51/02

8 August 2002

BT must offer backhaul services for local loop unbundling at cost oriented prices, Oftel confirmed today.

Local loop unbundling operators (LLUOs) use backhaul to carry traffic from their equipment in BT’s exchanges to a point where it can be delivered onto the LLUO’s own network.

Oftel has also ordered BT to reduce the prices that it charges LLU operators for external tie circuits (the cable that runs between an LLUO’s equipment and a BT exchange where they are not in the same building).

Oftel has published a list of indicative prices that BT must charge for these circuits.

Chris Kenny, Oftel’s Director of Compliance, said:

"Operators that provide services over unbundled local loops usually use BT’s network to carry traffic from their equipment in BT’s exchanges onto their own networks.

"In order for operators to be able to compete with BT to provide broadband services, Oftel has ordered BT to carry other operators’ traffic across its network at cost-oriented prices.

"Today’s proposals are another step in creating a flourishing market for broadband services."

Notes to editors

1 Final direction on LLU backhaul services is published on Oftel's website at www.oftel.gov.uk/broadband/llu/back0802.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 Local loop unbundling factsheet, including statistics on the progress of LLU, is published monthly at www.oftel.gov.uk/publications/local_loop/llufacts/index.htm