Ref:   30/00
Date:  28 April 2000

Oftel announced today that BT has accepted a new condition in its licence to provide unbundled local loops.

This is a major step forward in promoting competition to deliver new high speed information services to homes and small businesses across the country using BT’s local telephone network.

The licence condition obliges BT to provide individual telephone lines to other operators, allows the co-location of equipment by operators in BT’s local exhanges and requires BT to provide the necessary support to enable operators to deliver their service direct to customers using BT’s lines.

The condition also enables the Director General of Telecommunications to set the price for unbundled loops and to resolve any disputes over the provision of local loops and associated services.

David Edmonds, Director General of Telecommunications said today:

"The new licence condition gives legal certainty to other operators that want to provide new high speed services to consumers over BT’s telephone lines. Competition between operators will deliver a wide variety of exciting and innovative new services for consumers at competitive prices.

"BT will have a duty to provide phone lines to other operators, allow companies to install equipment in BT exchanges, and provide any necessary support services.

"I am pleased that BT has co-operated with Oftel to have this new condition included in their licence.

"This is a crucial milestone in introducing competition across BT’s local network to provide high speed information services in the UK.

"With companies already selected to start trials of the new services on BT’s network in a number of locations around the country, and work about to commence to co-locate equipment in BT’s exchanges, this important work continues to move forward at a rapid pace."

Notes for Editors

1. A copy of the new licence condition is available on Oftel's website at www.oftel.gov.uk.

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