Destination All-IP

For decades, Openreach has been gradually moving towards a digital All-IP network. However, the announcement of the PSTN network closure in 2025 (now 2027 for complex environments) marked a significant acceleration of this journey. The subsequent Exchange Exit program, which aims to close over 4,600 exchanges by the early 2030s, represents a pivotal moment in this transformation as it moves to a Single Fibre Network (SFN).

Openreach’s SFN presents both significant challenges and opportunities for the UK communications industry. While the transition to a fibre-based network promises numerous benefits, such as improved reliability, faster speeds and automated provisioning, the migration will have significant impact not just on Communications Providers but users far beyond them.

In this blog series, we will explore the impact of the transformation programmes and the SFN on the different players in UK communications, pointing the way to addressing the hugely disruptive migration challenges that all players face.

The end of life for copper

Openreach’s decision to phase out copper infrastructure in favour of fibre is driven by a combination of cost reduction and service improvement objectives. By transitioning to SFN and a digital All-IP portfolio, Openreach aims to:

• Reduce operating costs: Streamline IT systems, rationalise field engineering operations, and improve diagnostic and repair processes.
• Enhance customer experience: Deliver faster speeds, greater reliability, and more consistent service across both consumer and business markets.
• Create a more efficient network: Integrate disparate edge networks and access technologies into a unified platform.

One of the key challenges hindering Openreach’s current operations is the siloed nature of its consumer and business divisions. These separate entities often have distinct management structures, systems, products, and operational models, leading to inconsistencies in service levels and customer experiences. This fragmentation not only increases costs but also complicates the customer experience, particularly for businesses that rely on a combination of consumer (most critically WLR) and business services.

In subsequent blog posts, we will delve deeper into the specific challenges and opportunities associated with this transition, including the impact on businesses that utilize consumer WLR services and the strategies for ensuring a smooth migration process.

The impact of the Single Fibre Network

Openreach’s transition to a Single Fibre Network (SFN) involves a two-phased approach:

1. PSTN Closure and WLR Withdrawal: The first step is close the legacy Public Switched Telephone Network (PSTN) and replace copper-based DSL with fibre broadband. This transition will now be a phased transition to 2027 and is expected to deliver significant improvements in internet speeds and overall customer experience. The move to All-IP services will be delivered by the SFN, which provides its own additional benefits. .

2. Exchange Exit: Openreach has embarked on an Exchange Exit program, consolidating its network infrastructure by closing over 4,600 legacy exchanges. These outdated exchanges are inefficient, space & power-hungry, and costly to maintain. By replacing them with a smaller number of modern, high-capacity Handover Points (OHPs), Openreach can significantly reduce operational costs and improve network performance. The goal is to complete the Exchange Exit program by mid-2030.

During the Exchange Exit process, leased line services such as Ethernet Access Direct (EAD) and Optical Spectrum Access (OSA) will be migrated to the new OHPs and services such as FTTP will require migration to new PONs. Depending on the complexity of the services there could be anywhere between one and three planned engineering outages . 

In parallel, Openreach intends to launch EAD2, which essentially changes how EAD is delivered, to a model closer to what FTTP is today. We will cover the impact of EAD2 in a subsequent blog.

So the future looks quite rosy?

While the future of Openreach’s Single Fibre Network (SFN) appears promising, there are significant challenges to overcome. One of the most pressing concerns is the transition to Voice over IP (VoIP) telephony, particularly for vulnerable customers who may require additional technology and support, inlcuding where vulnernable customers are in sheltered housing and care homes. 

Ensuring the robustness of the migration processes are also critical, especially for protecting vulnerable customers and Critical National Infrastructure (CNI). The Exchange Exit trials, and industry feedback have highlighted the complexities of this once in a generation technology evolution from a customer perspective. Openreach is expecting the end customers to live with and carry the costs and service interruption of their transformation.

Despite these challenges, Openreach has no choice but to modernize its infrastructure and operational model to remain competitive and in the long term it will hugely benefit to UK plc. The key question is how customers can navigate this transformation effectively, considering the stop/start nature of the trials?

How we help

Acuity Insight and its team of dedicated network & services professionals have a deep industry understanding of how to plan a key network transformation working with Openreach. We can assist you in making informed decisions and developing comprehensive, actionable plans to ensure a successful transition.

To discuss how Acuity Insight can support your organization in navigating this transformative process, please contact us for a free and confidential consultation.