Ofcom regulates prices, or imposes charge controls, across a number of different segments covering the telecoms, broadcasting and postal services markets. A high-level summary of a selection of these regulated prices and charge controls can be found below. Please refer to the relevant regulatory instrument for the full detail relating to a specific regulated price or charge control.
Note: While we do seek to ensure this page is kept up to date, we do not undertake that it will be so. Please refer to the relevant regulatory instrument if looking to rely upon the figures.
Communications providers which use BT’s copper network to provide wholesale and telephone and broadband services to homes and businesses are required to pay Openreach, BT’s wholesale access division, a fee to access the network for the provision of various wholesale telecoms services. The wholesale charge for such services is regulated by Ofcom where BT has been found to have significant market power in the delivery of these services. On 26 June 2014 Ofcom set charge controls for two such categories of services: local loop unbundling (LLU) and wholesale line rental (WLR) services.
Basket/service |
Charges at 31 March 2014 (£) | Nominal charges for 2014/15 (£) * | Charge control for 2015/16 to 2016/17 |
|---|---|---|---|
|
MPF rental |
£83.92 |
£86.11 |
CPI+0.3% |
|
SMPF rental |
£9.89 |
£5.54 |
CPI-33.4% |
|
WLR Rental |
£93.32 |
£91.05 |
CPI-3.0% |
|
WLR Transfer |
£3.39 |
£4.63 |
CPI+34.4% |
|
MPF Single Migration |
£30.65 |
£30.83 |
CPI-1.5% |
|
SMPF Single Migration/Provide |
£30.65 |
£30.83 |
CPI-1.5% |
* The above charge controls on local loop unbundling (LLU) and wholesale line rental (WLR) services for 2014/15 apply from 1 July 2014. Ofcom published correspondence with BT regarding its interim prices for LLU and WLR core rental services from 1 April 2014 to 30 June, the period between the expiry of the previous charge controls and introduction of the new controls.
| From 1 April 2014 to 31 March 2015(*) | From 1 April 2015 to 30 April 2015 (*) | From 1 May 2015 to 31 March 2016(**) | From 1 April 2016 to 31 March 2017(**) | From 1 April 2017 to 31 March 2018(**) | |
|---|---|---|---|---|---|
| Nominal prices | 0.845 | 0.845 | 0.680 | 0.503 | |
| 2012/13 prices | 0.826 | 0.826 | 0.661 | 0.490 | 0.475 |
| Value of X in CPI-X formula | n/a | n/a | n/a | n/a | 3.1% |
(*) MTR cap only applies to EE, H3G, Telefonica and Vodafone.
(**) MTR cap applies to all mobile communication providers as listed in the 2015 MCT statement
Ofcom removed the significant majority of regulatory controls on Royal Mail’s prices as part of its review of the regulatory framework for the postal sector concluded in March 2012, However, to ensure that a basic universal postal service is available to all, Ofcom capped the prices that Royal Mail can charge for Second Class stamps up to 2kg. This cap is expected to be in place for the seven years of the current regulatory framework (i.e. till March 2019).
The cap on the Second Class Letter price was set at 55p in 2012, increasing by CPI from 2013 onwards. The cap for Large Letters and packets (up to 2kg) is a control on the maximum level of prices for the basket of products. This takes the form of a basket weighted by volume which allows Royal Mail flexibility to set the prices of the eight individual products within the basket. The level of the Large Letter and packet cap for 2012 was set at an increase of 53% on 2011-12 prices (consistent with the Letter increase), increasing by CPI from 2013 onwards.
| Safeguard cap | April 2012 | April 2013 – March 2019 |
|---|---|---|
| Letters | 55p | 55p + CPI |
| Large Letters and packets | 2011-12 average price + 53% | + CPI |
Communications providers which use BT’s copper network to provide wholesale and telephone and broadband services to homes and businesses are required to pay Openreach, BT’s wholesale access division, a fee to access the network for the provision of various wholesale telecoms services. The wholesale charge for such services is regulated by Ofcom where BT has been found to have significant market power in the delivery of these services. On 28 March 2018 Ofcom for local loop unbundling (LLU) services we set a charge control for certain variants of BT’s Metallic Path Facility (MPF) services which is used to provide broadband and voice services over BT’s copper local access connections. In respect of virtual unbundled local access (VULA) services, for the first time we also set a charge control for BT’s Generic Ethernet Access (GEA) 40/10 service, which is used to provide broadband services over BT’s fibre connections.
| Charges at 31 March 2018 p.a. (£) | Nominal charges for 2018/19 p.a. (£) [1 June 2018 to 31 March 2019] | Annual charge control for 2019/20 | Annual charge control for 2020/21 |
|---|---|---|---|---|
MPF rental | £84.38 | £85.74 | CPI-2.3% | CPI-2.0% |
GEA 40/10 | £88.80 | £69.59 | CPI-14.0% | CPI-4.0% |
* The above charge controls apply from 1 June 2018 to 31 March 2021. Full details can be found on the Ofcom website.
** On 22 May 2018, Ofcom issued a modification (the Modification) to the SMP conditions contained in Ofcom’s notification dated 28 March 2018 (PDF, 370.8 KB). This modified the SMP conditions by adjusting, on a forward-looking basis, the charge ceilings for Metallic Path Facility (MPF) rental services and certain Local Loop Unbundling (LLU) ancillary services in SMP Condition 7A. The Modification will take effect from 30 May 2018, with new charge ceilings applicable from 1 June 2018 to 31 March 2021 for MPF rental.
*** Prior to this modification taking effect the nominal charge for MPF rental from 1 April 2018 to 31 May 2018 was £85.46.
**** GEA 40/10 refers to BT’s up to 40 Mbit/s upload 10 Mbit/s download wholesale service.
From 1 April 2017 to 31 March 2018(*) | From 1 April 2018 (*) | From 1 June 2018 (*) | From 1 April 2019 to 31 March 2020 (*) | From 1 April 2020 to 31 March 2021 (*) | |
|---|---|---|---|---|---|
Nominal prices | 0.495 | 0.495 | 0.489 | 0.479 | 0.468 |
Real (2015/16 prices) | n/a | n/a | 0.468 | 0.449 | 0.433 |
Value of X in CPI-X formula | n/a | n/a | n/a | 4.1% | 3.7% |
(*) MTR cap applies to all mobile communication providers as listed in the 2018 MCT statement.
For background on the caps, see our final statement setting out the conclusion of our review of the wholesale MCT markets 2018-2021.
From 1 December 2017 to 31 January 2018(*) | From 1 February 2018 to 31 March 2019(**) | From 1 April 2019 to 31 March 2020(**) | From 1 April 2020 to 31 March 2021(**) | |
|---|---|---|---|---|
Nominal prices | 0.0346 | 0.0323 | 0.0307 | 0.0292 |
2016/17 prices | n/a | 0.0307 | 0.0286 | 0.0269 |
Value of X in CPI-X formula | n/a | n/a | 6.9% | 6.1% |
(*) FTR cap only applies to BT.
(**) FTR cap applies to all fixed communication providers as listed in the 2017 NMR statement.
Ofcom introduced the safeguard cap for Second Class products in 2012 to ensure a basic, affordable, universal postal service is available to all consumers and that users of postal services, especially vulnerable consumers, are protected from ongoing price increases. The safeguard caps include a cap on the price of Second Class stamps for standard letters, and a separate basket cap for Second Class stamps on large letters and small and medium parcels up to 2kg.
In 2017 we reviewed the regulation of Royal Mail and concluded that the Second Class safeguard caps should remain in place. We committed to review the level of the caps during the course of the 2018/19 financial year, prior to their expiry on 31 March 2019.
We have now completed our review and have decided to raise the level of the Second Class standard letter cap from 60p to 65.2p in April 2019. The cap will rise by CPI each year on 1 April from 2020 until the end of the control period, on 31 March 2024. We have decided not to raise the level of the basket cap, and therefore the level of the cap will remain 29.4% above 2018-19 average prices, and continue to increase by CPI each year on 1 April until the end of the control period.
The caps will come into effect on 1 April 2019 and remain in force until 31 March 2024.
| Safeguard cap | April 2019 | April 2020 – March 2024 |
|---|---|---|
| Standard letter cap | 65.2p | + CPI |
| Basket cap (large letters and small and medium parcels up to 2kg) | 2018-19 weighted average price + 29.4% + CPI | + CPI |
