Oftel has today published a determination setting out certain terms and conditions of the contracts between BT and operators for local loop unbundling. This is a further key element in providing a clear framework for local loop unbundling.

The determination sets out the terms and conditions under which BT supplies unbundled local loops and ensures that the contract terms are fair and reasonable.

The determination includes the following measures:

• if operators do not need all the space they order, they will be able to trade space in exchanges with each other, rather than returning it to BT;

• BT will have to pay immediate compensation to operators if service levels are not met;

• operators will have the right to refer disputes about the provision of LLU to an independent expert under a new dispute resolution procedure. This is in addition to the right to refer major disputes to Oftel under BT’s licence;

• operators and BT must agree levels of service to ensure that BT provides operators with reasonable service on a non-discriminatory basis;

• BT's and operators’ liability for lost profits or income has been capped to ensure that claims are within reasonable limits.

David Edmonds, Director General of Telecommunications said today:

"Operators are now placing firm orders for unbundled loops.

"Oftel’s determination provides operators with added confidence to proceed with local loop unbundling in the knowledge that the terms and conditions within their contracts are fair.

"Operators and BT agreed many of the conditions within the contract themselves, but where they were unable to agree I have stepped in to set the terms and conditions."

1. Local loop unbundling - The terms of the Access Network Facilities Agreement - Statement and Determination is available from Oftel’s website at www.oftel.gov.uk/publications/local_loop/anf0201.htm. Copies are available to the media from Oftel’s Press office on 020-7634 8991 and to the public from the Research and Intelligence Unit on 020-7634 8761.

2. BT and the operators have been given until 30 April to agree service levels and how compensation for breaching them will be paid. If there is still disagreement, Oftel may step in to decide what these levels should be.