Those were my concerns also.
Section 3.8 states
"We therefore propose, to the extent that NGA cost estimates are required as part of the WLA Market Review, to base the modelled costs on those of a national efficient operator, building an NGA network using FTTC and VDSL2 technology."
There is no allowance for FTTP costs so FTTP cost recovery will be difficult.
There is no account of G-Fast in the costs.
The output appears to be regulated GEA prices ( Technology non-specific).
The model only deals with costs for Commercial areas, but this leaves 2 possible scenarios,
1. The regulated prices will only apply in commercial areas
2. The regulated prices will apply in both commercial and BDUK areas.
Both of which have some unpleasant knock-on effects either for BT or some consumers
I would assume 2. as this is to do with BT's SMP.
The SMP decision is outside this BUT OFCOM have always ignored VM when looking at access markets historically, so BT has always come out as having SMP outside the Hull area. Whether this will change if VM cover the 60% they have targetted will be interesting.
There also appears to be NO allowance for the costs of providing power to Cabs in the model.
Edited by kitcat (Tue 10-May-16 11:43:52)