Ref: 05/02
Date: 18 January 2002

Oftel has today ordered BT to cut its charges for some of the facilities needed by local loop unbundling operators to provide broadband services to customers.

The changes are the result of an Oftel investigation which found that some of BT's charges for the services were too high.

BT must:

• cut its charge for providing line information from £5.30 to £2.60 per line; and

• halve the premium it charges for escorted access to exchanges, where this is necessary and visits have not been arranged in advance.

Oftel also believes that BT should cut its connection and rental charges for external tie cables, which link operators' equipment with BT’s local exchanges. Final charges for external tie cables will be determined when Oftel completes a separate analysis of competition in the relevant market.

David Edmonds, Director General of Telecommunications, said:

"Following an investigation, Oftel has ordered BT make changes to the way it charges for a number of services it provides to operators installing equipment in BT’s exchanges.

"This will lead to lower charges, reducing costs for operators and giving them greater confidence to plan the rollout of their high speed services.

"Today’s announcement is another example of Oftel taking action to support the rollout and takeup of broadband services through competitive broadband markets.

"Last month Oftel proposed that BT must allow other operators to interconnect with BT’s broadband network to provide broadband services to customers."

Notes to editors

1 Oftel statement and direction on certain of BT’s charges for Local Loop Unbundling distant and physical co-location is published on Oftel's website at www.oftel.gov.uk/broadband/llu/llup0102.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. Oftel’s aim is to promote the roll out of broadband services through the creation of competitive broadband markets. Broadband services can be delivered by operators installing equipment in BT’s exchanges and using unbundled local loops; by service providers using BT’s wholesale broadband service; and under a recent proposed ruling from Oftel, by interconnecting their broadband networks with BT’s network. Broadband services are also available over cable networks using cable modems, broadband fixed wireless access networks and satellite.