Ref: 14/00
Date: 10 March 2000

High bandwidth communications for the mass market came a step closer today as Oftel launched a consultation on a proposed new condition of BT's licence to require BT's to open up its local access lines.

The proposed condition sets out the requirement on BT to provide unbundled loops to other network operators, permit the co-location of equipment at its local exchanges and to provide any necessary services.

The condition also enables the Director General of Oftel to set the price for these services, and to resolve any disputes between BT and other operators over these services.

Local loop unbundling will allow operators to upgrade BT's local loop by placing Digital Subscriber Line (DSL) technology in the local exchange and at customer premises.

DSL converts the local phone lines into a high capacity line, capable of providing customers with high-bandwidth services like video-on-demand and high-speed always-on Internet access.

Subject to the results of the consultation process, Oftel plans to have the new licence condition in place by June 2000. The condition will come into effect on a date to be determined by the Director General of Telecommunications.

As well as establishing the legal framework, significant progress is being made on a number of other fronts. Milestones include:

• determining a price for the unbundled local loops. Oftel aims to publish an indicative figure during April 2000;
• working out operational issues including specific product definitions, contractual arrangements, processes for order handling, maintenance and repair. Industry produced initial views in January. Oftel has asked for final recommendations by June 2000;
• BT is developing automated systems to process orders for unbundled loops, co-location and other loop services. Following discussions with Oftel and input from industry groups, BT has produced a timetable which will allow for full completion and testing of the necessary systems by April 2001;
• trials of local loop unbundling are due to begin by the end of this year and operators to participate in these trials will be selected shortly.

Commenting on progress towards unbundling the local loop, David Edmonds, Director General of Telecommunications said:

"Oftel's decision to unbundle BT's local loop marks a fundamental change in the delivery of telecommunications services in the UK. Opening the local loop to other operators will create competition in the delivery of the higher bandwidth services which will revolutionise the way we interact and access information.

"1 July 2001 is the absolute deadline for the full launch of local loop unbundling. Systems and processes are being put in place to ensure that everything runs smoothly from day one. A great deal of activity is taking place to resolve these issues. Preparations for the trials will begin soon.

"I am encouraged by the level of commitment from within BT and the industry to make this a reality. Progress is being made at a very good rate. If this continues it should be possible to achieve some initial roll-out prior to the full launch.

"Oftel will continue to work with BT to see if the timetable can be improved. I hope to be able to set out a final timetable for roll-out shortly."

Notes for Editors

1. The draft licence condition is available on Oftel's website. It can also be obtained by telephoning 0171-634 8761.

2. The consultation exercise is launched today. The closing date for responses is 7 April, followed by a 2-week period ending on 25 April for comments on the responses.

3. Oftel Press Release 80/99 (30 November 1999) announced the Director General's decision to require BT to unbundle the local loop.

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