Ref: 77/01
Date: 15 November 2001

Oftel has today set out the service levels that BT must offer to other operators wanting to unbundle BT local loops, following consultation with the industry.

This is the first time that the telecoms regulator has formally intervened to set service level standards, and is designed to ensure that BT meets the needs of operators that want to provide high speed services over unbundled loops.

BT must pay compensation if it fails to meet these service levels. For example, BT will have to pay operators £10 for each working day an unbundled loop is unavailable and £80 per operator for each working day’s delay in providing co-location facilities.

If, for example, BT promises an operator (and its customers) to deliver a loop on Monday and it is not available until Wednesday, the operator will be entitled to £20 compensation.

Oftel took the decision to set service level commitments when it decided that BT’s original commitment did not meet operators’ needs for providing services over unbundled loops.

David Edmonds Director General of Telecommunications said today:

"The service levels set out by Oftel will ensure that BT delivers an appropriate service to operators ordering unbundled local loops.

"Where BT does not fulfil these commitments, it will be required to pay a level of compensation which reflects the revenue lost by operators.

"BT will agree contracts with individual operators. Where it does not meet the timescales for delivering loops to operators’ customers, BT will have to pay compensation.

"Oftel originally proposed that BT would also have to compensate operators for their extra costs if it did not have an automated system for ordering local loops in place by its planned date of 5 November.

"I am pleased to say that BT has met its deadline for providing an automated system so there is at present no need for compensation for this."

BT is required to amend the access network facilities agreement, which is the contract BT has with operators to provide the services necessary for local loop unbundling.

Notes to editors:

1. Local loop unbundling: service level commitments and compensation is available on Oftel’s website at www.oftel.gov.uk/publications/local_loop/sla1101.htm. Hard copies are available to the media from Oftel’s press office on 020 7634 8991 and to the public from Oftel’s research and information unit on 020 7634 8761.

2. Local loop unbundling: The terms of the Access Network Facilities Agreement - Statement and Determination is available on Oftel’s website at: www.oftel.gov.uk/publications/local_loop/anf0201.htm.