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08|02|05

Update on Local Loop Unbundling

The independent Office of the Telecoms Adjudicator (OTA) today published an update on progress towards unbundling the Local Loop. This update has been provided in a letter sent to CEOs of all the companies who are members of the Adjudicator Scheme.

The full OTA update is available at www.offta.org.uk.

The Telecoms Adjudicator was appointed by Ofcom in July 2004 to help develop new Local Loop Unbundling (LLU) products and processes which are high quality, fit-for-purpose and industrialised to cope with large volumes over time, and to find a prompt mediated resolution of working-level implementation disputes.

The OTA update reports good progress, but variable performance in some operational areas:

• 31,000 lines had been unbundled by 31 January 2005. This number has grown from around 12,000 in May 2004. The OTA had targeted 50,000 lines by February 2005.
• Performance is behind OTA Key Performance Indicator, Right First Time, which measures delivering working service in time to meet customers' expectations. Actual delivery is variable at 50-60%, against the OTA target of 75% Right First Time by February 2005, rising to 85% in the near future.

The Telecoms Adjudicator Scheme is successfully underway, with 14 companies signed up and encouraging signs of investment commitment. LLU price reductions were implemented from 1 January 2005, with additional price reductions to follow.

However, LLU operators continue to experience operational problems and variable delivery performance is inhibiting operators' marketing plans. The Adjudicator's update makes it clear that operational performance is the key to success for LLU as order volumes grow.

Ends.

NOTES FOR EDITORS AND CSEs

Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

For further details please visit www.ofcom.org.uk.

CONTACT

Ofcom Media Office
mediaoffice@ofcom.org.uk
(+44) (0)20 7981 3033

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