Ref:  93/00
Date: 27 November 2000

The allocation procedure to decide the order in which operators install DSL equipment in BT’s exchanges for LLU has been published today by Oftel.

Operators will be able to install equipment in exchanges to supply customers with a range of services including voice, fast Internet access, video on demand and interactive TV over unbundled local loops.

The allocation procedure will determine both the order in which BT will prepare exchanges for operators’ equipment and the order in which space will be allocated where there is insufficient room for all the operators to install equipment.

Under the allocation procedure, operators will list in order of priority the exchanges where they want to install equipment. Where space in an exchange is limited, operators will be given an initial allocation of space for three racks of equipment.

The new allocation procedure will apply to the next round of bids from operators due to take place on 1 December. Under the new procedure, operators will be able to bid for space in the most popular exchanges.

The allocation procedure takes into account the responses from operators to Oftel’s original proposal published in October, and the recommendations of telecoms consultants commissioned by Oftel to look at some of the technical issues raised.

Oftel has also issued today its decision that, as requested by operators, the Code of Conduct as proposed by the operators should form part of the contract between BT and operators and should apply to both BT and the operators.

Commenting on the allocation process, David Edmonds Director General of Telecommunications said today:

"A large number of operators commented on Oftel’s proposed allocation process published October.

"A key issue was the amount of space needed by operators to install equipment that would supply customers with basic voice telephony, fast Internet access and interactive television or video on demand.

"Taking into account the views of operators and the recommendation of the consultants we appointed to look at the issue, Oftel has decided that operators should initially have space to install three racks of equipment in exchanges where there are space constraints.

"Using this space operators will be able to supply customers with a range of voice telephony, fast Internet access and interactive television services."

David Edmonds said that pace of local loop unbundling continued to gather momentum.

"In December, operators will bid for space in the most popular exchanges in urban areas. BT has carried out advance surveys on 120 exchanges that are likely to be selected so that they can be prepared for the installation of equipment as soon as possible.

"By July 2001 operators should be able to connect up their equipment to local loops in 600 of BT’s exchanges."

Notes to Editors

1. Statement and Determination on local loop unbundling bow wave process is available on Oftel’s website at www.oftel.gov.uk/competition/allo1100.htm. Copies are available to the media from the Press Office on 020 7634 8991 and to the public from the Research and Intelligence Unit on 020 7634 8761.

2. Oftel received 29 comments from operators, consumer organisations and a telecommunication workers organisation on its initial proposals for an allocation procedure that was published on 11 October.

3. Under Oftel’s allocation procedure, all operators make bids in increments of three racks each. Operators give their prioritised list of bids to the Electoral Reform Society which produces an overall priority ranking of exchanges and states which operators have bid for space in each exchange. Each operator that has bid for space allocation at an exchange gets allocated three racks initially subject to space constraints at that exchange based on the priority of their orders. After that initial allocation, if there is still room, further allocation of racks occurs in increments of three racks on the basis of operator’s priorities.

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