Ref:  38/00
Date:  24 May 2000

A consultation document on the proposed pricing for operators for leasing unbundled local loops from BT has been published today by Oftel.

The document also sets out proposals for the pricing principles for co-location of operators’ equipment in BT exchanges, and other technical support services such as charging for power.

The indicative annual rental for an unbundled loop in most cases will be £105, which is based on reasonable costs, and includes a mark-up to reflect common costs to the line and other BT services. The price will be set at the end of this year to reflect the latest available cost information.

There will also be a variable connection fee depending on the amount of work required by BT to switch the line over.

Commenting on the publication, David Edmonds Director General Telecommunications said today:

"Today’s consultation document addresses some important issues on the pricing of unbundled loops and support services.

"The document makes clear that only certain charges will be determined in advance by Oftel, while others will only be determined in the event of a dispute. Oftel will also regularly review the price set for unbundled loops."

The deadline for the consultation is Tuesday 22 June. Oftel’s final views on pricing principles will be published in July.

Note to Editors

1. ‘Access to Bandwidth: Indicative prices and pricing principles’ is available on Oftel’s website at www.oftel.gov.uk/competition/llu0500.htm. Copies are also available to the media from Oftel Press Office on (020) 7634 8991 or to the public from Oftel’s Research and Intelligence Unit on (020) 7634 8761.

2. Local Loop Unbundling enables other operators to upgrade BT’s local loop by placing Digital Subscriber Line (DSL) technology in the local exchange and at customer premises, as set out in Oftel’s announcement in November 1999. In addition, BT is currently rolling out ADSL over its own network with launch planned for summer 2000. This will give consumers access to high speed information services, with service providers able to use BT’s ADSL equipment to provide their own services to consumers in competition to BT. Local Loop Unbundling will ensure that there is competition in the provision of upgraded loops and will enable different DSL technologies to be used offering more choice to consumers.

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