Proposals to allow Vodafone to purchase fixed links from BT at cost oriented prices have been set out today by Oftel.

Vodafone often uses fixed links supplied by BT to join its base stations to the rest of its network. Vodafone currently purchase these links from BT at retail prices.

Vodafone have requested that these links should be provided by BT at cost oriented prices rather than retail prices.

Oftel believes that the fixed links enable Vodafone to manage its network more efficiently and that BT should provide these links at cost oriented prices.

Oftel's proposals are based very closely on BT's partial private circuits products which are used in the fixed line market to provide business broadband services.

David Edmonds, Director General of Telecommunications, said today:

"Requiring BT to provide fixed links has important implications for the whole mobile industry as they offer similar benefits to BT's partial private circuits products for fixed operators.

"Oftel believes that the proposal will enable mobile operators to manage their networks more efficiently and offer significant savings.

"Oftel is consulting on a draft Direction published today. The deadline for responses is 21 February 2003."

Notes to editors:

1. A dispute between BT and Vodafone regarding wholesale connections between BT's and Vodafone's networks has been published today and is available on Oftel's website at www.oftel.gov.uk/publications/broadband/leased_lines/btvo0103.htm. Hard copies are available to the media from Oftel's Press Office, telephone 020 7634 8991, and to the public from Oftel's Research and Information Unit, telephone 020 7634 8761.

2. Oftel finalised a new pricing and quality of service regime for BT's wholesale business broadband services on 23 December 2002 (see www.oftel.gov.uk/press/releases/2002/pr77_02.htm). This followed a consultation Oftel launched in September 2002.