Ref: 29/01
Date: 29 March 2001

Oftel has today ordered BT to agree a new wholesale leased line product with other operators.

Operators will be able to buy wholesale leased lines from BT and use them to provide a wide range of dedicated telecommunications services to their customers when the negotiations are successfully completed.

Leased lines are permanently connected communications links that are used by business and other operators for 'always on' telecommunications services such as voice and data traffic and Internet access.

Under a Direction published today, BT has two months to agree the terms and conditions for providing wholesale leased lines, and a further month and a half to offer the product to the operators.

The successful implementation of this Direction will have the effect of introducing greater competition in the provision of leased lines and will increase choice and downward pressure on prices for UK businesses. Operators will be able to gain access to BT's leased lines network and therefore compete more effectively with BT and each other.

If BT and the operators are unable to reach agreement, either party can refer the dispute to Oftel to set the terms and conditions.

Announcing the measures, David Edmonds, Director General of Telecommunications said today:

"Oftel has ordered BT to agree a new wholesale leased lines product with other operators. The arrangements must cover the provision of leased lines and inter-connection arrangements for operators on a non-discriminatory and cost-orientated basis.

"The successful outcome of negotiations will significantly increase choice and competition for the provision of leased lines, which are used by businesses to provide dedicated telecommunications services.

"Oftel will assess the impact on the leased lines market of the new wholesale arrangements before deciding whether further measures are necessary to bring down prices."

Notes to Editors

1. The direction is available on Oftel's website at www.oftel.gov.uk/publications/licensing/ppcs0301.htm. Hard 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's statement and draft direction on national leased lines are available on Oftel's website at www.oftel.gov.uk/publications/pricing/nll1200.htm.

3. In December 2000 Oftel published a draft Direction requiring BT to negotiate new wholesale leased lines arrangements. This followed on from a request from Energis to issue a Direction under the Interconnection Directive relating to the provision of partial private circuits (PPCs) by BT. The request was supported by Cable & Wireless, Worldcom, Thus and Fibernet.

4. The ten operators that BT must negotiate new wholesale leased lines arrangements with are: Energis Communications Ltd; Cable and Wireless (Mercury) Ltd; MCI WorldCom Ltd; Fibrenet (UK) Ltd; Thus plc; Global Crossing (UK)Telecommunications Ltd; GTS Network (Ireland) Ltd; COLT Telecommunications; NeosCorp Ltd; and MML Telecommunications Ltd.

5. When a product becomes available BT must supply it to all Annex II Operators.