Ref:  56/00
Date: 31 July 2000

Oftel has today published draft guidelines on how it will apply the various provisions contained in the new local loop unbundling condition in BT’s licence.

The guidelines list the range of facilities and services that BT must offer other operators and the time scales in which they should be provided.

They also indicate how the Director General of Telecommunications is likely to respond if called upon to resolve any disputes between BT and other operators.

Condition 83 is the legal framework in BT’s licence that requires it to provide facilities to enable other operators to install their equipment in BT’s exchanges and use BT’s local loop to provide new high speed services to customers.

Underpinning the provisions for local loop unbundling are the principles that BT must:

• not give undue preference or discrimination to its own business against other operators and ensure that other operators are able to compete on the same basis as BT in the delivery of higher bandwidth services;

• set prices that are derived from costs

• ensure that a reference offer on local loop unbundling products, prices and terms and conditions is published so that other operators can be certain of what is being offered.

Among the practical issues for local loop unbundling that the guidelines address are the arrangements for co-location of operators’ equipment.

The guidelines make it clear that the Director General considers it reasonable that BT should normally be able to provide standard co-location of equipment in an exchange within four months of receiving an order.

As BT will be ready to take to orders from operators for co-location from September, Oftel expects that operators should be able to begin installing equipment before the end of the year, with the first connections to unbundled local loops taking place early in the New Year. Oftel expects progressive rollout with unbundled loops available in volume by the middle of next year.

Oftel is consulting with the industry on the draft guidelines. Subject to comments received, final guidelines should be published in September. The guidelines may be amended to reflect European Community legislation on Local Loop Unbundling.

Note to Editors

1. A copy of the draft guidelines is available on Oftel’s website at www.oftel.gov.uk/competition/llug0700.htm

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. 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.

3 On 12 July the European Commission issued a draft Regulation on LLU. This is subject to adoption by the Council and European Parliament which is expected by the end of 2000. If adopted, the provisions of the Regulation would be directly applicable in the UK.

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