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What are trigger levels? |
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The trigger levels relate to the costs of enabling a specific telephone exchange. Each exchange area has individual characteristics that affect the cost and economics of upgrading it for broadband. |
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The trigger level is calculated on the overall cost to upgrade the exchange. A detailed model has been built that allows BT to calculate how many users will be needed on each individual exchange to make a suitable return on the investment. |
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The costs relate to several elements and include, for example, installing the broadband equipment in the exchange and connecting the backhaul circuits that connect the exchange to the core network that provides broadband service. Backhaul is potentially the most expensive factor. These varying costs lead to different trigger levels - from 200 to 750 - at each exchange. |
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BT is exploring ways to reduce delivery costs to try and reduce some of the higher trigger levels. BT also wants to set trigger levels at exchanges which currently do not have a trigger level set, but only at exchanges that are potentially commercially viable can have a trigger level. As BT reduces costs, more exchanges become potentially viable. |
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How are trigger levels set? |
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BT will build broadband in exchanges where there is sufficient demand to justify the investment. With this in mind, BT have analysed carefully the number of people they need to have signed up for broadband at each exchange. Considerations like the expected rise in customers after the upgrading of the exchange are part of the calculations they make before they decide on a trigger level. When they set a trigger level of, for example, 400, they actually need 800 customers to make a return on our investment. |
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Many trigger levels have recently been reduced, and further exchanges have had trigger levels set. The cost reductions allowing this are mainly related to the engineering of the backhaul. BT is investigating ways of further reducing trigger levels or setting them where until now it would not have been viable. |
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What happens when a trigger level is reached? |
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Once a trigger level is reached for an exchange, BT will check to ensure all the registrations are bona fide. The exchange will then be added to the build list to be enabled for broadband. It is usually ready to offer broadband services within approximately ten weeks. |
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Exchanges without trigger levels |
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When an exchange without a trigger level reaches a significant number of registrations, BT will carry out a cost analysis. This does not guarantee that a trigger level will be published as in some cases the cost analysis will still show that it is not currently viable to provide broadband at this exchange. |
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BT is doing everything possible to bring broadband to everyone that wants it but must do this in a way that makes commercial sense. BT must weigh up the cost of taking broadband to an area against the number of customers likely to buy broadband services in that area. |
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Where an exchange shows low demand it is likely that the evaluation will cover whether other broadband technologies - including wireless or satellite broadband or exchange equipment suited to the needs of small communities - might be more effective. |
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All information © BT 2002-2003 |
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