Ref: 50/00
Date: 11 July 2000

Oftel  today issued a draft determination to bring into effect the condition in BT’s licence on local loop unbundling.

The condition requires BT to allow other operators to place Digital Subscriber Line (DSL) technology equipment in the local exchange to upgrade the local loop so to provide high speed information services to customers.

Subject to consultation, Oftel proposes that the condition should enter into force on 8 August 2000.

David Edmonds, Director General of Telecommunications said today:

"Considerable progress has been made by the industry to resolve the various operational and technical issues associated with local loop unbundling. The next stage will be to get on with the practical work of co-locating equipment and the provision of unbundled local loops.

"We have now reached the stage where the new condition in BT’s licence needs to be brought into force.

"The new condition provides the necessary legal framework so that if any problems occur, Oftel can intervene swiftly so that the timetable for local loop unbundling remains on course.

"Operators should be able to place orders with BT for co-location of equipment in BT’s exchanges from 1 September, and work must be completed in time to ensure that operators can launch their services to customers by July 2001.

"Bringing the licence condition into force is an important step towards local loop unbundling, and will ensure that the momentum and timetable remains on course."

Notes to Editors

1. Copies of the draft determination and accompanying explanatory note are available on Oftel’s website at www.oftel.gov.uk/competition/llud0700.htm Copies are available to the media from Oftel’s press office and to the public from Oftel’s Research and Intelligence Unit.

2. Oftel announced on 28 April 2000 (PN30/00) that BT had agreed to have a condition inserted into its licence to require it to provide unbundled local loops to other operators. The licence condition  gives the Director General of Telecommunications the power to resolve any disputes over the provision of local loops and associated services. However, the requirements of the condition can only be brought into force when triggered by Oftel.

3. 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. Initial services were launched on 29 June.  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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