Ref: 50/01
Date: 18 July 2001

Guidelines on the changes BT can make to its network to support the growth of other operators’ unmetered Internet traffic have been published today by Oftel.

The amount of Internet traffic on BT’s network is set to grow further as a result of Oftel’s ruling made in February 2001 that other operators can convey Internet calls across BT’s network to provide unmetered access to consumers.

Oftel’s independent technical experts had advised that capacity on BT’s network may not be sufficient to meet all demands for this product – Single Tandem Flat Rate Internet Access Call Origination (ST FRIACO). The guidelines set out how available capacity should be assessed. Where there is a capacity shortage, the guidelines set out how the network capacity issues are to be handled.

Oftel has ruled that in such circumstances, instead of Internet traffic going onto BT’s main trunk network, BT should take an operator’s traffic off the network at a local exchange, and make alternative arrangements to convey the calls to the operator’s network. The FRIACO Determination published in February 2001 made it clear that such work must be paid for by BT.

The guidelines clearly set out the circumstances in which traffic would need to be rearranged, how long the work should take to complete, and which operators can reasonably be required by BT to rearrange traffic.

David Edmonds, Director General of Telecommunications, said:

"Oftel’s requirement to allow other operators to offer unmetered Internet access over BT’s network is likely to lead to a further rise in Internet traffic. Oftel’s guidelines set out what action BT can take to re-route traffic in order to ensure that Internet traffic can continue to grow.

"Instead of an operator taking off traffic at the trunk network which is usual practice, BT can take the calls off at the local exchange and make other arrangements to transfer the traffic to the operator's interconnection point. This work would be paid for by BT, as set out in the Determination published in February 2001.

"Oftel’s clarification of how ST FRIACO will be provided by BT should make it easier for operators to provide unmetered Internet access over BT’s network."

Notes to editors

1 Guidance as to how the Director General will consider whether British Telecommunications has acted reasonably in the provision of Single Tandem FRIACO is available from Oftel's website at: www.oftel.gov.uk/publications/internet/fria0701.htm. Hard 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 In May 2000 Oftel issued a Determination ordering BT to provide a wholesale unmetered Internet access product known as FRIACO (Flat Rate Internet Access Call Origination). FRIACO has been available since June 2000. FRIACO conveys Internet calls to BT's local exchanges at a flat rate. In February 2001 Oftel issued a further determination requiring BT to provide a wholesale product known as Single Tandem FRIACO (ST FRIACO). ST FRIACO conveys Internet calls across BT’s network to the operator’s own telephone network. The February 2001 determination contains provisions for the rearrangement of traffic in circumstances of limited capacity. ST FRIACO is a significant addition to the current FRIACO product which Oftel has required BT to provide since June 2000.

The May 2000 determination, Determination of a dispute between BT and MCI Worldcom concerning the provision of a Flat Rate Internet Access Call Origination product (FRIACO) is available on Oftel’s website at www.oftel.gov.uk/publications/internet/fria0500.htm). The February 2001 determination, Determination relating to a dispute between British Telecommunications and Worldcom concerning the provision of a Flat Rate Internet Access Call Origination product ("FRIACO"), is available on Oftel’s website at www.oftel.gov.uk/publications/internet/fria0201.htm.