including
current cost adjustments.
F8/OUC combinations for turnover are allocated directly to Products and activities at level 1. F8/OUC combinations for costs, assets and
liabilities are allocated to subsequent cost pools and/or Products using a number of possible methods.
The Accounting Separation (AS) solution uses the following types of method, which are processed in the following order by the system:
19
Section 3 Overview – Detailed Attribution Methods (DAM)
Attributions using ‘external data’ base methodologies:
•
•
•
•
•
•
•
•
Allocation directly to a specified cost pool on a one to one basis.
Apportionment to subsequent cost pools on the basis of non-financial data.
Apportionment of overheads of certain Organisational Unit Codes (OUCs) to subsequent cost pools using specific information.
Attributions based on results of previous apportionment’s by the system.
Apportionment to subsequent cost pools in proportion to turnover.
Apportionment to subsequent cost pools in proportion to the pay costs (per pay - type F8 codes) received by those cost pools.
Apportionment to subsequent cost pools in proportion to a specific type of pay costs (per specified restricted pay - type F8 codes e.g.
maintenance pay F8 codes) received by those cost pools.
Apportionment to subsequent cost pools on the basis of previously apportioned costs pan-divisional.
Level 2 (Fully Allocated Cost (FAC)
The Intermediate Activity Groups (AGs 101-106) are attributed to subsequent Activity Groups (AGs), Plant Groups (PGs) and/or Products.
Levels 3 – 5 (Fully Allocated Cost (FAC))
At level 3, Activity Group (AG) 112 Corporate Overhead Costs are apportioned to subsequent Activity Groups, Plant Groups and/or Products.
This is followed by the apportionment of Activity Group (AG) 113 Total Liquid Funds and Interest (cash and bank balances, short-term
investments and borrowings, etc.) at level 4, and Activity Group (AG) 114 Non Core residual balances at level 5.
Level 6 (Fully Allocated Cost (FAC))
At level 6, the support Plant Groups and Products are apportioned to the Plant Groups to which they provide support.
Level 7 (Fully Allocated Cost (FAC))
At level 7, the intermediate retail activities are apportioned to the Products driving the retail overheads.
Level 8 (Fully Allocated Cost (FAC))
Level 8 performs the attribution of Plant Groups to network components. This takes place over a number of discrete stages in the Network
Cost Apportionment Module (NCAM) of the system:
•
Plant Groups (PGs) are assigned to network components using apportionment percentages held in fixed base tables
It should be noted that other Retail Residual (i.e. apart from the Wholesale Markets) ‘own use’ of network components remains within the
network components at this stage, this ‘own use’ is extracted at the next stage of processing, for attribution to intermediate services
(including network own use).The key stages of processing for Network charges, which also start at level 8 in the system, are as follows:
Level 8 (Network charges)
Level 8.1 performs the calculation of charges by Network Components, using the following data source/s:
•
•
Network Components used in Standard Services - prices are taken from Network Charge Control (NCC) price lists outside the system.
Network Components used in Non Standard Services - prices are calculated (outside this module) by taking the Fully Allocated Costs
(FACs) of network Components (per the output from the Fully Allocated Costing (FAC) module), with the price calculated as cost plus a
return on capital employed (including network own use).
The processing level 8.2 attributes Network Components to Standard Services (or Non Standard Services) based on the volume of usage by
the Standard or Non Standard Services.
At level 8.7 all Network components have been fully allocated to services.
Level 9 (Network charges)
At level 9 of the processing, the Standard or Non Standard Services are attributed to Products and the Activity Group (AG) 300s.
Level 10 (Network charges)
At level 10 of the processing, the Activity Group (AG) 300s is attributed to final Products.
3.4.3 Controls
There are a number of controls in the Accounting Separation (AS) system to ensure the accuracy and completeness of the results. The key
controls include:
Accounting Separation (AS) data vetting system
All data entry to the ASPIRE system, except the direct interfaces from the General Ledger (GL), takes place through the Accounting
Separation Secure Repository Environment (ASSURE) system. The ASSURE system is designed to manage version control and improve data
integrity. Data is entered or loaded into ASSURE via a bespoke user interface system, and can be managed and reworked in a variety of ways.
20
Section 3 Overview – Detailed Attribution Methods (DAM)
Once a table has been updated, it is changed from a ‘Local’ to ‘Global’ phase. It cannot then be re-edited unless it is changed back to ‘Local’
by the Run Control Manager, thereby helping to ensure data integrity. Once data has been collected from all the users it is submitted to an
ASPIRE run and cannot be altered after that point.
Specification of data sets for runs
Each run of the system is given a unique reference, which dictates the combination of data sets and reference data to be used in the run.
These are determined from electronic control sheets to effectively ‘commission’ the run.
Completeness of processing
ASPIRE produces a series of ‘Probity Reports’ to show the completeness of processing at each level of the system.
3.4.4 Self Accounting Units
NCSxxx – Self Accounting Unit (SAU) allocations
A large proportion of the revenue, costs and net assets from Self Accounting Units (SAUs) are attributed directly to the Retail Residual
activity. The notable exceptions are Liquid Funds transactions, viz. cash, short-term borrowings, short-term investments and net interest
payable, which are apportioned directly to AG113.
There are four BT units that are deemed Self-Accounting Units:
BT Conferencing – OUC M520
BT Conferencing covers the complete portfolio of conference service. It enables the link of three or more locations together in the same call.
It is a reservationless phone conferencing service that provides virtual meeting rooms. The three main services available are:
•
•
•
BT Phone Conferencing
BT Video Conferencing
BT Web Conferencing
Its costs, revenues and net assets are attributable to the Retail Residual market (P611 – BT Conferencing (Residual)).
Global Solutions– OUC J503; J1503; J541
Global Solutions is BT’s e-business and communications solutions unit. It is the UK’s largest provider of managed and outsourced network
solutions. In 2007 the BT Consulting and Systems Integration (BT CSI) was merged with Global Solutions continuing to specialise in the
provision of consulting and systems integration services, including business consultancy, complex programme management and custom
systems design, development and management. The costs, revenues and net assets of these combined units are attributable to the Retail
Residual market (P429 - Global Services Solutions Residual).
Data Source/s
Group Finance Return (GFRs)
The SAU completes a Group Finance Return (GFR) in order to consolidate its costs, revenues and net assets into the BT Group Accounts
consolidation system – Planmaster. In line with agreed methodologies costs, revenues and net assets are allocated 100% to an appropriate
Product within the Retail Residual activity, as detailed previously.
The last three or four characters of the base name will determine the type of cost, revenue or net asset to be apportioned.
Profit and Loss
External Turnover:
NCSXTO
Internal Turnover:
NCSIGT
Staff Costs:
NCSPAY
Depreciation – Plant and Equipment:
NCSDPPE
Depreciation – Fixtures and Fittings:
NCSDPFF
Internal costs:
NCSVCTIN
External Operating Costs:
NCSOOC
Other Operating Income:
NCSOOI
Net Interest Payable: NCSINT (attributable to AG113). This designator uses the same methodology as other liquid funds by allocating 100%
to AG113 that exhausts directly to P646 in the Retail Residual activity.
Balance Sheet
Fixed Assets:
21
Section 3 Overview – Detailed Attribution Methods (DAM)
GBV Plant and Equipment:
NCSCBPE
AD Plant and Equipment:
NCSCDPE
GBV Fixtures and Fittings:
NCSCBFF
AD Fixtures and Fittings:
NCSCDFF
GBV Software:
NCSCBSW
AD Software:
NCSCDSW
Engineering Stores:
NCSENG
Investments Other
NCSFAOTH
Current Assets
Stocks:
NCSSTK
Third Party Debtors:
NCSDRS
Internal Debtors:
NCSIGD
Short Term Investments
NCSINV (attributable to AG113)
Cash:
NCSCSH (attributable to AG113). This designator uses the same methodology as other liquid funds by
allocating 100% to AG113 that exhausts directly to P646 in the Retail Residual activity.
Current Liabilities
Third Party Creditors:
NCSCRS
Internal Creditors:
NCSIGC
22
Section 3 Overview – Detailed Attribution Methods (DAM)
3.5 Transfer charges as a basis for cost attribution
A number of the individual methodology/base descriptions set out in Section 4 (Base Methodology Dictionary) refer to the use of an internal
transfer charge destination as the basis for attribution of the actual cost underlying the transfer charge within the Accounting Separation
(AS) process. This section explains the rationale for using this basis.
The purpose of transfer charging is to:
•
•
•
•
Enable customer-facing Divisions, who are responsible for their own profitability, to receive a correct allocation of income and
expenditure.
Enable support functions to charge for their services to other group units.
Enable control to be exercised over use of key resources.
Maintain proper control in accounting units of certain balance sheet items.
Interbusiness transactions are accounted for on a basis consistent with that for third parties external to the BT Group and are subject to the
same degree of internal control. All transfers are supported by written agreements between units, which are known as Transfer Charge
Agreements (TCA). The name of the Interbusiness transactions system used for transfer charging is The Interbusiness Transfer charge
Agreement Network (TITAN).
Organisational Unit Codes (OUCs) at the order level or as detailed in the Transfer Charge Agreement (TCA) are accounted for on TITAN and
the Core Ledger. Unless otherwise agreed as part of the Transfer Charge agreement process, the settlement is normally by the 15th working
day of the following month for other bills. There is also a formal process to deal with disputes.
Transfer charges can be made by:
•
•
•
•
TITAN.
Minified (File Transfer).
By automatic Journal Voucher (JV) (Direct Cost Transfers).
By standard JV in the Ledger.
The appropriate method to be used is set out in the Transfer Charge Agreement (TCA).
Interbusiness transfer charges are reported by sector.
There is a well-established process for the recording of transfer charges between organisational units, and for the monitoring and control by
each unit to ensure that the amount of the charge is properly stated in accordance with the Transfer Charge Agreement (TCA), and that the
amounts are recorded in the correct organisational unit.
Within the Accounting Separation (AS) process, the transfer charge amounts recorded by each unit are replaced with the actual cost
underlying the charge, and for which the charge is made. The actual cost is then attributed consistent with the treatment of the transfer
charge. This occurs principally in respect of the following types of cost:
•
•
•
Motor transport.
Computing.
Accommodation.
The transfer charge amounts for each of the above cost types are cost causally based:
Motor transport – charged on the basis of the number and types of vehicles used by each Organisational Unit Code (OUC).
Computing – charged on a monthly fixed charged, taking account of variations in volumes e.g. a reduction in volumes will result in lower
charges.
Accommodation – charged on the basis of floor space occupied by each organisational unit, taking account of the variations in underlying
cost (e.g. a central London office space being charged at a higher rate than an office space in a rural location).
The attribution of the actual costs underlying the transfer charge for the above cost types is properly cost-causal.
23
Section 3 Overview – Detailed Attribution Methods (DAM)
3.6 Use of System Generated Bases
In some instances, the regulatory accounting process uses previously attributed costs as the basis for further cost attribution. These bases are
system generated. A report is run from the accounting system that shows how costs (or, where relevant, revenues etc) have been attributed
to Products, so that we know what proportion of previously attributed costs has been attributed to Product 1, Product 2 etc. The costs subject
to the system generated base are then attributed to Products 1, 2 etc in these same proportions. For example, supervisory and management
labour costs are considered to be incurred in support of the range of activities supervised and/or managed. Accordingly, the supervisory pay
costs are attributed as an overhead of the underlying directly apportioned costs.
If an Organisational Unit Code (OUC), for example PQR1 is engaged in maintenance activity, and the pay costs that result from such activity
are attributed to Products 1 and 2 in the ratio 60:40, then the supervisory costs incurred in OUC PQR are also attributed to Products 1 and 2
in the same 60:40 ratio. The system generates the base because it is used to determine the 60:40 split of the underlying maintenance costs
incurred by OUC PQR1.The system base is generated using data designators. These define either:
•
•
Bases that attribute costs and capital employed to cost centres using turnover information.
Bases that apportion specific cost centres on the basis of turnover or previously apportioned costs pan-divisionally.
3.6.1 Attributing costs and capital employed using turnover information.
These bases are used where relevant turnover is an appropriate measure of the cost incurred. In the ASPIRE System bases using turnover are
known as Rule Type 2 and Rule Type 12 bases. Below is an example of a Rule Type 2, details of a Rule Type 12 are detailed in 3.6.2.
Example using turnover:
Normalised
%
Cost ledgered to F8 code
201821 (Rule Type 2 PTJ) £k
-113,763
86.741
992
P139
-17,389
13.259
152
Rest
-14,854,213
100%
1144
Turnover £k
Product %
Product
Turnover £k
-14,985,365
0.7592
P138
0.1160
99.1248
-14,985,365
100%
-14,985,364
Normalised
-131,152
Each base references using turnover has two markers:
a) The Primary data designator 1 (DD1) specifies the appropriate turnover to be used. All Rule Type 2 bases have one of the following
references as their primary data designator.
Income Reference
Primary Data Designator
Cost type driven by the attribution base
INC
DTTK
Total group income
INC_CON
DTTG
Total connections income
INC_REN
DTTH
Total rentals income
INC_SAL
DTTL
Total income received from the sale of apparatus
b) The Secondary data designator 2 (DD2) specifies the cost centre range to which the costs are attributed. Those bases falling within the
DAM 90% rule are summarised below and described in more detail in Section 4 of the DAM.
24
Primary Data
Designator
Secondary Data
Designator
DTTK
DTTK
Driven by incomes arising from:
Cost type driven by the attribution base
INC_PBB
Incomes arising from Customer
Service System (CSS) billing units
Trade debtors arising from Customer Service System (CSS)
billed income
INC_PBC
Incomes arising in private circuits
units
Trade debtors arising from manually billed income for
private circuits
Section 3 Overview – Detailed Attribution Methods (DAM)
DTTK
INC_PBCA
Incomes arising from private
circuit rebate accruals
Accrued income arising from private circuit rebate accruals
DTTK
INC_PBCC
Incomes arising from direct
dialled charge card calls
Accrued income arising from direct dialled charge card calls
DTTK
INC_PBG
Cost incurred by VAT rateable
OUC Codes
VAT payable
DTTK
INC_PBJ
FeatureNet Product (direct
allocation)
Accrued and deferred income for FeatureNet
DTTK
INC_PBN
International telecoms activity
Deferred income from International telecoms activity
DTTK
INC_PBOP
Operator controlled retail calls
incomes
Accrued income arising from operator controlled retail calls
DTTK
INC_PBT
Incomes from Customer Service
System (CSS), Private Circuit
billing, Telex and Direct Sales
Ledger Billing.
Deferred income arising from the systems listed.
DTTK
INC_PBW
Geneva incomes
Deferred income from Geneva system
DTTK
INC_PTBE
International Operator Assistance
and International Private Circuit
incomes
International customers trade debtors
DTTK
INC_PTBR
Business ISDN, telephony,
Featureline and Highway
Connection Product incomes
Contract Liability arising from BT’s Keeping You Connected
agreement.
DTTK
INC_PTE
BT Global Linkline and Callstream
Product incomes
Provision for BT Global Linkline and Callstream Products
DTTK
INC_PTJ
Payphone Products income
Debtors associated with BT Payphones
DTTG
INC_CON_PTA
Business customer income
Contract liabilities for penalty costs for failing to meet
connection targets between BT and business customers
DTTG
INC_CON_PTD
Business Private Circuits
Provision for Contract liabilities for penalty costs for failing
to meet Private Circuit connection targets between BT and
business customers
DTTG
INC_CON_PTH
Residential customer income
Contract liabilities for penalty costs for failing to meet
connection targets between BT and residential customers
DTTH
INC_REN_PBL
Private Circuit rental Product
income.
Deferred income associated with rental income received
from BT Retail Private Circuits Products.
DTTH
INC_REN_PBR
Retail rental Product income.
Rental debtors ledgered in the Customer Service System
(CSS) billing system.
DTTH
INC_REN_PBRA
Retail Product income excluding
Apparatus, Supplemental service
and Residual Products.
Debtors arising from rental income in CellStream/ATM,
Framestream and Switched Multi-megabit Data Services.
25
Section 3 Overview – Detailed Attribution Methods (DAM)
Primary Data
Designator
Secondary Data
Designator
DTTH
Driven by incomes arising from:
Cost type driven by the attribution base
INC_REN_PTF
Business ISDN, telephony and
Highway Rental Product income
Contract liability arising from BT’s “Keeping you connected”
agreement with Business customers relating to repair and
missed appointments
DTTH
INC_REN_PTI
Residential telephony and
Highway Rental Product income.
Contract Liability arising from BT’s Keeping You Connected
agreement with Residential customers relating to repairs
and missed appointments.
DTTL
INC_SAL_PBB
All Retail Products except Private
Circuits and Payphones Product
income.
Retail sales debtors arising from the Customer Service
System (CSS) billing system.
DTTL
INC_SAL_PBG
All Retail Product income.
Debtors related to direct sales and accrued income.
DTTL
INC_SAL_PBT
Retail Products sales income
Retail deferred income for sale in advance
3.6.2 Apportioned to specific cost centres on the basis of previously apportioned costs pan-divisionally
These bases (known as Rule Type 12s in the ASPIRE System) apportion group costs, revenues and capital employed across multiple business
units. These bases are assigned two markers that govern:
a) The Primary Data Designator 1 (DD1) – Identifies the income/cost transactions the system should draw upon to calculate the appropriate
base.
26
Primary Designator
Transactions drawn upon
Cost type to be driven
CAPEXP
All non pay capital additions (purchases of fixed
assets).
Capital expenditure creditors.
CONOTH
All income relating to connection charges, other
single payments and maintenance received by BT
during the year.
Accrued income.
INCCAL
All gross call income received by BT during the
year.
Accrual for call discounts (VRUF) calls not yet billed by BT
Retail.
INCDIS
All gross call discounts levied by BT during the year.
Accrual for call discounts (VRUF) calls not yet billed by BT
Retail.
INCPOA
All gross income received from other
administrations by BT during the year.
Debtors relating to income from overseas administrations.
MANBIL
All rental, other single payments and connection
charge related income received by BT during the
year.
Creditors arising within BT Retail.
NCOFADH
Miscellaneous capital assets.
Depreciation on Capital Miscellaneous net assets for BT’s
corporate unit.
NETCAL
Net call income.
Debtors arising from direct Customer Services System (CSS)
dialled calls.
OPEACN
Accommodation costs.
Sundry debtors and creditors arising from accommodation
costs.
OPECST
External operating costs excluding pay,
depreciation and capital additions.
VAT related creditors.
OPEOTH
Total operating costs, excluding depreciation and
pay costs.
Prepayments.
OPEPOA
Payments made to Overseas Administrations made
by BT during the year.
Creditors for Payments to overseas Administrations.
Section 3 Overview – Detailed Attribution Methods (DAM)
Primary Designator
Transactions drawn upon
Cost type to be driven
OPEPST
External operating costs, excluding depreciation,
pay and POAS.
Miscellaneous trade creditors.
OPEXPS
All operating costs, excluding depreciation
incurred by BT during the year.
Prepayments debtors.
REDUND
All redundancy and new start pay costs.
Redundancy creditor accruals.
TOTINC
Income received by BT from connection charges,
other single payments and rentals.
Miscellaneous debtors arising from the Customer Services
System (CSS) ledger.
TOTPAY
Total capital and current pay costs
Payroll related debtors and creditors.
b) The Secondary Data Designator 2 – Identifies the Accounting Separation (AS) cost centres to which the divisional balances should be
apportioned.
Secondary Designator
Destinations of previously attributed relevant costs (e.g., accommodation costs, payroll costs) to be taken into
account in deriving the base
ACC
All core Products except private circuits.
ALA
Majority of all Products, Activity Groups and Plant Groups excluding Openreach Plant Groups.
ALL
All Accounting Separation cost centres excluding Openreach Plant Groups.
ALLA
All Accounting Separation cost centres.
ASBA
Non Apparatus Organisational Unit Codes (OUCs) charged for their use of Apparatus Products.
BSA
All Private Circuit Products and telex.
BSB
Products which generate income from incoming traffic (primarily international private circuits).
BSC
Public Switched Telephone Network (PSTN), payphone and international Integrated Services Digital Network
(ISDN) Products and international private circuit Products.
BSD
Miscellaneous Products, including Directory Enquiries (DQ) and Message Services.
BSG
Telecom Red related cost centres.
BSH
Payphone related cost centres.
COR
Substantially all core Products and Plant Groups excluding Openreach Plant Groups.
CORA
Substantially all core Products and Plant Groups.
CSS
All Products except for private circuits and other Products not billed from Customer Service System (CSS).
NET
Linkline and Global Services Products (P056, P263 and P346).
ORP
All Openreach cost centres.
PENA
All units in the BT Pension scheme i.e. all core Products, Self Accounting Unit (SAU) Products and Plant Groups.
PVI
All BT Global Services Line of Business cost centres.
PVM
All BT Retail Line of Business cost centres.
SYBA
All units in the BT Sharesave scheme i.e. all core Products, Self Accounting Unit (SAU) Products and Plant
Groups.
3.6.3 Apportioned on the basis of pay costs
System generated pay bases can draw on previously apportioned pay costs in a variety of ways. For example the TOTPAY pan divisional base
described in section 3.6.2 draws on all pay costs on a pan divisional basis BT wide. Another type of base (known as a Rule Type 6 in Aspire)
draws on previously apportioned pay costs specific to a Line of business. Using this base it is also possible to restrict the calculation to specific
27
Section 3 Overview – Detailed Attribution Methods (DAM)
parts of a Line of Business drawing on previously apportioned costs within a defined organisational range (exceptional OUCs are cost centres
whose costs are attributed using different bases compared to the “standard” methodology used by other OUCs for any give cost type).
The table below lists all the major Rule Type 6 bases.
Designator
Procedure
FTD
This base is compiled from previously allocated Maintenance pay F8 codes, (excluding exceptional OUC
pay).
FTK
This base is compiled from previously allocated Provision and Installation and Maintenance pay F8 codes
(excluding non-core pay and exceptional OUC pay).
FTQ
This base is compiled from the previously allocated Capital and Current pay F8 codes (excluding noncore pay and exceptional OUC pay).
A further type of pay base is known as a Rule Type 4 in the Aspire system. This base is similar to the Rule Type 6 base but draws upon
apportioned pay within specific OUCs including exceptional OUCs. This RT4 pay base has one data designators called PCT.
The PCT designator offers the ability of specifying a range of Wholesale, Openreach, Retail and Global Services cost centres to which the cost
should be apportioned. This type of base can be used where the engineering Travel and Subsistence of certain OUCs has to be apportioned
over a limited range of plant groups using a pay base specific to the plant groups supported by those units.
28
Section 3 Overview – Detailed Attribution Methods (DAM)
3.7 Sectors
BT defines its main activities in terms of ‘sectors’ for reporting purposes. The sectors show the:
•
•
•
•
Main types of services provided by BT - with turnover recorded against these services.
Main functional activities performed by BT - with operating costs incurred against these activities.
Main fixed assets underpinning BT’s activities - with fixed asset values and costs recorded against these assets.
Other assets, liabilities and provisions incurred by BT in support of its services and activities.
There are two types of reporting sector –
a) Internally reported Aspire sectors.
Each of the internally reported sectors contains a number of F8 codes, which represent groups of General Ledger codes for costs, revenue,
assets and liabilities. The F8 codes provide the starting point for the attribution of costs, revenues, assets and liabilities in the Accounting
Separation (AS) system. Aspire sectors have been described below in Section 3.7.1.
b) Externally reported SMP sectors
F8 codes in an Aspire sector are attributed to Wholesale services and Retail products using specific bases. Once revenues and costs are
attributed, each service can still be reported by Aspire sector. For publication purposes, the Wholesale Aspire sectors are further grouped into
higher level “SMP” sectors. The SMP sectors have been agreed with Ofcom and generally represent the major items of functional revenue or
cost within Wholesale markets. The groupings of Aspire sectors into reported Wholesale markets are identified in Section 3.7.2. To avoid
unnecessary duplication users should refer to Section 3.7.1 for individual Aspire sector definitions.
3.7.1 Sector Allocations
This section of the Detailed Attribution Methods (DAM) sets out, on a sector by sector basis, a description of each of the Aspire sectors. A
reference table of the detailed attribution methods applicable to the F8 Code/OUC cost pools in a sector can be found at Appendix F. Users
can follow the links from the summary descriptions to more detailed descriptions of the attribution methods in the Directories of Bases.
As described in Section 2, the sector description summaries shown in this section are designed to cover 90% of the absolute value of the cost
allocation for each sector.
29
Section 3 Overview – Detailed Attribution Methods (DAM)
3.7.1.1 Turnover
BT generates turnover on a range of different types of service provided to customers, the turnover is grouped into different areas of business
activity or ‘sectors’, with attributions of revenue described against the following sectors:
30
Section 3 Overview – Detailed Attribution Methods (DAM)
Sector A1 – Sales
Overview
BT sells a range of telephony apparatus to customers, which usually takes the form of a piece of equipment transferred to a customer for their
sole private use. Business and/or residential customers, depending on the nature of the equipment, purchase apparatus.
Sector Breakdown
This sector contains the revenues associated with the sale of telephony apparatus, and includes the following main type of sales:
Telephones, Payphones
This includes:
•
•
Corded telephone handsets.
Cordless telephone handsets.
It also includes private payphone, for use in place such as hotels and restaurants.
Facsimile and answer machines
This includes:
•
•
Business answer machines equipment.
Facsimile machine equipment sold to customers.
Switches
Business customers can purchase switches for their own use. These switches are smaller versions of a phone company’s large central
switching office and enable the customer to provide access lines between individual users and the telephone network. The switches are
available in different sizes – ‘medium and small’ or ‘big and large’ - depending on the volume requirements of the customer.
Voice cabling
This includes:
•
Cabling and associated apparatus installed within the curtilage of the customer’s premises for voice telephony use.
Data cabling
This includes:
•
Cabling used to carry data transmissions from one terminal to another, installed within business customer premises.
Cost booked/allocation
Apparatus sales revenues are recorded against F8 codes for specific Products. Individual revenue F8 codes are then allocated directly to the
Product to which the revenue relates.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies. In general most of the bases
relating to this section reflect a 100% direct allocation to a Product.
Sector A2 – Connections/Other Single Payments (OSPs)
Overview
This sector covers the income received by BT for connecting the customer to services and other single payments received from customers.
Customers using switched exchange lines or leased lines pay a connection fee to establish the service for the first time. This is a one-off fee,
which will be followed by rental charges (shown under Sector A3) and call usage charges (shown under Sector A5).Customers may also pay
a re-connection fee to re-connect services (for example, to reconnect an exchange line to a residential home) or other single payments in
connection with one-off services provided to the customer – for example, to shift or change the location of a service connection.
Sector breakdown
Specific services generating connection and other single payments income in this sector. It includes:
•
Exchange line connections.
Residential standard exchange line (Public Switched Telephone Network (PSTN))
This relates to the connection of private payphones and ordinary residential telephone exchange lines at standard tariff. It includes:
•
“Shift and change” (of existing network apparatus).
31
Section 3 Overview – Detailed Attribution Methods (DAM)
•
Associated Other Single Payments.
Business standard exchange line (Public Switched Telephone Network (PSTN))
This covers the connection of ordinary standard, single and multi telephone exchange lines supplied to business customers at standard tariff
charge. It includes:
•
Non-recurring charges (other single payments) relating to work on the Network Test and Termination Point (NTTP).
Select services
This relates to revenue received for the set-up/connection of customers to select services incorporated in intelligent network software, such
as the 1571 answering service, call diversion and call barring.
Integrated Services Digital Network (ISDN2) access services
This covers the revenue received for the connection of customers to high speed Integrated Services Digital Network (ISDN2) access services
provided over telephone exchange line services. The Integrated Services Digital Network (ISDN2) lines provide two channels for voice and
data transfer, enabling users to make simultaneous voice and data calls over a single line.
Integrated Services Digital Network (ISDN30) access services
This covers the revenue received for the connection of customers to high speed Integrated Services Digital Network (ISDN30) access services
provided over telephone exchange line services. The Integrated Services Digital Network (ISDN30) lines provide 30 64Kbit/s channels for
voice and data transfer over a single line.
Private circuits
Analogue private circuits
BT charges a connection charge for the set-up of analogue private circuits for customers. Analogue private circuits provide permanently
connected point to point circuits for the user’s exclusive use, based on analogue technologies.
KiloStream private circuits
BT charges a connection charge for the set-up of digital private circuits for customers. The KiloStream digital private circuits provide
permanently connected point-to-point digital voice or data circuits for the user’s exclusive use, operating at bandwidths of 2.4 Kbit/s up to
64 Kbit/s.
KiloStream Nx64 digital private circuits
The KiloStream Nx64 digital private circuits are similar to the KiloStream private circuits, but are available in aggregates of between two and
fifteen 64 Kbit/s channels that cover a range from 128 Kbit/s to 960 Kbit/s.
Megastream
Megastream private circuits provide 2Mbit/s (2,048 Kbit/s) high-speed permanently connected point to point private circuits.
Other examples of point to point services receiving connection revenues include the wholesale private circuits provided to Other
Communication Providers (OCPs), and Short Haul Data Services (SHDS) offering varying bandwidth connectivity over short (<25km)
distances.
Radio Backhaul Services 2Mbit/s
This is a point-to-point service providing customers with transparent transmission capacity between their radio base station (cellsite) and
their mobile switching centre (MSC) at a wide range of bandwidths, from 128Kbit/s to 960Kbit/s and 2Mbit/s.
Other major services
ATM services
BT receives revenue for the connection of sites to the wide area Asynchronous Transfer Mode (ATM) service (CellStream). The service is
provided as an access from each site into the CellStream Network, connections between sites are then made in the form of Permanent Virtual
Circuits (PVC’s).
Broadband (Asymmetric Digital Subscriber Line (ADSL))
This covers connection revenue received for the provision of Asymmetric Digital Subscriber Line (ADSL) broadband services to customers.
The service operates over a single, twisted copper pair of wires (existing phone line) and provides the connection using a pair of modems,
one at the user end and the other at the exchange.
FeatureLine
Featureline offers similar functionality to a small telephone system (PBX) but directly from BT's Digital Local Telephone Exchanges. This is
known as a Centrex service.
FeatureNet
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Section 3 Overview – Detailed Attribution Methods (DAM)
This relates to revenue received for the set-up/connection of customers to FeatureNet services. The service offers a Virtual Private Network
(VPN), a Private Branch Exchange (PBX) (located on site)-like functionality and a communications management system to customers.
Apparatus Other Single Payments
BT also receives single payments for the set-up of specific items of apparatus (e.g. voice cabling, medium and small switches) for customers.
The apparatus Products are reported under the Apparatus Supply Business.
Costs booked/allocation
Revenues are booked to the specific general ledger code for the type of Product or service connected, with similar general ledger items then
grouped into F8 codes. The F8 codes are associated directly with individual Products, with allocations from the F8 cost pools directly to the
relevant Product.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector A3 - Rentals
Overview
This sector shows the income received by BT for customer rentals.
Customers using switched exchange lines or leased lines pay a rental fee for use of the line, usually on a monthly, quarterly or annual basis.
Customers of switched exchange lines also pay a usage fee for calls made, but this is recorded in a separate sector (Sector A5). Similarly, the
fee paid by customers for new connections or reconnection of lines is recorded in a separate sector (Sector A2).
Sector breakdown
The key rental items recorded in this sector are shown below. They relate to both business and residential customer rentals, cover exchange
lines and leased lines and provide for different technologies and transmission speeds (e.g. basic Public Switched Telephone Network (PSTN)
exchange rentals, Integrated Services Digital Network (ISDN) rentals).
Exchange line rentals
Residential standard exchange line rental
This is the standard Public Switched Telephone Network (PSTN) exchange line rental for residential customers, providing switched
connections to customer premises. It also includes reduced rentals for customers paying by direct debit or monthly purchase plans.
Residential Public Switched Telephone Network (PSTN) exchange line rental BT Together
There are a number of F8 categories for BT Talk Together, Surf Together, Talk and Surf, etc. rentals, including reduced rentals for customers
paying by direct debit or monthly purchase plans.
Business standard exchange line rental
This is the standard Public Switched Telephone Network (PSTN) line rental for business customers, providing switched connections to
business customer rentals. It includes single line and multi-line business rentals. There is also an F8 category for auxiliary lines business Public
Switched Telephone Network (PSTN) rental, which is treated in the same way as standard business exchange line rental.
Business premium Integrated Services Digital Network (ISDN2) exchange line rental
This is the provision of Integrated Services Digital Network (ISDN2) basic rate digital exchange line for business users. The Integrated Services
Digital Network (ISDN2) lines provide two channels for voice and data transfer, enabling users to make simultaneous voice and data calls over
a single line.
Business premium Integrated Services Digital Network (ISDN30) exchange line rental
This is the provision of Integrated Services Digital Network (ISDN30) primary rate digital exchange line for business users. The Integrated
Services Digital Network (ISDN30) lines provide 30 64Kbit/s channels for voice and data transfer over a single line.
Private circuit rentals
Select Services
Integrated Services Digital Network (ISDN2) access services
This covers the revenue received for the connection of customers to high speed Integrated Services Digital Network (ISDN2) access services
provided over telephone exchange line services. The Integrated Services Digital Network (ISDN2) lines provide two channels for voice and
data transfer, enabling users to make simultaneous voice and data calls over a single line.
Integrated Services Digital Network (ISDN30) access services
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Section 3 Overview – Detailed Attribution Methods (DAM)
This covers the revenue received for the connection of customers to high speed Integrated Services Digital Network (ISDN30) access services
provided over telephone exchange line services. The Integrated Services Digital Network (ISDN30) lines provide 30 64Kbit/s channels for
voice and data transfer over a single line.
KiloStream standard rentals
This is rental income for KiloStream private circuits, providing permanently connected digital voice or data circuits to customers. KiloStream
private circuits provide transmission speeds of 2.4 Kbit/s to 64 Kbit/s.
KiloStream N x 64 rentals
This is similar to the KiloStream standard rentals, offering permanently connected digital voice or data circuits to customers. The N x 64
service offers capacity of 128 Kbit/s to 1024 Kbit/s in increments of 64 Kbit/s.
Megastream rentals (i.e. 2Mbit/s bandwidth service)
This is the rental income for Megastream private circuits, providing 32 x 64 Kbit/s channels (30 of which are private channels for voice or
data, 2 of which are for signalling and synchronisation/maintenance).
Speech/KeyLine rentals
This relates to the provision of analogue private circuits and wideband private circuits. Analogue private circuits are being phased out (e.g.
shop selling or discontinued) but still had significant rental income during the year.
Managed Network Services rental
Syncordia Services/Managed Network Services revenue and relates to rental income for managed network services (customer networks for
data transmission).
Other Major Services
Broadband (Asymmetric Digital Subscriber Line (ADSL))
This covers connection revenue received for the provision of Asymmetric Digital Subscriber Line (ADSL) broadband services to customers.
The service operates over a single, twisted copper pair of wires (existing phone line) and provides the connection using a pair of modems,
one at the user end and the other at the exchange.
Costs booked/allocation
Revenues are booked to the specific ledger code for the type of Product or service consumed, with similar General Ledger items then grouped
into F8 codes. For example, leased line ‘KiloStream’ rentals have separate general ledger codes for customers who have had continuous
period rentals and customers with ‘broken-period’ rentals, but the items relate to the same underlying service and are grouped together in
a single F8 code.
The F8 codes are associated directly with individual Products, with allocations from the F8 cost pools directly to the relevant Product.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector A4 - Enhanced Maintenance
Overview
BT offers enhanced maintenance across a range of services and types of apparatus supplied to customers. Sector A4 shows the income
received from BT for the maintenance services provided.
Sector Breakdown
The most significant element of the income received in this sector relates to maintenance of equipment sold by the Apparatus Products, for
example, maintenance of telephony switches (big and large, medium and small) used by businesses, or maintenance of multiplexer and Local
Area Network (LAN) apparatus used by businesses. The maintenance also relates to exchange lines provided by the Retail Access Markets –
such as single or multiple exchange lines used by business customers or single or multiple exchange lines used by residential customers.
Similarly the maintenance income within the sector covers Integrated Services Digital Network (ISDN30) rentals and private circuits used by
business customers.
Costs booked/allocation
Income received for Enhanced Maintenance services is shown against F8 code specific to the Products to which the income relates. The
income is then allocated directly to the associated Product in the accounting separation system.
Allocations
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Section 3 Overview – Detailed Attribution Methods (DAM)
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector A5 - Calls Gross
Overview
This sector shows the income received by BT for calls made by customers.
In addition to the one-off charge for line connections and monthly or quarterly charges for line rental, customers pay for individual calls
made, against an agreed tariff depending on the call type. The gross revenue received for calls made is recorded against this sector, discounts
and option fees for calls are recorded separately under Sector A6 and A9. The gross revenue amount is calculated from the contracted rate
for the call, before the application of any discount (e.g., friends and family). It is not the ‘standard’ rate.
Sector breakdown
Income is received against the following main types of calls made by customers:
•
Public Switched Telephone Network (PSTN) calls:
Use the public switched telephony network to carry calls from the fixed network to a range of call destinations. Examples of Public Switched
Telephone Network (PSTN) call types include:
•
Public Switched Telephone Network (PSTN) gross, geographic local.
Calls where charges are based on the geographic destination of the call, in this case, calls are made to a local destination. Calls are recorded
in separate categories for business and residential customers.
•
Public Switched Telephone Network (PSTN) gross, geographic national.
Calls where charges are based on the geographic destination of the call, in this case, calls are made to a national destination. Calls are
recorded in separate categories for business and residential customers.
•
Public Switched Telephone Network (PSTN) gross, geographic international.
Calls where charges are based on the geographic destination of the call, in this case, calls are made to an international destination. Calls are
recorded in separate categories for business and residential customers.
•
Public Switched Telephone Network (PSTN) gross, fixed to inland mobile.
Calls to an inland mobile number, originating from a fixed line and are recorded in separate categories for business and residential customers.
•
Public Switched Telephone Network (PSTN) gross, fixed to international mobile.
As above, but relates to calls to international mobile numbers.
In addition to the main categories of local, national and international geographic calls, and calls to mobile, examples of other types of Public
Switched Telephone Network PSTN calls generating gross call revenue include:
•
Public Switched Telephone Network (PSTN) gross, BT LoCall Internet.
Outgoing calls from BT fixed line customers to an Internet Service Provider (ISP), at a special low rate
•
Public Switched Telephone Network (PSTN) gross, Other Communication Providers (OCP) LoCall Internet.
Outgoing calls from BT fixed line customers terminating on the network of an Other Communication Provider (OCP) including ISP
•
Public Switched Telephone Network (PSTN) gross, Directory Enquiries (D) inland, Directory Enquiries (DQ) international.
Outgoing calls to inland or international directory enquiries
•
Public Switched Telephone Network (PSTN) gross, BT non-geographic national.
Outgoing calls to non-geographic numbers (i.e. at a charge independent of the geographic destination associated with the number dialled)
•
Payphone calls
Calls made from payphones generate gross call revenue. There are a number of categories of calls from payphone – e.g. geographic local,
geographic national, fixed to inland mobile
•
Integrated Services Digital Network (ISDN) calls
Calls are also made over Integrated Services Digital Network (ISDN2) and Integrated Services Digital Network (ISDN30) lines, enabling
customers to have multiple channels and faster transmission speeds. Similar to the Public Switched Telephone Network (PSTN) category of
calls, Integrated Services Digital Network (ISDN) calls are made to a variety of destinations and/or special tariff numbers. The key types of
Integrated Services Digital Network (ISDN) calls include:
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Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
•
•
•
•
•
•
ISDN2 gross, geographic local.
ISDN30 gross, geographic local.
ISDN2 gross, geographic national.
ISDN30 gross, geographic national.
ISDN2 gross, geographic international.
ISDN30 gross, geographic international.
ISDN2 gross, fixed to inland mobile.
ISDN30 gross, fixed to inland mobile.
ISDN30 gross, fixed to international mobile.
Other types of Integrated Services Digital Network (ISDN) call include, for example:
•
•
•
•
•
ISDN2 gross, BT LoCall Internet.
ISDN2 gross, Other Communication Provider (OCP) LoCall Internet.
ISDN30 gross, Other Communication Provider (OCP) LoCall Internet.
ISDN30 gross, Directory Enquiries (DQ) inland.
ISDN30 gross, BT non-geographic national.
Costs booked/allocation
Revenues are booked to the specific general ledger code for the type of call made, with similar general ledger items then grouped into F8
codes. The F8 codes are associated directly with individual Products, with allocations from the F8 income pools directly to the relevant
Product. The majority of the Products to which gross call revenues are allocated from this sector fall within the Retail Business Systems
Business. The sector excludes revenue from wholesale calls sold to Other Communication Providers (OCPs), which is recorded in sector A8
(Receipts from Other Communication Providers (ROCPs) and Other Administrations).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector A6 - Call Discounts Facility Fees and Adjustments
Overview
This sector shows call discounts facility fees and other adjustments to gross call revenue.
In many cases, customers can pay optional fees to receive discounts on calls. While the gross revenue received from calls made by customers
is recorded under Sector A5 (Calls gross), the revenue received from the customer for the optional fee (a credit to the income statement) and
the discounts processed against the calls (a debit to the income statement) are recorded in this sector. The gross revenue amount is calculated
from the contracted rate for the call, before the application of any discount (e.g., friends and family). It is not the ‘standard’ rate.
Sector breakdown
Examples of the Products to receive discounts and facility fees by direct allocation from Sector A5 include:
•
Public Switched Telephone Network (PSTN) calls – local (P316 Business, P317 Residential).
The Products for Public Switched Telephone Network (PSTN) local calls (for business customers and residential customers) receive revenues
and costs through specific F8 codes for call discounts and specific F8 codes for facility fees
•
Public Switched Telephone Network (PSTN) calls – national (P318 Business, P319 Residential).
As for local calls, the Public Switched Telephone Network (PSTN) national calls Products (for business customers and residential customers)
receive revenues and costs through specific F8 codes for call discounts and specific F8 codes for facility fees
•
Public Switched Telephone Network (PSTN) calls – international direct dial calls overseas (P014 Business).
As for local and national calls, the Public Switched Telephone Network (PSTN) international calls Products (for business customers and
residential customers) receive revenues and costs through specific F8 codes for call discounts and specific F8 codes for facility fees
•
BT to Other Communications Provider (OCP) Lo-call (P313).
This Product receives fees and discounts related to voice and data non-geographic, e.g. Internet calls to Internet Service Providers (ISPs)
(under the wider category of retail local calls)
•
BT Surftime (P340).
This Product receives the revenue for the Internet call discount allowance (this is where customers pay a fixed fee to have unmetered Internet
calls to participating Internet Service Providers (ISPs).
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Section 3 Overview – Detailed Attribution Methods (DAM)
Costs booked/allocation
Revenues from fees, or the cost of discounts, are booked to a specific general ledger code for the type of Product to which the fees/discounts
apply. Allocations are then made directly from the relevant F8 code to its associated Product. Fees and discounts in Sector A6 are allocated
to the same set of Products that receive gross call revenues allocated from Sector A5.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector A7 - Call Payments to Other Communications Providers
Overview
BT bills customers for calls which may involve some element of service provided by another Communications Provider (CP), this requires a
payment to be forwarded to that CP. Alternatively BT may carry customer calls for little or no payment from the customer and receive income
instead from the CP. Income from and payments to CP are recorded in this sector.
Sector Breakdown
This sector covers the payments made to or income received from, Communications Providers (CP) for the following types of services:
•
•
•
•
Communications Providers can adopt, for example, a ‘Freefone’, ‘LoCall’, or ‘Nationalcall’ number, where callers to that number will pay
a zero rate, local rate or national rate to dial the number (for calls made from anywhere in the UK).
Freefone - the Communications Provider pays BT for calls made to this number (for which BT receives zero income directly from the
originating caller).
LoCall - the Communications Provider pays BT the difference between the call to LoCall and the caller paid Business, Residential or
Payphone call.
Nationalcall - the caller pays for the call at National rate, BT pays the Communications Providers for calls to Nationalcall.
Communications Providers can earn revenue for calls made to their services, where the caller pays a premium rate (‘090’x’), higher than the
normal cost of a call, to reach the service. The revenue received by BT for the call is shared between both BT and the Communications Provider
(the owner of the 090x number), by way of a payment from BT to the Communications Provider. The premium rate service is called ValueCall.
Communications Providers can use the BTnet Dial Internet Protocol (IP) service to give their end users the facility to use secure, remote dialup access to corporate networks and Internet Communications Providers (ISPs), through a low cost, flexible service. Under the services
covered by BTnet Dial Internet Protocol (IP), end-users can, for example, use Freephone numbers (0800/0808) to dial up to the network or
Internet Communications Provider (ISP), the Communications Provider of the end-user pays BT for the calls made.
Alternatively, where end users dial special numbers to reach their Communications Provider (e.g. 0911, 0845), BT collects payments from
the end user and makes payments to the Communications Provider. Therefore, BT makes payments to, and receives payments from
Communications Providers using the BTnet Dial Internet Protocol (IP) service.
Costs booked/allocation
Income received from Communications Providers, or Payments made to Communications Providers, are shown against F8 code specific to
the Product to which the payments and receipts relate. The income and costs are then allocated directly to the associated Product in the
accounting separation system.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector A8 - Receipts from Other Communication Providers (OCPs)/Overseas Administrations (OAs)
Overview
Where BT carries calls for customers of Other Communication Providers (OCPs) over its network, BT receives payment from the Other
Communication Provider (OCP) for the use of the BT Network. Sector A8 shows the income received by BT for receipts from OCPs and
Overseas Administrations.
Sector Breakdown
Receipts from Other Communication Providers (ROCPs) can arise from a number of different types of usage of BT’s Network. For example,
receipts can arise from:
Call termination - calls from Other Communication Provider (OCP) customers to the telephone number of a BT customer, which is routed
through and terminates on the BT Network.
37
Section 3 Overview – Detailed Attribution Methods (DAM)
Illustrative example:
Indirect access - calls which originate on the BT Network, but for which another carrier bills the customer. For example, where customers
pre-select an alternative carrier to BT for their calls, the calls will still originate on the BT Network before being passed to the alternative
carrier for onwards transmission.
Transit traffic - calls which neither originate nor terminate on BT exchange lines, but for the middle part of the call, ‘transit’ over the BT
Network. For example, if a call originates and terminates on an Other Communication Providers (OCPs) Network, but transits over the BT
Network, BT will receive transit payments from the Other Communication Provider (OCP) that bills the customer.
Incoming international calls - calls to the UK which originate abroad and use an overseas network, but use BT’s Network within the UK (for
example, to terminate the call at a UK BT customer, or to carry the call in the UK to an Other Communication Provider (OCP) network for
termination). BT receives payment for the use of its UK network, part of which may be passed to an Other Communication Provider (OCP) if
the call finally terminates on a UK Other Communication Provider (OCP) network.
BT also rents private circuits to Other Communication Providers (OCPs, such as Megastream 2Mbit/s capacity circuits, and receives rental
income from the Other Communication Provider (OCP) for the use of such circuits.
Costs booked/allocation
Receipts from Other Communication Providers (OCPs) are shown against F8 codes specific to the Products to which the income relates. For
example, income received for the rental of fixed links (e.g. KiloStream) is recorded against the specific F8 code 022090, similarly income
received for transit traffic is recorded against the F8 code 0192K0. The income is then allocated directly to the associated Product in the
Accounting Separation (AS) system.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector AA – Other Turnover
Overview
In addition to the main categories of income received through calls, line rentals, connection charges and sales of apparatus, BT also receives
sundry income for a range of small or ad hoc Products and services provided to customers. The income for these services is recorded as ‘other
turnover’.
Sector Breakdown
Examples of sundry Products or services generating other turnover include:
•
•
•
•
•
•
•
Payphone advertising.
External income received for the placement of adverts on public payphones.
Phonebook advertising External income received for the placement of adverts in phonebooks or special directory entries.
Message services income - Income received for telephone message services operated by BT.
Broadband connection and rental Income received from customers for the connection and rental of Asymmetric Digital Subscriber Line
(ADSL)/broadband Products. This also includes installation charges for broadband Products.
Defence Fixed Telecommunications Service (DFTS) gross income - Income received for the provision of Defence Fixed
Telecommunications Services (DFTS) (e.g. circuit switched services point to point circuits, etc.).
Miscellaneous Products - Income relating to small, miscellaneous Products provided by the Retail Business.
Income booked/allocation
The main type of financial transaction recorded in this sector is income receipts.
In many cases, F8 codes are established for specific Products or services, enabling an allocation from the F8 code directly to the relevant
Product in the Accounting Separation (AS) system. For example, the broadband connection and rental F8 code is allocated directly to the
Openworld Broadband Product in the Accounting separation system. Similarly, Managed Bandwidth Services are allocated directly to the
Flexible Bandwidth Services (FBS) Product (within Retail Markets Private Circuits)
A substantial proportion of the income shown in this sector is income received by Self Accounting Units (SAUs) and BT Subsidiaries. The Self
Accounting Units (SAUs) and subsidiaries report the income as ‘external turnover, other sales and services’ in the Group Financial Return.
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Section 3 Overview – Detailed Attribution Methods (DAM)
While for some Self Accounting Units (SAUs) and subsidiaries the income relates to the Residual activity, in others, the income requires
attribution to Products in the other Markets. This is done using a breakdown of the external turnover by Products provided by the Self
Accounting Unit (SAU), to provide the attribution proportions to different Products – as described in detail in the base methodology
descriptions for this sector.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector AU – Supply of Service Out Product Specific
Overview
This sector shows the internal income arising from the Supply of Service from one part of the business to another. Supply of Service relates
to the provision of services from one part of the business to another, internally, on the same terms and conditions as available externally.
Examples of Supply of Service items include Asymmetric Digital Subscriber Line (ASDL) connections/rental, offered from one part of the
business to another. Income received for the Supply of Service is allocated directly to the Product (service) to which the income relates.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector AX – Inter Co. SOS Transfer Out Core to SAU
Overview
This sector contains income received transfer charges out, recorded under a turnover sector (rather than a credit in a cost-type sector). Lines
of Business (LoB) show the income received from the transfer of ‘Non Supply of Service’ (Non Supply of Service) services to other areas of
the business, with the other areas recording the corresponding cost. The attributions of the Non Supply of Service internal turnover follows
the transfer charging methodology described in the Detailed Attribution Methods (DAM).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BU – Elimination of Intra Group
Overview
Sectors AW and BU record intragroup income and costs respectively. This relates to internal income and costs arising from the provision of
services between companies in the BT Group. The internal income and costs are recorded under a separate sector, for elimination on
consolidation.
Allocations
The tables in Appendix F set out the allocations from the F8 cost or income pools in these sectors, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
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Section 3 Overview – Detailed Attribution Methods (DAM)
3.7.1.2 Operating Costs
This section describes BT’s activities that generate operating costs in the business. BT undertakes a range of operational and supports
activities to provide services to its customers, with costs recorded against the following sectors:
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Section 3 Overview – Detailed Attribution Methods (DAM)
Sector B0 - General Support
Overview
The General Support sector covers a range of support activities and costs. The sector includes costs relating to:
Staff costs - for people (non-engineering technical grade) working on systems support activities, where systems support activities are
defined as indirect costs for support of the telecommunications network (including expensed plant, cost of repayment works, etc.). This
includes the costs of agency staff working on system support activities
Phonebooks general costs - including non-pay expenditure for paper costs and non-pay expenditure for delivery charges
Payments relating to Wayleaves in respect of telephone network plant (where Wayleaves enable access to another person’s property to gain
access to the telephone network), also payments for the BT license fee
Another significant component of the costs in this sector is the transfer charge in to different business units of technical Research and
Development work performed by Operate and Design. Such costs are shown against the 244951 F8 code.
Costs booked/allocation
For many of the cost categories in this sector, including the costs of non-engineering technical grade staff working on system support
activities, the attribution in the accounting separation system is carried out on a basis specific to each. Costs relating to phonebooks are
attributed to the Phonebooks activity group AG130, where all costs relating to phonebooks are collected, for onwards attribution to
Products. Costs relating to Wayleaves are incurred mostly by the Wholesale Access business and are treated as overhead cost, apportioned
on the basis of previously apportioned pay. The transfer charges into business units for R&D work performed by Operate and Design are
generally attributed based on a detailed breakdown of the type/nature of projects performed for the sponsoring units.
Allocations
The table Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base allocation
method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B1 - Provision and Installation
Overview
BT provides a range of services to customers, which require network provision and installation activities to enable the services.
Installation activities involve the physical installation of network equipment, cable and or customer premises equipment to provide network
connectivity and other services to customers. This may involve the purchase of new equipment to support the services required by the
customers, or may involve the deployment of existing equipment and network assets for use by the customer.
Provision activities involve work to activate and enable the service to a customer. This may involve software configuration to activate or deactivate particular services, using the underlying physical equipment and network provided through installation activities. Provision and
installation activities support a wide range of services requested by customers, such as:
•
•
•
•
•
Business or residential exchange lines - providing business or residential customers with exchange lines connecting their business
premises or homes to the local exchange, to allow the provision of voice and data services over the Public Switched Telephone Network
(PSTN).
Jumpering in exchanges - installing or connecting the jumpers (connection wires) in the local exchange to connect or de-connect local
exchange lines.
Private circuits - installing private circuits for customers – e.g. Megastream or KiloStream private circuits. This involves, for example,
jumpering - the setting up and installation of a private circuit at the customer premises and the end-to-end testing of the circuit.
Local area networks - installation and connection of local area networks in customer premises.
Apparatus to customers - installing apparatus in customer premises, such as switches for business customers, answer machines etc.
Costs booked/allocation
The main types of costs recorded in this sector are the pay costs for engineers (performing the installation and provisioning activities). In
addition, there are non-engineer pay costs, for example, the non-engineering pay costs for the provision of Facilities Management Services
customer support. The costs also include installation equipment costs associated with particular services, for example, items issued via the
central Automated Supply Chain (ASC), with the costs incurred at Rate List Value.
The Self Accounting Units (SAUs) in BT record their costs in the Group Financial Return (GFR) submission under cost of sales – equipment and
other.
In many cases, costs are recorded against a specific service or plant type at the F8 level, to allow an allocation in the Accounting Separation
(AS) system directly to the Product or plant group. In some other cases, such as work performed by the Network Build division of BT Wholesale
on behalf of other units, the costs and re-charges for the work are recorded against general F8 codes. These costs are apportioned to plant
groups and Products on the basis of the charges billed to the sponsoring units and the class of work to which the charges relate.
Allocations
41
Section 3 Overview – Detailed Attribution Methods (DAM)
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B2 - Maintenance
Overview
In order to operate a network in good working condition to meet service requirements, BT performs activities to test, maintain and repair the
network. The maintenance may be pro-active, scheduled maintenance of particular network assets, or may be reactive to a particular
problem reported by BT staff or by customers.
The key components of the maintenance activities are:
•
•
•
•
Test equipment - testing network equipment as part of scheduled maintenance work or in response to a reported problem, identifying
and diagnosing preventative or corrective work required.
Plan maintenance - identifying the type of maintenance activity required and the resource requirements (e.g. materials and man-hours
of work) to perform the work, planning the schedule to perform routine and ad hoc maintenance activities.
Perform maintenance - carrying out maintenance work to keep network assets and equipment in working order or to perform repairs to
faulty assets, test the assets and equipment to confirm its working order, supervise and review the quality of the maintenance work
performed by engineering staff.
Operate guarantees - assess repair intervals against guaranteed timescales, provide compensation payments where required.
All the major types of assets and equipment require maintenance work, and the Maintenance sector shows different F8 codes for different
types of network assets or apparatus. For example, there are separate maintenance pay F8 codes in areas such as:
•
•
•
•
•
•
•
•
•
Digital main exchange - Maintenance work performed on BT’s main exchanges in the Public Switched Telephone Network (PSTN).
Core transmission - Maintenance work performed on, for example, the cables providing core transmission capacity
between BT’s exchanges.
Digital equipment core transmission - Maintenance work performed on the digital equipment in the core transmission network.
Interconnect - Maintenance of the network interconnection to other operators.
Synchronous Digital Hierarchy (SDH) - Maintenance of, specifically, the equipment for Synchronous Digital Hierarchy transmission
network.
KiloStream - Maintenance of point to point private circuits.
Power equipment - Maintenance of the power equipment supporting the telecommunications network.
Customer network wiring - Maintenance of the wiring on lines connecting business or residential customers to the exchange.
Switches, Videophones - Maintenance of a range of apparatus and services provided to Business customers, for example, medium
switches for Business use.
Income booked/allocation
The main types of costs recorded in this sector are the pay costs for engineers performing the maintenance activities. Engineering Technical
Grade (ETG) staff and Supervision/Support staff record their time spent on specific maintenance activities in a National Job Recording (NJR)
system, with a pre-determined specific rate applied to the man-hours booked. Individual F8 codes show pay costs for both Engineering
Technical Grade staff and Supervision and Support staff against a particular type of network asset or apparatus.
The sector also includes non-pay costs, such as issues from stores that support maintenance activities. These costs are also captured against
individual F8 codes for different types of network assets or apparatus. Pay and non-pay F8 codes for the same type of network asset or
apparatus are usually attributed in the same way in the Accounting Separation (AS) system. In many cases, the F8 codes can be associated
directly with a plant group or Product:
For example:
Where BT incurs costs to compensate customers for failure to perform repairs within agreed timescales, these items are recorded against
specific F8 codes within this sector, for attribution to Products in the Accounting Separation (AS) system.
Allocations
42
Section 3 Overview – Detailed Attribution Methods (DAM)
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B4 - Planning and Development
Overview
An important part of BT’s operation of a network and provision of services is the planning and development activities supporting operations.
The planning and development covers the planning of the network (for example, areas of network build) and the development of new
technologies and service offerings. The key F8 codes included in the Planning and Development sector include:
•
Pay costs for operational planning.
This covers the costs of planners’ time spent on planning and development activities. The planning usually relates to specific jobs, with time
recorded against individual jobs. Operational planning costs are incurred by both BT Wholesale and Retail Organisational Unit Codes (OUCs),
although the majority of the cost relates to wholesale planning activities (e.g. Network Build, Access, Transport Organisational Unit Codes
(OUCs)).
•
Costs of planning agency staff.
This covers payments for agency staff employed on activities defined as planning and development. It covers costs for telecommunication
network planning and utilisation and development costs attributable to Product research and development
•
Research and Development contracts.
In addition to Research and Development activities performed by BT or agency staff, BT contracts out Research and Development to
companies with specialist skills. The costs of these contracts are covered by this F8 code.
The sector also contains F8 codes relating to transfer charges between different business units in BT for planning and development activities
performed by one area of the business on behalf of another. These items are shown in the F8 codes starting with ‘24’ for inward transfer
charges (costs).
A relatively small proportion of the costs of the sector are contained in F8 codes relating to research and development activities performed
by subsidiaries and self-accounting units. These costs are recorded through the Group Financial Return (GFR) as ‘intra-group costs transfer
in – Research and Development’ and ‘external Selling, General and Administrative Expenses (S G and A) costs – Research and Development’.
Costs booked/allocation
Pay costs for operational planning time are attributed based on an analysis of hourly costs by job for planning activities. Costs for agency
staff, incurred mostly through the Exact Technologies Organisational Unit Code (OUC), are identified by individual project and attributed to
the Organisational Unit Codes (OUCs) associated with that project to be attributed using a methodology specific to that Organisational Unit
Code (OUC).Costs incurred for Research and Development contracts placed with external companies (incurred mostly through Operate and
Design and Computing Partners Organisational Unit Codes (OUCs)) are attributed to the Line of Business (LoB) commissioning the work based
on an analysis of previous cost recoveries from the Line of Business for computing and development services provided.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B5 – Operator Services
Overview
BT offers operator services to customers, such as operator assistance services, emergency calls and directory enquiry services. The provision
of these services uses call centres with dedicated operators, responsible for dealing with enquiries (Operator Assistance (OA), Directory
Enquiries (DQ)) or handling emergency calls in accordance with agreed procedures. Examples of the services provided include:
Operator Assistance (OA):
•
•
•
•
•
Assistance with difficult connections.
Advice on call charges.
Code enquiries.
Incoming/outgoing collect calls.
Personal calls.
Directory Enquiries (DQ):
•
•
•
Residential phone number enquiries.
Business phone number enquiries.
Directory enquiries for blind and disabled callers.
43
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
Directory enquiry services provided to Other Communication Providers (OCPs).
Connecting emergency service calls to the appropriate emergency service.
Costs booked/allocation
Costs associated with the provision of operator services are recorded against individual F8 codes within the B5 Operator Services sector. The
key F8 codes shown include:
•
•
•
Pay costs for telephonists and supervisors employed on 100, 999 and directory enquiry service switchboards.
Payments to employment agencies for temporary staff who are not directly employed by BT for operator services work.
Pay costs for operator assistance activities are attributed between Operator Services ‘Inland’ and ‘International’ plant groups, pay costs
for directory enquiries activities are apportioned between Products and plant groups based on an analysis of the call minutes (and the
services to which they relate).
The sector also shows transfer charges between business units within BT, for operator services provided by one area of the business to support
the services offered by a different area of the business. These items are recorded against F8 code starting with ‘24’ or ‘28’ and follow the
standard procedure for transfer charge attributions (see AG114 for further details).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B6 - Supplies
Overview
BT performs activities associated with the procurement of materials and services (to support business operations) and the issuing of supplies
from stores. Small items, for example, tools, can be issued from stores for immediate use in the business; other items may require specific
procurement activities. This sector covers the costs of tools and small issues from stores, and the costs of providing a logistics and
procurement service for internal use in the business. The key items of cost included in the sector include:
•
Logistics and Procurement – pay.
This is the staff cost in respect of personnel involved in work associated with supplies, for example, storekeepers, managers and other
logistical support staff
•
Freight and carriage.
This covers freight and carriages costs associated with items held in stores
•
Tools and small stores.
This relates to tools and small items issued via the central Automated Supply Chain (ASC) from stores.
Costs booked/allocation
The costs of procurement and logistics activities are incurred by the supply chain and procurement units in BT Central Services, and are
apportioned to plant groups and activities primarily based on an analysis of the project undertaken/sponsoring unit’s activities. Expenditure
on tools and small stores is attributed on the basis of the previously apportioned pay for business units incurring such costs.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B7 - Transport
Overview
BT operates a range of transport vehicles to support its business activities. The costs associated with running transport vehicles are shown in
Sector B7 Transport. Key activities associated with the operation of transport facilities include:
•
•
•
•
Acquiring vehicles fleet.
Maintain/lease cars and commercial vehicles.
Managing cars and commercial vehicles.
Retiring cars and commercial vehicles.
The organisation units relating to BT UK Business Service and Fleet Partners incur much of the external costs of operating the fleet. Key costs
include:
•
44
Vehicle license costs.
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
Fuel costs.
Costs of vehicle spares and parts.
In addition to the external costs, the sector shows internal transfer charges, with a large number of Organisational Unit Codes (OUCs)
incurring transport hire costs through the transfer charge against F8 code 246294 (the transfer revenue F8 code 286294 is contained in
Sector AX for Internal Turnover Non Supply of Service).
Costs booked/allocation
Costs relating to maintaining, acquiring and retiring the fleet and commercial vehicles, licenses, spares and parts are incurred by Fleet
Partners and attributed on the basis of the activities of the units recurring charges for their use of Motor Transport services Fuel costs,
incurred mostly by Organisational Unit Code (OUC) Y (BT UK Business Service) on behalf of a range of Organisational Unit Codes (OUCs), are
attributed to the different Organisational Unit Codes (OUCs) on the basis of an analysis of the Fuel usage associated with their number plate
registrations. This is discussed in more detail in the base methodology FUEL Y.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B8 - Marketing and Sales
Overview
BT performs a range of marketing and sales activities designed to retain and win business from existing and new customers. The marketing
and sales activities are targeted at both residential and business customers in the retail market and also at other providers in the wholesale
market.
•
Conducting market research.
This covers activities to gain intelligence on BT’s markets and understand the demands of customers for BT and competitor services.
•
Provide marketing services.
This covers the design, planning and implementation of marketing activities, publicity and promotions. BT works with a variety of external
organisations (e.g. marketing organisations) to develop and deliver marketing initiatives.
•
Manage contact with customers.
This covers activities to handle contact with customers (for example, responding to customer calls), identifying the type of customer and
logging details of the contact.
•
Handle customer orders.
This covers activities to understand the specific needs of the customer, confirm their credit vetting, and determine the feasibility of meeting
the order requirements. It also covers activities to develop a specific solution for the customer and determine price quotes for the services
offered.
Costs booked/allocation
Costs are recorded against individual F8 codes within the B8 marketing and sales sector. The key F8 codes shown include:
•
•
•
Non-engineering pay costs to staff involved in marketing, direct sales and sales support activities.
Payments and accruals in respect of Product related or general advertising campaigns, irrespective of the medium used.
Payments to advertising agencies for Production of advertisements and advertising material.
In addition, there are transfer charges between business units for sales activities performed on behalf of other areas of the business, the F8
codes for these items start with ’24’ or ’28’. The sector also shows the marketing costs of the self-accounting units and subsidiaries, recorded
through the Group Financial Return (GFR). Product-specific marketing and sales campaign costs are identified and attributed directly to the
relevant Products or Line of Business (LoB) revenue streams, with further apportionment’s generally derived on a revenue-basis.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector B9 – Finance and Billing
Overview
The Finance and Billing sector contains the costs incurred by the company from across all lines of business associated with the various
activities of a financial nature, such as budget building and management reporting, together with those needed to generate a bill for the
45
Section 3 Overview – Detailed Attribution Methods (DAM)
customer and collect payment. This category of costs is attributed across the full range of activities and plant groups. Four main processes
are used:
Accounting and General Finance
Accounting and General Finance activities include the following:
•
•
•
•
•
•
Financial and management accounting.
Budgeting and forecasting.
Treasury.
Internal audit.
Accounts payable processing.
Payroll processing.
The pay costs of accounting and general finance units are apportioned in two stages. First, an analysis is made of the operations undertaken
by these accounting units to identify which activities and plant groups they support. For example, the pay costs of a finance manager who
supervises the processing of time sheets for engineers who maintain local lines will be apportioned to the appropriate local lines Plant Groups.
The costs of the Production of the general ledger are apportioned across those activities and plant groups whose costs are recorded in the
main general ledger on a pay base. The costs of other activities, such as management accounts and treasury are apportioned across activities
and Plant Groups as a common cost.
Billing
Billing includes the following activities:
•
•
•
•
Customer billing.
Remittance processing.
Customer service.
Credit control and management.
Billing staff costs are initially analysed by operation type (e.g. payment options) and then apportioned to activities and plant groups using
appropriate non-financial data (e.g. activity survey.) and financial data (e.g. the relevant revenue for the bill type). Telephony billing postage
costs are analysed and apportioned between Business and Residential Access activities on the basis of an analysis of the number of bills
dispatched.
Bad debt
Bad debt is the cost associated with writing off amounts that cannot be collected from customers.
Bad debt provisions and write-offs are separately identified in the ledger for each main billing system. Residential bad debts are apportioned
to Products on the basis of revenue, which can be weighted to take account of BT’s different billing and provisioning policies for different
categories of revenue. Business bad debts are apportioned to a range of Products that give rise to the cost. Alternatively if the bad debt can
be specifically attributed to one or more Products, it would be allocated on the appropriate basis.
Post Office Handling
Post Office Handling is a service provided by the Post Office that allows BT customer to make bill payments over Post Office counters. BT pays
commission to the Post Office for this service. Payments to the Post Office for bill handling are allocated directly to Line Rental Products, split
between business and residential Product sets using Period 9 bill volume data. These costs are then split between Products within the
business and residential sets on the basis of Product revenue.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BA - Computing
Overview
BT undertakes a range of computing activities in support of its main business activities. Computing activities are undertaken primarily by
Computing Partners or BT Retail, and charged to the rest of BT Group for their use of the services. Key areas of activity undertaken in this
sector include:
•
•
•
Computing Operations.
Computing operations include the hosting of applications on mainframes and UNIX machines, on behalf of users of the applications in
BT Group, general application support.
Research and Development.
Computer development activities include:
46
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
•
Upgrades to existing applications and systems in response to user requests. This usually involves providing new features or functionality
within the existing applications to improve their use to the business.
Maintenance of software applications used by BT, this includes the development of software to fix minor bugs identified by users.
Provision of sales support to other parts of the business. For example, if BT Global Services sells a service to a customer and requires
specific software support associated with the sale, this is provided by the computing function within BT.
General support and help-desk.
User-support to BT staff, in areas such as:
•
•
•
Installing and setting up new computers for users.
Providing helpdesk and desktop support services to users, this includes answering and resolving technical queries and general user
problems.
Operation of the BT Intranet.
Costs booked/allocation
There are two main components to the costs and revenues in this sector, the external costs incurred in providing computer services (for
example, agency costs or BT computing staff pay costs) and the transfer charge from the computer service provision service unit of BT to
other BT organisation units. In the main the costs relate to the pay costs for computing employees performing computer operations, research
and development and support activities. The costs and values of general computer assets (gross book value, accumulated depreciation, and
depreciation charge) are recorded under a separate sector – see Sector DO General Computers.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BB – Customer Service
Overview
BT performs a range of customer service activities to support its agreed service levels and maintain customer satisfaction. This sector contains
the costs associated with the customer service activities performed in the business. There are two main operational areas of Customer Service
activity:
•
•
Call Centre Management.
Customer Service Field Operations.
The Call Centre Management activities provide a direct interface between BT and the customers, carrying out day to day activities including:
•
•
•
•
•
•
•
Taking/making customer calls.
Progressing queries.
Liaising with other departments to find out information regarding customer queries.
Developing solutions.
Responding to customer queries.
Dealing with customer complaints.
Providing information to customers (for example, on services offered by BT).
Field Operations activities involve front-line activities to handle faults and perform maintenance associated with specific customer services.
The Field Operation’s team tests diagnose and repair faults to restore or improve customer service, with their repair and maintenance work
focused on the Access Distribution network. Most of the activities undertaken by Field Operations relate to ‘Maintenance’ (Sector B2).
Costs booked/allocation
Most of the costs recorded in this sector relate to pay costs for staff involved in the provision of customer service. For example, the sector
includes the pay costs for call centre staff (working on, for example, customer enquiry reception, and customer enquiries support and service
provision enquiries). The sector also includes the costs of agency staff working in the call centres.
A number of the F8 codes recorded in this sector relate to transfer charges between business units (i.e. F8 codes starting with ‘24’ or ‘28’),
for example, F8 code 280506 shows the transfer charge out from BT Retail to BT Wholesale for current account repair activity carried out by
Customer Service Field engineers on the network owned by Wholesale.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BC - Accommodation
47
Section 3 Overview – Detailed Attribution Methods (DAM)
Overview
This sector covers the costs of accommodation, excluding the asset values and depreciation costs for buildings fixed assets (which are covered
by Sector DQ).The accommodation costs include:
•
Buildings maintenance.
This relates to the non-pay costs of maintenance and decoration of sites and buildings. The costs are incurred primarily through orders
processed via the Accounts Payable system
•
Rent external payments.
This covers the costs of rent payable to landlords on buildings occupied by BT
•
Rates external payments.
This covers the costs of business rates on land and buildings, payable to Local Authorities
•
Electricity – buildings.
This relates to payments to electricity supply companies in respect of usage and standing charges. It covers payments, accruals and refunds
associated with electricity supply in both operational and office buildings
•
Car park/other.
These are miscellaneous costs associated with accommodation, such as car parking charges and special portage fees
•
Cleaning.
This covers the costs of payments to external contractors for domestic cleaning services in BT accommodation
Costs booked/allocation
External rent costs incurred by BT Group Property are allocated to an activity group AG105 (Group Property) for onward apportionment to
Products and services.
Costs relating to electricity, water rates and facilities management is allocated to activity group AG106 (Facilities Management) for onward
apportionment to destination cost pools.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BE - Personnel and Administration
Overview
The Personnel and Admin sector covers costs associated with the provision of personnel services within BT. Such services cover activities
associated with:
•
•
•
•
•
•
Recruitment of staff.
Release of staff/redundancies.
Development and implementation of performance management processes.
Development and implementation of training for employees.
Development and implementation of health and safety processes for employees.
Other Human Resources (HR) support activities.
Costs booked/allocation
In addition, the sector includes the costs of general administrative functions, such as internal publicity within BT, general stationery costs and
other miscellaneous administration .The main types of costs recorded in this sector are pay costs for staff performing personnel activities; this
includes costs for agency staff employed on activities defined as human resources (personnel and administration). The costs are usually
attributed on a basis particular to the Organisational Unit Code (OUC) incurring the costs.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BF – General Management and Other
Overview
48
Section 3 Overview – Detailed Attribution Methods (DAM)
This sector shows costs of general management activities and other general expenses.
A significant proportion of the costs in the sector are pay costs for managers and support staff employed on activities of a general
management nature. This includes the cost of Business Unit board members and other senior managers.
In addition, there are a variety of other expense types and corporate level provisions recorded in the general management sector.
Sector breakdown
The key items recorded in this sector are shown below:
•
NewStart leaver payments.
This relates to pay costs recorded under the “NewStart” scheme for leavers
•
General management pay costs.
This relates to non-engineering time recording pay costs, for people designated with management responsibility. This includes board
members for business units, senior managers and support staff working on general management activities
•
General management and other incidentals.
This includes costs such as conference facilities (non training related) at non-BT premises, the cost of awards to employees under the
‘Recognition in BT’ scheme and associated administrative expenses, costs of payments to customers under the ‘Customer Service Guarantee
Scheme’ for failure of BT service such as missed appointments or repeated loss of service or payments for damage caused by BT to property
of a third party, non trade subscriptions, other incidental costs (low value items)
•
General legal charges.
This relates to general legal charges incurred by BT
•
Group insurance charges.
This is the allocation of group insurance premium costs to business units (from group risk and insurance)
•
Corporate provisions.
This relates to the profit and loss account costs of a variety of corporate level provisions made by BT
•
Non core other operating costs, wages and salaries, other core costs, intra-group costs.
This relates to operating costs incurred by non-core businesses (i.e. subsidiaries, self-accounting units, etc.), in categories such as wages and
salaries, other operating costs, costs incurred performing work for the core business and intra-group costs
Costs booked/allocation
Costs are booked to the relevant general ledger code, which for the most material items correspond almost on a one to one basis with the F8
cost pools.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BG – Standard Labour Rate Cost Variance
Overview
This sector contains the cost variances between actual labour costs and the standard rates used for management costing purposes.
Employees time is costed and recorded against activities based on standard labour rates, where the standard labour rate is calculated in
advance based on certain assumptions on the amount of time worked, holidays, etc. The difference between the actual labour costs and the
standard costs are recorded as standard labour rate variances.
Standard Labour Rate Variance items are shown for different aspects of labour costs, such as recorded hours, allowances, sick leave, pension
rates and National Insurance rates etc. The standard labour rate variances are usually attributed on the basis of previously apportioned pay
costs.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BK - Plant Support
Overview
49
Section 3 Overview – Detailed Attribution Methods (DAM)
This sector contains the costs of activities undertaken to support the running of BT’s Network.
A significant number of people are employed on supervision or coaching activities designed to improve the effectiveness of field operations
work. Their work may involve coaching engineers who work across a number of different plant groups and activities. As such, these
supervision and coaching activities are considered to be general plant support activities. In addition, there are activities to co-ordinate and
control provisioning and maintenance/repair work undertaken by engineers, such activities are also classed as ‘plant support’. The key
activities and costs contained in this sector include:
•
Coaching pay costs.
These are the costs of time booked by Customer Service Coach (CSC) staff. The Customer Service Coach work with field operational staff,
performing coaching activities designed to improve the effectiveness and quality of the teams. Most of the pay costs for the Customer Service
Coach relate to Engineering and Technical Grade (ETG) staff
•
Transmission Repair and Control pay costs.
These costs relate to the time booked by staff employed on transmission repair and control duties on all core transmission equipment and
private circuits. The repair and control activities include helpdesk functions relating to transmission equipment, handling and analysing alarm
reports, controlling transmission planned engineering works, etc. Most of the pay costs relate to Engineering and Technical Grade (ETG) staff
•
Provision control pay costs.
These are costs of time booked by staff working on controlling and supporting the provision, re-arrangement or cessation of network
services, categories of control include, for example:
•
•
•
•
Circuit provision.
Digital Public Network, specifically, digital-digital (D-D) terminated 2Mbit/s connections.
Circuit provision.
Public Switched Telephone Network (PSTN) and private services routed on network plant e.g. Megastream private circuits.
Most of the pay costs relate to Engineering and Technical Grade (ETG) staff.
•
Plant protection and inspection.
This covers the pay costs of staff working on plant protection activities and inspections associated with statutory notices. The activities
include, for example, inspection of low voltage overhead power crossing clearance, standards of constructions and clearance of underground
cables from telecom plant
•
Miscellaneous support work.
This covers miscellaneous work undertaken, for example, the cost of installation (and subsequent recovery) of emergency plant incorporated
in the network at the time of failure of other plant.
The other main area of cost in this sector is rates payable on installations. Rates on installations are government-levied business rates on BT’s
Network installations (external plant and street furniture) and specialised estates (telephone exchanges, radio stations, etc.)
Costs booked/allocation
With the exception of rates payable on installation, most of the F8 cost categories in this sector relate to pay costs. The pay costs associated
with coaching field operations staff is attributed as an overhead based on previously apportioned pay costs. Transmission repair and control
pay costs are attributed based on the length of cable used by bearers.
Provision control pay costs are attributed to a specific plant group where this can be identified (e.g. Digital public network – attributed to
Circuit Provision Digital Public Network plant group) or, where the costs relate to common control activities, based on previously apportioned
pay costs.
The pay costs relating to plant protection and inspection are attributed to plant groups benefiting from the service, in proportion to the plant
expenditure during the year.
The costs of rates payable on installation are attributed based on the space occupied by asset elements (for accommodation related assets)
or current cost replacement values (for access and core network assets).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector BV - Customer Support
Overview
The activities covered by the Customer Support sector are similar to those covered by Sector B2 Maintenance.
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Section 3 Overview – Detailed Attribution Methods (DAM)
The support activities include performing diagnostic tests in support of maintenance and repair work, and also the operation of the work
manager system to schedule and control repair and maintenance work undertaken by BT engineers. The key F8 codes included in the
customer support sector include:
•
•
•
•
•
Pay costs for support functions performed by the installation control office; this includes work to assist installation engineers.
Costs of time managing and operating the work manager system within a work manager centre.
Costs for engineers’ time designated as diagnostic testing offices on diagnostic testing duties.
Costs for control staff time spent on testing and records at repair service controls.
Costs booked/allocation.
The costs recorded in this sector are attributed according to a variety of base methodologies. In many cases, the attributions are based on an
activity analysis of the various units or functions incurring the costs, with the costs attributed to the activities, which the units support.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies, Section 4.
Sector C1 – Other Operating Income
Overview
This sector contains other operating income which relates to non-telecommunications services and is therefore recorded separately from
turnover (calls, connections and rental charges etc.) of BT. The largest category of income for the core business (i.e. excluding subsidiaries,
Self Accounting Units (SAUs) and associates etc.) is the profits on the disposal of land and buildings. In addition, there are a range of smaller
sundry other income categories. The sector also contains ‘other income’ categories for the non-core business (subsidiaries, self-accounting
units, etc.), including the profit or loss made by these companies on the disposal of their land and buildings and other assets etc.
Sector breakdown
The key items recorded in this sector are shown below.
Core business
•
Profit or loss on disposal of land.
This represents the difference between proceeds (net of clearing or scrapping costs) and the net book value of BT land disposed of during the
year.
•
Profit or loss on disposal of buildings.
This represents the difference between proceeds (net of clearing or scrapping costs) and the net book value of BT buildings disposed of during
the year. This includes disposal of freehold buildings and leasehold buildings, and also the disposal of fixtures and fittings associated with the
early surrender of property leases. The buildings include corporate BT offices, shops and network buildings (e.g. telephone exchanges).
•
Profit or loss on disposal of networks.
This represents the difference between the proceeds (net of clearing of scrapping costs) and the net book value of network assets. This
includes network equipment and network security type assets.
•
Non core businesses.
Non core - profit or loss on disposal of land and buildings, other fixed assets and subsidiaries. This represents profit or loss on disposal made
by non-core BT companies – i.e. BT subsidiary companies, associates, etc.
•
Non core – dividends received income from Concert, rent from surplus properties and other operating income.
This represents other income received from non-core BT companies – i.e. BT subsidiary companies, associates etc.
Costs booked/allocation
Costs and income are booked to the relevant general ledger code, which for the most material items correspond almost on a one to one basis
with the F8 cost pools. Many of the cost pools in this category are allocated directly to a specific Product or to the Residual activity.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
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Section 3 Overview – Detailed Attribution Methods (DAM)
Sector C2 - Payments to Other Communications Providers and Sector C3 – Payments to Overseas Administrations
Overview
Where BT carries calls to customers that interconnect with another operator’s network, BT makes a payment to Other Communication
Providers (OCPs) for use of their network. For example, where BT carries a call originating from a BT customer but terminating on a mobile
phone, BT makes a payment to the Mobile Operator for carrying the call over their network. Payments to Other Communication Providers
(OCPs) can arise from a number of different types of usage of Other Operators’ Network. For example, payments may arise from:
•
•
•
•
•
Call termination - Calls from BT customers to the telephone number of a customer of Other Communication Providers (OCPs), thereby
using the other Operator’s network to terminate the call.
Transit traffic - Where BT carries traffic over its network for part of a call, but uses another operator’s network – for example, to
terminate a call. For example, if a call is made from one Mobile Operator’s customer to a customer of a different Mobile operator, via the
BT fixed network, BT would receive a payment for carrying the call, and would also make a payment to the ‘terminating’ Operator to
terminate the call on their network.
Premium Rate Services - Where BT customers make calls to the premium rate service telephone numbers of other operators, and BT
collects the ‘premium’ payment from its customer to pass on to the other Operator.
Freephone - Calls to BT Freephone numbers, where the originating Operator requires payment from BT for carrying the call made by its
customer.
Call termination (call made by a BT customer to a Mobile phone customer).
Illustrative example:
This sector includes all Outpayments for the use of Other Communication Providers (OCPs) Networks in the UK and Channel Islands. For
example, this includes Outpayments to the major UK Mobile Operators, Colt, Energis, Jersey Telecom, Cable and Wireless Guernsey and cable
operators etc. It also includes payments to Communications Networking Services (UK) (CNS) for outgoing international calls (and
international non-call Products) reflecting the termination charges passed on.
Costs booked/allocation
The sector contains costs to BT relating to charges from Other Communication Providers (OCPs), as described above. The Accounting
Separation (AS) system allocates the Other Communication Provider (OCP) Outpayment costs directly to plant groups designed to carry
‘interconnect Payments to Other Communication Providers (POCPs) costs. For example, Vodafone call usage payments are allocated directly
to the Interconnect Payments to Other Communication Provider (POCP) Vodafone plant group, prior to allocation to a corresponding
network component and onward apportionment to call Products.
•
Payments to Overseas Administrations
The main item in this sector is a transfer charge from the Organisational Unit Code (OUC) which incurs overseas Outpayments costs from
Communications Networking Services (UK) (CNS) to other Organisational Unit Codes (OUCs) (e.g. BT Retail Markets).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector C7 – Internal Product Charge from Core
Overview
This sector contains transfer charges for Products used internally within BT.
For internal management purposes, BT runs a 'transfer-charging' process. General ledger codes for the transfer charges are set up as
matched pairs, one for the charge out and one for the charge in. These general ledger codes are associated with F8 codes. Therefore there
will be matching pairs of F8 codes, one for the charge out and one for the charge in. F8 codes beginning with '24' are used for the 'transfer
charges in' and F8 codes beginning with '28' are used for the 'transfer charges out'.
As an example, if 'Unit A' incurs motor vehicle expenses on behalf of 'Unit B', 'Unit A' will have an amount in the 'transfer out' 28xxxx F8
code. 'Unit B' will have an amount in the 'transfer in' 24xxxx F8 code. 'Unit A' will also have an amount in the motor vehicles expense F8
code. Extending this example to the internal use of BT Products provided by the 'Core' BT business, if 'Unit C' incurs costs from operating and
maintaining private circuits on behalf of 'Unit D', 'Unit C' will have an amount in the 'transfer out' 28xxxx F8 code. 'Unit C' will also have an
52
Section 3 Overview – Detailed Attribution Methods (DAM)
amount in the expense F8 code for provision of private circuits. 'Unit D' will have an amount in the 'transfer in' 24xxxx F8 code for its use of
private circuits.
Sector C7 holds the 'transfer in' 24xxxx F8 codes for internal Product usage. These costs are held in sector C7 so that all internal Product usage
is held and can be measured in one place.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F0 – Specific Item interest
Overview
The specific interest represents the net amount of interest payable and receivable by BT on its bank balance which relates to Specific items
referred to in the main BT Statutory Accounts. The sector therefore pertains to income statement (cost of income) attributions in the
Accounting Separation system. There are two main types of interest account contained in this sector; interest payable/receivable by BT Group
(for which the F8 codes start with ‘77’, and the OUCs start with ‘G’.
The material balances represent BT Group intra-group interest payable and receivable relating to specific items.
Costs booked/allocated
Specific interest is recorded against the relevant F8 codes, depending on the type of BT business unit (i.e. Group, Self-Accounting Units
(SAUs) and Subsidiaries) and the type of interest payable or receivable (e.g. IntraGroup third party commercial paper, etc).Since the items in
this sector will represent specific items their costs will be apportioned to the most appropriate cost centre dependent on the nature of the
item.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodology.
Sector F1 – Employee Profit Sharing
Overview
This sector contains the cost of provisions made for payments under the employee profit sharing scheme. The costs are attributed on the basis
of previously apportioned pay costs for all units.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F2 – Net Short-term Interest
Overview
The net short-term interest represents the net amount of interest payable and receivable by BT on its bank balances. The sector therefore
pertains to income statement (cost or income) attributions in the Accounting Separation system.
There are two main types of interest accounts contained in this sector, interest payable/receivable by BT Group (for which the F8 codes start
with ‘77’, and the OUCs start with ‘G’) and interest payable or receivable by self-accounting units and subsidiaries (for which the F8 codes
start with ‘78’ and ‘79’ respectively).
The material balances represent BT Group intra-group interest payable and receivable and interest payable on short-term loans from third
parties.
Costs booked/allocation
Interest payable/receivable is recorded against the relevant F8 code, depending on the type of BT business unit (i.e. Group, Self-Accounting
Units, and Subsidiaries) and the type of interest payable or receivable (e.g. IntraGroup, third party commercial paper, etc.).The F8 codes in
this sector are allocated, through the activity group AG113, to the Residual Business.
Allocations
53
Section 3 Overview – Detailed Attribution Methods (DAM)
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F3 - Associated Companies
Overview
This sector holds the profit and loss account value of the share of profit or loss before tax of associated undertakings. The sector also shows
the profit and loss account charges for the amortisation of goodwill arising from the acquisition of subsidiary undertakings.
Costs booked/allocation
The share of profit or loss of associated undertakings is allocated to the Residual Business, in line with the treatment of unregulated
subsidiaries and associated companies.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F4 – Corporation Tax
Overview
This sector contains the profit and loss account costs of corporation tax. The sector includes the current year corporation tax charge for BT
and subsidiaries, as well as prior year adjustments. It also includes BT’s share of corporation tax payable by associates and joint ventures. The
sector excludes deferred tax (which is covered by sector F5).
Costs booked/allocation
The corporation tax charges are allocated directly to the P999 reconciling item in the Accounting Separation (AS) system.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F5 – Deferred Tax
Overview
This sector contains the profit and loss account costs of deferred tax. The sector includes the current year deferred tax charge and prior year
adjustments. It excludes corporation tax (which is covered by sector F4).
Costs booked/allocation
The deferred tax charges are allocated directly to the P999 reconciling item in the Accounting Separation (AS) system.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F6 – Interest Payable: External Long-term
Overview
Sector F6 contains the costs of interest payable on external long-term loans. As such, the values shown in this sector pertain to income
statement attributions in the Accounting Separation (AS) system. Interest payable by BT Group core companies, self-accounting units and
subsidiaries are recorded under separate F8 codes, starting with ‘77’, ’78’ and ‘79’ respectively.
Costs booked/allocation
Interest payable on external long-term loans is allocated to the P999 reconciling item in the Accounting Separation (AS) system.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
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Section 3 Overview – Detailed Attribution Methods (DAM)
Sector F7 - Dividends
Overview
This sector contains the profit and loss account costs of dividends payable. This represents the cost of dividends payable on BT shares to third
parties.
Costs booked/allocation
The dividend costs are allocated directly to the P999 reconciling item in the Accounting Separation (AS) system, forming part of the
reconciliation between shareholders funds stated in the annual report and the closing capital employed in the Current Cost Account (CCA)
financial statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F8 – Preference Dividends Payable
Overview
This sector contains the profit and loss account costs of preference dividends payable. This represents the cost of preference dividends
payable on BT shares to third parties.
Costs booked/allocation
The dividend costs are allocated directly to the P999 reconciling item in the Accounting Separation (AS) system, forming part of the
reconciliation between shareholders funds stated in the annual report and the closing capital employed in the Current Cost Accounts (CCA)
financial statements.
Allocations
The table in Appendix F sets out the allocation from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector F9 – Minority Interests
Overview
This sector contains the values for minority interests in BT consolidated subsidiaries.
Costs booked/allocation
The minority interests are allocated directly to the P999 reconciling item in the Accounting Separation (AS) system, forming part of the
reconciliation between shareholders funds stated in the annual report and the closing capital employed in the Current Cost Allocation (CCA)
financial statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector FB – Inflation Adjustment to Ordinary Shareholders
Overview
This sector contains the current cost accounting inflation adjustment to ordinary shareholders’ funds. The adjustment shows the amount by
which opening shareholders’ funds would have to increase to keep in line with inflation.
Costs booked/allocation
The value of the adjustment is allocated directly to the P999 Reconciliation item, to reconcile from the historic cost shareholders’ funds per
the annual report to the current cost mean capital employed per the Current Cost Account (CCA) financial statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector FE – Exceptional Items
Overview
This sector contains profit and loss account values for items treated as exceptional for reporting purposes. This includes items such as:
55
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
Profits on disposal of property, land and equipment.
Profits on the disposal of joint ventures.
Share of post tax profit of associated and joint ventures.
Costs booked/allocation
Consolidation units, subsidiaries and self-accounting units record exceptional costs. All the exceptional items are allocated directly to the
P999 reconciling item to reconcile between the annual report and the Current C Cost Account (CCA) financial statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector U4 - Group Support Services In
Overview
This sector represent revenue and cost charges transferred internally for the provision of either group or divisional support services. The
Group support services relate to Finance services provided, while the divisional support services relate to activities such as billing and salesforce work performed by one part of the business for another.
The costs and revenues in this sector are apportioned using the internal transfer charging methodology, whereby transfer charges out (‘28’
F8 code) are attributed on the same basis as the transfer charge in (‘24’ F8 code, and the transfer charges in are apportioned to the Activity
Group AG114 for apportionment.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
56
Section 3 Overview – Detailed Attribution Methods (DAM)
3.7.1.3 Fixed Assets
This section describes the main Fixed Assets that underpin BT’s activities and services provided to customers. BT’s main assets are associated
with the telecommunications network although BT also holds a range of general assets – such as accommodation and motor vehicles – in
support of the network and business activities.
Fixed asset values and depreciation costs are recorded against categories of fixed asset, or ‘Class of Work (CoW)’, and grouped in the following
main sectors:
57
Section 3 Overview – Detailed Attribution Methods (DAM)
Sector D1 – Access: Fibre and Radio
Overview
This sector contains the asset values and depreciation for Access Fibre and Radio. The BT network is split into two parts for Accounting
Separation purposes – Core Transmission, and the Access network. The Access network consists of primarily copper but also some fibre-optic
cables (also known as “Access Lines”), and some radio equipment, and all related equipment, used to connect the user to the local exchange.
The Access network may also be referred to as the “Local Loop”. This sector contains asset values and depreciation for:
•
•
Access Fibre (optical fibre cables in the access network, and all other necessary related equipment, as required to carry digital signals
between the user and the exchange).
Access Radio (cellular, microwave and satellite radio systems used to connect the user and the exchange).
Specific assets held within this sector (by Class of Work (CoW)):
•
LFDC – Construction of Local Line Optical Fibre Distribution Cable (refer to diagram below).
This asset class covers the provision, re-arrangement and recovery of optical fibre cable, blown fibre tubing, blown fibre bundle, and sub duct
in the access fibre distribution, or site connect network, from the serving telephone exchange to the customer, or from the last connection
point in the access fibres spine or primary network to the customer or Street Multiplexer (the Optical Network Unit used to terminate an
optical circuit at the street)
•
LFSC – Construction of Local Line Optical Fibre Spine Cable (refer to diagram below).
This asset class covers the provision, re-arrangement, and recovery of optical fibre cable, blown fibre tubing, blown fibre bundle, and sub
duct in the Access Fibre Spine, or Primary, network from the Exchange Termination Point in the exchange Optical Line Terminal (a device
used to terminate an Optical Core), or the Optical Flexibility Frame/Optical Flexibility Rack (on which Optical exchange equipment is
mounted) in the exchange, to the last node point in the Access Fibre network before the customer, or the Street Multiplexer connection (the
Optical Network Unit used to terminate an optical circuit at the street).
•
LFXE - Construction of Local Line of Exchange Service Module.
This asset class covers the provision, rearrangement, recovery, replacement and renewal of Local Access Network equipment at the exchange
end of Local Access Optical Fibre Cables e.g. Exchange Service Module (ESM)
•
LFCC – Construction of Local Access Service Access Control Centres.
This asset class covers the provision, re-arrangement, recovery replacement and renewal of Service Access Control Centres (SACCs) for the
Local Access Optical Fibre Network
•
LFME – Construction of Local Network Service Module Equipment.
This asset class covers the provision, rearrangement, replacement and renewal of Network equipment at the customer end of Local Access
Optical Fibre Distribution Cables: e.g. Network Service Module equipment (NUM)
•
TPWA - Construction of Access Radio Systems.
This asset class covers the provision, re-arrangement, or renewal of Access Network radio Systems.
Costs booked/allocation
Costs are booked to the relevant class of work (e.g. LFDC, LFSC, LFXE, LFCC, LFME and TPWA) and the relevant financial cost type (gross book
value, work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal
and external labour costs are added into the relevant class of work and subject to the same accounting treatment.
Asset movements for gross book value, for a particular class of work, are grouped together under a single F8 code. For example, ‘Local Line
Optical Fibre Distribution Cable’ Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to gross book
value) and disposals are grouped under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate
F8 codes.
Allocations
58
Section 3 Overview – Detailed Attribution Methods (DAM)
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector D2 – Access: Copper
Overview
This sector contains the asset values and depreciation for Access Copper. The BT Network is split into two parts for Accounting Separation
(AS) purposes – Core Transmission, and the Access network. The Access network consists of the copper or fibre-optic cables (also known as
“Access Lines”), or radio equipment, and all related equipment, used to connect the user to the local exchange. The Access network may also
be referred to as the “Local Loop”.
This sector contains asset values and depreciation for Access Copper (copper cables in the access network, and all other necessary related
equipment, as required to carry signals between the user and the exchange). Access Copper and is split into two elements, 'Main' Copper and
'Distribution' Copper, as illustrated below. This sector also contains the Access element of Asymmetric Digital Subscriber Line (ADSL) and the
Access elements for business and residential Home Highway (see Product descriptions) and Exchange Lines.
Specific assets held within this sector (by Class of Work (CoW)):
•
LDC - Construction, Local Distribution Cable.
This asset class covers the provision or recovery of Access Copper Distribution and Branch Cables applicable to the copper build programme.
This covers all work to increase the capacity of the network. Excludes duct
•
LDCR - Renewal, Local Line Copper Distribution Cable.
This asset class covers the replacement of Access network metallic distribution and branch cables, together with ancillary plant, as a result of
a fault. Significant Copper pairs must not be added and the asset value/plant life must not be substantially altered. Excludes Provision or
replacement of duct and associated items
•
LMC - Construction, Local/Main Exchange-side Cable.
This asset class covers the provision or recovery of Access copper main cables applicable to the copper build programme. This covers all work
to increase the capacity of the network. Excludes duct
•
LMCR - Renewal, Local Line Copper Main Cable.
This asset class covers the replacement of Access network metallic main cables, together with ancillary plant, as a result of a fault. Significant
Copper pairs must not be added and the asset value/plant life must not be substantially altered. Excludes Provision or replacement of duct
and associated items
•
LSC - Construction, Local Line Electronic Systems for Copper.
This asset class covers the provision, re-arrangement; recovery and replacement of fixed asset register Access electronics. This covers work
to alter the capacity of the Access Network provided for the copper build programme
•
ADSL - Construction of Digital Subscriber-line
This asset class covers the contract, stores and labour for the construction, installation, commissioning, replacement, re-arrangements and
recovery of Asymmetric Digital Subscriber Line (ADSL) and XDSL equipment at local exchanges, and stores only at customer's premises, to
carry broadband services to customers
•
HHB/HHR - Business/Residential Highway Provision.
This asset class covers the provision of the Network Termination Equipment (NTE) kit for business/residential Highway installation, including
the stores cost of the Highway Network Termination Equipment (NTE) kit. Highway is a service, which allows customers to convert their
existing telephone (analogue/Public Switched Telephone Network (PSTN)) line into a digital line with the functionality of two digital 64Kbps
channels. The class of work excludes provision of network to the Network Termination Equipment (NTE)
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Section 3 Overview – Detailed Attribution Methods (DAM)
•
NWB/NWR - Provision and Installation of Exchange lines (business/residential).
This asset class covers Exchange Line provision and installation for customers on business/residential tariffs from the Distribution Point or
from the point where the Network carries service to more than one Customer.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. LDCR, LMCR, LDC, LMC, LSC, ADSL, HHB, HHR, NWB and NWR) and the relevant
financial cost type (gross book value, work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated
with these assets such as internal and external labour costs are added into the relevant class of work and subject to the same accounting
treatment. Asset movements for gross book value, for a particular class of work, are grouped together under a single F8 code. For example,
Local Distribution Cable Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to gross book value) and
disposals are grouped under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector D3 – Access: Duct
Overview
This sector contains the asset values and depreciation for Duct in the Access network. Duct is a pipe, tube or conduit through which
underground cables are passed. The BT Network is split into two parts for Accounting Separation (AS) purposes – Core Transmission, and the
Access network. The Access Network consists of the copper or fibre-optic cables (also known as “Access Lines”), or radio equipment, and all
related equipment, used to connect the user to the local exchange. The Access network may also be referred to as the “Local Loop”.
This sector contains asset values and depreciation for Access Duct (Duct in the Access Network through which either Copper of Fibre cables
are routed). The Copper Access network is split into two elements, 'Main Copper' and 'Distribution Copper', as illustrated below. Duct in the
Copper Access network is therefore also split into 'main'/'Exchange Side' (LDC) and 'Distribution' (LMD) Duct for Copper cable.
Specific assets held within this sector (by Class of Work (CoW)):
•
LDD - Construction - Local Distribution Duct for Copper Cable.
Provision or recovery of distribution and branch duct and associated jointing chambers for Access copper cables provided within the copper
build programme. This covers all work to increase the capacity of the network
•
LMD - Construction, Local main (Exchange-side) Duct for Copper.
Provision or recovery of main duct for Access copper cables provided for the copper build programme. This covers all work to increase the
capacity of the network
•
LDR - Renewal, Local line Duct for Copper Cable (either Main or Distribution).
Replacement or partial replacement of duct for Access copper cables to facilitate the replacement of cable following a customer-reported
fault
•
LFD - Construction, Local Duct for Optical Fibre Cable.
Provision, re-arrangement, replacement and renewal of duct for the installation of sub duct, optical fibre cable, and blown fibre tubing in
the Access Fibre Network
•
LQA - Local Lines Fault Volume Reduction – Duct.
All ductwork on the Main and Distribution sides of the network, carried out as part of a scheme where the main driver is work to reduce Fault
volume
•
60
LSA - Local Lines Asset Assurance Programme – Duct.
Section 3 Overview – Detailed Attribution Methods (DAM)
•
TVD – Cable TV: All ductwork.
All duct work on the Main and Distribution sides of the network carried out as part of a scheme where the main driver is work for the Asset
Assurance programme.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. LDD, LMD, LFD, LQA and LSA) and the relevant financial cost type (gross book
value, work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal
and external labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for Gross
Book Value (GBV), for a particular class of work, are grouped together under a single F8 code. For example, Local Distribution Duct Gross
Book Value (GBV) opening book value, registrations (transfers from work in progress to gross book value) and disposals are grouped under
a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector D4 – Local Exchanges: Digital
Overview
This sector contains the asset values and depreciation for Digital Local Exchanges, Main Distribution Frames, and Carrier Pre-selection
equipment. The BT network is split into two parts for Accounting Separation (AS) purposes – the Access network, and the Core Transmission
network. Exchanges provide the switching function of telephone networks. Subscribers are connected to local exchanges, which are able to
connect subscribers on the same local exchange (i.e. on the same local loop), and connect local exchanges over the Core Transmission
network. These functions are illustrated below:
1. Connecting calls on the same local loop:2. Routing calls through the Core Transmission network:
Digital Local Exchanges are digital exchanges providing the following functions to digital traffic:
•
•
•
•
•
•
Setting up and clearing down calls.
Switching traffic.
Signalling to other exchanges and subscribers.
Multiplexing signalling and traffic.
Transmitting multiplexed traffic.
Collection of charging data for billing.
Main Distribution Frames (MDF) are frames holding the wiring arrangements which connect the telephone lines coming from the Access
network (Main Copper cable/Fibre Spine) on one side to the switching part of the exchange on the other. An MDF may also carry protective
devices as well as functioning as a central testing point.
Carrier Pre-selection (CPS) is the facility offered by BT for their customers (business and home) to select which long-distance company they
would like to use on a "primary" basis.
Specific assets held within this sector (by Class of Work (CoW)):
Digital Local Exchange
•
LDX/LYX - Construction, Local Digital Exchange.
This asset class covers all equipment and associated costs incurred as part of basic exchange provision, extension, or re-arrangement. Class
of Work (CoW) LDX is Digital Local Exchanges manufactured by System X, LYX is Digital Local Exchanges manufactured by Ericsson. Both of
these types of exchange provide the same functions and include:
ISDN2 IMUXs, ISDN30 PRA (Primary Rate Access) cards and ISDN2 BRA (Basic Rate Access) equipment.
Line connectors.
Cable pressurisation equipment.
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Section 3 Overview – Detailed Attribution Methods (DAM)
Mobile exchanges.
Work of grading, re-grading etc in connection with grade of service improvements (not for new circuits).
Distribution frames.
Excludes:
•
•
•
•
•
•
•
Non Public Switched Telephone Network (PSTN) switching equipment.
External cables within the building up to the cable termination point.
Telecom Network Support computers and all peripherals and ancillary equipment.
Grading/regarding in connection with new circuits.
Provision of AC power and lighting, accommodation plant.
Local Main Distribution Frames (MDFs).
LMDF - Construction, Main Distribution Frame (MDF) for exchanges.
This asset class covers the provision, extension, upgrade, replacement, re-arrangement and recovery of Main Distribution Frames (MDFs)
connected with Inland (BTUK) telephone exchanges. Main Distribution Frames (MDFs) are those distribution frames providing direct
interface with external circuits terminations (customer or other exchanges).
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. LDX, LYX, LMDF) and the relevant financial cost type (Gross Book Value (GBV),
work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and
external labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for gross
book value, for a particular class of work, are grouped together under a single F8 code. For example, Local Digital Exchange Gross Book Value
(GBV) opening book value, registrations (transfers from work in progress to gross book value) and disposals are grouped under a single F8
code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector D8 – Main Exchanges
Overview
This sector contains the asset values and depreciation for Digital Main Exchanges ('Main Network Switching Digital'), Advance Service
Switching Units (providing intelligent network switching functions), Next Generation Switches, and Signalling Network and Interconnect
(used in network management of the switching function).The BT network is split into two parts for Accounting Separation (AS) purposes –
the Access network, and the Core Transmission network. Exchanges provide the switching function of telephone networks. Main Exchanges
route calls between local exchanges over the Core Transmission. This is shown here:
Digital Main Exchanges (Main Network Switching Digital) are digital exchanges providing the following functions to digital traffic:
•
•
•
•
•
•
Setting up and clearing down calls.
Switching traffic.
Signalling to other exchanges and subscribers.
Multiplexing signalling and traffic.
Transmitting multiplexed traffic.
Collection of charging data for billing.
Advance Service Units Switching is equipment supporting the provision of Virtual Private Networks (VPN) and Virtual Private Services over
the network.
Next Generation Switch - A new form of switch, of which there are two types: one using traditional circuit switching technology the other a
hybrid using ATM packet switching technology.
Signalling Network and Interconnect - Signalling is used to set up and close down calls. Most modern signalling uses a separate data network,
allowing additional information to be transferred to support advanced applications such as caller ID.
62
Section 3 Overview – Detailed Attribution Methods (DAM)
Specific assets held within this sector (by Class of Work (CoW)):
•
MDX - Construction, Main Network Switching Digital.
This asset class covers the provision, re-arrangement, recovery and renewal of Digital main (e.g. Core) switching equipment (e.g. DMSU) and
Digital Core Switching equipment (e.g. DJSU) and includes:
•
•
•
•
•
•
•
•
•
•
•
Switching equipment racks.
Commissioning of new switching equipment.
Exchange Databuild.
Mobile/Standby exchanges.
Associated switching works, including distribution frames, cable terminations, call logging equipment, relay sets, PCM signalling cards,
panels signalling portable or semi-permanent test or traffic equipment etc.
Supervising contractors.
Grading and cross-connections for opening requirements.
Provision and commissioning of any computer hardware explicitly and solely associated with the real time operation or the switching of
calls.
Installation of rectifiers, power equipment racks and power distribution busboys provided as part of a new or extended switching unit.
Work of upgrading or modifying exchange equipment or operating software.
ASU - Construction, Advance Service Units Switching.
This asset class covers the construction, Installation, re-arrangement, recovery and renewal of Advance Service Unit’s equipment and CD Call
Centre DMS100S to provide the platform to support the provision of the Virtual Private Network (VPN) service. The Virtual Private Network
(VPN) services being Virtual Private Network (VPN) and Virtual Private Services (VPS).
•
NGSC - Next Generation Switch.
This asset class covers the provision, re-arrangement, recovery and upgrade (renewal) of the Next Generation Switches.
•
SIGNI - Signalling Network and Interconnect.
This asset class captures the costs of signalling network, signalling network management system and interconnects.
It includes Signalling Transfer Point (STP) and Signalling Point Relay (SPR) switches, Signalling Traffic Management (STMS) equipment,
supervising contractors on installation, Link Monitors and associated equipment (Core and Edge), On-site spares, Initial databuild associated
with switches and Testing Apparatus and initial provision of spares held for changing purposes.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. MDX, ASU, NGSC, SIGNI) and the relevant financial cost type (gross book value,
work in progress, annual depreciation charge, accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for Gross Book Value
(GBV), for a particular Class of Work (CoW), are grouped together under a single F8 code. For example, Main Network Switching Digital
opening book value, registrations (transfers from work in progress to gross book value) and disposals are grouped under a single F8 code.
The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector D9 – International Exchanges
Overview
This sector contains the asset values and depreciation for International Digital Exchange Equipment.
Exchanges provide the switching function of telephone networks. International exchanges connect calls between Public Switched Telephone
Network (PSTN) Core Transmission networks in different countries, using standardised interconnections. Digital International Exchanges are
digital exchanges providing the following functions to digital traffic being switched to other Public Switched Telephone Network (PSTN)
internationally:
•
•
•
•
•
•
Setting up and clearing down calls.
Switching traffic.
Signalling to other exchanges and subscribers.
Multiplexing signalling and traffic.
Transmitting multiplexed traffic.
Collection of charging data for billing.
63
Section 3 Overview – Detailed Attribution Methods (DAM)
Specific assets held within this sector (by Class of Work (CoW)):
•
International Digital Exchange Equipment (NCDEX).
This asset class covers the construction and upgrading of Digital Switching Units and includes:
•
•
•
•
•
•
•
Construction and upgrading of the International Digital Switching Units.
Configuration Record System for DISCs.
Digital International Switching Centres (DISCS).
Test Consoles associated with International Switching Centres.
International Integrated Switch Services Unit (ISSU).
Switching equipment associated with the International Virtual Network and other New Global Initiative Programmes.
Operation Software functionality associated with the above items.
Excludes:
•
Transmission equipment.
Costs booked/allocation
Costs are booked to the relevant Class of Work (e.g. NCDEX) and the relevant financial cost type (Gross Book Value (GBV), work in progress
and annual depreciation charge, accumulated depreciation). This sector also includes profit and loss account costs for depreciation on these
assets. Expenses associated with these assets such as internal and external labour costs are added into the relevant class of work and subject
to the same accounting treatment. All asset movements for gross book value, accumulated depreciation or work in progress are grouped
together for similar asset types, under a single F8 code. For example, the Gross Book Value (GBV) opening book value, registrations (transfers
from work in progress to gross book value) and disposals are grouped together under a single F8 code. The Accumulated Depreciation
opening value, depreciation charge for the period and depreciation in respect of disposals are grouped together under a single F8 code.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DA – Core Transmission: Cable and Other
Overview
The BT Network is split into two parts for Accounting Separation purposes – Core Transmission, and the Access Network (not included in
sector DA). The Core transmission network is used to link exchanges. For Accounting Separation (AS) purposes the Core Transmission network
is split into the Core Distribution network and the Core trunk network, illustrated below:
This sector contains the asset values and depreciation for Core transmission cable and other, including Core Transmission Synchronous Digital
Hierarchy (SDH) and Plesiochronous Digital Hierarchy (PDH), Asynchronous Transfer Mode (ATM), Cables, and Repeaters.
SDH is a key element of BT's core transmission network. SDH transmission equipment uses fibre optic Time Division Multiplexed (TDM)
technology, to provide high line speeds of 155Mbps and above.
ATM (also referred to as Broadband Integrated Services Digital Network (ISDN)) is a fast, cell-switched technology. All broadband
transmissions (whether audio, data, imaging or video) are divided into a series of cells and routed across an ATM network consisting of links
connected by ATM switches.
Cables (Optical Fibre and Metallic Pair) in the Core transmission network link exchanges (see diagram above).
Repeaters are devices inserted at intervals along a digital circuit to regenerate the transmitted signal as it loses its shape due to the effects
of noise and attenuation.
Specific assets held within this sector (by Class of Work (CoW)):
•
•
64
Core Transmission Equipment.
Synchronous Digital Hierarchy (SDH) - Construction of Synchronous Digital Hierarchy transmission equipment.
Section 3 Overview – Detailed Attribution Methods (DAM)
This asset class covers the provision and re-arrangement of synchronous transmission equipment in the Core Transmission network, to
provide core network Synchronous Digital Hierarchy (SDH) transmission capability and includes:
•
•
•
•
•
Add-Drop Multiplexers (ADMs).
Provision of Wavelength Division Multiplexing (WDM) equipment in the Core Network.
Provision of communications network.
Cross Connect Switches (Higher-order Automatic Cross-connection Equipment (HACEs)).
All terminal and Intermediate Station Equipment.
Surveillance facilities on growth equipment in the Core Transmission Network i.e. Equipment supplied with the Transmission Network Surveillance (TNS)
interface.
Miscellaneous equipment above the minor works limit.
The Synchronous Digital Hierarchy (SDH) asset class excludes equipment in the Access network.
•
ATM – Asynchronous Transfer Mode.
This asset class covers capital expenditure for Asynchronous Transfer Mode (ATM) Platform equipment. It includes provision, rearrangement
or recovery of Asynchronous transmission equipment in the core Transmission network under the Asynchronous Transfer Mode (ATM)
Programme, such as:
•
•
•
•
•
•
•
ATM Exchange and equipment.
ATM 34Mbit/s equipment at Customers premises.
ATM 155Mbit/s equipment at Customers premises.
ATM 2Mbit/s equipment at Customers premises.
ATM Miscellaneous equipment above the minor works limit.
ATM network management equipment at the exchange.
ATM Test equipment at the exchange.
The Asynchronous Transfer Mode (ATM) asset class excludes Synchronous Digital Hierarchy (SDH) and Plesiochronous Digital Hierarchy
(PDH) Transmission equipment, and Customer Access equipment.
Cables and Radio
•
MUCR – Renewal of Main Underground (Core) Cable.
This asset class covers the renewal or re-arrangement of Core Cables. Excludes work to increase network capacity
•
MUC – Construction of Main Underground (Core) Cable.
This asset class covers the provision, replacement or recovery of Core Cables. This covers all Core cable work to increase the capacity of the
network
•
CJCR – Renewal of Core Metallic Pair Cable.
This asset class covers the renewal or re-arrangement of metallic pair Core cables. Excludes work to increase network capacity, and optical
fibre cable in the core network
•
CJC – Construction of Core Metallic Pair Cable.
This asset class covers the provision, replacement and recovery of metallic pair Core cables. This covers all Core Metallic Pair Cable work to
increase the capacity of the network.
•
CJF - Construction of Core Optical Fibre Cable
This asset class covers the provision, replacement, renewal, re-arrangement or recovery of optical fibre cable in the Core Network
•
BHQ – Construction of Submarine Cable Inland.
This asset class covers the provision and re-arrangement of submarine cables for the Core Network.
•
TPWC – Construction of Core Radio Systems.
This asset class covers the provision, re-arrangement and renewal of Core Radio Systems.
Repeaters
•
CRHQ - Construction of Repeaters - Core Network (by contractors).
This asset class covers the installation and rearrangement of analogue, Plesiochronous Digital Hierarchy (PDH) or optical equipment in the
Core Network by external contractors. Excludes equipment for core or access networks, or Synchronous Digital Hierarchy (SDH) equipment
•
CRA - Construction of Repeaters - Core Network.
This asset class covers the provision, re-arrangement or recovery of:
65
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
•
•
All audio transmission equipment used for Public Switched Telephone Network (PSTN) and private circuits in the Core Network.
24 Channel PCM equipment (Line Termination Equipment (LTE), Multiplexer (MUX), signalling units and intermediate regenerators) in
the Core Network.
Pressurisation equipment associated with all Cable Junction (CJ) and Main Underground (MU) (CJ) cables.
Audio test equipment associated with the above work.
Frequency Division Multiplexing (FDM) terminal equipment and intermediate regenerators/amplifiers used in core with PeQ4 wideband
cable schemes.
Closed Circuit Television (CCTV) terminal equipment and line regenerators.
•
CRF – Construction of Repeaters, Optical Fibre - Core Network.
This asset class covers the Provision, re-arrangement or recovery of Optical Fibre for the Core Network. It includes Plesiochronous Digital
Hierarchy (PDH), Optical Line Transmission Equipment (LTE) and Intermediate Station Equipment (ISE).
•
CRD – Construction of repeaters, digital, non-optical - Core Network.
This asset class covers the provision and re-arrangement of Non-Optical fibre Core Repeaters, including all 2Mbit/s Line Transmission
Equipment (Line Termination Equipment (LTE) and intermediate regenerators) used in the Core Network on metallic pair cables, and Primary
2Mbit/s Multiplexers used for Public Switched Telephone Network (PSTN) and private circuits in the Core Network
Monitoring Equipment.
•
LTME - Network Transmission Monitoring Equipment.
This asset class covers the planning, provision, wiring, commissioning and recovery of any Exchange Data Collection Equipment, associated
processing equipment and central monitoring processing facility.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. CJCR, MUCR, SDH, MUC, TPWC, CRHQ, CRA, LTME, CRD, BHQ, CJF, CJC, CRF and
ATM) and the relevant financial cost type (Gross Book Value (GBV), work in progress, annual depreciation charge, and accumulated
depreciation). Expenses associated with these assets such as internal and external labour costs are added into the relevant Class of Work
(CoW) and subject to the same accounting treatment. Asset movements for Gross Book Value (GBV), for a particular Class of Work (CoW), are
grouped together under a single F8 code. For example, ‘Synchronous Digital Hierarchy (SDH) Core Transmission Equipment’ Gross Book
Value (GBV) opening book value, registrations (transfers from work in progress to gross book value) and disposals are grouped under a single
F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DB – Core Transmission: Duct
Overview
Duct is a pipe, tube or conduit through which underground cables are passed.
Duct in the Core transmission network is split between the Core Transmission network elements (see diagram below). This sector excludes all
ducts in the Access Network.
Specific assets held within this sector (by Class of Work (CoW)):
•
MUD/MUDR – Construction/Renewal of Backhaul/Inner Core Duct.
This asset class covers the provision and recovery/renewal of Backhaul/Inner Core Duct. Construction covers all Core Network duct work to
increase the duct capacity of the Core network. Renewal excludes work to increase duct capacity in the network
•
66
CJD/CJDR – Construction/Renewal of Backhaul/Inner Core Duct.
Section 3 Overview – Detailed Attribution Methods (DAM)
This asset class covers the provision and recovery/renewal of Core network duct. Construction covers all Core (Junction) work to increase the
duct capacity of the Core network. Renewal excludes work to increase duct capacity in the network.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. MUD, MUDR, CJD and CJDR) and the relevant financial cost type (Gross Book Value
(GBV), work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal
and external labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for Gross
Book Value (GBV), for a particular Class of Work (CoW), are grouped together under a single F8 code. For example, Backhaul/Inner Core Duct
Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to gross book value) and disposals are grouped
under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DC – Intelligent Networks
Overview
This sector contains the asset values and depreciation for the Intelligent Networks Platform. 'Intelligent network' is a network that allows
functionality to be distributed flexibly at a variety of nodes on and off the network and allows the architecture to be modified to control the
services. The most familiar Intelligent Network is the Public Switched Telephone Network (PSTN). The 'Intelligent Network' provides network
functionality beyond basic switching.
Specific assets held within this sector (by Class of Work (CoW)):
•
Intelligent Networks Platform.
INC - Construction of Intelligent Network Platform. This asset class includes all equipment and associated costs incurred as part of provision,
extension, re-arrangement and recovery of network architecture in which the service control functionality including management and
development is remote/distinct from Core and Local Public Switched Telephone Network (PSTN) switching and includes:
•
•
•
•
•
•
•
•
•
•
•
Signalling Traffic Management (STMS) equipment.
Supervising contractors on installation.
Speech Application Platforms (SAP) and Intelligent Peripherals (IP).
Service Control Point (SCP) equipment.
Link Monitors.
On site spares.
Initial Databuild associated with switches.
Testing Apparatus and initial provision of spars held for changing purposes.
Distribution frames.
INV 35/352 announcement equipment.
Signalling Point Relay (SPR) Switches.
The INC asset class excludes Public Switched Telephone Network (PSTN) Local, core and main switching units, Stand alone/standby power
plant and batteries, Derived services and Featurenet switches, and all Cashless Services equipment (including SAP).
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. INC) and the relevant financial cost type (gross book value, work in progress,
annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external labour costs
are added into the relevant class of work and subject to the same accounting treatment. Asset movements for gross book value, for a
particular class of work, are grouped together under a single F8 code. For example, ‘Construction of Intelligent Network Platform’ Gross Book
Value (GBV) opening book value, registrations and disposals is grouped under a single F8 code. The accumulated depreciation and work in
progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DD– International Transmission
Overview
This sector contains the asset values and depreciation for International Transmission. International Transmission includes International Radio
and Repeaters (asset classes NCRR and ICRR), and International Submarine Cable Systems (asset class ICSC).
67
Section 3 Overview – Detailed Attribution Methods (DAM)
Specific assets held within this sector (by Class of Work (CoW)):
•
NCRR - International Radio and Repeaters.
This asset class is used for Earth Station Capital expenditure on Broadcast Services or Shared Infrastructure Earth Station Assets. The asset
class includes Satellite Earth Stations: mobile satellite dishes, small fixed dish systems and radio equipment at Cable or earth station. It also
includes microwave links used for Broadcast Services or share infrastructure.
The NCRR asset class excludes transmission plant linking the frontier station with International Repeater stations, International Earth Station
and Radio and Repeater Equipment for (Communications Networking Services (UK) (CNS)), and Inland facing transmission equipment in
International Repeater Stations.
•
ICRR - Provision of radio and repeater equipment used in the Global Network.
This asset class includes the transmission equipment used in the Global Network at repeater stations, Satellite Earth stations, mobile satellite
dishes, small fixed dish systems and radio stations. This asset class also includes the microwave links used in the Global Network and
Trophospheric Scatter used for offshore services. This asset class also includes the equipment for Skyphone and Jetphone.
The ICRR asset class excludes inland facing transmission equipment in International Repeater stations, and Transmission plant linking frontier
stations with International Repeater stations.
•
ICSC - International Submarine Cable Systems.
This asset class covers the provision of Submarine cable systems used in the Global Network. This asset class includes International submarine
cable systems wholly or partially owned by BT.
The ICSC asset class excludes Submarine cable systems in the Inland network.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. NCRR, ICRR and ICSC) and the relevant financial cost type (gross book value, work
in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for gross book value,
for a particular class of work, are grouped together under a single F8 code. For example, ‘International Radio and Repeaters Gross Book Value
(GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are grouped under a single
F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DE – Telex Exchanges and Transmissions
Overview
This sector contains the asset values and depreciation for Telex Exchanges and Transmission. This includes the construction of Digital Telex
Exchanges (asset class TLXD), and construction of Telegraph Transmission Equipment (asset class TLT). Telex is a worldwide-switched
message service. Faster, more accurate forms of data communications, including the public packet switched networks and electronic mail
services are rapidly displacing telex.
Specific assets held within this sector (by Class of Work (CoW)):
Digital Telex Exchanges
•
TLXD - Construction of Digital Telex Exchanges.
This asset class covers the provision, re-arrangement or recovery of digital telex exchange equipment and includes:
•
•
•
All switching and associated exchange equipment (including Inland and International Telex Gateway Exchange equipment).
Teleprinters forming part of the permanent exchange or test room equipment.
Testing apparatus and spare plant held for maintenance purposes.
The TLXD asset class excludes circuits’ provision, equipment at customer’s premises, Exchange Database changes, and International Telex
equipment dedicated to Telex Transit applications.
Telegraph Transmission Equipment
•
TLT - Construction of Telegraph Transmission equipment.
This asset class covers the Provision, re-arrangement and recovery of telegraph transmission equipment and includes:
•
68
2Mbit/s primary multiplexers where they are dedicated to telex network.
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
46TDM, 60 TDM and 184 TDM multiplexers, signalling converters and associated test access equipment, and miscellaneous units
telegraph.
Testing apparatus and spare plant held for maintenance purposes.
The TLT asset class excludes Telegraph Transmission equipment dedicated to Telex Transit applications.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. TLXD and TLT) and the relevant financial cost type (Gross Book Value (GBV), work
in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant Class of Work (CoW) and subject to the same accounting treatment. Asset movements for Gross Book
Value (GBV), for a particular class of work, are grouped together under a single F8 code. For example, ‘Telegraph Transmission equipment’
Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are
grouped under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DJ – Network Enabling Computers
Overview
This sector contains the asset values and depreciation for Network Administration Computers (asset class NACC). These are computers
specifically used for administration of the BT Network, controlled from Network Administration Computer Centres (NACCs).
Specific assets held within this sector (by Class of Work (CoW)):
•
NACC - Network Administration Computer Construction (Own use).
This asset class covers the provision, installation and upgrades to Worldwide Networks (WN), Telecoms Network support computers and all
directly associated equipment, located at Worldwide Networks (WN) controlled Network Administration Computer Centres (NACCs). Also the
creation, provision and installation of associated software which provides real-time remote control, testing and management of the Network
and includes:
•
•
•
•
Development costs that are built into supply costs.
Labour and support, stores issues and external payments associated with the above provisions.
Operating system software purchased as part of computer system, or its upgrade.
Computer systems purchased by Worldwide Network (WN) as "fallback" capacity for Telecoms Network support systems.
Excludes:
•
•
•
•
Leased, rented or hired computers for Telecoms Network Support systems (equipment and software).
Those elements of network systems external to the Network Computer Centres, e.g. PCs, terminals, printers, communications links and
exchange/transmission interface kit.
All computer, process controlled equipment or software which forms part of the BT Telecom Operational Network e.g. Telephone/Telex
Exchanges, Exchange based Test and Maintenance Aids or any real-time call processing equipment.
Computers and software sited other than in Network Administration Computer Centres (NACCs).
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. NACC) and the relevant financial cost type (Gross Book Value (GBV), work in
progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant Class of Work (CoW) and subject to the same accounting treatment. Asset movements for Gross Book
Value (GBV), for a particular class of work, are grouped together under a single F8 code. For example, ‘Network Admin Computers' Gross
Book Value (GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are grouped
under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DK – Private Circuits and SMDS
Overview
This sector contains the asset values and depreciation for Private Circuits and Switched Multimegabit Data Services (SMDS) (asset classes
DTTM, DTTK, DTTS, FBS, LFS, RATE, and RAT). These asset classes are for the following:
69
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
•
•
•
•
DTTM - Construction of Customer Wideband Services.
DTTK - Construction of Kilostream/ACE Services.
DTTS - Construction of Short-Haul Multimode Optical Fibre Private Circuits.
FBS - Flexible Bandwidth Services.
LFS - Construction of Local Optical Fibre Service Access Switches.
RATE - Remote Access Test Equipment.
RAT - Maintenance of RATES Equipment.
Specific assets held within this sector (by Class of Work (CoW)):
•
DTTM - Construction of Customer Wideband Services.
This asset class covers contract, stores and labour for the construction, installation, commissioning, replacement, re-arrangement of
equipment at local exchanges and customer’s premises to carry wideband services to customers and includes:
•
•
•
•
Wideband bearer electronics to support KiloStream services delivered over 2Mbit/s bearer, Megastream (all types), Integrated Services
Digital Network (ISDN30), FeatureNet, Linkline/Callstream, Flexible Bandwidth Service (FBS) MusicLine, Switched Multimegabit Data
Services (SMDS), Interconnect and similar Products.
Higher order line systems provided to carry Customer Wideband Services only.
Access Synchronous Digital Hierarchy (SDH).
Test equipment for testing and maintenance of customer’s wideband services.
Excludes:
•
•
•
•
•
•
•
•
•
•
Other KiloStream services NOT delivered over 2Mbit/s bearer.
Equipment at customer premises connected to the customer side of the Network Terminating Unit.
Work involved in providing local line to customers premises, jumpering and overall service tests.
External cables, duct, regenerator housing and microwave radio links between the customer’s premises and serving exchange.
All plant used to link together the serving sections, e.g. core and core transmission cable, equipment and systems.
Higher order line systems provided to extend the access or core network.
Short haul and Fibre Distributed Data Interface Optical Fibre circuits and cables.
Asymmetric Digital Subscriber Line equipment.
Maintenance and recovery work.
DTTK - Construction of Kilostream/Automatic cross Connect Equipment (ACE) Services.
This asset class covers contract, stores and labour for the construction, installation, commissioning replacement, rearrangement of
Kilostream core network equipment for KiloStream Private Circuits e.g. Automatic Cross Connect Equipment (ACE), Multiplexing Site Units
(MSU) and Equipment Network Access (ENA) Contract, stores and labour for the work associated with the Analogue Offload Programme, and
supply and installation of all customer end related equipment used for Kilostream Private Circuits (e.g. Line cards, Modern Units, and
Network Terminating Units) and includes:
•
•
•
•
Cost of stores or other materials ordered for the provision of KiloStream service (e.g. Line Cards, modem units, NTU).
The racking and cabling for KiloStream core network equipment.
Test equipment to be used solely on the testing and maintenance of KiloStream service.
All stores and labour associated with the provision, rearrangement and installation of Analogue NTUs, line cards etc. used for the
analogue closure programme i.e. the rearrangement of analogue private circuit onto the KiloStream network.
Excludes:
•
•
•
•
•
•
•
•
70
The construction, installation, commissioning and maintenance of KiloStream Plus, KiloStream N and KiloStream M at an exchange and
customers premises.
Provision, re-arrangement or cessation of KiloStream circuits work on Private Service Order e.g. jumpering, setting up, lining up and
end to end testing.
All KiloStream circuits’ provision work involved in proving of local line to customers premises, the fitting of NTU in customers' premises
and fitting of tributary and modem cards at local exchange.
Sub-Multiplexer or other equipment at customer premises connected to the customer side of the KiloStream NTU.
All plant used to link together the serving sections, e.g. Core and Core Transmission cables and equipment.
External cables, duct, regenerator housings and microwave links between the customer’s premises and serving exchange of a serving
section.
Construction, Short-Haul Multimode Optical Fibre Private Circuits.
DTTS
Section 3 Overview – Detailed Attribution Methods (DAM)
This asset class covers construction, provision, installation, commissioning, replacement, rearrangement or recovery of electronic equipment
(but not service) for the various Short Haul Data Services (SHDS) e.g. Local Area Network (LAN) Extension Service 1,2,3 and 155 - Data
Extension Service 1,2 and 3 - FIS 1,2,3 and 4 and includes:
•
•
•
Dedicated Short Haul Data Services (SHDS) alarm/monitoring and line terminating equipment at the customer’s premises
Materials and installation of Short Haul Data Services (SHDS) Network Termination Units (NTUs).
Internal cable from the optical fibre termination to the service module in the customer's premises.
This asset class excludes all KiloStream and Megastream equipment, provision of duct and associated items, Provision and splicing of all
external optical fibre and associated items, and any equipment and work involved in the provision of terminals or cables for connection to
the customer-side interfaces of the above services.
•
FBS - Flexible Bandwidth Services.
This asset class covers contract, stores and labour for the construction, installation, commissioning, re-arrangement and recovery of
equipment at exchanges and customer premises for Flexible Bandwidth Services (FBS) and includes:
•
•
Newbridge Networks Limited charges for: Installation and commissioning of all customer sites 36xx multiplexers, installation and
commissioning of Flexible Bandwidth Services (FBS) Core nodes and equipment associated with the provision of core nodes and the
provision of local stores required to make ready the core node accommodation.
Provision of Flexible Bandwidth Services (FBS) test equipment, and Flexible Bandwidth Services (FBS) Management Information
Systems (MIS), software and hardware.
This asset class excludes:
•
•
•
Flexible Bandwidth Services (FBS) maintenance, any other Wideband services, and KiloStream and Wideband bearers for a Flexible
Bandwidth Services (FBS) customer including planning, stores and provision.
Construction of Local Optical Fibre Service Access Switches.
LFS.
This asset class covers the provision, re-arrangement, recovery, replacement and renewal of Service Access Switches (SAS) for the Local
Access Optical Fibre Network and includes:
•
•
•
•
•
Service Access Switches (SAS) equipment, racking and associated test multiplexers.
Initial provision and initial testing of spare equipment held at Service Access Switches (SAS) for maintenance purposes.
Service Access Switches (SAS) Digital Distribution Frames (DDFs).
Internal Copper cables (e.g. Between Service Access Switches (SAS) items, to telephone exchange Digital Distribution Frames (DDFs)
and to repeater station Digital Distribution Frames (DDFs)).
Materials, installation and commissioning.
This asset class excludes Exchange Service Module (ESM) and associated higher order and primary multiplexers, optical termination racks,
external cables to telephone exchanges and associated line transmission systems and intermediate multiplexing equipment, equipment at
customer premises e.g. Network Service modules and equipment of and link to Service Access Control Centres (SACCs).
•
RATE/RAT - Remote Access Test Equipment.
These asset classes covers the installation of Private Circuits remote test access equipment and central test facility equipment in exchanges
and control centres, re-jumpering of existing private circuits and compilation of records. Also the testing, repair and records work carried out
on the remote access test equipment itself, including any associated computer or control equipment.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. DTTM, DTTK, DTTS, FBS, LFS, RATE, and RAT) and the relevant financial cost type
(Gross Book Value (GBV), work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these
assets such as internal and external labour costs are added into the relevant Class of Work (CoW) and subject to the same accounting
treatment. Asset movements for gross book value, for a particular Class of Work (CoW), are grouped together under a single F8 code. For
example, ‘Flexible Bandwidth Service' Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to Gross
Book Value (GBV)) and disposals are grouped under a single F8 code. The accumulated depreciation and work in progress balances are shown
in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DF – Accommodation Plant (Network)
Overview
71
Section 3 Overview – Detailed Attribution Methods (DAM)
This sector contains the asset values and depreciation for Network Plant Accommodation. Accommodation plant is the term used for
accommodation assets necessary for the operation of network equipment for example, ventilation and cooling plant. The sector includes
equipment-related Accommodation plant, i.e. within Network Operational Buildings (asset class ACPN), and Computer Centre
Accommodation Plant (asset class ACPC).
Specific assets held within this sector (by Class of Work (CoW)):
Accommodation Plant - Network Equipment
•
ACPN - Accommodation Plant, Equipment Related - Network Operational Buildings.
This asset class covers the cost of construction, provision, installation and recovery of Network equipment related plant (also known as
accommodation plant) and includes:
•
•
•
•
•
•
Building work directly related to the installation of items of Equipment-Related Plant, e.g. strengthening buildings or foundations to
take Equipment-Related Plant.
Electric light and power enabling installation of, or supporting operation of, Network equipment. This will be in operational buildings, or
within distinct operational areas in shared buildings.
Ventilation and cooling plant for Network areas.
Other Plant directly associated with items of Equipment Related Plant e.g. movable partitions when provided as part of a Network
equipment environment.
Equipment Lifts and hoists.
The security equipment for Operational areas.
This asset class excludes power and lighting, ventilation and cooling plant, and other plant for non-operational areas, welfare facilities e.g.
toilets and estate security provision.
•
ACPC - Accommodation Plant - Computer Centres.
This asset class is used for the cost of construction, provision and installation of equipment that specifically is essential to, or is essential to
the support of computer equipment in BT, Development and Procurement and Group Computer Services computer centres and includes:
•
•
•
•
•
•
Work specific for the construction of a computer room.
Work for provision of power for computer rooms.
Work specific to suppression of electrical transient noise.
Work on air conditioning required specifically for the efficient operation of the computer installation.
Provision of fire protection equipment, required for a computer installation, over and above that required for normal office safety.
Provision of storage facilities for computer media e.g. media racking for magnetic tapes etc.
This asset class excludes Maintenance of computer assets, Accommodation plant work not in a 'Group Computer Services (GCS)' managed
computer centre (Group Computer Services (GCS) are responsible for the operation of BT Group Computing mainframe facilities),
Accommodation plant work carried out in a Group Computer Services (GCS) managed computer centre, but not essential to the site and
accommodation of computer equipment, and Security plant work, including all access security systems.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. ACPN, ACPC) and the relevant financial cost type (Gross Book Value (GBV), work
in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant Class of Work (CoW) and subject to the same accounting treatment. Asset movements for gross book
value, for a particular Class of Work (CoW), are grouped together under a single F8 code. For example, ‘Accommodation Plant for Computer
Centre' Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to gross book value) and disposals are
grouped under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DG – Network Power
Overview
This sector contains the asset values and depreciation for Telecom Network Power Plant (asset class TPC). Power plant systems and
distributions are used to feed network operational equipment in operational buildings i.e. telephone, telegraph and telex exchanges, radio
and repeater stations.
Specific assets held within this sector (by Class of Work (CoW)):
Telecom Power Plant
•
72
TPC - Construction of Telecom Power Plant.
Section 3 Overview – Detailed Attribution Methods (DAM)
This asset class covers the provision, installation, construction, replacement and re-arrangement of power plant systems and distributions
feeding network operational equipment in operational buildings, i.e. telephone, telegraph and telex exchanges, radio and repeater stations
and includes:
•
•
•
•
•
DC power plant including power equipment racks, rectifiers, batteries and distributions up to the load interface.
High voltage switch gear and transformers at mains supply frequency.
Installation cost and equipment supply of power equipment racks, rectifiers, batteries and distribution up to the load interface by BT
staff.
AC power plant, uninterruptible power supplies, AC distribution systems, fixed and mobile standby generators.
Replacement of plant with expired life.
Excludes:
•
•
•
•
•
Electrical intake into the building.
Plant maintenance, including fault clearance and replacement of components.
Power plant and batteries at customer’s premises.
International power plant, power plant used exclusively in general purpose and computer centres.
Recovery work
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. TPC) and the relevant financial cost type (gross book value, work in progress,
annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external labour costs
are added into the relevant class of work and subject to the same accounting treatment. Asset movements for gross book value, for a
particular Class of Work (CoW), are grouped together under a single F8 code. For example, ‘Telecom Network Power Plant' Gross Book Value
(GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are grouped under a single
F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DL – Public Payphones
Overview
This sector contains the asset values and depreciation for Public Payphones (asset class PCOH). These are coin-or card- operated phones
installed in a public place. The owner of the site may get a commission for allowing the Communications Provider to install it. Payphones
operate over the standard Public Switched Telephone Network (PSTN) network.
Specific assets held within this sector (by Class of Work (CoW)):
•
PCOH - Installation of Street Payphone Housings.
This asset class covers the planning, provision and recovery of PCO ('Public call Office', or Payphone) housing, including lighting and power,
other than Managed Sites and includes:
•
•
•
The complete replacement of non-managed payphone housing with one of a different type.
Plant held for installation purposes for above.
Labour costs for above.
This asset class excludes any costs associated with Touchpoint terminals or Intelligent Vending terminals, payphone provision on sites for
which a Managed Site agreement is in operation, and the complete replacement of non-managed payphone housing with one of the same
type.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. PCOH) and the relevant financial cost type (Gross Book Value (GBV), work in
progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant Class of Work and subject to the same accounting treatment. Asset movements for gross book value,
for a particular Class of Work (CoW), are grouped together under a single F8 code. For example, ‘Street Payphone Housings' Gross Book Value
(GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are grouped under a single
F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
73
Section 3 Overview – Detailed Attribution Methods (DAM)
Sector DM - Apparatus
Overview
BT offers services to customers to rent telephony and other apparatus, without the need to purchase outright the apparatus. BT receives
rental income from the customers, and the apparatus assets are held in BT’s books as BT fixed assets. Sector DM contains the asset values and
depreciation of Apparatus equipment. Examples of the types of apparatus held by BT and rented out to customers include (listed by Class of
Work (CoW)):
•
CPCDR – Capitalised depreciation CPE - Corded Telephones – Residential.
This relates to the stores costs of provision and installations (excluding shift and change) have rented Corded Telephone Products for
customers paying the residential tariff.
•
CPCDB – Capitalised depreciation on CPE - Corded Telephones, Business.
This relates to the stores costs of provision and installations (excluding shift and change) have rented Corded Telephone Products for
customers paying the business tariff
•
CPBSB – Capitalised depreciation on CPE - Big/Large Switches, Business.
This relates to the stores costs of provision and installation Products (excluding shift and change) have rented Switches (defined as Big and
Large in size, with over 80 ports), for use by business customers.
•
CPMSB – Capitalised depreciation on CPE - Medium/Small Switches, Business.
This relates to the stores costs of provision and installations (excluding shift and change) have rented Medium/Small Switch Products for use
by Business customers. Medium/Small Switches are usually classified as containing up to 80 ports.
•
RPE - Installation of Rented Payphones.
This covers the planning, provision, installation and recovery or re-arrangement of Renters' Payphone Equipment. This covers the main
payphone equipment, ancillary equipment (e.g. back plates or hoods), wiring to the payphone unit, etc.
•
CPFXB – Capitalised depreciation on CPE - Fax Machines, Business.
This relates to the stores costs of provision and installations (excluding shift and change) have rented Facsimile Machine Products for
customers paying the Business Tariff
Costs booked/allocation
Costs are booked to the relevant class of work (e.g. CPCDR, CPMSB, etc.) and the relevant financial cost type (Gross Book Value (GBV), work
in progress, annual depreciation charge, and accumulated depreciation). Asset movements for Gross Book Value (GBV), for a particular Class
of Work, are grouped together under a single F8 code. For example, ‘Capitalised depreciation on CPE – Medium/Small Switches’ Gross Book
Value (GBV) opening book value, registrations (transfers from work in progress to Gross Book Value) and disposals are grouped under a single
F8 code. The accumulated depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DN - Motor Transport
Overview
This sector contains the asset values and depreciation of motor vehicles used in BT’s business. BT operates a range of vehicles, purchased as
new vehicles or acquired under lease arrangements. Vehicle assets are recorded under two main Classes of Work (CoW):
•
NVAC
New Vehicles and Accessories – purchased and includes:
•
•
•
•
•
Pool cars.
Vans.
Light Goods Vehicles.
Heavy Goods Vehicles and 4 wheel drive vehicles.
Trailers.
This covers a range of sizes of vehicles (e.g. 300, 500, 750kg vans or minibuses), and a range of operating periods (e.g. 1 year, 3 year and 6
years etc.)
•
74
LNV.
Section 3 Overview – Detailed Attribution Methods (DAM)
Leased New Vehicles
This Class of Work is similar to the NVAC class, but relates to vehicles which have been acquired under a finance lease, contract hire or hire
purchase arrangement, rather than immediate purchase. The Leased New Vehicles class excludes vehicles on short-term hire i.e. plant leased
for a period of less than three months in any one year.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. NVAC, LNV) and the relevant financial cost type (Gross Book Value (GBV), work in
progress, annual depreciation charge and accumulated depreciation). Asset movements for Gross Book Value (GBV), for a particular Class of
Work (CoW), are grouped together under a single F8 code. For example, ‘New Vehicles and Accessories - purchased’ Gross Book Value (GBV)
opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are grouped under a single F8
code. The accumulated depreciation balance is shown in a separate F8 code.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DO – General Computers
Overview
BT holds general computer assets to support its main business activities and operations. This sector contains the asset values and depreciation
costs for general computers. Specific assets held within this sector (by Class of Work (CoW)).There is two main Classes of Work (CoW) showing
computer assets in this sector:
•
COMPA - Computer (BT own use) mainframes and Peripherals (FAR).
This Class of Work (CoW) contains computer mainframes and peripheral assets. This covers computers, which require a controlled
environment (e.g. air conditioning and water-cooling etc) rather than personal computers used by employees. The computer mainframe
Class of Work (CoW) includes tape drives, disk drives, silos, dedicated terminals and such like (note: dedicated means connected directly to
the mainframe and within the secured computer installation (not merely secure office accommodation)).
•
COMPE - Computer (BT own use) Personal Computers (FAR).
This asset class covers personal computers used by BT employees in the business. It includes processors, display monitors, keyboards, internal
CD ROM and modems, one or more diskette drives, internal fixed-disk storage and operating systems purchased as an integral part of the PC.
The asset class excludes all computer/processor-controlled equipment which forms part of the BT Operational Network, such as telephone/
telex exchanges; exchange based test and maintenance aids, or any real time call processing equipment.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. COMPE) and the relevant financial cost type (Gross Book Value (GBV), work in
progress, annual depreciation charge, and accumulated depreciation). Asset movements for Gross Book Value (GBV), for a particular Class of
Work (CoW), are grouped together under a single F8 code. The accumulated depreciation and work in progress balances are shown in
separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DP - Land
Overview
This sector shows the asset values for land held by BT. the sector shows both the historic cost values and the Current Cost Accounting
adjustments required to provide a current cost valuation of the assets.
Specific assets held within this sector (by Class of Work (CoW)).
The main classes of work against which land values are recorded are:
•
•
•
Land freehold.
Land long lease.
Land short lease.
Costs booked/allocation
75
Section 3 Overview – Detailed Attribution Methods (DAM)
Costs are booked to the relevant Class of Work (CoW) (e.g. LFH – Land Freehold) and the relevant financial cost type (Gross Book Value (GBV),
work in progress, annual depreciation charge, and accumulated depreciation). Asset movements for Gross Book Value (GBV), for a particular
Class of Work (CoW), are grouped together under a single F8 code. For example, ‘Land Freehold’ Gross Book Value (GBV) opening book value,
registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are grouped under a single F8 code. The accumulated
depreciation balance is shown in a separate F8 code.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DQ - Buildings
Overview
This sector contains the asset values and depreciation for buildings fixed assets. The buildings relate to the freehold, long leasehold and short
leasehold buildings owned by BT, but exclude accommodation plant (e.g. air conditioning and heating units), furniture and fittings which
are covered in separate sectors. BT buildings include corporate office buildings (across the country), BT shops and service centres, and
network buildings (e.g. telephone exchange buildings) owned by BT. The sector also contains values for the buildings owned by ‘non-core’
BT businesses (subsidiaries, self-accounting units etc).
Sector breakdown
The key items recorded in this sector are shown below:
Core business
•
•
•
•
•
•
•
•
•
•
Gross Book Value of freehold buildings.
Gross Book Value of long leasehold buildings.
Gross Book Value of short leasehold buildings.
Gross Book Value of buildings new construction.
Accumulated Depreciation of freehold buildings.
Accumulated Depreciation of long leasehold buildings.
Accumulated Depreciation of short leasehold buildings.
Depreciation charge for freehold buildings.
Depreciation charge for long leasehold buildings.
Depreciation charge for short leasehold buildings.
Non-core business
•
•
•
Gross Book Value for registered buildings.
Accumulated Depreciation for registered buildings.
Depreciation charge for registered buildings.
Costs booked/allocation
Costs are booked to the relevant Class of Work (freehold buildings, long leasehold buildings, short leasehold buildings, shops and security
buildings) and the relevant financial cost type (Gross Book Value (GBV), work in progress and annual depreciation charge, accumulated
depreciation). This sector also includes profit and loss account costs for depreciation on buildings. All asset movements for Gross Book Value
(GBV), accumulated depreciation or work in progress are grouped together for similar building types, under a single F8 code. For example,
the Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV)) and disposals are
grouped together for freehold buildings under a single F8 code. The Accumulated Depreciation opening value, depreciation charge for the
period and depreciation in respect of disposals are grouped together for freehold buildings under a single F8 code. Assets are allocated to
AG105, Group Property.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method.
Sector DR - Accommodation Plant (Landlords)
Overview
76
Section 3 Overview – Detailed Attribution Methods (DAM)
This sector contains the balance sheet fixed asset values and depreciation costs for accommodation plant. Accommodation plant is held in
BT’s freehold, long leasehold and short leasehold buildings, and contains asset items such as furniture and sundry other items used in the
buildings. The key Classes of Work (CoW) contained in this sector include:
•
•
•
•
AFH- Accommodation Plant Freehold, comprising plant contained in freehold buildings.
ALL - Accommodation Plant Longlease, comprising plant contained in long leasehold buildings.
ASL - Accommodation Plant Shortlease, comprising plant contained in short leasehold buildings.
FRNCP - Furniture, comprising the costs of installation of general office furniture (e.g. desks, chairs, cabinets, cupboards and
bookcases).
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. AFH) and the relevant financial cost type (Gross Book Value (GBV), work in
progress, annual depreciation charge and accumulated depreciation).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DS – Office Machines
Overview
This sector contains Big and Large Switches (Class of Work (CoW) IDX) and Office Machines (Class of Work (CoW) OM).
Specific assets held within this sector (by Class of Work (CoW)):
•
IDX - Big and Large Switches.
This asset class covers the provision of all Big and large switches and of Small/Medium switches with an installed cost in excess of £1500 for
the COMMSURE (business continuity solutions) scheme. The COMMSURE scheme provides switch systems to be held on stand-by, to provide
participating customers with temporary service in the event of an emergency it includes:
•
•
•
The provision, installation and recovery of all switch systems (as defined above) where provided as a BT service installation.
Computer Equipment used to manage switch.
Video Conferencing Equipment supplies for Video Conferencing rooms for BT Own use.
This asset class excludes Switches provided with an installed cost less than £1500, and assets relating to CD Call Centre DMS100s.
•
OM - Office machines (BT own use).
This asset class covers the procurement and installation of office machines for BT's own use, where the cost is £1,500 or more and includes:
•
•
Video-recorders/players and television sets.
Photocopiers and reprographic equipment.
77
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
•
Word processors, typewriters and dictation equipment.
Overhead and slide-projectors, electronic whiteboards.
Paper shredders, enveloping/inserting machines, postal franking machines.
Microfiche and microfilm readers and reader-printers.
Excludes:
•
•
•
•
•
•
•
PC's, mini-computer systems, printers and other peripheral equipment.
Maintenance of office machines.
Medium and small switches, telex and telephony apparatus and cabling, recording and answering machines, facsimile machines,
modems and other business apparatus Products.
The hire of office machines.
Fans, clocks and other items of accommodation plant.
Big and Large switches (see IDX).
Battery or hand-powered office equipment.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. IDX, OM) and the relevant financial cost type (Gross Book Value (GBV), work in
progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant Class of Work (CoW) and subject to the same accounting treatment.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DT – 21 Century Network
Overview
This sector contains the asset values and depreciation for 21C Network. The various main asset groupings are listed below:
21C Network contains various categories of assets:
•
•
•
•
•
•
MSAN (Multi Service Access Nodes).
Metro/Core Nodes.
21C WDM Transmission (Wave Division Multiplexing).
I-Nodes (Call Servers).
Ethernet Switches.
CCI (Common Capability Intelligence).
Multi-Service Access Nodes provide customer access into the network for Voice, Broadband and some Connectivity via line-cards and the
traffic generated is sent to Metro Nodes for switching. This can be via other MSANs.
MSANs are Copper MSANs and Fibre MSANs, the former serving customers over a copper connexion and the latter over a Fibre connexion.
MSANs use WDM transmission for traffic to and from the Metro Node.
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Section 3 Overview – Detailed Attribution Methods (DAM)
Ethernet Switches are for Connectivity access into the network and are located at sites that can take advantage of WDM transmission to send
and receive traffic to the Metro node.
Metro Nodes switch traffic and contain the intelligence to direct its path. All traffic will traverse the Metro Node to some degree whether it
falls into the category of Voice, Broadband or Connectivity.
Core Nodes are a special type of Metro Node where there is a mesh or net of transmission between them. Most Core nodes are connected to
all other Core Nodes.
I-Nodes are used just for Voice customers and contain intelligence for numbering and the intelligence for routing i.e. Call Set-Up and
Network Features.
Common Capability Intelligence is a set of re-usable components used to build BT's products and services. It includes session management
and intelligence voice routing, authentication of customer identity, identification of customer location and instant messaging.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g.MSANF, MSANH,I-NODE) and the relevant financial cost type (gross book value,
work in progress, annual depreciation charge, accumulated depreciation). Expenses associated with these assets such as internal and external
labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for Gross Book Value
(GBV), for a particular Class of Work (CoW), are grouped together under a single F8 code. For example, MSAN opening book value,
registrations (transfers from work in progress to gross book value) and disposals are grouped under a single F8 code. The accumulated
depreciation and work in progress balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DH – Capital Miscellaneous
Overview
This sector contains the asset values and depreciation for Miscellaneous Capital (asset classes GSNM, LXTM, COFF). These asset classes
provide the following:
•
•
LXTM - Local Exchange test and measure equipment.
COFF - Admin and switch site office furniture and fittings.
Specific assets held within this sector (by Class of Work (CoW)):
Construction, Local Exchange Test and Measure Equipment.
•
LXTM - Provision of common or centralised test, monitoring or access equipment for Local Exchanges/Local Lines, that is not directly
associated with a particular exchange system/line plant type and where the estimated cost does not fall within the minor works
authority limit.
Includes:
•
•
•
•
Automatic pair identification/record verification systems for local line copper cables.
The "Line Testing Systems" (LTS) for exchange lines, whether at exchanges or control centres or external plant maintenance controls.
The "Surveillance of Cables on Overhead and Underground Network" (SCOUR) system, whether at exchanges or control centres or
external plant maintenance controls.
Multi-exchange type test gear at repair centres.
Excludes:
•
•
•
•
•
•
Maintenance, except of Line Testing Systems (LTS)/Surveillance of Cables on Overhead and Underground Network (SCOUR) equipment
The "Remote Access Test Equipment System" for PCs.
Computers sited within non-network computer centres.
General purpose testing and measuring equipment.
Operations and maintenance control/unit equipment.
Local Fibre Service Access control centre equipment.
Costs booked/allocation
Costs are booked to the relevant Class of Work (CoW) (e.g. GSNM, LXTM, and COFF) and the relevant financial cost type (Gross Book Value
(GBV), work in progress, annual depreciation charge, and accumulated depreciation). Expenses associated with these assets such as internal
and external labour costs are added into the relevant class of work and subject to the same accounting treatment. Asset movements for Gross
Book Value (GBV), for a particular Class of Work (CoW), are grouped together under a single F8 code. For example, ‘Local Exchange Test and
Measure Equipment' Gross Book Value (GBV) opening book value, registrations (transfers from work in progress to Gross Book Value (GBV))
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Section 3 Overview – Detailed Attribution Methods (DAM)
and disposals are grouped under a single F8 code. The accumulated depreciation and work in progress balances are shown in separate F8
codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector DI – Other Non Voice Plant
Overview
This sector contains the asset values and depreciation for other non-voice plant. These asset classes are for the following:
•
•
•
•
•
•
•
•
•
MMC - Multimedia Capital.
IPNC - IP Network Capital.
ICPCO- Internet Data Centre Capital.
NCNV - International Non-Voice Network.
SYNCA - Assets to run and manage Syncordia Services Contracts.
IDCMP - Global Services Application Service Capital.
GMMC - Genie Multimedia Capital.
REDC - Bureau Services.
INCAC - INCA Project Fixed Assets.
Specific assets held within this sector (by Class of Work (CoW)):
•
MMC - Multimedia Capital.
This asset class covers all equipment and associated costs incurred solely by Internet and Multimedia Services (IMS) as part of the basic
provision, extension, re-arrangement and recovery of equipment associated with the provision of Internet Protocol (IP) Products and
includes:
•
•
•
•
Routers purchases by/for Internet and Multimedia Services (IMS) and spares.
Software and licenses.
Power and environmental equipment.
Server equipment, including on site spares.
Excludes:
•
•
Maintenance and support staff, and any network transport related equipment such as routers and cascade switches.
IPNC – Internet Protocol (IP) Network Capital.
This asset class covers all equipment and associated costs incurred solely network BT as part of the basic provision, extension, re-arrangement
and recovery of the Internet Protocol (IP) network and includes:
•
•
•
•
•
•
•
Dial Ports.
Router equipment, both exchange and customer based.
Local Area Networks (LANs).
Switched Multimegabit Data Services (SMDS) Cascade switches used within the Internet Protocol (IP) network.
Radius, new and mail servers.
Testing apparatus and provision of spares.
Software and licences.
Excludes:
Interactive Multimedia Services Product related equipment (i.e. servers for campus world, talk 21 etc.), standby power supplies, ongoing
maintenance and servicing, Switched Multimegabit Data Services (SMDS) Cascade switches used for other (non multimedia) services, and
management station support staff.
•
ICPCO - Internet Data Centre Capital.
This asset class covers all capital equipment and associated costs incurred, by and on behalf of, Global Services Content hosting as part of the
build, fit out and operation of its Internet Data Centres and includes:
•
80
Software and licenses.
Section 3 Overview – Detailed Attribution Methods (DAM)
•
•
•
•
•
On site spares.
Routers.
Racking and Cabling.
Data Centre environment equipment.
Servers.
Excludes:
Maintenance and servicing costs, Global Services Content Hosting Leasing, Internet Protocol (IP) Network Capital, Global Services Content
Hosting Maintenance, Openworld Product specific equipment, and all other current account activity.
•
NCNV - International Non-Voice Network.
This asset class is used by BT World Wide Web (WWW) Technology and International Services Operations for International Non-Voice
equipment on infrastructure projects not associated with specific Products e.g. Network management Centre equipment not classified as
Test equipment and includes:
•
•
•
International Business Service Centre (ISBC) equipment.
International Featurefax equipment.
Voice Frequency Transmission (VFT) equipment and TDM equipment dedicated to Transit applications.
Excludes:
•
•
•
The procurement of non-voice network equipment for the Global Network for Global Venture.
Telex equipment used for BT's national and non-international public telex services.
Equipment for the provision of private circuits.
SYNCA - Assets for Syncordia Services Contracts.
SYNCA - This asset class covers assets purchased to run and manage Syncordia Services Outsourcing Contracts. This asset class includes all
asset purchases undertaken in order to run and/or manage a Syncordia Services Outsourcing Contractors.
•
IDCPM - Global Services Application Service Capital.
IDCMP - This asset class covers all capital equipment and associated costs incurred by, and on behalf of Global Services Application Service
and includes:
•
•
•
•
•
•
•
Servers.
Backup hardware.
Software and Licences.
Routers.
Data Centre environment equipment.
On site spares.
Racking and Cabling.
Excludes:
•
•
Internet Protocol (IP) Network Capital, Maintenance and Serving costs and all other current account activity.
Construction of Bureau Services.
REDC - This asset class covers the direct costs of providing, rearranging or recovering Telecom Red equipment, and necessary power plant
authorised by Telecom Red. This asset class includes RedCARE and ABC carrier equipment and Red Host Computers.
This asset class excludes Other Alarms signalling over Private Services or by using autodiallers through the Public Switched Telephone
Network (PSTN), and the cost of providing Private Services or Public Switched Telephone Network (PSTN) lines bearing Red carrier signals.
•
INCAC - INCA Project Fixed Assets.
INCAC - This asset class covers assets provided to run and manage the "INCA"/Defence Fixed Telephony Service project contract and includes:
Security devices, e.g. encrypters.
•
•
•
Fixed telecom equipment, for example CISCO routers, switches.
Equipment to fit out Operator Centres including Meridian Switches, Directory Enquiries systems.
Servers and associated equipment to run Local Area Network (LAN) and Wide Area Network (WAN), plus support equipment such as
backup generators and peripherals.
Excludes:
•
Other BT rented equipment, BT own use equipment and maintenance of INCA/DFTS equipment.
Costs booked/allocation
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Section 3 Overview – Detailed Attribution Methods (DAM)
Costs are booked to the relevant Class of Work (CoW) (e.g. MMC, SYNCA, ICPCO, IPNC, GMMC, REDC, IDCMP, NCNV, and INCAC) and the
relevant financial cost type (Gross Book Value (GBV), work in progress, annual depreciation charge, and accumulated depreciation).
Expenses associated with these assets such as internal and external labour costs are added into the relevant Class of Work (CoW) and subject
to the same accounting treatment. Asset movements for Gross Book Value (GBV), for a particular Class of Work (CoW), are grouped together
under a single F8 code. For example, ‘Multimedia Capital' Gross Book Value (GBV) opening book value, registrations (transfers from work in
progress to Gross Book Value (GBV)) and disposals are grouped under a single F8 code. The accumulated depreciation and work in progress
balances are shown in separate F8 codes.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector E4 – Materials Awaiting Installation
Overview
This sector relates to the balance sheet value of materials awaiting installation as network fixed assets in BT’s business. The assets are referred
to as fixed assets stock, originating from engineering stores.
Much of the balance of the stock is held by BT Wholesale, in relation to network installation. Smaller stock balances are held by other parts
of the business, including self-accounting units.
Costs booked/allocation
Asset values of materials awaiting installation are attributed to accounting separation cost pools based on an analysis of the stock reports,
which map different material balances against specific cost pools.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector E7 - Other Investments
Overview
This sector represents the shares of investments in subsidiaries and associated undertakings. These investments are reported through the
Group Finance Return, investments in subsidiaries, for example, are recorded as ‘Fixed Asset Investments – Group Undertakings, closing Net
Book Value’.
Costs booked/allocation
The balance sheet value of other investments is attributed to the Retail Residual Markets, in line with the treatment of non-regulated
subsidiaries.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector EA - Software
Overview
BT purchases and develops internally a range of software to support its business activities, the costs of which are recorded against the Class
of Work (CoW) ‘833’ software. This sector contains the costs and asset values associated with capitalised software in BT. There are two main
types of software:
•
Application system software.
Designed to meet a specific business need with an established intended use (and not for use for any other purposes).
•
Operating system software.
Manages the basic operations of a computer system and the flow of information into and out of the main processor.
Costs booked/allocation
Costs are booked to the Class of Work (principally ‘833’ software for Sector EA) and the relevant financial type (Gross Book Value (GBV), work
in progress, annual depreciation charge, and accumulated depreciation). This includes capitalised pay costs (booked to work in progress)
associated with software development. Asset movements for gross book value for a particular class of work are grouped together, under a
single F8 code. For example, F8 code shows 4A8330 contains the gross book value – opening balance, write-offs, and additions – for the
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Section 3 Overview – Detailed Attribution Methods (DAM)
software Class of Work (CoW). Similarly, the accumulated depreciation balances and work in progress balances are shown in separate F8
codes.
The F8 code for Gross Book Value (GBV) is attributed using the ‘SOFTCAP’ base methodology (relevant to each Organisational Unit Code
(OUC) incurring capital costs). The F8 codes containing work in progress values are attributed using the ‘SOFTWIP’ base methodology
(relevant to each Organisational Unit Code (OUC) incurring work in progress costs). The F8 codes containing depreciation values are
attributed using the ‘SOFTDEP’ base methodology. These base methodologies are described in detail in the Dictionary of Base
Methodologies.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector EB – Intangible Assets: Goodwill
Overview
This sector holds the balance sheet value of goodwill arising on the acquisition of subsidiary undertakings. The sector excludes the value of
telecommunication license intangible assets, which are contained in Sector EC Other Intangible Assets.
Costs booked/allocation
The balance sheet value of goodwill is not allocated to the defined regulatory markets, but instead is attributed to the reconciling itemP999,
to reconcile between the Annual Report and the Current Cost Financial Statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector EC – Intangible Assets: Concessions, Patents and Licence
Overview
This sector holds the balance sheet value of other intangible assets – namely telecommunication licences (e.g. 3G licences held up until the
mm02 de-merger at which point they were transferred out of the group).
Costs booked/allocation
Intangible assets held by group consolidation units and subsidiaries, and reported through the Group Financial Return (GFR), are allocated
directly to the Retail Residual Markets.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector E6 – Satellite Consortia
Overview
This sector represents the balance sheet value of fixed asset investments in Satellite Consortia.
Costs booked/allocation
The balance of investment held by self-accounting units is attributed based on information contained in the Licence Consolidation Return
(LCR), other balances are apportioned based on an analysis of fixed asset investments between Plant Groups (PGs) (International
Transmission Earth Stations Capital) and Product (Global Services non-core other).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector E8 – Fixed Asset Investment Adjustment (CCA)
Overview
This sector contains the Current Cost Accounting (CCA) adjustment for fixed assets. The adjustment is required to convert the historic cost
asset values to current cost values in the financial statements.
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Section 3 Overview – Detailed Attribution Methods (DAM)
Costs booked/allocation
The value of the adjustment is allocated directly to the P999 Reconciliation item, to reconcile from the historic cost shareholders’ funds per
the annual report to the current cost mean capital employed per the Current Cost Accounting (CCA) financial statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
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Section 3 Overview – Detailed Attribution Methods (DAM)
3.7.1.4 Current Assets and Liabilities
This section describes the balance sheet values of assets, liabilities, share capital and reserves reported by BT. The section shows separate
sectors for different balance sheet items – for example, trade debtors, prepayments, etc.
The Accounting Separation (AS) system attributes the balance sheet values from the following sectors:
Current Assets, Liabilities, Provisions, Share Capital and Reserves
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Section 3 Overview – Detailed Attribution Methods (DAM)
Sector G1 - Trading Stocks
Overview
This sector contains the balance sheet asset values for Trading Stocks. The sector includes:
•
•
•
Trade and finished goods stocks.
Work in progress.
Raw material stock.
A key item of the stock balance is trading stocks, i.e. stocks supporting the goods and services provided by BT. In addition, the sector includes
items such as the balance of work in progress for repayment works (i.e. the cumulative costs for damage cases yet to be completed closed
and billed).
It also includes the stock balances of self-accounting units and subsidiaries, recorded through the Group Financial Return (GFR).
Costs booked/allocation
Much of the balance of stock relates to apparatus equipment (e.g. telephones and answering machines etc.), and is therefore attributed to
Apparatus Products. Stock relating to repayment works is attributed directly to the Repayment Works Product within the Retail Residual
Markets Systems.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector G2 - Trade Debtors
Overview
This sector relates to the balance sheet value of trade debtors for services provided to and invoiced to customers, with payment not yet
received by BT. For many services, including the Public Switched Telephone Network (PSTN) call services offered to customers, there is a time
delay in between raising and dispatching an invoice, and receiving payment from the customer. The delay may be in line with the terms and
conditions of the invoice, or may relate to late payment of the invoice by the customer.
The key balances of trade debtors in this sector include:
•
Geneva debtors.
These are debtors associated with invoices raised through the Geneva system.
Geneva is a billing system used by BT Retail, Global Services and BT Wholesale. It contains customer data, such as the Products they currently
rent, usage and any discounts applied.
•
Customer Service System (CSS) billed debtors.
These are debtors associated with invoices raised through the Customer Service System (CSS). These debtors’ balances are generated by the
Retail business unit of BT and include, for example, balances for invoices due from Public Switched Telephone Network (PSTN) call services
provided to business and residential customers.
•
Other Communication Provider (OCP) debtors.
These are debtors associated with services provided and invoiced to Other Communication Providers (OCPs). The balance covers, for example,
amounts due from other operators for calls originating on the Other Communication Provider (OCP) network but passing over the BT Network
to a terminating operator. It also includes debt owed for circuit rental and connection income (for fixed links and interconnect circuits
provided to Other Communication Providers (OCPs)).
•
Trade debtors’ private circuits.
These are debtors associated with private circuit services provided to customers by the Retail business unit of BT Bad debt provisions.
These represent reductions (credits) to debtor balances considered as bad or doubtful debts. The provisions include:
•
•
•
General bad debt provisions for Customer Service System (CSS) business and residential telephony customers, calculated with reference
to ‘loss rates’ on an age profile of debtors.
Specific bad debt provisions for Customer Service System (CSS) telephony debtors, calculated with reference to specific bad debts.
General and specific bad debt provisions for debtors arising through the private circuits’ sales ledger.
In addition, the Self Accounting Units (SAUs) and subsidiaries record the balance of their trade debtors on the Group Financial Return (GFR)
under the main categories of ‘Trade debtors’ and ‘Provision for bad debts’. The information is extracted from the Group Financial Return
(GFR) for use in the Accounting Separation (AS) system.
Costs booked/allocation
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Section 3 Overview – Detailed Attribution Methods (DAM)
While some debtor balances are recorded against F8 codes specific to individual Products, most of the F8 codes relate to multiple Products.
The attribution base for apportionments across multiple Products is usually derived from billed revenue (for example, in the case of Customer
Service System (CSS) billed revenues to apportion Customer Service System (CSS) debtors).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector G3 - Intra Group Debtors
Overview
This sector contains the balance sheet asset values for Intra Group Debtors. The sector shows the balances recorded by the different
organisation units of BT as amounts due from other parts of the organisation.
Costs booked/allocation
Much of the balance of intra group debtors is recorded through the Group Financial Return (GFR). The intra group debtors relating to
consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed to Products in the Retail Residual
Markets. The intra group debtors relating to self-accounting units is recorded on the Group Financial Return (GFR) and Licence Consolidation
Return (LCR), and attributed to Products in the Residual and/or regulated markets based on an analysis of the information in the Licence
Consolidation Return (LCR).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector G4 – Short-term Investments: Third Party
Overview
BT invests funds in short-term external investments, the balance sheet asset values of which are contained in Sector G4. The types of shortterm investments held include:
•
•
•
•
•
•
Listed UK investments.
Listed non-UK investments.
Unlisted investments.
Overnight deposits.
Term deposits at banks.
Certificates of tax deposits.
Costs booked/allocation
The short term investments are allocated through activity group AG113 to the Retail Residual Markets. This is in line with the treatment
adopted for BT’s cash balances held by the Treasury Department and financing subsidiaries.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector G5 – Short-term Investments: Intra Group
Overview
BT’s IntraGroup investments (funds deposited by one area of the business into another part of the business) follow the same treatment as
the external investments (sector G4), allocated through Activity Group AG113 to Retail Residual.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector G6 – Cash at Bank
Overview
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Section 3 Overview – Detailed Attribution Methods (DAM)
The Cash at Bank sector represents the bank account balances held by BT with various banks. The sector therefore pertains to balance sheet
attributions in the Accounting Separation (AS) system. There are two main types of bank account contained in this sector, the bank accounts
held by BT Group (for which the F8 codes start with ‘87’, and the Organisational Unit Codes (OUCs) start with ‘G’) and the bank accounts held
by Self Accounting Units (SAUs) and subsidiaries (for which the F8 codes start with ‘88’ and ‘89’ respectively). The material balances in this
sector represent sterling bank accounts, with different F8 codes used for accounts with different banks.
Costs booked/allocation
Cash at Bank is recorded against the relevant F8 code, depending on the type of BT business unit (i.e. Group, Self Accounting Units (SAUs),
and Subsidiaries) and the bank. All F8 code bank balances in this sector are allocated, through the activity group AG113, to the Retail
Residual Markets.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector G9 – Accrued Income
Overview
This sector relates to the balance sheet value of accrued income for services provided to and used by customers but not yet invoiced by BT.
Accrued income arises where the invoice schedule for a particular customer service allows the customer to use the service in advance of being
billed – for example, for telephony calls made by residential customers, where customers are billed quarterly in arrears for the call charges.
The key balances of accrued income in this sector include:
•
Direct dial calls accrual.
Accrual made for the income earned by BT on direct calls, where invoices are issued to customers in arrears. The accrual covers income for
calls only, and excludes income for line rental (where customers pay in advance for the rental of their exchange lines)
•
Bad debt provision unbilled.
The accrued income balance is reduced by a general provision for bad debts on unbilled income.
•
Private circuits’ accrual.
Accrual made for the income earned by BT on the provision of private circuits, where invoices are issued to customers in arrears. The accrual
relates primarily to the rental charges for the use of private circuits.
•
BTSS (Global Services) accrual.
Accrual made for unbilled interconnect services provided to Other Communication Providers (OCPs).
In addition, the Self Accounting Units (SAUs) and subsidiaries record the balance of their accrued income on the Group Financial Return (GFR)
under the main categories of ‘Debtors Accrued Interest, Interest Receivable Other’ and ‘Debtors Accrued Interest- gross (before provisions
for bad debts). The information is extracted from the Group Financial Return (GFR) for use in the Accounting Separation (AS) system.
Costs booked/allocation
Accrued income is shown against a number of F8 codes relating to different types of services provided to customers. However, the level of
aggregation is such that the F8 codes typically require attribution to a number of Products, usually on a basis derived from the revenue shown
against individual Products.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector GA - Prepayments
Overview
This sector relates to the balance sheet value of prepayments for services paid for but not yet received by BT.
The main prepayment balances arise through:
•
•
Prepayments of general expenditure from BT.
Prepayments for BT self-accounting units, subsidiaries and group adjustments recorded in the Group Financial Return.
Costs booked/allocation
The prepayments relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed to
Products in the Retail Residual Markets. The prepayments relating to self-accounting units is recorded on the Group Financial Return (GFR)
88
Section 3 Overview – Detailed Attribution Methods (DAM)
and Licence Consolidation Return (LCR), and attributed to Products in the Residual and/or regulated Markets based on an analysis of the
information in the Licence Consolidation Return (LCR). Prepayment balances for the core business are attributed to particular Accounting
Separation (AS) cost pools in the same proportion as operating costs excluding depreciation.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector GB - Other Debtors
Overview
This sector relates to the balance sheet value of Other Debtors for amounts owing to BT. It contains sundry and miscellaneous debtor
balances, separate to the main trade debtors recorded under Sector G2.
Costs booked/allocation
The debtor balances relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed
to Products in the Retail Residual Markets. The debtor balances relating to self-accounting units is recorded on the Group Financial Return
(GFR) and Licence Consolidation Return (LCR), and attributed to Products in the Residual and/or regulated Markets based on an analysis of
the information in the Licence Consolidation Return (LCR). Other debtor balances are attributed to Accounting Separation cost pools on a
basis appropriate to the particular debtor type. The individual bases adopted are set out in the table below.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector GC – Pay Recharges
Overview
This sector contains the balance sheet value of pay re-charges. Employees pay is recorded against balance sheet asset pay codes in the
general ledger, before being re-charged from the balance sheet to profit and loss cost accounts in the general ledger. This enables the pay
costs to be held in a balance account prior to been analysed and charged against profit and loss account codes specific to the activities to
which the employees’ pay relates. The balance sheet codes relating to the pay costs and the balance sheet codes relating to the recharge of
the costs to the profit and loss account are both contained within Sector GC. The balance sheet values for pay costs and re-charges are usually
attributed on the basis of previously apportioned pay costs of all BT units.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H1 - Short-term Borrowing
Overview
This sector contains the balance sheet liability values for BT’s short-term borrowings. The borrowings include:
•
Overdrafts.
Where balances on bank and giro accounts are credits at the end of the period the overdraft position is shown as a liability on the balance
sheet.
•
•
•
•
Short-term loans.
Other short-term loans (excluding bank overdrafts).
Commercial paper.
Liability balances on commercial paper held by the Treasury.
Costs booked/allocation
The short-term borrowings are allocated through activity group AG113 to the Retail Residual Markets. This is in line with the treatment
adopted for BT’s cash balances and short-term investments.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
89
Section 3 Overview – Detailed Attribution Methods (DAM)
Sector H3 - Trade Creditors
Overview
This sector relates to the balance sheet value of trade creditors for services performed and invoiced by suppliers to BT, but not yet paid by
BT. BT receives services from a range of suppliers to support the Products and services it delivers to its customers. Where suppliers perform
services and issue invoices to BT, BT raises a creditor balance in advance of the settlement of the invoice. Most supplier invoices and credit
balances are dealt with through the Accounts Payable system. The key balances of trade creditors in this sector include:
•
Accounts Payable control.
This is the main creditor account for external supplier invoices processed through the Accounts Payable system. The account holds the total
value of invoices less credits due for payments to suppliers and the total balance can be itemised by individual supplier in an Oracle report.
•
Other Communication Provider (OCP) Creditors.
This represents the value of debt owed by Other Communication Providers (OCPs) to BT in respect of calls originating from BT customers and
inland/international transit traffic to the points of interconnect where calls are handed over to the Other Communication Providers (OCPs)
system. BT pays the Other Communication Provider (OCP) a pence per minute conveyance fee which varies by tariff period and distance
carried.
•
Capital Trade Creditors other.
Trade creditors relating to capital purchases, recorded through the Group Financial Return (GFR).
In addition, the sector contains trade creditor balances recorded by self-accounting units and subsidiary companies in the Group Financial
Return (GFR).
Costs booked/allocation
The main creditor balances on F8 code 510014 and 510012 are attributed on a base derived from total operating costs, excluding pay,
depreciation, payments to overseas administrations and Payments to Other Communication Providers (POCPs)). The F8 code for the creditor
balance of Payments to Other Communication Providers (POCPs)), 510010, is attributed to specific plant groups or Products in proportion
to the value of the payments made to Other Communication Providers (OCPs). The trade creditor balances relating to consolidation units and
subsidiaries are recorded through the Group Financial Return (GFR) and attributed to Products in the Retail Residual Markets. The trade
creditor balances relating to self-accounting units is recorded on the Group Financial Return (GFR) and Licence Consolidation Return (LCR),
and attributed to Products in the Residual and/or regulated Markets based on an analysis of the information in the Licence Consolidation
Return (LCR).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H4 - Intra Group Creditors
Overview
This sector contains the balance sheet asset values for Intra Group Creditors. The sector shows the balances recorded by the different
organisation units of BT as amounts owing to other parts of the organisation.
Costs booked/allocation
Much of the balance of intra group creditors is recorded through the Group Financial Return (GFR). The intra group creditors relating to
consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed to Products in Retail Residual. The
intra group creditors relating to self-accounting units is recorded on the Group Financial Return (GFR) and Licence Consolidation Return
(LCR), and attributed to Products in the Residual and/or regulated Markets based on an analysis of the information in the Licence
Consolidation Return (LCR).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H5 - Corporation Taxes: Liabilities
Overview
This sector contains the balance sheet liability value for corporation tax. It reflects the amounts owing for corporation tax, including the
unpaid element of the opening balance and the current year tax charge.
90
Section 3 Overview – Detailed Attribution Methods (DAM)
It also includes the corporation tax liability recorded in the Group Financial Return (GFR) for consolidation units, self-accounting units and
subsidiaries.
Costs booked/allocation
The corporation tax liability for self-accounting units is recorded in the Licence Consolidation Return (LCR) and attributed to markets using
the breakdown provided on the Licence Consolidation Return (LCR). Other categories of corporation tax liabilities are attributed to the Retail
Residual Markets.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H6 - Other Taxes and Social Security
Overview
This sector holds the balance sheet value of other taxes and social security costs payable by BT. It represents amounts due for social security
and other taxes but not yet paid. Key balances include:
•
•
•
Output VAT creditors, arising from VAT collected by BT from its UK for forwarding to the Customs and Excise department.
Input VAT debtor balances, arising from VAT paid by BT on inputs purchased.
National Insurance contributions for employees, payable by BT.
Costs booked/allocation
Output VAT creditors relate, arising from the VAT collected on sales of goods and services to customers are attributed on the basis of core
turnover excluding Receipts from Other Communication Providers (ROCPs). Input VAT creditors relating to VAT paid by BT on inputs to the
business, to be reclaimed from Customs and Excise, are apportioned on the basis of previously apportioned operating costs. National
Insurance contributions are attributed to Products relating to the core BT business on the basis of previously apportioned pay costs.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H7 - Provisions
Overview
This sector contains the balance sheet liability values for miscellaneous provisions. The provisions are recorded by the separate Lines of
Business (LoB) (e.g. Markets, Global Services etc.) based on their view of the potential liabilities facing their part of the business.
Costs booked/allocation
Each area of the business incurs provisions, mainly against the general provision F8 code 510035 books liabilities. The liability balance is then
attributed based on a detailed breakdown of the components of the provision relevant to that particular line of business, with the component
parts of the provision attributed to the Products (or activity or plant groups) to which they relate.
For example, the Markets Line of Business (LoB) makes a provision for bad debts based, recorded against the general provisions F8 code,
510035, for the Organisational Unit Code (OUC) M (BT Retail Markets). This is then attributed to Products based on a detailed breakdown of
the provision data by Products, provided by Retail Markets.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H8 - Other Creditors
Overview
This sector contains the balance sheet liability values for Other Creditors. It contains sundry and miscellaneous creditor balances, separate to
the main trade creditors recorded under Sector H3.
Costs booked/allocation
The creditor balances relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed
to Products in the Retail Residual Markets. The creditor balances relating to self-accounting units is recorded on the Group Financial Return
(GFR) and Licence Consolidation Return (LCR), and attributed to Products in the Residual and/or regulated Markets based on an analysis of
the information in the Licence Consolidation Return (LCR). Other creditor balances are attributed to Accounting Separation (AS) cost pools
91
Section 3 Overview – Detailed Attribution Methods (DAM)
on a basis appropriate to the particular creditor type. For example, external rent receivable/payable is attributed to specific Accounting
Separation (AS) cost pools in the same proportion as Profit and Loss (P&L) accommodation costs. The individual bases adopted are set out in
the table below.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector H9 – Accrued Expenses
Overview
This sector contains the balance sheet liability values for Accrued Expenses. Accrued expenses represent amounts due from BT for services
received but not yet invoiced from the provider of the service. The sector includes:
•
•
•
•
Accrued pay.
The value of any accrual of pay arising for any reason other than pay awards pending but not yet paid out.
Accrued expenses interest other.
An accrual for interest expenses not yet paid.
The sector also includes accrued expenses for subsidiaries and self-accounting units, recorded using the Group Financial Return (GFR).
Costs booked/allocation
The expense accruals relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed
to Products in the Retail Residual Markets. The expense accruals relating to self-accounting units is recorded on the Group Financial Return
(GFR) and Licence Consolidation Return (LCR), and attributed to Products in the Residual and/or regulated Markets based on an analysis of
the information in the Licence Consolidation Return (LCR). Accruals for pay costs are attributed to specific Accounting Separation (AS) cost
pools in the same proportion as total pay costs (current and capital account).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector HA - Deferred Income
Overview
This sector contains the balance sheet liability values for Deferred Income. Deferred Income represents income received by BT for services
that it has not yet provided. The sector includes:
•
•
•
•
•
•
Deferred income telephony.
Income received for telephony services not yet provided to customers (for example, for telephony services to be billed through the
Customer Service System (CSS)).
Deferred income private circuits.
Unearned rental income received for private circuit services.
Unearned rental income.
Other unearned rental income.
It also includes unearned income received by the self-accounting units and subsidiaries, recorded through the Group Financial Return (GFR)
Costs booked/allocation
The deferred income balances relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and
attributed to Products in the Retail Residual Markets. The deferred income balances relating to Self Accounting Units (SAUs) is recorded on
the Group Financial Return (GFR) and Licence Consolidation Return (LCR), and attributed to Products in the Residual and/or regulated
Markets based on an analysis of the information in the Licence Consolidation Return (LCR). Other deferred income balances (e.g. telephony
and private circuits) are attributed to Products in proportion to total income or total rental income for specific Products (depending on the
type of income accrual).
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies
.
Sector HB – AS Balance Sheet Controls
92
Section 3 Overview – Detailed Attribution Methods (DAM)
Overview
This sector contains the control entry for the cash adjustment for the daily averaging of cash described in Sector I3. The adjustment is required
to allow the mean capital employed of short-term investments to be calculated on a daily average basis rather than a simple mean of opening
and closing balances.
Costs booked/allocation
The balance sheet control entry for the daily averaging of cash is attributed directly to the Reconciliation item, to form part of the
reconciliation between the shareholders’ funds as in the Annual Report and the total Current Cost Accounting (CCA) mean capital employed.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector HC – Dividend Creditors
Overview
This sector contains the balance sheet liability values for Dividend Creditors. This represents dividends due to third parties but not yet paid,
on shares held in BT.
Costs booked/allocation
The dividend creditors are allocated directly to the P999 reconciling item, in line with the treatment of the profit and loss account costs for
dividends payable.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector I1 – Provisions: Deferred Tax
Overview
This sector contains the balance sheet values of provisions made for the costs of deferred tax.
Costs booked/allocation
The deferred tax relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed to
Products in the Retail Residual Markets. The deferred tax relating to self-accounting units is recorded on the Group Financial Return (GFR)
and Licence Consolidation Return (LCR), and attributed to Products in the Residual and/or regulated Markets based on an analysis of the
information in the Licence Consolidation Return (LCR). Other deferred tax is attributed to the P999 reconciliation item.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector I2 – Provisions: Other Provisions
Overview
This sector contains the balance sheet values of ‘other’ provisions, which are primarily BT’s warranty provisions.
Costs booked/allocation
Other provisions for consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and attributed to Products
in the Retail Residual Markets. Other provisions for the core business are attributed directly to the Residual activity.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector I3 – Daily Averaging of Cash
Overview
93
Section 3 Overview – Detailed Attribution Methods (DAM)
The daily averaging of cash represents the balance sheet value required to present cash liquid assets on a daily averaged basis. While mean
capital employed is usually calculated using the average of the opening and closing balance sheet values for the period, in the case of shortterm investments and borrowings, a daily cash average is used instead. The daily averaging of cash balance is attributed to the Retail Residual
Markets, consistent with the treatment of liquid funds (cash and bank balances, short-term investments and short-term borrowings).
Reference should be made to Sector HB for further information.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector I4 – Provisions: Pensions
Overview
This sector contains the balance sheet values of provisions for pension liabilities.
Costs booked/allocation
The pension provisions are attributed on the basis of previously apportioned pay costs for all units in BT.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector L1 – Long-term Borrowing
Overview
This sector contains the balance sheet liability values for BT’s long-term borrowings. The borrowings include:
•
•
•
•
Amounts due on HM bonds (due in < 1 year, > 1 year)
Amounts due on EU and US bonds (due in < 1 year, > 1 year)
Amounts due on long-term bank loans (due in < 1 year, > 1 year)
Amounts due on other long-term loans
Costs booked/allocation
Most of the long-term borrowings are allocated to the P999 reconciling item, as part of the reconciliation between closing shareholders
funds in the annual report and the Current Cost Accounting (CCA) financial statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector M1 – Minority Interests
Overview
This sector contains the equity in a partly owned subsidiary which is not held by the parent company.
Costs booked/allocation
Minority Interests are treated as an exceptional item in Accounting Separation (AS) and allocated to the P999 Product for reconciling items.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
Sector S1 – Share Capital and Reserves
Overview
This sector contains the balance sheet values of share capital and reserves.
Costs booked/allocation
94
Section 3 Overview – Detailed Attribution Methods (DAM)
The share capital and reserves relating to consolidation units and subsidiaries are recorded through the Group Financial Return (GFR) and
attributed to Products in BT Retail Residual. Other share capital and reserves balances are attributed to the reconciling item P999, to
reconcile between the annual report and the Current Cost Accounting (CCA) Financial Statements.
Allocations
The table in Appendix F sets out the allocations from the F8 cost or income pools in this sector, with a summary description of the base
allocation method. Detailed descriptions of each base are provided in the Dictionary of Base Methodologies.
95
Section 3 Overview – Detailed Attribution Methods (DAM)
3.7.2 Externally reported SMP sectors
Wholesale Markets SMP Sectors
The tables below identify the SMP sectors reported in Wholesale service statements for the Profit and Loss and Balance Sheet.
96
Report
Description of Wholesale SMP Sector
SMP Sector Code
P&L
Turnover
W01
P&L
Provision, Installation and Maintenance
W02
P&L
Network Support
W10
P&L
General Support
W07
P&L
General Management
W09
P&L
Finance and Billing
W03
P&L
Accommodation
W08
P&L
Bad Debts
W11
P&L
Other Costs
W12
P&L
Depreciation – Land and Buildings
W14
P&L
Depreciation - Access
W05
P&L
Depreciation - Switch and Transmission
W04
P&L
Other Depreciation
W06
P&L
CCA Holding (gain)/loss
N/A
P&L
CCA Supplementary depreciation
N/A
P&L
CCA other adjustments
N/A
P&L
Reconciling items
W13
Report
SMP Sector Description
SMP Sector Code
MCE
Fixed Assets – Land and Buildings
W50
MCE
Fixed Assets – Access Copper
W51
MCE
Fixed Assets – Access Fibre
W52
MCE
Fixed Assets – Access Duct
W53
MCE
Fixed Assets - Switch
W56
MCE
Fixed Assets - Transmission
W55
MCE
Fixed Assets - Other
W57
MCE
Fixed Assets - Investments
W58
MCE
Current Assets - Stocks
W59
MCE
Debtors - Internal
W60
MCE
Debtors - External
W61
MCE
Creditors - Internal
W62
Section 3 Overview – Detailed Attribution Methods (DAM)
Report
SMP Sector Description
SMP Sector Code
MCE
Creditors - External
W63
MCE
Provisions for liabilities and charges
W64
MCE
Roundings
Profit and Loss - Aspire Sector Pointing for Wholesale Statements
The table below groups Aspire sectors into Wholesale SMP reporting sectors. The sector groupings are different for Wholesale and Retail.
Refer to Section 3.7.1 for descriptions of the Aspire sectors.
SMP Sector
P&L SMP Sector Description
Aspire Sector
P&L Aspire Sector Description
W01
Turnover
A1
Sales
W01
Turnover
A2
Connect Charges/OSP
W01
Turnover
A3
Rentals
W01
Turnover
A4
Enhanced Maintenance
W01
Turnover
A5
Calls Gross
W01
Turnover
A6
Calls Discount Facility Fee and Adj.
W01
Turnover
A7
Calls Payments to SP
W01
Turnover
A8
Receipts from OLOs/OAs
W01
Turnover
A9
Fixed Fee Options
W01
Turnover
AA
Other Turnover
W01
Turnover
AI
AS NCC Charge Out Common
W01
Turnover
AJ
AS NCC Charge >OLO
W01
Turnover
AK
AS NCC Charge Out >Retail
W01
Turnover
AR
AS Charge Out – Common Elimination
W01
Turnover
AS
AS Charge OLO Eliminations
W01
Turnover
AT
AS Cost Charge Out Retail Elimination
W01
Turnover
AU
SoS Out Prod Specific
W01
Turnover
AW
Intra Group Elimination Products
W02
Provision/Maintenance
B1
Provision and Installation
W02
Provision/Maintenance
B2
Maintenance
W10
Network Support
BK
Plant Support
W07
General Support
B0
General Support
W07
General Support
B4
Planning and Development
W07
General Support
B6
Supplies
W07
General Support
B7
Transport
W07
General Support
BA
Computing
W07
General Support
BB
Customer Service
W07
General Support
BE
Personnel and Administration
W07
General Support
BV
Customer Support
97
Section 3 Overview – Detailed Attribution Methods (DAM)
98
SMP Sector
P&L SMP Sector Description
Aspire Sector
P&L Aspire Sector Description
W09
General Management
BF
Gen Management and Other
W09
General Management
B5
Operator Services
W03
Finance and Billing
B9
Finance and Billing
W08
Accommodation
BC
Accommodation
W11
Bad Debts
BW
Bad Debts
W12
Other Costs
B8
Marketing and Sales
W12
Other Costs
BG
SLRC Variance
W12
Other Costs
BU
Elimination of Intra Group
W12
Other Costs
BX
AS NCC Charge In Retail
W12
Other Costs
C1
Other Operating Inc
W12
Other Costs
C2
Payments to OLO
W12
Other Costs
C3
Payments to OA
W12
Other Costs
C7
Internal Product Charge from Core
W12
Other Costs
D0
Cellular and Other
W12
Other Costs
EC
Other Intangible Asset
W12
Other Costs
F1
Employee Profit Sharing
W12
Other Costs
F2
Net Short Term Interest
W12
Other Costs
F3
Associated Companies
W12
Other Costs
K2
AS charge in Elimination
W12
Other Costs
T3
Divisional Supply Service Out
W12
Other Costs
T4
Group Supply Service Out
W12
Other Costs
U3
Divisional Sup Service In
W12
Other Costs
U4
Group Supply Service In
W14
Land and Buildings Depreciation
DF
Accommodation Plant Net
W14
Land and Buildings Depreciation
DP
Land
W14
Land and Buildings Depreciation
DQ
Buildings
W14
Land and Buildings Depreciation
DR
Accommodation Plant (Land Lord)
W05
Access Depreciation
D1
Access: Fibre and Rad
W05
Access Depreciation
D2
Access: Copper
W05
Access Depreciation
D3
Access: Duct
W04
Switch and Transmission Depreciation
D4
Local Exchanges: Digital
W04
Switch and Transmission Depreciation
D8
Main Exchanges
W04
Switch and Transmission Depreciation
D9
International Exchanges
W04
Switch and Transmission Depreciation
DA
Core Transmission: Cable and Other
W04
Switch and Transmission Depreciation
DB
Core Transmission: Duct
W04
Switch and Transmission Depreciation
DC
Intelligent Networks
Section 3 Overview – Detailed Attribution Methods (DAM)
SMP Sector
P&L SMP Sector Description
Aspire Sector
P&L Aspire Sector Description
W04
Switch and Transmission Depreciation
DD
International Transmission
W04
Switch and Transmission Depreciation
DE
Telex Exchange and Transmission
W04
Switch and Transmission Depreciation
DT
21 Century Network
W06
Other Depreciation
DG
Network Power
W06
Other Depreciation
DH
Capital Miscellaneous
W06
Other Depreciation
DI
Other Non-Voice Plant
W06
Other Depreciation
DJ
Net Enabling Computers
W06
Other Depreciation
DK
Private Circuits and SMDS
W06
Other Depreciation
DL
Public Payphones
W06
Other Depreciation
DM
Apparatus
W06
Other Depreciation
DN
Motor Transport
W06
Other Depreciation
DO
General Computers
W06
Other Depreciation
DS
Office Machines
W06
Other Depreciation
EA
Software
W13
Reconciling items
EB
Goodwill
W13
Reconciling items
F4
Corporation Tax
W13
Reconciling items
F5
Deferred Tax
W13
Reconciling items
F6
Interest Payment: Ext LT
W13
Reconciling items
F7
Dividends
W13
Reconciling items
F8
Preference Dividends Payable
W13
Reconciling items
F9
Minority Interests
W13
Reconciling items
FE
Exceptional Items
Balance Sheet - Aspire Sector Pointing for Wholesale Statements
The table below groups Aspire sectors into Wholesale SMP reporting sectors. The groupings are different for Wholesale and Retail services.
Refer to Section 3.7.1 for descriptions of the Aspire sectors.
SMP
Sector
MCE - Sector SMP Description
Aspire
Sector
MCE - Aspire Sector Description
W50
Fixed Assets – Land Buildings
DF
Accommodation Plant Net
W50
Fixed Assets – Land Buildings
DP
Land
W50
Fixed Assets – Land Buildings
DQ
Buildings
W50
Fixed Assets – Land Buildings
DR
Accommodation Plant (Land Lord)
W50
Fixed Assets – Land Buildings
K3
AS B/S Eliminations Debtors
W51
Fixed Assets – Access Copper
D2
Access: Copper
W52
Fixed Assets – Access Fibre
D1
Access: Fibre and Rad
W53
Fixed Assets – Duct
D3
Access: Duct
W56
Fixed Assets – Switch
D4
Local Exchanges: Digital
99
Section 3 Overview – Detailed Attribution Methods (DAM)
100
SMP
Sector
MCE - Sector SMP Description
Aspire
Sector
MCE - Aspire Sector Description
W56
Fixed Assets – Switch
D8
Main Exchanges
W56
Fixed Assets – Switch
D9
International Exchanges
W56
Fixed Assets – Switch
DC
Intelligent Networks
W55
Fixed Assets – Transmission
DA
Core Transmission: Cable and Other
W55
Fixed Assets – Transmission
DB
Core Transmission: Duct
W55
Fixed Assets – Transmission
DD
International Transmission
W55
Fixed Assets – Transmission
DE
Telex Exchange and Transmission
W55
Fixed Assets – Transmission
DK
Private Circuits and SMDS
W55
Fixed Assets – Transmission
DT
21st Century Network
W57
Fixed Assets – Other
D0
Cellular and Other
W57
Fixed Assets – Other
D1
Access: Fibre and Rad
W57
Fixed Assets – Other
D2
Access: Copper
W57
Fixed Assets – Other
DG
Network Power
W57
Fixed Assets – Other
DH
Capital Miscellaneous
W57
Fixed Assets – Other
DI
Other Non-Voice Plant
W57
Fixed Assets – Other
DJ
Net Enabling Computers
W57
Fixed Assets – Other
DL
Public Payphones
W57
Fixed Assets – Other
DM
Apparatus
W57
Fixed Assets – Other
DN
Motor Transport
W57
Fixed Assets – Other
DO
General Computers
W57
Fixed Assets – Other
DS
Office Machines
W57
Fixed Assets – Other
E4
Materials Awaiting Install
W57
Fixed Assets – Other
EA
Software
W57
Fixed Assets – Other
EC
Other Intangible Asset
W57
Fixed Assets – Other
ED
IFA from Acquisition
W58
Fixed Assets – Investments
E7
Other Investments
W58
Fixed Assets – Investments
E8
FA Invest Adj. CCA
W58
Fixed Assets – Investments
E5
Other Non Current Assets
W59
Current Assets – Stocks
G1
Trading Stocks
W60
Debtors - Internal
GN
AS Notional Debtors
W60
Debtors - Internal
HN
AS Notional Creditor
W61
Debtors - External
G2
Trade Debtors
W61
Debtors - External
G3
Intra Group Debtors
W61
Debtors - External
G4
Short Term Investments:TP
W61
Debtors - External
G5
Short Term Investments:IG
W61
Debtors - External
G6
Cash At Bank
Section 3 Overview – Detailed Attribution Methods (DAM)
SMP
Sector
MCE - Sector SMP Description
Aspire
Sector
MCE - Aspire Sector Description
W61
Debtors - External
G9
Accrued Income
W61
Debtors - External
GA
Prepayments
W61
Debtors - External
GB
Other Debtors
W61
Debtors - External
GC
Pay Recharges
W61
Debtors - External
GD
Derivative Financial Instrument (Current Assets)
W61
Debtors - External
I3
Daily Averaging Of Cash
W63
Creditors - External
H1
Short Term Borrowing
W63
Creditors - External
H2
Provisions under one year
W63
Creditors - External
H3
Trade Creditors
W63
Creditors - Internal
H4
Intra Group Creditor
W63
Creditors - External
H6
Other Tax and Social Sec
W63
Creditors - External
H7
Provisions
W63
Creditors - External
H8
Other Creditors
W63
Creditors - External
H9
Accrued Expenses
W63
Creditors - External
HA
Deferred Income
W63
Creditors - External
HF
Derivative Financial Instrument (Creditors)
W64
Provisions for liabilities and charges
I2
Provision: Other Provisions
W64
Provisions for liabilities and charges
I4
Provisions: Pensions
W65
Reconciling Items
EB
Goodwill
W65
Reconciling Items
EF
Deferred Tax Asset
W65
Reconciling Items
H5
Corporation Taxes
W65
Reconciling Items
HB
AS B/S Controls
W65
Reconciling Items
HC
Dividend Creditors
W65
Reconciling Items
H0
Third Party Long Term Loans due within one year
W65
Reconciling Items
I1
Provisions: Deferred Tax
W65
Reconciling Items
R1
Capital Reserves
101
Section 3 Overview – Detailed Attribution Methods (DAM)
102
Detailed Attribution Methods (DAM) – Section 4 Base Methodology
4 Base Methodology Dictionary
Base Ref
OUC
Description
24 and 28
Accounts
ALL
Transfer Charging
Description
For internal management purposes, BT runs a ‘transfer-charging’ process. General Ledger codes for the transfer
charges are set up as matched pairs, one for the charge out and one for the charge in. These General Ledger codes
are associated with F8 codes. Therefore there will be matching pairs of F8 codes, one for the charge out and one
for the charge in. F8 codes beginning with ‘24’ are used for ‘transfer charges in’ and F8 codes beginning with ‘28’
are used for ‘transfer charges out’.
As an example, if ‘Unit A’ incurs motor vehicle expenses on behalf of ‘Unit B’ and then transfers these costs to
‘Unit B’, ‘Unit A’ will have an amount in a ‘transfer out’ F8 code (28xxxx). ‘Unit B’ will have an amount in a
‘transfer in’ F8 code (24xxxx). ‘Unit A’ will also have an amount in the motor vehicle expense F8 code. For the
purposes of this document, this will be referred to as the ‘underlying cost’.
Methodology
The treatment of a ‘transfer out’ account within the Regulatory Accounting system is based on how the matching
‘transfer in’ account is allocated. Therefore the name of the base reference used to allocate the ‘transfer out’
account is the name of the matching ‘transfer in’ F8 code. For example, if a transfer uses the F8 codes 281234
‘transfer out’ and 241234 ‘transfers in’, then the name of the base reference used by the regulatory accounting
system to allocate 281234 ‘transfers out’ is 241234.
The treatment of the ‘transfers in’ within the regulatory accounting system depends on how the underlying cost
is allocated. If the underlying cost is allocated to the appropriate Products by the regulatory accounting system,
then the corresponding ‘transfer in’ amount is allocated directly to the intermediate activity group AG114.
Therefore the matching ‘transfer out’ amount is also transferred to AG114:
If the underlying cost is allocated to an intermediate activity group by the regulatory accounting system for
further apportionment, then the corresponding ‘transfer in’ amount is apportioned to the Products that the
underlying costs were incurred for. The matching ‘transfer out’ amount is therefore also apportioned in this way:
103
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
BT runs more than one Ledger. Most of the inland, non-subsidiary activities use what is known as the ‘Core’
Ledger. This ‘Core’ Ledger feeds through into CID (Central Information Database), which acts as the General
Ledger entry storage database. The Regulatory Accounting system feeds off this database.
Ledgers that run outside the above system are known as ‘Non-Core’. These are Ledgers that are run by Selfaccounting units and subsidiaries (for the purposes of this document will be referred to as ‘self-accounting
units’). These Ledgers are entered into the regulatory accounting system using journals which transfer the high
level balances into CID.
Based on BT’s transfer charging principles, you would expect that the ‘transfers out’ and ‘transfers in’ would
equate to each other in CID. However this will not be the case where a Core Unit transfers an amount to a Selfaccounting unit or vice versa. This is due to the fact that when the Self-accounting unit’s Ledgers are entered into
CID via the high level journal, any transfer data in the Self-accounting units Ledgers do not map to the F8 codes
specified above for transfers. Therefore when the Regulatory Accounting system reads data from CID, only one
side of the transfer is recognised. If a Core unit transfers an amount to a Self-accounting unit, the ‘transfers out’
will be greater than the ‘transfers in’. If a Self-accounting unit transfers an amount to a Core unit, the ‘transfers
in’ will be greater than the ‘transfers out’.
Where the ‘transfers out’ are greater than the ‘transfers in’, the ‘transfers out’ that have matching ‘transfers in’
visible within CID are apportioned in the same way as those ‘transfer in’ amounts. The excess ‘transfer out’
amounts are allocated to AG114. This can be seen where the underlying cost is apportioned directly to Products.
104
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
and also where the underlying cost is apportioned to an intermediate activity group:
Figures are for illustrative purposes only.
Where the ‘transfers in’ are greater than the ‘transfers out’, the ‘transfers out’ are apportioned based on a
weighted average of how the ‘transfers in’ are apportioned.
See Appendix E for Key Destinations
BALS1
MP
BT Public Payphones Mechanism Fixed Assets
Description
Organisational Unit Code (OUC) MP represents the management and support of the Payphones, Multimedia
Terminals and Chargecard businesses.
Background
The base BALS1 apportions BT Public Payphones Mechanism Fixed Assets.
‘Public Payphones’ represents Street Payphones, Managed Payphones and Prison PIN Payphones. ‘Mechanism’
describes the telephone equipment and hence excludes the housing/kiosk.
Notes:
Managed payphones are located on private property, such as at Railway Stations or Airports.
Prison PIN Payphones are located in all HMPS and some non-HMPS prisons. These payphones do not accept cash
but rely on a ‘Personal Identification Number’ to charge the call to the prisoner’s account.
Capitalised costs relating to Public Payphone assets types are recorded separately against specific Class of Work
(CoW). Street mechanism capital costs are allocated to class of work PCOP - Public Coin Operated Payphone - and
managed mechanism costs to MPM - Managed Payphone Mechanisms.
For this base, the Mechanism assets are separated into four groups:
•
•
•
Cash Box.
Non Cash Box.
Prison PIN.
Multimedia (by the end of the financial year 2009-10, this product will be withdrawn).
Cash Box and Prison PIN related assets are allocated to Product group G573. Non Cash Box related assets are
allocated to Plant Group (PG) PG622A Public Payphones Operations. Multimedia assets are allocated to product
P137.
105
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
The Product/PG apportionment is calculated by using the derived gross replacement cost of the asset base
(Product volume x Product CCA cost) – to apportion the mechanism costs to the ‘cash’ and ‘non-cash’ elements.
The ‘cash’ element percentage is used to apportion mechanism gross book values (GBV) to Product group G573
and the ‘non cash’ element is used to apportion GBV to PG622A. The resulting values are used, along with the
direct allocation of GBV (for non payphone mechanisms) to determine the overall weighted apportionments to
Products and PG.
Data Source/s
Payphone populations at the period mid-point, sourced from the Payphones Data Warehouse.
The gross book values are provided by the Payphones Finance Reporting manager and are sourced from the
Central Information Database (CID) - for as much of the current financial year as is available at the time.
Payphone product valuations are derived from the CCA Evaluation process completed in 2004/05.
See Appendix E for Key Destinations
BALS2
MP
BT Public Payphones Mechanism Capital Expenditure
Description
Organisational Unit Code (OUC) MP represents the management and support of the Payphones, Multimedia
Terminals and Chargecard unit.
The base BALS2 apportions BT Public Payphones Mechanism capital expenditure.
Background
‘Public Payphones’ represents Street Payphones, Managed Payphones and Prison PIN Payphones. ‘Mechanism’
describes the telephone equipment and hence excludes the housing/kiosk.
Managed payphones are located on private property - such as at Railway Stations or Airports - where there may
be a payment either from, or to, BT Payphones (BTP) for allowing the payphones be present.
Prison PIN Payphones are located in all HMPS and some non-HMPS prisons. These payphones do not accept cash
but rely on a ‘Personal Identification Number’ to charge the call to the prisoner’s account.
Methodology
Capital costs relating to payphone mechanisms that are deployed in the Street locations are allocated to the class
of work (CoW) PCOP and capital mechanism costs relating to Managed locations are allocated to a CoW of MPM.
This base is derived by identifying all stores items recorded against the above CoWs with each item code then
being linked to the appropriate Payphones Accounting Separation (AS) products or Plant Group (PG). This
generates a weighting of the costs and hence an apportionment.
The AS Products/PGs impacted by this base could be G573 (P138/ P139), P134, P137 and PG622A but this is
dependant on whether stores item codes for these Products are consumed in the period.
The data used in the base should reflect as much of the current financial year as is available at the time.
Data Source/s
Central Information Database (CID) stores (DIY) transaction report.
See Appendix E for Key Destinations
CAPEXP_A
LL
ALL
Core
OUCs
Except
B’s
Capital Creditors
Description
This base is used to apportion capital creditors relative to the capital additions (purchase of Fixed Assets) made
over the year.
Capital creditors are the value of authorised invoices relating to capital expenditure due to suppliers, but that
are unpaid at the accounting period end. The detailed base is a system generated ratio that is derived from the
ASPIRE system using a two stage approach; this is recalculated each time the capital addition costs are updated.
Each base has two stages as follows:
106
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
•
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. CAPEXP).
The Accounting Separation (AS) Cost centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
Diagram: Capital Creditors Apportion Process.
“CAPEXP”, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. all non-pay capital additions (purchases of Fixed Assets) during the year. This data is held within the
system by AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Methodology
The CAPEXP base represents a smaller number of Products that are within the ‘ALL’ BT Group AS Cost Centres and
the existing CAPEXP base is apportioned to the existing array of AS Cost Centres.
Data Source/s
System generated base from ASPIRE.
See Appendix E for Key Destinations
CAPEXP_P
CT
B, D, J, Capital Creditors
K and M
Description
This base is used to apportion capital creditors relative to the capital additions (purchase of Fixed Assets) made
over the year.
Capital creditors are the value of authorised invoices relating to capital expenditure due to suppliers, but that are
unpaid at the accounting period end. The detailed base is a system generated ratio that is derived from the
ASPIRE system using a two stage approach; this is recalculated each time the capital addition costs are updated.
Each base has two stages as follows:
107
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
•
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. CAPEXP).
The Accounting Separation (AS) Cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Capital Creditors ApportionProcess.
“CAPEXP”, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. all non-pay capital additions (purchases of Fixed Assets) during the year. This data is held within the
system by AS Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS Cost Centres to which the capital creditor balance should be
apportioned.
Methodology
The CAPEXP base represents a smaller number of Products that are within the ‘PCT’ BT Group AS Cost Centres and
the existing CAPEXP base is apportioned to the existing array of AS Cost Centres.
Data Source/s
System generated base from ASPIRE.
See Appendix E for Key Destinations
CCAPDH
ALL
Plesiochronous Digital Hierarchy (PDH) Electronic Assets
Description
This base allocates the consolidated Current Cost Account (CCA) Valuation adjustments for the Plesiochronous
Digital Hierarchy (PDH) Electronics Class of Works (CoWs).
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
108
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
This base consolidates the costs for CoWs CRD, CRF and CRHQ, which represent PDH Electronic assets. CRD Digital repeater electronics, line systems and muxes are used on metal based cables. These assets relate to the
older transmission network assets which have largely been supplemented by the more modern and more fault
tolerant Synchronous Digital Hierarchy (SDH) assets.
CRF - Optical fibre repeaters, line systems and muxes.
CRHQ - Digital repeater equipment, line systems and muxes, installed by external contractors.
CRN - Optical fibre repeaters, line systems and muxes.
Current Cost Account (CCA) valuations are based on a current cost value. In the case of PDH assets, current cost
values would be SDH assets.
There are three separate CoWs for these PDH electronic assets. However, for Modern Equivalent Asset (MEA)
valuation purposes a single consolidated base is required for comparison to Synchronous Digital Hierarchy (SDH)
assets.
Methodology
To consolidate the three bases (PDTCRDA, PDTCRHQ and PDTCRFA) a weighted average is created (see diagram
below), weighted by Period 6 depreciation as obtained from the Life of Plant (LoP) list which is derived from the
Fixed Asset Register.
This weighted average forms the base that drives the depreciation costs and asset values to Plant Groups PGs).
Graph: CoW Base Consolidation Process.
Data Source/s
Period 6 depreciation from Life of Plant (LoP) list. Management believes that this Period to be reflective of the
full year.
See Appendix E for Key Destinations
CUMNOR
M
W
BT’s Rates on Installation (Cumulo)
Description
This base apportions BT’s rates on installation costs. BT pays rates bills for its street furniture such as duct and
manholes as well as its specialised accommodation such as exchanges.
The Rates on installation is therefore broken down by the following cost types:
•
•
Accommodation rates of operation buildings (i.e. non-office buildings).
Installation rates of BT’s Access and Core Network (e.g. poles, cables, and duct etc).
These rates are determined by agreement between BT and the Government.
109
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
The base is calculated using the profit weighted Current Cost Accounting (CCA) valuation of Classes of Work
(CoWs) that make up the assets plus the specialised accommodation.
CoW
LFME
LFSC
MICRO
TPWA
LDC
NWB & R
LDD
BHQ
CJC
CJF
MUC
ACPA
ACPS
TPC
GSLAND
BCS
GSBLD
Specialised
Accommodation
Description
Local Network Equipment
Local Fibre Cable
Microconnect
Access Radio
Local Cable
Dropwire
Duct
Submarine Cable Inland
Transmission Cable
Transmission Fibre Cable
Main Underground Cable
Accommodation Plant
Accommodation Plant, Security
Power Plant
Land CoWs
Building Security
Building CoWs
Operational Buildings
CUMNORM_Diagram1
These are apportioned to Plant Groups (PGs), in accordance to their Accounting Separation (AS) treatment e.g.
Each CoW is treated in the same way as in ASPIRE i.e. pointed to the same PG and in the same percentages. The
Specialised Accommodation element is apportioned as per the two Specialised Accommodation bases. Finally, a
weighted base is produced to give the percentage apportionment by PG by rebasing (after all the money going
to all the PGs from all the Classes of Works + the Specialised Accommodation has been worked out) to give new
percentages totalling 100%.
The Organisational Unit Code (OUC) for CUMNORM is W.
Data Source/s
Current Cost Accounting (CCA) valuations at year end.
Aspire P12 downloads.
See Appendix E for Key Destinations
CUMRBTE
W
BT’s Rates on Installation (Cumulo) - Rebates
Description
This base apportions the rebates relating to BT’s rates on installation costs. BT pays rates bills for its street
furniture such as duct and manholes as well as its specialised accommodation such as exchanges.
The Rates on installation is therefore broken down by the following cost types:
•
•
Accommodation rates of operation buildings (i.e. non-office buildings).
Installation rates of BT’s Access and Core Network (e.g. poles, cables, and duct etc).
BT receives rebates on these rates, determined by the decrease in the rateable value of BT’s core network. These
rates rebates are determined by agreement between BT and the Government.
110
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
The base is calculated using the profit weighted Current Cost Accounting (CCA) valuation of Classes of Work
(CoWs) that make up the assets plus the specialised accommodation.
CoW
LFM E
LFSC
M ICRO
TPW A
LD C
N W B & R
LD D
BHQ
CJC
CJF
MUC
A C PA
A C PS
TPC
G SLA N D
BCS
G SB LD
Sp ecialised
A ccom m odation
D escrip tio n
Local N etw ork Eq uipm ent
Local Fibre Cable
M icroconnect
A ccess Radio
Local Cable
D ropw ire
D uct
Subm arine Cable Inland
Transm ission C ab le
Transm ission Fib re C ab le
M ain U nd ergroun d Cable
A ccom m odation Plan t
A ccom m odation Plan t, Secu rity
Pow er Plan t
Lan d CoW s
B u ild ing Secu rity
B u ild in g CoW s
O perational B u ild in gs
CU M RB TE_D iagram 1
These are apportioned to Plant Groups (PGs), in accordance to their Accounting Separation (AS) treatment e.g.
Each CoW is treated in the same way as in ASPIRE i.e. pointed to the same PG and in the same percentages. The
Specialised Accommodation element is apportioned as per the two Specialised Accommodation bases. Finally, a
weighted base is produced to give the percentage apportionment by PG by rebasing (after all the money going
to all the PGs from all the Classes of Works + the Specialised Accommodation has been worked out) to give new
percentages totalling 100%.
The Organisational Unit Code (OUC) for CUMRBTE is W.
Data Source/s
Current Cost Accounting (CCA) valuations at year end.
Aspire P12 downloads.
See Appendix E for Key Destinations
DTNCAP1
BC
Logistics and Procurement Services Pay
Description
This base apportions costs relating to the Openreach Line of Business (LoB), F8 106161 (provide Logistics and
Procurement Services) which is normally used to collect the pay costs of staff whose work involves providing
support to colleagues with procurement and logistics.
But, in Organisation Unit Code (OUC) BC, the code has been used to process adjustments that are part of the
capitalisation of Field Provision costs. These adjustments are unconnected to logistics and procurement.
OUC BC undertakes customer related activities that are collectively described as Field provision. The work
involved is current account but part of the costs booked to them are validly capitalised on to the equivalent
capital Classes of Work (CoW). The current account costs involved in this case are for Controls and End of Day
Travel (EODT) CoW.
111
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Capitalisation would generally happen by the current account CoWs being credited and the required debits
applied to equivalent capital CoWs. However, in this case the capitalisation credit is applied to F8 106161 while
the debits are still applied to the appropriate capital CoW. By so doing, the debit values on the appropriate capital
account CoWs are correct and the Field provision Current account costs are not reduced to zero but are still in
debit.
Methodology
Finance Analysts from Reporting Planning and Analysis (RPA) provide details of how much has been capitalised
against the relevant capital CoWs. Each capital CoW is assigned to the relevant Plant Group (PG) according to its
treatment in Aspire. The costs are apportioned to the PGs in proportion to the amounts capitalised to each capital
CoW.
Data Source/s
Capitalisation data from RPA cumulative to P9. Management believe this to be reflective of the full year.
See Appendix E for Key Destinations
DTNCAP2
BC
Postal Services Non Pay
Description
This base apportions costs relating to the Openreach Line of Business (LoB); F8 209340 codes (Postal Services
Non-pay) which is normally used to collect non-pay cost for postal services.
But, in Organisation Unit Code (OUC) BC, the code has been used to process adjustments that are part of the
capitalisation of Field Provision costs. These adjustments are unconnected to postal services.
OUC BC undertakes customer related activities that are collectively described as Field provision. The work
involved is current account but part of the costs booked to them are validly capitalised on to the equivalent
capital Classes of Work (CoWs). The current account costs involved in this case are for a variety of activities such
as tools and small stores, Travel and Subsistence (T&S), fuel, clothing, materials handling charges.
Capitalisation would generally happen by the current account CoWs being credited and the required debits
applied to equivalent capital CoWs. However, in this case the capitalisation credit is applied to F8 209340 while
the debits are still applied to the appropriate capital CoW. By so doing, the debit values on the appropriate capital
account CoWs are correct and the Field provision Current account costs are not reduced to zero but are still in
debit.
Methodology
Finance Analysts from Reporting Planning and Analysis (RPA) provide details of how much has been capitalised
against the relevant capital CoWs. Each capital CoW is assigned to the relevant Plant Group (PG) according to its
treatment in Aspire. The costs are apportioned to the PGs in proportion to the amounts capitalised to each capital
CoW.
Data Source/s
Capitalisation data from RPA cumulative to P9. Management believe this to be is reflective of the full year.
See Appendix E for Key Destinations
DTNCNIP
AR
Core Gateway - Network Intelligent Platform
Description
This base apportions iBuy Contract Support costs using F8 Code 200790.
iBuy provides a simple, consistent process and a single tool through which all goods and services will be
purchased. iBuy enables the purchase goods or services directly, or via a link (from iBuy) to an existing ordering
tool.
Methodology
Analysis of Purchase orders by Vendor Management at year end (or P11) is used to derive this base. Destinations
dependent on use of iBuy for Contract Payments.
Data Source/s
In year Vendor activity from the iBuy purchasing system.
See Appendix E for Key Destinations
112
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
DTNCNSPO J4
Description
NS Polo
Description
This base attributes the costs relating to the usage of the Communications Networking Services (UK) (CNS)
Network.
Methodology
The data re payments made to Other Administrations is extracted from the Office of National Statistics (ONS)
report by Product.
From the supporting documents to this report the data can be split into Retail Fixed, Retail Mobile, Wholesale
and International Termination Service (ITS) payments by Product. The percentages of payments appropriate to
Retail International Direct Dialling (IDD), Retail Integrated Services Digital Network (ISDN), Intelligent Virtual
Private Network (IVPN), Freefone, Wholesale and ITS are then calculated. The percentages for Fixed and Mobile
are calculated separately for each Product.
The majority of the costs are apportioned to CB561 (Interconnect Payment of Other Communication Providers),
although some apportionment is required to P861 (Other - Non Outgoing IDD (CNS)) for ITS.
BT’s International Termination Service (ITS) provides wholesale carrier customers with a solution for terminating
international voice traffic. BT iVPN is a next-generation network service that can substantially improve BT
customers’ business processes and the performance of their business applications.
Data Source/s
The data used is for Period 12. Management believes this Period to be reflective of the full year.
The payment data is obtained from the ONS report issued by Steria India on behalf of BT. It is produced from
Oracle Business Intelligence using the billing system IXBS NG (Interconnect Bureau Service New Generation) as
its data source.
Retail IDD volume data is obtained from the Call Statistics Centralisation System (CSCS) analysis provided by the
BT Retail Finance team.
See Appendix E for Key Destinations
DTNCOP
MP
Engineering Staff Pay and Store Issue Costs – Payphones and Chargecard
Description
This base apportions the expenditure incurred on engineering pay, stores costs and contract/other purchases to
provide maintenance of the public payphones mechanisms relating to Organisational Unit Code (OUC) MP.
OUC MP represents the management and support of the Payphones and Chargecard unit in the mainland of
Great Britain, with the exception of parts of Scotland (Highlands and Islands).
Methodology
This base is derived from 2 elements:
•
Fault Identification and Time Recording.
BT Payphone engineers record their actions against a specific clear-code which is processed via the Payphones
‘eRIC’ system and then passed on to Customer Service Systems (CSS) and the Payphones Data Warehouse (DW).
The reporting functionality of the DW enables the engineering activity to be analysed by Product type and activity
and the time spent on the different activities to be derived.
Each fault type is notated to show which of the Accounting Separation Products or Plant Group (PG) it relates to.
The sum of the total time spent on each Product/PG (faults x time per fault) is then used to determine the
weighted apportionments to the AS Products.
The resulting apportionment is then applied to the pay cost by Class of Work (CoW) to generate the pay
expenditure allocation.
The fault data should relate to as much of the period being analysed as is possible.
113
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
•
Stores.
Maintenance stores are either replenished following usage by the Payphone Engineer or are ordered by the
Payphones’ Control for project work. Replenishment is managed by eRIC (mentioned above) which feeds into the
Automated Supply Chain (ASC) stock ordering system whereas project items are ordered direct from ASC.
The eRIC system uses the details of the payphone being worked on to determine the CoW that the stores cost is
allocated to.
The base apportionment is achieved by collating the stores costs by item code, with each item code being notated
as being pertinent to one of the Payphones AS Products or PG. This generates a weighting of the costs, which are
obtained from the Central Information Database (CID).
Aggregation of the above
The resulting costs from elements 1 and 2 are aggregated to derive a final weighted apportionment.
NOTES
The basis for the allocation of costs to the applicable AS Product is either by a discrete method, i.e. where fault
clear codes or stores items relate to a specific Product such as Multimedia, or (as in the case of public payphone
maintenance) by a determination dependant on the clear code or stores item. For example, the following faults
and stores item usage are pointed to the Retail Payphone AS Business (Product Group G573) or to the Payphone
Operations PG (PG622A) as shown:
G573
•
•
•
Coin/card entry.
Coin runway/escrow/Validator and card reader.
Cash compartment.
PG622A
•
•
•
•
Handset/cord.
Keypad/button.
Software.
Mechanism casing faults.
Expenditure associated with PG622A is deemed to be generic in providing access from a payphone to the BT
network whereas maintenance costs relating to direct call revenues are proper to G573 (see base PG622A).
ASC, Non-ETG Time Recording (NETR) and CID are National BT Systems whereas eRIC is a system owned by the
Payphones Business.
The fault records, stores items consumed and ledgered values used to construct the base are obtained so as to
cover as much of the period being evaluated as is possible. This may vary year-on-year.
Data source/s
Average weighted Fault clears – sourced eRIC (BT Payphones system).
Stores data – sourced from CID.
Non pay expenditure – sourced from CID.
See Appendix E for Key Destinations
DTNFA
WP
BT Property Fixed Assets
Description
BT sold a major portion of its property estate to Telereal, and now leases many of the properties it occupies. The
remaining properties will be held until sold. This base is used to apportion the Net Book Values (NBV) of the
retained BT Property Fixed Assets.
Methodology
The BT asset values are apportioned using an analysis of the transfer charges made to the BT occupants.
Overview of Transfer Pricing Process
A regular review is carried out of space consumed by BT units in BT owned buildings. BT units are then charged
for the occupancy. The base charge is then calculated as floor space times the market rent.
114
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Buildings are designated as either Specialised (e.g. exchanges) or General Purpose (e.g. offices) and the charges
detailed by both OUC and Building on the Group Properties Horizon system.
ASPIRE is used to generate a base for the General Purpose buildings, utilising the charges by OUC and the
corresponding pay bases. The base used to support the Specialised Buildings is derived by an analysis of the floor
space occupied by equipment type.
The two bases are then combined, weighted by the relative charges, and applied against the BT Retained Estate
Fixed Asset values.
Data Source/s
Horizon and Aspire: Cumulative to and including Period 12.
Horizon maintains building financial and floor space usage data, by Organisational Unit Code (OUC), and is used
to bill users for occupancy. The Building Fixed Asset values are therefore apportioned based on usage.
See Appendix E for Key Destinations
DTNFA
Y3
Motor Transport Fixed Assets
Description
This base apportions the Net Book Value (NBV) of Motor Transport fixed assets.
Methodology
This Group unit makes detailed internal transfer charges with regard to which units use its service, an ASPIRE
report can be produced of the internal transfer charges identifying the Products and Plant Groups (PGs) which
are served by it and an apportionment is made on this basis.
Data Source/s
Management have used ASPIRE internal transfer charges reports for cumulative Period 12.
WILLOW (Fleet management system on which all vehicles are tracked and monitored).
See Appendix E for Key Destinations
DTNIH
BC
Plant Protection Officers (PPOs)
Description
This base apportions Profit and Loss (P&L) Non ETG Pay costs of Plant Protection Officers (PPOs) and other
employees under the requests of External Plant Maintenance Control. This unit safeguard BT’s plant from other
entities that plan to undertake site works around BT plant (mainly underground equipment). For example, if a
gas company is planning to dig up an area to complete work on a gas main, a BT PPO will go to the site before the
gas company commences their work and mark the areas where BT plant exists. Therefore the gas company will
know to be cautious when digging in those areas.
Methodology
The costs being apportioned are typically employee costs and are apportioned to the range of Plant Groups (PGs)
and Activity Groups (AGs) which equate to the plant protected by this service.
The Costs are apportioned using an analysis of depreciation costs during the year allocated to the appropriate
plant types.
For example, if the relevant PGs were only copper and optical fibre and £25 million was spent on copper cable
during the year and £50 million was spent on optical fibre cable during the year, then two thirds of the plant
protection costs would be apportioned to the optical fibre PG and one third would be apportioned to the copper
cable PG.
Data Source/s
Management have used a cumulative period analysis of depreciation costs which they believe to be reflective of
the full year.
See Appendix E for Key Destinations
115
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
DTNIK
MJ
Description
Northern Ireland, Customer Service Centres
Description
This base apportions the pay and non-pay costs ( in Organisational Uni Code (OuC) MJ and F8 codes 153025/
207521 only ) associated with the Customer Contact Centres (CCC) staff involved in Billing, Inland and
International Directory Enquiries and Operator Assistance Services, Customer Complaints, Provision Service, Fault
Reporting and Repairs and general enquiry activities.
Types of costs are Profit and Loss (P&L) Current Non-ETG pay and Balance Sheet (Fixed Asset) costs.
Methodology
The methodology is to use data from the new Call Centre Internal Trading Model developed by Customer Service
Finance during the previous year.
The model is considered to be fit for purpose and the business units now receive monthly statements and accept
the charges derived from the model.
The QBC (Queue Based Costing) Model matches volumes to Customer Service (CS) costs by call queue levels. Data
sources are from the Merlin and Nexus systems, which are Performance and Management Information Reporting
systems.
Each call queue either has a Product identifier so it can be pointed directly to Products or, where it doesn’t, it is
treated as follows :
•
•
•
Where the Product identifier is ‘ All Products ‘, then it is broken down further by sub-Product identifiers into
activities including Consumer and Business Repair, Billing, Provision Service ( PSU ) and various others. The
repair element is apportioned to Products by using an analysis of fault clear codes from Galileo. The Billing
element is apportioned by spreading across Residential Revenue (agreed certain sectors only), the rationale
being that the Billing activities are representative of all Consumer spend and therefore the cost of those
Billing activities should be spread across all Residential revenue. The remaining other ‘ All Products ‘
activities are apportioned across either Residential, Business, Major Business or Northern Ireland Revenue as
identified by the appropriate Business Unit.
Where the Product identifier is ‘Calls and Lines ‘, that element is pointed to an agreed range of Calls and
Rentals Products and spread across Residential Revenue.
Where the Product identifier is described as ‘Not TLC‘(Total Labour Cost), that element is recognised and
treated as an overhead of the whole base.
Data Source/s
Galileo, Merlin and Nexus systems.
See Appendix E for Key Destinations
DTNURS
AL
Unallocated Returned Stores
Description
This base apportions Profit and Loss (P&L) stores costs associated with the value of Unallocated Returned Stores.
These Unallocated Returned Stores relate to stores originally issued to engineers which have subsequently not
been required, or used, and have been returned by the engineer against Class of Work (CoW) URS.
CoW URS includes:
•
•
•
With OUC, CoW and Job/Estimate number.
Stores returned with OUC details but with missing or invalid CoW Job/Estimate number.
With OUC CoW and Job/Estimate number where the job has been closed and removed from CMS.
Methodology
Since the stores have been returned with an invalid or missing CoW, the basis of apportionment is determined
relating to the stores issued to the Operate Line of Business (LoB) during the year, as identified by the stores costs
on the Central Information Database (CID).
Data Source/s
CID Period 10
See Appendix E for Key Destinations
116
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
DTNURS
OUC
BC
Description
Unallocated Returned Stores
Description
This bas apportions Profit and Loss (P&L) stores costs associated with the value of Unallocated Returned Stores.
This balance relates to stores originally issued to engineers which have subsequently not been required or used
and have been returned by the engineer against Class of Work (CoW) URS.
CoW URS relate to Stores returned with Organisational Unit Code (OUC) details but with missing or invalid CoW
information).
Methodology
Since the stores have been returned with an invalid or missing CoW, the basis of apportionment is determined
relating to the stores issued to Openreach Line of Business during the year as identified by Openreach Finance
using the stores ratios calculated by them.
Data Source/s
Operate Period 12 Stock Report.
See Appendix E for Key Destinations
DTTCE
ALL
Core
OUCs
Trading Stocks – Network Equipment
Description
This base apportions trading stocks arising as a result of BT’s trade in network equipment, such as private circuits,
optical fibre network etc. These fixed assets relate to the engineering stores entitled ‘Materials Awaiting
Installation’.
Methodology
The ‘Material Awaiting Installation’ balance is apportioned using the closing stock balances from stock reports
that are maintained and provided by the Swindon Stock Accounting Unit.
Each item of BT’s stock is assigned a Quarterly Rolling Forecast (QRF) code (groups of item codes with similar
functional categories) and the base is derived from a download of closing stock balance by QRF code specifically
for network stock. A separately maintained spreadsheet maps each QRF code to a specific ASPIRE Accounting
Separation (AS) cost centre based on the description assigned to the QRF code in question e.g. QRF code 72
relates to public payphones for which there is a specific AS Product.
Data Source/s
The data is sourced through the Automated Supply Chain (ASC) system which is a stores ordering, issuing and
reporting system. The data is then fed through Management Information Database (MIRAS) before being
forwarded by the Data supplier.
Stock report that gives closing balances by QRF. Spreadsheet that maps QRF codes to AS cost centres.
Management have used a cumulative period which they believe to be reflective of the full year.
See Appendix E for Key Destinations
DTTCY
ALL
Core
OUCs
VAT
Description
This base apportions the Output VAT creditor, which arises from the VAT collected by BT from UK customers for
forwarding on to HM Customs and Excise department. These VAT creditor balances are attributed pro rata using
BT's core turnover.
Methodology
This base is prepared using revenue generated by BT UK sourced from apparatus sales, connection charges, other
single payments, rentals, enhanced maintenance, calls gross, calls discounts and receipts from Other
Communication Providers (OCPs). These different classifications of revenue equate to specific sectors (groups of
General Ledger codes with similar functional categories) within the ASPIRE system.
The apportionment for this base is derived from a download of BT’s UK revenue from the ASPIRE system for each
of these sectors by cost centres and is solely apportioned to Products (Ps).
Data Source/s
ASPIRE Period 12.
See Appendix E for Key Destinations
117
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
EXCEPT
OUC
AN
Description
Operational Integrity (OI)
Description
Operational Integrity (OI) is responsible for the data operations centres, desktops, internal networks and security
operations within BT.
OI delivers and maintain IT infrastructure and services for BT’s own use and for external customers (ICT) to
customer specified service level agreements. OI also provides support for all IT services for non UK locations to
customer specified service level agreements.
Apportionment Summary
The apportionment of OI costs is made using an analysis of the activity of units receiving the transfer charge from
OI. There is an internal billing system that is used by BT Design that holds details of all work undertaken, the cost
and for which Organisational Unit Codes (OUCs) the work is carried out. This system enables internal charges to
be generated to other BT units. The computing element of the transfer charges to the LoBs from BT Operate are
work out on an asset base calculation.
Methodology
OI recovers its cost by charging other BT units for its activities. It does this by maintaining records of the units
'owning' the expenditure and can recover the costs using internal transactions. It therefore follows that the
activities of the units being charged, weighted by the amounts each are being charged by OI, should provide an
appropriate base to apply to the costs incurred by OI.
This result is produced by each line of business analysing the transfer in from OI using extracts from the BT Design
billing system. The BT Design billing system provides details regarding what projects/ programmes of work the
charges relate to. This data helps determine how to allocate these costs. Once these transfer In have been
analysed by each of the Line of Businesses. They are consolidated into one weighted base.
Data Source/s
BT Design Billing System.
See Appendix E for Key Destinations
EXCEPT
AP, AR
Service Assurance
Description
The Service Assurance unit within BT Operate is responsible for the data operations centres, desktops, internal
networks and security operations within BT.
Service Assurance delivers and maintain IT infrastructure and services for BT’s own use, and for external
customers (ICT) to customer specified service level agreements.
The unit is a cost recovery centre, and recovers its costs by transfer charging other Lines of Business (LOBS) for
the services it provides, using agreed charging criteria.
Apportionment Methodology
The apportionment of Service Assurance costs is derived by utilising an analysis of the costs recovered from each
Line of Business (LOB) receiving a transfer charge. The Service Assurance Billing maintains details of the
charging categories including Data Centres, Servers and Storage, Main Frame Computers support, Application
Support and Maintenance. Personal Computers, IT Helpdesk, as well as specific LOB Computing Support teams.
Each charging category is apportioned using a methodology appropriate to the activity being supported. For
example LOB’s Data Centre costs are apportioned using Rack and Power utilisation information, whereas
Application Support and Maintenance is apportioned using application data maintained by the Service Assurance
Billing team. Where the cost causation is more general in nature, LOB Current and Capital Account pay is used as
a driver as this is considered to be representative of all the LOB’s activities.
The overall base is calculated by using the transfer charges to derive a split between the LOB, and then using the
methodologies described above to apportion each of the LOB elements to Plant Groups (PGs) and Products. The
one exception to this is the Operate element, because Operate do not charge themselves for Service Assurance
activities but instead charge BT Group. However the Service Assurance Billing Team has details of these intra
Operate costs, and this element is extracted from the Group charges and Operate specific apportionments are
applied.
118
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Data Source/s
BT Operate Service Assurance Billing Team.
BT Intranet, for Rack and Power and Applications detail.
See Appendix E for Key Destinations
EXCEPT
BB, BE
Openreach Chief Information Officer (CIO) unit
Description
Organisational Unit Code (OUC) BD is responsible for information systems within Openreach. The Openreach
Chief Information Officer (CIO) team directs and manages the systems agenda and associated development
budgets working with transformation teams to ensure that these systems are a key enabler for a successful
Openreach.
Methodology
The BD exceptions base follows the treatment of internal transfer charges for development projects for
Openreach.
Development projects can range from high-level strategy, down to operational and logistical development.
Development project costs are apportioned according to the nature of individual projects.
The costs of each project are individually analysed and apportioned across a range of Plant Groups (PGs).
Projects that are specific to a Product e.g. Local Loop Unbundling (LLU) and Wholesale Line Rentals (WLR) are
allocated 100% to PG772A Openreach Systems and Development (Product Specific). The rest of the
development projects are non-Product specific.
Non Product/platform specific projects are apportioned across all PGs in proportion to BT Openreach pay costs
obtained from ASPIRE.
Data Source/s
Development projects data cumulative to Period 12.
ASPIRE Pay downloads.
See Appendix E for Key Destinations
EXCEPT
BF, BH, Openreach Support Departments
BJ, BM,
BT, BY, Description
BZ
This base apportions Profit and Loss (P&L) Depreciation, Travel and Subsistence etc and Balance Sheet (Fixed
Assets etc) costs associated with the Openreach Support departments. There is no material element of their costs
that require direct apportionment.
Methodology
Costs follow a full Line of Business (LoB) pay exception base. I.e. Costs follow the apportionment of direct pay
from the operational departments. This unit’s costs are thought to support the whole of Openreach.
Data Source/s
The exception base is calculated from all ETG and non-ETG Pay within Openreach, calculated directly from Aspire
downloads.
See Appendix E for Key Destinations
EXCEPT
BMA,
BME
Openreach Service Division
Description
This base apportions the Profit and Loss (P&L) Pay etc costs associated with Organisational Unit Code (OUC) BMA.
BMA is the Service division of Openreach. The teams within BMA are primarily call centre based, with staff
supporting the provisioning and repair of Openreach services. As the various teams support specific services, their
costs cannot be spread on a Direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the BM Finance Team. The BMA base is then
constructed by reference to the respective service that each team member works on. Where a team works for a
specific service (for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread
across Residential and Business lines by reference to their respective P12 volumes.
119
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Data Source/s
Headcount analysis is received from the BM Finance team.
See Appendix E for Key Destinations
EXCEPT
BP
Openreach Sales, and Product Management team
Description
This base apportions the Profit and Loss (P&L) Non-ETG Pay etc costs associated with Organisational Unit Code
(OUC) BP. BP is the Sales and Product Management division of Openreach. As the various teams support specific
services, their costs cannot be spread on a direct pay or revenue basis.
Methodology
A breakdown of each team’s headcount is obtained from the BP Finance Team. The BP base is then constructed
by reference to the respective service that each team member works on. Where a team works for a specific service
(for example Wholesale Line Rentals (WLR) External Connections, then their FTE will be spread across Residential
and Business lines by reference to their respective P12 volumes.
Cost from the above categories are allocated directly (100%) to PG502B SG&A Openreach Sales Product
Management.
Data Source/s
There are not data requirements for this base since all costs are allocated directly to PG502B.
See Appendix E for Key Destinations
EXCEPT
C
Corporate Costs
Description
The costs within this OUC include costs relating to personnel and administration, computing, planning and
development, general support and general management type costs. These costs are identified as ‘Corporate
Costs’, which support BT in general (both the people in BT and the management of its assets).
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are allocated 100% to the Corporate Costs AG AG112.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
See Appendix E for Key Destinations
120
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
EXCEPT
OUC
D
Description
BT Design and Innovate - Development and Consulting Projects
Description
BT Innovate and Design provides research, development and consulting services for BT by developing
technological ideas and solutions for the business. Research, development and consulting projects are typically
commissioned by an Organisational Unit Code (OUC) and may be:
•
•
"General in nature if commissioned by an OUC which supports a wide range of Products.
"Specific to a particular Product/set of Products if commissioned by an OUC focused on that particular
Product(s).
Chief Technical Officer (CTO) is treated as an overhead of the Design Unit as its activities are directly related to it.
Apportionment Summary
The apportionment of Development costs is made using an analysis of the business cases for each Line of Business
(LoB) receiving the transfer charge from BT Innovate and Design. There is an internal billing system that is used
by BT Design that holds details of all work undertaken, the cost and for which OUCs the work is carried out. This
system enables internal charges to be generated to other BT units.
Methodology
BT Design provide research, development and consulting services for BT by developing innovative, technological
ideas and solutions that translate into practical and marketable solutions for the business. Research,
development and consulting projects are typically commissioned by an OUC.
This group recovers its cost by charging other BT units for its activities. It does this by maintaining records of the
units 'owning' the expenditure and can recover the costs using internal transactions. It therefore follows that the
activities of the units being charged, weighted by the amounts each are being charged by BT Design, should
provide an appropriate base to apply to the costs incurred by BT Design.
The transfer charges to each LoB are analysed to produce a base using extracts from the BT Design billing system.
The BT Design billing system provides details regarding what projects/ programmes of work the charges relate to.
This data helps determine how to allocate these costs. Once these transfer In have been analysed by each of the
Line of Businesses. They are consolidated into one weighted base.
Each of the individual business cases billed to LoBs by Design is analysed separately and allocated to the
appropriate products / Plant Groups, so for example, if a business case is for 21CN, its costs are allocated to 21CN
PGs. Where the projects are non product/platform specific and are general in nature, as for a process for example,
the cost causation is more general in nature, LoB Current and Capital Account pay is used as a driver as this is
considered to be representative of all the LoB's activities. The exception to this is Group costs charged to OUC C
which are allocated to AG112 (Corporate).
Data Source/s
BT Design Billing System.
See Appendix E for Key Destinations
EXCEPT
E
Miscellaneous Corporate Spend
Description
This base apportions “Corporate Costs” include those relating to personnel and administration, computing,
planning and development, general support and general management associated with this Organisational Unit
Code (OUC) E. They support BT in general (both the people in BT and the management of its assets) and are
allocated directly to AG112 Corporate Costs.
Methodology
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Costs are apportioned 100% to AG112 Corporate Costs.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
See Appendix E for Key Destinations
121
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
EXCEPT
OUC
Description
J, JF, JV BT Global Services
Description
This base apportions the costs booked by Organisational Unit Code (OUC) J (BT Global Services) which are not
otherwise apportioned. It is used to apportion costs of a general nature for which there is no direct causal
relationship with any Product or service. The items apportioned by the exception base include:
•
•
•
General management and agency costs.
Network telephony and Broadband charges.
Insurance
Methodology
The EXCEPT base is derived from:
•
•
An ASPIRE Period 12 pay report, run for the Global Services Line of Business (LoB) to apportion EXCEPT J
item to Products (Ps)/Plant Groups (PGs) and Activity Groups (AGs). It is essential that the pay report from
ASPIRE is only produced after the input of all other Global Service pay bases because of the iterative effect
on pay at Top Level OUC J.
The labour costs of each destination Products, PGs and AGs are weighted as a percentage of the total,
excluding New Start Leaver and salesmen bonus costs as these are not considered as drivers for overhead
activities. This percentage forms the EXCEPT J base.Dagram 1 and 2 below illustrate this methodology.
In Diagram 1, the Global Services Line of Business (LoB) appears in the BT core hierarchy. On previous runs in the
regulatory accounting process, a base is derived for OUCs that apportions labour cost to Products, PGs and AGs.
This is represented for example by OUC JG, which used a base to apportion labour costs to Products 1, 2, and 3
at £10, £15 and £25 respectively.
122
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Diagram 1
It is assumed in this example that Products 1, 2 and 3 are the only Products that have labour cost apportioned to
them. The ASPIRE pay report, used as a base for EXCEPT J, identifies the labour costs apportioned to Products 1,
2 and 3 through other bases.
A base for allocating EXCEPTJ items is then calculated by weighting previous labour attributions made for each
Product as a percentage of the total. This can be seen in diagram 2, where previously apportioned pay cost for
Product 1, 2 and 3 are given a weighting of 20%, 30% and 50% respectively, that forms the base for EXCEPT J.
Data Source/s
ASPIRE Period 12 pay report.
See Appendix E for Key Destinations
EXCEPT
JRM
Implementation Systems and Processes
Description
This base apportions the costs of the Organisational Unit Codes (OUC) which supports Global Services
implementation systems and processes in the UK, US and Europe.
This unit provides a full range of information services to business teams whilst advising on the most effective use
and the relevant systems. The unit also manages Global Services total information system budget, while ensuring
that systems’ investments are effectively deployed.
This unit mainly consists of staff related costs supporting Global services implementation systems and processes.
Methodology
Costs were originally apportioned using cost data derived from two systems, E-reports (UK base data) and CARS
(overseas data) showing the numbers of people employed on UK, European and Worldwide activity. CARS is no
longer used, currently data will be derived from Hyperion Financial Manager (HFM) which is the latest system
used by Global for Management Accounts consolidation.
Non UK costs are mapped to P630 (Europe) or P633 (BT Worldwide) as appropriate.
UK costs are apportioned based on a Global Services pay from ASPIRE for the latest available run. Use top Level
Pay Base e.g. J EXCEPT.
123
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Data Source/s
HFM for a period which BT management believes is reflective of the full year.
Aspire pay analysis at Period 9, management believe this to be reflective of the full year. Note: Base sources under
investigation by BT LoB contact, since survey data last updated by BT for P12, 04/05.
See Appendix E for Key Destinations
EXCEPT
KD, KK,
KU
Wholesale Markets
Description
Wholesale Markets is the part of the Wholesale Lines of Business (LoB) responsible for marketing Wholesale
Products and services. It has now been split into three top level Organisational Unit Codes (OUCs) – KD, KK and
KU. They cover all aspects of the relationship with Communication Providers (CPs) and BT Retail. This exception
is necessary because the unit gets involved in activities that are spread across a range of Products which are
marketed to the Communication Providers and other BT LoBs.
Types of cost include stores and non-ETG pay costs.
Methodology
An activity based survey is conducted by the Network Cost Analysis (NCA) team. The activity based survey is based
on various data, estimates of resource working on particular products, product volumes and revenue.
The survey is sent out electronically (at three and four digit OUC level), asking for percentage of total time of FTEs’
engaged in any marketing activity from a list of supplied. The Product list is the most recent Accounting
Separation Product list as at the time of survey being conducted, restricted to Wholesale Products only. From
analytical reviews performed on the data returned, telephone interviews may be required of the respective team
managers to fill any gaps or where data returned generates queries.
The respondents return the data, electronically, at percentage of time at Product level. The Products are then
mapped back to the appropriate components that feed them in Accounting Separation, summing up to be 100%
at component levels. These components are subsequently mapped to the Plant Groups (PGs) that feed these
components, summing up to be 100% at every individual PG level. However, in the advent of a respondent
engaging in activities that relate to Products currently in development phase (therefore not on list of downloaded
Products), the percentage of their time shall be absorbed across the range of Accounting Separation Products
that are supported by their OUC. Where the respondents support existing Products that are not shown on
Accounting Separation (usually due to lack of materiality), then their percentage is mapped to P684- Wholesale
Residual.
Data Source/s
Wholesale Market Activity based Survey for time expensed.
See Appendix E for Key Destinations
EXCEPT
KFB
Wholesale Finance - Revenue/Billing
Description
This base apportions Profit and Loss (P&L) costs and Balance sheet items booked to Organisational Unit Code
(OUC) KFB in Wholesale Line of business (LoB). The team within KF are Wholesale Finance, and those within KFB
are revenue management. The costs booked to KFB are personnel costs (mostly Non-ETG pay).
Methodology
The base is derived using the total number of personnel included in the OUC KFB. A year-end activity survey
identifies the number of OUC KFB personnel having interconnect responsibilities and as such this percentage is
apportioned to PG512A Product Management Policy and Planning Interconnect Other Communication
Providers. The remaining percentage is allocated across all network activity using an Aspire system generated
Wholesale pay overhead base (excluding PG512A) at the latest available Period. Management believe this Period
to be reflective of the full year.
Data Source
Year-end activity survey identifying the number of OUC KFB people apportioned to PG512A.
Aspire system generated Wholesale pay overhead base at the latest available Period.
See Appendix E for Key Destinations
124
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
EXCEPT
OUC
KO
Description
Wholesale (Network) Legal and Business Services Pay Costs
Description
This base apportions Profit and Loss (P&L) costs and Balance sheet items booked to Organisational Unit Code
(OUC) KO in Wholesale Line of business (LoB). The personnel within OUC KO work on Wholesale (Network) Legal
and Business Services. The costs booked to OUC KO are personnel costs (mostly Non-ETG pay).
Methodology
A year-end activity survey identifies the number of OUC KO personnel having Interconnect responsibilities and
as such this percentage is apportioned to PG512A Product Management Policy and Planning Interconnect Other
Communication Providers. The remaining percentage is allocated across all network activity using an Aspire
system generated Wholesale pay overhead base (excluding PG512A) at the latest available Period. Management
believe this Period to be reflective of the full year.
Data Source/s
Total number of personnel included in the OUC - KO (taken from the Internal Directory at the latest available
Period). Management believe this Period to be reflective of the full year.
Year-end activity survey identifying the number of KO personnel apportioned to PG512A. Survey supplied by BT
Wholesale Legal Team.
An Aspire system generated Wholesale pay overhead base at the latest available Period. Management believe this
Period to be reflective of the full year.
See Appendix E for Key Destinations
EXCEPT
M
BT Retail Markets
Description
This base apportions Profit and Loss (P&L) Pay, Travel and Subsistence (T&S) etc and Balance Sheet (Fixed Asset
etc) costs booked by Organisational Unit Code (OUC) M (BT Retail Markets) which are not otherwise attributed
using other bases.
The base is used to apportion costs of a general nature for which there is no direct causal relationship with any
Product or service. It covers supervision and general management overheads, relating to the full range of BT
Retail activities.
Methodology
The costs are apportioned pro rata to the pay costs incurred, on both capital and current account expenditure,
and previously attributed from the OUCs within M, excluding New Start Leaver and Pension costs as these are not
considered as drivers for overhead activities.
A detailed description of the base computation process is described below :
If we assume that there are four OUCs which incur payroll costs within the M hierarchy and that these costs are
booked to two F8 codes. Each OUC incurs £100 of cost, giving a total payroll cost of £400. These costs are
allocated to Products via a preceding iteration of the system processing, as follows:
The table above shows that a total payroll cost of £80 has been allocated to Product A, which represents 20% of
the total payroll cost allocated from M OUCs.
Taking the results of the allocations, as shown in the above table, we would allocate 20% of the costs allocated
under the OUC exception base M to Product A, 22.5% to Product B, 27.5% to Product C and 30% to Product D.
This allocation can only take place after the allocation of direct pay costs from M OUCs has been completed. This
reflects the iterative nature of the system processing.
125
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Data Source/s
ASPIRE Pay data cum to Period 12.
See Appendix E for Key Destinations
EXCEPT
M7
Residential Customer Contact Centres (CCC) Exception Base
Description
This base apportions the pay and non-pay costs associated with the Customer Contact Centres (CCC) staff
involved in Billing, Inland and International Directory Enquiries and Operator Assistance Services, Customer
Complaints, Provision Service, Fault Reporting and Repairs and general enquiry activities.
Types of costs are Profit and Loss (P&L) Current Non-ETG pay and Balance Sheet (Fixed Asset) costs.
Methodology
The methodology is to use data from the new Call Centre Internal Trading Model developed by Customer Service
Finance during the previous year. The model is considered to be fit for purpose and the business units now
receive monthly statements and accept the charges derived from the model.
The QBC (Queue Based Costing) Model matches volumes to Customer Service (CS) costs by call queue levels.
Data sources are from the Merlin and Nexus systems, which are Performance and Management Information
Reporting systems. Each call queue either has a Product identifier so it can be pointed directly to Products or,
where it doesn’t, it is treated as follows :
•
Where the Product identifier is ‘ All Products ‘, then that is broken down further by sub-Product identifiers
into activities including Consumer and Business Repair, Billing, Provision Service ( PSU ) and various others.
The repair element is apportioned to Products by using an analysis of fault clear codes from Galileo. The
Billing element is apportioned by spreading across Residential Revenue (agreed certain sectors only), the
rationale being that the Billing activities are representative of all Consumer spend and therefore the cost of
those Billing activities should be spread across all Residential revenue.
The remaining other ‘ All Products ‘ activities are apportioned across either Residential, Business, Major Business
or Northern Ireland Revenue as identified by the appropriate Business Unit.
•
•
Where the Product identifier is ‘Calls and Lines ‘, that element is pointed to an agreed range of Calls and
Rentals Products and spread across Residential Revenue.
Where the Product identifier is described as ‘Not TLC‘(Total Labour Cost), that element is recognised and
treated as an overhead of the whole base.
Data Source/s
Galileo, Merlin and Nexus systems.
See Appendix E for Key Destinations
EXCEPT
MJ
Northern Ireland Pay Accommodation Costs
Description
This EXCEPT MJ base apportions BT Retail Northern Ireland Organisational Unit Code (OUC) MJ’s pay and pay
related costs, including accommodation.
Methodology
BT Retail Northern Ireland is, both geographically and operationally, a self-contained processing unit within its
parent Division M.
The costs in MJ OUC that use the ‘Except-MJ’ base are apportioned on the basis of the previously apportioned
pay (not pension / leaver) costs particular to OUC MJ, rather than pay costs for the entire Division M. This reflects
the fact that costs in OUC MJ is driven by its activities in a manner that is different from overhead activities of the
other OUCs in Division M.
126
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Diagram: Overview of Divisions and Sub-divisional OUCs
Pay costs of the OUC MJ are identified, and will have been previously apportioned in the Accounting Separation
(AS) system using methodologies relevant to the particular pay activities. These apportionments will have
exhausted these pay costs to OUC MJ’s Products and the percentage weights applied to these Products provide
the base ‘EXCEPT-MJ’
The costs using this base are attributed to the same Products, and in the same proportion, as the previously
apportioned pay costs for the OUC MJ.
Diagram: Except (OUC MJ) Apportionment Process
Data Source/s
Accounting Separation (AS) system pay data for Period 12.
See Appendix E for Key Destinations
EXCEPT
MLC
MLC Pay Overhead
Description
This EXCEPT base apportions Profit and Loss (P&L) (T&S, Stationery, Current ETG and Non-ETG pay etc) and
Balance sheet (Accumulated Depreciation etc) costs identified with the Organisational Unit Code (OUC) MLC.
127
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
BT Directories (OUC MLC) aim to revolutionise the way consumers and businesses get together by delivering
strategic and financial commitments. They focus on three core elements:
•
•
•
Voice.
The Phonebook.
Online.
Methodology
The costs in MLC OUC that use this ‘Except-MLC’ base are apportioned on the basis of the previously apportioned
pay costs particular to OUC MLC, rather than pay costs for the entire Division M. This reflects the fact that costs
in OUC MLC is driven by its activities in a manner that is different from overhead activities of the other OUCs in
Division M.
OUC MLC pay costs are identified (they will have been previously apportioned in the Accounting Separation (AS)
system using methodologies relevant to the particular pay activities) and exhausted to OUC MLC’s Products. The
percentage weights applied to these Products provide the base for ‘EXCEPT-MLC’
The costs are attributed to the same Products, and in the same proportion, as the previously apportioned pay
costs for OUC MLC.
Data Source/s
Accounting Separation (AS) system pay data for Period 12.
See Appendix E for Key Destinations
EXCEPT
MLC2
Phonebooks
Description
This base apportions Organisational Unit Code (OUC) MLC Profit and Loss (Current Non ETG Pay) and Balance
Sheet (Fixed Asset GBV) costs relating to printing, producing and distributing BT’s Phone Book.
Methodology
The BT Phonebooks exception base is apportioned on the basis of a pay analysis completed by the BT Directories
Product Reporting Group. This allocates the costs between the Phonebooks Plant Group (PG) PG933A and the
Miscellaneous Number Information Retail Product P306.
Data Source/s
Management estimates of pay analysis completed by the BT Directories Product Reporting Group carried out at
P9.
See Appendix E for Key Destinations
EXCEPT
MLC9
Phonebooks
Description
This base apportions Organisational Unit Code (OUC) MLC Profit and Loss (Current Non ETG Pay) and Balance
Sheet (Fixed Asset GBV) costs relating to printing, producing and distributing BT’s Phone Book.
Methodology
The BT Phonebooks exception base is apportioned on the basis of a pay analysis completed by the BT Directories
Product Reporting Group. This allocates the costs 100% to Plant Group (PG) PG933A.
Data Source/s
Management estimates of pay analysis completed by the BT Directories Product Reporting Group carried out at
P9.
See Appendix E for Key Destinations
EXCEPT
MP
General Payphone and Chargecard Costs
Description
This base is used to apportion general Payphone and Chargecard costs (Profit and Loss Current Non-ETG Pay etc)
where no other base is valid.
Methodology
This base uses the allocations employed in the Management Accounts which point non-specific costs to the
various Payphones lines-of-business.
128
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Payphones Base BALS1 is used to weight the apportionments for Public Payphone activity between Retail
Payphones (G573) and Payphone Operations (PG622a).
Data Source/s
Payphones’ management accounts allocations - from the Reporting Accountant.
See Appendix E for Key Destinations
EXCEPT
MYZ
Consumer Sales Operations Exception Base
Description
This base apportions the Profit and Loss (P&L) pay and non-pay costs associated with the Consumer Sales staff
involved in sales, general enquiries and a number of support activities. The major costs attributed by the base
relate to employee and agency costs in operating the Sales organisation.
Methodology
The proposed new methodology is to produce a cost base using weekly/monthly/quarterly Product orders and
sales volumes data from the Consumer Sales Performance Analysis and Improvement group within MYL. The data
is obtained from the GTX and Seibel systems. The full sales volumes by Product for Q1-3 are used and this enables
us to apportion costs to Products relative to corresponding sales.
In order to apportion costs appropriately, the elements of the base relating to the Public Switched Telephone
Network (PSTN) Connections and Takeovers are weighted by call handling times (received from Consumer Sales
Partnership Management) and all other Products are weighted by a separate call handling time (provided by
Consumer Sales Finance).
Data Source/s
GTX.
Seibel.
Data is cumulative to Period 9 and management believes this to be reflective of the full year.
See Appendix E for Key Destinations
129
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
EXCEPT
OUC
WP
Description
BT Property Partners
Description
The base apportions costs associated with BT Property Partners.
WP is the Organisational Unit Code (OUC) for BT Property Partners, who act as the informed strategic interface
between the Lines of Business (LoB), Group and the external property infrastructure and service providers.
Property Partners manages the supply of all property and facilities in accordance with the requirements of BT
Property Partners and also holds, on behalf of BT Group, all interests in land and property including leases and
licences and manages all property and related projects on behalf of Line of Business (LoB) and Group, including
appointing and instructing external property and construction consultants.
Property Partners manages the supply of the following activities for the benefit of the BT Group.
•
•
•
•
•
•
•
•
Provision of premises - this includes the provision of land, the allocation of existing/refurbished space and
provision of new space.
"Building and plant maintenance/replacement - this includes planned/reactive maintenance and external
site maintenance.
"Alteration to accommodation - this includes minor alterations, fit out of accommodation, refurbishment
and upgrade of space.
"Moves and space management - this includes managing large-scale people moves, vacation management
and internal space brokerage.
"Estate management and strategic advice - this includes property related financial support, strategy
planning and portfolio management e.g. sub-letting.
"Rating and valuation - this includes property asset accounting and property taxation cost control in
accordance with current legislation.
"Property consultancy - this includes real estate strategy planning, property efficiency and utilisation
studies, call centre build and operation and flexible working advice.
"Global property service- this includes portfolio strategy construction, project management and real estate.
Methodology
All costs within this Organisational Unit Code (OUC) are allocated to the Facility Management Intermediate
Activity Group AG106 for onward apportionment to Products and Services. Other suitable cost centre allocations
are made for relevant Other Operating Income when material.
Data Source/s
These are allocated directly, no data source/s required.
See Appendix E for Key Destinations
130
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
EXCEPT
OUC
Y3
Description
BT Fleet Exception
Description
BT’s Fleet management function provides motor vehicles and associated Products and services to employees
within BT.
A fleet management unit within BT Group Organisational Unit Code (OUC) YL previously carried out this function.
However on 1 June 2002, a subsidiary company was set up to complete these services. This subsidiary is called
BT Fleet Limited and is a 100% BT owned subsidiary. This subsidiary was given the OUC Y3.
The services that BT Fleet Ltd provide include:
•
•
•
•
•
•
•
•
•
•
•
The sole supplier of vehicles (Company cars and Commercial vehicles) to BT, in accordance with customers
agreed requirements.
The replacement of existing vehicles with agreed suitable replacements.
The maintenance of all vehicles to BT.
The provision of a breakdown service through BT fleet nominated agents on a 7 day 24 hour basis.
Provision of fleet management services including the supply of vehicle excise and operators Licence discs.
Provision of road fuel to the BT commercial fleet through nationally agreed suppliers via charge cards.
Provision of management information regarding, fleet utilisation, operating costs, fuel usage, and allocation
data.
Provision of customer order work for agreed modifications and additions to BT vehicles.
Provision of short-term vehicle cover via our own daily hire and courtesy fleets.
Provision of accident management services via nominated third party supplier.
Sale of fleet vehicles to BT employees.
Methodology
BT Fleet Ltd provides Its services to BT units and also to customers external to BT. It uses transfer codes to transfer
the costs of the BT services it provides to the relevant BT units. It records the revenue it receives from external
parties in ‘other operating income’ codes.
This base apportions all the profit and loss (P&L) and relevant balance sheet items relating to this subsidiary to
the following:
•
•
The intermediate Activity Group AG101 (Motor Transport).
Products relating to the other operating income received from external parties.
The apportionment between these destinations is determined by reviewing the F8 codes that relate to these two
forms of ‘income’. Reviewing the transfer out codes (F8 codes beginning with 28) identifies services provided to
other BT units. Reviewing the appropriate ‘other operating income’ codes identifies services provided to external
parties.
The apportionment percentages are then calculated as follows:
131
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Data Source/s
Ledger data on ASPIRE, cumulative to and including Period 12.
See Appendix E for Key Destinations
EXCEPT
YE, YM, BT Procurement
YP, YQ,
Description
YV
These Organisational Unit Codes (OUCs) represent BT Procurement. This unit is responsible for the effective
procurement, materials planning and inventory control of a defined range of engineering materials items, tools
and consumables and network equipment.
Methodology
BT Procurement recovers its costs via the transfer charges to the Organisational Units Codes (OUCs) in BT. This
base is calculated by analysing the utilisation of the services provided by BT Procurement. The transfer pricing F8
codes are reviewed and the pointing from these is used as the basis of the overhead allocation. The analysis of the
transfer charges is applied to the underlying actual costs, which are attributed pro-rata to the transfer charge.
Transfer charges are cost based; there is not cost bias to any charged OUC. This is true for all cost based Trades
therefore this is an appropriate method of apportionment.
Data Source/s
Transfer charge analysis from the ASPIRE system, cumulative to and including Period 12.
See Appendix E for Key Destinations
EXCEPT
YL
BT Fleet Limited – Motor Vehicle Assets.
Description
BT’s fleet management function provides motor vehicles and associated Products and services to employees
within BT.
This function was carried out by a fleet management unit within BT Group (Organisational Unit Code (OUC) YL)
until 1 June 2002 when a subsidiary company was set up to complete these services (BT Fleet Limited – OUC Y3).
After this date, OUC YL continues to contain some expenditure, mainly related to motor vehicle assets.
The services that the fleet management function provides include:
•
•
•
•
•
•
•
•
•
•
The sole supplier of vehicles (Company cars and Commercial vehicles) to BT, in accordance with customers
agreed requirements.The replacement of existing vehicles with agreed suitable replacements.
The maintenance of all vehicles to BT.
The provision of a breakdown service through BT fleet nominated agents on a 7 day 24 hour basis.
Provision of fleet management services including the supply of vehicle excise and operators Licence discs.
Provision of road fuel to the BT commercial fleet through nationally agreed suppliers via charge cards.
Provision of management information regarding, fleet utilisation, operating costs, fuel usage, and allocation
data.
Provision of customer order work for agreed modifications and additions to BT vehicles.
Provision of short-term vehicle cover via our own daily hire and courtesy fleets.
Provision of accident management services via nominated third party supplier.
Sale of fleet vehicles to BT employees.
BT’s fleet management function provides its services to other BT units and also to parties external to BT. It will
use transfer codes to transfer the costs of the services it provides to other BT units to these units. It will record the
revenue it receives from external parties in ‘other operating income’ codes.
Methodology
This base apportions all the profit and loss (P&L) and relevant balance sheet items relating to this subsidiary to
the following:
•
The intermediate Activity Group AG101 (Motor Transport) and Products relating to the other operating
income it receives from external parties.
The apportionment between these destinations is determined by reviewing the F8 codes that relate to these two
forms of ‘income’. Reviewing the transfer out codes (F8 codes beginning with 28) identifies services provided to
other BT units. Reviewing the appropriate ‘other operating income’ codes identifies services provided to external
parties.
132
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The apportionment percentages are then calculated as follows:
Data Source/s
Ledger data on ASPIRE, cumulative to and including Period 12.
See Appendix E for Key Destinations
EXCEPT
YS
Supply Chain Partners
Description
Organisation Unit Code (OUC) YS represents Supply Chain Partners, which is part of Business Services. Its
responsibilities (services) include:
•
•
•
•
The inventory management, warehousing and distribution of engineering materials and network
infrastructure items to Field Engineers.
The warehousing and distribution of Customer Premises equipment to BT’s trade distributors.
The warehousing and distribution of Telephone directories.
The provision of an internal mail service as well as a Document Design and Management Service.
These services are provided to other Lines of Business (LoB), and to non-BT customers’ e.g. O2.
•
•
•
The major costs of Supply Chain Partners relates to:
Internal labour and agency costs for the unit.
Freight, postage and delivery charges associated with materials procurement.
Methodology
The Supply Chain Finance team prepare details of their costs, by Activity, cumulative to Period 10. The costs are
further split by Line of Business (LoB) and/or Channel e.g. Openreach, Wholesale, Retail, Northern Ireland and
Third Parties.
Costs relating to Stores management and distribution are apportioned as Stores Issues overheads, using LOB/
Channel Stores Issues values by Plant Group (PG) and Product from the ASPIRE system.
Costs relating to Direct Fulfilment e.g. devices etc sent directly to customers are apportioned using Residential
and BT Business Revenue. The Residential / Residential split, and the Product range, is derived from a Supply
Chain management report which analyses the Products, packages, and mode of delivery.
Mail and Office Services are apportioned as Pay overheads, using LOB/Channel Pay values by PG and Product
from the ASPIRE system.
Telephone Directory costs are allocated to the Phonebooks Plant Group and Third Party costs are allocated to
P148, consistent with the treatment of the OOI.
133
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
A weighted base is then prepared by combining the Period 10 Supply Chain costs analysis, and the bases /
allocation described above.
Note that Direct Fulfilment Postage costs are material, and apportioned using a separate Rule Type 3 base, using
the methodology described above.
Data Source/s
Supply Chain Finance management accounts data.
ASPIRE downloads of Pay, Revenue Stores Issues.
See Appendix E for Key Destinations
FTD
ALL
FTD Maintenance - Pay
Description
The FTD Maintenance Pay Rule Type 6 base uses previously apportioned Maintenance pay F8 codes, excluding
those in Exceptional Organisational Unit Codes (OUCs), to form system generated overhead bases.
Methodology
This method is used to treat costs that are not appropriate to be attributed to a single or small number of cost
centres. It treats costs where it is considered correct for them to benefit the cost centres contained in the
previously apportioned Maintenance pay costs of the unit. An example would be the pay costs for MG Class of
Work (CoW), Maintenance General Customer Equipment and Line Faults.On occasions the calculation is restricted
to distinct parts of a Line of Business (LoB), only drawing on previously apportioned costs within a defined
organisational range. This is referred to as Stand Alone Unit (SAU) overhead processing. An OUC may be classified
as a SAU within its parent Line of Business (LoB) if it is considered to perform separately identifiable tasks. It also
needs to have pay costs that have been attributed prior to the overhead calculation, that are characteristic of
those identifiable tasks.
The FTD overhead base is derived as follows:
•
•
The Maintenance pay costs of the unit are identified.
These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these Products provide the base FTD.
Data Source/s
Download from ASPIRE of the relevant pay costs by Product cumulative to and including Period 12.
See Appendix E for Key Destinations
FTQ
ALL
Core Capital and Current Pay
Description
FTQ is a base that uses previously apportioned core capital and current pay F8 codes, excluding those in
Exceptional Organisational Unit Codes (OUCs); to form system generated overhead bases.
134
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
This method is used to attribute costs that are relevant to all of a unit e.g. coaching and training costs within a
unit and it would be appropriate for them to be apportioned in line with the previously apportioned pay costs of
that unit. This base is also used to apportion balance sheet balances – including Fixed Asset, Work in Progress.
The FTQ overhead base is derived as follows:
•
•
The core current and capital pay costs of the unit are identified.
These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these Products provide the base ‘FTQ’.
Data Source/s
Download from ASPIRE of the relevant pay costs by Product cumulative to and including Period 12.
See Appendix E for Key Destinations
FTQ_PCT
ALL
Core Capital and Current Pay – Previously apportioned
Description
The designator PAY uses all previously apportioned core capital and current pay F8 codes, including those in
Exceptional OUCs, to form system generated overhead bases.
Methodology
This method is used to attribute costs that are relevant to the whole of a unit, including Exceptional OUCs, and
as such it would be appropriate for them to be apportioned in line with all the previously apportioned pay costs.
The PAY base is typically applied to overhead costs related to the activity of the whole unit such as Newstart
Leaver Payments, General Management pay, general travel and subsistence and stationery costs.
135
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The PAY overhead base is derived as follows :
•
•
The core current and capital pay costs of the unit (including those in Exceptional OUCs) are identified
These costs will have been previously apportioned in the Accounting Separation (AS) system using
methodologies relevant to the particular activities. Previous apportionments will have exhausted these pay
costs to cost centres. The percentage weights applied to these products provide the base ‘PAY’.
“PAY”, the Data Designator 1, specifies the pay transactions (range of F8 codes) from which the base is derived
i.e. pay codes. This data is held within the Aspire system.
“PCT” the Data Designator 2, specifies the AS Cost Centres to which the cost should be apportioned. This type of
base can be used where the engineering Travel and Subsistence of certain OUCs has to be apportioned over a
limited range of Plant Groups (PGs) using a pay base specific to the PGs supported by those units.
Data Source/s
Download from ASPIRE of the relevant pay costs by Product cumulative to and including Period 12.
See Appendix E for Key Destinations
FUEL
Y
External Payment for Vehicle Fuel
Description
This base apportions BT External Payment for Vehicle Fuel.
Methodology
The cost of Motor Transport (MT) vehicle fuel is recovered from the Lines of Business (LoBs) via the transfer
charges to the Organisational Unit Codes (OUCs)/Organisational Units based on the utilisation of the services
provided to the OUC.
The transfer charges are used to provide an analysis of the fuel in the different parts of BT. The analysis of the
transfer charge amounts are used to calculate an overall base that is then applied to the underlying actual costs,
which are attributed pro-rata to the transfer charge.
Data Source/s
Internal transfer charges for fuel on the BT general ledger cumulative to and including Period 12.
See Appendix E for Key Destinations
136
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
NCOLF
OUC
ALL
Non
Core
OUCs
Description
Liquid Fund Transactions
Description
This base apportions all liquid fund transactions which are defined as Net Short Term Interest Payable, including
Interest Receivable, Profit and Loss (P&L) Cash, Short Term Investments (both internal and third party), and Short
Term Borrowings on the Balance Sheet. This base apportions mainly to an Intermediate Activity Group AG113
(Total Liquid Funds and Interest) for onward allocation to Retail Residual activity, however there is a small
element relating to CNS which is reported separately in the CNS products within the non SMP markets. In the
prior year there were no liquid funds transactions associated with CNS hence last year’s DAM reported 100% to
AG113.
Methodology
All liquid funds (e.g. cash, short-term borrowings and short-term investments) are attributable to the Retail
Residual activity. To allow visibility of such transactions in the Residual Business, the monies are collected against
AG113 (Total Liquid Funds and Interest), which then exhausts wholly to the Corporate HQ Product (P646) in the
Residual activity. There are four specific GFR lines which determine whether an activity is Liquid Funds:
•
•
•
•
GFR 160
GFR 231
GFR 232
GFR 250
Net Interest Payable.
Short-Term Investments.
Cash.
Short-Term Borrowings.
These sectors are 100% apportioned to AG113 (Total Liquid Funds and Interest), except if they relate to CNS, in
which case they are apportioned to CNS specific non SMP products.
Data Source/s
These are allocated directly, no data source/s required.
See Appendix E for Key Destinations
NCOTH1
G106,
J1745
BT Global Services Restructuring - Specific Items
Description
BT separately identifies and discloses any significant one-off or unusual items (termed “specific items”). This is
consistent with the way that financial performance is measured by management and we believe assists in
providing a meaningful analysis of the trading results of the group.
These costs represent the specific leaver costs and other specific staff costs as reported by BT Global Services at
period 9 2009/10.
Methodology
BT Global Services has incurred restructuring costs during 2009/10. These costs have been reported in the BT
Statutory Accounts as specific items and are treated as an overhead on the Line of Business.
Data Source/s
ASPIRE Period 12 pay report.
See Appendix E for Key Destinations
NCOVATD
G106
BT Group – Output VAT Related Creditors
Description
This base apportions the Output VAT related creditors arising from the VAT collected by BT’s corporate unit
forwarding on to the Customs and Excise department.
Methodology
This base is prepared using revenue generated by BT UK sourced from:
•
•
•
•
•
•
•
•
Apparatus sales.
Connection charges.
Other single payments.
Rentals.
Enhanced maintenance.
Calls gross.
Calls discount.
Revenue from Other Communication Providers (OCPs).
137
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
These different classifications of revenue equate to specific sectors (groups of General Ledger codes with similar
functional categories) within the ASPIRE system.
Data Source/s
This base apportions using the analysis produced for the core VAT Creditors base - DTTCY. All core revenues are
taken but Revenue from Other Communication Providers is excluded from the final allocation.
See Appendix E for Key Destinations
NCSCSH
ALL
SAU
OUCs
BT Self Accounting Units
Description
This base apportions the cash at bank of BT Self Accounting Units.
Methodology
This base apportions 100% direct to an Intermediate Activity Group (AG113) for onward allocation to the
Residual activity. All liquid funds (e.g. cash, short-term borrowings and short-term investments) are attributable
to the Residual activity. To allow visibility of such transactions in the Residual activity, the monies are collected
against AG113, which then exhausts wholly to the Residual activity.
This base was applied to the following OUCs.
•
•
•
•
J815 Broadcast Services
J541 Syntegra
J503 Global Solutions
M520 BT Conferencing.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Key Destinations
NCSINT
NCSINV
NSLPAY
ALL
SAU
OUCs
See section 3.4.4 - Licence Consolidation Return (LCR) for treatment of base references beginning NCS.
See Appendix E for Key Destinations
ALL
SAU
OUCs
See Appendix E for Key Destinations
MX
NewStart Leaver Payments
See section 3.4.4 - Licence Consolidation Return (LCR) for treatment of base references beginning NCS.
Description
This base apportions Profit and Loss (non-ETG Current Pay) costs associated with NewStart Leavers payments.
New Start is a programme by which BT seeks to manage its people assets including work/life balance, flexibility
etc. However, when employees leave the company through redundancy or resignation, any payments to the
leaving employee are booked against this activity.
Methodology
New Start Leaver payments are based primarily on the pay of the recipient. A low level cost breakdown of the
Retail units involved is supplied by BT Group Finance.
The relevant pay bases are then applied at the low level to provide the overall base i.e. a sub Organisational Unit
Code (OUC) analysis of costs apportioned using sub OUC Pay bases.
Data Source/s
ASIRE Period 6 pays data.
See Appendix E for Key Destinations
OPEACNALL
ALL
Core
OUCs
Accommodation Charges – Creditors and/or Debtors
Description
This base apportions creditors/debtors arising from accommodation charges, such as balances on
accommodation costs (external rent receivables, prepaid accommodation expenditure and provisions for
dilapidations and major repairs).
138
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time accommodation charges are updated. Each base has two separate markers that
govern:
•
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEACN).
The AS Cost Centres to which the balances should be apportioned (Data Designator 2, i.e. ALL).
‘OPEACN’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. accommodation costs incurred by BT during the year. This data is held within the ASPIRE system by
AS Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS Cost Centres to which these debtors/creditors associated with
accommodation should be apportioned.
The OPEACN apportionment base is adapted to exclude apportionments to AS Cost Centres not listed in the ‘ALL’
group of AS Cost Centres. The remaining data is then rebased to 100% and this base is applied to the
accommodation debtors and creditors.
‘ALL’ refers to BT Group Cost Centres.
Data Source/s
The data is system generated from ASPIRE.
See Appendix E for Key Destinations
OPECSTALL
ALL
Core
OUCs
BT Purchases
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed
from Customs and Excise arises from BT purchases.
139
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
•
The income/cost transactions the system should draw upon to provide the appropriate base (Data
Designator 1, i.e. OPECST)
The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. ALL).
Diagram: BT Purchases Apportion Process
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within
the system by AS (Accounting Separation) Cost Centre.
‘ALL’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which these VAT input
creditors should be apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the ‘ALL’ group of AS (Accounting Separation) Cost Centres. The remaining data is then
rebased to 100% and this base is applied to the VAT Input Creditors.
‘ALL’ refers to BT Group Cost Centres.
Data Source/s
ASPIRE generated data cumulative to Period 12.
See Appendix E for Key Destinations
OPECSTPCT
B, D, J, BT Purchases
K and M
Description
This base apportions the input VAT related creditors based on the assumption that the amount to be claimed
from Customs and Excise arises from BT purchases.
140
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
•
The income/cost transactions the system should draw upon to provide the appropriate base (Data
Designator 1, i.e. OPECST)
The Accounting Separation (AS) cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: BT Purchases Apportion Process
‘OPECST’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived i.e. external operating costs, excluding pay, depreciation and capital additions. This data is held within
the system by AS (Accounting Separation) Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which these VAT input
creditors should be apportioned.
The OPECST apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the ‘ALL’ group of AS (Accounting Separation) Cost Centres. The remaining data is then
rebased to 100% and this base is applied to the VAT Input Creditors.
‘PCT’ refers to BT Group Cost Centres.
Data Source/s
ASPIRE generated data cumulative to Period 12.
See Appendix E for Key Destinations
141
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEOTHCOR
OUC
ALL
Core
OUCs
Except
B's
Description
Wayleaves Buy Outs Debtors and Accrued Creditors
Description
This base is used to apportion Wayleaves Buy Outs debtors and accrued creditors. Wayleaves refers to the
arrangement in place when another company utilises BT land or plant/equipment (e.g. telegraph poles) to
provide service to a third party.
Methodology
•
•
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage
approach, thus is recalculated each time operating costs are updated. Each base has two separate markers
that govern: the cost transactions the system should draw upon to derive the appropriate base (Data
Designator 1, i.e. OPEOTH).
the AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR)
Diagram: Normal Trading Activity Apportion Processs
‘OPEOTH’, the Data Designator 1, specifies the cost transactions (range of f8 codes) from which the base is
derived, i.e. total operating costs, excluding depreciation and pay costs incurred by BT during the year. This data
is held within the system by AS (Accounting Separation) Cost Centre.
‘COR’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which Wayleaves Buy Outs
debtors and accrued creditors should be apportioned.
The’ OPEOTH’ apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the ‘COR’ group of AS (Accounting Separation) Cost Centres. The remaining data is rebased
to 100% and this base is applied to the Wayleaves Buy Outs debtors and accrued creditors balances.
‘COR’ refers to BT Core Business Cost Centres.
Data Source/s
ASPIRE.
See Appendix E for Key Destinations
142
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEOTHPCT
OUC
K, M
Description
Expenditure Related Prepayments – Normal Trading Activity
Description
This base apportions the expenditure related prepayments arising from normal trading activity.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
•
The income / cost transactions the system should draw upon to provide the appropriate base (Data
Designator 1, i.e. OPEOTH).
The AS (Accounting Separation) cost centres to which the balances should be apportioned (Data Designator
2, i.e. PCT).
Diagram: Expenditure Related Prepayments Process.
‘OPEOTH’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. the total operating costs, excluding depreciation and pay costs by AS (Accounting Separation) Cost
Centre.
‘PCT’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the non-pay
expenditure debtors and accrued debtors arising from normal trading activity balances should be apportioned.
The OPEOTH apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the BSC group of AS (Accounting Separation) Cost Centres. The remaining data is rebased to
100% and this base is applied to the non-pay expenditure debtors and accrued debtors arising from normal
trading activity balances.
‘PCT’ refers to all AS (Accounting Separation) Cost Centres, which incurred costs, specifically excluding those with
negative costs.
Data Source/s
ASPIRE system generated data cumulative to Period 12.
See Appendix E for Key Destinations
143
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEPSTALA
OUC
ALL
Core
OUCs
Except
B's
Description
Miscellaneous Creditors
Description
This base apportions the miscellaneous creditors arising from current expenditure.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator 1,
i.e. OPEPST).
the AS (Accounting System) Cost Centres to which the balances should be apportioned (Data Designator 2, i.e.
ALA)
‘OPEPST’ The Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is derived
i.e. all operating costs excluding Payments to Overseas Administrations and Other Communication Providers
(OCPs), incurred by BT during the year. This data is held within the system by AS (Accounting Separation) Cost
Centre.
‘ALA’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the miscellaneous
creditors balance should be apportioned.
The ‘OPEPST’ apportionment base is adapted to exclude data that apportions to any AS (Accounting Separation)
Cost Centres not listed in the ‘ALA’ group of Cost Centres. The remaining data is rebased to 100% and this base is
applied to the miscellaneous creditors balance.
‘ALA’ refers to all AS (Accounting Separation) Cost Centres, which incurred costs, specifically excluding those
with negative costs.
Data Source/s
ASPIRE generated data cumulative to Period 12.
See Appendix E for Key Destinations
144
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEPSTPCT
OUC
ALL
Core
OUCs
except
B
Description
Miscellaneous Creditors
Description
This base apportions the miscellaneous creditors arising from current expenditure.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator 1,
i.e. OPEPST).
the AS (Accounting System) Cost Centres to which the balances should be apportioned (Data Designator 2, i.e.
PCT)
‘OPEPST’ The Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is derived
i.e. all operating costs excluding Payments to Overseas Administrations and Other Communication Providers
(OCPs), incurred by BT during the year. This data is held within the system by AS (Accounting Separation) Cost
Centre.
‘ALA’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the miscellaneous
creditors balance should be apportioned.
The ‘OPEPST’ apportionment base is adapted to exclude data that apportions to any AS (Accounting Separation)
Cost Centres not listed in the ‘ALA’ group of Cost Centres. The remaining data is rebased to 100% and this base is
applied to the miscellaneous creditors balance.
‘ALA’ refers to all AS (Accounting Separation) Cost Centres, which incurred costs, specifically excluding those
with negative costs.
Data Source/s
ASPIRE generated data cumulative to Period 12.
See Appendix E for Key Destinations
145
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEXPSCOR
OUC
ALL
Core
OUCs
Description
Account Payable Activities – Prepayments
Description
This base apportions the debtors for prepayments arising from Accounts Payable activities.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
the income/cost transactions the system should draw upon to derive the appropriate base (Data Designator 1, i.e.
OPEXPS)
the AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator 2,
i.e. COR)
Data Source/s
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS (Accounting Separation) Cost Centre.
‘COR’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the debtors for
prepayments balance should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the ‘COR’ group of AS (Accounting Separation) Cost Centres. The remaining data is rebased
to 100% and this base is applied to the debtors for prepayments balance.
‘COR’ refers to BT Core Business Cost Centres.
See Appendix E for Key Destinations
146
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEXPSPCR
OUC
K
Description
Account Payable Activities – Prepayments
Description
This base apportions the debtors for prepayments arising from Accounts Payable activities relating to Wholesale
Line of Business.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
•
•
the income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. OPEXPS).
the AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PCR).
Data Source/s
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS (Accounting Separation) Cost Centre.
‘PCR’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the debtors for
prepayments balance should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the ‘COR’ group of AS (Accounting Separation) Cost Centres. The remaining data is rebased
to 100% and this base is applied to the debtors for prepayments balance.
‘PCR’ refers to BT Core Business Cost Centres.
See Appendix E for Key Destinations
147
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OPEXPSPCT
OUC
BC
Description
Account Payable Activities – Prepayments
Description
This base apportions the debtors for prepayments arising from Accounts Payable activities for Openreach Line of
Business
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time operating costs are updated. Each base has two separate markers that govern:
the income/cost transactions the system should draw upon to derive the appropriate base (Data Designator 1, i.e.
OPEXPS)
the AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator 2,
i.e. PCT)
Data Source/s
‘OPEXPS’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all operating costs, excluding depreciation, incurred by BT during the year. This data is held within
the system by AS (Accounting Separation) Cost Centre.
‘PCT’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the debtors for
prepayments balance should be apportioned.
The ‘OPEXPS’ apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the ‘COR’ group of AS (Accounting Separation) Cost Centres. The remaining data is rebased
to 100% and this base is applied to the debtors for prepayments balance.
‘PCT’ refers to BT Core Business Cost Centres
See Appendix E for Key Destinations
148
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
PDTATM
OUC
ALL
Description
Provision, rearrangement and recovery of Asynchronous Transfer Mode (ATM) equipment
Description
This base attributes capital expenditure for provision, rearrangement and recovery work of ATM (Asynchronous
Transfer Mode) equipment in the core Transmission network done by the Broadband and Data division within BT
Wholesale. F8 Codes 440234, 450234, 410231, 41W081, 4D0235, 4DW085, 410234, 41W084, 4D0235 and
4DW085 contain costs for Depreciation, Pay, Capital Expenditure, contracts and indirects. These costs feed into
the Class of Work (CoW) ATM.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, Broadband
(Multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Frame Stream allocation is identified by using the LoP (Life of Plant) list Asset Policy Code ATMR depreciation cost
as a percentage of the total ATM depreciation. The remaining percentage is allocated to the ATM Plant Groups
(PGs) using the NEI (Network Element Inventory) and AIM (Analysis and Inventory Module) reports.
The NEI and AIM databases provide yearly and half yearly downloads of volumes of ports in the ATM network.
The volume data is converted into equivalent card volumes which are then weighted by latest prices from the
Alcatel price catalogue to take into consideration the different cost profiles of each card.
The NEI report provides data on each port as to whether it is customer or network interfacing by using a unique
identifier:
•
•
UNI (customer).
NNI (network).
From this information the split to customer interface PGs and the network interface PG can be derived.
The cards that support the Customer interface functionality are identified by bandwidth and are therefore
allocated to the appropriate bandwidth specific customer interface PGs.
The cards recorded in the AIM report primarily support the Network switching function and therefore are used to
derive the allocation to PG656A (ATM Network Switching) on the same basis as the above. However, the HIGH
BW cards which are recorded in the AIM report do not support the network switching function and are therefore
allocated to the customer and network interface PGs using the UNI and NNI split as a proxy.
The data required for the year end base production will use September volumes/data for the NEI, AIM and LoP
(Life of Plant) list reports. For the interims, March volumes and data will be used to maintain consistency with the
Core Transmission base allocations. Spare capacity is spread over the existing PGs for the interface cards as these
could be used for either customer or network facing. The split of working customer and network facing cards is
used as a proxy to allocate the spare costs to the relevant PGs.
Data Source/s
Volumes of cards/ports come from the NEI (Network Element Inventory) and AIM (Analysis and Inventory
Module) supplied from the Element Manager database via Peter Pickett (Interims – March, Year end –
September).
Card prices are supplied by BT Wholesale.
LoP List.
See Appendix E for Key Destinations
PDTBHQ
A
Inland Sub Sea Cable Assets
Description
This base apportions the asset Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and annual depreciation charge for Class of Work (CoW) BHQ, which represents Inland
Sub Sea cable assets, to the Wholesale Inner Core Fibre Plant Group (PG).
Methodology
Allocates 30% to PG350N Wholesale Inner Core Fibre based on split from the Fixed Asset Register (LoP List).
Data Source/s
Fixed Asset Register (LoP List).
See Appendix E for Key Destinations
149
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
PDTBHQ
OUC
ALL B
OUCs
Description
Inland Sub Sea Cable Assets
Description
This base apportions the asset Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and annual depreciation charge for Class of Work (CoW) BHQ, which represents Inland
Sub Sea cable assets, to the Openreach Backhaul Fibre Plant Group (PG).
Methodology
Allocates 70% to PG170B Openreach Backhaul Fibre based on split from the Fixed Asset Register (LoP List).
Data Source/s
Fixed Asset Register (LoP List).
See Appendix E for Key Destinations
PDTCCI
ALL
OUCs
Common Capabilities
Description
The base apportions Profit and Loss (P&L) (Depreciation) and Balance sheet costs identified with Common
Capability assets, which include Intelligent Service Layer (CISL) and Call Messaging assets.
CISL is a system which replaces BT's legacy Network Intelligence Platform which provides many of BT's 0800,
0845, 0870 and premium rate number translation services. Call messaging assets support Callminder /1571.
Other CCI assets support a variety of applications.
Methodology
During the year depreciation costs for Callminder and CISL are derived from the Life of Plant (LoP) List using asset
policy code (APC) CIIR for CISL (PG276A) and APC CIMS for Callminder (P287). The percentages allocated to these
entities form the basis of the PDTCCI base. Any remaining percentages follow the COMP Base for BT Operate
supplied by Group Network Cost Analysis team.
Where the COMP base allocates for PG276A and P287 these percentages will point to the existing PG276A and
P287 entities (see diagram below).
Data Source/s
Life of Plant List (LoP List) – extracted from the fixed asset register.
COMP base for BT Operate supplied by Group Network Cost Analysis team.
See Appendix E for Key Destinations
PDTCJC
A
Costs of Construction Junction Cable
Description
This base apportions the net book value (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and depreciation charge costs of Metallic cables Class of Work (CoW) Cable Joint
Chamber (CJC)) in the core transmission network to the core fibre Plant Group (PG).
150
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
Allocates 30% to PG350N Wholesale Inner Core Fibre based on split from the Fixed Asset Register (LoP List).
Data Source/s
Fixed Asset Register (LoP List).
See Appendix E for Key Destinations
PDTCJC
ALL B
OUCs,
MJ
Costs of Construction Junction Cable
Description
This base drives the Net Book Value (NBV) (NBV = Gross Book Value – Accumulated Depreciation + Assets in
Course of Construction) and depreciation charge costs of metallic cables Class of Work (CoW) Cable Joint Chamber
(CJC)) in the core transmission network to the Openreach Backhaul Fibre Plant Group (PG).
Methodology
Allocates 70% to PG170B Openreach Backhaul Fibre based on split from the Fixed Asset Register (LoP List).
Data Source/s
Fixed Asset Register (LoP List).
See Appendix E for Key Destinations
PDTCJF
ALL
Construction Junction Cable – Optical Fibre Assets
Description
This base drives the asset net book value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course
of Construction) and depreciation charge costs for Class of Work (CoW) CJF, which represents Construction
Junction Cable – Core Optical Fibre assets, to the Inner Core Fibre Plant Group (PG).
Methodology
Allocated 100% based on Organisational Unit Code (OuC).
Cost of cable booked/allocated to an Openreach OuC under the CJF Class of Work (CoW) will go 100% to PG170B
Openreach Backhaul Fibre.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Key Destinations
PDTCORES
ALL
Residential Drop Maintenance
Description
This base apportions the Profit and Loss (P&L) Current Non-ETG Pay, Stores etc cost of maintenance performed
on the copper cable that connects residential customer’s premises to the access section of the network. This part
of the network is known as the ‘final drop’. The engineers book this maintenance work specifically to residential
maintenance.
The costs include both re-active and pro-active maintenance performed.
The plant groups that these costs are apportioned to are as follows:
•
•
PG122M (Residential PSTN Maintenance).
PG123M (ISDN Highway Maintenance).
Methodology
The apportionment split is derived from the relative proportion of residential connections between PSTN and
ISDN Highway lines. This connection information is obtained from the Powerhouse system (refer to the data
source section). As this maintenance work is specifically booked to residential customer premises maintenance,
the residential element of PG123M can be identified.
Data Source/s
Powerhouse Period 9. Management believes that this period is reflective of the full year.
See Appendix E for Key Destinations
151
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
PDTCORLU ALL
Description
Core Nodes - Lucent
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Core node equipment to Plant Groups
(PGs).
Core nodes are the high capacity, large scale routers providing cost efficient connections between Metro Nodes.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Lucent is one of these suppliers.
Methodology
The Core-Node contains functionality for the transport of connectivity, voice and broadband services, via routers.
The latest 21CN business case model is analyzed into the categories, for which we have assigned PGs, for the
assets the Core node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTCPDMI ALL
Wholesale Line of Business of work on ISDN30 connections
Description
This apportionment base is used to remap ISDN30 connection (Class of Work (CoW) CPDI), Megastream
connections ((CoW) CPDM) and Analogue connections ((CoW) PSAA). The costs include Non-ETG Pay and stores.
Methodology
Costs for all three CoWs are apportioned to PG114L (ISDN30 Connections), PG413P (Private Circuit Megastream
Connections) and PG421S (Private Circuit Analogue Installation) based on an analysis of the volumes and relative
price of each of the Products at Period 9.
Data Source
Powerhouse volumes as at Period 9 and prices from the Carrier Price List.
See Appendix E for Key Destinations
PDTCRDA
ALL
Capital Plesiochronous Digital Hierarchy (PDH) Costs
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for Class of Work (CoW) CRD, which represents PDH (Plesiochronous
Digital Hierarchy) Electronic assets, to related Plant Groups (PGs) which represent bearers in the core network.
These assets relate to the older transmission network assets which have largely been supplemented by the more
modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
A bearer link consists of electronics such as line systems and termination equipment The cost of a bearer includes
an apportionment of the costs of these electronic assets.
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
SDH is a standard technology for synchronous data transmission on optical media.
Methodology
Most PDH electronics are specific to bearer types, and are dependant upon the capacity the of bearer- 2mb, 8mb,
34mb, 140mb and 565mb. Individual PGs capture the cost of each bearer type separately.
Direct depreciation costs for PDH electronics, for period 6, sourced from the Life of Plant (LoP) list, are driven
directly to the relevant bearers’ types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
152
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed
into PG on the basis of the direct allocations.
Data Source/s
Life of Plant (LoP) list for Period 6. Management believes this Period to be reflective of the full year.
See Appendix E for Key Destinations
PDTCRFA
ALL
Capital PDH (Plesiochronous Digital Hierarchy)Costs
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for Class of Work (CoW) CRF, which represents PDH (Plesiochronous
Digital Hierarchy) Electronic assets such as optical fibre repeaters to related Plant Groups which represent bearers
in the core network. These assets relate to the older transmission network assets which have largely been
supplemented by the more modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
A bearer consists of electronics such as line systems and termination equipment. The cost of a bearer includes an
apportionment of the costs of these electronic assets.
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
SDH is a standard technology for synchronous data transmission on optical media.
Methodology
Most PDH electronics are specific to bearer types, and are dependant upon the capacity of the bearer- 2mb, 8mb,
34mb, 140mb and 565mb. Individual Plant Groups (PGs) capture the cost of each bearer type separately.
Direct depreciation costs for PDH electronics at Period 6, sourced from the Life of Plant (LoP) list, are driven to
the relevant bearer types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed
into PGs on the basis of the direct allocations.
Data Source/s
Life of Plant (LoP) list for Period 6. Management believes this Period to be reflective of the full year.
See Appendix E for Key Destinations
PDTCRHQC ALL
Capital PDH (Plesiochronous Digital Hierarchy) Costs
Description
This base drives the asset value and costs for Class of Work (CoW) CRHQ, which represents Plesiochronous Digital
Hierarchy (PDH) Electronic assets such as optical fibre repeaters to related Plant Groups (PGs) which represent
bearers in the core network. These assets relate to the older transmission network assets which have largely been
supplemented by the more modern and fault tolerant Synchronous Digital Hierarchy (SDH) assets.
A bearer consists of electronics such as line systems and termination equipment. The cost of a bearer includes an
apportionment of the costs of these electronic assets.
PDH is a technology used in telecommunications networks to transport large quantities of data over digital
transport equipment such as fibre optic and microwave radio systems.
SDH is a standard technology for synchronous data transmission on optical media.
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Description
Methodology
Most PDH electronics are specific to bearer types, and are dependant upon the capacity of the bearer- 2Mb,
8Mb, 34Mb, 140Mb and 565Mb. Individual PGs capture the cost of each bearer type separately.
Direct depreciation costs for PDH electronics at Period 6, sourced from the Life of Plant (LoP) list, are driven to
the relevant bearer types. Period 6 is used as it is representative of the full year.
The LoP list breaks down each CoW into subcategories - asset policy codes, providing further granularity of the
equipment types within the CoW. The description of the asset policy codes allows costs to be mapped to bearer
types.
Traffic grooming equipment, in the form of multiplexers are captured across a number of asset policy codes,
depending on the capacity of the equipment - 2/8mux, 2/34mux, 8/34mux, 34/140mux, 140/565mux. All
multiplexer depreciation is mapped onto PG PG399T (traffic grooming), for onward apportionment to
component.
Indirect costs (software, planning and test equipment asset codes) are treated as overheads and are absorbed
into PGs on the basis of the direct allocations.
Data Source/s
Life of Plant (LoP) list for Period 6. Management believes this period to be reflective of the full year.
See Appendix E for Key Destinations
PDTDMC
ALL
Operator Call Handling Centres (OCHC) – Directory Enquiry Activities
Description
This base apportions Profit and Loss (P/L) Capital spend and Balance Sheet costs relating to Operator Call
Handling Centres (OCHC) engaged primarily in Directory Enquiry (DQ) activities. Costs relate to the provision and
recovery of operating access (e.g. queuing equipment) and test equipment rented to new operator systems (e.g.
Operator Service System (OSS), Digital Access Signalling System (DASS)) including.
•
•
Supply and installation of Remote Integrated Services Line Units and Interface Cabinets to connect Directory
Assistance Centres (DAC) to the switch, bureau Primary Multiplexer (PMUX).
Provision and upgrade of Automatic Voice Response, DAC and Operator Keyboard Display Terminal
equipment controlled by Operator Services beyond the interface cabinet and PMUXs in the Enterprise
Information System (EIS) and DAC.
Extension and modification of Derived Services Network (DSN) switches to facilitate
•
•
Automatic Call Distribution for DAC.
Directory assistance console.
From the F8 Code level, costs flow into the Class of Work (CoW) DMC.
Methodology
Value of costs to be apportioned are calculated using volume data (call minutes) and capital cost information
obtained from the Fixed Asset Register as at Q3 FY2004/05 (updated monthly).
Capital costs are attributed by asset (i.e. equipment) as listed by Asset Policy Codes in the Fixed Asset Register.
Each asset element is assigned to one of the Plant Group (PG) or Product destinations according to the type/
function of the asset:
•
•
•
•
•
P490 (BT DQ118 Service Provider)
P494 (Wholesale Agency Directory Enquiries (DQ))
PG216C (Local exchange general switchboard)
PG405A (DMS100 Call centre switches)
PG924A (Directory Enquiries (DQ), non-chargeable)
Also used is the Operfile, this is a spreadsheet used to derive apportionment information for Operator and
Directory Assistance costs. The file is a summary of information from a variety of other data sources and is
updated monthly on a cumulative basis.
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Description
Diagram:
Data Source/s
Inland and International Directory Assistance
Central Data Store (CDS), Call Statistics Centralisation System (CSCS) and Featurenet (part of the Powerhouse
system).
See Appendix E for Key Destinations
PDTDTTK
ALL
Kilostream Assets and Depreciation
Description
This base apportions the gross book value of Kilostream equipment assets and the associated depreciation and
accumulated depreciation charges to Plant Groups (PGs).
Kilostream is the brand name for BT’s portfolio of low speed digital private circuits. The circuits operate at
bandwidths of 2.4 K/bits up to 64 K/bits and are provided using BT’s Digital Private Circuit Network (DPCN).
Kilostreams are available nationally, and generally BT will provide the whole leased line from end to end.
Kilostream is designed primarily for data and image transmission, although it can carry speech by using a suitable
encoding technique or mulitplexor.
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Description
This process is summarised in the diagram below:
Data Source/s
Life of Plant (LoP) List for Period 11. Management believe this period is reflective of the full year.
See Appendix E for Key Destinations
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Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
PDTDTTM
OUC
ALL
Description
Megastream
Description
Megastream is a 2M/Bit (2,048 K/Bit) high speed, permanently connected, point to point private circuit.
Megastream has the ability to carry multiple applications and the construction of voice and data backbone
networks makes it suitable for running a range of business operations. Linking mainframes to LANs (Local Area
Networks), linking two or more PBXs (Private Branch Exchanges) to form a network, running reservation systems
and telephone banking are just some of the applications that Megastream is suitable for.
Megastream is a Product offered at different bandwidths (i.e. 1Mbit/s to 622Mbit/s). Apportionment is made to
various Megastream bandwidths, Kilostream and ISDN30 Plant Groups (PGs) due to the fact that these Products
can be carried over higher bandwidth bearers (e.g. 2Mbit/s, 34Mbit/s, etc.)
Methodology
This base apportions the gross book value of Megastream equipment assets and the associated depreciation and
accumulated depreciation charges to PGs. These Megastream assets are the electronic elements of the bearer.
Apportionment of the Megastream equipment amounts is based on the following methodology.
Step 1 – Calculate apportionment percentages for each bearer capacity size in BT’s network.
Information on the number of each size of bearer is obtained from the Core Transmission Costing System (CTCS)
and Local London Fibre Network (LLFN). The total number of bearers under each capacity size (i.e. 2M/Bit, 8M/
Bit, 34M/Bit, 140M/Bit, 565M/Bit, ASDH (Access Synchronous Digital Hierarchy) 4*2, ASDH (Access
Synchronous Digital Hierarchy) 16*2) is then multiplied by Current Cost values for each size of bearer. Using the
total Current Cost values for each of the bearer capacity sizes, proportions can be developed.
The table below illustrates how this step works:
Step 2 – Calculate proportions for specific circuit volumes.
Next it is necessary to calculate which percentage of these bearers needs to be pointed to the Kilostream PG412C.
To do this, volumes of 64k circuits (grouped in 2Mbit/s on CTCS) and other bandwidth circuits are obtained from
CTCS.
Circuits of more than 2Mbit/s (E2-E4) are weighted based on the number of 2M circuits each bearer can carry to
give 2Mbit/s equivalents. This is illustrated below:
Note: Circuits can travel over bearers of equal or greater bandwidth capacity, that is to say, a 2M/Bit circuit can
travel over all bearers whereas a 34M/Bit circuit can only travel over a 34M/Bit bearer or greater. This is the
reason for including higher bandwidths in this analysis, to create an accurate apportionment between these
circuit types.
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Description
Step 3 – Total allocation to Kilostream
The total allocation to Kilostream (PG412C) is then the sum of all 64Kbit LE percentage in the bottom row of the
table above. The remaining apportionments to other PGs is equal to the allocation calculated in step 1 less the
calculated 64Kbit percentage for the given bearer type in step 2.
Step 4 – Create the apportionment split for 2M/Bit Local End between copper and fibre.
The total apportionment to 2Mbit/s bearers is equal to the sum of the allocations to P2 and P8 bearers less the
Kilostream percentage for these bearers.
From the Life of Plant (LOP) list, information is obtained for the DTTM Megastream Class of Work (CoW). This lists
the depreciation charges by asset policy code for each different type of asset for this CoW. The LoP list sources its
data from the fixed asset register. By reviewing the asset policy codes and identifying 2Mbit/s equipment, the
depreciation for this equipment is able to be split between copper and fibre.
This split is applied to the apportionment calculated in for 2Mbit/s Local End equipment.
This creates apportionment percentages for:
•
•
2Mbit/s Copper.
2Mbit/s Fibre.
This is illustrated in the diagram below:
Step 5 – Apportion Megastream equipment amounts to PGs.
Using the apportionment percentages calculated in the previous steps, apportion the Megastream equipment
amounts to PGs.
Diagram: Megastream equipment apportioned to PGs process.
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Description
Data Source/s
London Local Fibre Network (LLFN).
Core Transmission Costing System (CTCS).
Life of Plant (LoP) List at Period 11. Management believe this to be reflective of the full year.
See Appendix E for Key Destinations
PDTDUCT
A
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG149. The amounts, which are
apportioned, are the Balance Sheet items (i.e. gross book value and accumulated depreciation etc) and Profit and
Loss (P&L) items (i.e. depreciation etc) for duct.
This asset covers all duct (core access and shared) within the BT network.
Methodology
Allocated 100% to AG149.
Data Source/s
There are no Data Source requirements for this base since all costs are allocated directly to AG149.
See Appendix E for Key Destinations
PDTDUCT
BB, BC,
BE, BY,
MJ
Duct
Description
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG148 (Backhaul Duct) and AG135
(Access Duct). The amounts, which are apportioned, are the Balance Sheet items (i.e. gross book value and
accumulated depreciation etc) and Profit and Loss (P&L) items (i.e. depreciation) for Duct.
This asset covers all Duct (core access and shared) within the BT network.
Duct is the buried tube containing network cables.
Methodology
Apportionment to Core and Access AGs is done based upon data from the 1996 Absolute Duct Study (ADS). The
ADS was a point in time study of the duct within the network using a sample of 384 of the 5,586 exchange areas.
From this survey, the proportion of duct that is solely used\shared between access and core transmission was
determined. This proportion is then used to apportion the 1996/97 index uplifted Gross Replacement Cost (GRC),
and to this the indexed capital spend, from 1996/97 to the current year, is added for access and Backhaul/Inner
Core Duct. The apportionment is then determined based upon the ratio of (1996/7 Access Gross Replacement
Cost (GRC) plus Access duct capital spend) and (1996/7 Core Gross Replacement Cost (GRC) plus Core capital Duct
spend).
Data Source/s
1996 Absolute Duct Study (ADS).
Central Information Database (CID).
See Appendix E for Key Destinations
PDTDUCT
D
Duct
Description
Duct is the buried tube containing network cables.
This base creates a direct allocation to the Intermediate Activity Groups (AGs) AG149. The amounts, which are
apportioned, are the Balance Sheet items (i.e. Fixed Assets AICC Registration Duct) for duct.
This asset covers all duct (core access and shared) within the BT network.
Methodology
Allocated 100% to AG149.
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Description
Data Source/s
There are no Data Source requirements for this base since all costs are allocated directly to AG149.
See Appendix E for Key Destinations
PDTETHER
A, D
Core Nodes – Lucent
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Ether switches to Plant Groups (PGs).
The Ether Switch is part of the 21c network and contains functionality for the access and onward switching of
Ethernet customers as well as NGA (Next Generation Access) for voice and broadband services.
Methodology
Costs are allocated 100% to the Ethernet Switches Plant Group PG901A.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to PG901A.
See Appendix E for Key Destinations
PDTINCD
ALL
Intelligent Network Architecture Equipment
Description
This base apportions the capital costs of the Intelligent Network (IN) platform. The IN platform consists of several
sub-platforms each of which supports distinct Products.
Methodology
The assets for each IN sub-platform are registered against their own Asset Policy Code on the Fixed Assets
Register, this allows identification of depreciation costs by function and allows the calculation of the relevant split
to corresponding Plant Groups (PGs) This forms the basis of the apportionment base.
The costs for each sub platform are pointed at the relevant Plant Group (PG) as detailed below.
Data Source/s
Fixed Asset Register (LoP List) Intelligent Network data for the latest available period. Management believe this
period to be reflective of the full year.
See Appendix E for Key Destinations
PDTINODE
ALL
I-Node
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for I-Node equipment to Plant Groups (PGs).
I-Node is where the service execution functionality is located – in essence the intelligence that controls services.
In the 21CN context, this includes soft switches, network intelligence and bandwidth management capabilities.
Methodology
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Description
The I-Node contains functionality for both the setting up of Voice Calls and the provision of Calling Features. The
split of cost used is the current ratio of costs for these activities in the System X and AXE10 Digital Local Exchange
PGs as these assets have similar functionality.
Data Source/s
Billing records.
See Appendix E for Key Destinations
PDTIPNC
ALL
IP (Internet Protocol) Networks
Description
This base apportions costs of equipment supporting IP (Internet Protocol) networks. Costs booked to Class of
Work (CoW) IPNC (Internet Protocol Network Capital) include provision, extension, rearrangement and recovery
of IP networks by the Broadband and Data division in BT Wholesale.
Types of costs include Profit and Loss (P&L) Depreciation and Pay and Balance Sheet Gross Book Value and
Accumulated Depreciation.
Internet Protocol Network Capital (IPNC) is the set of communication tools which enables computers to 'talk' to
each other over the Internet. Each computer (known as a host) has at least one address that uniquely identifies it
from all other computers on the Internet. Each piece or 'packet' of information sent over the Internet contains
both the sender's Internet address and the receiver's address. This allows the packets to reach their intended
destination, or, if necessary, to be returned to the sender.
Methodology
According to the type or function of the asset (i.e. equipment), each IP piece of equipment is assigned to one of
the Plant Group (PG) destinations related to IP.
IP data and Broadband capital spend is downloaded from the Fixed Asset Register (FAR) for the previous three
years. The sub programme identifies capital spend associated with each PG. IPNC has a life of three years, the
capital spend for the last three years (from Internal Project Ledger) is then used to derive the deprecation.
The result/apportionments of this methodology have now been frozen as of Period 09 08/09.
Data Source/s
The Internal Project Ledger (IPL) lists depreciation costs by Class of Work (CoW), and produces a list of asset
registrations by year, which can be found in Central Information Data warehouse (CID) Financial Reporting
system. As the timescale required to produce cost allocation bases it is not possible to use Period 12 data as it is
not available at the time required, therefore Period 11 data is used as minimum activity happens in Period 12 to
affect the outcome.
See Appendix E for Key Destinations
PDTIPNCW ALL
IP (Internet Protocol) Networks
Description
This base attributes Profit and Loss (Current Depreciation) and Balance Sheet (Fixed Assets GBV) costs of
equipment supporting IP (Internet Protocol) networks. Costs are booked to Class of Work (CoW) IPNC (Internet
Protocol Network Capital) which includes provision, extension, rearrangement and recovery of IP (Internet
Protocol) networks by the Broadband and Data division in BT Wholesale.
IPNC is the set of communication tools which enables computers to 'talk' to each other over the Internet. Each
computer (known as a host) has at least one address that uniquely identifies it from all other computers on the
Internet. Each piece (or 'packet') of information sent over the Internet contains both the sender's Internet
address and the receiver's address. This allows the packets to reach their intended destination, or, if necessary,
to be returned to the sender.
Methodology
According to the type or function of the asset (i.e. equipment), each IP piece of equipment is assigned to one of
the Plant Group (PG) destinations related to IP.
IP data and Broadband capital spend is downloaded from the Fixed Asset Register (FAR) for the previous three
years. The Sub programme identifies capital spend associated with each PG. IPNC has a life of three years, the
capital spend for the last three years (from Internal Project Ledger) is then used to derive the deprecation, i.e. 3
year old asset have a 100% of capital spend, 2 year old asset have a 66% and 1 year old assets have a 33%
capital spend. The annual depreciation is then calculated together and used to derive the base apportionments.
This method, by default will weight the older assets as higher depreciation is calculated for those years.
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Description
The results/apportionments of this methodology have now been frozen as of Period 09 08/09.
Data Source/s
The Internal Project Ledger (IPL) lists depreciation costs by CoW, and produces a list of asset registrations by year,
which can be found in Central Information Data warehouse (CID) Financial Reporting system. Due to the
timescale required to produce cost allocation bases it is not possible to use Period 12 data as it is not available at
the time required, therefore Period 11 data is used as minimum activity happens in Period 12 to affect the
outcome.
See Appendix E for Key Destinations
PDTLMC
ALL
Exchange Side Cables
Description
This base apportions, to Plant Groups (PGs), all of the balance sheet values (i.e. gross book value, accumulated
depreciation, work in progress/assets in the course of construction etc) and profit and loss values (i.e.
depreciation) associated with exchange side cables.
Exchange side cable (e-side cable) is the cable that links the exchange to the primary cross connection point. This
cable may be part of BT’s own network or may be part of an unbundled local loop (i.e. access connections that BT
leases to other communication providers).
This is illustrated in the diagram below:
Diagram: Exchange Side Cables Process.
The E-side cable balance sheet and profit and loss values are apportioned to the following two Plant Groups
(PGs):
•
•
PG117C E-side Copper Capital.
PG130A Local Loop Unbundling (LLU) Tie Cables.
N.B. LLU Tie cables are the cables from the Main Distribution Frame (MDF) to the Communications Provider’s
(CP’s) own equipment, normally within the exchange.
Methodology
The apportionment between these two PGs is based on the relative sizes of the year to date depreciation at a
period representative of the full year for E-side copper cable and Local Loop Unbundling (LLU) (Class of Work
(CoW) LMC). These figures are taken from the Life of Plant (LoP) listing which details the historical cost
depreciation for the year for different asset classes. The source of the Life of Plant (LoP) list data is the fixed asset
register.
This apportionment is represented in the diagram below:
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Description
If the E-side copper cable F8 codes provided a split between BT network copper cable and local loop unbundled
cable then an apportionment base would not be required as these amounts could be allocated directly to the
relevant PG. However, the split between BT network copper cable and local loop unbundled cable is only
available in the subsidiary schedules such as the Life of Plant (LoP) list. This is why the apportionment
methodology described above is created.
Data Source/s
Life of Plant (LoP) List Period 11. Management believe this to be reflective of the full year.
See Appendix E for Key Destinations
PDTLMDF
ALL
Main Distribution Frames in Local Exchanges
Description
This base apportions (to Plant Groups (PGs)) all of the balance sheet values (i.e. gross book value, accumulated
depreciation and work in progress/assets in the course of construction) and profit and loss values (i.e.
depreciation) associated with main distribution frames in local exchanges.
Main distribution frames are the interface between the exchange side cables and the exchange switching
equipment. Exchange side cable is the cable that links the exchange to the primary cross connection point. This
cable may be part of BT’s own network or may be part of an unbundled local loop (i.e. access connections that BT
leases to other communication providers).
This is illustrated in the diagram below:
Methodology
The main distribution frame balance sheet and profit and loss values are apportioned to the following two PGs:
•
•
PG217C Local Exchange General Frames Capital
PG130A Local Loop Unbundling Tie Cables
The reason why the main distribution frame values are apportioned to these PGs is that they support the activities
of the E-side copper cable. Therefore the apportionment between these two PGs can be based on the relative
sizes of the year to date depreciation of MDF assets at Period 11 for both E-side copper cable and local loop
unbundling frame usage. These figures are taken from the Life of Plant (LoP) listing which details the historical
cost depreciation for the year for different asset classes. The source of the Life of Plant (LoP) list data is the fixed
asset register.
This apportionment is represented in the diagram below:
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Description
Data Source/s
Life of Plant (LoP) List at Period 11. Management believe this is reflective of the full year.
See Appendix E for Key Destinations
PDTLTME
ALL
Transmission Monitoring Costs
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for Class of Work (CoW) LTME, which represents Transmission
Monitoring Equipment on PDH (Plesiochronous Digital Hierarchy – older Transmission equipment) technology,
to related Plant Groups (PGs) which represent bearers in the core network.
Plesiochronous Digital Hierarchy (PDH) is a technology used in telecommunications networks to transport large
quantities of data over digital transport equipment such as fibre optic and microwave radio systems.
Methodology
Costs are allocated to all PDH bearers based on the number of bearers in the network.
Core Transmission Circuit costing System (CTCS) is used to generate a count of PDH line systems by type.
Total costs at the year end are an accumulation of costs over the year; therefore allocation requires the use of
average circuit volumes over the year, rather than at the year end.
Period 6 circuit data is used in CTCS to allocate year end costs, as this reflects an average position of network
utilisation over the year.
Data Source/s
Period 6 CTCS data on the number of line systems by type.
See Appendix E for Key Destinations
PDTLXTM
ALL
Local Exchange Testing
Description
This base apportions the costs of the Local Exchange Test and Measure (LXTM) Class of Work (CoW). This covers
common or centralised testing, monitoring or access equipment for Local Exchanges that is not directly
associated with a particular exchange system type. The apportionment is based on an analysis of depreciation
costs.
Methodology
The depreciation charges from the Life of Plant (LoP) List for the CoW are analysed by asset policy code and
broken down into:
Exchange equipment used to test local exchanges.
•
This is Test Access Matrix (TAMS) equipment for Openreach and is apportioned to the TAMS Openreach Plant
Group (PG) - PG151B.
Other costs.
•
This is line test equipment and is apportioned to the Line Test Equipment PG240A.
Data Source/s
Life of Plant (LoP) List for P11. Management believes this to be representative of the full year.
See Appendix E for Key Destinations
PDTLYX
ALL
Historical Cost Balance Sheet
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for AXE10 local exchange equipment to Plant
Groups (PGs).
AXE10 equipment is equipment in BT’s network manufactured by Ericsson.
Methodology
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Description
This base apportions the F8 codes pointing to it in exactly the same way as base reference PDTSYSXD except that
the weighting between concentrators and processors is based on modern equivalent asset depreciation values
rather than historical cost depreciation values.
Therefore this base reference is calculated as follows:
There are two fundamental building blocks of AXE10 exchanges:
•
•
Concentrators.
Processors.
These building blocks are significantly different, and are each made up of a large number of specific equipment
elements. Each of these elements will relate to a specific PG. Therefore to create an apportionment base, we need
to ‘dimension’ each of these specific equipment elements.
Concentrators
Step 1 – Determine the modern equivalent asset value of all the equipment elements of concentrators in the
network.
Obtain from the Exchange Planning and Review System (EXPRES) system data that details the line types and the
total number of lines fitted to each concentrator in the BT network. This data is entered into an engineering
model which dimensions the number of equipment elements required to make up that number of lines. The
quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the total
cost for each equipment element. The appropriate element cost that the engineering model utilises is the modern
equivalent asset amounts for each type of equipment element. These are obtained from the Price Element
Scheduled (PES) as part of the LEMP (Local Exchange Modernisation Program). The figures that are used from
this are the March 1995 figures.
Step 2 – Determine an estimate of the modern equivalent asset depreciation value for the equipment building
blocks.
The current year’s asset life determinations are applied to the total modern equivalent asset values of the
equipment identified in step 1 to create a modern equivalent asset depreciation charge for the year. Asset lives
are calculated and determined by Wholesale Regulatory Finance each year. This is completed via a review process
undertaken by experts in this field. Where an individual building block does not have an individual asset life set
in this process, the equated life of the Class of Work (CoW) is applied.
Step 3 - Allocate the depreciation charge into call set-up, access and call duration categories.
Using detailed information obtained from the Switch manufacturer, which analyses how the different equipment
types within the switch are used to provide service, the total modern equivalent asset depreciation value for each
type of equipment element is allocated to the following categories:
•
•
•
Call set-up.
Call duration.
Access.
Total modern equivalent asset depreciation charges under each of the three categories can then be calculated.
This step illustrates the reason for using modern equivalent asset values to create the apportionment base for the
historical cost AXE10 values. The manufacturer’s matrix is crucial in providing the link between the F8 codes and
the PGs that they are apportioned to. However the equipment elements in the manufacturer’s matrix cannot be
reconciled to asset policy codes that are based on historical cost values. However the PES equipment elements
compiled as part of the LEMP do reconcile to the manufacturers matrix and these items are listed at modern asset
equivalent values.
Step 4 – Apportion the Access category into more detailed access categories (which will be linked to PGs at a later
stage).
The total modern equivalent asset depreciation value allocated to the category ‘access’ must be further split into
the following categories:
•
•
•
•
Public Switched Telephone Network (PSTN).
Integrated Services Digital Network (ISDN2).
ISDN30.
Payphones.
This apportionment is calculated based on the relative proportion of cost already identified in the engineering
model.
Step 5 – Create concentrator weighted base.
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Description
Using the modern equivalent asset depreciation amounts calculated for the above-listed categories, create a
weighted base for concentrator kit.
The above steps are represented in the flowchart attached below:
Diagram: Overview of Historical Cost Balance Sheet – Concentrators.
*percentages are for illustrative purposes only
Processors
Step 1 – Determine the modern equivalent asset value of all the equipment elements of processors in the
network.
Obtain from the EXPRES system data on the number of different lines connected to each processor in the BT
network. Data is also obtained from the Network Recording System (NRS) on the size of all the processors in the
BT Network. This data is then entered into an engineering model which dimensions the number of equipment
elements required to make up that total processing capacity.
The quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the
total cost for each equipment element. The appropriate element cost that the engineering model utilises is the
modern equivalent asset values for each type of equipment. This is obtained from the Price Element Scheduled
(PES) items as part of the Local Exchange Modernisation Program (LEMP). The figures that are used from this are
the March 1995 figures.
Modern equivalent asset values are used for the same reason as stated above for concentrators.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken
by experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the CoW is applied.
Total modern equivalent asset depreciation values under each of the two categories can then be calculated.
Step 3 – Create processor weighted base.
Using the modern equivalent asset depreciation amounts calculated for the above-listed categories, create a
weighted base for processor kit.
166
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The above steps are represented in the flowchart attached below:
Diagram: Overview of Historical Balance Sheet – Processors.
* Percentages are for illustrative purposes only.
Apportionment to Plant Groups (PGs)
We now have two sets of apportionment data with both the concentrator and the processor apportionments
adding up to 100%. The next step in the process is to weight the concentrator and processor apportionments.
This base uses modern equivalent asset depreciation values to create the weighting from within the model.
Step 1 – Total the modern equivalent asset depreciation charges for AXE10 equipment
From the calculations above, the total of the modern equivalent asset depreciation charges for processor
equipment is calculated. The total of the modern equivalent asset depreciation values for concentrator
equipment is also calculated.
Step 2 – Create a weighted base for apportionment percentages
Using the relative proportions between processors and concentrators derived from the previous step, the
apportionment’s calculated for processors and concentrators can be weighted.
The above steps can be represented in the flowchart attached below:
Diagram: Historical Balance Sheet – Apportionment to PGs
167
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
* Percentages are for illustrative purposes only.
Step 3 – Apportion amounts to PGs
The apportionments are applied to the following Plant Groups (PGs) based on an analysis of the most appropriate
fit for the building blocks. These are then applied to the historical cost Balance Sheet (i.e. gross book value (GBV)
and accumulated deprecation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for AXE10 local
exchange equipment. The PGs that the apportionment’s point to are as follows:
Category
Plant Group
AXE10 Local Exchange Processor and Signalling
PG280C
AXE10 Local Exchange Digital Line Termination
PG281C
AXE10 Local Exchange Swithc Block
PG282A
AXE10 Concentrator Set-Up
PG283A
AXE10 Concentrator Duration
PG284A
PSTN Linecards
PG127A
ISDN2 Linecards
PG128A
Payphone Linecards
PG120A
ISDN Capital/Maintenance
PG124A
This can be represented in the flowchart below:
Diagram: Historical Balance Sheet and Profit and Loss (P&L) Apportionment to PGs
Data Source/s
EXPRES and NRS Systems. Management uses a period that is reflective of the full year.
See Appendix E for Key Destinations
PDTMDEN
BC
Private Circuits MegaStream Maintenance
Description
This base apportions the Profit and Loss (P&L) Non-ETG Pay, Stores etc costs of maintaining MegaStream
equipment assets.MegaStream is a 2M/Bit (2,048 K/Bit) high speed, permanently connected, point to point
private circuit. It has the ability to carry multiple applications and the construction of voice and data backbone
networks makes it suitable for running a range of business operations.Linking mainframes to Local Area Networks
(LANs), linking two or more Private Branch Exchanges (PBXs) to form a network, running reservation systems and
telephone banking are just some of the applications that MegaStream is suitable for.
168
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
This base apportions the costs of maintaining MegaStream equipment assets to Plant Groups (PGs) and follows
the same apportionment percentages as determined in the PDTDTTM base. PDTDTTM apportions using a
combination of Current Costs values of bearers, volumes of circuit types and depreciation.
Data Source/s
Current Cost values of bearers, volumes of circuit types and depreciation for the most recent period of the year.
London Local Fibre Network (LLFN), Core Transmission Costing System (CTCS) and Life of Plant (LOP) List at
Period 11. Management believe this period to be reflective of the full year.
See Appendix E for Key Destinations
PDTMETAL ALL
Metro Nodes - Alcatel
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Alcatel is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analyzed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTMETCI
ALL
Metro Nodes - Cisco
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Cisco is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analyzed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTMETCN ALL
Metro Nodes - Ciena
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
169
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Ciena is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analyzed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTMETSI
ALL
Metro Nodes -Siemens
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Metro node equipment to Plant Groups
(PGs).
Metro nodes provide the routing and signalling functions for the unified 21CN network for voice, data and video.
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Siemens is one of these suppliers.
Methodology
The Metro-Node contains functionality for the transport of connectivity, voice and broadband services, via
routers.
The latest 21CN business case model is analyzed into categories, for which we have assigned PGs, for the assets
the Metro node contains. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTMSAN
F
ALL
Fujitsu MSANs
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Fujitsu manufactured MSANs (Multi
Service Access Nodes) equipment to Plant Groups (PGs).
Methodology
The latest 21CN business case model is analyzed into categories, for which we have assigned PGs, for the assets
the MSAN contains. The business case provides estimates of capital spend on a year by year basis. The relative
quantities of capital, for each of the categories provide the apportionment.
The recipients are :
•
•
•
•
•
•
•
•
•
•
170
PG856A CMASN ISDN2 Cards.
PG857A CMSAN Combo Cards BB element.
PG858A CMSAN Combo Cards Voice element.
PG859A CMSAN Control Access.
PG860A CMSAN Control Transport.
PG861A CMSAN ISDN30 Cards.
PG862A CMSAN Low Band SDSL cards =<2Mb.
PG864A CMSAN-FMSAN Link.
PG868A FMSAN Control Access.
PG869A FMSAN Control Transport.
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
•
•
•
PG870A FMSAN Ethernet Customer Access Cards.
PG872A FMSAN TDM Cards.
PG874A FMSAN to WDM Link.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTMSAN
H
ALL
Huawei MSANs
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for Huawei manufactured MSANs (Multi
Service Access Nodes) equipment to Plant Groups (PGs).
Methodology
The latest 21CN business case model is analyzed into categories, for which we have assigned PG, for the assets
the MSAN contains. The business case provides estimates of capital spend on a year by year basis. The relative
quantities of capital, for each of the categories provide the apportionment.
The recipients are :
•
•
•
•
•
•
•
•
•
•
•
•
•
PG856A CMASN ISDN2 Cards.
PG857A CMSAN Combo Cards BB element.
PG858A CMSAN Combo Cards Voice element.
PG859A CMSAN Control Access.
PG860A CMSAN Control Transport.
PG861A CMSAN ISDN30 Cards.
PG862A CMSAN Low Band SDSL Cards =<2Mb.
PG864A CMSAN-FMSAN Link.
PG868A FMSAN Control Access.
PG869A FMSAN Control Transport.
PG870A FMSAN Ethernet Customer Access Cards.
PG872A FMSAN TDM Cards.
PG874A FMSAN to WDM Link.
Data Source/s
21CN business case CAPEX forecast.
See Appendix E for Key Destinations
PDTMXD
ALL
Main Exchange Capital
Description
This base apportions the depreciation and capital costs of Main/Trunk Switches. The costs are recorded in two
Classes of Work (CoW).
•
•
MDX for System X switches.
NGS for Next Generation Switches.
Methodology
This methodology produces a combined base used for both CoWs. The System X platform asset are part of the
legacy network and are no longer manufactured. It is planned they will remain until 2014. The newer Next
Generation Switches (NGS) switches are used as a Modern Equivalent Asset as part of the process. The remaining
value on NGS is very much higher than System X.
Firstly, a fixed asset download is taken of both the MDX and NGS CoW. The proportion of depreciation relevant
to Intelligent Access and Messaging is attributed to its own Plant Group (PG) PG254A by identifying assets by
policy code or asset descriptions. Different results are obtained from the MDX and NGS CoW. The overall
proportion of depreciation is weighted by the relevant depreciation in the NGS and MDX CoWs from the
previous period (either half year or full year). Once this has been obtained then apportionment to three other
relevant PGs can be derived.
PG249C Main Exchange DLT (Digital Line Termination)
PG254A Main Exchange (I, A and M) – already described above
171
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
PG255B Main Exchange Switch Block
PG257C Main Exchange Processor
Costs subsequently exhaust to four components:
CO220 Main Exchange Call Set-Up.
CO221 Main Exchange Call Duration.
CO469 Interconnect Connections.
CO212 Local Exchange processor set-up.
CO260 Cambridge Voice Intelligent Peripherals.
In order to proportion costs to the three remaining PGs a Current Cost Accounting (CCA) approach is used to
dimension the equipment required using a Modern Equivalent Asset (MEA) of the NGS. The model dimensions
the size of the units and costs them using information contained in NGS contract (no 658109) between BT and
Ericsson. Account is taken of the additional capacity required to accommodate the remaining System X working
capacity which is to be consolidated onto the NGS system.
The engineering model used to derive these apportionments is the same used for the Long Run Incremental
Costing (LRIC) calculations. The model dimensions each exchange in the most efficient way. The total cost is
obtained for all the exchange units and the model costs are assigned as to whether they relate to the three overall
building blocks:
•
•
•
Digital Line Termination (DLT).
Processor.
Switch Block.
The relative proportions of these are used for determining the apportionment. The model also contains how much
of each building block within the exchange relates to call set up and call duration for further apportionment from
PG to component.
Data Source/s
•
•
•
•
EXPRES (Exchange Planning and Review System) – Supplies the number of System X and Next Generation
Switches (NGS) units in service.
Network Recording System (NRS) – Supplies the fitted and working capacities of System X and Next
Generation Switches (NGS) units.
Switch Deployment Plan – Also contains evidence on the fitted capacity of working NGS units together with
dates of migration from System X to NGS.
Fixed Asset Register.
See Appendix E for Key Destinations
172
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
PDTNAC
OUC
ALL A
OUCs
Description
Network Administration Computers: Capital -Wholesale
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for the Network Administration Computer
Construction (NACC) Class of Work (CoW) to Plant Groups (PGs). This is for Operate related assets. Openreach
assets are treated separately and receive a different treatment.
Methodology
These costs are apportioned between Local Digital Exchanges, Transmission, Main Exchanges and other relevant
PGs on the basis of analysis of the Fixed Asset Register (CoW Network Administration Computer Construction
Current (NACC)). This is explained in more detail below:
A download from the Fixed Asset Register is taken (using a period representative of the full year) listing the year
to date depreciation by asset type within the CoW - NACC. Each of these types of assets is allocated, using analysis
from this download of the asset type descriptions, to a type of network system.
These network systems can change but a current list is detailed below: Digital local exchange (DLE).
•
•
•
•
NGS (Next generation switch).
Operational Management Centre (OMC) – this includes Advanced Infrastructure Program (AIP) and Network
Mediation Processors (NMP).
Assets relating to the test and maintenance of Private Circuits.
Assets relating DSL (Digital Subscriber Line) maintenance.
By totalling the year to date depreciation allocated to each of these categories and dividing this by the total
depreciation in the CoW, we are able to derive percentage proportions for each category.
The above asset categories will all relate to specific PGs. Where the asset category only relates to one PG, the
percentage calculated for that asset category would be the apportionment percentage used by the base to
apportion the underlying F8 codes to this PG. Where the asset category relates to more than one PG, the
percentage calculated above will need to be split further to create apportionment percentages which the base
can use to apportion to these different PGs.
Each asset category is described in turn below:
Digital Local Exchange (DLE)
These assets are apportioned to digital local exchange PGs e.g.
PG127A (PSTN Line Cards)
PG124A M (ISDN30 Current)
PG212M (Local Exchanges Digital AXE10 Capital)
The percentage for Digital Local Exchange (DLE) is split based on the weightings on how the underlying Digital
Local Exchange assets are apportioned to these PGs.
Next generation Switch (NGS)
These assets are apportioned between Next Generation Switch (NGS) PGs.
PG255B (Main Exchange – Switchblock).
PG249M (Main Exchange = DLT Maintenance).
PG257M (Main Exchange – Processor Maintenance).
This is apportioned based on how the underlying NGS assets are apportioned between these PGs.
DSL (Digital Subscriber Line)
These assets are allocated 100% to:
PG152N DSL Rentals Wholesale
Private Circuits
These assets are allocated 100% to:
PG461A Private Circuits Test & Maintenance Systems
173
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Operational Management Centre (OMC)
These assets are apportioned to Local and Main Digital Exchange PGs e.g.
PG127A (PSTN Line Cards).
PG124A (ISDN30 Current).
PG212M (Local Exchanges Digital AXE10 Capital).
PG254A (Main Exchange - Intelligent Access and Messaging).
The percentage for OMC is split based on how the underlying Main and Local Digital Exchange assets (as stated
in BT Ledgers) are apportioned to these PGs. The weighting between the Main Exchange PGs and Local Exchange
PGs is based on the relative number of each type of these exchanges within the BT network. This information is
obtained from an extract from the EXPRES system (Exchange Planning and Review System).
These processes can be represented in the diagram below:
The base calculated in the above steps can then be applied against the values within the PDTNACM to apportion
these amounts to the relevant PGs. This is illustrated in the diagram below:
PG001
£xxx
Apportionment Base Calculated in Previous Steps
PG002
£xxx
Plant Groups
PG003
£xxx
PG151N
PG001 2%
Local Exchange
Plant Groups
PG003 4%
PG461A
PG004
£xxx
PG002 6%
PG005
PDTNAC
£xxxx
PG004 6%
NGS Plant
Groups
Local & main
Exchange Plant
Groups
PG005
£xxx
PG006
£xxx
PG007
£xxx
PG005 2%
PG006 1%
PG007 2%
PG004 1%
PG224A
£xxx
PG227A
£xxx 007
PG761A
£xxx
PG211M
£xxx
PDTNAC_Diagram 2
Data Source/s
Oracle Fixed Asset Register
General Ledger information from Central Information Database (CID).
Exchange Planning and Review System (EXPRES).
See Appendix E for Key Destinations
174
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
PDTOBREC ALL
Description
Recovery of Redundant Switch and Transmission Equipment
Description
The base apportions the Profit and Loss (P&L) Non-ETG pay associated with direct and contract supervisory work
required to recover redundant switch and transmission equipment.
Methodology
A confirmation of spend throughout the year for the Class of Work (CoW) OBREC is taken from Central
Information Database (CID) (Internal Project Ledger). This gives the Programme number and total spend per
programme throughout the year. Spend is then summed per programme type.
The total spend is derived per CoW and the percentage to total spend is calculated ignoring any insignificant
amounts. The main CoWs of work to which this programme is booked is found from the Central Information
Database (CID). The percentage allocated to the programme is then further allocated to Plant Groups (PGs) that
the capital CoW exhausts to. That is, the allocation is driven forward to the PGs by using the capital CoW to PG
allocation.
For example, if 4% of spend is allocated from OBREC to Programme B224, the main CoW that B224 allocates to
is ADSL (90%). ADSL capital exhausts to PG146A (90%) and PG148A (1%). The 4% is thence allocated to PG146A
by 4%*90% and PG148A by 4%*1%.
Data Source/s
Central Information Database (CID)
See Appendix E for Key Destinations
PDTORSFI
BC
Special Fault Investigation (SFI)
Description
This base apportions the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet
costs of Special Fault Investigations.
A Local Loop Unbundling(LLU) Special Fault Investigation (SFI) can be initiated by a LLU Communications
Provider (CP) when a Metallic Path Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the
Openreach line test system, but where there might be a problem with the CP’s Asymmetric Digital Subscriber Line
(ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
An allocation based on aspire data will be used to calculate the share of costs to be pointed from COW OR to
PGs. This allocation will only be applied to costs for OUC B (Openreach) and OUC MJ (Northern Ireland).
The Plant Groups (PGs) that these costs are apportioned to are as follows:
•
•
PG122M - Residential PSTN Maintenance.
PG989A - Special Fault Investigation.
Data Source/s
Aspire DIY report.
See Appendix E for Key Destinations
PDTRAR
BC
Routing and Records Base - Openreach
Description
The costs within this base are for the routing and records activity. This activity is the physical verification of
routings within the network, and records the time associated with the initial recording of routing details on BT
systems.
There are also Capital Planning Pay and Non Pay costs which are not directly related to the routing and records
activity.
Methodology
Bookings to the Class of Work (CoW) RAR (Routing and Records) consist of two elements.
175
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The first element is the time booked that is directly related to the Routing and Routing activity as defined in the
CoW description.
The second element, Capital Planning, is the time spent on activities that are outside of the CoW description and
allocated to Capital Programmes. This consists of bookings made by non field units, maintenance of records and
planning indirects.
Kilo Man Hour (KMH) data for P12 is used to split the costs into the two elements. The proportion of the cost
proper to the routing and records activity will follow the same methodology as PG140A and apportioned using
New Supply connection line volumes from Powerhouse. The Capital Planning element of costs will be
apportioned using capital Pay, the rationale for this being that these are planning related costs with the benefits
accrued when the assets are built.
Data Source/s
Period 12 KMH by CoW Report provided by the Openreach Capacity and Resourcing Team.
See Appendix E for Key Destinations
PDTSCNM
AR
Network Platform Support Contract Costs
Description
This base apportions the Profit and Loss (Other Payments) costs of technology vendor provided support usually
under fixed term support contracts.
The full detailed list of platforms supported is obtained from the Vendor Management team Organisational Unit
Code (OUC) ADF and includes the following high level Platforms:
•
•
•
•
•
•
•
•
Transmission.
Broadband.
ASU (Advanced Switching Unit).
Private Circuits.
SDH (Synchronous Digital Hierarchy).
Intelligent Network.
PSTN (Public Switched Telephone Network) Switch.
Telex etc.
Methodology
Step 1 – Platform level breakdown.
The first step of the methodology breaks down the total Support Contract Costs into technologies or platforms.
The data used for this comes from the Support Contract Spend Managers.
Step 2 – PG (Plant Group) level breakdown.
The platform level costs are then apportioned to the PGs relevant to the spend by analysis of the spend in
collaboration with the relevant support contract manager.
176
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Where a split to a platform’s PG is required, the following data sources are used to derive the split:
Step 3 – Amalgamation.
The PG level bases calculated in step 2 are amalgamated back into a SCNM level base by utilising the outputs from
Step 1 and 2.
Data Source/s
Full year Platform level contract support costs – provided by the Technology Vendor Management team.
Plant Group specific platform apportionments from NCA (Network Cost Analysis) Analysts using information from
sources highlighted above.
See Appendix E for Key Destinations
PDTSDH
ALL
SDH (Synchronous Digital Hierarchy) Electronic Assets
Description
This base drives the Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs for Class of Work (CoW) SDH (Synchronous Digital Hierarchy) and
also the maintenance costs on CoW IVS (Maintenance, Synchronous Digital Transmission Equipment).
SDH represents newer electronic assets in the Transmission network. They complement the transmission
equipment capacity provided by the Plesiochronous Digital Hierarchy (PDH) assets – see PDTCRD and PDTCRF.
IVS capture the corresponding maintenance costs incurred on SDH equipment.
177
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Allocation is to Plant Group (PG), which represent bearers in the core network.
SDH CoW is subdivided into a number of asset policy codes, representing the different asset types within SDH.
The driver and destination for these policy codes does vary. SDH costs are mapped to bearer links, which can
either be STM1, STM4, STM16 or STM64, represented by a number of PGs.
Asset types
Asset types within SDH can be classified into a number of key categories:
•
•
•
•
•
ADMs ( ADMs – Add Drop Muxes - Exchange and customer sited).
Cross Connects - (Routing equipment - Two main types-4/1 and 4/4).
Line systems.
International Backhaul equipment.
Other (Software, computer equipment, etc).
Methodology
CTCS (Core Transmission Circuit costing System) generates a file listing all SDH equipment and the number of
factored hits by bearer type (PG). The aim is to allocate the cost of equipment to a number of bearer types based
on usage and utilisation. Hits represent the number of times a bearer interfaces with a piece of equipment. A
factor is applied in order to ensure utilisation is taken into account, for example an STM 4 (565mb) bearer would
utilise an ADM, four times as much as a STM 1(155mb) bearer.
The CTCS file details all SDH assets by bandwidth. For example, ADMs (Add Drop Muxes) are broken down by type
- SMA1, SMA4 and SMA 16.
BT’s
initial calculations are at an asset policy level. Asset policy codes group assets into broad categories, so ADMs
(Add Drop Muxes) would be grouped into one code. However, no detail is provided of the different ADM (Add
Drop Muxes) types, which vary by bandwidth. The cost/depreciation of equipment and the bearer hits vary
considerably by bandwidth.
As a result, the process involves splitting asset policy codes into further detail, by using:
•
•
Count of equipment by bandwidth.
Price of equipment by bandwidth.
The value (Count * Price) of each equipment type, within a policy code, is used to weight the factored hits. The
hits are then grouped together, at an overall asset policy level.
•
•
Initially, all base calculations are at an asset policy level. However, the final input into ASPIRE requires an
amalgamation of all these bases, to reflect an overall CoW to PG base. To consolidate all the asset policy
codes, within a particular CoW, a weighted average is created, weighted by Period 6 depreciation from the
Period 6 Life of Plant (LoP) list. This is derived from the fixed asset register (refer to the Data Source/s
section).
Indirect costs are treated as overheads and are allocated to PGs, in proportion to the value of the equipment
already apportioned.
Data Source/s
Period 6 circuit data is used in Core Transmission Circuit costing System (CTCS) to allocate year end costs, as this
reflects an average position of network utilisation over the year.
Period 6 Life of Plant list (LoP list).
SDH prices-Procurement/SDH cost model.
For further explanation refer to the diagram below.
Diagram: SDH Electronic Assets PDTSDH Process
178
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
See Appendix E for Key Destinations
PDTSIGNI
ALL
Signalling Equipment Capital Costs
Description
This base apportions the capital costs of Signalling equipment registered in the SIGNI Class of Work (CoW) to Plant
Groups (PGs).
SIGNI equipment is associated with PSTN (Public Switched Telephony Network] Interconnect (Other Licensed
Operator) circuits and PSTN to Intelligent Network (IN) circuits.
The main assets are:
•
•
STP (Signalling Transfer Point) switches and Edge Link Monitors for Interconnect Circuits.
SPRs (Signalling Point Relay switches) and Core Link Monitors for PSTN to IN Circuits.
Methodology
The Fixed Asset Register records assets against distinct Asset Policy Codes (APCs) which reflect asset function. This
allows easy identification of depreciation costs by function and allows the calculation of the relevant split to
corresponding PGs. A summary of data from the Fixed Asset Register for the latest available period is used for the
base.
The relationship between APCs and PGs is shown below.
SIGN Signalling Transfer Point Switches and SIGE Edge-link monitors
Costs directly attributed to PG228A Signalling Transfer Point switches and Edge Link Monitors
SIGC Core-link monitors and SIGS Signalling Point Relay Switches
Costs directly attributed to PG229A Signalling Point Relay switches and Core Link Monitors
Diagram: Signalling Equipment PDTSIGNI Apportionment Process.
Data Source/s
Fixed Asset Register (LoP List) data at the latest available period. Management believe this period to be reflective
of the full year.
See Appendix E for Key Destinations
PDTSYSXD
ALL
System X – Historic Balance Sheet/Profit and Loss
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value (GBV) and accumulated
deprecation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for System X local exchange
equipment to Plant Groups (PGs).
179
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Methodology
There are two fundamental building blocks of System X
•
•
Concentrators.
Processors.
Each of these elements will relate to a specific PG. Therefore to create an apportionment base, we need to
‘dimension’ each of these specific equipment elements.
Concentrators
Step 1 – Determine the Current Cost value of all the equipment elements of concentrators in the network.
Obtain from the EXPRES (Exchange Planning and Review System) system data that details the line types and the
total number of lines fitted to each concentrator in the BT Network. This data is entered into an engineering
model which “dimensions” the number of equipment elements required to make up that number of lines. The
quantities of each equipment element are then multiplied by an appropriate element cost to arrive at the total
cost for each equipment element. The appropriate element cost that the engineering model utilises is the Current
Cost amounts for each type of equipment element. These are obtained from the Price Element Scheduled (PES)
items as part of the LEMP (Local Exchange Modernisation Program). The figures that are used from this are the
March 1995 figures.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in Step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken
by experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the Class of Work (CoW) is applied.
Step 3 - Allocate the depreciation charge into call set-up, access and call duration categories using cost drivers.
Using detailed information obtained from the switch manufacturer, which analyses how the different equipment
types within the switch are used to provide service, the total Current Cost depreciation value for each type of
equipment element is allocated to the following categories:
•
•
•
Call set-up.
Call duration.
Access.
Total Current Cost depreciation values under each of the three categories can then be calculated.
This step illustrates the reason for using Current Cost values to create the apportionment base for the historical
cost System X values. The manufacturer’s matrix is crucial in providing the link between the F8 codes and the PGs
that they are apportioned to. However the equipment elements in the manufacturer’s matrix cannot be
reconciled to asset policy codes that are based on historical cost values. However the PES equipment elements
compiled as part of the LEMP do reconcile to the manufacturers matrix and these items are listed at modern asset
equivalent values.
Step 4 – Apportion the Access category into more detailed access categories, which will be linked to PGs in later
stages.
The total Current Cost depreciation allocated to the category ‘access’ must be further split into the following
categories:
•
•
•
•
Public Switched Telephone Network (PSTN).
Integrated Services Digital Network (ISDN2).
ISDN30.
Payphones.
This apportionment is calculated based on the relative proportion of cost already identified in the engineering
model.
Step 5 – Create concentrator weighted base.
Using the Current Cost depreciation amounts calculated for the above-listed categories, create a weighted base
for concentrator kit.
180
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The above steps are represented in the flowchart below:
*percentages are for illustrative purposes only
Processors
Step 1 – Determine the Current Cost value of all the equipment elements of processors in the network.
Obtain from the EXPRES system data on the number of different lines connected to each processor in the BT
network. Data is also obtained from NRS (Network Recording System) on the size of all the processors in the BT
network.This data is then entered into an engineering model which “dimensions” the number of equipment
elements required to make up that total processing capacity. The quantities of each equipment element are then
multiplied by an appropriate element cost to arrive at the total cost for each equipment element. The appropriate
element cost that the engineering model utilises is the Current Cost amounts for each type of equipment. This is
obtained from the PES items as part of the LEMP. The figures that are used from this are the March 1995 figures.
Current Cost values are used for the same reason as stated above for concentrators.
Step 2 – Determine an estimate of the Current Cost depreciation value for the equipment building blocks.
The current year’s asset life determinations are applied to the total Current Cost values of the equipment
identified in step 1 to create a Current Cost depreciation charge for the year. Asset lives are calculated and
determined by the Wholesale Regulatory Finance each year. This is completed via a review process undertaken
by experts in this field. Where an individual building block does not have an individual asset life set in this process,
the equated life of the CoW is applied.
Step 3 – Create processor weighted base.
Using the Current Cost depreciation values calculated for the above-listed categories, create a weighted base for
processor kit.
181
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The above steps are represented in the flowchart below:
* percentages are for illustrative purposes only
Apportionment to PGs
We now have two sets of apportionment data with the concentrator apportionments add up to 100% and the
processor apportionments also add up to 100%. The next step in the process is to weight the concentrator and
processor apportionments This base uses modern equivalent asset depreciation values to create the weighting
from within the model.
Step 1 – Total the modern equivalent asset depreciation charges for System X equipment.
From the calculations above, the total of the modern equivalent asset depreciation charges for processor
equipment is calculated. The total of the modern equivalent asset depreciation values for concentrator
equipment is also calculated.
Step 2 – Create weighted base for apportionment percentages.
Using the relative proportions between processors and concentrators derived from the previous step, the
apportionments calculated for processors and concentrators can be weighted.
182
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The above steps can be represented in the flowchart below:
*percentages are for illustrative purposes only
Step 3 – Apportion amounts to PGs.
These apportionments are applied to the following PGs based on an analysis of the most appropriate fit for the
building blocks. These are then applied to the historical cost Balance Sheet (i.e. GBV and accumulated
deprecation) and historical cost Profit and Loss (i.e. depreciation etc.) charges for System X local exchange
equipment. The PGs that the apportionments point to are as follows:
183
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
This is represented in the flowchart below:
Data Source/s
EXPRES (Exchange Planning and Review System).
LEMP (Local Exchange Modernisation Program) Contract - The figures that are used from this are the March
1995 figures.
See Appendix E for Key Destinations
PDTTCR
ALL
Costs - Transmission Repair and Control on Trunk and Junction Transmission equipment
Description
This base apportions management pay costs of maintenance and repair works carried out on Trunk and Junction
transmission equipment. This refers to the supervision of maintenance work carried out on the link sections of
optical fibre cables which form part of the Core Network (also known as Core networks) and Private Circuits using
the Plesiochronous Digital Hierarchy (PDH) technology (see Plant Group (PG) Overview on descriptions of Core
Transmission Bearers).
These costs are incurred by BT Wholesale Network Operations and Management (OUCs NL, NC respectively), and
flow into the Class of Work (CoW) TCR (Transmission Control and Repair) which relate to PGs representing bearers
in the core network.
Methodology
Costs are attributed to PDH PGs based on the number of PDH Line Systems and PDH Multiplexors supporting the
different PDH bandwidths.
Data Source/s
Period 6 circuit data is used in Core Transmission Circuit costing System (CTCS) to allocate year end costs, as this
reflects an average position of network utilisation over the year.
See Appendix E for Key Destinations
PDTTPWC
ALL
Costs – Core Microwave Radio Transmission Equipment
Description
This base apportions Net Book Value (NBV = Gross Book Value – Accumulated Depreciation + Assets in Course of
Construction) and depreciation charge costs related to core microwave radio transmission equipment, Class of
Work (CoW) TPWC. Unlike cable transmission, radio has only link related equipment to consider. Examples of this
equipment are antennas, masts and radio electronics.
Methodology
Costs are apportioned over the different bandwidth bearers based on an analysis of radio bearers in the core
transmission network which is derived from Core Transmission costing Circuits System (CTCS) database. CTCS
shows the relationship between equipment types and the bearers they support.
184
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The depreciation costs of radio equipment can be apportioned to radio bearers based on the bearers' usage of
this equipment. Usage is measured as the number of times a certain type of bearer “hits” the equipment in the
network.
For example, CTCS would map the number of hits made on the equipment (in this case Core Transmission
Microwave Radio Infrastructure) by bearers of a particular type (e.g. Plesiochronous Digital Hierarchy (PDH)Radio-8Mbit/s, 34Mbit/s or 140Mbit/s-Lk bearers). For further clarification please see the diagram below.
Usage factor is used as for bearers on fibre cable, e.g. a 140 Mbit/s radio bearer can support 64 x 2 Mbit/s circuits,
and so the usage factor is 1/64.
Data Source/s
Period 6 CTCS data on factored bearer hits on each radio system type. Management believes this Period to be
reflective of the full year.
See Appendix E for Key Destinations
PDTUDL
BC
Special Fault Investigation (SFI)
Description
This base apportions the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet
costs of Special Fault Investigations.
A Local Loop Unbundling(LLU) Special Fault Investigation (SFI) can be initiated by a LLU Communications
Provider (CP) when a Metallic Path Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the
Openreach line test system, but where there might be a problem with the CP’s Asymmetric Digital Subscriber Line
(ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
An allocation based on aspire data will be used to calculate the share of costs to be pointed from COW UDL to
Plant Groups (PGs).This allocation will only be applied to costs for OUC B (Openreach) and OUC MJ (Northern
Ireland).
The PGs that these costs are apportioned to are as follows:
•
•
PG118M – D side Copper Current.
PG989A - Special Fault Investigation.
Data Source/s
Aspire DIY report.
See Appendix E for Key Destinations
PDTUEL
BC
Special Fault Investigation (SFI)
Description
This base apportions the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance Sheet
costs of Special Fault Investigations
185
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
A Local Loop Unbundling(LLU) Special Fault Investigation (SFI) can be initiated by a LLU Communications
Provider (CP) when a Metallic Path Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the
Openreach line test system, but where there might be a problem with the CP’s Asymmetric Digital Subscriber Line
(ADSL) or Symmetric Digital Subscriber Line (SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
An allocation based on aspire data will be used to calculate the share of costs to be pointed from COW UEL to
Plant Groups (PGs).This allocation will only be applied to costs for OUC B (Openreach) and OUC MJ (Northern
Ireland).
The Plant Groups (PGs) that these costs are apportioned to are as follows:
•
•
PG117M – E Side Copper Current.
PG989A - Special Fault Investigation.
Data Source/s
Aspire DIY report.
See Appendix E for Key Destinations
PDTWDM2 ALL
1
Wavelength Division Mulitplexor transmission equipment used in 21CN (Ciena)
Description
This base apportions the historical cost Balance Sheet (i.e. gross book value and accumulated deprecation) and
historical cost Profit and Loss (P&L) (i.e. depreciation etc.) charges for the transmission equipment of the
WDMSAN chains, the METRO – CORE and CORE – CORE transmission electronic equipment, to Plant Groups
(PGs).
BT’s strategic equipment suppliers for 21CN have been chosen across each of five (access, metro, core, i-nodes
and transmissions) strategic domains. Ciena is one of these suppliers.
Methodology
The WDM equipment contains functionality for the transport of connectivity, voice and broadband services over
the WDM chains and the METRO/CORE layer nodes.
The latest 21CN business case model is analyzed into the categories, for which we have assigned PGs, for the
assets of the WDM electronics. The business case provides estimates of capital spend on a year by year basis. The
relative quantities of capital, for each of the categories provide the apportionment.
Data Source/s
21CN business case Capex forecast.
See Appendix E for Key Destinations
PDTWMCN BC
Work Manager
Description
Work Manager is a task recording system used in BT Wholesale to record the time spent by field engineers across
many Classes of Work (CoW). It allocates work in the core network and manages the control system for work
carried out at non-specialised Network Operations Units.
Methodology
An analysis of the “Work Manager” task recording system apportions costs that relate to the management of the
core network work allocation and control system carried out at Network Operations Units (NOU).
CoWs are identified from a download of Work Manager information and a sample representative of the full year
(normally six months) is used. The number of tasks for Work Manager is shown by CoW and this is used to
determine the apportionment. Where the CoW is apportioned to more than one Plant Group (PG) the
apportionment applied to the capital CoW is used. Where the Capital CoW to PG is 100% then the PG receives an
unchanged percentage from WMCN.
Data used is from the Openreach Work Manager machines as these contain activities relevant to Openreach only
and drive to Openreach CoWs.
186
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Data Source/s
Work Manager National Job Recording (NJR Data).
See Appendix E for Key Destinations
PENOFF
E
International Financial Reporting Standard (IFRS) Share Benefit Cost Offset
Description
This base apportions the Profit and Loss (P&L) costs (current ETG Pay etc) associated with the Share Option
Schemes and represents the “discount” offered as part of the scheme.
Methodology
This cost is charged to Lines of Business (LOB), with the corresponding credit going to OUC E. The Pan Divisional
balance is therefore zero. The PENOFF base is designed to ensure that the Products, Plant Groups (PGs) and Level
1 Activity Groups (AGs) also total zero.
The base is created by using a download from Aspire for F8 Code 109152 (Shared Benefit Costs) omitting
Organisational Code Unit (OUC) E. The result can then be calculated to sum to zero from a Product perspective.
Example:
Data Source/s
Download from Aspire on F8 code 109152.
See Appendix E for Key Destinations
PROPPRO
V
W
Property Provision
Description
BT Property is currently implementing a property rationalisation strategy by consolidating the office space within
the estate, and this is enabling the mothballing and subletting of buildings.
The cost associated with this rationalisation is being treated as a Provision, as it is not part of business as usual
activity.
Methodology
The property rationalisation is limited to office space, and therefore a base derived from the General Purpose
Occupation cost charges to Lines of Business (LOB) provides a cost causal apportionment methodology.
Effectively the cost of the property rationalisation is being apportioned over current office space usage.
Data Source/s
LOB charges are generated from Group Properties ‘Horizon’ Billing database, which maintains records of all
buildings, whether owned or leased, and organisational units’ space utilisation.
See Appendix E for Key Destinations
187
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
REDPAY
OUC
JAA
Description
Newstart Leaver Payments
Description
BT offers redundancy payments to its employees where the unit is over resourced. These costs are ledgered
centrally in Global Services.
Methodology
The EXCEPT base is derived from:
•
•
An ASPIRE Period 12 pay report is run for the Global Services Line of Business (LoB) to apportion EXCEPT J
item to Products (Ps)/Plant Groups (PGs) and Activity Groups (AGs). It is essential that the pay report from
ASPIRE is only produced after the input of all other Global Service pay bases because of the iterative effect
on pay at Top Level OUC J.
The labour costs of each destination Products, PGs and AGs are weighted as a percentage of the total. This
percentage forms the EXCEPT J base.
Diagram 1 and 2 below illustrate this methodology.
In Diagram 1, the Global Services Line of Business (LoB) appears in the BT core hierarchy. On previous runs in the
regulatory accounting process, a base is derived for OUCs that apportions labour cost to Products, PGs and AGs.
This is represented for example by OUC JG, which used a base to apportion labour costs to Products 1, 2, and 3
at £10, £15 and £25 respectively.
Diagram 1.
It is assumed in this example that Products 1, 2 and 3 are the only Products that have labour cost apportioned to
them. The ASPIRE pay report, used as a base for EXCEPT J, identifies the labour costs apportioned to Products 1,
2 and 3 through other bases.
A base for allocating EXCEPTJ items is then calculated by weighting previous labour attributions made for each
Product as a percentage of the total. This can be seen in diagram 2, where previously apportioned pay cost for
Product 1, 2 and 3 are given a weighting of 20%, 30% and 50% respectively, that forms the base for EXCEPT J.
Data Source/s
Global Services Finance Unit analysis as at Period 12.
See Appendix E for Key Destinations
188
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
REDUND_C ALL
OR
Core
OUCs
Except
B's
Description
Balance Sheet – Redundancy Creditor Accruals
Description
This base is used to apportion redundancy creditor accruals in the Balance Sheet.
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time redundancy costs are updated. Each base has two separate markers that govern:
•
•
the income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. REDUND)
the AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. COR)
Data Source/s
‘REDUND’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all redundancy and NewStart pay costs incurred by BT during the year. This data is held within the
system by AS (Accounting Separation) Cost Centre.
‘COR’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the redundancy
creditors balance should be apportioned.
The REDUND apportionment base is adapted to exclude data that apportions to any AS (Accounting Separation)
Cost Centres not listed in the ‘COR’ group of Cost Centres. The remaining data is rebased to 100% and this base
is applied to the miscellaneous creditors balance.
‘COR’ refers to all AS (Accounting Separation) core Cost Centres, which incurred costs, specifically excluding any
overseas activities.
See Appendix E for Key Destinations
REDUND_
ORP
ALL B
OUCs
Balance Sheet – Redundancy Creditor Accruals
Description
This base is used to apportion redundancy creditor accruals in the Balance Sheet relating to Openreach.
189
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time redundancy costs are updated. Each base has two separate markers that govern:
•
•
the income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. REDUND)
the AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ORP)
Data Source/s
‘REDUND’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. all redundancy and NewStart pay costs incurred by BT during the year. This data is held within the
system by AS (Accounting Separation) Cost Centre.
‘ORP’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the redundancy
creditors balance should be apportioned.
The REDUND apportionment base is adapted to exclude data that apportions to any AS (Accounting Separation)
Cost Centres not listed in the ‘ORP’ group of Cost Centres. The remaining data is rebased to 100% and this base
is applied to the miscellaneous creditors balance.
‘ORP refers to all AS (Accounting Separation) Openreach Cost Centres, which incurred costs, specifically
excluding any overseas activities.
See Appendix E for Key Destinations
SLGETH
BC
Service Level Guarantee scheme (SLG) – Ethernet
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with Ethernet Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.
Internal Costs F8 293753.
190
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
External Costs F8 209280.
A percentage split between provision and repair activities will be calculated using volume data from Netview and
the costs will then be pointed to the following Plant Groups (PGs).
PG573B - OR Service Centre - Provision Ethernet.
PG578B - OR Service Centre - Assurance Ethernet.
Data Source/s
Aspire.
Netview.
See Appendix E for Key Destinations
SLGLLU
BC, BZ
Service Level Guarantee scheme (SLG) – LLU
Description
This base apportions revenue and costs associated with Service Level Guarantee compensation payments for
provision and repair failures associated with LLU Products.
The Service Level Guarantee scheme (SLG) pays compensation to customers if Openreach fails to meet agree
timescales for Provision or Repair activities.
Methodology
Costs against the following F8 Codes.
Internal Costs F8 293754.
External Costs F8 209300.
A percentage split between provision and repair activities will be calculated using volume data from Netview and
the costs will then be pointed to the following Plant Groups (PGs).
PG572B - OR Service Centre - Provision LLU.
PG577B - OR Service Centre - Assurance LLU.
Data Source/s
Aspire.
Netview.
See Appendix E for Key Destinations
SOFTCAP
A, AN,
AP, AR
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Operate Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs. The analysis of how these projects were treated
under the development base is used to produce a weighted average of the total treatment for each project. This
is used to calculate a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG447A (100%) and
this same project, has been capitalised, then the SOFTCAP base apportions the capitalisation entries for the
project to PG447A (100%) as well.
Data Source/s
LoB development base.
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
See Appendix E for Key Destinations
191
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
SOFTCAP
OUC
B, BC,
BD, BE,
BY
Description
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Openreach Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs. The analysis of how these projects were treated
under the development base is used to produce a weighted average of the total treatment for each project. This
is used to calculate a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG772A (100%) and
this same project, has been capitalised, then the SOFTCAP base apportions the capitalisation entries for the
project to PG772A (100%) as well.
Data Source/s
LoB development base.
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
See Appendix E for Key Destinations
SOFTCAP
C
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Group Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs.
The capitalisation costs for OUC C are apportioned 100% to AG112, Corporate costs.
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
See Appendix E for Key Destinations
SOFTCAP
D
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Innovate and Design Organisational Unit Codes (OUCs).
Methodology
SOFTCAP uses the current year software capitalisation costs.
The capitalisation costs for D OUC are apportioned by the D Except base (BT Design and Innovate – Development
and Consulting Projects) using an analysis of the activity of units receiving the transfer charge from BT Innovate
and Design.
Data Source/s
Ledgered costs.
See Appendix E for Key Destinations
SOFTCAP
K
Software Capitalisation Entries
Description
The SOFTCAP base apportions software capitalisation entries on the Profit and Loss and Balance Sheet relating to
Wholesale Organisational Unit Codes (OUCs).
Methodology
192
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
SOFTCAP uses the current year software capitalisation costs. The analysis of how these projects were treated
under the development base is used to produce a weighted average of the total treatment for each project. This
is used to calculate a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG197A and PG198A
(67.9% and 32.1% respectively) and this same project, has been capitalised, then the SOFTCAP base apportions
the capitalisation entries for the project to PG197A and PG198A (69% and 32.1%) as well.
Data Source/s
LoB development base.
Capital Expenditure details (cumulative total) - supplied by LoB finance analysts.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
See Appendix E for Key Destinations
SOFTDEP
A, AP,
AR
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Operate Organisational Unit Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register. The network costs
analyst determines how those projects were apportioned under the development base and, using a weighted
average of the treatment for each individual project, calculates a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG447A (100%) and
this same project, has been depreciated, then the SOFTDEP base apportions the depreciation entries for the
project to PG447A (100%) as well.
Data Source/s
LoB development base.
Fixed Asset Register software data for Period 12.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
See Appendix E for Key Destinations
SOFTDEP
BC, BE,
BY
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Openreach Organisational Unit Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register. The network costs
analyst determines how those projects were apportioned under the development base and, using a weighted
average of the treatment for each individual project, calculates a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG772A (100%) and
this same project, has been depreciated, then the SOFTDEP base apportions the depreciation entries for the
project to PG772A (100%) as well.
Data Source/s
LoB development base.
Fixed Asset Register software data for Period 9. Management believe this period to be reflective of the full year.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
See Appendix E for Key Destinations
SOFTDEP
C
Software Depreciation
Description
193
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Operate, Openreach, Wholesale, Retail and Global Organisational Unit
Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures. The depreciation costs for C OUC are apportioned 100% to
AG112, Corporate costs.
AG112 is an activity pool including costs in support of the Chairman’s office, Group Personnel, Chief Technology
Officer and Technology Director. These activities tend to be of a ‘head office’ nature.
Data Source/s
There are no data requirements for this base since all costs are allocated directly to AG112.
See Appendix E for Key Destinations
SOFTDEP
K
Software Depreciation
Description
The SOFTDEP base apportions software depreciation costs. Profit and Loss and Balance Sheet (Fixed Asset
Accumulated Depreciation) relating to Operate, Openreach, Wholesale, Retail and Global Organisational Unit
Codes (OUCs).
Methodology
SOFTDEP uses the current year’s depreciation figures extracted from the fixed asset register. The network costs
analyst determines how those projects were apportioned under the development base and, using a weighted
average of the treatment for each individual project, calculates a new base that reflects the original treatment.
For example if a development project was apportioned (under the development base) to PG197A and PG198A
(67.9% and 32.1% respectively ) and this same project, has been capitalised, then the SOFTCAP base apportions
the capitalisation entries for the project to PG197A and PG198A (69% and 32.1%) as well
Data Source/s
LoB development base.
Fixed Asset Register software data for Period 12.
ASPIRE P9 Organisational Unit Code (OUC) pay downloads.
See Appendix E for Key Destinations
TOTPAYCORA
ALL
Core
OUCs
Except
B's
Employee-related Debtors and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related debtors and creditors, pay related group adjustments and other
provisions.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
194
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. CORA).
Data Source/s
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘CORA’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the employee
related debtors and creditors, group adjustments and pay provisions balances should be apportioned i.e. all AS
(Accounting Separation) Cost Centres excluding overseas activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS (Accounting Separation)
Cost Centres not listed in the CORA group of AS (Accounting Separation) Cost Centres. The remaining data is
rebased to 100% and this base is applied to the CORA creditors balance.
‘CORA’ refers to BT Core Business Cost Centres.
See Appendix E for Key Destinations
TOTPAYORP
ALL B
OUCs
Employee-related Debtors and Creditors, Pay Related Group Adjustments and Other Provisions
Description
This base is used to apportion employee-related debtors and creditors, pay related group adjustments and other
provisions relating to Openreach.
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
195
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
•
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. ORP).
Data Source/s
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT during the year.
‘ORP’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the employee
related debtors and creditors, group adjustments and pay provisions balances should be apportioned i.e. all AS
(Accounting Separation) Cost Centres excluding overseas activities.
The TOTPAY apportionment base is adapted to exclude data that apportions to any AS (Accounting Separation)
Cost Centres not listed in the ORP group of AS (Accounting Separation) Cost Centres. The remaining data is
rebased to 100% and this base is applied to the ORP creditors balance.
‘ORP’ refers to BT Openreach Cost Centres.
See Appendix E for Key Destinations
TOTPAYPENA
ALL
Core
OUCs
Employee Pensions
Description
This base is used to apportion staff pension cost ledgered on BT Group consolidation units as well as debtors and
creditors relating to employee pensions. These are apportioned on the basis of total pay (current and capital
account).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach,
thus is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
•
196
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. PENA).
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Diagram: ASPIRE System Process
Data Source/s
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT. The data is held within the ASPIRE system by AS
(Accounting Separation) Cost Centre.
‘PENA’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the group
adjustments and staff provisions and debtors and creditors relating to pensions balances should be apportioned
i.e. total BT units excluding subsidiaries.
The TOTPAY apportionment base (see above) is adapted to exclude apportionments to AS (Accounting
Separation) Cost Centres not listed in the PENA group of AS (Accounting Separation) Cost Centres.
‘PENA’ refers to those BT units participating in one of the BT Pension schemes.
Diagram: Employee Pensions Apportionment Process
See Appendix E for Key Destinations
TOTPAYSYBA
ALL
Core
OUCs
Employee Profit Sharing – Total Pay (Current and Capital Account)
Description
This base is used to apportion staff costs and creditors relating to Employee Profit Sharing on the basis of total
pay (current and capital account).
Methodology
The detailed base is a system generated ratio that is derived from the ASPIRE system using a two stage approach.
This is recalculated each time the pay costs are updated. Each base has two separate markers that govern:
•
•
The income/cost transactions the system should draw upon to derive the appropriate base (Data Designator
1, i.e. TOTPAY).
The AS (Accounting Separation) Cost Centres to which the balances should be apportioned (Data Designator
2, i.e. SYBA).
197
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
OUC
Description
Diagram: ASPIRE System Process
Data Source/s
‘TOTPAY’, the Data Designator 1, specifies the cost transactions (range of F8 codes) from which the base is
derived, i.e. total current and capital pay costs incurred by BT. This data is held within the ASPIRE system by AS
(Accounting Separation) Cost Centre.
‘SYBA’, the Data Designator 2, specifies the AS (Accounting Separation) Cost Centres to which the creditors
relating to Employee Profit Share should be apportioned (See Appendix E for Key Destinations).
The TOTPAY apportionment base is adapted to exclude apportionments to AS (Accounting Separation) Cost
Centres not listed in the SYBA group of AS (Accounting Separation) Cost Centres.
‘SYBA’ refers to those BT Group units in the BT Sharesave scheme, which relate to employee profit share.
Diagram: Employee Profit Sharing Apportionment Process.
See Appendix E for Key Destinations
TRANSJ
J
Global Services Transformation Costs
Description
This base apportions non -pay costs incurred in the restructuring of BT Global Services.
Methodology
A central provision was created to capture the costs associated with the BT Transformation project – in this case
Global Services.
These costs have been identified through a schedule provided by BT Global Services. The costs have been spread
across BT Global services products using agreed methodologies.
Data Source/s
BT’s core ledgers and schedule of published specific items.
Key Destinations
198
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
WJOBO
OUC
AK
Description
Other Costs by Job
Description
This base apportions any current account expenditure not classified as a Class of Work (CoW) which therefore
cannot be allocated directly to a job.
Methodology
Using downloads for the Internal Project Ledger (IPL) it is possible to identify assets registered to the WJOBO CoW
that are specific to the Internet Protocol (IP) and Data platforms. Using the ‘Year to Date’ view identifies the
spend that is relevant to the IP and Data platforms. Where the asset cannot be identified with a specific platform
i.e. Voice over Internet Protocol (VoiP) the costs follow the appropriate base – Internet Protocol Network Capital)
(IPNCW) or Asynchronous Transfer Mode (ATM). Equipment that is not identifiable follows the Pay base for OUC
A.
Voice over Internet Protocol (VoIP) is a method of transporting speech over the internet.
Internet Protocol Network Capital (IPNC) is the set of communication tools which enables computers to 'talk' to
each other over the Internet.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, Broadband
(Multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Diagram: WJOBO
Data Source/s
Year to date data from Internal Project Ledger (IPL). Retail Regulatory Reporting provides the Pay base at OUC A
Level.
See Appendix E for Key Destinations
WRITEOFF
D
Fixed Asset write off account
Description
This base apportions other costs associated with the Fixed Asset write off account for F8 Codes 203982 FA W/O
Account and 209476 4th Line of Support Costs. As development of new 21CN products and activities evolve,
some assets and development have been reviewed. Those that are not considered viable have been written out
of the statutory accounts. Aspire reflects this by distributing this cost over network activities, using an Operate
Organisational Code (OuC) A Pay base, as Operate (not Design OuC D) would have attracted costs if the expected
asset life were progressed.
Methodology
The base is derived using an Operate OuC A pay base which draws upon previously apportioned pay.
Data Source/s
Aspire as at Period 12.
See Appendix E for Key Destinations
199
Section 4 Base Methodology Dictionary – Detailed Attribution Methods (DAM)
Base Ref
200
OUC
Description
Detailed Attribution Methods (DAM) – Section 5 Activity Group
5 Activity Group Dictionary
Base Ref
Description
AG101
Motor Transport
Description
BT Fleet Management (within BT Group) provides motor vehicles and associated Products and services to employees
within BT. The group recover its cost by charging other BT units for its activities. It does this by maintaining records of
the units 'owning' the expenditure and can recover the costs using internal transactions.
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and balance sheet amounts whose
similar underlying nature means they have the same apportionment driver. Therefore, instead of creating individual
apportionment bases for each F8 code, they can be grouped together and apportioned using the one methodology.
It therefore follows that since the activity of this IAG relates to the provision of motor vehicles and associated services to
the whole of BT, F8 codes which directly relate to this activity should be apportioned directly to this IAG. This base
performs this process by creating a direct allocation to AG101 for these F8 codes.
Apportionment Summary
The apportionment of Motor Transport costs is made using an analysis of the activity of units receiving the transfer
charge from BT Fleet Management. The internal billing systems used by the Fleet Management Unit hold details of every
vehicle, the cost and the ‘owner’ (Organisational Unit Code - OUC) of the vehicle. This system, therefore, enables internal
charges to be generated to the other BT units. The internal charges are all at cost.
Apportionment
AG101 contains the Balance Sheet and Profit and Loss amounts of the Fleet Management Unit within BT Group. This unit
provides motor vehicles and associated Products and services to employees within BT.
This group recovers its cost by charging other BT units for its activities. It does this by maintaining records of the units
'owning' the expenditure and can recover the costs using internal transactions. It therefore follows that the activities of
the units being charged, weighted by the amounts each are being charged by Fleet Management, should provide an
appropriate base to apply to the costs that have been allocated to AG101.
This result is produced automatically by the Regulatory Accounting system using the apportionment of the ‘transfer out’
(F8 code 28xxxx) charges in Motor Transport and apportioning on the same basis. This is appropriate as the underlying
recharges are based on the activities of the units receiving the charges.
Data Source/s
The source data is Aspire, at P12, and is based upon the relevant variable cost transfer F8 codes.
See Appendix E for Key Destinations
201
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
AG105
Description
Group Property
Description
Group Property (Property Partners) within BT Group controls all aspects of BT’s Land and Buildings portfolio. Working
with the business units, Property Partners ensures that each unit obtains best value property solutions and services and
has a fully developed property strategy and plan that supports their business strategy. Property Partners also manages
the supply of all property and facilities in accordance with the requirements of BT. Property Partners also hold, on behalf
of BT Group, all interests in land and property including leases and licences and manages all property and related projects
on behalf of the Lines of Business and Group, including appointing and instructing external property and construction
consultants. This group recovers its cost by charging other BT units for its activities. It does this by maintaining records
of the units ‘owning’ the expenditure and can recover the costs using internal transactions.
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose
similar underlying nature means they have the same apportionment driver. Therefore instead of creating individual
apportionment bases for each F8 code, they can be grouped together and apportioned using the one methodology.
It therefore follows that since the activity of this group relates to the provision of land and building services to the whole
of BT, F8 codes which directly relate to this activity should be apportioned directly to an IAG. This base performs this
process by creating a direct allocation to AG105 for these F8 codes.
Apportionment Summary
The apportionment of Group Property costs is made using an analysis of the activity of units receiving the transfer charge
from Group Property. There is an internal billing system that is used by Group Property that holds details of all properties
that are used by BT, their occupation costs, other facilities management costs and the Organisational Unit Codes (OUCs)
that are using these assets/facilities. This system enables internal charges to be generated to other BT units. The transfer
charges are cost based and are therefore non-discriminatory.
Apportionment
AG105 contains the Balance Sheet and Profit and Loss amounts of the Group Property Unit within BT Group. This group
recovers its costs by charging the BT units that it supports. It does this by maintaining records of the units 'owning' the
expenditure and then recovers its costs by charging these units using internal transactions. It therefore follows that the
activities of the units being charged, weighted by the amounts each are being charged by Group Property, should
provide an appropriate base to apply to the costs that have been allocated to AG105.
This result is produced automatically by the regulatory accounting system using the apportionment of the ‘transfer out’
(F8 code 28xxxx) charges in Group Property and apportioning on the same basis. This is appropriate as the underlying
recharges are based on the activities of the unit receiving the charge.
Data Source/s
The source data is Aspire, at P12, and is based upon the relevant variable cost transfer F8 codes.
See Appendix E for Key Destinations
202
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
AG106
Description
Facilities Management
Description
Facilities Management (within BT Group) controls all aspects of maintenance, waste management, supply of furniture,
cleaning, day to day facilities management, day to day office services, building management services, energy and
environmental management for all BT’s properties. This group recovers its cost by charging other BT units for its
activities. It does this by maintaining records of the units 'owning' the expenditure and can recover the costs using
internal transactions.
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and balance sheet amounts whose
similar underlying nature means they have the same apportionment driver. Therefore, instead of creating individual
apportionment bases for each F8 code, they can be grouped together and apportioned using the one methodology.
The activity of this activity group relates to the provision of facilities management services to the whole of BT. F8 codes
which directly relate to this activity are apportioned directly to this IAG. This base performs this process by creating a
direct allocation to AG106 for these F8 codes.
Apportionment Summary
The apportionment of Facilities Management costs is made using an analysis of activity of units receiving a transfer
charge from Facilities Management. An internal billing system used by Group Property holds details of all properties used
by BT, their occupation costs, other facilities management costs and the Organisational Unit Codes (OUCs) that are using
these assets/facilities. This system enables internal charges to be generated to other BT units. The internal charges are
all at cost.
Apportionment
AG106 contains the Balance Sheet and Profit and Loss amounts of Facilities Management within BT Group. This result is
produced automatically by the Regulatory Accounting system using the apportionment of the ‘transfer out’ (F8 code
28xxxx) charges in Facilities Management and apportioning on the same basis. This is appropriate as the underlying
recharges are based on the activities of the units receiving the charge.
Data Source/s
The source data is Aspire, at P12, and is based upon the relevant variable cost transfer F8 codes.
See Appendix E for Key Destinations
203
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
AG112
Description
Corporate Costs
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose
similar underlying nature means they have the same apportionment driver. Instead of creating individual apportionment
bases for each F8 code, they can be grouped together and apportioned using the one methodology.
IAG AG112 is used to apportion head office type Profit and Loss (P&L) and Balance Sheet values such as the Chairman’s
office and the Group secretariat. F8 codes which directly relate to these activities are allocated to this IAG.
Apportionment Summary
Based on salary costs and return on assets.
Apportionment
The costs allocated to AG112 relate to head office type expenses e.g. the Chairman’s office and the Group secretariat.
The purpose of these head office activities is generally seen as being two-fold:
•
•
Management of the employees within the company.
Management of the assets of the company to create a return.
The base to apportion these costs must reflect these activities if it is to reflect cost causality.
The ASPIRE system is given instruction to take the following costs to generate an apportionment allocation:
•
•
Salary expenses for the whole of BT (current account).
Net book value of assets for the whole of BT.
The AG112 base draws on the result of the previously attributed pay costs within the ASPIRE system following the base
reference and Plant Group (PG) apportionment stages.
The ‘return on assets’ percentage is then applied to the net book value of each asset class identified by the Regulatory
Accounting system. This percentage is determined by Ofcom. This is applied to ensure that the driver reflects the
corporate activities of ‘managing the assets of the company to create a return’.
The base excludes Non Core products in the driver as these are overseas activities and the AG112 costs are being
attributed to Core activities.
By weighting the previously attributed pay costs together with the Net book asset values (taking into account the fact
that the asset amounts have already had the return on assets and investments percentages applied to them); an
apportionment base for AG112 can be derived. This is illustrated in the diagram below:
204
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
This apportionment base can then be applied to the amounts contained within AG112:
Data Source/s
Aspire.
See Appendix E for Key Destinations
205
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
AG135
Description
Access Duct
Description
An Intermediate Activity Group (IAG) is a collection pot for revenue, expenditure and Balance Sheet amounts whose
similar underlying nature means they have the same apportionment driver. Instead of creating individual apportionment
bases for each F8 code, they can be grouped together and apportioned using the one methodology.
The amounts, apportioned to AG135, are the Balance Sheet items (i.e. gross book value and accumulated depreciation
etc) and Profit and Loss items (i.e. depreciation etc) for Access Duct.
Methodology
Access duct is apportioned to four Plant Groups (PGs):
•
•
•
•
PG111C (Local Lines Fibre Cable Capital).
PG117C (E Side Copper Cable).
PG118C (D Side Copper Cable).
PG130A (Local Loop Unbundling Tie Cables).
The Absolute Duct Study determines the split between Access Duct used for fibre and Access Duct used for copper cable
when the survey was carried out in 1997. This base is then updated based on the split of 1997 Gross Replacement Cost
(GRC) for Access Duct plus fibre and copper Access Duct spend by Class of Work (CoW) since 1997. As PG111C is the only
PG that relates to fibre, the proportion determined from the Absolute Duct Study for fibre is used to create the
apportionment percentage to this PG. The apportionment to the other three PGs is determined using the depreciation
charges for:
•
•
•
E Side copper cable.
D Side copper cable.
Local Loop Unbundling cable.
By totalling the depreciation for a period representative of the full year for these three items, apportionment
percentages are created for the related PGs. These historical cost figures are obtained from the Life of Plant (LoP) list.
The LoP list sources its information from the fixed asset register.
Data Source/s
Absolute Duct Study (carried out in 1997).
Life of Plant (LoP) list.
Central Information Database (CID).
See Appendix E for Key Destinations
AG148
Backhaul Duct
Description
An intermediate activity group (AG) is a collection pot for revenue, expenditure and balance sheet amounts whose
similar underlying nature means they have the same apportionment driver. Instead of creating individual apportionment
bases for each F8 code, they can be grouped together and apportioned using the one methodology.
The amounts, apportioned to AG148, are the balance sheet items (i.e. gross book value and accumulated depreciation
etc) and profit and loss items (i.e. depreciation etc) for Backhaul Duct.
Backhaul Duct is the national network of underground bores and ducting between exchange nodes that are considered
part of the Openreach division’s assets and is used to house optical fibre and metallic communications transmission
cables.
Methodology
AG148 is allocated 100% to PG170B Openreach Backhaul Fibre.
Data Sources
No data sources required. Allocates 100% to PG170B.
See Appendix E for Key Destinations
206
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
AG149
Description
Inner Core Duct
Description
An intermediate activity group (AG) is a collection pot for revenue, expenditure and balance sheet amounts whose
similar underlying nature means they have the same apportionment driver. Instead of creating individual apportionment
bases for each F8 code, they can be grouped together and apportioned using the one methodology.
The amounts, apportioned to AG149, are the balance sheet items (i.e. gross book value and accumulated depreciation
etc) and profit and loss items (i.e. depreciation etc) for Inner Core Duct.
Inner Core Duct is the national network of underground bores and ducting between exchange nodes (excluding
Openreach assets) and is used to house optical fibre and metallic communications transmission cables.
Methodology
AG149 is allocated 100% to PG350N Wholesale Inner Core Fibre.
Data Sources
No data sources required. Allocates 100% to PG350N.
See Appendix E for Key Destinations
AG161
Accommodation Plant Network (Wholesale): Current
This is an Intermediate Activity Group (IAG) established in 0607 through Accounting Separation Improvement Group
(ASIG) paper RA06-275 OpenReach ASPIRE Structural Changes. The Wholesale only AG16x series now part replaces the
previous common AG12x version, with the Openreach share of same now being pointed directly at the service level as
described in the ASIG paper RA07-297 Rationalisation of Openreach Activity Groups.
Description
An IAG is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar underlying nature means
they have the same apportionment driver. Instead of creating individual apportionment bases for each F8 code, they
can be grouped together and apportioned using the one methodology.
IAG AG161 acts as the collection pot for the current account related overhead costs of maintaining systems providing
heating, ventilation, air conditioning and general environmental control in BT’s Network Operational Buildings (i.e.
non-office buildings such as property occupied by local exchanges). The F8 codes directly relating to this activity are
allocated to this IAG.
Methodology
Based on the overhead proportions from the CoW ‘P’ with calculations weighted by relevant maintenance data (the
hours booked against CoW ‘F2AN’ for ‘A’ OUCs only in this case).
This base apportions AG161 costs to Products and Plant Groups (PGs) that relate to the environmental systems
supported. This base is created using a two-stage process.
207
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Step 1 – Create percentages based on actual maintenance hours. This first step is completed to ensure that the resulting
base reflects causality. Information is obtained from the Central Information Database (CID) system on maintenance
hours completed on the environmental systems during the entire year.
Step 2 – Create apportionments to Products and PGs for amounts within AG161 AG163 apportions the maintenance costs
on equipment that provides power to BT’s Network Operational Buildings. As the expenses contained in AG161 and
AG163 are both related to the maintenance of equipment that supports the Network Operational Buildings, AG163 can
be used as the starting point for creating the apportionment base for AG161. AG163’s apportionment base is created by
weighting the Base Reference DTNELSP/N with standard maintenance data for different types of power plant equipment.
The different types of power equipment are as follows:
•
•
•
•
•
•
•
•
AXE10.
Internet protocol (IP).
Transmission.
Next Generation Switch (NGS).
Intelligent network (IN).
Power equipment racks for switches (PER).
Power Plants (PP).
Overheads.
The percentages used from the AG163 calculations to create the apportionment base for AG161 are the percentages
derived in the ‘Overheads’ category. These percentages are weighted by the total maintenance hours from step 1 and the
resulting percentages re-weighted up to 100%.
Data Source/s
Most recent versions of the following:
The Specialised Electricity base – DTNELSP/N.
PIRM (Power Inventory Routine Manager) download from PIRM System Support.
Life of Plant (LoP) List.
NJR man hours from CID.
See Appendix E for Key Destinations
AG162
Accommodation Plant Network (Wholesale): Capital
This is an Intermediate Activity Group (IAG) established in 0607 through Accounting Separation Improvement Group
(ASIG) Paper RA06-275 OpenReach ASPIRE Structural Changes. The Wholesale only AG16x series now part replaces the
previous common AG12x version, with the Openreach share of same now being pointed directly at the service level as
described in the ASIG paper RA07-297 Rationalisation of Openreach Activity Groups.
Description
An IAG is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar underlying nature means
they have the same apportionment driver. Instead of creating individual apportionment bases for each F8 code, they can
be grouped together and apportioned using the one methodology.
IAG AG162 acts as the collection pot for the capital related overheads of equipment used for heating, ventilation, air
conditioning and general environmental systems in BT’s Network Operational Buildings (i.e. non-office buildings such
as property occupied by local exchanges).
The F8 codes directly relating to this activity are allocated to this IAG.
Methodology
AG162 apportions overheads for certain types of capital related equipment used in BT Network Operational Buildings.
This includes plant used for heating, ventilation, air conditioning and other general environmental systems in these
buildings. This base is created using percentages derived in the methodology for the apportionment of AG163. AG163
apportions the maintenance costs on equipment that provides power to BT’s Network Operational Buildings. AG163’s
apportionment base is created by weighting the Base Reference for DTNELSP/N with standard maintenance data for
different types of power plant equipment. The different types of power equipment are as follows:
208
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
•
•
•
•
•
•
•
•
AXE10.
Internet protocol (IP).
Transmission.
Next Generation Switch (NGS).
Intelligent network (IN).
Power equipment racks for switches (PER).
Power Plants (PP).
Overheads.
The percentages used from the AG163 calculations to create the apportionment base for AG162 are the percentages
derived in the ‘Overheads’ power equipment category. The percentages obtained must be re-weighted up to 100%.
Data Source/s
Most recent versions of the following:
The Specialised Electricity base – DTNELSP/N.
PIRM (Power Inventory Routine Manager) download from PIRM System Support.
Life of Plant (LoP) List.
NJR man hours from the Central Information Database (CID).
See Appendix E for Key Destinations
AG163
Power (Wholesale): Current
This is an Intermediate Activity Group (IAG) established in 0607 through Accounting Separation Improvement Group
(ASIG) paper RA06-275 OpenReach ASPIRE Structural Changes. The Wholesale only AG16x series now part replaces the
previous common AG12x version, with the Openreach share of same now being pointed directly at the service level as
described in the ASIG paper RA07-297 Rationalisation of Openreach Activity Groups.
Description
An IAG is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar underlying nature means
they have the same apportionment driver. Instead of creating individual apportionment bases for each F8 code, they can
be grouped together and apportioned using the one methodology.
IAG AG163 acts as the collection pot for the maintenance costs on equipment providing power to BT’s Network
Operational Buildings (i.e. non-office buildings such as property occupied by local exchanges). F8 codes directly relating
to this activity are allocated to this IAG.
Methodology
The apportionment of this IAG is based on electricity consumption weighted by power plant volumes and relevant
maintenance data. This base is created using a two stage process.
Step 1 – Create percentages based on standard maintenance hours::
This first step is completed to ensure that the resulting base reflects causality (i.e. an apportionment base that reflects
the varying levels of maintenance required for different categories of equipment covered by this methodology). This is
achieved as follows.
A listing of volumes of power plant items is obtained from the Power Inventory Routines Management (PIRM) database.
These volumes are then aggregated into the following categories of power plant equipment:
•
•
•
•
•
•
•
AXE10.
Internet protocol (IP).
Transmission.
Next Generation Switch (NGS).
Intelligent network (IN).
Power equipment racks for switches (PER).
Power Plants (PP).
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Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Overheads.
Total volume is equated for each category and dividing each category total creates apportionment by the total volume.
Next, standard routine maintenance data from PIRM is applied. This data shows the standard time taken to perform
maintenance on the different classes of equipment listed above. This information is used to weight the percentages
derived above in order to ensure they reflect the nature of the underlying amounts being apportioned.
Step 2 – Create apportionments to Products and Plant Groups (PGs) for amounts within AG163.
The Products and PGs that this base apportions to are the same as those in Base Reference DTNELSP/N that apportions
the electricity expense incurred for the supply of electricity to BT’s Network Operational Buildings. In order to ensure that
this base reflects causality of the amounts being apportioned, the apportionment percentages in base reference
DTNELSPNL need to be weighted by the standard maintenance apportionment’s calculated in step 1. This is completed
by breaking the DTNELSP Base Reference percentages to plant groups into power equipment categories and then
applying the appropriate weightings calculated in step 1 to them. The results are then re-based to 100%.
Data Source/s
Most recent versions of the following:
The Specialised Electricity base – DTNELSP/N.
PIRM (Power Inventory Routine Manager) download from PIRM System Support.
Life of Plant (LoP) List.
NJR man hours from CID.
See Appendix E for Key Destinations
AG164
Title Power (Wholesale): Capital
This is an Intermediate Activity Group (IAG) established in 0607 through Accounting Separation Improvement Group
(ASIG) paper RA06-275 OpenReach ASPIRE Structural Changes. The Wholesale only AG16x series now part replaces the
previous common AG12x version, with the Openreach share of same now being pointed directly at the service level as
described in the ASIG paper RA07-297 Rationalisation of Openreach Activity Groups.
Description
An IAG is a collection pot for revenue, expenditure and Balance Sheet amounts whose similar underlying nature means
they have the same apportionment driver. Instead of creating individual apportionment bases for each F8 code, they can
be grouped together and apportioned using the one methodology.
IAG AG164 acts as the collection pot for the balance sheet amounts and associated depreciation charges of equipment
providing power to BT’s Network Operational Buildings (i.e. non-office buildings such as property occupied by local
exchanges). F8 codes directly relating to this activity are allocated to this IAG.
Methodology
IAG AG164 acts as the collection pot for the Balance Sheet values and associated depreciation charges of equipment that
provide power to BT’s Network Operational Buildings (i.e. non-office buildings such as property occupied by local
exchanges).
This base is created using a three stage process.
Step 1 – Split current year depreciation figures into ‘transmission’ and ‘common’ categories:
This first step is completed to ensure that the resulting base reflects causality. Information is obtained from the latest
available Life of Plant (LoP) list on assets that provide power to the Network Operational Buildings (Class of Work (CoW)
Telephone Plant Power Construction (TPC)). The LoP list details the historical cost depreciation for the year and its
information is sourced from the fixed asset register.
The information obtained on this asset class is split between the following two categories
Transmission.
Transmission represents the power equipment used to support the transmission equipment in BT’s network.
Common.
Common represents all other equipment in this asset class. Asset policy codes are used to determine this split. Total
depreciation for the year to date is calculated for both of the asset categories. The latest available LoP List is used. The
category totals are then divided by the total LoP List depreciation to derive apportionments between the two categories.
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Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Step 2 – Create apportionments to Products and Plant Groups (PGs):
AG163 apportions the costs incurred in maintaining equipment that provides power to BT’s Network Operational
Buildings. As the amounts contained in AG163 and AG164 are both related to the equipment that provides power to the
Network Operational Buildings, AG163 can be used as the starting point for creating the apportionment base for AG164.
The base for AG163 was created by taking the apportionment base for DTNELSP/N and grouping the apportionment into
the following categories of power equipment:
•
•
•
•
•
•
•
•
AXE10.
Internet protocol (IP).
Transmission.
Next Generation Switch (NGS).
Intelligent network (IN).
Power equipment racks for switches (PER).
Power Plants (PP).
Overheads.
These groupings can be identified from the PG descriptions in the DTNELSP base. These percentages are then weighted
by the standard maintenance hours on each category of power equipment. In step 1 of calculating the base for AG163,
we split the depreciation of power equipment into two categories:
•
•
Transmission.
Common.
The apportionment methodologies of the Transmission and DTNELSP base categories from the AG163 apportionment
base can be used to develop the apportionment base for AG164. From this process, the Products and PGs that are being
apportioned to and the percentage of values going to each can be identified. These percentages are weighted by the
‘transmission’ and ‘common’ percentages calculated in step 1 to establish causality within the base for AG164.
Step 3 – Weight the results from step 2 to ensure base equates to 100%.
Data Source/s
Most recent versions of the following:
The Specialised Electricity base – DTNELSP/N.
PIRM (Power Inventory Routine Manager) download from PIRM System Support.
Life of Plant List (LoP).
NJR man hours from CID.
See Appendix E for Key Destinations
211
Section 5 Activity Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
212
Description
Detailed Attribution Methods (DAM) – Section 6 Plant Group
6 Plant Group Dictionary
Base Ref
PG001X
Description
3rd party Depreciation adjustment debit
Description
This Plant Group (PG) provides a debit adjustment for Equipment Depreciation that has been identified from the
credit Plant Group (PG001Y).
The PG contains bandwidth specific depreciation that is onward allocated to specific equipment services.
Methodology
Equipment costs within a number of services has been removed based on a cost = revenue basis and extracting the
depreciation based on the asset life of the equipment. These costs are then ring fenced and allocated to specific
Equipment Depreciation cost pools.
Data Source/s
ASPIRE, P12 LoPlist.
See Appendix E for Component Destinations
PG001Y
3rd party Depreciation adjustment credit
Description
This Plant Group (PG) provides a credit adjustment from a number of Traditional Interface symmetric broadband
origination (TISBO) services whereby Equipment Depreciation that has been recovered under rental services, has
been extracted and moved to specific equipment Plant Group.
Methodology
Equipment costs within a number of services has been removed based on a cost = revenue basis and extracting the
depreciation based on the asset life of the equipment. These costs are then ring fenced and allocated to specific
Equipment Depreciation cost pools.
Data Source/s
ASPIRE, P12 LoPlist.
See Appendix E for Component Destinations
PG002X
Traditional Interface symmetric broadband origination (TISBO( Excess Construction adjustment debit
Description
This Plant Group (PG) provides a debit adjustment from a numberof Traditional Interface symmetric broadband
origination (TISBO) services whereby Excess Construction depreciation that has been recovered under rental
services has been extracted and moved to a specific Excess Construction Plant Group.
Methodology
Excess Construction costs, within a number of services, has been removed based on the excess construction revenue
that was reported in the 2008/09 regulatory accounts and the ‘estimated’ margin that BT makes, thus obtaining a
total cost for both Traditional Interface symmetric broadband origination (TISBO) and Alternative Interface
Symmetric Broadband Origination (AISBO) markets.
Data Source/s
ASPIRE.
See Appendix E for Component Destinations
PG002Y
Traditional Interface symmetric broadband origination (TISBO) Excess Construction adjustment credit
Description
This Plant Group (PG) provides a credit adjustment from a number of Traditional Interface symmetric broadband
origination (TISBO) services whereby Excess Construction depreciation that has been recovered under rental
services has been extracted and moved to a specific Excess Construction Plant Group.
213
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction
revenue that was reported in the 2008/09 regulatory accounts and the ‘estimated’ margin that BT makes, thus
obtaining a total cost for both Traditional Interface symmetric broadband origination (TISBO) and Alternative
Interface Symmetric Broadband Origination (AISBO) markets.
Data Source/s
ASPIRE.
See Appendix E for Component Destinations
PG003X
Alternative Interface Symmetric Broadband Origination (AISBO) Excess Construction adjustment debit
Description
This Plant Group (PG) provides a debit adjustment from a number of Alternative Interface Symmetric Broadband
Origination (AISBO) services whereby Excess Construction depreciation that has been recovered under rental
services, has been extracted and moved to a specific Excess Construction Plant Group.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction
revenue that was reported in the 2008/09 regulatory accounts and the ‘estimated’ margin that BT makes, thus
obtaining a total cost for both Traditional Interface symmetric broadband origination (TISBO) and Alternative
Interface Symmetric Broadband Origination (AISBO) markets.
Data Source/s
ASPIRE.
See Appendix E for Component Destinations
PG003Y
Alternative Interface Symmetric Broadband Origination (AISBO) Excess Construction adjustment credit
Description
This Plant Group (PG) provides a credit adjustment, from a number of Alternative Interface Symmetric Broadband
Origination (AISBO) services, whereby Excess Construction depreciation that has been recovered under rental
services has been extracted and moved to a specific Excess Construction Plant Group.
Methodology
Excess Construction costs, within a number of services, has been removed, based on the excess construction
revenue that was reported in the 2008/09 regulatory accounts and the ‘estimated’ margin that BT makes, thus
obtaining a total cost for both Traditional Interface symmetric broadband origination (TISBO) and Alternative
Interface Symmetric Broadband Origination (AISBO) markets.
Data Source/s
ASPIRE.
See Appendix E for Component Destinations
PG004X
POH Depreciation LE adjustment debit
Description
This Plant Group (PG) provides a debit adjustment for POH Equipment Depreciation that has been identified from
the credit Plant Group PG004Y. The PG contains bandwidth specific depreciation that is onward allocated to specific
POH equipment services.
Methodology
Equipment costs, within a number of services, has been removed based on a cost = revenue basis and extracting the
depreciation based on the asset life of the equipment. These costs are then ring fenced and allocated to specific
Equipment Depreciation cost pools.
Data Source/s
ASPIRE, LoPlist.
See Appendix E for Component Destinations
214
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG004Y
POH Depreciation LE adjustment credit
Description
This Plant Group (PG) provides a credit adjustment for the specific POH equipment that is contained in a number of
Traditional Interface symmetric broadband origination (TISBO) services. These costs have been extracted to a
specific POH equipment PG.
Methodology
Equipment costs, within a number of services, has been removed based on a cost = revenue basis and extracting the
depreciation based on the asset life of the equipment. These costs are then ring fenced and allocated to specific
Equipment Depreciation cost pools.
Data Source/s
ASPIRE, LoPlist.
See Appendix E for Component Destinations
PG111C
Local Lines Fibre Cable Capital
Description
This Plant Group (PG) captures the costs associated with the provision, installation and recovery of fibre cable in the
access network i.e. the network between the local exchange and customer’s premises (see diagram) or fibre
installed up to street multiplexers.
This includes costs associated with clearing existing duct (to allow cable to be installed), jointing distribution and
spine cable (splicing). Specifically this PG captures costs from the following areas/functions.
•
•
•
•
•
•
•
Pay costs associated with the installation of access fibre.
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) Class of Work
(CoW).
Contract costs associated with renewal of optical fibre.
Planning costs, adding fibre to the access network.
Costs associated with installing fibre between the local exchange and a customer (direct feed) and between a
local spine fibre and a customer.
Costs associated with installing optical spine cable between the local exchange and last connection point
before local distribution fibre or street optical Multiplexors (MUX).
Depreciation costs from the following CoWs – Local Fibre Distribution Cable (LFDC) and Local Fibre Spine Cable
(LFSC).
Methodology
Apportionment to component is based on data supplied via the Core Transmission Circuit costing System (CTCS),
using circuits and bearer volumes as at Period 6. The data used from CTCS (refer to Data Source section) includes the
percentage of fibre bearer capacity used by a particular circuit (component).
CTCS provides the volumes of circuits over a bearer which is then converted into 2Mb equivalents. These are
weighted by circuit bandwidth usage of the various bearers.
Data Source/s
Circuits and Bearer Volumes from CTCS for Period 6. Management believes this period to be reflective of the full
year.
See Appendix E for Component Destinations
PG111M
Local Line Fibre Cable Current
Description
This Plant Group (PG) captures the maintenance costs associated with the local line fibre cable in the access
network i.e. between the local exchange and customer’s premises, or fibre installed up to street multiplexers. This
includes costs associated with clearing existing duct (to allow cable to be installed), jointing distribution and spine
cable (splicing). This PG captures costs from the following areas/functions:
215
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
•
•
•
•
•
•
•
Pay costs associated with the installation of access fibre.
Indirect costs of optical fibre replacement from the Local optical Fibre Cable Renewal (LFCR) Class of Work
(CoW).
Contract costs associated with renewal of optical fibre.
Planning costs, adding fibre to the access network.
Costs associated with installing fibre between the local exchange and a customer (direct feed) and between a
local spine fibre and a customer.
Costs associated with installing optical spine cable between the local exchange and last connection point
before local distribution fibre or street optical Multiplexors (MUX).
Depreciation costs from the following CoWs – Local Fibre Distribution Cable (LFDC) and Local Fibre Spine Cable
(LFSC).
Methodology
The costs are attributed on the same basis as the depreciation costs of this equipment (see PG111C Local Lines Fibre
Cable Capital); on the basis that maintenance activity is carried out to support the performance of the cable and can
therefore be regarded as an overhead of the capital/depreciation expenditure incurred.
Data Source/s
Circuits and Bearer Volumes etc from CTCS at Period 6. Management believes this period to be reflective of the full
year.
See Appendix E for Component Destinations
PG114L
Integrated Services Digital Network (ISDN30) Connections
Description
This Plant Group (PG) captures the cost associated with the provision, cessation and rearrangement of Integrated
Services Digital Network (ISDN30) circuits.
Types of costs include pay, stores issued and general equipment.
Types of work carried out includes testing, line up of circuits, updating records, labelling equipment for onward
connection and connecting transmission equipment at the specified bit rate. These costs can be identified directly
from the primary General Ledger (GL) posting, the Class of Work (CoW).
Methodology
Allocates100% to the ISDN30 Connection Component CL163.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG115C
Local Lines Access Radio Capital
Description
This Plant Group (PG) captures the costs associated with the construction, rearrangement and renewal of access
radio systems. These systems are used to deliver MegaStream and other non voice services from the local exchange
to customers’ premises.
Types of cost include depreciation, stores and pay costs.
Equipment used in the provision of this equipment includes.
•
•
•
•
•
Feeder cable between BT operational buildings and adjacent antenna.
Hand held mobile systems used in connection with the above work.
Testing equipment and line-of-sight surveying equipment.
Masts, aerials, transceivers and ancillary indoor and outdoor equipment for point--point and point to multipoint radio systems.
Initial provision of spare plant.
Methodology
The Core Transmission Circuit costing System (CTCS) system is used to obtain circuit numbers from BT main
systems. Period 6 data is used as this is representative of the full year.
216
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This gives a number of each type of circuit by bandwidths which are converted into 2Mb equivalents, as 2Mb is the
smallest unit. These Circuits and Bearers are weighted by the cost of the bearer system used to deliver the circuit.
The bearer weighting is based on bearer cost.
Data Source/s
CTCS circuit numbers as at Period 6. Management believes this period to be reflective of the full year.
See Appendix E for Component Destinations
PG115M
Local Lines Access Radio Current
Description
This Plant Group (PG) captures the maintenance costs of the local line access radio.
Types of cost include non-ETG pay and stores.
Equipment used in the provision of this service includes:
•
•
•
•
•
Feeder cable between BT operational building and adjacent antenna.
Hand held mobile systems used in connection with the above work.
Testing equipment and line-of-sight surveying equipment.
Masts, aerials, transceivers and ancillary indoor and outdoor equipment for point-to-point and point to multipoint radio systems.
Initial provision of spare plant.
Methodology
The costs are attributed on the same basis as the depreciation costs of this equipment (see PG115C Local Lines
Access Radio Capital) on the basis that maintenance activity is carried out to support the performance of the radio
equipment and can therefore be regarded as an overhead of the capital/depreciation expenditure incurred.
Data Source/s
Core Transmission Circuit costing System (CTCS) circuit numbers at Period 6. Management believes this period to
be reflective of the full year.
See Appendix E for Component Destinations
PG117C
E Side Copper Capital
Description
This Plant Group (PG) captures the capital costs associated with E Side Copper. The Access Network for Regulatory
Accounting purposes is split between exchange side (E side) and distribution side (D side) copper cable. Types of
cost include depreciation, stores and pay costs.
E side cable is the cable that links the local exchange to the primary cross connection point. D side cable is the cable
that links the primary cross connection point to the Distribution Point (DP).
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and the Core Transmission Circuit
costing System (CTCS) and weighted by the average number of pairs used to provide the circuit. Source Copper
Wideband Serving Section (CWSS) and Access Management Information System (AMIS) and pair costs. Source Local Line Costing Study (LLCS).
Data Source/s
Period 6 data from Powerhouse, CTCS, CWSS, AMIS and LLCS. Management believe this period to be reflective of
the full year.
See Appendix E for Component Destinations
217
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG117M
E Side Copper Current
Description
This Plant Group (PG) captures the current costs associated with E Side Copper. The Access Network for Regulatory
Accounting purposes is split between exchange side (E side) and distribution side (D side) copper cable. E side cable
is the cable that links the local exchange to the primary cross connection point. D side cable is the cable that links
the primary cross connection point to the Distribution Point (DP).
Types of cost include non-ETG pay and stores.
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and Core Transmission Circuit costing
System (CTCS) and weighted by fault rate and Calculated using total faults divided by volumes.
Data Source/s
Period 6 data from Powerhouse, CTCS Management believe this period to be reflective of the full year.
See Appendix E for Component Destinations
PG118C
D Side Copper Capital
Description
This Plant Group (PG) captures the capital costs associated with D Side Copper. Types of cost include depreciation,
stores and pay costs.
The Access Network for Regulatory Accounting purposes is split between exchange side (E side) and distribution
side (D side) copper cable. E side cable links the local exchange to the primary cross connection point. D side cable
links the primary cross connection point to the Distribution Point (DP).
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and Core Transmission Circuit costing
System (CTCS) and weighted by the average number of pairs used to provide the circuit - source Copper Wideband
Serving Section (CWSS) and Access Management Information System (AMIS) and pair cost - source - Local Line
Costing Study (LLCS).
Data Source/s
Period 6 data from Powerhouse, CTCS, CWSS, AMIS and LLCS. Management believe this period to be reflective of
the full year.
See Appendix E for Component Destinations
PG118M
D Side Copper Current
Description
This Plant Group (PG) captures the current costs associated with D Side Copper. The Access Network for Regulatory
Accounting purposes is split between exchange side (E side) and distribution side (D side) copper cable. E side cable
is the cable that links the local exchange to the primary cross connection point. D side cable is the cable that links
the primary cross connection point to the Distribution Point (DP).
Types of cost include non-ETG pay and stores.
Methodology
Apportions to components based on circuit volumes sourced by Powerhouse and Core Transmission Circuit costing
System (CTCS) and weighted by fault rate, And Calculated using total faults divided by volumes.
Data Source/s
Period 6 data from Powerhouse, CTCS. Management believe this period to be reflective of the full year.
See Appendix E for Component Destinations
218
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG119A
Telephony Over Passive Optical Network (TPON)
Description
This Plant Group (PG) captures costs associated with Telephony Over Passive Optical Network (TPON).
TPON is a technology which uses fibre from the exchange to the street cabinet and copper from the cabinet to the
customer. It is now in the process of being removed as it does not support broadband.
Types of cost include pay (from maintenance of exchange electronics and customer sited electronics), planning and
depreciation costs from the provision, rearrangement, replacement and renewal of both exchange service modules
and customer sited modules.
TPON is used to deliver the following types of service:
•
•
•
•
•
•
Analogue Telephony Public Switched Telephone Network (PSTN).
Direct exchange line exchanges.
Direct Dialling In (DDI) Private Branch Exchange (PBX).
Integrated Services Digital Network 2 (ISDN2).
Managed 2048 KBits/s (MegaStream, Integrated Services Digital Network (ISDN30).
Featureline.
Methodology
Allocates 100% to the D Site Copper Component CL173.
Data Source/s
Telephony over Passive Optical Network (TPON) Element Manager database output is provided by the narrowband
team for Period 6. Management believes this period to be reflective of the full year.
See Appendix E for Component Destinations
PG120A
Payphone Line Cards
Description
This Plant Group (PG) captures the costs associated with the maintenance of the Payphone line cards.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Public Payphones Access Component CL191.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG121M
Business Public Switched Telephone Network (PSTN) Maintenance
Description
This Plant Group (PG) captures the costs associated with the maintenance of Business Public Switched Telephone
Network (PSTN), from the distribution point to the customer's premises.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the Business Public Switched Telephone Network (PSTN) drop Maintenance Component CL179.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG122M
Residential Public Switched Telephone Network (PSTN) Maintenance
Description
This Plant Group (PG) captures costs associated with the maintenance of Residential Public Switched Telephone
Network (PSTN), from the distribution point to the customer’s premises. Types of cost include stores and pay costs.
219
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The distribution point is the point near to a customer’s premises where the main cable from a Primary Cross
connection point (PCP) is split in order to provide service at one or more localised premises. It could be at the top of
telegraph pole, under a walkway or on the side of a building etc.
PCP boxes are the green metal cabinets you see by the side of the road. They are used by BT and the Cable
companies to link their customer's telephone lines to the local exchange.
Methodology
Allocates 100% to the Residential Public Switched Telephone Network (PSTN) drop Maintenance Component
CL180.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG123M
Integrated Services Digital Network (ISDN2)/Highway maintenance
Description
This Plant Group (PG) captures the Profit and Loss (P&L) store and pay costs associated with the Maintenance of
ISDN/Highway Maintenance, from the distribution point to the customer's premises.
ISDN2 provides the customer with the equivalent of two digital telephone lines (known as channels) and is delivered
over a copper pair in the public network. ISDN works at high speeds with excellent clarity for speech and data
applications.
Methodology
Allocated 100%to the Integrated Services Digital Network (ISDN)/Highway drop Maintenance Component CL181.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG124A
Integrated Services Digital Network 30 Capital/Maintenance (ISDN30)
Description
This Plant Group (PG) captures the Capital costs of Integrated Services Digital Network 30 (ISDN30).
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100%, to the Integrated Services Digital Network 30 (ISDN30) Line Cards Component CL190.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG127A
Public Switched Telephone Network (PSTN) Line Cards
Description
This Plant Group (PG) captures Profit and Loss (e.g. Depreciation, ETG and Non ETG Pay, and Non Pay) and Balance
Sheet costs associated with the provision of Public Switched Telephone Network (PSTN) line cards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Methodology
Allocated 100% to the Public Switched Telephone Network (PSTN) Line Cards Component CL183.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
220
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG128A
Integrated Services Digital Network (ISDN2) Line Cards
Description
This Plant Group (PG) captures the capital costs associated with the Integrated Services Digital Network 2 (ISDN2)
line cards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100% to the Integrated Services Digital Network (ISDN2) Line Cards Component CL184.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG129A
Pair Gain
Description
This Plant Group (PG) contains the cost of provisioning, rearranging and recovering pair gain electronics in the
access network.
Pair gain is a piece of equipment which provides to Public Switched Telephone Network (PSTN) lines over one pair
of copper wires.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100%, to the Pair Gain Component CL185.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG130A
Local Loop Unbundling (LLU) Tie Cables
Description
This Plant Group (PG) captures costs of Tie cables for Local Loop Unbundling (LLU). These costs are assigned to the
relevant LLU.
Types of cost include depreciation, stores and pay costs.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the
opening up of BT's copper network to Other Communication Providers (OCPs). This is delivered by the following
two methods:
Co-location/Co-Mingling
BT provides a room in an exchange for an OCP and their equipment and arranges for connection of the room to the
BT Main Distribution Frame (MDF) via a tie cable. The OCP has to order 'ties' in items of 100 pair cables.
Co Mingling is the provision of floor space without any walls separating it from BT equipment. In this instance the
OCP connects the Digital Subscriber Line Access Multiplexer (DSLAMS) in the space provided to their equipment via
a BT egress circuit/BT Retail circuit.
DSLAMS is a device which takes number of Asymmetric Digital Subscriber Line (ADSL) subscriber lines and
concentrates these for onward connection to the core network.
Distance Location
The OCP has accommodation outside the exchange. The OCP can order a BT provided cable or provide one
themselves and hand over a tail for BT to connect in the exchange onto the MDF.
Methodology
Apportions to CL133 – Local Loop Unbundling and CL170 – Internal Tie cables based on tie cable volumes
supplied by the Openreach product reporting and analysis team LLU volume report.
221
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
Local Loop Unbundling Management System (LLU MS) and Atlantis Report.
See Appendix E for Component Destinations
PG132B
Local Loop Unbundling (LLU) Hosting Rental - Openreach
Description
This Plant Group (PG) captures the cost of Local Loop Unbundling (LLU) Hosting Rental.
Hosting Rental is the rental of a site for hosting LLU equipment.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the
opening up of BT's copper network to Other Communications Provider (OCPs). This is delivered by the following
two methods:
Co-Location/Co-Mingling
BT provides a room in an exchange for an OCP and their equipment and arranges for connection of the room to the
BT Main Distribution Frame (MDF) via a tie cable. The OCP has to order 'ties' in units of 100 pair cables. A standard
hostel room which is shared with other LLU operators.
Co Mingling is the provision of floor space without any walls separating it from BT equipment. In this instance the
OCP connects the Digital Subscriber Line Access Multiplexer (DSLAMS) in the space provided to their equipment via
a BT egress circuit/BT Retail circuit.
DSLAMS is a device which takes number of Asymmetric Digital Subscriber Line (ADSL) subscriber lines and
concentrates these for onward connection to the core network.
Distance Location
The OCP has accommodation outside the exchange. The OCP can order a BT provided cable or provide one
themselves and hand over a tail for BT to connect in the exchange onto the MDF.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Local Loop Unbundling (LLU) Hostel Rentals component CL132.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG132N
Local Loop Unbundling (LLU) Hosting Rental - Wholesale
Description
This Plant Group (PG) captures the cost of Local Loop Unbundling (LLU) Hosting Rental.
Hosting Rental is the rental of a site for hosting LLU equipment.
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the
opening up of BT's copper network to Other Communications Provider (OCPs). This is delivered by the following
two methods:
Co-Location/Co-Mingling
BT provides a room in an exchange for an OCP and their equipment and arranges for connection of the room to the
BT Main Distribution Frame (MDF) via a tie cable. The OCP has to order 'ties' in units of 100 pair cables. A standard
hostel room which is shared with other LLU operators.
Co Mingling is the provision of floor space without any walls separating it from BT equipment. In this instance the
OCP connects the Digital Subscriber Line Access Multiplexer (DSLAMS) in the space provided to their equipment via
a BT egress circuit/BT Retail circuit.
DSLAMS is a device which takes number of Asymmetric Digital Subscriber Line (ADSL) subscriber lines and
concentrates these for onward connection to the core network.
222
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Distance Location
The OCP has accommodation outside the exchange. The OCP can order a BT provided cable or provide one
themselves and hand over a tail for BT to connect in the exchange onto the MDF.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Local Loop Unbundling (LLU) Hostel Rentals traded Component CT134.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG136A
Local Loop Unbundling (LLU) Surveys
Description
This Plant Group (PG) captures the costs of surveys for Local Loop Unbundling (LLU).
LLU enables operators, other than BT, to use the company's local loop to provide services to customers. It is the
opening up of BT's copper network to Other Communications Provider (OCPs).
Methodology
Allocated 100% to the LLU Room Build Component CL131.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG140A
Routing and Records
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance
Sheet cost of Routing and Records work for provision of Public Switched Telephone Network (PSTN)/ Integrated
Services Digital Network (ISDN) lines, Local Loop Unbundling (LLU) and Private Circuits.
Methodology
This PG is apportioned using New Supply connection line volumes from Powerhouse. The split is based upon
connection volumes which are factored by the number of channels per circuit, the number of pairs utilised per
circuit, percentage of the systems on Copper Pairs and the relative time taken to route the circuit.
Data Source/s
Powerhouse volumes for Period 12.
See Appendix E for Component Destinations
PG142A
Main Distribution Frame (MDF) Hardware Jumpering
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation, Stores) and Balance Sheet (Fixed Asset) costs
associated with Jumpering activities on the Main Distribution Frame (MDF) connecting the Exchange switch
equipment to the Exchange side (E-Side) cable.
An MDF jumper is a copper connection that provides a flexible connection between two terminal ends.
Commonly used to connect the Line side to the Exchange side of the MDF.
Methodology
The PG is allocated based on Connection volumes in the year (quarterly).
The PG exhausts to only two components at present, with the vast majority going to CL161 MDF Hardware
Jumpering. A small portion (0.14%) is allocated to CO291 OR Network Features (Internal), and this proportion was
held constant from 04/05.
223
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
Powerhouse (latest quarter) for connection volumes.
See Appendix E for Component Destinations
PG143A
Software Jumpering
Description
This Plant Group (PG) apportions the Selling General and Administration (SG & A) part of the Public to Switched
Telephone Network (PSTN) Provision Centres, where manual intervention is required due to a failure in the
automated installation process for the provision of PSTN services.
An Electronic jumper, sometimes referred to as a Software Jumper makes the connection between two termination
ends, via a remote computer terminal, or the provision of a Customer requested facility such as star services etc. In
this specific case it would be work going through a system like the number allocation system and exchange switches.
I.e. allocate and connect a phone number to a specific customer line.
Methodology
The base is allocated across Services (and thereby to the relevant feed Components) by reference to their
Connection volumes. There is no weighting placed on the respective volumes.
Data Source/s
PSTN Resource Centre. An automated mail with an excel spreadsheet attached containing a summary of the
jumpering tasks carried out in the preceding week is forwarded to the analyst that is responsible for the base.
Period end volumes (P6 for half year and P12 for full year)
See Appendix E for Component Destinations
PG145B
Asymmetric Digital Subscriber (ADSL) Connections
Description
This Plant Group (PG) captures the costs associated with the Provision and Installation of Asymmetric Digital
Subscriber Lines (ADSL). ADSL is the most common way in which Broadband is delivered within the UK.
The Class of Work (CoW) associated with this PG is Circuit Provision - asymmetric Digital Subscriber Line (CPDSL).
This CoW covers all provision activities in serving exchanges and customer site, including end to end testing.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the ADSL Connections Component CO118.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG145N
ADSL Connections (Wholesale)
Description
This Plant Group (PG) captures the costs associated with the Provision and Installation costs for Asymmetric Digital
Subscriber Line (ADSL).
The Class of Work (CoW) associated with this PG is Circuit Provision - asymmetric Digital Subscriber Line (CPDSL).
This CoW covers all provision activities in serving exchanges and customer site, including end to end testing.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the ADSL Connections Component CO118.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
224
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG147B
Symmetric Digital Subscriber Line (SDSL) Connections
Description
This base apportions Profit and Loss (Stores and Current non-ETG pay) associated with Symmetric Digital Subscriber
Line (SDSL) Connections.
SDSL provides the same bandwidth in both directions, unlike Asymmetric Digital Subscriber Line (ADSL). This means
that SDSL is better suited to situations and applications that need a large amount of data to be sent and received such as audio conferencing, video conferencing etc.
Methodology
Allocates 100% to the SDSL Connections Component CO136.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG147N
Symmetric Digital Subscribe Line (SDSL) Connections (Wholesale)
Description
Symmetric Digital Subscriber Line (SDSL) provides the same bandwidth in both directions, unlike Asymmetric
Digital Subscriber Line (ADSL). This means that Symmetric Digital Subscriber Line (SDSL) is better suited to
situations and applications that need a large amount of data to be sent and received - such as audio conferencing,
video conferencing etc.
Types of cost include stores and pay costs.
Methodology
Allocates 100% to the SDSL Connections Component CO136.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG149A
Dropwire
Description
This Plant Group (PG) captures the Dropwire costs associated with specific Public to Switched Telephone Network
(PSTN) based Products.
Dropwires are wires connecting the Distribution Point to the customer’s premises.
Methodology
Allocated directly 100% to the Dropwire component CL178.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG150A
Integrated Services Digital Network 2 (ISDN2) Specific
Description
This Plant Group (PG) captures the Network Terminal Equipment (NTE) costs for Integrated Services Digital Network
2 (ISDN2) rentals. It includes Network Terminal Equipment (NTE) and line cards but excludes Dropwire. Dropwires
are wires connecting the Distribution Point to the customer’s premises.
Integrated Services Digital Network 2 (ISDN2) is a low-band digital service that supports voice, data and video.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated directly to 100% to the Integrated Services Digital Network 2 (ISDN2) specific component CL186.
Data Source/s
225
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG151B
Test Access Management Systems (TAMS) Openreach
Description
This Plant Group (PG) contains the Test Access Management Systems (TAMS) costs.
These are used to provide remote access facilities on broadband circuits for testing towards the customer and into
the network. Installed between the Main Distribution Frame (MDF) and the Digital Subscriber Line Access
Multiplexer (DSLAM).
Methodology
Allocated directly to 100% to the Local Loop Unbundling (LLU) Line Testing component CO187.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG151N
Test Access Management System (TAMS)
Description
This Plant Group (PG) captures the Test Access Management Systems (TAMS) Wholesale costs.
Types of cost include depreciation, stores and pay costs.
These are used to provide remote access facilities on broadband circuits for testing towards the customer and into
the network. Installed between the Main Distribution Frame (MDF) and the Digital Subscriber Line Access
Multiplexer (DSLAM).
Methodology
Allocates to C0187 Broadband Line Testing Systems and CT134 LLU hostel rentals power and ventilation based on
depreciation within Class of Work (CoW) WTMDF (Wholesale Test Equipment Main Distribution Frames.
Depreciation on Policy code WMDF is allocated to CT134, the remainder is allocated to C0187.
Data Source/s
P11 LoP List. Management believe this to be reflective of the full year.
See Appendix E for Component Destinations
PG152B
DSL Rentals (Openreach)
Description
This Plant Group contains the values relating to the equipment that supports the Digital Subscriber Line (DSL)
product rentals.
Digital Subscriber Lines (DSL) is a family of technologies that provide digital data transmission over the wires of a
local telephone network. These lines that provide faster Internet access to the customer and also allows telephone
calls to be made at the same time as Internet usage.
This Plant Group contains all the balance sheet values relating to the equipment that supports the Digital Subscriber
Line (DSL) product rentals including Digital Subscriber Line Access Multiplexer (DSLAM) equipment. This Plant
Group also contains the depreciation and maintenance costs on this equipment as well as overhead type costs such
as the accommodation to house equipment etc.
Methodology
Allocated 100% to the Digital Subscriber Line (DSL) rentals- specific Component CO188.
CO188 onward allocates to Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL)
services. It does not support Local Loop Unbundling (LLU) and Shared Metallic Path Facility (SMPF) as a Service
Provider would provide these activities themselves.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
226
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG152N
Digital Subscriber Lines (DSLs) Rentals
Description
Digital Subscriber Lines (DSL) is a family of technologies that provide digital data transmission over the wires of a
local telephone network. These lines that provide faster Internet access to the customer and also allows telephone
calls to be made at the same time as Internet usage.
This PG contains all the Balance Sheet values relating to the equipment that supports the Digital Subscriber Line
(DSL) Product rentals including Digital Subscriber Line Access Multiplexer (DSLAM) equipment. This PG also
contains the depreciation and maintenance costs on this equipment as well as overhead type costs such as the
accommodation to house equipment etc.
Methodology
Allocated 100% to the Digital Subscriber Line (DSL) rentals- specific Component CO188.
CO188 onward allocates to Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL)
services. It does not support Local Loop Unbundling (LLU) and Shared Metallic Path Facility (SMPF) as a Service
Provider would provide these activities themselves.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG170B
Synchronous Digital Hierarchy (SDH) Bearer Length – Backhaul fibre
Description
This Plant Group (PG) captures the depreciation costs and asset values of the length elements of SDH bearers.
Bearers provide the transmission capability for the circuits that support BT’s products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through
which it passes (see Bearer Diagram refer to Core Transmission Circuit costing System (CTCS) in section 9). A fibre
cable between two nodes can support many bearers (a bearer generally uses a pair of fibres whereas a fibre cable
can have up to 240 fibres). The length element of a bearer relates to the fibre cable, duct and the repeating
equipment between the nodes.
A bearer forms part of the network which is in turn split into several tiers in order to address the different needs of
different parts of the network (see Network Overview)
•
•
•
•
•
•
Tier 0 is the highest level in the network, intended to handle international traffic.
Tier 1 is the long haul inter city or backbone network. It consists of 4/1 and 4/4 cross connect switches.
A cell or Supercell is an additional ring between tiers 1 and 2.
Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two
separate Tier 1 nodes.
Tier 3 is the level used for Booster schemes.
Tier 4 is the access network for SDH Customers.
Marconi Synchronous Hierarchy (MSH) is the high capacity platform to cater for traffic at 140mb and above.
SDH bearers have various transmission rates as indicated by the Synchronous Transport Module (STM):
•
•
•
•
STM1 – 155Mbit/s.
STM4 – 622Mbit/s.
STM16 – 2.48Gbit/s.
STM64 – 10Gbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network
Components (circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an
analysis of the CTCS database, which extracts information from engineering databases. It provides details of the
relationships between bearers and circuits, specifically:
•
•
The bearer equipment that a circuit ‘Hits’ along its route.
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together
with the length of these segments.
227
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
In general a bearer can support many circuits. For example a 155Mbit/s SDH bearer can support 63 2Mbit/s circuits,
three 34Mbit/s circuits or a single 155Mbit/s circuit. The cost of an individual bearer is therefore apportioned across
all the segments of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the
apportioned costs of all of the bearers over which the circuit is routed through the core network.
For Ethernet circuits the cable volumes are taken from INS. Ethernet circuits have one circuit per cable and
therefore allowing the length/volume of cables to be used as the bearer volume/length
Factored Volumes Calculation
The apportionment of cost is based on a factored volume which in turn is calculated by factoring the raw volume
figure by a usage factor (with the exception of Ethernet):
Raw Volume
The length related asset costs of bearers (e.g. depreciation of fibre cable and duct) are apportioned on a raw volume
based on the length of the circuit segment carried by a bearer.
Usage Factor
This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit would have
a usage factor of one 63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a third.
Data Source/s
Core Transmission Circuit costing System (CTCS) and INS (for Ethernet) data for Period 6. Management believes this
Period is reflective of the full year.
See Appendix E for Component Destinations
PG197A
Fibre To The Cabinet (FTTC) Service Delivery and Development
Description
This Plant Group (PG) captures the costs associated with the Openreach (OR) Next Generation Access (NGA) Fibre
to the Cabinet (FTTC) product.
For 2009/10, it covers both service delivery and development costs. It will be subject to review in 2010/11 in the
light of experience of rolling out NGA FTTC and of any regulatory developments.
These costs are identified:
•
•
For Service delivery, from the General Ledger (GL) posting, the Class of Work (CoW) and OR Finance records
which capture the NGA-specific nature of these costs.
For Development, via a transfer charge made from BT Design (BTD) to OR.
Methodology
Allocates 100% to the NGA FTTC Component CL197 (FTTC Service Delivery & Development).
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG198A
Fibre To The Premises (FTTP) Development
Description
This Plant Group (PG) captures the costs associated with the Openreach (OR) Next Generation Access (NGA) Fibre
to the Premises (FTTP) product currently under development.
For 2009/10, it covers development costs only. It will be subject to review in 2010/11 in the light of experience of
the planned trials of NGA FTTP and of any regulatory developments.
These costs are identified via a transfer charge made from BT Design (BTD) to OR.
Methodology
Allocates 100% to the NGA FTTP Component CL198 (FTTP Development).
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
228
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG211M
Local exchanges Digital System X Current
Description
This Plant Group (PG) captures the maintenance Profit and Loss (Pay, Non-Pay, Materials etc) costs of System X
Digital local exchange switching.
Methodology
Apportions to the call related components based on the overall capital apportionment of System X Local Exchange
and Concentrator units using the PG to component apportionment. This is derived from the calculations involved
for the base PDTSYSXD and the Plant Groups (PGs) PG286C (System X Local Exchange (LE) –Digital Line Termination
(DLT) Capital) and PG285C (Local Exchange System X Processor and Signalling).
Data Source/s
PG to component apportionments relating to System X Local Exchanges derived from the Capital Apportionment
Model.
See Appendix E for Component Destinations
PG212M
Local Exchange Digital AXE10 - Current
Description
This Plant Group (PG) captures the maintenance costs associated with the AXE10 Digital local exchange switching.
Methodology
At PDTDY level the maintenance costs are distributed to PG based on the number of hours spent by field engineers
in servicing each of the items embraced by those PGs.
Further apportionment through to the call related components is based on the overall capital apportionment of
AXE10 Local Exchange and Concentrator units using the PG to component apportionment. This is derived from the
calculations involved for the base PDTLYX and the Plant Groups PG281C (AXE 10 Local Exchange (LE) Digital Line
Termination (DLT) – Capital) and PG280C (Local Exchange AXE10 Processor and Signalling).
Data Source/s
PG to component apportionments relating to AXE10 Local Exchanges derived from the Capital Apportionment
Model.
See Appendix E for Component Destinations
PG213C
Local Exchanges UXD Capital
Description
This Plant Group (PG) captures the cost of constructing, extending and rearranging local UXD5 Exchanges. Types of
cost include pay, depreciation and indirects.
UXD5 exchanges are deployed in rural areas and cater for about 460 Public Switched Telephone Network (PSTN)
customers each. They are in effect mini Local Exchanges (LE).
Methodology
A Modern Equivalent Asset determination using System X and AXE10 equipment is produced. Unit Exchange Digital
V5 (UXD5) volumes are taken from EXPRES and the costs of the building blocks for the equivalent System X and
AXE10 exchanges are calculated. To this the manufacturers’ supplied matrices (a mapping of building blocks to Call
Set-Up, Duration, Access and Common) elements are applied. This is what happens in the LDX and LYX
apportionment process. The results from both system types are then weighted, using the volume of fitted lines to
System X and AXE10 Local Exchanges in the network.
From the described methodology an apportionment can be made to PSTN Linecards, Concentrator Set-Up and
Concentrator Duration components.
Data Source/s
System X, AXE10 and UXD5 Local Exchange volumes in the network from the EXPRES system.
See Appendix E for Component Destinations
229
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG213M
Local Exchanges UXD5 Current
Description
This Plant Group (PG) captures the maintenance Profit and Loss (Pay, Non-Pay, Materials etc) costs for the Calls
related element of UXD5 exchange switching.
Methodology
Apportions to the call related components based on the overall capital apportionment of UXD5 Exchange and
Concentrator units using the PG to component apportionment in PG213C.
Data Source/s
Capital Apportionment Model.
See Appendix E for Component Destinations
PG216C
Local Exchanges General Switchboards Capital
Description
This Plant Group (PG) captures the depreciation costs of switching equipment used to support Operator Assistance
(OA) calls.
Methodology
This is achieved through a Period 12 Operfile, this being a spreadsheet used to derive apportionment information
for Operator and Directory Assistance costs. The file is a summary of information from a variety of other data sources
and is updated monthly on a cumulative basis
Attribution is carried out as follows:
Call duration information from the central data store (CDS) and Call Statistics Centralisation System (CSCS) is
summarised on the basis of call types. A link is then made between the nature of the call and the type of equipment
required to carry it. As this is a capital base, the initial summary is then allocated to components on the basis of
depreciation charges per switch type. Depreciation is extracted from the Fixed Asset Register.
The Operator Assistance costs are attributed to the following components pro-rata to the call minute volumes:
Inland and International OA CO911 and CO912
Emergency OA 999 CO919
OA non- chargeable CO941
Emergency OA 999 non-chargeable CO942
OA PSCC (Public Payphone Operator) non chargeable CO943
Data Source/s
Inland and International Directory Assistance (DA)
Central Data Store (CDS).
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA)
Call Centre Management Information System (CCMIS).
CSCS (for Retail chargeable).
6A Report (for Wholesale Chargeable).
Fixed Asset download by Accounting Policy Code (APC) requested from Xansa.
Information from Steria - from the Lucent Switch billing system – (this is incorporated into the CDS file that is
produced monthly and used to populate the Operfile).
See Appendix E for Component Destinations
230
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG216M
Local Exchanges General Switchboards Maintenance
Description
This Plant Group (PG) captures the maintenance costs of the switching equipment used to support Operator
Assistance (OA) calls and apportions them to Components.
Methodology
This is achieved through a Period 12 Operfile, this being a spreadsheet used to derive apportionment information
for Operator and Directory Assistance costs. The file is a summary of information from a variety of other data sources
and is updated monthly on a cumulative basis
The costs are attributed on the same basis as the depreciation costs of this equipment (See PG216C), on the basis
that maintenance activity is carried out to support the performance of the switching equipment and can therefore
be regarded as an overhead of the capital/depreciation expenditure incurred. It should therefore be attributed on
a consistent basis with the capital costs.
Data Source/s
Inland and International Directory Assistance (DA)
Central Data Store (CDS).
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA)
Call Centre Management Information System (CCMIS).
CSCS (for Retail chargeable).
6A Report (for Wholesale Chargeable).
Fixed Asset download by Accounting Policy Code (APC) by Steria.
Information supplied by Steria from the Lucent Switch billing system – (this is incorporated into the CDS file that is
produced monthly and is used to populate the Operfile).
See Appendix E for Component Destinations
PG217E
LE Frames Capital (Openreach)
Description
This Plant Group (PG) captures the cost of provision, extension, upgrade, replacement, re-arrangement and
recovery of Main Distribution Frames (MDFs) connected with Inland (BTUK) telephone exchanges.
Types of cost include depreciation and Non-ETG pay costs.
Main Distribution Frames (MDFs) are those distribution frames providing direct interface with external circuits
terminations (customer or other exchanges).
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System
(CTCS)) weighted by fault rate (calculated using total faults divided by volumes)
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
See Appendix E for Component Destinations
PG217F
LE Frames Current (Openreach)
Description
This Plant Group (PG) captures the maintenance cost of Main Distribution Frames (MDFs) connected with Inland
(BTUK) telephone exchanges.
Main Distribution Frames (MDFs) are those distribution frames providing direct interface with external circuits
terminations (customer or other exchanges).
Methodology
231
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System
(CTCS)) weighted by fault rate (calculated using total faults divided by volumes)
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
See Appendix E for Component Destinations
PG217Q
LE Frames Capital (Wholesale)
Description
This Plant Group (PG) captures the cost of provision, extension, upgrade, replacement, re-arrangement and
recovery of Main Distribution Frames (MDFs) connected with Inland (BTUK) telephone exchanges. Main
Distribution Frames (MDFs) are those distribution frames providing direct interface with external circuits
terminations (customer or other exchanges).
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System
(CTCS)) weighted by fault rate (calculated using total faults divided by volumes)
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
See Appendix E for Component Destinations
PG217R
LE Frames Current (Wholesale)
Description
This Plant Group (PG) captures the maintenance cost of Main Distribution Frames (MDFs) connected with Inland
(BTUK) telephone exchanges.
Main Distribution Frames (MDFs) are those distribution frames providing direct interface with external circuits
terminations (customer or other exchanges).
Methodology
Apportions to components based on circuit volumes (source Powerhouse and Core Transmission Circuits System
(CTCS)) weighted by fault rate (calculated using total faults divided by volumes)
Data Source/s
Powerhouse, CTCS from Period 6. Management believe this to be reflective of the full year.
See Appendix E for Component Destinations
PG219M
Local exchanges operation and surveillance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non-Pay etc) costs of the routine operational review and
monitoring of local and main exchanges.
Methodology
At PDTOSD level the costs are distributed to the PG based on a survey of time spent by operations staff. Access
related items are diverted into PG124A, PG128A, PG127A and PG120A.
Further apportionment through to the components for the network related elements is based on the overall capital
apportionment from PG to component for the platforms identified at the PDT stage.
Data Source/s
Sample activity survey of time spent by operations staff on Class of Work (CoW) OSD (Operation and Surveillance
Duty).
EXPRES system for Local Exchange weightings and Capital Apportionment Model.
See Appendix E for Component Destinations
PG227A
Main Exchanges Advanced Service Units (ASUs)
Description
232
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay, Depreciation etc) cost of Construction,
Installation, re-arrangement, recovery and renewal and maintenance of Advance Service Units (ASUs) equipment
and Call Centre DMS100s to provide the platform to support the provision of the Virtual Private Network Service
(VPNS). The VPNS Services being Virtual Private Network (VPN) and Virtual Private Services.
This PG also captures the maintenance costs of the above types of equipment.
Methodology
Allocated 100% to the Advance Service Unit (ASU) Switches component CO227.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG228A
Signalling Transfer Point (STP) and Edge Link Monitors
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of BT’s
signalling network, signalling network management system and interconnect equipment. For example Signalling
Transfer Point (STP) and Signalling Point Relay (SPR) Switches, Signalling Traffic Management (STMS) equipment,
Link Monitors and associated equipment (Core and Edge), On site spares, Initial Databuild associated with Switches,
Testing Apparatus and initial provision of spares held for changing purposes.
Methodology
Allocated 100% to the Signalling Transfer Point (STP) Component CO270.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG229A
Signalling Point Relay and Core Link Monitors
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of the
following signalling equipment:
Signalling Point Relay (SPR) Switches and Core Link Monitors, both with associated on site spares. It also captures
the costs of the initial Databuild associated with the Switches.
The core Link Monitors and SPR Switches are both items of signalling equipment used to interface Public Switched
Telephone Network (PSTN) Switches with the Intelligent Network (IN)/Common Intelligent Service layer (CISL). The
former provides a Signalling Assurance function whilst the latter concentrates signalling from the PSTN Switches
onto the Intelligent Network/CISL.
Methodology
Costs are allocated to the Intelligent Network components (CISL and ICM) based on latest available Period Year to
Data CISL and Powerhouse call volumes.
The CISL volumes provide the split between Select Services and the IN/CISL Services whilst the Powerhouse volumes
are used to provide the split between the two Select Services Components.
Data Source/s
Cumulative CISL platform volumes and Powerhouse volumes, to a period relative to the apportionment base,
reflecting year end.
See Appendix E for Component Destinations
PG240A
Public Switched Telephone Network (PSTN)/Integrated Services Digital Network (ISDN) Line Test
Description
This Plant Group (PG) captures the costs associated with the equipment that supports line testing of Public
Switched Telephone Network (PSTN) and Integrated Services Digital Network (ISDN) circuits.
Types of cost include depreciation, stores and pay costs.
233
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Methodology
Allocated 100% to the Public Switched Telephone Network (PSTN)/Integrated Services Digital Network (ISDN) Line
Test equipment Component CL177.
Data Source/s
Allocated directly no data source/s required.
See Appendix E for Component Destinations
PG241A
Repair Handling Duty
Description
This Plant Group (PG) captures the costs associated with time spent by Repair Handling Duty staff on Network
Operations Items (NOUs), Remote Operations Items (ROU) and exchange line testing, report raising and records
work.
Types of cost include current pay and Gross Book Value (GBV) Fixed Assets.
Methodology
The PG is allocated based upon circuit volumes from Openreach Management Accounts to two Public Switched
Telephone Network (PSTN) components and one Integrated Services Digital Network (ISDN) component.
Data Source/s
Openreach Management Accounts.
See Appendix E for Component Destinations
PG249C
Main Digital Exchange Digital Line Termination (DLT) Capital
Description
This Plant Group (PG) captures the capital and depreciation costs of the Main Digital Exchange Digital Line
Termination (DLT) equipment, which flow from Class of Work (CoW) MDX via PDTMXD.
The Digital Line Termination (DLT) is part of the Main Exchange System X Processor unit and NGS (Next Generation
Switch) that also comprises a Switch Block and Processor and Signalling functional groups, and is used for call setup
and call duration.
Methodology
The costs are identified by the CoW to PG exhaustion process. The attribution of Main Exchange costs follows a
number of steps.
Main Exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X
units are not available and are being replaced by NGS units. A Current Cost Accounts (CCA) approach and a Modern
Equivalent Asset (MEA) of the NGS are used to generate costs for both types of switch. The engineering model
analyses the NGS into its constituent elements: (such as AXD, Regional Processing Group 2 (RPG2) and Group Switch
Services (GSS) etc.). The model is the same used to derive the PDTMXD base and the PG to component derivation
takes place as part of the same process. Account is taken of the additional capacity required to accommodate the
remaining System X working capacity which is to be consolidated on to the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109)
between BT and Ericsson. With information from the manufacturers we are able to determine the call setup and
duration split for each element. The total cost of all the elements of all the units in the network is summed and
then these costs are analysed into setup and duration splits. Common costs can be treated by apportioning a
fraction to set-up and duration pro-rata on the already existing split however this makes no difference to the
overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup CO220 and main exchange call duration CO221.
234
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
The overall process is illustrated below :
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs.
Loaded cost of call setup is
P + [R x P/(P+Q)] = M
Loaded cost of call duration is Q + [R x Q/(P+Q)] = N
This analysis is prepared using year end data for the previous year as part of the Long Run Incremental Cost (LRIC)
process (the capacity and number of units does not change significantly and is unlikely to affect the overall result).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to
the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call setup = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the Digital Line Termination (DLT) cost relating to Other Communications Provider (OCP) has also to be
determined. Mid-year port information is downloaded from Network Recording System (NRS). This provides the
origin and destination of each 2Mbit/s port on every Local, Trunk and Main Exchange. This data can then be
manipulated to analyse where the ports are pointed and what type of switch and of which system type is involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed
at the Interconnect Connections component. The residual amount is then re-based so that the new total equals
100% and pointed to main exchange call set up and main exchange call duration.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
LRIC Cost Model.
See Appendix E for Component Destinations
PG249M
Main Digital Exchange Digital Line Termination (DLT) Maintenance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay etc) maintenance costs of the Main Digital
Exchange Digital Line Termination (DLT) equipment, which flow from Class of Work (CoW) MDX, via PDTMXD.
The apportionment for maintenance uses the capital base, explained below, to exhaust the costs to components,
however there is one difference. The Interconnect component targeted in the case of maintenance is CR470.
235
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The Digital Line Termination (DLT) is part of the Main Exchange System X Processor and NGS (Next Generation
Switch) unit that also comprises a Switch Block and Processor and Signalling functional groups, and is used for call
setup and call duration.
Methodologies
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a
number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X
units are not available and are being replaced by NGS units. A Current Costs Accounts (CCA) approach and a Modern
Equivalent Asset (MEA) of the NGS are used to generate costs for both types of switch. The engineering model
analyses the NGS into its constituent elements (such as AXD, Regional Processing Group 2 (RPG2) and Global
Satellite Services (GSS) etc.). The model is the same that is used to derive the PDTMXD base and the PG to
component derivation takes place as part of the same process. Account is taken of the additional capacity required
to accommodate the remaining System X working capacity which is to be consolidated onto the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109)
between BT and Ericsson. With information from the manufacturers we have been able to determine the call setup
and duration split for each element. The total cost of all the elements of all the units in the network is summed and
then these costs are analysed into setup and duration splits. Common costs can be treated by apportioning a
portion to setup and duration pro-rata on the already existing split however this makes no difference to the overall
result and common costs is ignored.
Call setup costs are driven to main exchange call setup CO220 and main exchange call duration CO221.
The overall process is illustrated below :
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs.
Loaded cost of Call set-up is
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using year end data for the previous year as part of the Long Run Incremental Cost (LRIC)
process (the capacity and number of units does not change significantly and is unlikely to affect the overall result).
The relative costs of call setup and call duration are therefore expressed as percentages, and these percentages are
applied to the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call set-up = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the Digital Line Termination (DLT) cost relating to Other Communications Providers (OCPs) has also to be
determined. Mid-year port information is downloaded from Network Recording System (NRS). This provides the
origin and destination of each 2Mbit/s port on every Local, Trunk and Main Exchange. This data can then be
manipulated to analyse where the ports are pointed and what type of switch and of which system type is involved.
236
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
The fraction of ports that point to OCPs can be identified as a fraction of the total. This percentage is then pointed
at the Interconnect Connections component. The residual amount is then re-based so that the new total equals
100% and pointed to main exchange call setup and main exchange call duration.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
LRIC Cost Model.
See Appendix E for Component Destinations
PG252B
Openreach Elimination
Description
This Plant Group (PG) captures the “variance” between the calculated notional revenues associated with Other
Communication Providers (OCPs), and the actual revenues received from OCPs, relating to Openreach activity.
Methodology
Costs, revenues and debtors from this Plant Group (PG) are apportioned 100% to the component CZ252B
Openreach Residual Elimination.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG252N
Wholesale Elimination
Description
This Plant Group (PG) captures the “variance” between the calculated notional revenues associated with Other
Communication Providers (OCPs), and the actual revenues received from OCPs relating to Wholesale activity.
Methodology
Costs, revenues and debtors from this Plant Group (PG) are apportioned 100% to the component CZ252N
Wholesale Residual Elimination.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG254A
Main Digital Exchange - Intelligent Access and Messaging
Description
This Plant Group (PG) captures the depreciation costs of Main Digital exchange intelligent access and messaging
equipment to calls components only.
Methodology
Apportionment to the Call Set-Up components for Local and Main Exchanges is based on the relative number of
Local Exchanges and Main Exchanges in the network sourced from the EXPRES system. Data amendments are more
numerous and more time consuming for Main Exchanges than for Local Exchanges, so each Main Exchange is
weighted by a factor determined by a survey of time spent on Data Amendments. This factor is determined on the
basis of the experience and expertise of the data amendment team, being a management estimate. This gives an
estimate of the time and hence relative cost for data amendments on Local relative to Main Exchanges.
An apportionment to CO260 Cambridge Voice Intelligent Peripherals is made on the basis of minutes for CNA
(Change Number Announcement) relative to minutes for Televoting and other messaging applications.
Data Source/s
Exchange Planning and Review System (EXPRES).
Data Amendments survey.
Minutes Data from Recorded Information Distribution Equipment (RIDE) - SDW (Statistics Data Warehouse).
See Appendix E for Component Destinations
237
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG255B
Main Digital Switch Block
Description
This Plant Group (PG) captures the capital depreciation and maintenance costs of the Main Digital Exchange Switch
Block equipment, which flow from Class of Work (CoW) MDX, via PDTMXD (see Base Methodology Dictionary
section 4).
The Switch Block is part of the Main Exchange System X Processor and NGS (Next Generation Switch) unit that also
comprises of a Processor and Digital Line Termination (DLT) functional groups, and is used for call setup and call
duration.
Methodology
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a
number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X
units are not available and are being replaced by NGS units. A Current Cost Accounts (CCA) approach and a Modern
Equivalent Asset (MEA) of the NGS are used to generate costs for both types of switch. The engineering model
analyses the NGS into its constituent elements (such as such as AXD, Regional Processing Group 2 (RPG2) and Global
Satellite Services (GSS) etc). The model is the same that is used to derive the PDTMXD base and the PG to
component derivation takes place as part of the same process. Account is taken of the additional capacity required
to accommodate the remaining System X working capacity which is to be consolidated onto the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109)
between BT and Ericsson. With information from the manufacturers we have been able to determine the call setup
and duration split for each element. The total cost of all the elements of all the units in the network is summed and
then these costs are analysed into setup and duration splits. Common costs can be treated by apportioning a portion
to setup and duration pro-rata on the already existing split however this makes no difference to the overall result
and common costs is ignored.
Call setup costs are driven to main exchange call set up CO220 and main exchange call duration CO221.
The overall process is illustrated below :
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs.
Loaded cost of call setup is P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is
Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using year end data for the previous year as part of the Long Run Incremental Cost (LRIC)
process (the capacity and number of units does not change significantly and is unlikely to affect the overall result).
The relative costs of call setup and call duration are expressed as percentages, and these percentages are applied to
the year-end (Period 12) PG costs to determine the attribution to components.
238
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This is illustrated below.
•
•
Percentage of processor costs relating to call setup = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
LRIC Cost Model.
See Appendix E for Component Destinations
PG257C
Main Digital Processor Capital
Description
This Plant Group (PG) captures the capital and depreciation costs of the Main Digital Exchange Processor and
Signalling equipment, which flow from Class of Work (CoW) MDX via PDTMXD.
The processor is part of the Main Exchange System X Processor unit that also comprises a Switch Block and Digital
Line Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
The costs are identified by the CoW to PG exhaustion process. The attribution of main exchange costs follows a
number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X
units are not available and are being replaced by NGS units. A Current Cost Accounts (CCA) approach and a Modern
Equivalent Asset (MEA) of the NGS are used to generate costs for both types of switch. The engineering model
analyses the NGS into its constituent elements (such as such as AXD, Regional Processing Group 2 (RPG2) and Global
Satellite Services (GSS) etc.). The model is the same that is used to derive the PDTMXD base and the PG to
component derivation takes place as part of the same process. Account is taken of the additional capacity required
to accommodate the remaining System X working capacity which is to be consolidated onto the NGS system.
The provisioning rules that govern the Next Generation Switch (NGS) are given in the pricing section of the NGS
contract (no. 658109) between BT and Ericsson. With information from the manufacturers we have been able to
determine the call setup and duration split for each element. The total cost of all the elements of all the units in the
network is summed and then these costs are analysed into setup and duration splits. Common costs can be treated
by apportioning this amount to setup and duration pro-rata on the already existing split however this makes no
difference to the overall result and common costs are ignored.
Call setup costs are driven to main exchange call setup CO220 and main exchange call duration CO221.
The overall process is illustrated below :
239
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The cost of those switch elements that are common to both call setup and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using year end data for the previous year as part of the Long Run Incremental Cost (LRIC)
process; this is because the capacity and number of units does not change significantly and is unlikely to affect the
overall result. The relative costs of call setup and call duration are expressed as percentages, and these percentages
are applied to the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call setup = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the signalling cost relating to Other Communications Providers (OCPs) has also to be determined.
The signalling usage and cost relating to OCPs has yet to be determined. Information from Network Recording
System (NRS) is downloaded showing destinations including those relevant to OCPs can be identified and compared
to the total.
Signalling costs form part of the PG total costs but the separate signalling cost is clearly identifiable so on this basis
an apportionment is made from this PG to CO469 Interconnect Connections Capital. The residual amount is then rebased so that the new total equals 100% and pointed to main exchange call setup and main exchange call duration.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
LRIC Cost Model.
See Appendix E for Component Destinations
PG257M
Main Digital Processor Maintenance
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Non Pay etc) maintenance costs of the Main Digital
Exchange Processor and Signalling equipment, which flow from Class of Work (CoW) MDX, via PDTMXD.
The apportionment for maintenance uses the capital base, explained below, to exhaust the costs to components,
however there is one difference. The Interconnect component targeted in the case of maintenance is CR470.
The Processor is part of the Main Exchange System X Processor unit that also comprises a Switch Block and Digital
Line Termination (DLT) functional groups, and is used for call setup and call duration.
Methodology
The costs are identified by the Class of Work (CoW) to PG exhaustion process. The attribution of main exchange costs
follows a number of steps.
Main exchanges come in two types, an older System X unit and a newer Next Generation Switch (NGS). System X
units are not available and are being replaced by NGS units. A Current Costs Account (CCA) approach and a Modern
Equivalent Asset (MEA) of the NGS are used to generate costs for both types of switch. The engineering model
analyses the NGS into its constituent elements (such as such as AXD, Regional Processing Group 2 (RPG2) and Global
Satellite Services (GSS) etc.). The model is the same that is used to derive the PDTMXD base and the PG to
component derivation takes place as part of the same process. Account is taken of the additional capacity required
to accommodate the remaining System X working capacity which is to be consolidated onto the NGS system.
The provisioning rules that govern the NGS are given in the pricing section of the NGS contract (no. 658109)
between BT and Ericsson. With information from the manufacturers we have been able to determine the call set up
and duration split for each element. The total cost of all the elements of all the units in the network is summed and
then these costs are analysed into setup and duration splits. Common costs can be treated by apportioning the
amount to setup and duration pro-rata on the already existing split however this makes no difference to the overall
result and common costs is ignored.
Call set-up costs are driven to main exchange call set-up CO220 and main exchange call duration CO221.
240
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
The overall process is illustrated below :
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of call setup is
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using year end data for the previous year as part of the Long Run Incremental Cost (LRIC)
process: this is because the capacity and number of units does not change significantly and is unlikely to affect the
overall result. The relative costs of call set up and call duration are expressed as percentages, and these percentages
are applied to the year-end (Period 12) PG costs to determine the attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call setup = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
However, the signalling cost relating to Other Communications Providers (OCPs) has also to be determined.
The signalling usage and cost relating to OCPs has yet to be determined. Information from Network Recording
System (NRS) is downloaded showing destinations including those relevant to OCPs can be identified and compared
to the total. Signalling costs form part of the PG total costs but the separate signalling cost is clearly identifiable so
on this basis an apportionment is made from this PG to CO469 Interconnect Connections Capital. The residual
amount is then re-based so that the new total equals 100% and pointed to main exchange call setup and main
exchange call duration.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
LRIC Cost Model.
See Appendix E for Component Destinations
PG260A
Intelligent Contact Manager
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of all
equipment and associated costs incurred as part of provision, extension, re-arrangement and recovery of Intelligent
Contact Manager equipment excluding Alfredo equipment. It also includes Intelligent Peripherals (IP) Service
Control Point (SCP) equipment, on site spares, initial Databuild associated with switches, Testing Apparatus and
initial provision of spars held for changing purposes.
241
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
This equipment provides a call routing functionality for customers with call centres - e.g. Time of Day routing and
customer controlled call steering. It gives options to a caller to be transferred to a particular department by pressing
1, 2 or 3.
Methodology
Apportioned 100% to the Intelligent Contact Manager component CO261.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG263A
Core Intelligent Network (IN)
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of the
Service Control Point (SCP) electronics that support the Core Intelligent Network (IN)) platform. This equipment
provides number translation service for DIAL IP and Flat Rate Internet Access Call Origination (FRIACO) calls. This
means translating the dialled number (for example 0800 756000) into a geographic number (e.g. 020 7123 4567)
that Public Switched Telephony Network (PSTN) Switches can use to route the call. The Core IN also provides
enhanced functionality for some Select Services (for example, Enhanced Call Return (1471 Extra) and CallMinder
Feature Interworking).
Methodology
Costs are apportioned to the Core Intelligent Network Component CO263 and the OR Network Features (Internal)
Component CO291 and the OR Network Features (External) Component CO290 based on Call Volumes from the
Intelligent Network (IN) platform and Powerhouse volumes.
Split CORE IN from Select Services
Use IN volumes and statistics derived from Core IN Performance Analysis, received on a monthly basis.
Split Wholesale and Retail Select Services
The proportional volume of CORE Select Services (derived from Call Volumes) is multiplied by the proportional
volume of Retail and Wholesale Select Service usage (derived from Powerhouse Volumes).
Data Source/s
Volumes from both the Intelligent Network (IN) platform and Powerhouse are taken over the past 9 month period.
See Appendix E for Component Destinations
PG273A
Montrose
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs of the
Montrose platform. The Montrose platform delivers prepaid telephony for both new customers with Credit Referrals
and existing customers on Credit Management.
Methodology
Costs are apportioned between the Montrose Component CO273 and the Public Switched Telephone Network
(PSTN) residential lines component CL180 based on the split of revenue from residential lines and calls revenue, for
BT originated calls.
Data Source/s
The revenue split is obtained from the Products relevant to residential lines and BT originated calls, from Aspire at
P9.
See Appendix E for Component Destinations
PG274A
Alfredo (Contract Spend)
Description
This Plant Group (PG) captures the contract spend of all equipment and associated costs incurred as part of
provision, extension, re-arrangement and recovery of Alfredo equipment (the Alfredo platform delivers a call
management system for large customers with multi sited call centres).
242
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
It also includes Intelligent Peripherals (IP) Service Control Point (SCP) equipment, on site spares, initial databuild
associated with Switches, Testing Apparatus and initial provision of spares held for changing purposes.
This equipment provides a call routing functionality for customers with call centres - e.g. Time of Day routing and
customer controlled call steering. It gives options to a caller to be transferred to a particular department by pressing
1, 2 or 3.
Methodology
Allocated 100% to the Alfredo Component CO271.
Data Source/s
Allocated directly, no data sources required
See Appendix E for Component Destinations
PG276A
CISL (Common Intelligence Service Layer)
Description
This Plant Group (PG) captures the cost of the Common Intelligence Service Layer (CISL) platform that supports
Basic and Advanced Number Translation services (for example 0800, 0845 etc) into a geographic number (for
example 0121 234 5678) so that the call can then be routed by the Public Switched Telephony Network (PSTN)
switches. Services on this platform are migrating from the Cambridge and CoreIN platforms (PG263/266).
Costs associated with the PG are:
•
•
•
Supervising contractors on installation.
On site spares.
Testing apparatus and initial provision of spares held for changing purposes.
Methodology
Costs from this PG are apportioned between the Cambridge/CISL infrastructure component CO266, the Intelligent
Contact Manager CO261, the OR Network Features (Internal) Component CO291 and the OR Network Features
(External) Component CO290 based on Call Volumes from the CISL platform and Powerhouse volumes.
Data Source/s
Cumulative CISL platform volumes and Powerhouse volumes, to a period relative to the apportionment base,
reflecting year end.
See Appendix E for Component Destinations
PG280C
Local Exchange AXE10 Processor and Signalling
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation etc) and Balance Sheet (Fixed Asset) costs relating
to the AXE10 Digital Local Exchange Processor and Signalling which flow through Class of Work (CoW) LYX via
PDTLYX (see Base Methodology Dictionary Section 4).
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator component CO214 LE
Concentrator Set-Up and CO215 LE Concentrator Duration and Chargeable Services. The costs are identified by the
CoW to PG exhaustion process. This enables the relative proportions of concentrator and processor costs to be
identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links,
2Mbit/s Systems and Miscellaneous). This analysis is carried out on the basis of various capacity measures (such as
the number of processing clusters, the number of 2Mb switch ports and the number of signalling channels)
actually present in the BT Network, as shown in Network Records System (NRS) and Exchange Planning and
Review System (EXPRES) [refer to Data Source section 9].
The next step is to determine the number of switches and switching elements within each switch that would be
required to provide such capacity if the switching functionality were optimally dimensioned. This gives the number
of switch elements of each type for the purposes of this analysis.
243
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded
on a switch on an element-by-element basis. Otherwise, It would not be possible to determine the relative split
between set up and duration costs. The aggregate cost within the network of each of these switch elements is
determined on the basis of Local Exchange Modernisation Programme2 (LEMP2) contract prices. The volume of
each element is multiplied by the unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme (LEMP). The LEMP contract is indicative of normal
course of business. It sets out the contract prices for the various switch elements and is negotiated with suppliers
by BT’s procurement function.
The elements of the processor are assigned into three main blocks:
•
•
•
Digital Line Termination (DLT).
Switch Block.
Processor and Signalling.
We are concerned with Processor and Signalling only for this PG. Based on advice from switching suppliers, the
function of each switch element is analysed between call set up and call duration. This advice showing an analysis
between set-up and duration will not change on a year by year basis as the building elements of the asset remain a
constant. Certain elements support both functions.
This overall process is illustrated below:
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of call set up is:
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is:
Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are expressed as
percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution
to components.
This is illustrated below:
•
•
Percentage of processor costs relating to call set-up = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs
as opposed to concentrator costs and are used to attribute costs to Local Exchange (LE) processor set up CO212 and
Local Exchange processor duration CO210.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated
each year and any changes mean that historic data is re-based to accommodate these.
However, the processor usage of Select Service calls has also to be determined. An extract of billing call record
information is gathered from a sample of 10 System X Local Exchanges and analysed into whether the record type
is Select Service driven or not.
244
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
System X information is used as a proxy as information of this type is not available for AXE10 exchanges.
Record Types 34 were ignored in this calculation on the assumption that the Select Services to ordinary calls without
Select Services is in the same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at 10 Digital Local Exchange (DLE) sites in the
country. The number of processor instructions was derived for call usage types to derive a weighted processor
average.
Billing records are generated only for outgoing calls and do not represent all of the processing capacity. As
outgoing calls represent around only 50% of the total calls being processed the amount of Select Services overhead
on the processor needs to be further refined or weighted to take this into account. An analysis of call usage has
been determined based on data taken from ASPIRE for Period 1 to 6 which shows the proportion of outgoing calls
compared to the total. This includes Call Terminating, Call Origination Flat Rate Internet Access Call Origination
(FRIACO) and any Tandem Traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. This is further split
into Select Services relating to Wholesale and Retail using Period 6 Powerhouse volume data. The average relative
volume is used over the period. The Retail fraction is pointed at CO291 OR Network Features (Internal) and the
Wholesale fraction at CO290 OR Network Features (External).
The quantity of processor cost relating to Local Exchange (LE) call set up and call duration is then re-based so that
the new total equals 100%.
The signalling usage and cost relating to Other Operators has yet to be determined. Information from Network
Recording System (NRS) is downloaded showing destinations including those relevant to Other Operators can be
identified and compared to the total. Period 6 data is used. Signalling costs form part of the PG total costs but the
separate signalling cost is clearly identifiable so on this basis an apportionment is made from this PG to CR469 Intra
Building Circuits (Connections).
Data Source/s
Network Recording System (NRS) as at Period 06.
Exchange Planning and Review System (EXPRES).
Powerhouse Period 6 average in the year.
Billing Records.
See Appendix E for Component Destinations
PG281C
AXE 10 Local Exchange (LE) Digital Line Termination (DLT) – Capital
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation etc) and Balance Sheet (Fixed Asset) costs of AXE10
Digital Local Exchange Digital Line Termination (DLT), which flow through Class of Work (CoW) LYX via PDTLYX (see
Base Methodology Dictionary Section 4).
The DLT switch comprises both call set-up and call duration functionality.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator component CO214
Local Exchange (LE) Concentrator Set-Up and CO215 Local Exchange (LE) Concentrator Duration. The costs are
identified by the CoW to PG exhaustion process. This enables the relative proportions of concentrator and processor
costs to be identified.
The attribution of processor costs follows a number of steps.
245
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links,
2Mbit/s Systems and miscellaneous). This analysis is carried out on the basis of various capacity measures (such as
the number of 2Mb switch ports) actually present in the BT Network, as shown in Network Records System (NRS)
and Processor Utilisation and Loading of Switch Equipment (PULSE) (See Data Source section 9).
The next step is to determine the number of switches and switching elements within each switch that would be
required to provide such capacity if the switching functionality were optimally dimensioned. This gives the number
of switch elements of each type for the purposes of this analysis. It is necessary to carry out this step in the process
as switching assets is not always purchased and recorded on a switch element-by-element basis. Otherwise it would
not be possible to determine the relative split between set-up and duration costs
The aggregate cost within the network of each of these switch element is determined on the basis of:LEMP2 contract prices i.e. the volume of each element is multiplied by the unit cost of each element. LEMP2 was
the Local Exchange Modernisation Programme. It set out the contract prices for the various switch elements and is
negotiated with suppliers by BT’s procurement function. The LEMP2 contract is indicative of normal course of
business and covers both Local and System X main Exchanges based on advice from switching suppliers. The
function of each switch element is analysed between call set-up and call duration. This advice showing an analysis
between set-up and duration will not change on a year by year basis as the building elements of the asset remain a
constant.
Certain elements support both functions
This overall process is illustrated below:
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of Call set-up is: P + [R x P/(P+Q)] = M
Loaded cost of call duration is: Q + [R x Q/(P+Q)] = N
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are therefore
expressed as percentages with these percentages being applied to the year-end (Period 12) PG costs to determine
the attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call set-up = M/(M+N) = M%
Percentage of processor costs relating to call duration = N/(M+N) = N%
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs
as opposed to concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and
Local Exchange Processor Duration CO210). All of the above is based historic data until such time as the base is
unfrozen. The procedures below are updated each year and any changes mean that historic data is re-based to
accommodate these.
However, the Digital Line Termination (DLT) cost relating to Other Communications Providers (OCPs) also needs to
be determined.
246
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Mid-year port information is downloaded from the NRS. This provides the origin and destination of each 2Mbit/s
port on every Local, Trunk and Main Exchange. This data can then be manipulated to analyse where the ports are
pointed, what type of switch, of which system type and the system type involved.
The fraction of ports that point to OCPs can be identified as a fraction of the total is driven to CR469. This
percentage is then pointed at the Interconnect Connections component. The residual amount is then re-based so
that the new total equals 100% and point to Local Exchange Call Set-Up and Local Exchange Call Duration.
Data Source/s
Network Records System (NRS).
Exchange Planning and Review System (EXPRES).
Billing records.
See Appendix E for Component Destinations
PG282A
Local Exchange AXE10 Switch Block
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation and maintenance) and Balance Sheet (Fixed Asset)
costs of AXE10 Digital Local Exchange Switch Blocks.
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator CO214 Local Exchange
(LE) Concentrator set up and CO215 Local Exchange (LE) Concentrator duration. The costs are identified by the Class
of Work (CoW) to PG exhaustion process. This enables the relative proportions of concentrator and processor costs
to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements (such as Host Core, C7 Signalling Links,
2Mbit/s Systems and Miscellaneous).
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the
number of 2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown
in Network Records System (NRS) and Exchange Planning and Review System (EXPRES) - refer to Data Source
section 9.
The next step is to determine the number of switches and switching elements within each switch that would be
required to provide such capacity if the switching functionality were optimally dimensioned. This gives the number
of switch elements of each type for the purposes of this analysis.
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded
on a switch on an element-by-element basis, and it would not otherwise be possible to determine the relative split
between set up and duration costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local
Exchange Modernisation Programme2 (LEMP2) contract prices, that is, the volume of each element is multiplied by
the unit cost of each element.
LEMP2 is the Local Exchange Modernisation Programme. It sets out the contract prices for the various switch
elements and is negotiated with suppliers by BT’s procurement function.
The elements of the processor are assigned into three main blocks: Digital Line Termination (DLT), Processor and
Signalling, and Switch Block. For the purposes of this PG the Switch Block is the main consideration.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set up
and call duration. This advice showing an analysis between set-up and duration will not change on a year by year
basis as the building elements of the asset remain a constant.
Certain elements support both functions.
247
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
This overall process is illustrated below:
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of call set up is: P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is: Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are expressed as
percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the attribution
to components.
This is illustrated below:
•
•
Percentage of processor costs relating to call set-up = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs
as opposed to concentrator costs and are used to attribute costs to Local Exchange (LE) processor set up CO212 and
Local Exchange (LE) processor duration CO210).
The base is currently frozen.
Data Source/s
Network Recording System (NRS).
Exchange Planning and Review System (EXPRES).
See Appendix E for Component Destinations
PG283A
AXE10 Local Exchange (LE) Concentrator Set-Up
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to
AXE10 Local Exchange (LE) Digital Concentrator Call Set-Up.
These assets comprise both call set-up and call duration functionality. The PG contains both Capital and
Maintenance costs
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are
attributed to CO210 Local Exchange processor duration and CO212 Local Exchange Processor Set-up. Additional
apportionment is made from the Local Exchange DLT PG to Interconnect Connections and from Local Exchange
Processor to Chargeable Services (Select Services). The costs are identified by the Class of Work (CoW) to PG
exhaustion process. This enables the relative proportions of concentrator and processor costs to be identified.
The attribution of Concentrator Call Set-Up costs follows a number of steps.
The procedures below are updated each year.
248
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
The amount of concentrator usage for Select Service calls has to be determined. An extract of the Billing Call Record
information is gathered from a sample of ten System X Local Exchanges and analysed into whether the record type
is Select Service driven or not. System X information is used as a proxy for AXE10, as this information is unavailable.
Only RT22 makes use of the Concentrator Duration element of the switch assets and the fraction of these compared
to the total (RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 is ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for Analogue calls.
Billing Records are generated only for outgoing calls and do not represent all of the concentrator call set-up
capacity. An analysis of call usage has been determined based on data from Period 1 to 6. The total amount of Select
Service related concentrator usage is further refined relative to the quantity of Originating Calls and Own Exchange
Calls in relation to the total.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further
split into the Select Services relating to Wholesale and Retail using Powerhouse volumes. The Retail fraction is
pointed at CO290 OR Network Features (External) and the Wholesale fraction at CO291 OR Network Features
(Internal).
The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO214 Local Exchange Concentrator
Set-Up.
Data Source/s
Powerhouse.
Billing Records obtained from a sample of 10 AXE10 and 10 System X Local Exchange.
See Appendix E for Component Destinations
PG284A
AXE10 Local Exchange (LE) Concentrator Call Duration
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to
AXE10 Local Exchange (LE) Digital Concentrator Call Duration.
The switch comprises both concentrator and processor functionality, and is used for call set-up and call duration.
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are
attributed to CO212 LE Processor Set-Up and CO210 LE Processor Duration. Additional apportionments are made
from the LE DLT PG to Interconnect Connections and from LE Processor to Chargeable Services (Select Services).
The costs are identified by the Class of Work (CoW) to PG exhaustion process. This enables the relative proportions
of concentrator and processor costs to be identified.
The attribution of Concentrator Duration costs follows a number of steps.
The procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined.
249
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
A sample extract of Billing Call Record information is gathered from a sample of 10 System X local and 10 AXE10
Local Exchanges and analysed into whether the record type is Select Service driven or not. System X information is
used as a proxy for AXE10 as this information is unavailable.
Only RT22 makes use of the Concentrator Duration element of the switch assets and the fraction of these compared
to the total (RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 record types are ignored in this calculation on the assumption that the Select Services to ordinary calls without
Select Services is in the same ratio for Integrated Services Digital Network (ISDN) as for Analogue calls.
Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call setup capacity. An analysis of billing records has been determined based on data from Period 1 to 6. The total amount
of Select Service related concentrator usage is further refined relative to the quantity of Originating Calls and Own
Exchange Calls in relation to the total which also includes Call Terminating and DLE Transit.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further
split into the Select Services relating to Wholesale and Retail using Powerhouse volumes. The retail fraction is
pointed at CO290 OR Network Features (External) and the wholesale fraction at CO291OR Network Features
(Internal). The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO215 LE Concentrator
Duration. The PG contains both Capital and Maintenance costs.
Data Source/s
Powerhouse.
Billing Records.
See Appendix E for Component Destinations
PG285C
Local Exchange System X Processor and Signalling
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to
System X Digital Local Exchange Processor and Signalling which flow through from Class of Work (CoW) LDX via
PDTSYSXD (see Section 4).
The switch comprises both concentrator and processor functionality, and is used for call set up and call duration.
The concentrator costs call related costs are attributed wholly to the local exchange concentrator components
CO214 Local Exchange (LE) Concentrator set up and CO215 Local Exchange (LE) Concentrator duration. The costs
are identified by the CoW to PG exhaustion process. This enables the relative proportions of concentrator and
processor costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:
•
•
•
•
Flexible Voice Platforms.
Alarm Utility Subsystems.
Network Interface Subsystems.
Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the
number of 2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown
in Exchange Planning and Review System (EXPRES) and Processor Utilisation and Loading of Switch Equipment
(PULSE). See Data Sources Section 9.
The next step is to determine the number of switches and switching elements within each switch that would be
required to provide such capacity if the switching functionality were optimally dimensioned. This gives the number
of switch elements of each type for the purposes of this analysis.
250
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
It is necessary to carry out this step in the process because switching assets are not always purchased and recorded
on a switch element-by-element basis, and it would not otherwise be possible to determine the relative split
between set up and duration costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local
Exchange Modernisation Programme2 (LEMP2) contract prices. The volume of each element is multiplied by the
unit cost of each element.
LEMP2 was the Local Exchange Modernisation Programme which set out the contract prices for the various switch
elements. It sets out the contract prices for the various switch elements and is negotiated with suppliers by BT’s
Procurement function. The Local Exchange Modernisation Programme2 (LEMP2) contract is indicative of normal
course of business and covers both Local and System X Main Exchanges.
The elements of the processor are assigned into three main blocks.
•
•
•
Digital Line Termination (DLT).
Switch Block.
Processor and Signalling.
We are concerned with the Processor and Signalling only for this PG.
Based on advice from switching suppliers, the function of each switch element is analysed between call set up and
call duration. This advice showing an analysis between set-up and duration will not change on a year by year basis
as the building elements of the asset remain a constant.
Certain elements support both functions.
This overall process is illustrated below.
The cost of those switch elements that are common to both call set up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of call set up is:
P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is: Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are therefore
expressed as percentages, and these percentages are applied to the year-end (Period 12) PG costs to determine the
attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call set up = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG’s total cost represented by processor
costs as opposed to concentrator costs and are used to attribute costs to processor set up CO212 and processor
duration CO210).
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated
each year and any changes mean that historic data is re-based to accommodate these.
251
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
However, the Processor usage of Select Service calls has also to be determined. An extract of billing call record
information is gathered from a sample of 10 System X Local Exchanges (Data Source/s: Billing Records) and
analysed into whether the record type is Select Service driven or not.
RT34s are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for analogue calls.
Billing records were extracted for one whole week during the year at ten Digital Local Exchange (DLE) sites in the
country.
The number of processor instructions was derived for call usage types to derive a weighted processor average.
Billing records are generated only for outgoing calls and therefore do not represent all of the processing capacity.
An analysis of call usage has been determined based on data from Period 1 to 6. The total amount of Select Service
related processor usage is further refined relative to the quantity of Originating Calls and Own Exchange Calls
relative to the total which also includes Call Terminating any Tandem traffic.
The final weighted processor usage percentage for Select Services is then applied to the PG cost. The quantity of
processor cost relating to LE call set up and call duration is then re-based so that the new total equals 100%.
The signalling usage and cost relating to Other Operators has yet to be determined. Information from Network
Recording System (NRS) is downloaded showing destinations including those relevant to Other Operators can be
identified and compared to the total. Period 6 data is used. Signalling costs form part of the PG total costs but the
separate signalling cost is clearly identifiable so on this basis an apportionment is made from this PG to CR469 Intra
Building Circuits (Connections).
Data Source/s
Exchange Planning and Review System (EXPRES).
Billing Records.
Network Recording System (NRS).
Powerhouse.
See Appendix E for Component Destinations
PG286C
System X Local Exchange (LE) –Digital Line Termination (DLT) Capital
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to
the System X Digital Local Exchange (LE) Digital Line Termination.
The switch comprises both concentrator and processor functionality and is used for call set-up and call duration.
Methodology
The concentrator call related costs are attributed wholly to the local exchange concentrator CO214 Local Exchange
(LE) Concentrator Set-Up and CO215 Local Exchange (LE) Concentrator Duration. The costs are identified by the
Class of Work (CoW) to PG exhaustion process. This enables the relative proportions of concentrator and processor
costs to be identified.
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:
•
•
•
•
252
Host Core.
C7 Signalling Links.
2Mbit/s Systems.
Miscellaneous.
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the
number of 2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown
in Network Records System (NRS) and Processor Utilisation and Loading of Switch Equipment (PULSE) (See Data
Source section 9).
The next step is to determine the number of switches and switching elements within each switch that would be
required to provide such capacity if the switching functionality were optimally dimensioned. This gives the number
of switch elements of each type for the purposes of this analysis. It is necessary to carry out this step in the process
as switching assets is not always purchased and recorded on a switch element-by-element basis. Otherwise it
would not be possible to determine the relative split between set-up and duration costs
The aggregate cost within the network of each of these switch element is determined on the basis of LEMP2
contract prices i.e. the volume of each element is multiplied by the unit cost of each element. LEMP2 was the Local
Exchange Modernisation Programme. It set out the contract prices for the various switch elements and was as
negotiated with suppliers by BT’s procurement function. The LEMP2 contract is indicative of normal course of
business and covers both local and system X main Exchanges.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set-up
and call duration. This advice showing an analysis between set-up and duration will not change on a year by year
basis as the building elements of the asset remain a constant.
Certain elements support both functions
This overall process is illustrated below:
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of Call set-up is:
Loaded cost of call duration is:
P + [R x P/ (P+Q)] = M.
Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using Period 6 data. The relative costs of call set-up and call duration are therefore
expressed as percentages with these percentages being applied to the year-end (Period 12) PG costs to determine
the attribution to components.
This is illustrated below:
•
•
Percentage of processor costs relating to call set-up = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs
as opposed to concentrator costs and are used to attribute costs to Local Exchange Processor Set-Up CO212 and
Local Exchange Processor Duration CO210. However, the Digital Line Termination (DLT) cost relating to Other
Communications Providers (OCPs) also needs to be determined.
All of the above is based historic data until such time as the base is unfrozen. The procedures below are updated
each year and any changes mean that historic data is re-based to accommodate these.
Mid-year port information is downloaded from Network Recording System (NRS). This provides the origin and
destination of each 2Mbit/s port on every Local, Trunk and Main Exchange. This data can then be manipulated to
analyse where the ports are pointed, what type of switch, of which system type and the system type involved.
253
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The fraction of ports that point to Other Communications Providers (OCPs) can be identified as a fraction of the
total. This percentage is then pointed at the Interconnect Connections component CO469. The residual amount is
then re-based so that the new total equals 100% and is pointed to Local Exchange Call Set-Up and Local Exchange
Call Duration.
Data Source/s
Network Records System (NRS).
Exchange Planning and Review System (EXPRES).
See Appendix E for Component Destinations
PG287A
Local Exchange System X Switch Block
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to
the System X Digital Local Exchange Switch Block.
The switch comprises both concentrator and processor functionality, and is used for call set-up and call duration.
The concentrator call related costs are attributed wholly to the local exchange concentrator components CO214
Local Exchange Concentrator Set-Up and CO215 Local Exchange Concentrator Duration. The costs are identified by
the Class of Work (CoW) to PG exhaustion process. This enables the relative proportions of concentrator and
processor costs to be identified.
Methodology
The attribution of processor costs follows a number of steps.
The local exchange processor is analysed into its constituent elements:
•
•
•
•
Flexible Voice Platforms.
Alarm Utility Subsystems.
Network Interface Subsystems.
Analogue Junction Line Shelf.
This analysis is carried out on the basis of various capacity measures (such as the number of processing clusters, the
number of 2Mb switch ports and the number of signalling channels) actually present in the BT Network, as shown
in Exchange Planning and Review System (EXPRES) and Processor Utilisation and Loading of Switch Equipment
(PULSE) (See Data Source Section 9).
The next step is to determine the number of switches and switching elements within each switch that would be
required to provide such capacity if the switching functionality were optimally dimensioned. This gives the number
of switch elements of each type for the purposes of this analysis. It is necessary to carry out this step in the process
as switching assets are not always purchased and recorded on a switch element-by-element basis. Otherwise it
would not be possible to determine the relative split between set-up and duration costs.
The aggregate cost within the network of each of these switch elements is determined on the basis of Local
Exchange Modernisation Programme2 (LEMP2) contract prices i.e. the volume of each element is multiplied by the
unit cost of each element. LEMP2 was the Local Exchange Modernisation Programme. It set out the contract prices
for the various switch elements and is negotiated with suppliers by BT’s procurement function. The Local Exchange
Modernisation Programme2 (LEMP2) contract is indicative of normal course of business and covers both Local and
System X Main Exchanges.
The elements of the processor are assigned into four main blocks. Digital Line Termination (DLT), Switch Block,
Processor and Signalling. For this PG we are only concerned with the Switchblock.
Based on advice from switching suppliers, the function of each switch element is analysed as between call set up
and call duration.
254
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Certain elements support both functions. This overall process is illustrated below.
The cost of those switch elements that are common to both call set-up and call duration functions is loaded to the
cost of those functions pro-rata to their unloaded costs:
Loaded cost of call set up is: P + [R x P/ (P+Q)] = M.
Loaded cost of call duration is: Q + [R x Q/ (P+Q)] = N.
This analysis is prepared using Period 6 data. The relative costs of call set up and call duration are therefore
expressed as percentages, with these percentages being applied to the year-end (Period 12) PG costs to determine
the attribution to components.
This is illustrated below.
•
•
Percentage of processor costs relating to call set up = M/ (M+N) = M%.
Percentage of processor costs relating to call duration = N/ (M+N) = N%.
These percentages are then weighted for the relative proportion of the PG total cost represented by processor costs
as opposed to concentrator costs and are used to attribute costs to Local Exchange processor set up CO212 and
processor duration CO210.
The base is currently frozen.
Data Source/s
Network Records System (NRS).
Exchange Planning and Review System (EXPRES).
See Appendix E for Component Destinations
PG288A
System X Local Exchange Concentrator Call Set-Up
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Fixed Asset) costs relating to
the System X Digital Concentrator Call Set-Up which flows from Class of Work (CoW) LDX via PDTSYSXD (See Base
Methodology Directory Section 4).
The switch comprises both concentrator and processor functionality, and is used for call set-up and call duration.
Methodology
The processor call related costs (DLT, Switch Block and Processor and Signalling) are attributed to CO210 Local
Exchange processor duration and CO212 LE Processor set-up. Additional apportionment is made from the Local
Exchange DLT PG to Interconnect Connections and from Local Exchange Processor to Chargeable Services (Select
Services). The costs are identified by the CoW to PG exhaustion process. This enables the relative proportions of
concentrator and processor costs to be identified.
The attribution of Concentrator Call Set-Up costs follows a number of steps.
The procedures below are updated each year.
255
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The amount of concentrator usage for Select Service calls has to be determined. An extract of billing call record
information is gathered from a sample of 10 System X Local Exchanges and 10 AXE10 Local Exchanges analysed
into whether the record type is Select Service driven or not.
Only RT22s make use of the Concentrator Set-Up element of the switch assets and the fraction of these compared
to the total (RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34 record types were ignored in this calculation on the assumption that the Select Services to ordinary calls
without Select Services is in the same ratio for ISDN as for Analogue calls.
Billing records are generated only for outgoing calls and therefore do not represent all of the concentrator call setup capacity.
An analysis of billing records has been determined based on data from Period 1 to 6 (data source/s is billing records).
The total amount of Select Service related concentrator usage is further refined relative to the quantity of
Originating Calls and Own Exchange Calls in relation to the total which also includes Call Terminating and DLE
Transit.
The final weighted concentrator usage percentage for Select Services is then applied to the PG. This is further split
into the Select Services relating to Wholesale and Retail using Powerhouse volumes. The retail fraction is pointed at
CO290 OR Network Features (External) and the Wholesale fraction at CO291 OR Network Features (Internal).
The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO214 Local Exchange Concentrator
Set-Up.
The PG contains both Capital and Maintenance costs.
Data Source/s
Billing Records
Powerhouse Volumes
See Appendix E for Component Destinations
PG289A
System X Local Exchange (LE) Concentrator Call Duration
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation) and Balance Sheet (Asset) costs relating to System
X Local Exchange (LE) Digital Concentrator Call Duration which flows from Class of Work (CoW) LDX via PDTSYSXD
(Base Methodology Dictionary Section 4).
The System X switch comprises both concentrator and processor functionality, and is used for call set-up and call
duration.
Methodology
The processor call related costs (Digital Line Termination (DLT), Switch Block and Processor and Signalling) are
attributed to CO210 Local Exchange processor duration and CO212 LE Processor Set-Up. Additional
apportionments are made from the LE DLT PG to Interconnect Connections and from LE Processor to Chargeable
Services (Select Services). The costs are identified by the CoW to PG exhaustion process.
This enables the relative proportions of concentrator and processor costs to be identified. The attribution of
Concentrator Duration costs follows a number of steps.
The procedures below are updated each year.
The amount of concentrator usage for Select Service calls has to be determined.
256
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
An extract of billing call record information is gathered from a sample of 10 System X Local Exchanges and 10
AXE10 Local Exchanges analysed into whether the record type is Select Service driven or not.
Only RT22s make use of the Concentrator Duration element of the switch assets and the fraction of these compared
to the total (RT21+RT22+RT29) are used to determine the relative use of the Concentrator for Select Services.
RT34s are ignored in this calculation on the assumption that the Select Services to ordinary calls without Select
Services is in the same ratio for Integrated Services Digital Network (ISDN) as for Analogue calls. Billing records are
generated only for outgoing calls and therefore do not represent all of the concentrator call set-up capacity. An
analysis of billing records has been determined based on data from Period 1 to 6. The total amount of Select Service
related concentrator usage is further refined relative to the quantity of Originating Calls and Own Exchange Calls in
relation to the total which also includes Call Terminating and Call Originating FRIACO.
The final weighted concentrator usage percentage for Select Services is then applied to the PG cost. This is further
split into the Select Services relating to Wholesale and Retail using Powerhouse volumes. The retail fraction is
pointed at CO290 OR Network Features (External) and the wholesale fraction at CO91 OR Network Features
(Internal). The residual quantity of concentrator cost relating to Call Set-Up is pointed to CO215 LE Concentrator
Duration. The PG contains both Capital and Maintenance costs.
Data Source/s
Billing Records.
Powerhouse Volumes.
See Appendix E for Component Destinations
PG300T
Other Communications Provider (OCP) Point of Handover
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation) and the Balance Sheet (Asset value) costs
associated with providing customer sited point of handover equipment.
Methodology
Allocated 100% to the Point of Handover Electronics Component CO379.
Component C0379 apportions all costs associated with Other Communications Provider (OCP) Point of Handover.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG301T
Synchronous Digital Hierarchy (SDH) Tier 0 - Link
Description
This Plant Group (PG) captures depreciation costs and asset values of the link element of Global Backhaul bearers.
Bearers provide the transmission capability for the circuits that support BT’s Products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through
which it passes (see Appendix C - Bearer Diagram). A fibre cable between two nodes can support many bearers (a
bearer generally uses a pair of fibres whereas a fibre cable can have up to 240 fibres). The link element of a bearer
relates to the electronic such as Line Terminating Equipment and multiplexers equipment located at the nodes (i.e.
the end points of the bearer). Electronics equipment located at intermediate points along a bearer’s length forms
part of the length cost.
A bearer forms part of the network which is in turn split into several tiers. Tier 0 forms the apex of this structure and
is associated with international circuits between Digital International Switching Centres (DISCs) and Satellite earth
stations as well as international private circuits.
257
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Methodology
The Global backhaul bearers are used exclusively by International Carrier Services (ISC) to Frontier.
Allocated 100% to the ISC to Frontier Link Component CB367.
Data Source/s
Allocated directly, no data source required
See Appendix E for Component Destinations
PG311T,
PG313T,
PG315T,
PG321T,
PG323T,
PG325T,
PG331T,
PG333T,
PG335T,
PG341T,
PG343T,
PG345T,
PG351T,
PG353T,
PG355T,
PG359T,
PG381T,
PG383T,
PG385T
Synchronous Digital Hierarchy (SDH) Bearer Link
Description
These Plant Groups (PGs) capture the depreciation, maintenance and other overhead (e.g. accommodation) costs
and asset values associated with the link elements of Synchronous Digital Hierarchy (SDH) bearers.
Bearers provide the transmission capability for the circuits that support BT’s products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through
which it passes (see Appendix C Bearer Diagram) and refer to Core Transmission Circuit costing System (CTCS) in Data
Source Section 9). A fibre cable between two nodes can support many bearers (a bearer generally uses a pair of
fibres whereas a fibre cable can have up to 240 fibres). The link element of a bearer relates to the electronic such as
Line Terminating Equipment and multiplexers equipment located at the nodes (i.e. the end points of the bearer).
Electronics equipment located at intermediate points along a bearer’s length forms part of the length cost (see
Circuit Diagram in Section 9).
A bearer forms part of the network which is in turn split into several tiers in order to address the different needs of
different parts of the network (see Network Overview Diagram in Section 9).
•
•
•
•
•
Tier 0 is the highest level in the network, intended to handle international traffic.
Tier 1 is the long haul intricate or backbone network. It consists of 4/1 and 4/4 cross connect switches. A cell
or SuperCell is an additional ring between tiers 1 and 2.
Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two
separate Tier 1 nodes.
Tier 3 is the level used for Booster schemes.
Tier 4 is the access network for Synchronous Digital Hierarchy (SDH) Customers.
Marconi Synchronous Hierarchy (MSH) is the high capacity platform to cater for traffic at 140Mb and above.
Synchronous Digital Hierarchy (SDH) bearers have various transmission rates as indicated by the Synchronous
Transport Module (STM).
•
•
•
•
STM1 – 155Mbit/s.
STM4 – 622Mbit/s.
STM16 – 2.48Gbit/s.
STM64 – 10Gbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network
Components (circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an
analysis of the Core Transmission Circuit costing System (CTCS) database, which extracts information from
engineering databases. It provides details of the relationships between bearers and circuits, specifically:
•
The bearer equipment that a circuit ‘Hits’ along its route.
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together
with the length of these segments.
In general a bearer can support many circuits. For example a 155Mbit/s SDH bearer can support 63 2Mbit/s
circuits, 3 34Mbit/s circuits or a single 155Mbit/s circuit. The cost of an individual bearer is therefore apportioned
across all the segments of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of
the apportioned costs of all of the bearers over which the circuit is routed through the core network.
In addition to this, PG341T, PG343T and PG345T utilise the Core/Access split already derived in the PDTSDH base
as its input to derive the Core/Access split and a split across Access components from the Access base model,
applicable to the apportionment of these PGs to Components. This is to allocate the costs of electronics in the last
serving exchange to the Local end component.
258
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Factored Volume Calculation
The apportionment of cost is based on a factored volume which in turn is calculated by factoring the raw volume
figure by a usage factor:
Raw Volume
The link related asset costs of bearers (e.g. depreciation of multiplexers and termination equipment) are
apportioned on a raw volume based on the number of instances in which a type of circuit ‘hits’ a link asset in the
core network.
Usage Factor
This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit would have
a usage factor of one 63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a third.
The raw volume and usage factor both come from CTCS.
Data Source/s
Core Transmission Circuit costing System (CTCS) data for Period 6. Management believes this Period to be reflective
of the full year.
In addition to this, PG341T, PG343T and PG345T utilise the Core/Access split already derived in the PDTSDH base
as its input to derive the Core/Access split applicable to the apportionment of these PGs to Components.
See Appendix E for Component Destinations
PG350N
Synchronous Digital Hierarchy (SDH) Bearer Length – Inner Core fibre
Description
This Plant Group (PG) captures the depreciation costs and asset values of the length elements of SDH bearers.
Bearers provide the transmission capability for the circuits that support BT’s products.
A bearer consists of electronics located at intermediate nodes, together with a fibre cable and the duct through
which it passes (see Bearer Diagram refer to Core Transmission Circuit costing System (CTCS) in section 9). A fibre
cable between two nodes can support many bearers (a bearer generally uses a pair of fibres whereas a fibre cable
can have up to 240 fibres). The length element of a bearer relates to the fibre cable, duct and the repeating
equipment between the nodes.
A bearer forms part of the network which is in turn split into several tiers in order to address the different needs of
different parts of the network (see Network Overview)
•
•
•
•
•
•
Tier 0 is the highest level in the network, intended to handle international traffic.
Tier 1 is the long haul inter city or backbone network. It consists of 4/1 and 4/4 cross connect switches.
A cell or Supercell is an additional ring between tiers 1 and 2.
Tier 2 is the Regional network linking important cities and local towns. Every Tier 2 ring is dual parented on two
separate Tier 1 nodes.
Tier 3 is the level used for Booster schemes.
Tier 4 is the access network for SDH Customers.
Marconi Synchronous Hierarchy (MSH) is the high capacity platform to cater for traffic at 140mb and above.
SDH bearers have various transmission rates as indicated by the Synchronous Transport Module (STM):
•
•
•
•
STM1 – 155Mbit/s.
STM4 – 622Mbit/s.
STM16 – 2.48Gbit/s.
STM64 – 10Gbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network
Components (circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an
analysis of the CTCS database, which extracts information from engineering databases. It provides details of the
relationships between bearers and circuits, specifically:
•
•
The bearer equipment that a circuit ‘Hits’ along its route.
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together
with the length of these segments.
259
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
In general a bearer can support many circuits. For example a 155Mbit/s SDH bearer can support 63 2Mbit/s circuits,
three 34Mbit/s circuits or a single 155Mbit/s circuit. The cost of an individual bearer is therefore apportioned across
all the segments of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the
apportioned costs of all of the bearers over which the circuit is routed through the core network.
Factored Volumes Calculation
The apportionment of cost is based on a factored volume which in turn is calculated by factoring the raw volume
figure by a usage factor:
Raw Volume
The length related asset costs of bearers (e.g. depreciation of fibre cable and duct) are apportioned on a raw volume
based on the length of the circuit segment carried by a bearer.
Usage Factor
This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit would have
a usage factor of one 63rd of a 155Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a third.
Data Source/s
Core Transmission Circuit costing System (CTCS) data for Period 6. Management believes this Period is reflective of
the full year.
See Appendix E for Component Destinations
PG361T,
PG365T,
PG367T,
PG371T,
PG373T,
PG375T,
PG377T,
PG379T,
PG399T
Plesiochronous Digital Hierarchy (PDH) Bearer Link
Description
These Plant Groups (PGs) capture the depreciation, maintenance and other overhead costs and asset values of the
link elements of Plesiochronous Digital Hierarchy (PDH) bearers.
Bearers provide the transmission capability for the circuits that support BT’s Products.
Bearers consists of electronics located at intermediate nodes, together with a cable and the duct through which it
passes (see Appendix C -Bearer Diagram) and refer to CTCS (Core Transmission Circuit costing System) in Data
Source Section 9). The link element of a bearer relates to the electronic equipment located at the nodes such as Line
Terminating Equipment and multiplexers.
PDH bearers are predominantly used in the Public Switched Telephone Network (PSTN) and form the
interconnection between Digital Main Switching Units (DMSUs) and Tandem exchanges.
PDH bearers have various transmission rates.
•
•
•
•
•
2Mbit/s.
8Mbit/s.
34Mbit/s.
140Mbit/s.
565Mbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network
Components (circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an
analysis of the CTCS database, which extracts information from engineering databases. It provides details of the
relationships between bearers and circuits, specifically.
•
•
The bearer equipment that a circuit ‘Hits’ along its route.
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together
with the length of these segments.
In general a bearer can support many circuits. For example a 140Mbit/s PDH bearer can support 64 2Mbit/s circuits,
four 34Mbit/s circuits or a single 140Mbit/s circuit. The cost of an individual bearer is therefore apportioned across
all the segments of circuits carried by the bearer and the cost of a single end-to-end circuit is made up of the
apportioned costs of all of the bearers over which the circuit is routed through the core network.
Factored Volumes Calculation
The apportionment of cost is based on a factored volume which in turn is calculated by factoring the raw volume
figure by a usage factor.
260
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Raw Volume
The link related asset costs of bearers (e.g. depreciation of multiplexers and termination equipment) are
apportioned on a raw volume based on the number of instances in which a type of circuit ‘hits’ a link asset in the
core network.
Usage Factor
This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit would have
a usage factor of one 64th of a 140Mbit/s bearer whereas a 34Mbit/s circuit would have a usage factor of a quarter.
Data Source/s
CTCS (Core Transmission Circuit costing System) Database for Period 6 Management believes this Period to be
reflective of the full year.
See Appendix E for Component Destinations
PG391T,
PG393T,
PG395T
Plesiochronous Digital Hierarchy (PDH) Radio Bearer Link
Description
These Plant Groups (PGs) capture the depreciation costs and asset values of the link elements of Plesiochronous
Digital Hierarchy (PDH) Radio bearers.
Radio Bearers provide the core microwave radio transmission capability for the circuits that support BT’s Products.
A Radio bearer consists of electronics located at intermediate nodes. The link element of a bearer relates to the
electronic equipment located at the nodes such as masts, antennas and radio electronics.
Radio bearers are predominantly used for high capacity, city to city routes (e.g. London to Birmingham) and in
inaccessible areas (such as remote parts of Scotland) where cable costs would be prohibitive.
PDH Radio bearers have various transmission rates.
•
•
•
8Mbit/s.
34Mbit/s.
140Mbit/s.
Methodology
The depreciation costs and asset values of bearer related assets are driven from the PG (bearer) to Network
Components (circuits) based on the utilisation of the bandwidth of a bearer by a circuit. This data is derived from an
analysis of the Core Transmission Circuit costing System (CTCS) database, which extracts information from
engineering databases. It provides details of the relationships between bearers and circuits, specifically.
•
The bearer equipment that a circuit ‘Hits’ along its route.
The factored volumes (reflecting relative usage of capacity) of the circuit segments carried by a bearer together
with the length of these segments.
In general a bearer can support many circuits. For example a 140Mbit/s PDH Radio bearer can support 64 2Mbit/s
circuits, four 34Mbit/s circuits or a single 140Mbit/s circuit. The cost of an individual bearer is therefore
apportioned across all the segments of circuits carried by the bearer and the cost of a single end-to-end circuit is
made up of the apportioned costs of all of the bearers over which the circuit is routed through the core network.
Factored Volumes Calculation
The apportionment of cost is based on a factored volume which in turn is calculated by factoring the raw volume
figure by a usage factor.
Raw Volume
The link related asset costs of bearers (e.g. depreciation of multiplexers and termination equipment) are
apportioned on a raw volume based on the number of instances in which a type of circuit ‘hits’ a link asset in the
core network.
Usage Factor
This is the proportion of the total bandwidth of a bearer used by a circuit. For example a 2Mbit/s circuit would have
a usage factor of one 64th of a 140Mbit/s - radio bearer whereas a 34Mbit/s circuit would have a usage factor of a
quarter.
The raw volume and usage factor both come from the Core Transmission Circuit costing System (CTCS).
Data Source/s
261
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Core Transmission Circuit costing System (CTCS) data for Period 6. Management believes this Period to be reflective
of the full year.
See Appendix E for Component Destinations
PG400T
ACE (Access Control Equipment)/ENA (Equipment Network Access) Core Equipment
Description
This Plant Group (PG) captures the network transmission costs associated with Access Control Equipment (ACE)/
Equipment Network Access (ENA) core equipment. This equipment is used to supply KiloStream.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocated 100% to the PC Rental 64kb Link per link Component CO381.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG401A
Netstream Equipment
Description
This Plant Group (PG) captures the costs associated with Netstream.
Netstream is a Retail Product offering that enables mobile network operators (MNO’s) to backhaul their traffic from
their cell sites (satellite sites) to their core networks (at major customer sites). Netstream 16 LongLines offers a
number of pricing options to MNO’s for circuits between small satellite sites and major sites.
Methodology
To ensure that the Netstream services receive equipment depreciation, specific equipment costs have been
identified within the Class of Work (CoW) SDH and have been directly attributed to the dedicated Netstream plant
group PG401A. Costs are then allocated 100% to the Netstream Equipment Component CO401.
Data Source/s
Allocated directly no data sources required.
See Appendix E for Component Destinations.
PG405A
DMS100 Call Centre Switches
Description
This Plant Group (PG) captures the equipment costs associated with DMS100 Call Centre Switches. The DMS100
(Digital Multiplexer System) is a digital facility that processes OA (Operator Assistance) telephone calls
Methodology
Allocated 100% to the DMS100 Component CO405.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG407A
Carrier Pre Selection (CPS) Operator Set-Up
Description
This Plant Group (PG) captures the cost of Carrier Pre Selection (CPS) Operator Set Up. CPS is a European Union
regulatory project which allows customers to select to have certain call types carried by another network operator.
Depreciation, Pay and Fixed Assets are the main type of costs within this PG.
Methodology
Allocated 100% to the Carrier Pre Selection Operator Set-Up Component CO407.
Data Source/s
Allocated directly, no data source/s required.
262
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
See Appendix E for Component Destinations
PG408A
Carrier Pre Selection (CPS) Customer Set-Up
Description
This Plant Group (PG) captures the cost of Carrier Pre Selection (CPS) Customer Set Up. CPS is a European Union
regulatory project which allows customers to select to have certain call types carried by another network operator.
Depreciation, Pay and Fixed Asset are the main type of costs in this PG.
Methodology
Allocated 100% to the Carrier Pre Selection Customer Set-Up Component CO408.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG411C
Analogue Electric Capital
Description
This Plant Group (PG) captures the capital cost of dedicated plant associated with Private Analogue Circuits and
allied specialised applications.
Types of cost include depreciation and Fixed Asset Gross Book Value (GBV)
Methodology
Allocated 100% to the PC Rental Analogue Link Local End Component CO431.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG411P
Analogue Connections (NBC)
Description
This Plant Group (PG) captures the connection costs of providing analogue circuits for National Business Customers.
The work takes place primarily within the transmission network.
Types of cost include stores and pay costs.
Methodology
Allocated 100% to the Analogue PC link Connection circuit provision Component CO411.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG412C
64K Electronics Capital
Description
This Plant Group (PG) captures the capital costs associated with 64k (Kilostream) Private Circuit’s electronics.
Types of cost include current non pay, depreciation etc
Methodology
Allocated 100% to the PC Rental 64kbit link local end Component CO432.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
263
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG412M
64K Electronics Maintenance
Description
This Plant Group (PG) captures the maintenance costs associated with 64k (Kilostream) Private Circuits.
Types of cost include stores and pay costs.
Methodology
Allocated 100% to the PC rental 64Kbit link local end Component CO432.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG412P
64k Connections
Description
This Plant Group (PG) captures the connection costs of providing KiloStream circuits. The work takes place primarily
within the transmission network and includes provision of private circuits.
Types of cost include stores and pay costs.
Methodology
Costs are apportioned to components CO417 64kbit link connection circuit provision and CO418 64Kbit PC
rearrangements based on volumes of each activity from Powerhouse and COSMOSS.
Data Source/s
Powerhouse.
COSMOSS.
See Appendix E for Component Destinations
PG413P
Private Circuits Megastream and IX Conns
Description
This Plant Group (PG) captures the connection costs of providing 2 MegaStream circuits of 2Mb or higher
bandwidth based circuits. Products that are including are MegaStream, Interconnect and intra building circuits
(IBC’s). The work takes place primarily within the transmission network and includes re-arrangement and transfers
of these type digital circuits.
Types of costs include pay, stores used and general equipment.
Methodology
Costs from this PG are apportioned to components based on a price-weighted volume of circuits provided during
the year. The volumes are sourced from Powerhouse and Customer Oriented System for the Management of Special
Services (COSMOSS) and prices from the Carrier Price List. The price-weighting takes into account the difference in
providing a connection with that of carrying out a re-arrangement or a transfer. From these price-weighted
volumes usage factors are calculated and applied to the original Product volumes for CO453 and CO469 based
against a usage factor of one which is applied to Customer Sited Interconnect (CSI) connections. These volumes are
used to split the in year costs booked against CoWs CPDM,CPDI and PSAA to Components CO453 and CO469. To
this, additional spend from CoW CPDS, is added in for CO413. This total apportionment of these costs is used for the
base.
Data Source/s
Powerhouse and COSMOSS for year end volumes.
Carrier Price List for the prices.
See Appendix E for Component Destinations
264
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG414M
Private Circuits International Analogue IPLC Cur
Description
This Plant Group (PG) captures the maintenance costs associated with International Analogue Private Circuits.
Methodology
Allocated 100% to the Analogue IPLC Component CO415.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG415M
Private Circuits International Digital IPLC Current
Description
This Plant Group (PG) captures current costs associated with Private Circuits International Digital International
Private Leased Circuit (IPLC).
Digital International Private Leased Circuits are communication channels between two fixed locations dedicated to
a particular customer or pair of customers.
Types of cost include current pay costs
Methodology
Allocated 100% to the Digital IPLC Component CO414.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG421S
Private Circuits Analogue Installation (National Business Customer)
Description
This Plant Group (PG) captures the connection costs in providing and rearranging Analogue circuits for National
Business Customers. The work takes place primarily within the customer's premises.
Types of cost include stores and pay costs.
Methodology
Allocated 100% to the Analogue PC installation Component CO421.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG422S
Private Circuits Kilostream Installation (National Business Customer)
Description
This Plant Group (PG) captures the connection costs in providing and rearranging Kilostream circuits. The work takes
place primarily within the customer's premises and includes provision and rearrangement of circuits.
Types of cost include stores and pay costs.
Methodology
Costs are apportioned to components CO417 64kbit link connection circuit provision and CO418 64Kbit PC
rearrangements based on volumes of each activity from Powerhouse and COSMOSS.
Data Source/s
Powerhouse.
COSMOSS.
See Appendix E for Component Destinations
265
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG426S
Private Circuit Access Lines Installation
Description
This Plant Group (PG) captures costs associated with Private Circuit Access Line Installation.
Types of cost include stores and pay costs.
Methodology
Allocated 100% to the Analogue PC installation Component CO421.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG440C
Access Synchronous Digital Hierarchy (ASDH) 4x2Mbit/s Capital
Description
This Plant Group (PG) captures the depreciation costs for Access Synchronous Digital Hierarchy (ASDH) 4x2 Bearer/
Line systems, that is, electronics equipment for a Bearer/Line System capacity of 4x2Mbit/s.
Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these Bearer/Line Systems.
These line systems are used in the provision of 2Mbs private circuits, interconnection circuits, PPCs (Partial Private
Clients) and SMDS (Switched MultiMegabit Data Services) and the PG costs are attributed to the components that
are used in the provision of these services.
Core Transmission Circuit Costing System (CTCS) is a circuit inventory system, which holds a count of the number of
each of circuit type that utilises each equipment type. In this case, it records the number of the above circuit types
that use 4x2 line systems.
Data Source/s
The data source for the number of circuits is the CTCS for Period 6. Management believes this period to be reflective
of the full year.
See Appendix E for Component Destinations
PG440M
Access Synchronous Digital Hierarchy (ASDH) 4x2Mbit/s Maintenance
Description
This Plant Group (PG) captures the costs associated with maintenance of Access Synchronous Digital Hierarchy
(ASDH) 4x2 Line systems, i.e. electronics equipment that can carry up to 4x2Mbit/s bearers.
Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems and follows the attribution of the Capital costs (PG440C).
This assumes that a line system with only (for example) private circuits connected to it has the same maintenance
profile as the same line system with only (for example) interconnect circuits. This assumption is consistent with BT’s
actual experience of maintenance in this area.
Data Source/s
Core Transmission Circuit costing System (CTCS) for Period 6. Management believes this period to be reflective of
the full year.
See Appendix E for Component Destinations
266
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG441C
Access Synchronous Digital Hierarchy (ASDH) 16x2Mbit/s Capital
Description
This Plant Group (PG) captures the depreciation costs for Access Synchronous Digital Hierarchy (ASDH) 16x2
Bearer/Line systems, electronics equipment for a Bearer/Line System capacity of 16x2Mbit/s.
Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these Bearer/Line Systems.
These line systems are used in the provision of 2Mbs private circuits, interconnection circuits, PPCs (Partial Private
Clients) and SMDS (Switched MultiMegabit Data Services) and the PG costs are therefore attributed to the
components that are used in the provision of these services.
Core Transmission Circuit costing System (CTCS) is a circuit inventory system, which holds a count of the number of
each circuit type that utilises each equipment type. In this case, it records the number of the above circuit types that
use 16x2 line systems.
Data Source/s
The data source for the number of circuits is CTCS for Period 6 Management believes this period to be reflective of
the full year.
See Appendix E for Component Destinations
PG441M
Access Synchronous Digital Hierarchy (ASDH) 16x2Mbit/s Maintenance
Description
This Plant Group (PG) captures the costs associated with maintenance of Access Synchronous Digital Hierarchy
(ASDH) 16x2 Line systems, i.e. electronics equipment that can carry up to 16x2Mbs bearers.
Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers using these line systems and follows the attribution of the Capital costs (PG441C).
This methodology assumes that a line system with only (for example) private circuits connected to it has the same
maintenance profile as the line system with only (for example) interconnect circuits. This assumption is consistent
with BT’s actual experience of maintenance in this area.
Data Source/s
Core Transmission Circuit costing System (CTCS) for Period 6. Management believes this period to be reflective of
the full year.
See Appendix E for Component Destinations
267
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG442C
2Mbit/s Copper Electric Capital
Description
This Plant Group (PG) captures the depreciation costs for 2Mbit/s copper Bearer/Line systems, i.e. electronics
equipment that supports 2Mbs circuits carried over copper pairs. The circuits are almost wholly 2Mbs private
circuits, but there is a small number of interconnect circuits carried over copper.
Methodology
The attribution of the PG costs to components is based on the number of circuits of each type that is carried over
bearers that use these line systems.
Total 2Mbs circuit over copper volumes are obtained from Powerhouse.
The number of interconnect circuits is also taken from Powerhouse, which records the number of such circuits,
however the number of these circuits travelling over copper is calculated separately. To do this Core Transmission
Circuit costing System (CTCS) data is used to determine the split of circuits going over copper, fibre and radio.
This percentage is then applied to the Powerhouse total 2Mbs circuit volume to determine the number of
interconnect circuits using 2Mbit/s copper Bearer/line systems.
The PG costs are then attributed to components pro-rata to these volumes.
This is illustrated below.
Determine interconnect volumes
From Powerhouse:
•
Total number of circuits carried over copper, X.
From CTCS:
•
Total number of Interconnect circuits carried over copper, Y.
Therefore percentage of circuits carried over copper represented by interconnect circuits = Y / X = Z%.
Determine split of Powerhouse volumes between interconnect and private circuits
Take total volume of 2Mbs circuits over copper = A.
Determine volume of interconnect circuits = A x Z% = B.
Then volume of 2Mbs private circuits = A – B.
Data Source/s
Powerhouse volumes and Core Transmission Circuit costing System (CTCS) data - Period 6. Management believes
this period to be reflective of the full year.
See Appendix E for Component Destinations
PG442M
2Mbit/s Copper Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 2Mbit/s copper Bearer/Line systems, i.e. electronics
equipment that supports 2Mbit/s circuits carried over copper pairs. The circuits are almost wholly 2Mbit/s Private
Circuits, but there is a small number of interconnect circuits carried over copper.
Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems and follows the attribution of the Capital costs (see PG442C).
This assumes that a line system with only (for example) private circuits connected to it has the same maintenance
profile as the line system with only (for example) interconnect circuits. This assumption is consistent with BT’s actual
experience of maintenance in this area.
Data Source/s
Core Transmission Circuit costing System (CTCS) data for Period 6. Management believes this period to be reflective
of the full year.
See Appendix E for Component Destinations
268
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG443C
2Mbit/s Fibre Electric capital
Description
This Plant Group (PG) captures the depreciation costs for 2Mbit/s Bearer/Line systems i.e. electronics equipment
that supports 2Mbs circuits carried over fibre.
Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems. As PG443C covers both 2Mb and 4x2Mb circuits the volume of each type
of circuit is weighted by the cost of the relevant electronics.
These line systems are used in the provision of 2Mbs private circuits, interconnection circuits, PPCs (Partial Private
Circuits) and SMDS (Switched MultiMegabit Data Services) and the PG costs are therefore attributed to the
components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the number of the above circuit types that use 2Mbs line systems.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
PG443M
2Mbit/s Fibre Electric Maintenance
Description
This Plant Group (PG) Captures the maintenance costs for 2Mbit/s Bearer/Line systems i.e. electronics equipment
that supports 2Mbs circuits carried over fibre.
Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems. These line systems are used in the provision of 2Mbs private circuits,
interconnection circuits, PPCs (Partial Private Clients) and SMDS (Switched MultiMegabit Data Services) and the PG
costs are therefore attributed to the components that are used in the provision of these services.
This base follows the attribution of the Capital costs (see PG443C). This assumes that a line system with only (for
example) private circuits connected to it has the same maintenance profile as the same line system with only
interconnect circuits (for example). This assumption is consistent with BT’s actual experience of maintenance in this
area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the number of the above circuit types that use 2Mbs line systems.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
269
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG444C
34Mbit/s Electric Capital
Description
This Plant Group (PG) Captures the depreciation costs for 34Mbit/s Bearer/Line systems i.e. electronics equipment
on which circuits with a bandwidth of up to and including 34Mbit/s can travel over.
Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried
over 34Mbs bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore
attributed to the components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the total number of the above circuit types that use 34Mbs line systems. Circuits for
34Mbit/s and above are taken from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the
balance of total bearer volumes less the volume of 34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 34Mbs line system
can support 1x34Mbit/s circuit or 16x2Mbit/s circuits. So for example the number of 2Mbit/s circuits is therefore
weighted by a factor of 16, to reflect the capacity utilisation, and express the number of 2Mbs circuits in terms of
their 34Mbit/s equivalent.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
PG444M
34Mbit/s Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 34Mbit/s Bearer/Line systems i.e. electronics equipment
that supports 34Mbs circuits carried over fibre.
Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems and follows the attribution of the Capital costs (see PG444C).
This assumes that a line system with only (for example) 2Mbs private circuits connected to it has the same
maintenance profile as the same line system with only (for example) 34Mbs circuits. This assumption is consistent
with BT’s actual experience of maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the total number of the above circuit types that use 34Mbs line systems. Circuits for
34Mbit/s and above are taken from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the
balance of total bearer volumes less the volume of 34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 34Mbit/s line system
can support 1x34Mbit/s circuit or 16x2Mbit/s circuits. So for example the number of 2Mbit/s circuits is therefore
weighted by a factor of 16, to reflect the capacity utilisation, and express the number of 2Mbs circuits in terms of
their 34Mbit/s equivalent
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
270
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG445C
140Mbit/s Electric Capital
Description
This Plant Group (PG) captures the depreciation costs for 140Mbit/s Bearer/Line systems i.e. electronics equipment
on which circuits with a bandwidth of up to and including 140Mbit/s can travel over.
Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried
over 140Mbit/s bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore
attributed to the components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the total number of the above circuit types that use 140Mbs line systems. Circuits for
34Mbit/s and above are taken from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the
balance of total bearer volumes less the volume of 34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 140mbs line system
can support one 140Mbs circuit or four 34Mbs circuits, or 63 2Mbit/s circuits, or some combination of 34 and
2Mbit/s circuits. The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 63, to reflect the
capacity utilisation, and express the number of 34Mbs circuits in terms of their 140Mbit/s equivalent. Similarly, the
number of 34Mbit/s circuits is weighted by a factor of four.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
PG445M
140Mbit/s Fibre Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 140Mbit/s Bearer/Line systems i.e. electronics equipment
that supports 140Mbit/s circuits carried over fibre.
Types of cost include stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems and follows the attribution of the Capital costs (see PG445C).
This assumes that a line system with only 2Mbit/s private circuits connected to it has the same maintenance profile
as the same line system with only 34Mbit/s circuits. This assumption is consistent with BT’s actual experience of
maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the total number of the above circuit types that use 140Mbs line systems. Circuits for
34Mbit/s and above are taken from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the
balance of total bearer volumes less the volume of 34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 140Mbs line system
can support 1 140Mbs circuit or four 34Mbs circuits, or 63 2Mbit/s circuits, or some combination of 34 and 2Mbit/
s circuits. The number of 2Mbit/s interconnect circuits is therefore weighted by a factor of 63, to reflect the capacity
utilisation, and express the number of 34Mbit/s circuits in terms of their 140Mbs equivalent. Similarly, the number
of 34Mbit/s circuits is weighted by a factor of four.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
271
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG446C
622Mbit/s Electric Capital
Description
This Plant Group (PG) captures the depreciation costs for 622Mbit/s Bearer/Line systems i.e. electronics equipment
on which circuits with a bandwidth of up to and including 622Mbit/s can travel over.
Types of cost include depreciation, stores and pay costs.
Methodology
The attribution of the PG costs to components is based on the number of bandwidth specific circuits that are carried
over 622Mbit/s bearers/Line Systems.
These line systems are used to provide a medium for the circuits to travel over and the PG costs are therefore
attributed to the components that are used in the provision of these services.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the total number of the above circuit types that use 622Mbs line systems. Circuits for
34Mbit/s and above are taken from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the
balance of total bearer volumes less the volume of 34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 622Mbit/s line
system can support one 622Mbit/s circuit, four 140Mbs circuits, 16 34Mbit/s circuits, or 252 2Mbit/s circuits, or
some combination of 140, 34 and 2Mbit/s circuits. The number of 2Mbit/s interconnect circuits is therefore
weighted by a factor of 252, to reflect the capacity utilisation, and express the number of these circuits in terms of
their 622Mbit/s equivalent. Similarly, the number of 140Mbit/s circuits is weighted by a factor of four and the
number of 34Mbit/s circuits is weighted by a factor of 16.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
PG446M
622Mbit/s Electric Maintenance
Description
This Plant Group (PG) captures the maintenance costs for 622Mbs Bearer/Line systems, electronics equipment that
supports 622Mbs circuits carried over fibre.
Methodology
The attribution of the PG costs to components is based on the number of circuits of different types that are carried
over bearers that use these line systems and follows the attribution of the Capital costs (see PG446C).
This assumes that a line system with only (for example) 2Mbs private circuits connected to it has the same
maintenance profile as the same line system with only (say) 34Mbs circuits. This assumption is consistent with BT’s
actual experience of maintenance in this area.
The data source for the number of circuits is Core Transmission Circuit costing System (CTCS). In summary, this is a
circuit inventory system, which holds a count of the number of each of circuit type that utilises each equipment
type. In this case, it records the total number of the above circuit types that use 622Mbs line systems. Circuits for
34Mbit/s and above are taken from CTCS circuit volumes, whereas the 2Mbit/s volumes are derived from the
balance of total bearer volumes less the volume of 34Mbit/s and above circuits.
However, it is necessary to take into account the different capacity utilisation of each circuit. A 622Mbs line system
can support 1 622Mbs circuit, 4 140Mbs circuits, 16 34Mbs circuits, or 252 2Mbs circuits, or some combination of
140, 34 and 2Mbs circuits. The number of 2Mbs interconnect circuits is therefore weighted by a factor of 252, to
reflect the capacity utilisation, and express the number of these circuits in terms of their 622Mbs equivalent.
Similarly, the number of 140Mbs circuits is weighted by a factor of 4 and the number of 34Mbs circuits is weighted
by a factor of 16.
Data Source/s
The data source for the number of circuits is CTCS.
Circuit numbers are based on Period 6 and are believed by management to be representative of the full year.
See Appendix E for Component Destinations
272
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG447A
Shorthaul Data Services Electronics
Description
This Plant Group (PG) captures costs associated with the dedicated plant connected with the Short Haul Data
Services (SHDS) Products and is wholly assigned to the SHDS components.
Where customers are using Local Area Networks (LAN) to access and exchange data at one site, SHDS Products
enables them to extend the LAN to other sites.
Types of cost include depreciation and stores costs.
Methodology
Allocation to Component CO448 WES/LES Electronics, Component CO449 BES Electronics and Component CT453
BNS Electronics using volumes from Powerhouse weighted by the cost of the electronics from the Stores Catalogue.
Data Source/s
Powerhouse Rental volumes at Period 12, Connections volumes at P12 and the Automatic Supply Chain (ASC)
Stores Catalogue.
See Appendix E for Component Destinations
PG461A
Private Circuits Test and Maintenance System
Description
This Plant Group (PG) captures the costs associated with Private Circuit maintenance and testing work carried out in
the Work Manager Control Centres. It includes jeopardy management of jobs, Work Manager Helpdesk and
administration costs.
Types of cost include non-ETG pay costs.
Methodology
Allocated 100% to the Private Circuit test system Component CO461.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG462A
Private Circuits Customer Premises Equipment
Description
This Plant Group (PG) captures the cost of dealing with Private Circuit maintenance and faulting work in customer
premises on analogue private circuits and access lines.
Types of cost include stores and pay costs.
Methodology
Allocated 100% to the OpenReach Private Circuit Customer Premises Component CO462.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
273
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG463A
Private Circuits Testing
Description
This Plant Group (PG) captures the cost of dealing with Private Circuit maintenance and testing carried out in the
Work Manager Control Centres.
It includes jeopardy management of jobs, Work Manager Helpdesk and administration costs. It also captures the
cost of time spent by exchange maintenance people in co-operation with field people for line test in order to
localise a fault.
Types of cost include non-ETG pay costs.
Methodology
Allocated 100% to the OpenReach Private Circuit Testing Component CO463.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG483A
Flexible Bandwidth Services
Description
This Plant Group (PG) captures the costs associated with the Flexible Bandwidth Services (FBS) Product. The FBS
product offers a flexible private virtual network providing the customer with both re-routing, on demand, to predetermined destinations and band width flexibility within agreed limits.
Types of cost include depreciation costs.
Methodology
Allocated 100% to the Flexible Bandwidth Services Component CO483.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG502B
Selling, General and Administration (SG&A) Openreach Sales and Product Management
Description
This Plant Group (PG) captures the captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed
Asset, Gross Book Value (GBV) costs associated with Organisational Unit Code (OUC) BP. BP is the Sales and Product
Management division of Openreach. As the various sub-teams support specific services, their costs cannot be
spread on a Direct pay or revenue basis.
Methodology
Allocated 100% to the Sales product management Component CP502.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG504B
Number Portability Operational Management
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
274
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
In common with all European Communication Providers (CPs) BT is obliged to enable customers to port their
numbers to other CPs, this being a requirement of the European Numbering Directive. This facility enables a
telephone customer to retain their phone number if they switch to another CP. The main direct CoW is JK (Software
Jumpering).
Methodology
A breakdown of the headcount of each team is obtained from the BM Finance team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes.
This PG specifically captures the costs of the Number Portability Operational Management team within OUC BM.
Allocates 100% to the Number Portability Set-up costs Component CO732.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse P12.
See Appendix E for Component Destinations
PG505A
Selling, General and Administration (SG and A) Private Circuits
Description
This Plant Group (PG) captures the Profit and Loss (Pay etc) and Balance Sheet (Fixed Asset) cost of the Selling,
General and Administration activity in Wholesale Markets supporting Private Circuits.
BT Private Circuits are used for customers who want to link two or more business sites throughout the UK. A
customer rents a constant end-to-end connection, regardless of traffic. They provide instant connection,
guaranteed un-contended symmetrical bandwidth, no dialling, no waiting and no engaged signals. BT digital
private circuits offer faster transmission speeds from 2.4kbit/s to 622Mbit/s, ideal for higher volumes of voice and
data traffic with high quality results for a mix of voice, data and image traffic. They are a practical way of handling
time critical, high speed data transmissions.
Methodology
Costs are apportioned based on the Full Time Employee (FTE) applicable to each Product as per the SG & A survey
responses. The survey collects data on all relevant staff across a range of teams. It seeks to allocate each team's
resource across the whole year. Results across all of the surveyed teams are then aggregated in order to compile the
base. The base is entered by way of a percent allocation, but this can be translated into an underlying headcount
and traced back to the contributing teams.
Data Source
A yearly Selling, General and Administration survey carried out in December/January each year. All applicable teams
are surveyed from within Wholesale Markets. Management believe this to be reflective of a full year.
See Appendix E for Component Destinations
PG506N
Selling, General and Administration (SG&A) Partial Private Circuits (PPCs) - Wholesale
Description
This Plant Group (PG) captures the Profit and Loss (Pay, etc) and Balance Sheet (Fixed Assets, etc) costs of the
Selling, General and Administration activity in BT Wholesale and Openreach supporting the Partial Private Circuits
Products.
A Partial Private Circuit (PPC) is a service that has the attributes of a Wholesale half circuit. The PPC routes from the
network Point of Presence (PoP) by means of Point of Handover (PoH) between an Annex II operator’s network and
the BT network. A path is then set up across the BT network to the 3rd party customers to supply an end-to-end
path at the appropriate bandwidth.
Methodology
Primarily allocates directly to SG&A Partial Private Circuits component CO506, but elements are also driven to the
Wholesale Extension Services (WES) and Backhaul Extension Services (BES) components CO444 and CO445. The
split between the three components is determined by surveys of the teams across BT that work on the underlying
Products.
Allocates 100% to the SG & A partial private circuits Component CO506.
275
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
Survey of teams that work on the underlying Products for P9.
See Appendix E for Component Destinations
PG507N
Selling, General and Administration (SG&A) Wholesale Access
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc) and Balance Sheet (Fixed Asset etc) cost
of the Selling, General and Administration activity in Wholesale markets supporting Wholesale Access.
Wholesale Access is a BT Public Switched Telephone Network (PSTN) voice Service Provider (SP) product, which
enables Service Providers (SP’s) to offer their own branded telephony service to their own customers using the BT
network.
BT will provide, repair and maintain these lines. BT will provide a consolidated bill to the Service Provider (SP) for all
services.
The Service Provider (SP) sets their own prices and bills their End Users.
Methodology
Allocates 100% to the SG&A Wholesale Access Component CL507.
Data Source
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG508N
Selling, General and Administration (SG&A) Retail Access (Wholesale)
Description
This Plant Group (PG) captures the Profit and Loss (Pay etc) and Balance Sheet (Fixed Asset) cost of the Selling,
General and Administration activity in Wholesale markets supporting Retail Access.
Retail Access is a BT Public Switched Telephony Network (PSTN) voice Service Provider (SP) Product, which enables
Retail to offer branded telephony service to their customers using the BT network.
Methodology
Allocates 100% to the SG&A Retail Access Component CL508.
Data Source
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG509N
Selling, General and Administration (SG&A) General (Wholesale)
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation etc) and Balance Sheet (Fixed Asset) cost of
the Selling, General and Administration activity in Openreach and Wholesale Markets supporting General Access.
General access is the residue of access connectivity that is not treated in any of the above Plant Groups (PGs).
Methodology
Costs are apportioned based on the Full Time Employee (FTE) applicable to each Product as per the SG&A survey
responses. The survey collects data on all relevant staff across a range of teams. It seeks to allocate each team's
resource across the whole year. Results across all of the surveyed teams are then aggregated in order to compile the
base. The base is entered by way of a percent allocation, but this can be translated into an underlying headcount
and traced back to the contributing teams.
Data Source
A yearly Selling, General and Administration survey carried out in December/January each year. All applicable teams
are surveyed from within Openreach and Wholesale Markets. Management believe this to be reflective of a full year.
See Appendix E for Component Destinations
276
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG511M
Interconnect Other Communications Provider (OCP) Specific Plant Current
Description
This Plant Group captures the costs associated with Interconnecting with Other Communications Providers (OCPs)
for building activity.
Costs include Profit and Loss (Non ETG Pay, Stores, and Depreciation etc) and Balance Sheet (Fixed Assets).
Methodology
Allocates 100% to the Intra Building Circuit (IBC) rental Component CO470.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG511P
Interconnect OCP Circuit Provision
Description
This Plant Group (PG) captures provision costs specific to Interconnect Operational Capacity Planning (OCP) circuits.
Interconnect OCP circuits are circuits which connect the BT Network to the networks of Other Communications
Providers (OCPs).
Methodology
Allocates 100% to the Interconnect 2Mbit/s connections Component CO453.
Data Source/s
Allocated directly, no data source/s required
See Appendix E for Component Destinations
PG512A
Product Management Policy and Planning (PPP) Other Communications Provider (OCP)
Description
This Plant Group (PG) captures the Product Management, Policy and Planning activities that comprise the costs
incurred by BT in servicing and supporting the Interconnect market. The primary BT units concerned are Wholesale
and Wholesale Markets Finance.
Methodology
An activity analysis is carried out during the year, to gain a greater knowledge of the effort being invested in
supporting interconnect and other Wholesale Products and Services within Wholesale Markets.
The survey is sent out electronically, at three and four digit OUC level, asking for Full Time Equivalent (FTE) to be
divided on a percentage basis between a supplied list of Products and Services.
From this survey, a base is created to reflect the time spent on each Product and Service as a percentage of the
overall total.
Allocates 100% to the Product management policy and planning Component CO512.
Data Source/s
Activity Survey at half year. Management believe this to be reflective of a full year.
See Appendix E for Component Destinations
PG561A
Interconnect Payments to Other Communications Provider (POCP) Communications Networking Services (UK)
(CNS)
Description
This Plant Group (PG) captures cost of Payments to Other Communication Providers (POCPs), relating to
Communications Networking Services (UK) (CNS).
Methodology
Allocates 100% to the Interconnect Payments to Other Communication Providers (POCP) Concert component
CB561.
Data Source/s
277
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG570B
OR Service Centre – Provision Wholesale Line Rental(WLR) PSTN/ISDN2
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
the product sets are:
WLR – PSTN/ ISDN2.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG571B
OR Service Centre – Provision Wholesale Line Rental (WLR) ISDN30
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are;
WLR – ISDN30.
278
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG572B
OR Service Centre – Provision Wholesale Line Rental (WLR) Local Loop Unbundling (LLU)
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – LLU.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG573B
OR Service Centre – Provision Wholesale Line Rental (WLR) Ethernet
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
279
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The product sets are:
WLR – Ethernet.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG574B
OR Service Centre – Provision Next Generation Access (NGA)
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – NGA.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG575B
OR Service Centre – Assurance Wholesale Line Rental (WLR) PSTN/ISDN2
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services
worked on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External
Connections), then their FTE will be spread across Residential and Business lines by reference to their respective
P12 volumes. General Costs applicable to both provision and assurance activities will be allocated to the
components on a prorata basis using FTE.
280
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – PSTN/ ISDN2.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG576B
OR Service Centre – Assurance Wholesale Line Rental (WLR) ISDN30
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – ISDN30.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG577B
OR Service Centre - Assurance LLU
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
281
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – LLU.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG578B
OR Service Centre - Assurance Ethernet
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – Ethernet.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG579B
OR Service Centre - Assurance NGA
Description
This Plant Group (PG) captures the Profit and Loss (Current non-ETG Pay) and Balance Sheet (Fixed Asset, Gross
Book Value (GBV)) costs associated with Organisational Unit Code (OUC) BM. BM is the Service division of
Openreach. The teams within BM are primarily call centre based, with staff supporting the provisioning and repair
of Openreach services. As the various teams support specific services, their costs cannot be spread on a direct pay
or revenue basis.
The PG exhausts to five Components to capture Openreach specific activity for service centres (provision of
Openreach service) for Equivalence of Input purposes (previously incurred within BT Retail). The five Components
will captures the provision call centre costs associated with Organisational Unit Code (OUC) BM by product set.
282
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Methodology
A breakdown of the headcount of each team is obtained from the BM Operational team.
The base is then constructed based on the headcount of each team applicable to each Product and Services worked
on. Where a team works for a specific service (for example Wholesale Line Rental (WLR) External Connections), then
their FTE will be spread across Residential and Business lines by reference to their respective P12 volumes. General
Costs applicable to both provision and assurance activities will be allocated to the components on a prorata basis
using FTE.
This PG specifically captures the costs of the provisioning teams within OUC BM.
Allocated on to the Service Centre provisions Components by product set.
The product sets are:
WLR – NGA.
Data Source/s
Headcount analysis is received from the BM Finance team. Volumes are sourced from Powerhouse at P12.
Component costs are allocated onwards to services bases on volumes x usage factors for each product.
See Appendix E for Component Destinations
PG599A
Interconnect Payments to Other Communication Providers (POCPs)
Description
This Plant Group (PG) captures the cost of Interconnect payments made to various Other Communication Providers
(OCPs).
Methodology
Allocates 100% to the Interconnect Payments to Other Communications Providers (POCPs) Component CB599.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG622A
Public Payphones Operations
Description
This Plant Group (PG) captures the Profit and Loss (P&L) and Balance Sheet costs associated with the provision of
access to the BT Network from Public Payphones in the UK. These costs are therefore essentially ‘Retail’ costs but
are identified separately from those that relate to the revenue-specific infrastructure of the Retail Payphones.
This PG was established to enable identification of these generic costs so that an appropriate Payphone Access levy
– known as the ‘PAC’ - could be charged via the Network Charge Control (NCC) mechanism.
Costs from this PG feeds into the Public Payphones Operations (PSCC) component CO446.
Methodology
Allocates 100% to the Public Payphones Operations PSCC Component CO446.
Data Source/s
Allocated directly, no data source/s required
See Appendix E for Component Destinations
PG651B
Number Portability Set-up Costs – Operation and Maintenance Centre (OMC) Activities
Description
This Plant Group (PG) captures the Operation and Maintenance Centre (OMC) activity costs associated with
Number Portability set-up. In common with all European Communication Providers (CPs) BT is obliged to enable
customers to port their numbers to other CPs, this being a requirement of the European Numbering Directive. This
facility enables a telephone customer to retain their phone number if they switch to another CP.
Pay, Depreciation and Fixed Assets are the main type of costs in this PG.
Methodology
283
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Allocates 100% to the Number Portability Set-up costs Component CO732.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG653A
ATM (Asynchronous Transfer Mode) Customer Interface 2Mb Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 2Mb Customer
Interface Cards, namely, the cost off equipment provision, rearrangement or recovery. These costs fall within the
ATM (Asynchronous Transfer Mode) Class of Work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of Presence) at the
edge of the ATM Network and links the customer's premises via a private circuit, to the ATM network.
Methodology
Allocates 100% to the 2 Mb ATM Customer Interface Components CO310.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG654A
ATM (Asynchronous Transfer Mode) Customer Interface 34Mb Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 34Mb Customer
Interface Cards, namely, the cost of equipment provision, rearrangement or recovery. These costs fall within the
ATM (Asynchronous Transfer Mode) Class of Work (CoW).
The types of cost include pay and stores costs. This equipment is located in the ATM PoP (Point of Presence) at the
edge of the ATM Network and links the customer's premises via a private circuit, to the ATM network.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the 34 Mb ATM (Asynchronous Transfer Mode) Customer Interface Components CO311.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG656A
ATM (Asynchronous Transfer Mode) Network Switching
Description
This Plant Group (PG) captures the cost of network switching ports deployed in the ATM (Asynchronous Transfer
Mode) platform.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100%) to the ATM (Asynchronous Transfer Mode) Network Switching component CO314.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG657A
Framestream Switch
Description
This Plant Group (PG) captures the cost of Frame relay equipment booked to the Asynchronous Transfer Mode
(ATM) Class of Work (CoW).
284
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This CoW falls within the ATMR asset policy code. The ATMR asset policy code captures the costs for all frame relay
equipment. Frame relay equipment is a small network which works alongside the ATM.
Framestream/Frame Relay is a simple, cost effective, frame relay-based Virtual Private Network (VPN) solution that
supports high-speed data and Internet Protocol (IP) connectivity in the UK and abroad.
Methodology
Allocates 100% to the Framestream Switch Component CO657.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG658A
ATM Customer Interface (higher than) 155Mb Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of 155Mb and higher
bandwidth Customer Interface Cards, namely, the cost off equipment provision, rearrangement or recovery. These
costs fall within the ATM (Asynchronous Transfer Mode) Class of Work (CoW). The types of cost include pay and
stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the 155 Mb Customer Interface Components CO312.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG659A
ATM (Asynchronous Transfer Mode) Network Interface Cards
Description
This Plant Group (PG) captures the cost of capital expenditure incurred from the deployment of Network Interface
Cards, namely, the cost off equipment provision, rearrangement or recovery. These costs fall within the ATM
(Asynchronous Transfer Mode) Class of Work (CoW). Types of cost include pay and stores pay.
ATM is a high throughput packet switching protocol that provides statistical multiplexing, broadband
(multimegabit) data rates, multiple virtual circuits per network access, and flexible bandwidth per connection.
Methodology
Allocates 100% to the ATM (Asynchronous Transfer Mode) Network Interface Component CO313.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG667A
Internet Protocol (IP) International Peering
Description
This Plant Group (PG) captures the cost of:
•
•
Gigabyte Routers, connecting International transmission and peering links to USA, Europe. Gigabyte Routers is
a high bandwidth switch, used for switching Internet traffic.
Links for World Wide Web (www) Products - anything that uses the Internet such as BTnet and Webport. BTnet
Dial Internet Protocol (IP) service provides remote dial-in access to corporate networks so they can extend
their Intranet and Extranet and offers Internet Service Providers (ISPs) with dial ports via BT’s fully managed
high speed dial network.
Methodology
Allocates 100% to the IP International Peering component CO667.
285
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG668A
Internet Protocol (IP) Network Management
Description
This Plant Group (PG) captures the costs of Internet Protocol (IP) Network Management including all the costs
associated with Operational Support Systems (OSS) – these are activities used to run the network and business.
Typical activities that are part of OSS are taking a customers order, configuring network components, logging and
managing faults.
The types of cost include pay and stores costs.
Methodology
Allocates 100% to the Internet Protocol (IP) Network Management Component CO668.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG669A
IP (Internet Protocol) Network Dial IP
Description
This Plant Group (PG) captures the cost of the following types of equipment:
•
•
•
IP (Internet Protocol) Dial Ports. Dial Ports connect Public Switched Telephone Network (PSTN) to IP (Internet
Protocol) Network.
Dial Access Routers. Dial Access Routers connect Dial Ports into IP Network.
Home Gateway Routers. Home Gateway Routers are customer specific e.g. ISP (Internet Service Provider).
Methodology
Allocates 100% to the IP Network Dial IP Component CO669.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG670A
IP (Internet Protocol) Network Fixed Access
Description
This Plant Group (PG) captures the cost of the following types of equipment:
•
•
BTnet Direct and Flex NTE (Network Terminal Equipment) Routers, which connect the customer to the BT
Network.
BTnet Access Routers, which connect the MSIP (Multi Services Intranet Platform) and Synchronous Digital
Hierarchy (SDH) access to the IP (Internet Protocol) Network at Colossus PoPs (Point of Presences).
Methodology
Allocates 100% to the IP Network Fixed Access Component CO670.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG671A
Internet Protocol (IP) Network Virtual Private Network (VPN)
Description
This Plant Group (PG) captures the cost of the platform that delivers the following Virtual Private Network (VPN)
products: Metro, Equip, and Internet Protocol (IP) Clear and Ethernet delivery services (e.g. Fusion and Internet
Protocol (IPClear) 10100).
286
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
There are three main types of equipment in this platform:•
•
•
Provider Edge Routers, used to terminate customer ports.
Provider Router, used to route traffic through network.
Catalyst Switch, used to aggregates traffic into a Provider router.
Methodology
Allocates 100% to the Internet Protocol (IP) Virtual Private Network (VPN) Component CO671.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG672A
IP (Internet Protocol) Network Broadband
Description
This Plant Group (PG) captures the cost of the following types of equipment:•
•
•
Remote Authentication Servers (RAS) (which connect Asymmetric Digital Subscriber Line (ADSL) users into IP
(Internet Protocol) cloud, for direct connection to the Internet Service Provider Home Gateways.
Broadband Access Routers, which connect RAS into IP cloud.
Broadband Service Provider Home Gateways.
Methodology
Allocates 100% to the IP (Internet Protocol) Network Broadband Component CO672
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG673A
Internet Protocol (IP) Network BT Intranet
Description
This Plant Group (PG) captures the cost of the Command Control Router Network (CCRN) or Information Network
(iNET).
Command Control Router Network (CCRN) is a BT internal structure for the transport of management traffic.
Information Network (iNET) is used to ensure the BT Intranet infrastructure meets existing needs and continue
transforming BT to an e-Business organisation.
Methodology
Allocates 100% to the Internet Protocol (IP) Network BT Intranet Component CO673
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG674A
IP (Internet Protocol) Core/Colossus
Description
This Plant Group (PG) captures the cost of:•
•
Gigabyte Core Routers.
Catalyst LAN (Local Area Network).
Switches that aggregate and link router ports from the IP (Internet Protocol) back bone core.
Methodology
Allocates 100% to the IP Core Node Equipment Component CO674
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
287
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
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Description
PG675A
Voice over Internet Protocol (VOIP) costs
Description
Voice over Internet Protocol (VoIP) is a method of transporting speech over the internet.
This Plant Group (PG) captures the cost of the following types of equipment:
•
•
Gigabit Routers - Gigabyte Routers are high bandwidth switches, used for switching Internet traffic.
Gateways and Access Routers are for transmitting voice over the IP Network.
Costs include provision, extension, rearrangement and recovery of IP Networks by the Broadband and Data division
in BT Wholesale.
Methodology
Allocates 100% to the VoIP Equipment component CO675
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG676A
IP (Internet Protocol) Applications
Description
This Plant Group (PG) captures the cost of DNS (Domain Name Servers). DNS convert IP (Internet Protocol)
addresses into world wide web (www) format and vice versa. It also contains Radius Dial, Radius Broadband Servers,
Mail and News servers.
Methodology
Allocates 100% to the IP (Internet Protocol) Core Node Equipment CO674.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG678A
Internet Protocol (IP) SIP Servers
Description
This Plant Group (PG) captures the cost of the Session Initiation Protocol (SIP) server equipment. SIP is a signalling
protocol used for establishing sessions in an Internet Protocol (IP) network.
Methodology
Allocates 100% to the Internet Protocol (IP) SIP Server Component CO678.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG721A
Circuit Provision (CP) Digital Higher Order
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other
payments) costs associated with the provision, cessation and re-arrangement of Higher Order circuits.
Higher Order Circuits are 2M or above circuits used for Public Switched Telephony Network (PSTN) or private
circuits.
Methodology
Costs are apportioned based on the number of Higher Order circuits provided, ceased and rearranged over the
reporting period. For full year reporting this is based on the number of aforementioned circuit changes between
September (Period 6) prior year and September current year.
This information is sourced from the Core Transmission Costing System (CTCS).
288
Detailed Attribution Methods (DAM) – Section 6 Plant Group
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Description
Data Source/s
Core Transmission Costing System (CTCS) – providing a count of the number of Higher Order transmission circuits
provided, ceased and rearranged over the reporting period. For full year reporting this is based on the number of
aforementioned circuit changes between September (Period 6) prior year and September current year.
See Appendix E for Component Destinations
PG722A
Circuit Provision (CP) Digital Public Network
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other
payments) costs associated with the provision of transmission circuits for the digital Public Switched Telephony
Network (PSTN). This transmission network consists of Remote Concentrator to Local Exchange, Local Exchange to
Trunk/Tandem Exchange and Inter-Tandem/Trunk circuits.
Methodology
Costs are apportioned based on the number of PSTN transmission circuits provided, ceased and rearranged over the
reporting period. This information is sourced from the Core Transmission Costing System (CTCS).
Data Source/s
Core Transmission Costing System (CTCS) provides a count of the number of PSTN transmission circuits provided,
ceased and rearranged over the reporting period. For full year reporting this is based on the number of
aforementioned circuit changes between September (Period 6) prior year and September current year.
See Appendix E for Component Destinations
PG723A
Circuit Provision Analogue Public Network
Description
This Plant Group (PG) captures the Profit and Loss (Engineering/non-Engineering Pay, Stores issues, Other
payments) costs associated with the provision, cessation and re-arrangement of circuits for the analogue public
network.
Methodology
Costs are apportioned based on the number of circuits provided, ceased and rearranged over the reporting period.
This information is sourced from the Core Transmission Costing System (CTCS).
Data Source/s
The Core Transmission Costing System (CTCS) provides a count of the number of transmission circuits provided,
ceased and rearranged over the reporting period. For full year reporting this is based on the number of
aforementioned circuit changes between September (Period 6) prior year and September current year.
See Appendix E for Component Destinations
PG732A
Generic Data Amendments - Network Costs
Description
This Plant Group (PG) captures the cost of making data amendments at the switch to allow the switch to recognise
new and amended routing details, such as new numbers, new lines and new CPS (Carrier Pre-Select) customers.
Methodology
The attribution is made on the basis of the number of local and main exchanges in the network. Data amendments
are more numerous and more time consuming for Main Exchanges than for Local Exchanges, so each Main
Exchange is weighted by a factor of three. This factor is determined on the basis of the experience and expertise of
the data amendment team, being a management estimate. This gives an estimate of the time and hence relative
cost for data amendments on Local relative to Main Exchanges.
A small proportion of cost is relevant to CPS and for this a download is taken from the General Ledger at PG level
for PG732A Generic Data Adjustments costs. The number of Other Communications Providers (OCPs) taking up
CPS during the year is also recorded and the total cost for CPS Operator Set-Up is derived by multiplying by the
cost per OCP. This cost is then compared against the cost for PG732A to achieve the fraction attributable to the
CPS Operator Set-Up component.
The proportions for Local and Main Exchanges are then re-based to achieve a total for the three components. Data
amendments are relevant to the Call Set-Up function and not Call Duration.
289
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
Data amendment management team estimates and the data from the General Ledger from the Central Information
Database (CID).
See Appendix E for Component Destinations
PG761A
Special Applications SMDS (Switched Multimegabit Data Service)
Description
This Plant Group (PG) captures the Profit and Loss (Pay, Depreciation) and Balance Sheet (Asset value) cost of
specific switching equipment associated with the provision of the SMDS (Switched Multimegabit Data Service). The
costs are wholly allocated to the SMDS (Switched Multimegabit Data Service) Component (CO781).
Methodology
Allocates 100% to the Switched Multimegabit Data Service Component CO781.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG771A
Special Applications Other Development
Description
This Plant Group (PG) captures the Balance Sheet (Fixed Asset) costs of developments relating to the Microconnect
Class of Work (CoW) MDA.
Methodology
Allocates 100% to the Development Component CB782.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG772A
Openreach Systems and Development (Product Specific)
Description
This Plant Group (PG) captures the cost of Research and Development (R&D) projects, undertaken by BT Innovate
and Design on behalf of Openreach, that are specific to Products e.g. Local Loop Unbundling (LLU).
Development projects can range from high-level strategy, down to operational and logistical development.
Development project costs are apportioned according to the nature of the individual projects.
PG772A (Openreach Systems and Development (Product Specific)) is for Openreach development projects that are
specifically relate to Products.
Methodology
The development projects are analysed and those that are specific to products e.g. LLU are allocated to PG772A
and apportioned to appropriate Components. E.g. Product specific LLU development project costs would be
apportioned specifically to CL139 – Local Loop Unbundling systems development.
Data Source/s
Development projects cumulative data to period 12 from BT Innovate and Design.
See Appendix E for Component Destinations
PG823P
BT Own Use Private Circuits
Description
This Plant Group (PG) captures those provision costs of BT own use private circuits, which can be identified directly
from the ledger systems, along with associated overheads.
290
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Methodology
Allocates 100% to the BT Own Use PC Provision Component CO823.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG854A
Access Gateway Control Function (AGCF)
Description
This Plant Group (PG) captures the Capital costs of these assets which are used for signalling voice calls that either
terminate or originate on BT’s network.
Methodology
The costs (relevant to voice components only) are apportioned 100% to the following component.
•
CN861 - MSAN - POSI link voice.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG855A
Border Gateway and Signalling Firewall
Description
This Plant Group (PG) captures the Capital costs of the Border Gateway and Signalling Firewall costs contained
within Metro Nodes.
The Border Gateway provides a connectivity point or POSI (Point of Service interconnect) for Other Communication
Providers (OCPs) into the 21C network.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Border Gateway and Signalling Firewall Component CN867.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG856A
CMASN ISDN2 Cards
Description
This Plant Group (PG) captures the Capital costs of Integrated Services Digital Network 2 (ISDN2) contained within
Multi Service Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the 21CN ISDN2 Cards Component CN852.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
291
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG857A
CMSAN Combo Cards BB element
Description
This Plant Group (PG) captures the Capital costs of the Broadband element of Combo Cards contained within Multi
Service Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Combo Card Broadband Component CN854.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG858A
CMSAN Combo Cards Voice element
Description
This Plant Group (PG) captures the Capital costs of the Voice element of Combo Cards contained within Multi Service
Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Combo Card Voice Component CN853.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG859A
CMSAN Control Access
Description
This Plant Group (PG) captures the Capital costs of the Control and common elements of a Copper Multi Service
Access Node (MSAN) that are relevant to linecards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
The Control/Common element of the Copper MSAN is exhausted to the linecard components that are connected
into a Copper MSAN. The basis of apportionment is the relative number of connections for each service driven by
the total volumes for each of the relevant products currently in the network (both on legacy and 21C equipment).
That is, ignoring whether the products have migrated to use the 21C network or not.
Though only 21C migrated volumes are used elsewhere, in this case the full volume is used. This is because the
combo card voice access connexions capital was originally predicated for a full voice migration and is therefore
regarded as a fixed element for voice access.
The linecard components that are recipients are :
•
•
•
•
CN851 21C ISDN30.
CN852 21C ISDN2.
CN853 Combo Card Voice.
CN854 Combo Card Broadband.
Data Source/s
21C Generic Cost Model and Group Volume forecast.
See Appendix E for Component Destinations
292
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG860A
CMSAN Control Transport
Description
This Plant Group (PG) captures the Capital costs of the Control and common elements of a Copper Multi Service
Access Node (MSAN) that are relevant to the transport of calls or traffic through the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
The Control/Common element of the Copper MSAN is exhausted to the traffic and calls components that utilize the
Copper MSAN. The basis of apportionment is the contended relative bandwidth that the relevant products would
consume if the total volume of relevant products currently in the network were migrated onto 21C equipment. That
is, ignoring whether the products have migrated to use the 21C network or not with the exception of Voice where
migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are :
•
•
CN856 MSAN - BRAS Link BB.
CN861 MSAN – POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume Forecast.
See Appendix E for Component Destinations
PG861A
CMSAN ISDN30 cards
Description
This Plant Group (PG) captures the Capital costs of Integrated Services Digital Network30 (ISDN30) contained
within Multi Service Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the 21CN ISDN30 Component CN851.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG862A
CMSAN Low Band SDSL cards =<2Mb
Description
This Plant Group (PG) captures the Capital costs of Symmetric Digital Subscriber Line (SDSL) contained within Multi
Service Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Line Cards are used by Low band data products <=2Mb and ISDN30.
The driver for this base is the total volume of underlying relevant products i.e. two in this case currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not.
Drives to:
•
•
CN880 Low Band SDSL card.
CN851 21c ISDN30.
293
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
21C Generic Cost Model, Group Volume Forecast as at Q3 for the current year.
See Appendix E for Component Destinations
PG863A
CMSAN-FMSAN Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Fibre and
Duct) between a Copper Multi Service Access Node (MSAN) and a Fibre MSAN.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
CN857 MSAN - BRAS Length BB.
CN862 MSAN - POSI Length Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG864A
CMSAN-FMSAN Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Copper Multi
Service Access Node (MSAN) and a Fibre MSAN.
Types of cost include Non-ETG Pay and Fixed Assets.
Methodology
The PG drives to four high level products e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
CN856 MSAN - BRAS Link BB.
CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG865A
Core-Core Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Duct and
Fibre) between a Core Node and another Core Node.
Methodology
The PG drives to seven high level product s e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
294
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
In the case of Voice there is a variant of POSI-POSI which describes traffic across Core-Core.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
•
•
•
CN857 MSAN - BRAS Length BB.
CN866 POSI - POSI Length Voice.
CN871 MSAN - METRO Length Connectivity.
CN873 MSAN - METRO Length Connectivity OR.
CN902 IP/VPN METRO-Switching
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG866A
Core-Core Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Core Node and
another Core Node.
Types of cost include Non-ETG Pay, Depreciation and Fixed Assets.
Methodology
The PG drives to five high level product s e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
In the case of Voice there is a variant of POSI-POSI which describes traffic across Core-Core.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
•
•
•
CN856 MSAN - BRAS Link BB.
CN865 POSI - POSI Link Voice.
CN870 MSAN - METRO Link Connectivity.
CN872 MSAN - METRO Link Connectivity OR.
CN902 IP/VPN Metro Switching
Data Source/s
21C Generic Cost Model, Group Volume Forecast.
See Appendix E for Component Destinations
PG867A
Ethernet NTE
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the customer sited
Ethernet Network Termination Equipment (NTE). This is where the BT line from the exchange terminates and allows
the customers’ equipment to be connected.
Ethernet is the most widely-installed Local Area Network (LAN) technology.
Types of cost include Profit and Loss (P&L) Non-ETG Pay and Fixed Assets
Methodology
This Plant Group is currently not of material value and has been apportioned equally to all destinations. When
appropriate it will be split based on the number of end users.
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
295
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG868A
FMSAN Control Access
Description
This Plant Group (PG) captures the Capital costs of the Control and common elements of a Fibre Multi Service Access
Nodes (MSANs) that are relevant to linecards.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
The Control/Common element of the Fibre MSAN is exhausted to the linecard components that are connected into
a Fibre MSAN. The basis of apportionment is the relative number of connections for each service driven by the total
volumes for each of the relevant products currently in the network (both on legacy and 21C equipment). That is,
ignoring whether the products have migrated to use the 21C network or not with the exception of Voice where
migrated, the volume is used.
The linecard components that are recipients are :
•
CN881 MSAN Time Division Multiplexed (TDM) card.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG869A
FMSAN Control Transport
Description
This Plant Group (PG) captures the Capital costs of the Control and common elements of a Fibre Multi Service Access
Node (MSAN) that are relevant to the transport of calls or traffic through the switch.
Types of cost include depreciation, stores and pay costs
Methodology
The Control/Common element of the Fibre MSAN is exhausted to the traffic and calls components that utilise the
Copper MSAN. The basis of apportionment is the relative bandwidth that the relevant products would consume if
the total volume of relevant products currently in the network were migrated onto 21C equipment. That is, ignoring
whether the products have migrated to use the 21C network or not with the exception of Voice where migrated,
the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are :
•
•
CN856 MSAN - BRAS Link BB.
CN861 MSAN - POSI Link Voice.
Data Source/s
Q3 from the 21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
296
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG870A
FMSAN Ethernet Customer Access Cards
Description
This Plant Group (PG) captures the Capital costs of Ethernet Customer Access Cards contained within Fibre Multi
Service Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the High Band Customer Data Card Component CN882.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG872A
FMSAN TDM cards
Description
This Plant Group (PG) captures the Capital costs of TDM (Time Division Multiplexing) cards contained within Fibre
Multi Service Access Nodes (MSANs).
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the MSAN TDM Card Component CN881.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG873A
FMSAN to WDM Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Fibre and
Duct) between a Fibre Multi Service Access Node (MSAN) and a WDM (Wave Division Multiplexing) MSAN.
Methodology
The PG drives to four high level product s e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
CN857 MSAN - BRAS Length BB.
CN862 MSAN - POSI Length Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
297
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG874A
FMSAN to WDM Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Fibre Multi
Service Access Node (MSAN) and a Wave Division Multiplexing (WDM) MSAN.
Types of cost include Non-ETG Pay, Depreciation and Fixed Assets.
Methodology
The PG drives to two high level product s e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
CN856 MSAN - BRAS Link BB.
CN861 MSAN - POSI Link Voice.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG875A
INODE - Network features
Description
This Plant Group (PG) captures the Capital costs of Network Features functionality contained within I-Nodes.
The I-node (intelligence node) represents the part of the network that contains intelligence associated with routing,
verifying and controlling end to end service.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the I-Node Features Component CN855.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG876A
INODE-Voice Call Set-Up
Description
This Plant Group (PG) captures the Capital costs of Voice Call Set-Up functionality contained within I-Nodes.
The I-node (intelligence node) represents the part of the network that contains intelligence associated with routing,
verifying and controlling end to end service.
Line cards are the electronic cards in the exchange that provide connectivity to the switch.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the I-Node Voice Call Set-Up Component CN868.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
298
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG877A
ISDN30 NTE
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the ISDN30 Customer
sited Network Termination Equipment (NTE). This is where the BT line from the exchange terminates and allows the
customers’ equipment to be connected.
Types of cost include depreciation, stores and pay costs
Methodology
Allocates 100% to the ISDN30 Access Component CL189.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG878A
METRO BB LNS
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BB LNS
(Broadband Layer2 Network Server).
Types of cost include depreciation, stores and pay costs.
The L2TP (Tunnelling Protocol) Network Server is the Layer 2 Network Server. Current there are only a few Test LNS boxes designed to test connectivity. The LNS boxes are still to be designed for
the network. When the boxes are finally designed and deployed, they will be used to provide a Routed Internet
Protocol (IP) service.
Methodology
Allocates 100% to the Core/Metro Broadband Component CN860.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG879A
METRO BBL3
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BBL3.
Types of cost include depreciation, stores and pay costs.
Broadband Layer 3 (BBL3) is a device used to interface 21C Broadband to the internet. Traffic is either switched
directly to the internet, or looped via CP cages where additional packet processing may be carried out before
onward transmission.
Methodology
Allocates 100% to the Core/Metro Broadband Component CN860.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
299
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG880A
METRO BEA - Broadband Edge Aggregator
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the BEA.
Types of cost include depreciation, stores and pay costs.
Broadband Edge Aggregators (BEAs) are planned to be deployed across all 21CN Core Point of Presence (PoPs).
A Broadband Edge Aggregator is essentially the device which a Communication Provider (CP) will interface to, in
order to aggregate its traffic from all the Broadband Remote Access Server (BRASs) located within a PoP. Initially a
BEA will aggregate a single Logical PoP or 8 BRASses.
Methodology
Allocates 100% to the Core/Metro Broadband Component CN860.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG881A
METRO BRAS - Broadband Remote Access Server
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Broadband
Remote Access Server (BRAS). A Broadband Remote Access Server routes traffic to and from the digital subscriber
line access multiplexers (DSLAM) on an Internet service provider's (ISP) network. The BRAS sits at the core of an
ISP's network, and aggregates user sessions from the access network.
Types of cost include depreciation, stores and pay costs.
Methodology
Allocates 100% to the Core/Metro Component CN860.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG882A
METRO FER - Front End Router
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Front End Router
(FER).
Types of cost include depreciation, stores and pay costs.
The Front End Routers are used to connect to Communications Providers (CPs) for the Aggregated Wholesale
Broadband Managed Connect (WBMC) service. They provide load-balancing and shaping/policing functions. Traffic from the Core to the L2 MPLS (Multi-Protocol Label Switching) network via the FERs will be over
L2TP (Tunnelling Protocol) tunnels (for L2TP Pass through). Routed IP (for the Home Gateway Service) will not be
offered on day 1. The FER’s interface with the PE (Provider Edge) Routers on the L3 Core Network and the IEA (Infrastructure Edge
Aggregation)/P routers on the Layer 2 MPLS Core Network.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
Methodology
Allocates 100% to the Core/Metro Broadband Component CN860.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
300
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG883A
METRO-Cisco internet Routers
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of Routers used
predominately for Internet/Broadband and Voice over Internet Protocol (VOIP) traffic.
Methodology
Allocates 100% to the Core/Metro (broadband) Component CN860.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG884A
METRO-Cisco peering Routers
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of Routers used
predominately for Peering Broadband traffic.
Peering is the arrangement of traffic exchange between Internet Service Providers (ISPs).
Methodology
Allocates 100% to the Core/Metro (Broadband) Component CN860.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG885A
Metro-Core Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Duct and
Fibre) between a Metro Node and a Core Node.
Methodology
The PG drives to eight high level product s e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
•
•
•
CN857 MSAN - BRAS Length BB.
CN862 MSAN - POSI Length Voice.
CN871 MSAN - METRO Length Connectivity.
CN873 MSAN - METRO Length Connectivity OR.
CN902– Metro IP/VPN.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
301
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG886A
Metro-Core Link
Description
This Plant Group (PG) captures the Capital costs associated with transmission electronics between a Metro Node and
a Core Node.
Types of cost include Current Non-ETG Pay, Depreciation and Fixed Assets.
Methodology
The PG drives to five high level product s e.g. Voice, specific transmission components based on the relative
contended bandwidth that these products would consume if the total volume of underlying relevant products
currently in the network were migrated onto 21C equipment. That is, ignoring whether the products have migrated
to use the 21C network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
•
•
•
CN856 MSAN - BRAS Link BB.
CN861 MSAN - POSI Link Voice.
CN870 MSAN - METRO Link Connectivity.
CN872 MSAN - METRO Link Connectivity OR.
CN902 Metro - IP/VPN.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG887A
METRO-Edge Ethernet Bandwidth
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Edge Ethernet
Bandwidth.
Types of cost include depreciation, stores and pay costs.
The Edge Ethernet Bandwidth is used to groom Virtual Local Area Networks (VLANs) from the Multi Service Access
Nodes (MSANs) to the relevant Metro device such as the Voice PE using Pseudo-Wire Emulation (PWE) tunnels
(across the core if necessary). It is also used to provide point to point connectivity for Broadband traffic via PseudoWire Emulation Edge to Edge (PWE3) tunnels.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
Methodology
The allocation to components is derived using total contended bandwidth.
The components that are recipients are:
•
•
•
•
•
CN860 - Core/Metro (broadband).
CN869 - Core/Metro (voice).
CN878 - Core/Metro (Connectivity).
CN879 - Core/Metro (connectivity) OR.
CN902 – Metro IP/VPN.
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
302
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG888A
METRO-Edge Ethernet Port
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Edge Ethernet
Port.
The Edge Ethernet Port terminates:•
•
•
VLAN - Virtual Local Area Networks.
MSIL - Multi Service Interconnect Link.
Ethernet services.
Types of cost include depreciation, stores and pay costs.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
The components that are recipients are:
•
•
•
•
•
CN883 - Edge Ethernet ports voice.
CN884 - Edge Ethernet ports broadband.
CN885 - Edge Ethernet ports connectivity.
CN902 – Metro IP/VPN.
CN886 –Edge Ethernet ports connectivity OR
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
PG889A
METRO-Infrastructure Ethernet
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Infrastructure
Ethernet.
Types of cost include depreciation, stores and pay costs.
The infrastructure switches are used to provide basic fast, Gigabit and 10 Gigabit Ethernet connectivity within a
metro node and Intelligent Node (iNode) function.
They are used to give efficient port utilisation on the expensive PE (Provider Edge) router Ethernet interfaces and
because they provide higher port densities for low-speed interfaces than are typically available on PE routers. The
switches are not customer-facing and therefore do not require complex edge features or Virtual Private LAN
Services (VPLS) capabilities.
Methodology
Allocated directly (100%) to CN869 Core/Metro (Voice).
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
303
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG890A
METRO-Media Gateway
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Media Gateways.
Types of cost include depreciation, stores and pay costs.
The Media GateWay (MGW) components provide inter-working between the transformed 21C Public Switched
Telephone Network (PSTN) packet switched Internet Protocol (IP) domain and the legacy PSTN circuit switched
Time Division Multiplexing (TDM) domain. They are deployed at Metro Nodes and operate under the control of the
Ericsson CSs using the ETSI TISPAN H.248 protocol for Bearer Control. They connect to the legacy PSTN at Next
Generation Switch (NGS).
Methodology
Allocates 100% to the Core/Metro Voice Component CN869.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG891A
METRO-Media Servers
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Media servers.
Types of cost include depreciation, stores and pay costs.
The main purpose of the media server is the processing of media streams, to play announcements. The media servers
will act as a slave device in the network. It will always operate under control of one or more Call Servers (application
servers or soft switches).
Methodology
Allocates 100% to the Core/Metro Voice Component CN869.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG892A
METRO-Sync Racks
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Sync racks.
Types of cost include depreciation, stores and pay costs.
Each Core/Metro Point of Presence (PoP) is equipped with sync equipment to ensure that accurate timing is
maintained across the BT network. The sync equipment provides reference clock to equipment within the PoP (e.g.
Media Gateway) down to the Multi Service Access Nodes (MSANs).
Methodology
Allocates 100% to the Core/Metro Voice Component CN869.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
304
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG893A
METRO-Voice Routers
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Voice Router.
Types of cost include depreciation, stores and pay costs.
The PE (Provider Edge) routers provide the customer interfaces to the Internet Protocol (IP)/ Multi-Protocol Label
Switching (MPLS) network, receiving customer traffic and encapsulating it as MPLS frames for transmission across
the core of the network. The PE routers therefore require a range of interface types to support the different
customer access requirements and typically make use of complex edge features such as traffic shaping and policing.
Gigabit or 10 Gigabit Ethernet interfaces with the necessary edge features are normally used for customer
interfaces, connecting either to the infrastructure Ethernet switch, the aggregation switch or directly to the access
transmission equipment, as appropriate.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
The components that are recipients are:
•
•
•
•
•
CN869 Core/Metro Voice.
CN860 Core/Metro BB.
CN878 Core/Metro Connectivity.
CN879 Core/Metro Connectivity OR
CN902 Metro IP/VPN.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG894A
Multi Service Provider Edge Router
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Multi Service
Provider Edge Router. The Multi-Service PE (MSPE) provides support for Virtual Private Network (PVN) traffic for
potentially many services. The MSPE includes Voice PE functionality, so it is not necessary to deploy a separate
Voice PE where an MSPE is deployed.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
Methodology
Allocates 100% to the Core/Metro Connectivity Component CN878.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
305
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG895A
P Router (large) CORE
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the P Router.
Types of cost include depreciation, stores and pay costs.
The P Routers in the Core nodes (Provider routers) form the core of the network, aggregating traffic from a number
of Provider Edge (PE) routers and connecting to P routers in other Point of Presence (PoPs) across wide-area
transmission links. P Routers are therefore equipped with high capacity interfaces at 10 Gbit/s speeds using 10
Gigabit Ethernet links to the PE Routers and Synchronous Transport Module (STM) 64 links to the transmission
equipment.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
The components that are recipients are:
•
•
•
•
•
CN860 - Core/Metro (broadband).
CN869 - Core/Metro (voice).
CN878 - Core/Metro (Connectivity).
CN879 - Core/Metro (connectivity) OR.
CN902 – Metro IP/VPN.
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
PG896A
P (Provide) Router METRO
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the P Router.
Types of cost include depreciation, stores and pay costs.
The P Routers in the METRO nodes (Provider Routers) form the core of the network, aggregating traffic from a
number of Provider Edge (PE) Routers and connecting to P Routers in other Point of Presence (PoPs) across widearea transmission links. P Routers are therefore equipped with high capacity interfaces at 10 Gbit/s speeds using 10
Gigabit Ethernet links to the PE Routers and Synchronous Transport Module (STM) 64 links to the transmission
equipment.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
The components that are recipients are:
•
•
•
•
•
CN860 - Core/Metro (broadband).
CN869 - Core/Metro (voice).
CN878 - Core/Metro (Connectivity).
CN879 - Core/Metro (connectivity) OR.
CN902 – Metro IP/VPN.
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
306
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG897A
Time Division Multiplexer (TDM) Network Termination Equipment.
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the Time Division
Multiplexer (TDM) customer sited Network Termination Equipment (NTE). This is where the BT line from the
exchange terminates and allows the customers’ equipment to be connected.
Types of costs include Fixed Assets.
Methodology
The costs are apportioned evenly between:
•
•
•
CO434 - PC rental 34Mbit/s link local end.
CO438 - PC rental 2Mbit/s local end copper.
CO439 - PC rental 2Mbit/s local end fibre.
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
PG898A
Time Division Multiplexer Specific X Connects
Description
This Plant Group (PG) captures the cost of capital expenditure incurred for the deployment of the TDM (Time
Division Multiplexer) Specific X connect. Cross connect supporting TDM based connections (e.g. TDM services and
connectivity to existing voice platform) and termination of Ethernet over Generic Framing Procedure (GFP) streams
from Multi Service Access Nodes (MSANs).
Types of costs include Depreciation, Non-ETG Pay and Fixed Assets.
Methodology
Allocates 100% to the Core/Metro (Connectivity) Component CN878.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PG899A
Wave Division Multiplexing to Metro links Link
Description
This Plant Group captures the Capital costs associated with transmission electronics between Wave Division
Multiplexing (WDM) Multi Service Access Node (MSAN) and a Metro Node.
Types of costs include Depreciation, Non-ETG Pay and Fixed Assets.
Methodology
The PG drives to four high level product s e.g. Voice, specific transmission components based on the relative
contended bandwidth that these products would consume if the total volume of underlying relevant products
currently in the network were migrated onto 21C equipment. That is, ignoring whether the products have migrated
to use the 21C network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
•
•
CN861 MSAN - POSI Link Voice.
CN870 MSAN - METRO Link Connectivity.
CN872 MSAN - METRO Link Connectivity OR.
CN856 MSAN - BRAS Link BB.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
307
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG900A
Wave Division Multiplexing to Metro links: Length
Description
This Plant Group (PG) captures the Capital costs associated with transmission Length related elements (Duct and
Fibre) between Wave Division Multiplexing (WDM) Multi Service Access Node (MSAN) and a Metro Node.
Methodology
The PG drives to eight high level product s e.g. Voice, specific transmission components based on the relative
bandwidth that these products would consume if the total volume of underlying relevant products currently in the
network were migrated onto 21C equipment. That is, ignoring whether the products have migrated to use the 21C
network or not with the exception of Voice where migrated, the volume is used.
There is therefore a limited cost allocation for the call conveyance services.
The traffic components that are recipients are:
•
•
•
•
CN862 MSAN - POSI Length Voice.
CN871 MSAN - METRO Length Connectivity.
CN873 MSAN - METRO Length Connectivity OR.
CN857 MSAN - BRAS Length BB.
Data Source/s
21C Generic Cost Model, Group Volume forecast.
See Appendix E for Component Destinations
PG901A
21 CN ETHERNET SWITCHES
Description
This Plant Group (PG) captures the Capital costs associated with Ethernet Switches.
Ethernet is the most widely-installed local area network (LAN) technology.
Methodology
The allocation to components is derived using total contended bandwidth.
Contended bandwidth is used because the network can be overbooked for capacity and the contention factor
reserves or books spaces in the event of this happening. The bandwidth is divided by this factor to show the
“reserved space” on the network for this service and therefore serves as a tool to allocate costs.
The components that are recipients are:
•
•
•
•
CN901 Ethernet Switches.
CN870 MSAN-METRO Link Connectivity.
CN861 MSAN-POSI Link Voice.
CN856 MSAN-BRAS Link BB.
Data Source/s
Generic 21CN cost model.
See Appendix E for Component Destinations
308
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG911A
Operator Services Operator Assistance - Inland
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on Inland Operator Assistance (OA)
100 and 999 calls. Customers dial 100 (OA) and speak to an Operator if they require help making a call.
Type of costs includes Depreciation, Travel and Subsistence, Non-ETG Pay and Fixed Assets.
Methodology
This PG is apportioned to Operator Assistance (OA) components:
CO911 National Operator Assistance.
CO919 Emergency operator assistance (999).
CO941 National OA non chargeable.
CO942 Emergency OA - 999 non chargeable.
CO943 Payphones OA non chargeable.
The apportionment is based on average total operator handling time and volume of calls for both services. Central
Data Store (CDS) and Call Statistics Centralisation System (CSCS) are the data sources for total calls to all operator
assistance Products which include this PG and the Operator Services OA International PG PG912A. Also used is the
Operfile, this being a spreadsheet used to derive apportionment information for Operator and Directory Assistance
costs. The file is a summary of information from a variety of other data sources and is updated monthly on a
cumulative basis.
Data Source/s
Inland and International Directory Assistance (DA)
Central Data Store (CDS).
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA)
Call Centre Management Information Systems (CCMIS).
CSCS, (for Retail chargeable)
6A Report (for Wholesale Chargeable).
See Appendix E for Component Destinations
PG912A
Operator Services Operator Assistance - International
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on International Operator
Assistance (OA) 155 calls. Customers dial 155 (IOA) and speak to an International Operator if they require help
making a call to a foreign country.
Methodology
This is achieved through a Period 12 Operfile, this being a spreadsheet used to derive apportionment information
for Operator and Directory Assistance costs. The file is a summary of information from a variety of other data sources
and is updated monthly on a cumulative basis.
The costs are apportioned to the following components based on average operator handling times and volumes of
calls generated by each type of call:
•
•
International OA (CO912).
Emergency OA (999) non-chargeable (CO942).
309
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Data Source/s
Inland and International Directory Assistance (DA)
Central Data Store (CDS).
Call Statistics Centralisation System (CSCS) and Featurenet (from the Powerhouse system).
Inland and International Operator Assistance (OA)
Call Centre Management Information Systems (CCMIS).
CSCS, (for Retail chargeable) and 6A Report (for Wholesale Chargeable).
See Appendix E for Component Destinations
PG924A
Directory Enquiries (DQ) Non Chargeable
Description
This Plant Group (PG) captures the pay and non-pay costs of operators working on Directory Enquires (DQ) non
chargeable calls. These type of calls include:
•
•
•
•
•
Blind and Disabled calls. An Operator service available for Blind, Disabled, Hearing or Speech impaired
customers on 195.
Internal service line calls to Directory Enquiries (DQ).
Calls from foreign operators requesting an inland number.
Calls requesting a credit for a previous call where incorrect information had been given.
Calls from text phones.
Methodology
Allocates 100% to the DQ Non Chargeable Component CO927.
Data Source/s
Allocated directly, no data source/s required.
See Appendix E for Component Destinations
PG933A
Phonebooks
Description
This Plant Group (PG) captures the Profit and Loss (P&L) Non-ETG pay, Transfer charge etc and Balance Sheet costs
of Phonebook compilation.
Costs for Phonebook compilation are made up of a mixture of direct and internal trading costs for paper, printing,
binding, delivery, freight. At the top level, the internal charges net off to zero.
Methodology
Allocates 100% to the Directories Component CKT12.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
310
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG980R
Openreach Repayment Works
Description
This Plant Group (PG) captures the Profit and Loss (Stores, non-ETG pay) and Balance Sheet (Fixed Asset GBV) costs
of Openreach repayment works.
Repayment Work’s main role is to ensure the integrity and protection of BT apparatus, where the highway
infrastructure is required to be altered due to promoting authority works under an act of parliament and protecting
the network from damage as a result of third party works.
The main direct Classes of Works (CoWs) are, HK, HM, HO, HE, HPL, HDM, HUR, HSW, HL HNE.
Methodology
Allocates 100% to the OpenReach Repayment Works Component CK980.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG981R
Openreach Time Related Charges
Description
This Plant Group (PG) captures Profit and Loss (non-ETG pay) and Balance Sheet (Fixed Asset GBV) costs associated
with time scale charges. Time scale charges refer to time spend on planned/ Unplanned jobs when a timescale
charge is appropriate.
Costs are allocated to the following Classes of Work (CoWs).
•
•
•
•
•
TRC Timescale-Time Related charging.
CNS – Customer Network Services.
NWKB – Non Capital P&I Exchange Lines (Business).
NWKR - Non Capital P&I Exchange Lines (Residential).
CoW stating with AP/AM.
Methodology
Allocates 100% to the Openreach Time Related charges Component CK981.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG982R
Openreach Managed Services for Wholesale
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Wholesale
Products and services or activities, as defined by Aspire. The costs are mainly be pay in nature, although there will
be some depreciation and stores costs.
Methodology
Allocates 100% to the OpenReach Managed Services for Wholesale Component CK982.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
311
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PG983R
Openreach Apparatus Works
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Retail
Products and services or activities, as defined by Aspire. It will mainly be pay in nature, although there will be some
depreciation and stores costs.
Methodology
Allocates 100% to the Openreach Managed Services for Retail Apparatus Component CK983.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG984R
Openreach Managed Services for Global
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Global
Services or activities, as defined by Aspire. It will mainly be pay in nature, although there will be some depreciation
and stores costs.
Methodology
Allocates 100% to the Openreach Managed Services for Global Component CK984.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG985R
Openreach Managed Services for Retail Other
Description
This Plant Group (PG) captures the costs of any work done by Openreach that specifically supports BT Retail
Products and services or activities, as defined by Aspire. It will mainly be pay in nature, although there will be some
depreciation and stores costs. Methodology
Allocates 100% to the Openreach Managed Services for Retail Other Component CK985.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PG986R
Openreach Other Activities
Description
This Plant Group (PG) captures the income for Openreach other activities on F8 Code 209942 Miscellaneous other
operating income.
Methodology
Allocates 100% to the Openreach Other Activities Component CK986.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
312
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PG989A
Special Fault Investigation (SFI)
Description
This Plant Group (PG) captures the Profit and Loss (Depreciation, ETG and Non-ETG Pay and Non Pay) and Balance
Sheet costs of Special Fault Investigations (SFI).
A Local Loop Unbundling (LLU) SFI can be initiated by an LLU Communications Provider (CP) when a Metallic Path
Facility (MPF) or Shared Metallic Path Facility (SMPF) tests OK on the Openreach line test system, but where there
might be a problem with the CP’s Asymmetric Digital Subscriber Line (ADSL) or Symmetric Digital Subscriber Line
(SDSL) service.
The LLU SFI is a chargeable investigation product which attempts to identify and resolve DSL service affecting
problems.
Methodology
Kilo Man Hours (KMH) Reports provided, obtained from the Openreach Demand and Forecast Planning team, will
be used to identify the number of man hours booked to the SFI activity. A man hour rate will then be applied to
derive the total SFI cost that will be pointed to this PG.
This PG exhausts 100% to Component CO989 – Special Fault Investigations and then onwards to SL989 –
Openreach External SFI and SO480B Openreach Internal SFI. The allocation to the internal and external SFI services
will follow the internal external volume split. The rationale for this methodology is that this is the only data available
that provides an internal /external split for the SFI activity.
Data Source/s
KMH volumes from the Openreach Demand and Forecast Planning team.
See Appendix E for Component Destinations
PGB10A
Provision and Installation Adjustment to Wholesale broadband access market 3/Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives Markets 1 and 2 Provision and Installation costs that were taken out of the Wholesale
broadband access market 3/Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Provision and Installation Adjustment to Sub-Market 3/Non Geographic Component
COB10A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
313
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PGB10B
Provision and Installation Adjustment to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Provision and Installation proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Provision and Installation Adjustment to Sub-Market 1 Component COB10B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGB10C
Provision and Installation Adjustment to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Provision and Installation costs proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Provision and Installation Adjustment to Sub-Market 2 Component COB10C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
314
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PGB20A
Maintenance Adjustment to Wholesale broadband access market 3 /Non-Geographic Services
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives Market 1 and 2 Maintenance costs that were taken out of the Wholesale broadband
access market 3/Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Maintenance adjustment to Sub-Market 3/Non Geographic Component COB20A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGB20B
Maintenance Adjustment to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Maintenance costs proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Maintenance adjustment to Sub-Market 1Component COB20B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
315
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PGB20C
Maintenance Adjustment to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Maintenance costs proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Maintenance adjustment to Sub-Market 2 COB20C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGBC0A
Accommodation Adjustment to Wholesale broadband access market 3 /Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives Market 1 and 2 Accommodation costs that were taken out of the Wholesale
broadband access market 3 /Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Accommodation adjustment to Sub-Market 3/Non Geographic Component COBC0A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
316
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PGBC0B
Accommodation Adjustment to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives Accommodation costs proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Accommodation adjustment to Sub-Market 1 Component COBC0B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGBC0C
Accommodation Adjustment to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Accommodation costs proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Accommodation adjustment to Sub-Market 2 Component COBC0C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
317
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PGD20A
DSLAM Depreciation Adjustment to Wholesale broadband access market 3 /Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives Market 1 and 2 DSLAM depreciation taken out of the Wholesale broadband access
market 3 /Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the DSLAM depreciation adjustment to Sub-Market 3/Non Geographic Component
COD20A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGD20B
DSLAM Depreciation Adjustment to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the DSLAM deprecation proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the DSLAM depreciation adjustment to Sub-Market 1 Component COD20B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
318
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PGD20C
DSLAM Depreciation Adjustment to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the DSLAM Depreciation proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the DSLAM depreciation adjustment to Sub-Market 2 Component COD20C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGD21A
DSLAM Balance Sheet Adjust to Wholesale broadband access market 3 /Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Wholesale broadband access market 1 and 2 DSLAM Assets taken out of the
Wholesale broadband access market 3/Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the DSLAM assets adjustment to Sub-Market 3/Non Geographic Component COD21A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
319
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PGD21B
DSLAM Balance Sheet Adjust to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the DSLAM Assets proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the DSLAM assets adjustment to Sub-Market 1Component COD21B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGD21C
DSLAM Balance Sheet Adjust to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the DSLAM Assets proper to Mark DSLAM assets adjustment to Wholesale broadband
access market 3 Non Geographic Component COD21A.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the DSLAM assets adjustment to Sub-Market 2 Component COD21C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
320
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PGDA0A
Backhaul Depreciation Adjustment to Wholesale broadband access market 3 /Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Backhaul Depreciation taken out of the Wholesale broadband access market 3 /
Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Backhaul depreciation adjustment to Sub-Market 3/Non Geographic Component
CODA0A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGDA0B
Backhaul Depreciation Adjustment to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Backhaul Depreciation proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Backhaul depreciation adjustment to Sub-Market 1Component CODA0B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
321
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PGDA0C
Backhaul Depreciation Adjustment to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Backhaul Depreciation proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Backhaul depreciation adjustment to Market 2 Component CODA0C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGDA1A
Backhaul Balance Sheet Adjust to Wholesale broadband access market 3 /Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Markets 1 and 2 Backhaul Assets taken out of the Wholesale broadband access
market 3/Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Backhaul assets adjustment to Sub-Market 3/Non Geographic Component CODA1A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
322
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
PGDA1B
Backhaul Balance Sheet Adjust to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Backhaul Assets proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Backhaul assets adjustment to Sub-Market 1Component CODA1B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGDA1C
Backhaul Balance Sheet Adjust to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Backhaul Assets proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Backhaul assets adjustment to Sub-Market 2 CODA1C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGDP1A
Land and Buildings Balance Sheet Adjust to Wholesale broadband access market 3 /Non-Geographic Services.
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated
overheads. To populate these services a JV is submitted to take the specific costs out of the non-geographic
services and re-point them to the geographic services.
The geographical services are split geographically into the following Markets:
323
Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives Market 1 and 2 Land and Building Assets taken out of the Wholesale broadband
access market 3/Non-geographic services.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Land and Buildings assets adjustment to Sub-Market 3/Non Geographic Component
CODP1A.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGDP1B
Land and Buildings Balance Sheet Adjust to Wholesale broadband access market 1
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical costs.
This Plant Group (PG) receives the Land & Buildings Assets proper to Wholesale broadband access market 1.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Land and Buildings assets adjustment to Sub-Market 1 Component CODP1B.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGDP1C
Land and Buildings Balance Sheet Adjust to Wholesale broadband access market 2
Description
The Wholesale Broadband Access market incorporates services that represent geographical areas. These
geographical services include specific costs that can be geographically split but excludes their associated overheads.
To populate these services a JV is submitted to take the specific costs out of the non-geographic services and repoint them to the geographic services.
The geographical services are split geographically into the following Markets:
Wholesale broadband access market 1 - BT only operator (covers the Exchange areas where BT is the only operator).
Wholesale broadband access market 2 - 2 to 3 principal operators (covers the Exchange areas where there are two
or three operators).
Wholesale broadband access market 3 - 4 or more principle operators (covers the Exchange areas where there are
four or more operators). This Market is not regulated and therefore not separated from the non-geographical
costs.
324
Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
This Plant Group (PG) receives the Land and Buildings Assets proper to Wholesale broadband access market 2.
'Broadband' means fast access to the internet and other electronic services.
Methodology
100% apportionment to the Land and Buildings assets adjustment to Sub-Market 2 Component CODP1C.
Data Source/s
Allocated directly, no data source required.
See Appendix E for Component Destinations
PGT01N
Line Cards trade
Description
This Plant Group (PG) captures the costs of internal trade for Line Cards which provides routing functionality. This
PG contains both the revenue earned by BT Wholesale and the related payment made by Openreach therefore
netting off to zero. This PG has no visibility in the reported regulatory statements but it allows for a Line of Business
(LoB) view of the Wholesale Line Rental (WLR) costs.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
PGT02N
Backhaul Electronics trade
Description
This Plant Group (PG) captures the costs of internal trade for Backhaul Electronics between BT Wholesale and
Openreach. This PG contains both the revenue earned by BT Wholesale and the related payment made by
Openreach netting off to zero. This PG has no visibility in the reported Regulatory Statements but it allows for a Line
of Business (LoB) view of backhaul costs.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
PGT03N
Access Electronics trade
Description
This Plant Group (PG) captures the internal trade for Access Electronics. This PG contains both the revenue earned
by BT Wholesale and the related payment made by Openreach therefore netting off to zero. This PG has no visibility
in the Reported Regulatory statements but it allows for a Line of Business (LoB) view of private circuit costs.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
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Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
Description
PGT04N
WES/BES Electronics trade
Description
This Plant Group (PG) captures costs for internal trade for WES/BES electronics. This PG contains both the revenue
earned by BT Wholesale and the related payment made by Openreach therefore netting off to zero. This PG has no
visibility in the reported Regulatory Statements but it allows for a Line of Business (LoB) view of Ethernet Products
costs.
Wholesale Extension Services (WES) is a high speed, point to point data circuit which is run over fibre to provide a
secure link between a third party customer site and the communication provider’s (CP) network.
Backhaul extension Service (BES) is a high speed, point to point data circuit which is are run over fibre to provide a
secure link between a Local Loop Unbundling (LLU's) operators equipment at a unbundled Main Distribution Frame
(MDF) site and a site within an operators own network.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
PGT05N
Local Loop Unbundling (LLU) Power and ventilation trade
Description
This Plant Group (PG) captures the costs of internal trade for Local Loop Unbundling (LLU) Power and Ventilation.
The trade is between Wholesale and Openreach.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
PGT06N
Network Features trade
Description
This Plant Group (PG) captures the costs of internal trade for Network Features. This PG contains both the revenue
earned by BT Wholesale and the related payment made by Openreach.This PG has no visibility in the reported
Regulatory Statements but it allows for a Line of Business (LoB) view of Network Features costs.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
PGT07N
Network managed service Selling, General and Administration (SG&A) trade
Description
This Plant Group (PG) captures the SG&A costs of Network managed services
This PG contains both the revenue earned by Bt Wholesale and the related payment made by Openreach netting
off to zero. This PG has no visibility in the reported regulatory statements but it allows for a Line of Business (LoB)
view of this trade.
Methodology
Allocates 100% to the OpenReach Internal Trades Component CZ900.
Data Source/s
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Detailed Attribution Methods (DAM) – Section 6 Plant Group
Base Ref
Description
Allocated directly, no Data Source/s required.
See Appendix E for Component Destinations
PGT11M
Light User Scheme (LUS) trade in
Description
This Plant Group (PG) captures the costs of the Light User Scheme internal trade. The Light User Scheme is designed
to help people who need a phone to keep in touch but actually make few phone calls themselves. The Light User
Scheme gives a rebate for residential customers with low telephone usage.
Methodology
Allocates 100% to the Light User Scheme (LUS) trade in Component CKT11.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PGT12M
Directories trade in
Description
This Plant Group (PG) captures the costs of internal trade for Directories.
Directories help find business products and services along with local residential numbers.
Methodology
Allocates 100% to the Directories Trade In Component CKT12.
Data Source/s
Allocated directly, no data sources required.
See Appendix E for Component Destinations
PGT14J
Service Level Guarantee payments and revenues.
Description
This Plant Group (PG) apportions transactions for late provision/repair, re-charged from BT Global Services to
Openreach.
Methodology
Openreach Service Level Guarantee (SLG) costs are apportioned across Wholesale Line Rental (WLR) services, based
upon number of lines volumes, with a weighting of 2:1 for connections compared to rentals, representing an
increased likelihood of Service Level Guarantee (SLG) compensation for provisioning compared to maintenance.
BT Global Services SLG costs (Component CKT14 - Service level guarantee Global trade in) are apportioned across
business volumes only.
Internal revenues are apportioned across Wholesale Line Rental (WLR) Retail Products on the same volumes and
weightings, such that end-to-end revenues and costs are matched by Retail Product.
Allocates 100% to the Service level guarantee Global trade in Component CKT14.
Data Source/s
Volumes are taken from Powerhouse at Period 12.
See Appendix E for Component Destinations
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Section 6 Plant Group Dictionary – Detailed Attribution Methods (DAM)
Base Ref
328
Description
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
7 Network Component Allocations - Network Charging
7.1 Overview
BT’s total network costs are disaggregated into a number of network components. Network components are used in the provision of
Wholesale Services. The way in which network components receive costs is by the attribution methods described in detail in earlier sections
of the DAM. This section describes how these component costs are charged to Retail Residual products.
Note that in this section it is important to bear in mind the distinction between a “charge” – which is the revenue amount generated from
providing a service – and “cost” – which is the cost of providing that service.
7.1.1 Wholesale Markets Costs
The total costs of the Wholesale Markets are given simply by aggregating the costs of the network components. However, it is necessary to
attribute that total cost to individual wholesale services. For services provided on a cost basis, the cost to Wholesale Markets of providing
such service is clearly the cost of each component that is used in providing the service. For some Wholesale Services, the calculation of the
cost of service provision is more complicated, as each service represents the utilisation of one or more network components, and its cost is
therefore determined by an attribution of component costs. This attribution can involve the calculation and application of route factors
(usage factors) or other appropriate basis of apportioning components costs.
Note that components are either used in the provision of services for which there is a published price, or are used by themselves and charged
on a cost basis. All such cost basis services arise in markets in which BT has not been found to have significant market power. No components
are used in providing services for which there is a published price and services charged on a cost basis.
Network components represent the collection of various different cost types. However, one of the distinguishing features of a component is
that it would usually have a single cost driver. Call switching is consumed in the provision of minutes of conversation time, and so
conversation time is used as the cost driver for switching costs. Therefore, in the case of switching, component costs or charges flow to
downstream retail products via services pro-rata to the volume of call minutes generated by each product or Service.
7.1.2 Wholesale Market Revenues
Wholesale Market revenues are obtained from network charges made to BT or to Other Communication Providers.
The bases of charging are as follows:
In most cases, a published price is used as the basis of charging for the provision of Wholesale Services. Wholesale Services are sold both
externally to Other Communication Providers (OCPs) and internally to BT’s retail activities. Note that these services utilise one or more
network components.
At a ‘cost’ price, services provided on a Historical Cost Accounting (HCA) cost basis, are most usually but not exclusively provided internally
to BT’s own downstream Retail Markets.
The following sections set out:
•
•
•
•
•
•
•
An overview of network component and Wholesale Service volumes, including discussion of Route/Usage factors.
Discussion of the cost basis of charging.
Charging to downstream Retail Residual products.
Wholesale Market Statements.
A table showing components charged on a cost basis.
A table showing the Wholesale Service destinations of the costs of components recovered via Wholesale Service charging.
Diagrams of the various route and call types that determine conveyance costing and charging.
7.1.3 Network Component Volumes
The charge made to each downstream Retail Residual product is driven by the volume of that product sold/used during the year. The product
volume also defines the component volumes via the application of Route/Usage factors.
7.1.3.1 Conveyance Products and Components
Where Retail Residual products incur a cost charge, their volumes drive the component volumes directly. Typically, where a product is carried
across a number of components, the product volume can be applied directly to each component.
Since each component may support more than one product, the total component volume is determined by aggregating the volume of each
product that uses it.
If component Z is utilised by products A, B and C, which generate 150, 250 and 100 minutes of use respectively, then component Z has a
total volume of 500 minutes.
However, in some cases, one product may utilise a component more intensively than another. In this case it is necessary to factor the product
volumes. Taking the example above, if in fact it is necessary for product C to utilise component Z twice in each minute, then the total volume
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
of usage of component Z is 600 minutes (150 + 250 + (100x2)). It is necessary to know the utilisation rate of each component by each
product. This relationship gives the factored volume for each component.
For the utilisation rate to be calculated, it is necessary to measure calls on the network. Clearly, it is not practical to measure all calls for every
day of the reporting period (in excess of 90 billion). For the purposes of network management, each telephone exchange monitors one call
in 300 passing through it. Using this facility, combined with a suitable periodicity (28 days), a statistically significant call sample of
approximately 45 million calls can be extracted from which the utilisation factors can be calculated.
For each call in the sample, its routeing is determined from the switch record. Each call has a switch record, which captures its routeing detail,
that is, how the call has been carried over the network, and therefore generates such details as distance, and the number of times the call
passes through any given component (such as a local exchange).
The sample therefore gives an observed relationship between the provision of products and the utilisation of conveyance components.
This is illustrated as follows, (note that route types are considered further below).
Product 1
Total
Route Type
Minutes
1
200
2
100
3
80
4
20
Total
400
Utilisation Factor
%
50
25
20
5
100
A
200
100
80
20
400
1
Component utilisation
B
C
100
80
20
200
0.5
D
200
200
80
20
500
1.2
Conveyance products and components
This result shows that for the sample of 400 minutes of call duration generated by product 1, there is total minute utilisation of component
A of 400, giving a utilisation factor of 1 (400/400). For component D, there is a total utilisation of 500 minutes, so the utilisation factor is
1.2 (500/400).
Product 2
Total
R oute Type
M inutes
1
200
2
100
3
4
Total
300
Utilisation Factor
%
75
25
A
200
100
100
300
1
Com ponent utilisation
B
C
400
200
600
2
D
100
50
150
0.5
Conveyance products and com ponents
Similarly, it shows that for the sample of 300 minutes of call duration generated by product 2, there is total minute utilisation of component
A of 300, giving a utilisation factor of 1 (300/300). For component D, there is a total utilisation of 150 minutes, so the utilisation factor is
0.5 (150/300).
In order to obtain the total factored volume for each conveyance component for the full year, we take the product volumes and apply the
sampled utilisation factors (e.g. product volumes x utilisation factor = factored component volume).
If Product 1 has a full year volume of 8,000 minutes, then it has generated utilisation of 8,000 minutes of component A and 9,600 minutes
of component D. Similarly, if Product 2 has a full year volume of 3,000 minutes, then there is utilisation of component A of 3,000 and of
component D of 1,500.
By aggregating the result for each product, we get a total factored volume for each component. Following the illustration above, the
factored volume for component A is 11,000 minutes, and 11,100 minutes of component D.
In order to obtain a unit cost for each component, divide the component cost (derived from Plant Group (PG) and other cost attributions
described elsewhere) by the factored volume for each component.
7.1.3.2 Transmission Volumes (including Partial Private Circuit components)
Transmission costing is based on the Core Transmission Circuit costing System (CTCS).
In simple terms, CTCS is an inventory of all circuits. Every circuit in the network is tagged and details of its route length and routeing are
recorded. An example of the detail captured in CTCS is as follows:
•
The number of 2Mbit/s circuits that use 34Mbit/s bearers, and the total length of those circuits (length is the appropriate volume for attributing the cost
of 34Mbit/s bearers).
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
•
The number of 34Mbit/s circuits that use 34Mbit/s bearers, and the total length of those circuits.
By factoring the volumes we can take account of the fact that 16 2Mbit/s circuits can be carried on a 34Mbit/s bearer, whilst alternatively it
can carry only one 34Mbit/s circuit. CTCS, also tells us what is the total circuit length carried over 34Mbit/s bearers. Costs can then be
attributed on the basis of the number of kilometres of 34Mbit/s bearers used by 2Mbit/s circuits.
The detailed workings of CTCS are considered more fully in the data source section of the DAM (section 9).
7.1.3.3 Other volumes
For other components, the volume is determined consistent with the principles outlined above. Where there is a one-for-one relationship
between the product and the component, then there is a direct relationship between the product volume and the component volume. Where
the relationship is not so straightforward, it is necessary to take account of different utilisation rates by factoring the component volume.
7.1.3.4 Data sources for Volumes
Volumes are supplied from the data source most appropriate to each product consistent with reliability and ease of data access. The major
data sources used to provide volumes are as follows:
Call Statistics Centralisation System (CSCS)
Inter Network Call Accounting (INCA)
Powerhouse/Hyperion
Charge Raising System (CRS)
Integrated Network System (INS)
Planning Assignment and Configuration System (PACS)
Core Transmission Circuit costing System (CTCS)
Customer Oriented System for Management of Special Services
(COSMOSS)
Operator Report Generation System (ORGS)
Multi Services Intranet Platform Model (MSIP)
Data Sources for Volumes_Diagram
7.1.4 Conveyance Wholesale Service Volumes
There are four different route types specified for Regulatory Accounting purposes:
Route Type 1 - Own Exchange.
Route Type 2 - Adjacent Exchange.
Route Type 3 - Single Tandem.
Route Type 4 - Double plus Tandem.
These are illustrated further in Section 7.9.1.
These route types are applied to each one of a number of call types. These call types are illustrated further in Section 7.9.1.
For each call type, there are therefore four possible different route types across which a call can be carried and each one of those route types
represents a defined set of Wholesale Services. For example, each call of BT to BT type that takes route type 2 utilises the Call Origination
Local Exchange and the Call Termination Local Exchange Wholesale Services.
There is also a defined usage factor for each Wholesale Service comprising the route. Typically, the usage factor is 1. However for route type
1, which defines a call that passes to a local exchange and then is terminated, the Wholesale Services used are call origination and call
termination. The usage factor on route type 1 for each of these Wholesale Services is 0.5 (see route type diagram at Section 7.9.1 below).
From these diagrams, the relationship between call types and Wholesale Services can be clearly seen.
Taking the full year product volume as the starting point, the sampled routing is applied to that volume, to determine the percentage of the
total calls that pass across the various route types. From this the Wholesale Service volume can be determined because we know which
Wholesale Services comprise each route, and also the route factor for each Wholesale Service on each route type.
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
7.2 Wholesale Markets Revenue – Cost based charging
The cost charge for the component is calculated as the historical cost of the component
The cost charge to products is determined based on the percentage of each components utilisation driven by the product.
If component Y supports a total volume for the year of 100 minutes, and product Q drives 60 minutes of that total, then product Q is charged
with 60% of the cost of component Y.
The tables set out in section 7.5 show the major charging destinations of those components charged on a cost basis. The destinations listed
cover at least 90% of the total network charge made in respect of each component.
The tables also describe the cost driver for each component.
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
7.3. Wholesale Markets Revenue - Charging for Wholesale Services
There is a defined relationship between the products provided by BT and network Wholesale Services. Product volumes are translated into
Wholesale Service volumes and the network charge in respect of each product is simply the aggregate of the (price x time of day volume)
charge calculated for each Wholesale Service used in providing that product. Wholesale Service prices are those published by BT for each
service as Network Charge Change Notifications (NCCNs).
This is illustrated for a conveyance product below.
Taking the volume of minutes of conversation time for the calls product, as recorded by day/evening/weekend in the Calls Statistics
Centralisation System (CSCS) database, the volume is derived of each Wholesale Service used in providing that volume of the product (that
is, minutes of conversation time), by reference to the call type. As considered above, this is done by taking the product volume and allocating
it to each route type consistent with the sampled routeing observed for each product, and then multiplying each route type volume by the
usage factor applicable to each Wholesale Service relevant to the route type.
The charge for the Wholesale Service is then calculated as the product of the day/evening/weekend price and the relevant time of day
volume.
The network charge is then simply a result of aggregating the charge calculated in respect of each Wholesale Service.
An example of this is given below.
Assuming there are 1000 calls of product P, which is categorised as call type X. Call record details observed in the call sample indicate that of
the 1000 calls made of Product P, 800 (or 80%) calls follow route type 2 and 200 (or 20%) calls follow route type 3.
We know that for call type X.
Route type 2 uses 1 of each of the Call Origination Local Exchange Wholesale Service (from the General Network Basket), and the Call
Termination Local Exchange Wholesale Service (from the Call Termination basket); and that
Route type 3 uses 1 of each of the Call Origination Local Exchange Wholesale Service (from the Call Origination Basket), the Local Tandem
Conveyance Wholesale Service (from the Tandem Layer Basket), and the Call Termination Local Exchange Wholesale Service (from the Call
Termination basket).
The relationship between Product P and Wholesale Services is expressed through the call type:
80% of Product P calls follow Route Type 2 which for call type X uses 1 of each of Call Origination Local Exchange Wholesale Service, and the
Call Termination Local Exchange Wholesale Service and 20% of calls follow route type 3 which for call type X uses 1 of each of Call Origination
Local Exchange Wholesale Service, the Local Tandem Conveyance Wholesale Service, and the Call Termination Local Exchange Wholesale
Service.
Every minute of Product P uses:
•
•
•
1 minute of Call origination Local Exchange Wholesale Service (i.e., 80% + 20%),
1 minute of Call Termination Local Exchange Wholesale Service (again, 80% + 20%)
0.2 minutes of Local Tandem Conveyance Wholesale Service (i.e., 0 + 20%).
If the 1000 Product P calls generate 100 minutes of daytime conversation time, and the daytime prices for Call origination Local Exchange
Wholesale Service, Call Termination Local Exchange Wholesale Service and Local Tandem Conveyance Wholesale Service are £0.1, £0.2 and
£0.3 respectively, then the charge made for providing 100 daytime minutes of Product P is:
(Volume x usage factor x price) = (100 x 1 x £0.1) + (100 x 1 x £0.2) + (100 x 0.2 x £0.3) = £36
The table set in section 7.7 shows the major charging destinations of Wholesale Services. The destinations listed cover at least 90% of the
total network charge made in respect of each Wholesale Service.
A number of Wholesale Service Statements are prepared differently. These are considered separately, below.
7.3.1 Partial Private Circuits (PPCs) – Calculation of internal and external reported revenues
The revenue disclosed in the Regulatory Financial Statements is calculated based on a Price x Quantity (PxQ) basis. This applies to both
internal (to downstream BT divisions) and external (to other CPs) revenue.
Price (P): The price used for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is based on the relevant
entries in the Carrier Price List (CPL). The CPL is published by BT Wholesale to document contractual pricing and generally to inform Industry
of the interconnect charges in use by BT for calls originating, transiting, or terminating on the BT network. For Partial and Private Circuits
(PPCs), these prices are contained in section B8 of the CPL.
Quantity (Q): The quantity (also referred to as volumes) used for both downstream BT divisions and other CPs is based on the volume of
circuits sold, connected or actively in use. For circuits supplied to BT downstream that do not use a Point of Handover, an adjustment for the
local end rental charge is made - the level of adjustment and application of the adjustment is in line with direction from Oftel and
subsequently Ofcom. The quantity used in the RFS for Partial Private Circuits (PPCs) is based on revenue system size (RSS). RSS is a revenue
generating measure which counts only the circuits that generate revenue.
The calculation of PPC revenue reported in the Regulatory Financial Statements is described in further detail below:
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Price (P)
The price reported in the RFS for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is based on the
relevant entries in the Carrier Price List (CPL) after applying certain adjustments that are explained below. This process to arrive at the price
(applied to internal and external revenue) used for reporting purposes has been discussed and demonstrated to Ofcom.
In general, the prices used in the RFS for the revenue calculation are sourced directly from the CPL. If the relevant CPL price for the service
reported in the RFS changed within the relevant year, the price reported in the RFS is the calculated weighted average of the relevant price
applicable throughout the year, weighted by time. This is further explained below:
•
•
•
•
Connection Prices – the price reported in the RFS is the calculated weighted average of the relevant price applicable throughout the year, weighted by
time. Following Ofcom’s BCMR statement in 2009, revenues in relation to Siteconnect will be reported within the internal revenues from 2008/09 RFS.
Link Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable throughout the year, weighted by time.
Following Ofcom’s BCMR statement in 2009, rental revenues in relation to Siteconnect will be reported within internal revenues from 2008/09 RFS.
Local End Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable throughout the year, weighted by
time. A local end adjustment is applied to all prices for internal local ends as internally sold private circuits does not require Point of Handover access the level of adjustment and application of the adjustment is in line with direction from Oftel and subsequently Ofcom.
Link & Local End - Enhanced maintenance charge: An enhanced maintenance charge applies to all circuits and is separately identified in the CPL with the
exception of 622Mbit/s circuits where the Enhanced Maintenance option is included in within the CPL tariff. The fixed p.a. enhanced maintenance
charge is split between Local End and Link based on entries from the CPL.
For example: The 64k fixed p.a. enhanced maintenance charge of £40.31 is split between the Local End (£33.13) and Link (£7.18) based on
the relative Local End (£289.67) and Link (£62.81) prices in the CPL.
•
•
•
•
•
•
•
Terminating / Distribution prices: the price reported in the RFS is the calculated weighted average of the relevant price applicable throughout the year,
weighted by time.
Trunk Prices - the price reported in the RFS is the calculated weighted average of the relevant price applicable throughout the year, weighted by time.
Distribution and Trunk - Enhanced maintenance charge: A per km enhanced maintenance charge is separately identified in the CPL with the exception of
622Mbit/s circuits where the Enhanced Maintenance option is included in within the CPL tariff. This was applied to all per km distribution length in
2007/08 and it will also be applied to per km Trunk length in the 2008/09 RFS.
Third Party customer infrastructure: the external charge reported in the RFS is based upon the calculated weighted average of the relevant price
applicable throughout the year, weighted by time and the mix of volumes. No separate average price is reported in the RFS due to the many different mix
of prices listed on the CPL and associated mix of volumes.
Protected path variants and resilience: the external charge reported in the RFS is based upon the calculated weighted average of the relevant price
applicable throughout the year, weighted by time and the mix of volumes. No separate average price is reported in the RFS due to the many different mix
of prices listed on the CPL and associated mix of volumes.
Other single payments (OSPs): the external charge reported in the RFS is based upon the relevant reported general ledger postings and the internal
charge reported in the RFS is based upon the charge in the management accounts.
Point of Handover – CSH and ISH: the external charge reported in the RFS is based upon the calculated weighted average of the relevant connection and
rentals prices applicable throughout the year, weighted by time and mix of volumes.
Quantity (volumes)
The quantity (also referred to as volumes) used for both downstream BT divisions and other CPs is based on the volume of circuits sold,
connected or actively in use.
The primary volume sources used to arrive at the quantity reported in the RFS include CTCS and COSMOSS (for main link, trunk and
distribution) and Powerhouse (connections and local ends).
The rental volumes reported in the RFS is based on spot volumes. This is based on the revenue generating total volumes as at the end of
September, being the mid way point of the accounting period of each year. As such the RFS show the total rental volumes as at 30 September
of the relevant year.
The connection volumes reported in the RFS are based on the number of total new connections in the relevant financial year.
The main adjustments made to the raw volume sources to arrive at the volumes reported in the RFS are explained below:
•
•
•
BT Internal (Own Use) circuits: The source system CTCS provides total raw volume data. As such, the volumes in the relevant services have been adjusted
to exclude the network element of BT internal (Own Use).
Local ends: For certain circuits, the number of local ends is calculated based on a review of the product profile. For these circuits, an adjustment is
applied to the volumes of circuits to convert the raw volumes from source system into local ends. This adjustment applied is based on the product profile
as the number of local ends per circuit can vary depending on the product.
Additional service granularity for reporting purposes: The raw volumes provided by the CTCS system do not necessarily provide volumes that meet the
exact granularity requirements for reporting purposes requested by Ofcom. As such, where necessary, the raw volumes in these products / services have
been adjusted to further analyse the parent product / service into sub-products / services for reporting purposes. The adjustments made is calculated by
using information from the Powerhouse / COSMOSS / CTCS systems to calculate the ratio / percentage split between these sub-products / services and
applies this split to the total parent product / service volumes.
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
•
•
Average bandwidth for reporting: For reporting purposes, BT reports the Kilostream and Kilostream “N” products, however does not distinguish between
bandwidth for these products. As such, an adjustment is made to the raw volumes using the average bandwidth of all circuits where a factor (derived
from information from a system which tracks all kilostream circuits) is applied to Kilostream “N” to convert this into 64Kbit/s equivalents.
Trunk and distribution: As the core transmission only measures over 2Mbit/s lengths, there is no readily available analysis between trunk and distribution
lengths for 64Kbit/s lengths. An adjustment is therefore made to report transmission volume in total (to include both trunk and distribution) for
reporting purposes.
7.3.2 Calculation of PPC revenue reported in the Regulatory Financial Statements (RFS)
The calculation of PPC revenue reported in the Regulatory Financial Statements is described below:
Price (P)
The price reported in the RFS for both BT’s downstream business (that is BT Retail and BT Global Services) and other CPs is based on the
relevant entries in the Carrier Price List (CPL) after applying certain adjustments that are explained below. This process to arrive at the price
(applied to internal and external revenue) used for reporting purposes has been discussed and demonstrated to Ofcom.
The prices used in the RFS for the revenue calculation is sourced directly from the CPL. If the relevant CPL price for the service reported in
the RFS changed within the relevant year, the price reported in the RFS is the calculated weighted average of the relevant price applicable
throughout the year, weighted by time.
Other adjustments made to the CPL entries to arrive at the price disclosed in the RFS include:
•
•
•
Local ends: A local end adjustment is applied to all prices for internal local ends as internally sold private circuits doe not require Point of Handover access
- the level of adjustment and application of the adjustment is in line with direction from Oftel and subsequently Ofcom.
Enhanced maintenance charge: An enhanced maintenance charge applies to all circuits and is separately identified in the CPL with the exception of
622Mbit/s circuits where the Enhanced Maintenance option is included within the CPL tariff. The fixed p.a. enhanced maintenance charge is split
between Local End and Link based on entries from the CPL.
Trunk and distribution: As the core transmission only measures over 2Mbit/s lengths, there is no readily available analysis between trunk and distribution
lengths for 64Kbit/s lengths. An adjustment is therefore made based on the trunk and distribution length prices in the CPL and the number of 64Kbit/s
circuits to split between distribution and trunk which is then used to derive an average price for 64Kbit/s transmission for reporting purposes.
Quantity (volumes)
The quantity (also referred to as volumes) used for both downstream BT divisions and other CPs is based on the volume of circuits sold,
connected or actively in use.
The primary volume sources used to arrive at the quantity reported in the RFS include CTCS and COSMOSS (for main link, trunk and
distribution) and Powerhouse (connections and local ends).
The rental volumes reported in the RFS is based on spot volumes. This is based on the revenue generating total volumes as at the end of
September, being the mid way point of the accounting period of each year. As such the RFS show the total rental volumes as at 30 September
of the relevant year.
The connection volumes reported in the RFS are based on the number of total new connections in the relevant financial year.
The main adjustments made to the raw volume sources to arrive at the volumes reported in the RFS are explained below:
•
•
•
•
•
BT Internal (Own Use) circuits: The source system CTCS provides total raw volume data. As such, the volumes in the relevant services have been adjusted
to exclude the network element of BT internal (Own Use).
Local ends: For certain circuits, the number of local ends is calculated based on a review of the product profile. For these circuits, an adjustment is
applied to the volumes of circuits to convert the raw volumes from source system into local ends. This adjustment applied is based on the product profile
as the number of local ends per circuit can vary depending on the product.
Additional service granularity for reporting purposes: The raw volumes provided by the CTCS system do not necessarily provide volumes that meet the
exact granularity requirements for reporting purposes requested by Ofcom. As such, where necessary, the raw volumes in these products / services have
been adjusted to further analyse the parent product / service into sub-products / services for reporting purposes. The adjustments made is calculated by
using information from the Powerhouse / COSMOSS / CTCS systems to calculate the ratio / percentage split between these sub-products / services and
applies this split to the total parent product / service volumes.
Average bandwidth for reporting: For reporting purposes, BT reports the Kilostream and Kilostream “N” products, however does not distinguish between
bandwidth for these products. As such, an adjustment is made to the raw volumes using the average bandwidth of all circuits where a factor (derived
from information from a system which tracks all KiloStream circuits) is applied to Kilostream “N” to convert this into 64Kbit/s equivalents.
Trunk and distribution: As the core transmission only measures over 2Mbit/s lengths, there is no readily available analysis between trunk and distribution
lengths for 64Kbit/s lengths. An adjustment is therefore made to report transmission volume in total (to include both trunk and distribution) for
reporting purposes.
7.3.3 Interconnect Specific Basket
The average charge for the interconnect specific services are taken directly from the Carrier price list.
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
The PPP average charge is the outturn average charge from SO512 I/X PPP. Note this differs from the 24 hour average price as listed in the
Carrier price list since it reflects the year’s actual time of day weighting.
The following table summarises the derivation of Interconnect Circuit Wholesale Service costs from the Interconnect Specific Components
within the regulatory accounts.
Component
Wholesale Service
Derivation
CO452 Interconnect local end rental
2Mbit/s
CSI Fixed Rental
The unit costs are derived from this component cost and
the relevant circuit volume.
CO453 2Mbit/s connection
Interconnect Circuit
Connection
IEC connection
Rearrangements
The unit cost is derived from the component cost and the
relevant product volumes.
This component also contains the costs of circuit’s
rearrangements.
Component
Wholesale Service
Derivation
CO458 Interconnect Extension circuits
(IEC) 2Mbit/s link
IEC per link rental
The unit cost is derived from the component cost and the
relevant product volumes.
CO459 CSI circuits 2Mbit/s link
CSI per link rental
The unit cost is derived from the component cost and
the relevant product volume.
CO466 Interconnect Extension circuits
(IEC) 2Mbit/s per km
IEC per Km rental
The unit cost is derived from the component cost and the
relevant product volume.
CO467 CSI circuits 2Mbit/s per km
CSI per Km rental
The unit cost is derived from the component cost and the
relevant product volume.
CO468 In Span Interconnect circuits
(ISI) transmission
ISI transmission
The unit cost is derived from the component cost and the
relevant product volume.
CO469 IBC connection
IBC Connection
The unit cost is derived from the component cost and the
relevant product volume.
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
7.4. Wholesale Significant Market Power (SMP) Financial Statement Preparation
7.4.1 Overview
The principal set of Wholesale SMP statements are:
•
•
•
•
•
•
The Statements of Financial Performance in the Access and Other Wholesale Markets.
The Statements of Attribution of Wholesale Current Costs by market.
The Statements of Attribution of Wholesale Current Cost Mean Capital Employed.
The Network Activity Statement of Costs detailing the fully allocated component costs of published Network components and where appropriate their
volumes and unit costs.
The Wholesale Service Statements, which show their Fully Allocated Cost (FAC) unit costs, their average charges, and their relationship with the relevant
components.
Wholesale Market Summary Statements showing service revenue, service volumes, average service prices and service FAC, LRIC floors and ceilings.
7.4.2 Network Activity Statement
Component operating costs, Mean Capital Employed and capital costs calculated as previously described are summarised on this statement.
Component unit costs are calculated by dividing the component fully allocated costs by the volume shown. Factored volumes are used when
calculating the component fully allocated unit cost because they more accurately reflect the utilisation of a given component by a product.
7.4.3 Calculation of FAC based on Component Costs and Usage Factors
Wholesale Service FAC unit costs are calculated as the sum of all the relevant component fully allocated unit costs multiplied by the
appropriate usage factor for each Wholesale Service. The relationship between components and Wholesale services is set out in section 6
below. Component fully allocated unit costs are taken from the Network Statement of Costs.
7.4.3.1 Component Usage Factors
Usage factors are calculated as follows:
Product route factors are first split into identifiable up legs (originating), down legs (terminating) and cross legs (cross network) routes. These
are then aligned to recognisable Wholesale Services using the appropriate Call Type template (see section 7.9), which defines the Wholesale
Services that make up each Route Type for each Call Type. Each Wholesale Service has a defined set of network components.
The product’s call volume for the reporting period is introduced into the process. For each Product, the appropriate component route factor
across each route type is applied to the actual call volume, for each of the defined Wholesale Services. After summing the volumes for all four
route types we now have a set of component volumes for each Wholesale Service for each product. These volumes are then consolidated into
a single summary set of component volumes by Wholesale Service. Usage factors can now be calculated by dividing the component volumes
by the total call duration for each Wholesale Service.
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
7.5 Components charged on a cost basis
The table below describes those components charged on a cost basis.
Super Comp
Comp
Description
Driver
Retail Products
CB367
CB367
ISC to frontier link:
This component represents the
link electronics that connect an
International exchange to a
Frontier Station (This section of
the Network is sometimes referred
to as the backhaul network).
International subsea cables
terminate at these Frontier
Stations.
Allocated on a percentage
utilisation basis, pro-rata to the
number of international call
minutes generated by each
product. Volumes for call
minute calculations are sourced
from CSCS and INCA.
Retail Residual Products.
CB451
CB451
Radiostream links:
The costs of point-to-point
microwave transmission
equipment.
Allocated directly to a single
Product.
Retail Residual Products.
CB561
CB561
IX POLO CoNcert:
Interconnect payments to
Communications Networking
Services (UK) (CNS) (formerly
Concert).
Allocated to Products on the
volume of call minutes
generated by each Product
using the other operator's
network.
The call minutes are sourced
from CSCS and INCA and are
factored to reflect differing
rates for different Products.
Retail Residual Products.
CB599
CB599
Interconnect Payment to OLOs:
This Component will capture all
costs relating to IX (Interconnect)
Payments to Other
Communication Providers
(POCPs).
Allocated to products to the
volume of call minutes
generated by each Product
using the other operator's
network. The call minutes are
sourced from CSCS and INCA
and are factored to reflect
differing rates for different
Products.
Retail Residual Products.
CB782
CB782
Development: Captures the cost of
development of special
applications.
Allocated directly to a single
Product.
Retail Residual Products.
CD100
CD100
Low Tisbo 3rd Party Equipment
Depn
Allocated directly to a single
Product.
Retail Residual Products.
CD101
CD101
High Tisbo 3rd Party Equipment
Depn
Allocated directly to a single
Product.
Retail Residual Products.
CD102
CD102
Very High Tisbo 3rd Party
Equipment Depn
Allocated directly to a single
Product.
Retail Residual Products.
CE103
CE103
Low Tisbo Excess Construction
Allocated directly to a single
Product.
Retail Residual Products.
CE104
CE104
AISBO Excess Construction
Allocated directly to a single
Product.
Retail Residual Products.
CO224
CO224
UCP Equipment:
This component captures the costs
of the Universal Card Platform
(UCP) which provides cashless
prepaid or post paid Public
Switched Telephone Network
(PSTN) calls.
Apportioned using the Number
of Calls for each product
sourced directly from the
platform covering around three
quarters of the period e.g.
Periods 1-9 for the year end
apportionment.
Retail Residual Products.
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Driver
Retail Products
CO227
CO227
ASU switches:
The Advanced Services Unit (ASU)
is a collection of switches, which
are used for the following
functions: Customer calls for range
of products FeatureNet 5000;
FeatureNet 1000; Call Centre
Services – Automated Call
Distribution etc.
This relates to all connection costs
in respect of providing customers
with Advanced Services Unit (ASU)
Switching facility from the Digital
Local Exchange (DLE) (Local
Exchange).
Allocated on a percentage basis
to the range of products that
use this component pro-rata to
the call minutes generated by
each product.
Data source is Nemos. (Network
Management Operations
System).
Retail Residual Products.
CO260
CO260
Cambridge Voice Intelligent
Peripheral (VIP):
Cambridge Voice Intelligent
Peripheral (VIP).
Voice Intelligent Peripheral (VIP)
Cambridge is an Intelligent
Network (IN) platform. This
component captures costs of the
electronics used for voice
prompts.
Allocated pro-rata to the
number of call attempts made
by products that use this
component. The call minutes
are sourced from INCA.
Retail Residual Products.
CO261
CO261
Intelligent Contact Manager:
This component captures the costs
of electronics that provide
intelligent call routing to
customers for their various call
centres.
Allocated directly to a single
Product.
Retail Residual Products.
CO262
CO262
I.N Links
Allocate factors sourced from
Call Volumes and Route Factor
Model.
Retail Residual Products.
CO263
CO263
CORE IN
Allocate factors sourced from
Call Volumes and Route Factor
Model.
Retail Residual Products.
CO266
CO266
Cambridge Infrastructure
Allocate factors sourced from
Call Volumes and Route Factor
Model.
Retail Residual Products.
CO270
CO270
Signalling Transfer Point
Allocate factors sourced from
Call Volumes and Route Factor
Model
Retail Residual Products.
CO271
CO271
Alfredo:
This component captures the cost
of the Alfredo (BT GAIN) platform
which supports Intelligent call
routing options for Call Centres.
Allocated directly to a single
Product.
Retail Residual Products.
CO273
CO273
Montrose:
This component captures the costs
of the Montrose Platform which
allows pre-paid Public Switched
Telephone Network (PSTN) calls
for existing customers on Credit
Management and new customers
with credit referral problems.
Allocated pro-rata to full year
call volumes.The sources are
INCA, CSCS and CRS.
Retail Residual Products.
CO378
CO378
PC Rental 622Mbit/s link per km
trunk
Allocated pro-rata to 622Mbit/s
Trunk volumes sourced from
CTCS.
Retail Residual Products.
CO401
CO401
Netstream Equipment
Retail Residual Products.
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Driver
Retail Products
CO405
CO405
DMS 100 call centre
Digital Matrix Switches (DMS) that
are used for BTs own call centres
Costs populated from discrete
assets policy code within CoW
DMC. Allocated directly to a
single product.
Retail Residual Product.
CO414
CO414
Digital IPLC:
This component captures costs
such as maintenance for
International Transmission
Repeater Stations
Allocated directly to a single
Product.
Retail Residual Products.
CO415
CO415
Analogue IPLC:
Captures cost of providing
international circuits such as
connections and maintenance.
Allocated directly to a single
Product.
Retail Residual Products.
CO461
CO461
Private circuit test systems:
Testing of the analogue network is
carried out to protect provision of
all services that use it.
Allocated to Products on the
number of circuits of each
Product. Volumes are sourced
from PC Billing System/
COSMOSS (via Powerhouse).
Retail Residual Products.
CO483
CO483
Flexible Bandwidth Services.
This component captures costs
such as the installation of Flexible
Bandwidth Services (FBS) specific
equipment in an exchange or
customer’s premises. It also
captures the cost of FBS specific
software.
Allocated directly to a single
Product.
Retail Residual Products.
CO657
CO657
Framestream switches:
Costs of electronics and
maintenance associated with
provided X75 protocol switches
Allocated directly to a single
Product.
Retail Residual Products.
CO658
CO658
Inter Framestream switch
transmission:
Captures transmission costs
between X75 Framestream
switches
Allocated directly to a single
Product.
Retail Residual Products.
CO669
CO669
IP Network Dial IP:
Costs associated with dial product
such as modems and associated
maintenance.
Allocated directly to a single
Product.
Retail Residual Products.
CO670
CO670
IP Network Fixed Access:
This component contains the cost
of the following types of
equipment. BT Net Direct and Flex
Network Terminal Equipment
(NTE) Routers (connect the
customer premises to the BT
Network), BT Net Access Routers
(connect the MSIP) and
Synchronous Digital Hierarchy
(SDH) access to the Internet
Protocol (IP) Network at Colossus
Points of Presence (POPs).
Allocated to Product using
customer totals on the Multi
Services Intranet Platform
(MSIP) Model.
Retail Residual Products.
CO671
CO671
IP Network VPN:
This component captures the cost
of the platform that delivers the
following products. Metro, Equip,
Internet Protocol (IP) Clear and
Ethernet delivery services e.g.
Fusion and Internet Protocol (IP)
Clear 10100. There are three main
types of equipment:
Allocated to Product using
customer totals on the Multi
Services Intranet Platform
(MSIP) Model.
Retail Residual Products.
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Driver
Retail Products
CO673
CO673
IP Network BT Intranet
Allocated directly to a sing
product.
Retail Residual Products.
CO678
CO678
SIP Servers
CO927
CO927
DQ non chargeable
Allocated directly to a single
product.
Retail Residual Products.
CO928
CO928
DQ Number Information Network:
Inland and International Directory
Enquiries (DQ) core transmission
costs.
Apportioned to Non chargeable
AGs and Products on a minutes
basis.
Retail Residual Products.
Retail Residual Products.
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
7.6 Component to Wholesale Services
The table below shows each component not charged on a cost basis. The table also shows at least 90%the Wholesale Service destinations to
which the component cost is attributed, effectively as cost of sale for the Wholesale Service charge.
Super Comp
Comp
Description
Service
CK981
CK981
Openreach time related charges
SK981 - Openreach time related charges
CK985
CK985
Openreach managed services
SK989 – Redcare (CCTV)
CK986
CK986
Openreach other activities
SK986 - Openreach other activities
CK988
CK988
Openreach Total Care
SK988 - Total Care
CKT12
CKT12
Directories
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
CKT13
CKT13
Service assurance Retail
SL121 - Wholesale PSTN premium rentals (internal)
SL122 - PSTN residential rentals (internal)
CKT14
CKT14
Service assurance Global
Services
SL121 - PSTN business rentals (internal)
SL124 - ISDN30 rentals (internal)
SL142 - Wholesale PSTN premium takeovers (internal)
CL131
CL131
Local Loop Unbundling room
build
SL131 - Local Loop Unbundling room build
CL132
CL132
Local Loop Unbundling hostel
rentals
SL132 - Local Loop Unbundling hostel rentals
CL133
CL133
Local Loop Unbundling tie
cables
SL133 - Local Loop Unbundling tie cables
CL139
CL139
Local Loop Unbundling systems
development
SL130 - Local Loop Unbundling rentals
SL133 - Local Loop Unbundling tie cables
SL135 - Shared Metallic Path Facility (SMPF) rentals
CL139
CX139
WH Local Loop Unbundling
systems development
SLB10 - BT only WH Int Ipstream end user access-conns
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB30 - 4+ Ops WH Int Ipstream end user access-conns
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB37 - 4+ Ops WH Ext Datastr end user acc-renta
SL129 - Local Loop Unbundling connections
SL134 - Shared Metallic Path Facility (SMPF) connections
CL139
CY139
Local Loop Unbundling systems
development
SL129 - Local Loop Unbundling connections
SL134 - Shared Metallic Path Facility (SMPF) connections
CL144
CL144
Wholesale Access specific
SL111 - PSTN business connections (internal)
SL112 - PSTN residential connections (internal)
SL114 - ISDN30 connections (internal)
SL115 - ISDN2 business connections (internal)
SL140 - Wholesale PSTN connections (external)
SL141 - Wholesale PSTN transfers (external)
SL142 - PSTN takeovers (internal)
SL145 - Wholesale ISDN2 connections (external)
CL160
CL160
Routeing & records
SL111 - PSTN business connections (internal)
SL112 - PSTN residential connections (internal)
SL115 - ISDN2 business connections (internal)
SL140 - Wholesale PSTN connections (external)
SL145 - Wholesale ISDN2 connections (external)
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Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CL160
CY160
Routeing & records
SL129 - Local Loop Unbundling connections
CL161
CL161
MDF Hardware jumpering
SL111 - PSTN business connections (internal)
SL112 - PSTN residential connections (internal)
SL115 - ISDN2 business connections (internal)
SL140 - Wholesale PSTN connections (external)
SL145 - Wholesale ISDN2 connections (external)
CL161
CX161
WH MDF Hardware jumpering
SLB10 - BT only WH Int Ipstream end user access-conns
SLB11 - BT only WH Ext Ipstream end user access-conns
SLB13 - BT only WH Ext Datastream end user access-conns
SLB20 - 2-3 Ops WH Int Ipstream end user access-conns
SLB21 - 2-3 Ops WH Ext Ipstream end user access-conns
SLB23 - 2-3 Ops WH Ext Datastream end user access-conns
SLB30 - 4+ Ops WH Int Ipstream end user access-conns
SLB31 - 4+ Ops WH Ext Ipstream end user access-conns
SLB33 - 4+ Ops WH Ext Datastream end user access-conns
CL161
CY161
MDF Hardware jumpering
SL129 - Local Loop Unbundling connections
SL134 - Shared Metallic Path Facility (SMPF) connections
CL162
CL162
Software jumpering
SL111 - PSTN business connections (internal)
SL112 - PSTN residential connections (internal)
SL140 - Wholesale PSTN connections (external)
CL162
CX162
WH Software jumpering
SL129 - Local Loop Unbundling connections
SL134 - Shared Metallic Path Facility (SMPF) connections
SLB30 - 4+ Ops WH Int Ipstream end user access-conns
CL163
CL163
ISDN30 connections
SL114 - ISDN30 connections (internal)
SL148 - Wholesale ISDN30 connections (external)
SL149 - Wholesale ISDN30 transfers (external)
CL171
CL171
E side copper capital
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL124 - ISDN30 rentals (internal)
SL130 - Local Loop Unbundling rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
SL156 - Wholesale ISDN30 rentals (external)
CL171
CX171
WH E side copper capital
SL137 - WH SDSL rentals (MPF) (TISBO)
SE432 - PPC rental 64kbit link local end
SO432 - PC rental 64kbit link local end
CL172
CL172
E side copper current
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL130 - Local Loop Unbundling rentals
SL135 - Shared Metallic Path Facility (SMPF) rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL172
CX172
WH E side copper current
SL137 - WH SDSL rentals (MPF) (TISBO)
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB37 - 4+ Ops WH Ext Datastr end user acc-rental
SO432 - PC rental 64kbit link local end
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Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Service
CL173
CL173
D side copper capital
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL124 - ISDN30 rentals (internal)
SL130 - Local Loop Unbundling rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
SL156 - Wholesale ISDN30 rentals (external)
CL173
CX173
WH D side copper capital
SE432 - PPC rental 64kbit link local end
SL137 - WH SDSL rentals (MPF) (TISBO)
SO432 - PC rental 64kbit link local end
SO438 - PC 2Mbit/s local end non CLZ
CL174
CL174
D side copper current
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL124 - ISDN30 rentals (internal)
SL130 - Local Loop Unbundling rentals
SL135 - Shared Metallic Path Facility (SMPF) rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL174
CX174
WH D side copper current
SE432 - PPC rental 64kbit link local end
SL137 - WH SDSL rentals (MPF) (TISBO)
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB36 - 4+ Ops WH Int Datastr end user acc-rental
SLB37 - 4+ Ops WH Ext Datastr end user acc-rental
SO432 - PC rental 64kbit link local end
CL175
CL175
Local exchanges general frames
capital
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL130 - Local Loop Unbundling rentals
SL135 - Shared Metallic Path Facility (SMPF) rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL175
CX175
WH Local exchanges general
frames capital
SL137 - WH SDSL rentals (MPF) (TISBO)
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB36 - 4+ Ops WH Int Datastr end user acc-rental
SLB37 - 4+ Ops WH Ext Datastr end user acc-rental
SO432 - PC rental 64kbit link local end
CL176
CL176
Local exchanges general frames
current
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL130 - Local Loop Unbundling rentals
SL135 - Shared Metallic Path Facility (SMPF) rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
344
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CL176
CX176
WH Local exchanges general
frames current
SL137 - WH SDSL rentals (MPF) (TISBO)
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB36 - 4+ Ops WH Int Datastr end user acc-rental
SLB37 - 4+ Ops WH Ext Datastr end user acc-rental
CL177
CL177
PSTN line test equipment
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL178
CL178
Dropwire capital & PSTN NTE
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL130 - Local Loop Unbundling rentals
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL178
CX178
WH Dropwire capital & PSTN
NTE
SL137 - WH SDSL rentals (MPF) (TISBO)
CL179
CL179
Business PSTN drop
maintenance
SL121 - PSTN business rentals (internal)
SL150 - Wholesale PSTN business rentals (external)
CL180
CL180
Residential PSTN drop
maintenance
SL122 - PSTN residential rentals (internal)
SL130 - Local Loop Unbundling rentals
SL151 - Wholesale PSTN residential rentals (external)
CL180
CX180
WH Residential PSTN drop
maintenance
SL137 - WH SDSL rentals (MPF) (TISBO)
CL181
CL181
ISDN2 drop maintenance
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL183
CL183
PSTN line cards
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
CL184
CL184
ISDN2 line cards
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL185
CL185
Pair gain
SL121 - Wholesale PSTN premium rentals (internal)
SL122 - PSTN residential rentals (internal)
SL150 - Wholesale PSTN premium rentals (external)
SL151 - Wholesale PSTN basic rentals (external)
CL186
CL186
ISDN2 NTE
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 business rentals (external)
CL189
CL189
ISDN30 access
SL124 - ISDN30 rentals (internal)
SL156 - Wholesale ISDN30 rentals (external)
CL190
CL190
ISDN30 line cards
SL124 - ISDN30 rentals (internal)
SL156 - Wholesale ISDN30 rentals (external)
CL501
CX501
WS Service Centre - Provision
LLU
SL129 - Local Loop Unbundling connections
SL134 - Shared Metallic Path Facility (SMPF) connections
SLB10 - BT only WH Int Ipstream end user access-conns
SLB11- BT only WH Ext Ipstream end user access-conns
SLB20 - 2-3 Ops WH Int Ipstream end user access-conns
SLB30 - 4+ Ops WH Int Ipstream end user access-conns
SLB31 - 4+ Ops WH Ext Ipstream end user access-conns
345
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Service
Cl501
CX572
WS Service Centre - Provision
LLU
SL129 - Local Loop Unbundling connections
SL134 - Shared Metallic Path Facility (SMPF) connections
SLB10 - BT only WH Int Ipstream end user access-conns
SLB11- BT only WH Ext Ipstream end user access-conns
SLB20 - 2-3 Ops WH Int Ipstream end user access-conns
SLB30 - 4+ Ops WH Int Ipstream end user access-conns
SLB31 - 4+ Ops WH Ext Ipstream end user access-conns
CL503
CX503
WS Service Centre - Assurance
LLU
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB37 - 4+ Ops WH Ext Datastr end user acc-renta
CL503
CX577
WS Service Centre - Assurance
LLU
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB37 - 4+ Ops WH Ext Datastr end user acc-renta
CL507
CL507
SG & A Wholesale Access
SL148 - Wholesale ISDN30 connections (external)
SL149 - Wholesale ISDN30 transfers (external)
SL154 - Wholesale ISDN2 rentals (external)
SL156 - Wholesale ISDN30 rentals (external)
CL508
CL508
SG & A Retail Access
SL115 - Wholesale ISDN2 connections (internal)
CN001
CN851
21CN ISDN30
SL124 - ISDN30 rentals (internal)
SL156 - Wholesale ISDN30 rentals (external)
CN001
CN852
21CN ISDN2
SL152 - ISDN2 business rentals (internal)
SL154 - Wholesale ISDN2 rentals (external)
CN002
CN853
Combi card voice
SL121 - PSTN business rentals (internal)
SL122 - PSTN residential rentals (internal)
SL150 - Wholesale PSTN business rentals (external)
SL151 - Wholesale PSTN residential rentals (external)
CN005
CN870
MSAN - METRO (dense) link
connectivity
SR387 - PC rental 622Mbit/s link
CO118
CO118
ADSL connections
SL134 - Shared Metallic Path Facility (SMPF) connections
SLB10 - BT only WH Int Ipstream end user access-conns
SLB11 - BT only WH Ext Ipstream end user access-conns
SLB20 - 2-3 Ops WH Int Ipstream end user access-conns
SLB21 - 2-3 Ops WH Ext Ipstream end user access-conns
SLB30 - 4+ Ops WH Int Ipstream end user access-conns
SLB31 - 4+ Ops WH Ext Ipstream end user access-conns
CO187
CO187
Broadband line testing systems
SL130 - Local Loop Unbundling rentals
SL135 - Shared Metallic Path Facility (SMPF) rentals
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB36 - 4+ Ops WH Int Datastr end user acc-renta
SLB37 - 4+ Ops WH Ext Datastr end user acc-renta
346
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CO188
CO188
DSL rentals
SL135 - Shared Metallic Path Facility (SMPF) rentals
SLB14 - BT only WH Int Ipstream end user access-rental
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB17 - BT only WH Ext Datastream end user access-rental
SLB24 - 2-3 Ops WH Int Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB27 - 2-3 Ops WH Ext Datastream end user access-rental
SLB34 - 4+ Ops WH Int Ipstr end user access-rent
SLB35 - 4+ Ops WH Ext Ipstr end user access-rent
SLB36 - 4+ Ops WH Int Datastr end user acc-rental
SLB37 - 4+ Ops WH Ext Datastr end user acc-rental
CO290
CO290
OR Network Features (external)
SO290 - OR Network Features (External)
CO291
CO291
OR Network Features (internal)
SO291 - OR Network Features (Internal)
CO310
CO310
ATM customer interface 2Mbit/s
SOC10 - ATM customer interface 2Mbit/s
CO311
CO311
ATM customer interface
34Mbit/s
SOC11 - ATM customer interface 34Mbit/s
SOI11 - ATM customer interface 34Mbit/s
CO312
CO312
ATM customer interface >
155Mbit/s
SOC12 - ATM customer interface >155Mbit/s
SOD12 - ATM customer interface >155Mbit/s
SOI12 - ATM customer interface >155Mbit/s
CO313
CO313
ATM network interface
SOC13 - ATM network interface
SOD13 - ATM network interface
SOI13 - ATM network interface
CO314
CO314
ATM network switching
SOC14 - ATM network switching
SOD14-ATM network switching
SOI14-ATM network switching
CO316
CO316
Inter ATM transmissions
SOC16-Inter ATM transmissions
SOD16-Inter ATM transmissions
SOI16-Inter ATM transmissions
CO325
CX325
WH Remote - local transmission
link
SCO01 - Call origination - local exchange
SCO02 - Call origination - local exchange - PSTN (inc OA)
SCO03 - Call origination - local exchange - ISDN (inc OA)
SCT01 - Call termination - local exchange - PSTN
SCT02 - Call termination - local exchange - ISDN
SRS01 - Call termination - local exchange stick PSTN
SRS03 - Call origination - local exchange stick PSTN
CO326
CX326
WH Remote - local transmission
length
SCO01 - Call origination - local exchange
SCO02 - Call origination - local exchange - PSTN (inc OA)
SCO03 - Call origination - local exchange - ISDN (inc OA)
SCT01 - Call termination - local exchange - PSTN
SCT02 - Call termination - local exchange - ISDN
SRS01 - Call termination - local exchange stick PSTN
SRS03 - Call origination - local exchange stick PSTN
CO330
CX330
WH Local - tandem transmission
link
SLT01 - Local-tandem conveyance - PSTN
SLT02 - Local-tandem conveyance - ISDN
SRS05 - Local-tandem transmission stick PSTN
SRS06 - Local-tandem transmission stick ISDN
CO340
CX340
WH Local - tandem transmission
length
SLT01 - Local-tandem conveyance - PSTN
SLT02 - Local-tandem conveyance - ISDN
SRS05 - Local-tandem transmission stick PSTN
SRS06 - Local-tandem transmission stick ISDN
347
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Service
CO360
CO360
Inter - tandem transmission link
SI6 - Inter-tandem conveyance IDD PSTN Category B
SI7 - Inter-tandem conveyance IDD PSTN
SI9 - Inter-tandem transmission IDD PSTN
SITC01 - Inter-tandem conveyance PSTN - short
SITC02 - Inter-tandem conveyance PSTN - medium
SITC03 - Inter-tandem conveyance PSTN - long
SITC04 - Inter-tandem conveyance ISDN - short
SITC05 - Inter-tandem conveyance ISDN - medium
SITC06 - Inter-tandem conveyance ISDN - long
SITC09 - Inter-tandem transit - short
SITC10 - Inter-tandem transit - medium
SITC11 - Inter-tandem transit - long
SITC15 - Inter-tandem conveyance PSTN IDD Cat B - short
CO369
CO369
WH ASU Links
SR369 - WH ASU links
CO370
CO370
Inter - tandem transmission
length
SI0 - Inter-tandem transmission IDD ISDN
SI6 - Inter-tandem conveyance IDD PSTN Category B
SI7 - Inter-tandem conveyance IDD PSTN
SI9 - Inter-tandem transmission IDD PSTN
SITC01 - Inter-tandem conveyance PSTN - short
SITC02 - Inter-tandem conveyance PSTN - medium
SITC03 - Inter-tandem conveyance PSTN - long
SITC04 - Inter-tandem conveyance ISDN - short
SITC05 - Inter-tandem conveyance ISDN - medium
SITC06 - Inter-tandem conveyance ISDN - long
SITC09 - Inter-tandem transit - short
SITC10 - Inter-tandem transit - medium
SITC11 - Inter-tandem transit - long
SITC15 - Inter-tandem conveyance PSTN IDD Cat B - short
CO371
CO371
PC rental 2Mbit/s link per km
distribution
SE371 - PPC rental 2Mbit/s link per km distribution
SO371 - PC rental 2Mbit/s link per km distribution
SY371 - PPC rental 2Mbit/s CLZ link per km dist
SZ371 - PPC rental 2Mbit/s CLZ link per km dist
CO371
CP371
Prot Path PC rental 2Mbit/s link
per km dist
SPE371-Prot Path PPC rental 2Mbit/s link per km dist
CO372
CO372
PC rental 2Mbit/s link per km
trunk
SE372 - PPC rental 2Mbit/s link per km trunk
SO372 - PC rental 2Mbit/s link per km trunk
SY372 - PPC rental 2Mbit/s CLZ link per km trunk
SZ372 - PC rental 2Mbit/s CLZ link per km trunk
CO372
CP372
Protected Path PC rental 2Mbit/
s link per km trunk
SPE372 - Prot Path PPC rental 2Mbit/s link per km trunk
SPO372 - Prot Path PC rental 2Mbit/s link per km trunk
CO373
CO373
PC rental 34Mbit/s link per km
distribution
SE373 - PPC rental 34Mbit/s link per km distribution
SO373 - PC rental 34Mbit/s link per km distribution
CO373
CP373
Protected Path PC rental
34Mbit/s link per km distr
SPE373 - Prot Path PPC rental 34Mbit/s link per km dist
SPO373 - Prot Path PC rental 34Mbit/s link per km dist
CO374
CO374
PC rental 34Mbit/s link per km
trunk (Lead component for
CO556)
SE374 - PPC Rental 34Mbit/s link per km trunk
SO374 - PC rental 34Mbit/s link per km trunk
SO776 - PPCs 34/45Mbit/s Trunk CELA
CO374
CP374
Protected Path PC rental
34Mbit/s link per km trunk
SPE374 - Prot Path PPC rental 34Mbit/s link per km trunk
SPO374 - Prot Path PC rental 34Mbit/s link per km trunk
CO375
CO375
PC rental 140Mbit/s link per km
distribution
SE375 - PPC rental 140Mbit/s link per km distribution
SO375 - PC rental 140Mbit/s link per km distribution
ST375 - Site Connect PPC rental 140Mbit/s link/km dist
CO375
CP375
Protected Path PC rental
140Mbit/s link per km distr
SPO375 - Prot Path PC rental 140Mbit/s link per km dist
CO376
CO376
PC rental 140Mbit/s link per km
trunk (Lead component for
CO557)
SE376 - PPC rental 140Mbit/s link per km trunk
SO376 - PC rental 140Mbit/s link per km trunk
SO777 - PPCs 140/155Mbit/s Trunk CELA
CO376
CP376
Protected Path PC rental
140Mbit/s link per km trunk
SPO376 - Prot Path PC rental 140Mbit/s link per km trunk
348
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CO377
CO377
WH PC Rental 622Mbit/s link
per km distribution
SR377 - WH PC Rental 622Mbit/s Link Per Km Distribution
CO379
CPE105
POH LE adjust CSH debit
SO400 - Point of handover CSH connection
CO379
CPE106
POH LE adjust CSI debit
SO401 - Point of handover ISH connection
CO379
CO379
Point of Handover electronics
SO401 - Point of handover ISH connection
SO402 - Point of handover CSH rental
SO403 - Point of handover ISH rental
CO381
CO381
PC rental 64Kb link
SE381 - PPC rental 64Kbit link
SH381 - RBS PPC rental 64Kbit link
SO381 - PC rental 64Kbit link
CO383
CO383
PC rental 2Mb link
SE383 - PPC rental 2Mbit/s link
SE744 - Netstream 16 LL 2Mbit/s rentals Links
SO383 - PC rental 2Mbit/s link
SH383 - PPC RBS rental 2Mbit/s link
ST383 - Siteconnect PPC rental 2Mbit/s link
SY383 - PPC rental 2Mbit/s link
SZ383 - PPC rental 2Mbit/s link
SZ744 - Netstream 16 LL 2Mbit/s rentals CLZ Links
CO383
CP383
Protected Path PC rental 2Mbit/
s link
SPE383 - Prot Path PPC rental 2Mbit/s link
CO385
CO385
PC rental 34Mb link
SE385 - PPC rental 34Mbit/s link
SO385 - PC rental 34Mbit/s link
CO385
CP385
Protected Path PC rental
34Mbit/s link
SPE385 - Prot Path PPC rental 34Mbit/s link
CO387
CO387
WH PC Rental 622Mbit/s link
SR387 - PC rental 622Mbit/s link
CO388
CO388
PC rental 140Mbit/s link
SE388 - PPC rental 140Mbit/s link
SO388 - PC rental 140Mbit/s link
SE752 - Netstream 16 LL 155Mbit/s rentals Links
ST388 - Site Connect PPC rental 140Mbit /slink
CO388
CP388
Protected Path PC rental
140Mbit/s link
SPE388 - Prot Path PPC rental 140Mbit/s link
SPO388 - Prot Path PC rental 140Mbit/s link
CO391
CO391
PC rental 64Kbit link per km
transmission
SE391 - PPC rental 64Kbit link per km transmission
SE393 - PPC rental 64Kbit Trunk
SO391 - PC rental 64Kbit link per km transmission
SO393 - PC rental 64Kbit Trunk
CO407
CO407
Carrier Pre Selection Operator
set-up
SE407 - Carrier Pre Selection in-life management
CO408
CO408
Carrier Pre Selection Customer
set-up
SO408 - Carrier Pre Selection customer set-up
CO411
CX411
WH Analogue PC link
connection cct prov
SO411 - Analogue PC link connection cct prov
CO413
CX413
WH2Mbit/s and above PC link
connection cct provision
SE410 - 34/45Mbit/s PPC link conns cct provision
SE413 - 2Mbit/s PPC link connection cct provision
SH413 - RBS 2Mbit/s PPC link connection cct provision
SO413 - 2Mbit/s PC link connection cct provision
ST413 - 2Mbit/s Siteconnect PPC link conns cct provision
CO417
CX417
WH 64Kbit PC link connection
cct provision
SE417 - 64Kbit/s PPC new connection provision (external)
SO417 - 64Kbit/s PC link connection cct prov (internal)
CO421
CX421
WH Analogue PC installation
SO421 - Analogue PC installation
CO431
CX431
WH PC Rental Analogue link
local end
SO431 - PC rental analogue link local end
CO432
CX432
WH PC rental 64Kbit/s link local
end
SE432 - PPC rental 64Kbit/s link local end
SE760 - External 3rd Party POH Rental 64kbit/s
SO432 - PC rental 64Kbit/s link local end
349
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Service
CO432
CDE432
3rd party Depn adjust credit
PPC 64Kbit/s LE
SE432 - OR EPPC to PPC rental 64Kbit/s Loc End
CO432
CDO432
3rd party Depn adjust credit PC
64LBit/s LE
SO432- OR EPPC to PC Rent 64Kbit/s Loc End
CO432
CPE432
POH adjust credit PPC 64Kbit/s
LE
SE432 - OR EPPC to PPC rental 64Kbit/s Loc End
CO434
CDE434
3rd party Depn adjust credit
PPC 34Mbit/s LE
SE434 - OR EPPC to PPC rental 34Mbit/s Loc End
CO434
CDO434
3rd party Depn adjust credit PC
34Mbit/s LE
SO434 - OR EPPC to PC Rent 34Mbit/sLoc End
CO434
CP434
Protected Path PC rental
34Mbit/s link local end
SPE434 - Prot Path PPC rental 34Mbit/s local end
SPO434 - Prot Path PC rental 34Mbit/s local end
CO434
CPE434
POH adjust credit PPC 34Mbit/s
LE
SE434 - OR EPPC to PPC rental 34Mbit/s Loc End
CO434
CX434
WH PC rental 34Mbit/s link local
end
SE434 - PPC rental 34Mbit/s link local end
SE761 - External 3rd Party POH Rental 34/45Mbit/s
SO434 - PC rental 34Mbit/s link local end
CO436
CDE436
3rd party Depn adjust credit
PPC 140Mbit/s LE
SPE436 - Prot Path PPC rental 140Mbit/s local end
CO436
CDO436
3rd party Depn adjust credit PC
140Mb LE
SO436 - OR EPPC to PC Rnt 140Mb Loc End
CO436
CP436
Protected Path PC rental
140Mbit/s link local end
SPE436 - Prot Path PPC rental 140Mbit/s local end
SPO436 - Prot Path PC rental 140Mbit/s local end
CO436
CX436
WH PC rental 140Mbit/s link
local end
SE436 - PPC rental 140Mbit/s link local end
SO436 - PC rental 140Mbit/s link local end
ST436 - Site Connect PPC rental 140Mbit/s link local end
CO437
CX437
WH PC rental 622Mbit/s link
local end
SO437 - PC rental 622Mbit/s link local end
CO438
CDE438
3rd party Depn adjust credit
PPC 2Mb Copper LE
SE438 - OR EPPC to PPC rental 2Mbit/s Loc End Cu
CO438
CDO438
3rd party Depn adjust credit PC
2Mb Copper LE
SO438 - OR EPPC to PC Rnt 2Mbit/s Loc End Cu
CO438
CEE438
Excess Construction credit PPC
2Mb Copper LE
SE438 - OR EPPC to PPC rental 2Mbit/s Loc End Cu
CO438
CEO438
Excess Construction credit PC
2Mb Copper LE
SO438 - OR EPPC to PC Rnt 2Mbit/s Loc End Cu
CO438
CO438
WH PC rental 2Mbit/s local end
copper
SPE438 - Prot Path PPC rental 2Mbit/s local end copper
CO438
CP438
Protected Path PC rental 2Mb
local end copper
SPE438 - Prot Path PPC rental 2Mbit/s local end copper
CO438
CPE438
POH adjust credit PPC 2Mb
Copper LE
SE438 - OR EPPC to PPC rental 2Mbit/s Loc End Cu
CO438
CX438
WH PC rental 2Mbit/s local end
copper
SO438 - PC 2Mbit/s local end non CLZ
CO439
CDE439
3rd party Depn adjust credit
PPC 2Mb Fibre LE
SE439 - PPC 2Mbit/s local end non CLZ
CO439
CDO439
3rd party Depn adjust credit PC
2Mb Fibre LE
SO439 - OR EPPC to PC Rnt 2Mbit/s LE Fibre
CO439
CEE439
Excess Construction credit PPC
2Mb Fibre LE
SE439 - OR EPPC to PPC rental 2Mbit/s LE Fibre
CO439
CEO439
Excess Construction credit PC
2Mb Fibre LE
SO439 - OR EPPC to PC Rnt 2Mbit/s LE Fibre
CO439
CP439
Protected Path PC rental 2Mbit/
s local end fibre
SPO439 - Prot Path PC rental 2Mbit/s local end fibre
350
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CO439
CPE439
POH adjust credit PPC 2Mb
Fibre LE
SE439 - OR EPPC to PPC rental 2Mbit/s LE Fibre
CO439
CX439
WH PC rental 2Mbit/s local end
fibre
SE439 - PPC 2Mbit/s local end non CLZ
SE764 - External 3rd Party PoH Rental 2Mbit/s Fibre
SO439 - PC 2Mbit/s local end non CLZ
SY439 - PPC 2Mbit/s local end CLZ
SY764 - External 3rd Party PoH Rental 2Mbit/s CLZ
SZ439 - PC 2Mbit/s CLZ local end CLZ
CO447
CEA447
ECC Credit BES 100mb rental
SO578 - Backhaul extension services 100mb rental
CO447
CEB447
ECC Credit BES 1000mb rental
SO579 - Backhaul extension services 1000mb rental
CO447
CEC447
ECC Credit BES other bwidth rtl
SO580 - Backhaul extension services other bwidth rtl
CO447
CO447
Backhaul extension services
fibre etc
SO578 - Backhaul extension services 100mb rental
SO579 - Backhaul extension services 1000mb rental
SO580 - Backhaul extension services other bwidth rtl
SO590 – Backhaul extension services >1Gb rental
CO447
CW614
Ethernet Backhaul Direct Rental
– External
SO614 - Ethernet Backhaul Direct Rntl - Extnl
CO448
CO448
Wholesale & LAN extension
services electronics
SO574 - WS/LAN extension services 10mb conn – ext
SO575 - WS/LAN extension services 100mb conn – ext
SO576 - WS/LAN extension services 1000mb conn – ext
SO577 - WS/LAN extension services other bwidth conn – ext
SO589 – WS/LAN extension services >1gb conn
SO604 - WS/LAN extn services 10mb conn – int
SO605 - WS/LAN extn services 100mb conn – int
SO606 - WS/LAN extn services 1000mb conn – int
SO607 - WS/LAN extn services oth bwth conn - int
CO448
CW612
Ethernet Access Direct
Connection – External
SO612 - Ethernet Access Direct Connectn - Extnl
CO448
CW613
Other Ethernet Connection –
External
SO613 - Other Ethernet Connectn - Extnl
CO448
CW618
Ethernet Access Direct
Connection – Internal
SO618 - Ethernet Access Direct Connectn - Intl
CO448
CW619
Other Ethernet Connection –
Internal
SO619 - Other Ethernet Connectn - Intl
CO449
CO449
Backhaul extension services
electronics
SO582 - Backhaul extension services 1000mb conns
SO583 - Backhaul extension services other bandwidth conns
CO449
CW615
Ethernet Backhaul Direct
Connection – External
SO615 - Ethernet Backhaul Direct Connectn - Extnl
CO450
CEA450
ECC Credit WES/LES 10mb rtl –
ext
SO570 - WS/LAN extension services 10mb rtl - ext
CO450
CEB450
ECC Credit WES/LES 100mb rtl –
ext
SO571 - WS/LAN extension services 100mb rtl - ext
CO450
CEC450
ECC Credit WES/LES 1000mb rtl
– ext
SO572 - WS/LAN extension services 1000mb rtl - ext
CO450
CED450
ECC Credit WES/LES other
bwidth rtl – ext
SO573 - WS/LAN extension services other bwidth rtl - ext
CO450
CEE450
ECC Credit WES/LES 10mb rtl –
int
SO600 - WS/LAN extension services 10mb rtl - int
CO450
CEF450
ECC Credit WES/LES 100mb rtl –
int
SO601 - WS/LAN extn services 100mb rtl - int
351
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Service
CO450
CEG450
ECC Credit WES/LES 1000mb rtl
– int
SO602 - WS/LAN extn services 1000mb rtl - int
CO450
CEH450
ECC Credit WES/LES oth bwth rtl
– int
SO603 - WS/LAN extn services oth bwth rtl - int
CO450
CO450
Wholesale & LAN extension
services fibre etc
SO570 - WS/LAN extension services 10mb rtl – ext
SO571 - WS/LAN extension services 100mb rtl – ext
SO572 - WS/LAN extension services 1000mb rtl – ext
SO573 - WS/LAN extension services other bwidth rtl – ext
SO588 - Wsale/Lan extension services >1Gb rental
SO600 - WS/LAN extension services 10mb rtl – int
SO601 - WS/LAN extn services 100mb rtl – int
SO602 - WS/LAN extn services 1000mb rtl – int
SO603 - WS/LAN extn services oth bwth rtl – int
CO450
CW610
Ethernet Access Direct Rental External
SO610 - Ethernet Access Direct Rntl – Extnl
CO450
CW611
Other Ethernet Rentals –
External
SO611 - Other Ethernet Rntls - Extnl
CO450
CW616
Ethernet Access Direct Rental Internal
SO616 - Ethernet Access Direct Rntl – Intl
CO450
CW617
Other Ethernet Rentals –
Internal
SO617 - Other Ethernet Rntls - Intl
CO450
CO477
Excess construction charge
(internal)
SO477 - Excess construction charge (internal)
CO450
CO478
Excess construction charge
(external)
SO478 - Excess construction charge (EXTERNAL)
CO453
CO453
Interconnect 2Mbit/s
connection
SD453 - Interconnect 2Mbit/s connection - rearrangements
SE453 - CSI circuit 2Mbit/s connection (OCP use)
CO458
CX458
WH I/C Extension Circuits (IEC)
2Mbit/s link
SO458 - Interconnect Extension circuits (IEC) 2Mbit/s link
CO459
CX459
WH Customer Sited
Interconnect cct (CSI) 2Mbit/s
link
SE459 - CSI circuits link (OCP use)
SO459 - CSI circuits 2Mbit/s link (retail use)
CO460
CX460
WH Nominated In Span I/
Connect circuits (ISI) transn
SO460 - Nominated In Span I/Connect cts
CO462
CX462
WH Private Circuit customer
premises
SO462 - Private circuit customer premises
CO463
CX463
WH Private Circuit testing
SO463 - Private circuit testing
CO466
CX466
WH I/Connect Extension Circuits
(IEC) 2Mbit/s per km
SO466 - Interconnect Extension circuits (IEC) 2Mbit/s per km
CO467
CX467
WH Customer Sited
Interconnect cct (CSI) 2Mbit/s
per km
SE467 - CSI circuits 2Mbit/s per km (OCP use)
SO467 - CSI circuits 2Mbit/s per km (retail use)
CO469
CO469
Intra Building Circuit (IBC)
connection
SE469 - IBC connections – ISI
SE485 - IBC Connection - CSI
SE486 - IBC Connection - IEC
CO470
CO470
Intra Building Circuit (IBC) rental
SE470 - IBC rentals (OCP use)
SE487 - IBC Rental – CSI
SE488 - IBC Rental – IEC
SO470 - IBC rentals (retail use)
CO484
CO484
Ethernet main links
SO586 - Ethernet main links - internal
SO587 - Ethernet main links – external
SO592 - Ethernet main links >1Gb – internal
SO593 - Ethernet main links >1Gb - external
CO495
CO495
IP Switch transmission
SO495 - IP switch transmission
352
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CO505
CO505
SG & A private circuits
SE744 - Netstream 16 LL 2Mbit/s rentals Links
SE752 - Netstream 16 LL 155Mbit/s rentals Links
SO371 - PC rental 2Mbit/s link per km distribution
SO372 - PC rental 2Mbit/s link per km trunk
SO373 - PC rental 34Mbit/s link per km distribution
SO374 - PC rental 34Mbit/s link per km trunk
SO375 - PC rental 140Mbit/s link per km distribution
SO376 - PC rental 140Mbit/s link per km trunk
SO381 - PC rental 64Kbit link
SO383 – PPC 2 Mbit/s - link
SO385 - PC rental 34Mbit/s link
SO388 - PC rental 140Mbit/s link
SO391 - PC rental 64Kbit link per km transmission
SO393 - PC rental 64Kbit Trunk
SO413 - 2Mbit/s PC link connection cct provision
SO434 - PC rental 34Mbit/s link local end
SO436 - PC rental 140Mbit/s link local end
SO439 - PC 2Mbit/s local end non CLZ
SPO375 - Prot Path PC rental 140Mbit/s link per km dist
SPO436 - Prot Path PC rental 140Mbit/s local end
SZ383 – PPC 2Mbit/s - link
SZ439 - PC 2Mbit/s local end CLZ
CO506
CO506
SG & A partial private circuits
SE371 - PPC rental 2Mbit/s link per km distribution
SE372 - PPC rental 2Mbit/s link per km trunk
SE373 - PPC rental 34Mbit/s link per km distribution
SE374 - PPC Rental 34Mbit/s link per km trunk
SE381 - PPC rental 64Kbit link
SE383 – PPC 2Mbit/s - link
SE385 - PPC rental 34Mbit/s link
SE391 - PPC rental 64Kbit link per km transmission
SE393 - PPC rental 64Kbit Trunk
SE413 - 2Mbit/s PPC link connection cct provision
SE434 - PPC rental 34Mbit/s link local end
SE439 - PPC 2Mbit/s local end non CLZ
SE764 - External 3rd Party PoH Rental 2Mbit/s Fibre
SH381 - RBS PPC rental 64Kbit link
SH383 - PPC RBS rental 2Mbit/s link
SH413 - RBS 2Mbit/s PPC link connection cct provision
SO772 - PPCs 34/45Mb Local Ends CELA
SO773 - PPCs 140/155Mb Link CELA
SO775 - PPCs 140/155Mb Local Ends CELA
SO776 - PPCs 34/45Mbit/s Trunk CELA
ST375 - Site Connect PPC rental 140Mbit/s link/km dist
ST383 - Siteconnect PPC rental 2Mbit/s link
ST413 - 2Mbit/s Siteconnect PPC link conn cct provision
SY383 - PPC rental 2Mbit/s CLZ link (et)
CO512
CO512
Product management policy &
planning
SO512 - Wholesale PPP
CO550
CR550
PPCs 34/45Mb Link CELA
SO770 - PPCs 34/45Mb Link CELA
CO551
CR551
PPCs 34/45Mb Distribution
CELA
SO771 - PPCs 34/45Mb Dist CELA
CO552
CX552
WS PPCs 34/45Mb Local Ends
CELA
SO772 - PPCs 34/45Mb Local Ends CELA
CO553
CR553
PPCs 140/155Mb Link CELA
SO773 - PPCs 140/155Mb Link CELA
CO554
CR554
PPCs 140/155Mb Distribution
CELA
SO774 - PPCs 140/155Mb Dist CELA
CO555
CX555
WS PPCs 140/155Mb Local
Ends CELA
SO775 - PPCs 140/155Mb Local Ends CELA
CO631
CO473
Separation & Diversity
SE473 - Separation & Diversity
SO473 - Separation & Diversity
353
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Super Comp
Comp
Description
Service
CO631
CO474
Third Party Equipment PC
SE474 - Third Party Equipment PPC
SO474 - Third Party Equipment PPC
CO631
CO475
Other Single Payments
(internal)
SO475 - Other Single Payment
CO631
CO476
Other Single Payments
(external)
SE476 - Other single Payment (external)
CO667
CO667
IP International peering
SO667 - IP international peering
CO668
CO668
IP Network management
SO668 - IP network management
CO672
CO672
IP Network broadband
SO672 - IP Network broadband
CO674
CO674
IP core node equipment
SO674 - IP core node equipment
CO675
CO675
IP VOIP platform
SO675 - IP VOIP Platform
CO681
CO479
Ancillary charges (internal)
SO479 - Ancillary charges internal
CO681
CO480
Ancillary charges (external)
SO480 - Ancillary charges external
CO681
CO684
Broadband Virtual Paths
SO684 - Internal Virtual Path handover
SO685 - External Virtual Path handover
CO681
CX681
WH Broadband backhaul circuits
SOB10 - BT only Broadband backhaul circuits
SOB20 - 2-3 Ops Broadband backhaul circuits
SOB30 - 4+ Ops Broadband backhaul circuits
CO682
CX682
WH BT central circuits
SO682 - BT central circuits
CO732
CX732
Wholesale Number Portability
set-up costs
SO732 - Number portability set- up costs
CO781
CO781
WH SMDS
SR781 - WH SMDS
CO911
CO911
National operator assistance
SO911 - National operator assistance
CO912
CO912
International operator
assistance
SO912 - International operator assistance
CO919
CO919
Emergency operator assistance
(999)
SO919 - Emergency operator assistance (999)
CO941
CO941
National OA non chargeable
SCO02 - Call origination - local exchange - PSTN (inc OA)
SCO03 - Call origination - local exchange - ISDN (inc OA)
CO942
CO942
Emergency OA (999) non
chargeable
SCO01 - Call origination - local exchange
SCO02 - Call origination - local exchange - PSTN (inc OA)
SCO03 - Call origination - local exchange - ISDN (inc OA)
CO943
CO943
Payphones OA non chargeable
SG330 - PPSCCC
CO989
CO989
Special Fault Investigation
SL989 - Openreach External SFI
CP502
CP502
Sales product management
SL112 - PSTN residential connections (internal)
SL114 - ISDN30 connections (internal)
SL122 - PSTN residential rentals (internal)
SL124 - ISDN30 rentals (internal)
SL131 - Local Loop Unbundling room build
SL133 - Local Loop Unbundling tie cables
SL135 - Shared Metallic Path Facility (SMPF) rentals
SL151 - Wholesale PSTN residential rentals (external)
SL152 - ISDN2 business rentals (internal)
SL156 - Wholesale ISDN30 rentals (external)
CP502
CX502
WH Sales product management
SL129 - Local Loop Unbundling connections
SL136 - WH SDSL conns (MPF) TISBO
SLB11 - BT only WH Ext Ipstream end user access-conns
SLB15 - BT only WH Ext Ipstream end user access-rental
SLB25 - 2-3 Ops WH Ext Ipstream end user access-rental
SLB31 - 4+ Ops WH Ext Ipstream end user access-conns
SLB35 - 4+ Ops WH Ext Ipstr end user access-rental
SLB36 - 4+ Ops WH Int Datastr end user acc-rental
CT134
CT134
Local Loop Unbundling hostel
rentals power & vent
SL132 - Local Loop Unbundling hostel rentals
354
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Super Comp
Comp
Description
Service
CT454
CEA454
ECC Credit BNS – rental
SO585 - Backhaul Network services - rental
CT454
CT454
Wholesale & LAN extension
services BNS rental
SO585 - Backhaul Network services - rental
CV001
CO210
Local exchange processor
duration (Lead component for
CO212)
SCO01 - Call origination - local exchange
SCO02 - Call origination - local exchange - PSTN (inc OA)
SCO03 - Call origination - local exchange - ISDN (inc OA)
SCT01 - Call termination - local exchange - PSTN
SCT02 - Call termination - local exchange - ISDN
SITC01 - Inter-tandem conveyance PSTN - short
SITC02 - Inter-tandem conveyance PSTN - medium
SITC03 - Inter-tandem conveyance PSTN - long
SITC09 - Inter-tandem transit - short
SITC10 - Inter-tandem transit - medium
SLT01 - Local-tandem conveyance - PSTN
CV002
CO220
Main exchange set-up (Lead
component for CO221)
SI6 - Inter-tandem conveyance IDD PSTN Category B
SI7 - Inter-tandem conveyance IDD PSTN
SITC01 - Inter-tandem conveyance PSTN - short
SITC02 - Inter-tandem conveyance PSTN - medium
SITC03 - Inter-tandem conveyance PSTN - long
SITC04 - Inter-tandem conveyance ISDN - short
SITC05 - Inter-tandem conveyance ISDN - medium
SITC06 - Inter-tandem conveyance ISDN - long
SITC09 - Inter-tandem transit - short
SITC10 - Inter-tandem transit - medium
SITC11 - Inter-tandem transit - long
SITC15 - Inter-tandem conveyance PSTN IDD Cat B - short
SLT01 - Local-tandem conveyance - PSTN
SLT02 - Local-tandem conveyance - ISDN
SST01 - Single transit segment - PSTN
CV034
CO215
Local exchange concentrator
duration (Lead component for
CO214)
SCO01 - Call origination - local exchange
SCO02 - Call origination - local exchange - PSTN (inc OA)
SCO03 - Call origination - local exchange - ISDN (inc OA)
SCT01 - Call termination - local exchange - PSTN
355
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
7.7 Wholesale Service to Products
The table set out below show the major charging destinations of Wholesale Services. The destinations listed cover at least 90% of the total
network charge made in respect of each Wholesale Service.
Wholesale
Service
Description
Driver
Product Range
SB367
ISC to frontier link
This service is in a Residual
Market.
Retail Residual Products
SB451
Radiostream links
This service is in a Residual
Market.
Retail Residual Products
SB561
IX POLO CoNcert
This service is in a Residual
Market.
Retail Residual Products
SB599
Interconnect Payment to OLOs
This service is in a Residual
Market.
Retail Residual Products
SB782
Development
This service is in a Residual
Market.
Retail Residual Products
SCO01
Call origination - local exchange
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SCO02
Call origination - local exchange PSTN (inc OA)
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SCO03
Call origination - local exchange ISDN (inc OA)
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SCT01
Call termination - local exchange PSTN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SCT02
Call termination - local exchange ISDN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS)
Retail Residual Products
SD453
Interconnect 2Mbit/s connection rearrangements
The Service Charge is per
connection. Volumes are
sourced from Customer Oriented
System for the Management Of
Special Services (COSMOSS).
Retail Residual Products
SE371
PPC rental 2Mbit/s link per km
distribution
The Service is charged on
Distribution length per kilometre
basis. Volumes are sourced from
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
356
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Wholesale
Service
Description
Driver
Product Range
SE372
PPC rental 2Mbit/s link per km trunk
The Service is charged on a Trunk
length per kilometre basis.
Volumes are sourced Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SE373
PPC rental 34Mbit/s link per km
distribution
The Service is charged on a
Distribution length per kilometre
basis. Volumes are sourced from
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
SE374
PPC Rental 34Mbit/s link per km trunk
Service is charged on a Trunk
length per kilometre basis.
Volumes are sourced from Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SE375
PPC rental 140Mbit/s link per km
distribution
Service is charged on a
Distribution length per kilometre
basis. Volumes are sourced from
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
SE376
PPC rental 140Mbit/s link per km trunk
Service is charged on a Trunk
length per kilometre basis.
Volumes are sourced from Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SE381
PPC rental 64Kbit link
The Service is charged on a 64
kbit link equivalent basis.
Volumes are sourced from
Customer Oriented System for
the Management Of Special
Services (COSMOSS)
Retail Residual Products
SE383
PPC rental 2Mbit/s link
The Service is charged on a per
link basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS)
Retail Residual Products
SE385
PPC rental 34Mbit/s link
The Service is charged on a per
link basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS)
Retail Residual Products
SE388
PPC rental 140Mbit/s link
The Service is charged on a per
link (circuit) basis. Volumes are
sourced from Core Transmission
Circuit costing System (CTCS)
Retail Residual Products
SE391
PPC rental 64Kbit Distribution
The Service is charged on a link
per length basis. Volumes are
sourced from Customer Oriented
System for the Management Of
Special Services (COSMOSS) and
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
SE393
PPC rental 64Kbit Trunk
Allocated directly to a single
Product
Retail Residual Products
SE407
Carrier Pre Selection in-life
management
The Service is charged per
operator Set-Up (enabled) for
Carrier Pre Select (CPS). Volumes
are sourced from the CPS Order
System.
Retail Residual Products
SE410
34/45Mbit/s PPC link conn cct
provision
The Service is charged per
connection.
Retail Residual Products
357
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Wholesale
Service
Description
Driver
Product Range
SE413
2Mbit/s PPC link connection cct
provision
The Service Charge is per
connection. Volumes are
sourced from Powerhouse.
Retail Residual Products
SE416
140/155Mbit/s PPC link conn cct prov
The Service is charged per
connection
Retail Residual Products
SE417
64Kbit PPC new connection provision
(external)
The Service is charged per
connection
Retail Residual Products
SE432
PPC rental 64Kbit link local end
The Service Charge is per local
end. Volumes are sourced from
Powerhouse
Retail Residual Products
SE434
PPC rental 34Mbit/s link local end
The Service Charge is per local
end. Volumes are sourced from
Powerhouse.
Retail Residual Products
SE436
PPC rental 140Mbit/s link local end
The Service Charge is per local
end. Volumes are sourced from
Powerhouse.
Retail Residual Products
SE438
OR EPPC to PPC rental 2Mbit/s Loc End
Cu
SE439
PPC rental 2Mbit/s local end fibre
The Service Charge is per local
end. Volumes are sourced from
Powerhouse.
Retail Residual Products
SE453
CSI circuit 2Mbit/s connection (OCP
use)
The Service Charge is per
connection. Volumes are
sourced from Customer Oriented
System for the Management Of
Special Services (COSMOSS).
Retail Residual Products
SE459
CSI circuits link (OCP use)
This Service is charged on a per
link basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS).
Retail Residual Products
SE467
CSI circuits 2Mbit/s per km (OCP use)
The Service is charged on a per
km basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS).
Retail Residual Products
SE469
IBC connections - ISI
The Service is charged on a per
connection basis. Volumes are
sourced from Customer Oriented
System for the Management Of
Special Services (COSMOSS)
Retail Residual Products
SE470
IBC rentals - ISI
The service is charged on a per
circuit basis. Volumes are
sourced from Core Transmission
Circuit costing System (CTCS).
Retail Residual Products
SE473
Separation & Diversity
This service is charged per
connection and per rental
volume. Volumes are sourced
from COSMOSS.
Retail Residual Products
SE474
Third Party Equipment PPC
This service is charged per
equipment installation. Volumes
are sourced from COSMOSS.
Retail Residual Products
SE476
Other single Payment (external)
This service is equated to the
values posted to the OSP related
PPC Revenue GL codes.
Retail Residual Products
SE485
IBC Connection – CSI
Allocated directly to a single
Product
Retail Residual Products
SE486
IBC Connection - IEC
Allocated directly to a single
Product
Retail Residual Products
358
Retail Residual Products
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Wholesale
Service
Description
Driver
Product Range
SE487
IBC Rental – CSI
Allocated directly to a single
Product
Retail Residual Product
SE488
IBC Rental – IEC
Allocated directly to a single
Product
Retail Residual Product
SE740
Netstream 16 LL 2Mbit/s connections
Allocated directly to a single
Product
Retail Residual Product
SE741
Netstream 16 LL 45Mbit/s
connections
Allocated directly to a single
Product
Retail Residual Product
SE742
Netstream 16 LL 155Mbit/s
connections
Allocated directly to a single
Product
Retail Residual Products
SE743
Netstream 16 LL 2Mbit/s rentals Local
Ends
Allocated directly to a single
Product
Retail Residual Products
SE744
Netstream 16 LL 2Mbit/s rentals Links
Allocated directly to a single
Product
Retail Residual Products
SE745
Netstream 16 LL 2Mbit/s rentals Per
km
Allocated directly to a single
Product
Retail Residual Products
SE746
Netstream 16 LL 2Mbit/s rentals Trunk
Allocated directly to a single
Product
Retail Residual Products
SE747
Netstream 16 LL 45Mbit/s rentals LEnds
Allocated directly to a single
Product
Retail Residual Products
SE748
Netstream 16 LL 45Mbit/s rentals
Links
Allocated directly to a single
Product
Retail Residual Products
SE749
Netstream 16 LL 45Mbit/s rentals Per
km
Allocated directly to a single
Product
Retail Residual Products
SE750
Netstream 16 LL 45Mbit/s rentals
Trunk
Allocated directly to a single
Product
Retail Residual Products
SE751
Netstream 16 LL 155Mbit/s rentals LE
Allocated directly to a single
Product
Retail Residual Products
SE752
Netstream 16 LL 155Mbit/s rentals
Links
Allocated directly to a single
Product
Retail Residual Products
SE753
Netstream 16 LL 155Mbit/s rentals Per
km
Allocated directly to a single
Product
Retail Residual Products
SE754
Netstream 16 LL 155Mbit/s rentals
Trunk
Allocated directly to a single
Product
Retail Residual Products
SE760
External 3rd Party POH Rental 64kbit
Allocated directly to a single
Product
Retail Residual Products
SE761
External 3rd Party POH Rental 34/
45Mbit/s
Allocated directly to a single
Product
Retail Residual Products
SE762
External 3rd Party POH Rental
155Mbit/s
Allocated directly to a single
Product
Retail Residual Products
SE763
External 3rd Party PoH Rental 2Mbit/s
Copper
Allocated directly to a single
Product
Retail Residual Products
SE764
External 3rd Party PoH Rental 2Mbit/s
Fibre
Allocated directly to a single
Product
Retail Residual Products
SF453
IEC circuit 2Mbit/s connection
The Service Charge is per
connection. Volumes are
sourced from Customer Oriented
System for the Management Of
Special Services (COSMOSS).
Retail Residual Products
359
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Wholesale
Service
Description
Driver
Product Range
SG330
PPSCCC
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SH381
RBS PPC rental 64Kbit link
The Service is charged on a 64
kbit link equivalent basis.
Volumes are sourced from
Customer Oriented System for
the Management Of Special
Services (COSMOSS)
Retail Residual Products
SH383
PPC RBS rental 2Mbit/s link
The Service is charged on a per
link basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS)
Retail Residual Products
SH413
RBS 2Mbit/s PPC link connection cct
provision
The Service Charge is per
connection. Volumes are
sourced from Powerhouse.
Retail Residual Products
SH417
64Kbit RBS new connection cct
provision (external)
The Service is charged per
connection
Retail Residual Products
SI0
Inter-tandem transmission IDD ISDN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Powerhouse
Retail Residual Products
SI6
Inter-tandem conveyance IDD PSTN
Category B
The Service is charged on a per
minute basis, where Product
volumes are sourced from Inter
Network Call Accounting (INCA)
Retail Residual Products International
Calls
SI7
Inter-tandem conveyance IDD PSTN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Inter
Network Call Accounting (INCA)
Retail Residual Products
SI9
Inter-tandem transmission IDD PSTN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS).
Retail Residual Products
SITC01
Inter-tandem conveyance PSTN short
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SITC02
Inter-tandem conveyance PSTN medium
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SITC03
Inter-tandem conveyance PSTN - long
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
360
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Wholesale
Service
Description
Driver
Product Range
SITC04
Inter-tandem conveyance ISDN - short
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SITC05
Inter-tandem conveyance ISDN medium
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SITC06
Inter-tandem conveyance ISDN - long
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SITC09
Inter-tandem transit - short
The Service is charged on a per
minute basis, where Product
volumes are sourced from Inter
Network Call Accounting (INCA)
Retail Residual Products
SITC10
Inter-tandem transit - medium
The Service is charged on a per
minute basis, where Product
volumes are sourced from Inter
Network Call Accounting (INCA)
Retail Residual Products
SITC11
Inter-tandem transit - long
The Service is charged on a per
minute basis, where Product
volumes are sourced from Inter
Network Call Accounting (INCA)
Retail Residual Products
SITC15
Inter-tandem conveyance PSTN IDD
Cat B - short
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SITC16
Inter-tandem conveyance PSTN IDD
Cat B - medium
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SITC17
Inter-tandem conveyance PSTN IDD
Cat B - long
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS), Inter Network Call
Accounting (INCA) and
Powerhouse
Retail Residual Products
SK981
Openreach time related charges
This service is in a Residual
Market.
Retail Residual Products
SK986
Openreach other activities
This service is in a Residual
Market.
Retail Residual Products
SK988
Total Care
This service is in a Residual
Market.
Retail Residual Products
SK989
Redcare (CCTV)
This service is in a Residual
Market.
Retail Residual Products
361
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Wholesale
Service
Description
Driver
Product Range
SL111
Wholesale PSTN premium connections
(internal)
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL112
Wholesale PSTN basic connections
(internal)
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL114
ISDN30 connections (internal)
Allocated directly to a single
Product
Retail Residual Products
SL115
Wholesale ISDN2 connections
(internal)
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL121
Wholesale PSTN premium rentals
(internal)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse.
Retail Residual Products
SL122
Wholesale PSTN basic rentals (internal)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse.
Retail Residual Products
SL124
ISDN30 rentals (internal)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse.
Retail Residual Products
SL129
Local Loop Unbundling connections
The Service Charge is per Local
Loop Unbundling (LLU)
connection. Volumes are
sourced from Powerhouse
Retail Residual Products
SL130
Local Loop Unbundling rentals
The Service Charge is per Local
Loop Unbundling (LLU) line.
Volumes are sourced from
Powerhouse
Retail Residual Products
SL131
Local Loop Unbundling room build
The Service Charge is per Room
Build. Volumes are sourced from
the Customer Management
Centre Order Handling System
Retail Residual Products
SL132
Local Loop Unbundling hostel rentals
The Service Charge is per Hostel
rental. Volumes are sourced
from the Management Centre
Order Handling System
Retail Residual Products
SL133
Local Loop Unbundling tie cables
The Service Charge is per Tie
cable. Volumes are sourced from
the Management Centre Order
Handling System
Retail Residual Products
SL134
Shared Metallic Path Facility (SMPF)
connections
The Service Charge is per Shared
Metallic Path Facility (SMPF)
connection. Volumes are
sourced from the Customer
Management Centre Order
Handling System
Retail Residual Products
362
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Wholesale
Service
Description
Driver
Product Range
SL135
Shared Metallic Path Facility (SMPF)
rentals
The Service Charge is per Shared
Metallic Path Facility (SMPF)
line. Volumes are sourced from
the Customer Management
Centre Order Handling System
Retail Residual Products
SL136
WH SDSL conns (MPF) TISBO
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL137
WH SDSL rentals (MPF) (TISBO)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse
Retail Residual Products
SL140
Wholesale PSTN premium connections
(external)
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL141
Wholesale PSTN premium transfers
(external)
Allocated to Product on the
number of transfers made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL142
Wholesale PSTN premium takeovers
(internal)
Allocated to Product on the
number of takeovers made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL143
Wholesale ISDN2 takeovers (internal)
Allocated to Product on the
number of takeovers made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL145
Wholesale ISDN2 connections
(external)
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse
Retail Residual Products
SL146
Wholesale ISDN2 transfers (external)
Allocated to Product on the
number of transfers made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL147
ISDN30 takeovers (internal)
Allocated to Product on the
number of takeovers made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL148
Wholesale ISDN30 connections
(external)
Allocated to Product on the
number of connections made for
each Product in the year.
Volumes are sourced from
Powerhouse.
Retail Residual Products
SL149
Wholesale ISDN30 transfers (external)
Allocated to Product on the
number of transfers made for
each Product in the year.
Volumes are sourced from
Powerhouse
Retail Residual Products
363
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Wholesale
Service
Description
Driver
Product Range
SL150
Wholesale PSTN premium rentals
(external)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse
Retail Residual Products
SL151
Wholesale PSTN basic rentals (external)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse.
Retail Residual Products
SL152
Wholesale ISDN2 rentals (internal)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse
Retail Residual Products
SL154
Wholesale ISDN2 rentals (external)
Allocated to Product on the
number of rentals at September
for each Product. Volumes are
sourced from Powerhouse.
Retail Residual Products
SL156
Wholesale ISDN30 rentals (external)
Allocated to Product on the
number of rentals at September
for each Product volumes are
sourced from Powerhouse.
Retail Residual Products
SL989
Openreach External SFI
This service is in a Residual
Market.
Retail Residual Products
SLB10
BT only WH Int Ipstream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB11
BT only WH Ext Ipstream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB12
BT only WH Int Datastream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB13
BT only WH Ext Datastream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB14
BT only WH Int Ipstream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB15
BT only WH Ext Ipstream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB16
BT only WH Int Datastream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB17
BT only WH Ext Datastream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB20
2-3 Ops WH Int Ipstream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB21
2-3 Ops WH Ext Ipstream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB22
2-3 Ops WH Int Datastream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB23
2-3 Ops WH Ext Datastream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB24
2-3 Ops WH Int Ipstream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB25
2-3 Ops WH Ext Ipstream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB26
2-3 Ops WH Int Datastream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
364
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Wholesale
Service
Description
Driver
Product Range
SLB27
2-3 Ops WH Ext Datastream end user
access-rental
Allocated directly to a single
Product
Retail Residual Products
SLB30
4+ Ops WH Int Ipstream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB31
4+ Ops WH Ext Ipstream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB32
4+ Ops WH Int Datastream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB33
4+ Ops WH Ext Datastream end user
access-conns
Allocated directly to a single
Product
Retail Residual Products
SLB34
4+ Ops WH Int Ipstr end user accessrent
Allocated directly to a single
Product
Retail Residual Products
SLB35
4+ Ops WH Ext Ipstr end user accessrent
Allocated directly to a single
Product
Retail Residual Products
SLB36
4+ Ops WH Int Datastr end user accrenta
Allocated directly to a single
Product
Retail Residual Products
SLB37
4+ Ops WH Ext Datastr end user accrenta
Allocated directly to a single
Product
Retail Residual Products
SLT01
Local-tandem conveyance - PSTN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Inter
Network Call Accounting (INCA),
Call Statistics Centralisation
System (CSCS) and Powerhouse
Retail Residual Products
SLT02
Local-tandem conveyance - ISDN
The Service is charged on a per
minute basis, where Product
volumes are sourced from Call
Statistics Centralisation System
(CSCS) and Inter Network Call
Accounting (INCA)
Retail Residual Products
SO224
UCP Equipment
This service is in a Residual
Market.
Retail Residual Products
SO227
ASU switches
This service is in a Residual
Market.
Retail Residual Products
SO260
Cambridge Voice Intelligent Peripheral
(VIP)
This service is in a Residual
Market.
Retail Residual Products
SO261
Intelligent Contact Manager
This service is in a Residual
Market.
Retail Residual Products
SO262
I.N Links
This service is in a Residual
Market.
Retail Residual Products
SO263
CORE IN
This service is in a Residual
Market.
Retail Residual Products
SO266
Cambridge infrastructure
This service is in a Residual
Market.
Retail Residual Products
SO270
Signalling Transfer Point
This service is in a Residual
Market.
Retail Residual Products
SO271
Alfredo
This service is in a Residual
Market.
Retail Residual Products
SO273
Montrose
This service is in a Residual
Market.
Retail Residual Products
SO290
OR Network Features (External)
This service is in a Residual
Market.
P979 - OR Network Features
SO291
OR Network Features (Internal)
This service is in a Residual
Market.
P290 - Select Services
365
Section 7 Network Component Allocations – Detailed Attribution Methods (DAM)
Wholesale
Service
Description
Driver
Product Range
SO371
PC rental 2Mbit/s link per km
distribution
The Service is charged on
Distribution length per kilometre
basis. Volumes are sourced from
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO372
PC rental 2Mbit/s link per km trunk
The Service is charged on a Trunk
length per kilometre basis.
Volumes are sourced from Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO373
PC rental 34Mbit/s link per km
distribution
The Service is charged on a
Distribution length per kilometre
basis. Volumes are sourced from
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO374
PC rental 34Mbit/s link per km trunk
Service is charged on a Trunk
length per kilometre basis.
Volumes are sourced from Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO375
PC rental 140Mbit/s link per km
distribution
Service is charged on a
Distribution length per kilometre
basis. Volumes are sourced from
Core Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO376
PC rental 140Mbit/s link per km trunk
Service is charged on a Trunk
length per kilometre basis.
Volumes are sourced from Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO378
PC Rental 622Mbit/s link per km trunk
Service is charged on a trunk
length per kilometre basis.
Volumes are sourced from Core
Transmission Circuit costing
System (CTCS).
Retail Residual Products
SO381
PC rental 64Kbit link
The Service is charged on a
64kbit link equivalent basis.
Volumes are sourced from
Customer Oriented System for
the Management Of Special
Services (COSMOSS) and Core
Transmission Circuit costing
System (CTCS)
Retail Residual Products
SO383
PC rental 2Mbit/s link
The Service is charged on a per
link basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS)
Retail Residual Products
SO385
PC rental 34Mbit/s link
The Service is charged on a per
link basis. Volumes are sourced
from Core Transmission Circuit
costing System (CTCS)
Retail Residual Products
SO388
PC rental 140Mbit/s link
The Service is charged on a per
link (circuit) basis. Volumes are
sourced from Core Transmission
Circuit costing System (CTCS)
Retail Residual Products
SO391
PC rental 64Kbit link per km
Distribution
The Service is charged on a link
per length basis with. Volumes
are sourced from Powerhouse
and Core Transmission Circuit
costing System (CTCS)
Retail Residual Products
366
Detailed Attribution Methods (DAM) – Section 7 Network Component Allocations
Wholesale
Service
Description
Driver
Product Range
SO400
Point of handover CSH connection
This service is charged per
connection. Volumes are
sourced from COSMOSS.
Retail Residual Products
SO401
Point of handover ISH connection
This service is charged per
connection. Volumes are
sourced from COSMOSS.
Retail Residual Products
SO402
Point of handover CSH rental
This service is charged per rental
volume. Volumes are sourced
from COSMOSS
Retail Residual Products
SO403
Point of handover ISH rental
This service is charged per rental
volume. Volumes are so