Openreach Updates on Pilot for National UK Exchange Closures

Network access provider Openreach (BT) has published a new industry consultation that sets out, in more detail, how they’re proposing to close the first 103 of their “priority exchanges” by 2030 (pilot phase). But eventually the plan is to shut 4,500 exchanges across the UK, which will impact various broadband, PIA and Ethernet services.

Openreach currently has around 5,500 UK exchanges, but only c. 1,000 of these exchanges – the Openreach Handover Points (OHPs) – are used to provide nationwide coverage of modern “fibre broadband” based services (FTTC, FTTP and G.fast). Naturally, the rollout of full fibre, combined with the retirement of copper lines and analogue services, will eventually make it economically unviable to support both the old and new exchanges together.

NOTE: Openreach previously predicted that, come 2025, the number of copper broadband customers being served by the 4,600 exchanges will fall to just 1 million.

Due to all this, Openreach has been working on a long-term plan to close the vast majority of their older exchanges – known as the ‘Exchange Exit Programme‘. The plan is to conduct an initial closure of 103 priority exchanges by 2030, with the rest following gradually in the years thereafter. But before that, the operator has been piloting their approach via an initial batch of just 5 exchanges (here).

The pilots began around May last year, with final product switch-off expected to follow later in 2024 for Deddington, Carrickfergus, Ballyclare, Glengormley, and Kenton Road. The operator has now launched a new consultation that sets out their proposed approach to closing the first 103 exchanges by 2030 (it’s open for feedback until 21st Sept 2023).

Openreach Estimate of FTTP Footprint at Pilot Exchanges (March 22)
➤ Deddington (Oxfordshire) – 99%
➤ Kenton Road (London) – 93%
➤ Carrickfergus (NI) – 98%
➤ Ballyclare (NI) – 90%
➤ Glengormley (NI) – 99%

NOTE: Coverage will improve before complete closure of these exchanges in 2024-25. But Openreach warns that they may be unable to provide FTTP to everybody (i.e. issues of prohibitively high costs and permissions/consents to cross private land etc.) and “in these scenarios, customers may need to seek an alternative provider or technology solution.” That’ll go down well.

According to the document, which we’ve been able to view, Openreach envisages a gradual four-phased approach toward closure (no surprise given the huge complexities involved). The process of exiting the most complex exchanges would begin up to 7 years before their exit date, while the simplest exchanges could be done within 4 years.

In terms of the 4-year approach, the first 3 years would focus on encouraging voluntary migration and using “stop sells” on old products (i.e. you can’t buy them anymore), while the final year would involve “supported migrations” or the risk of your service being ceased if the retail provider fails to achieve this. ISPs would also be expected to remove their kit from exchanges in the final year.

The consultation also attempts to propose how they’ll handle the thorny issue of Ethernet, Dark Fibre (DFX) and PIA (access to existing cable ducts and poles), which are supplied by many of the “old” exchanges too. Alternative networks have previously warned that the costs involved with adapting to this could be significant (here), and have called on Openreach to “shoulder a portion of the costs to its customers of accommodating” the closures. Otherwise, AltNets fear that some of the changes could result in their investments becoming unviable.

The document suggests that Openreach may be able to help in some areas (details remain unclear), but in others there may be no escaping the extra costs that AltNets will have to handle. In any case, it’s still a bit too early to draw any firm conclusions, although Openreach expect to respond to the consultation feedback’s in December 2023 (there’s bound to be a fair bit of feedback on this one).

Richard Allwood, Chief Strategy Officer at Openreach, said:

“As we continue with our multi-billion pound investment to upgrade the UK’s broadband infrastructure, we’re excited by the opportunities to streamline legacy services and assets”

The move to a new digital network will ultimately benefit everybody – from Communication Provider customers who’ll be able to serve their customers from fewer exchanges – helping to save costs to millions of consumers who will benefit from fibre technology and therefore more reliable and faster broadband.

Exiting exchanges that support copper and point-to-point services needs careful consideration and planning. As we continue with our exchange exit programme we’re here to collaborate and have opened this consultation to help CPs as they migrate their customers.”

The latest tentative list of the first 103 priority exchanges can be found below, although this is subject to change. Openreach chose these based on a variety of different factors, such as FTTP coverage, location (avoiding resources contention), volume of Ethernet and optical customers served, and complexity of the exchange itself. In addition, we suspect that issues of expiring leases and other cost impacts may have also had a role.

Openreach have previously said that they would prioritise exchanges where the potential benefits of exit are highest (e.g. those with very high running costs). But just to be clear, the operator will NOT be withdrawing exchanges in areas where doing so would leave lots of existing customers disconnected (i.e. no fibre or FTTC alternatives).

The First 103 Exchanges (exit dates from Dec 2027 to Dec 2030)

LIST FORMAT: Exchange SAU ID | Exchange Name | Parent Mapping Openreach Handover Point SAU ID

CLSHO Shoreditch CLFAR
LNSTF Stratford LNMED
WEWBAY Bayswater WEWLOR
WRPIM Pimlico WRSTHBK
CLSOU Southwark WRSTHBK
WEWMAY Mayfair WRSTHBK
LSWOO Woolwich LSTHMD
WEWBLO Howland Street WEWMAR
WEWNPN North Paddington WEWMAR
CLWAP Wapping CLFAR
WEWPAD Paddington WEWMAR
LVCEN Liverpool Central LVBOO
CLHOL Holborn WRSTHBK
LWWEM Wembley LWNWEM
CLNEW New Cross CLBER
LSWAN Wandsworth LSBAL
CMMLD Midland CMCEN
WEWPRI Primrose Hill WEWLOR
WRSKEN South Kensington WRSTHBK
LSKIN* KINGSTON SSC (Taverner House) * Strictly speaking, the SAU ID refers to the neighbouring telephone exchange, not Taverner House. We are planning to retain Kingston telephone exchange, but exit Taverner House.
LWHOU Hounslow LWKNE
LNCED Crouch End CLUPP
LNEDM Edmonton LNPON
LWHARR Harrow LWHAT
LWUXB Uxbridge LWWDRA
LNLVY Lea Valley LNWCR
WSMOT Motherwell WSHAM
LWCHI Chiswick LWACT
NESU Sunderland NESUN
NDMED ChathamNDGIL
LNFIN Finchley LNNFN
CLMON Monument CLFAR
LSRIC Richmond Kew; Surrey LSMOR
LSSTR StreathamLSBAL
EAGRA Grays Thurrock LNPFT
WRKGDN Kensington Gardens WRSTHBK
SDWTHDN Brighton Withdean SDHV
LSWEY Weybridge LSWLTN
LSPUR Purley LSCRO
THAD Aldershot THFB
EAHTF Hertford EAWAR
WMWR Worcester WMSTP
LWPIN Pinner LWRUI
SMLEA Leagrave SMLT
ESCRA Edinburgh Craiglockhart ESDON
LWSTAI Staines LWEGH
CLWOO Baynard (Wood St.) CLFAR
CMDD Dudley; West Midlands CMBYL
LWSKY Skyport LWHAY
LSCTHM CaterhamLSDOW
LSSUN Sunbury LSMOL
LSNCHM North CheamLSSUT
LVGAT Gateacre LVHUY
LSTHDT Thames Ditton LSMOL
EACHF Chafford LNPFT
CMWDGT Woodgate CMHALE
LSESH Esher LSWLTN
SWPN Pontypridd SWLLO
MRBRA Bramhall MRHUL
SDWSWND Worthing Swandean SDWWST
CMKNO Knowle CMSOL
LSFARB Farnborough; Kent LSORP
SSSHM Shepton Mallet SSMID
LVCHI Childwall LVSEF
WNM Mold WNDEE
WSPRO Glasgow Provanmill WSSHE
WMHX Headless Cross WMRJ
SDBRCKL Bracklesham Bay SDCHCHS
THIP Iver THSL
CMBEAC Beacon CMGREB
LSBKM BookhamTHDK
EMALLES Allestree Park EMDRRBB
THBW Blackwater THFB
EABRI Brightlingsea EACOL
MYRPP Ripponden MYELL
EAWRI Writtle EACHE
WWCHEL Chelston WWPAIG
SMHGN Holmer Green SMHY
WWSOME Somerton SSSTT
SSLON Long Ashton SSBED
LNNAZ Nazeing LNHOD
LWCHO Chorleywood LWRIC
LSBET Betchworth THDK
MYADD AddinghamMYSKP
LVAUG Aughton Green LVMAG
NDGUE Guestling NDHAS
LWWRA Wraysbury LWEGH
NDNEI Newick NDUCK
LSMOG Mogador LSREI
EARDH Ramsden Heath EABCY
ESLUN Lundin Links ESLEV
SSSOF Stratton On The Fosse SSMID
MRCHI Chinley MRBUX
NDSHO Shorne NDGRA
THHN Headley Down THHM
EMSOSHM SomershamEMSTIVE
SLDCN Doncaster North SLDC
WWMSMT Mawnan Smith WWFALM
NDOTF Otford NDSEV
EMCOGEN Cogenhoe EMWESTO
SMLA Langford SMSFD
WWWBAY Widemouth WWBUDE
SLHX Haxey SLGB