Ref: 72/00
Date: 19 September 2000

Operators have today been informed of the 361 BT’s local exchanges where they can install their own equipment to provide high speed services to consumers in competition with BT.

The exchanges are in a wide range of locations across the UK including London, the Midlands, Wales, the North East and Scotland.

Today’s announcement means that 28 operators can now install their equipment in BT’s exchanges and roll out new services to customers from early in the New Year.

The exchanges exclude – with the agreement of the operators – sites where it was likely that demand for space would exceed supply.

However, Oftel emphasised that decisions on these further sites – if necessary imposed by the Director General – will be taken by the end of November. This means that the original timetable for Local Loop Unbundling in the UK will be maintained, and in many cases will be brought forward to before 1 July 2001.

David Edmonds said Director General of Telecommunications said today:

"This is the first step to get local loop unbundling up and running. This will enable 28 different operators to install equipment in BT’s exchanges and begin providing high speed services to consumers and businesses in the New Year.

"Local loop unbundling is a key initiative to bring competition into the BT network for broadband services. As Director General, I initiated the unbundling process in the UK. It is Oftel which has carried it through to ensure that it is delivered.

"There can be no question of decisions on location and the nature of unbundling being left to BT. In August, I put in place a licence condition on BT imposing a set of duties and conditions relating to its unbundling of the local loop. Since then, we have set out the principles for pricing and we will determine prices following consultation.

"We have insisted on changes to the contract between BT and operators to remove unfair terms. And we have determined many aspects of the technical requirements for co-location space. Operators must be able to install their equipment in BT exchanges as quickly as possible.

"I have made it clear to BT at the most senior levels that I will not hesitate to use my statutory powers wherever necessary.

"Furthermore, later this week I will be publishing tough and detailed guidelines on how BT must comply with the unbundling licence condition. This will give further certainty to competitors. These guidelines will cover the timescale within which BT must provide local loops and co-location facilities. BT will need to deliver co-location space within just four weeks from an order being placed if no building works are required and the maximum period in almost all circumstances will be four months. The subsequent provision of the loop must be made within five days.

"I will now work with the industry on an allocation process for the next tranche of exchanges to be unbundled. If there is any doubt about agreement being reached, I will use my statutory powers to enforce a solution."

Notes to Editors

1. Of the 361 sites, 137 are in London and the Home Counties, 55 in the Midlands, 51 in Wales and the west of England, 26 in the North West, 34 in the North East, and 58 in Scotland. Oftel has not published the details of the sites selected due to commercial concerns raised by both the operators and BT.

2. Operators asked Oftel to choose these first exchanges for local loop unbundling because they were unable to agree an allocation procedure amongst themselves. Oftel agreed to their request in order to ensure that the timetable for local loop unbundling remains on course. Oftel used procedures drawn up by the operators that took into account the number of operators that wanted to go into an exchange and the priority they gave. In a number of cases up to 25 operators wanted in install equipment in one local exchange. Oftel informed the Electoral Reform Society who have been involved in this process and they have informed the operators and BT. The allocation method agreed has meant that such sites have not been chosen in this round.

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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