Ref: 70/01
Date: 18 October 2001

Charges for a range of services for local loop unbundling have been published today by Oftel.

Oftel today:

• Set final charges for shared access to local loops. Oftel has set an annual rent of £53 plus a one-off connection charge of £117 per shared loop – lower than the charges proposed by Oftel in June;

• Confirmed that BT must not charge operators separately for clearing a site in preparation for co-location build in its exchanges, but must recover these costs through rent charged for co-location space.

Oftel also published a statement setting out findings from its pricing investigations of BT’s co-location services. Oftel found that while in general BT's charges for co-location are cost-oriented, BT's charges for some services, for example the external tie cable rental charge, are too high, and is proposing changes to BT’s pricing.

David Edmonds, Director General of Telecommunications, said:

"These announcements provide further clarification for operators planning to offer services over unbundled local loops.

"Final prices for shared access to local loops are lower than those originally proposed, following analysis of additional information received by Oftel during the consultation period.

"The rental charge is now below the EU average.

"Oftel has confirmed its initial proposals that some of BT’s co-location charges are too high. In particular, Oftel proposed that some of the charges for distant co-location needed to fall. BT has already brought some of those charges down, and Oftel is proposing further changes.

"Oftel has confirmed that operators will not be charged separately by BT to have space in exchanges cleared in preparation for co-location build."

Notes to editors

Direction imposing changes on BT’s reference offer in relation to prices for shared access to the local loop in accordance with Article 4(2)(a) and Article 4(3) of the EC Regulation No 2887/2000

Shared access allows a customer to use an alternative operator for high-speed data services and keep BT for voice services over the same local line. This in turn enables operators to concentrate their business on the provision of high speed services to consumers without providing a voice calls service.

The charges published today are based on a specific technical configuration, where the splitter is installed and operated by the sharing operator in its co-location space, and on the assumption that BT employs a manual procedure to test line for faults.

(www.oftel.gov.uk/publications/local_loop/shac1001.htm)

Oftel statement and draft direction on BT’s charges for Local Loop Unbundling distant and physical co-location

This statement sets out Oftel’s conclusions from three investigations it has conducted. These investigations have examined BT’s charges to Local Loop Unbundling Operators (LLUOs) for physical co-location and distant location which form part of BT’s provision of facilities for Local Loop Unbundling (LLU) in the UK.

Accompanying the statement is a draft direction in which Oftel proposes that certain other charges should fall. Oftel invites comments on the issues raised in the draft direction. The deadline for responses is 14 November 2001.

(www.oftel.gov.uk/publications/local_loop/colo1001.htm)

Direction on BT’s charges for site clearance as part of local loop unbundling

States that BT must only charge operators the lower of a market based or non-discriminatory rent for making physical space in BT’s exchanges ready for co-location build and should not at the same time raise a separate one-off charge for site clearance or asbestos removal.

(www.oftel.gov.uk/publications/local_loop/clear1001.htm)

Hard copies of all documents are available to the press from Oftel’s press office on 020 7634 8991 and to the public from Oftel's Research and Information unit on 020 7634 8761.