Oftel boosts provision of broadband services

Ref: 90/01
Date: 21 December 2001

Competing operators will be able to combine BT’s broadband DSL network with their own networks to offer broadband services to consumers under new arrangements announced today by Oftel.

At the moment, operators that want to offer broadband DSL services either have to buy BT’s wholesale broadband products at BT’s prices or install their own DSL equipment in BT’s local exchanges through Local loop Unbundling.

Allowing other operators to use a combination of their own and BT’s DSL networks is a significant new method to provide high speed services to consumers.

Following a request from Energis and Thus to require BT to provide a broadband interconnection product, Oftel today published a draft Determination setting out the proposed interconnection arrangements.

Broadband interconnection increases the range of options to provide broadband services to consumers, both business and residential, which includes leased lines, unbundled local loops, BT's wholesale DSL products, cable modems rand emerging technologies such as fixed wireless broadband access and satellite.

David Edmonds, Director General of Telecommunications, said:

"Allowing operators to combine their own and BT’s networks should give a significant boost to the provision of broadband services in the UK.

"I am proposing to require BT to provide two new interconnection services, using both ADSL and SDSL technology, which should increase the type of broadband access services offered in the market.

"Oftel will ensure that prices for these new services are set at a level that encourages competition between the different providers of broadband services.

"I hope to see operators providing broadband services to end users using these arrangements by next summer."

David Edmonds said that a competitive broadband market was the best way to encourage both availability and takeup of high speed services.

"Oftel believes that the best way to support takeup of broadband services is through a thriving and competitive broadband market, where consumers have choice of products and prices.

"Competition stimulates innovation, gives consumers choice and puts competitive pressure on prices.

"Although the broadband market is still developing the signs are promising. Takeup rates for DSL have increased by more than 400 per cent over the year, and even more for cable, while prices have fallen.

"Oftel’s announcement should give a significant boost the UK’s broadband market by giving operators a new way for operators to offer broadband services to end users.

"Oftel will continue to encourage competition among all types of broadband delivery networks so that the consumer can get the best deal for broadband services."

The consultation on Oftel’s proposals for the new broadband interconnection products closes on 25 January.

Note to editors

Draft direction to resolve a dispute between BT, Energis and Thus concerning xDSL interconnection at the ATM switch is published on Oftel's website at www.oftel.gov.uk/publications/broadband/dsl/atmi1201.htm. Paper 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.