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Local Loop Unbundling Fact Sheet - July 2001 Layout image
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This fact sheet outlines the background to Local Loop Unbundling (LLU) and gives an update on current progress. It has been designed to answer the most frequently asked questions on LLU. The current progress is summarised on a monthly basis. This is followed by a series of Annexes which give detail on what LLU is and are designed to answer the most frequently asked questions.

Contents

Current progress – an update of the major advances over the past month.

Annex A

What is LLU?
The local loop connection.
Co-location facilities (Hostel and Bespoke options).
Distant location.
Line Sharing.
Sub-Loop unbundling.

Annex B - History of LLU
Annex C - The Bow Wave Process
Annex D - Legal Framework for LLU
Annex E - Pricing of LLU
Annex F - Statistics
Annex G- Consumer questions and answers

Annex H- Glossary of terms


Progress update

July 2001

This update focuses on the progress made since the last update and certain key facts relating to Local Loop Unbundling (LLU). It is not a complete overview of the LLU process but gives a snapshot of the current issues. The Annexes attached to this fact sheet give further information on LLU and are arranged in subject areas.

Since the last update, 30 more distant location sites have been completed, bringing the total number to 41. Another nine physical co-location sites are being built bringing the total under construction to 13. On 27 June, Oftel published a number of measures which will help to reduce operators’ installation costs and which clarify BT’s provision of facilities for LLU. These are listed in section 4 below.

This fact sheet also gives a forward look at the work Oftel is intending to complete by the end of this year in relation to LLU. This is found in section 6 below.

Current state of the LLU rollout

1 Trial Sites

Operators continue to take loops at the four trial sites at Battersea, Edinburgh, Belfast and Leeds. Over 140 lines have now been connected. This increase in orders has enabled more detailed testing of the procedures for both provision and repair.

2 Co-location at BT's exchanges

Work continues at Covent Garden, Harrow, Paddington and Holborn. Since the last fact sheet build has also commenced at the following sites:

Birmingham Central
Mayfair (London)
Shepherds Bush (London)
Hunslet (West Yorkshire)
Morley (West Yorkshire)
Pudsey (West Yorkshire)
Glasgow Douglas
Reading Central (Berkshire)
Wimbledon (London)

Since the last update, OnCue (one of the operators involved in the LLU process) has gone into voluntary liquidation. OnCue’s withdrawal from the process has meant that space has become available in some sites. Other operators have the option of requesting this available space. If the available slots are taken up these sites will proceed as planned. If the slots are not filled this may impact on whether these sites proceed, depending on the consequences for costs.

BT has now sent 364 detailed design and contract offers to operators. This means that the vast majority of conditional and un-conditional design and contract offers have now been issued.

Business as Usual

Under the Business as Usual process, which came into effect during May, 34 requests for sites have been placed. The detailed designs and costings should be sent to operators shortly.

3 Distant location

The sites listed below have been completed. BT has been unable to hand over 14 of these as the operator concerned has gone into voluntary liquidation.

Altrincham (Cheshire)

Lower Holloway (London)

Ardwick (Manchester)

Maida Vale (London)

Barking (London)

Middleton (Manchester)

Bury (Manchester)

New Cross (London)

Canonbury (London)

North Paddington (London)

Cosham (Hampshire)

Orpington (Kent)

Dagenham (London)

Parsons Green (London)

Dartford (Kent)

Perivale (London)

Eccles (Manchester)

Ponders End (London)

Euston (London)

Portsmouth

Fareham (Hampshire)

Portsmouth North

Farnworth (Lancashire)

Sale (Manchester)

Feltham (Middlesex)

Stratford (London)

Gately (Manchester)

Stubbington (Hampshire)

Hampstead (London)

Titchfield (Hampshire)

Havant (Hampshire)

Urmston (Manchester)

Heaton Moor (Cheshire)

Uxbridge (Middlesex)

Hyde (Cheshire)

Vauxhall (London)

Isleworth (Middlesex)

Wandsworth (London)

Leigh (Lancashire)

Wembley (Middlesex)

Leytonstone (London)

4 Investigations

Cost of physical and distant location

Oftel continues to consider the investigations into the charges made by BT for physical co-location and the charges for distant location. As a result of our distant location investigation BT has agreed to significantly reduce its charges for distant location facilities. BT has also reduced its charges for escorted access for operators’ staff in BT exchanges. In addition on 27 June Oftel issued a draft direction in respect of site clearance costs - see section 5 below. Oftel has also recently started a new investigation to examine whether the design and implementation of the hostel product is cost-effective.

Duct sharing

Oftel has now closed its investigation into a complaint arising due to BT's refusal to share duct space with operators in the provision of distant location service. Oftel found that there would be serious network integrity concerns for BT’s public telephone network if BT was obliged to provide the duct sharing products described in the complaint.

Co-mingling

The investigation into BT’s non provision of co-mingling has been completed. On 27 June Oftel issued a draft direction to require BT to meet all reasonable requests from other operators for co-mingling (where operators’ equipment is installed in any operational part of a BT exchange). BT can only refuse to provide co-mingling on the grounds of network security and technical feasibility. The full text of the draft direction can be found at:

www.oftel.gov.uk/publications/local_loop/comi0601.htm

Discrimination complaint

Oftel’s investigation into alleged undue discrimination between LLU and BT’s ADSL roll out has been completed. Oftel considered whether BT was in breach of the Competition Act and/or the prohibition on undue discrimination/preference in condition 83 of its licence and/or the EC LLU Regulation. Oftel did not find evidence of a breach of the Competition Act. In order for discrimination to occur, there has to be evidence of a material distortion of competition.

Oftel did not find a material effect on competition resulting from BT’s non-participation in the Bow Wave. Oftel noted that:

(a) BT is unlikely to gain any significant first mover advantage in the retail DSL market by installing DSL equipment in exchanges ahead of the Bow Wave Process. Operators can compete directly with BT via BT’s DSL products and/or via distant location. In addition it would not be proportionate regulation to stop BT’s DSL rollout which would delay broadband availability in UK.

(b) The Bow Wave Process has ceased due to significant reduction of demand for space in exchanges. Since April 2001 BT can has accepted orders for co-location space in exchanges on a business as usual basis. Requests for distant location facilities have been on business as usual basis since December 2000.

The EC Regulation requires BT to provide facilities equivalent to those provided for its own services or to its associated companies with the same conditions and timescales. BT did not provide Oftel with evidence to demonstrate it is sufficiently compliant with the Regulation though this does not prove a breach.

As a result of these investigations, Oftel has concluded that further steps should be taken to ensure and demonstrate compliance by BT with its obligations. As well as the action detailed in this update, Oftel also intends that BT should provide further detail to demonstrate compliance with the Regulation. In particular, the facilities BT provides for its own DSL services should be separated into a series of cost components in the regulatory accounts

The full text of Oftel’s statement can be found here.

Service Level Agreements (SLAs)

SLAs set the timescale within which BT is required to provide the various elements necessary for LLU service eg co-location facilities or loops and the compensation to be paid by BT where it fails to perform its contractual commitments. In May 2001 a group of operators participating in the LLU process asked Oftel to decide a dispute between them and BT in respect of SLAs. Oftel intends to publish a draft Determination of this dispute later in August.

5 Additional measures

On June 27, Oftel published a number of measures which will help reduce operators’ installation costs and clarify BT’s provision of facilities for LLU. The measures published were:

Site clearance

A draft direction was issued which proposes that the removal of old equipment and other site clearance costs should not be charged for separately. Costs will be recovered through the market rent BT charges operators for co-location space. The text of the direction can be found at:

www.oftel.gov.uk/publications/local_loop/clear0601.htm

Pricing of shared access

A consultation on charges for shared access and on technical solutions for the introduction of automated fault testing has been published. Shared access allows a consumer to use an alternative operator for high speed data service and keep BT for normal voice services over the same loop. The charges discussed in the document are based on a particular configuration where the splitter (which separates the different frequencies of the line) is installed and operated by the sharing operator in its co-location space. Oftel is proposing an annual rental of £68 and a connection charge of £127 per shared loop. The consultation is available at:

www.oftel.gov.uk/publications/local_loop/shacprice0601.htm

Availability of co-location facilities

Detailed guidelines on the co-location facilities including space that BT is obliged to provide and how BT should assess the availability of these facilities for other operators’ use have been published. The guidelines also address BT’s obligation to provide other essential facilities, such as power and the arrangements that should be followed if BT wishes to close an exchange. The text of the guidelines can be found at:

www.oftel.gov.uk/publications/local_loop/colo0601.htm

6 Forward view of Oftel’s LLU work

Short term work due for completion by August/September 2001

  • Completion of current investigations into distant and physical co-location costs.
  • Completion of current consultations on ‘Co-mingling’, BT’s charges for site clearance and BT’s prices for Shared Access.
  • Begin consultation on provision of LLU Backhaul services.
  • Begin consultation on Service Level Agreements applicable to the Access Network Facilities agreement which operators sign in order to obtain unbundling facilities.

Medium term to end of 2001

  • Following completion of consultation on co-mingling further work developing.
  • Monitoring BT’s development of LLU automated Operational Support System (OSS) against BT’s stated timetable.
  • Develop a fixed price co-location hostel that meets operators’ requirements. Oftel to set up task group in August 2001 to begin industry discussions on specification.


Annex A

What is Local Loop Unbundling

Local Loop Unbundling (LLU) is the process where the incumbent operator (BT and Kingston in the UK) makes its local network (the copper cables that run from customers premises to the telephone exchange) available to other companies. Operators are then able to upgrade individual lines using DSL technology to offer services such as always on high speed Internet access, direct to the customer.

Types of access

For LLU, operators have the choice of a number of options for gaining access to the local loop.

Physical space within the incumbent’s site

BT offers operators two options for co-location within its exchanges. The location of an operator’s equipment in a site can either be within a hostel, a room that is built to a standard design to house a number of operators, or in a bespoke arrangement. The basic unit of capacity of a hostel is the "equipment bay". In the standard hostel arrangement the unit of space is a three rack bay which has a footprint of 1.8m x 0.8m and a total area, including circulation space, of 10m2. This area is separate from the incumbent’s operations.

If an operator does not wish to be located within a hostel (e.g. where they have non-standard requirements) they have the option of requesting a bespoke arrangement.

Distant Co- Location

One of the options available to operators is distant location. This is where an operator houses its equipment away from the incumbent’s building and uses a tie cable to connect the incumbent’s exchange with this remote site. The remote site can be a building or a ‘green cabinet’ on the side of a road.

Shared Access and Sub-loop unbundling

The EU Regulation on LLU requires incumbents to offer shared access (or line sharing). Line sharing enables operators and the incumbent to share the same line. Consumers can acquire data services from an operator while retaining the voice services of the incumbent. Some operators may choose to offer data services only, so with line sharing consumers can retain their BT service for voice calls while getting higher bandwidth services from another operator without needing to install a second line.

The EU Regulation also requires that other operators can interconnect with the local access network at a point between the incumbent’s site and the end user. This arrangement is referred to as sub-loop unbundling. In sub loop unbundling the connection point is the primary connection points (PCP’s), which are the green street cabinets. Sub-loop unbundling can be used for emerging technologies such as VDSL where the equipment needs to be much closer to the home to deliver very high bandwidth services. An optical fibre would deliver the high-speed services to the local green cabinet and VDSL used to send them along the copper pair to the consumer’s premises.

Full unbundling

Before

Each pair of copper wires run from the customer’s home to the primary connection point (PCP). The PCP’s are the cabinets that are located at the side of the road. The PCP connects the wires from the customer’s home to a pair of wires from the exchange. Inside the exchange the wires in the external cable are terminated on the main distribution frame (MDF) and then are connected to the internal exchange equipment.

After

Inside the exchange the wires are connected to the MDF. They are then connected via an internal tie cable from the MDF to the handover distribution frame (HDF) which is adjacent to the OLO’s equipment. The HDF (Handover Distribution Frame) is used to terminate the cable from the exchange and to make the pairs available to the operator.

Distant Co-Location

Distant co-location is a form of unbundling where the operator’s equipment is located in a building outside of the incumbent’s exchange.

A tie cable is used to connect the MDF at the local exchange to the HDF at the distant site, but in this case an external tie cable is used.

Line Sharing

Line sharing is a form of local loop unbundling where the incumbent and other licensed operator share the same line.

From the MDF the wires are connected to a splitter (which separates the frequencies for voice telephony and those for higher bandwidth services). The incumbent provides voice telephony over the lower frequency portion of the line, while another operator provides DSL services over the high frequency portion of the same line.

Sub-loop unbundling

Sub-loop unbundling is a form of unbundling where the line is handed over to the other operator outside of the telephone exchange.

The equipment that transfers the incumbent’s line to the other operator is adjacent to the PCP (the cabinet by the side of the road) rather than the telephone exchange. This arrangement will be used for distributing very high bandwidth services, which can only be sent a short distance on the copper pair.


Annex B

History

In November 1999, Oftel issued a statement, Access to Bandwidth: Delivering Competition for the Information Age, which set out its decision to require BT to make its local loop available to other operators. This followed a 12-month consultation.

The Statement set out Oftel’s conclusion that the opening up of the local loop was necessary to introduce competition into the provision of higher bandwidth services such as high speed always on Internet access and video on demand. The introduction of competition into this area should mean a wider range of services to consumers and better value for money.

The statement also concluded that local loops should be available at cost based prices (which Oftel would determine). The requirement for BT to provide loops would be through a licence condition to be inserted in BT’s licence (see Annex D C). Oftel would conduct a policy review of the position on LLU after four years and then at two yearly intervals. The statement also set out Oftel’s approach to BT’s wholesale ADSL service.

To take this work forward, four industry groups were set up. These activities have been co-ordinated by a Focus Group, chaired by Oftel since September 2000. The groups focussed on Trials, Products and Processes, Commercial Issues and Contracts. Through the work of these groups it became apparent that initial expressions of interest in LLU were going to be at a very high level. The industry and BT therefore agreed there needed to be a process to deal with the potential surge of orders. The ‘Bow Wave’ process was designed for this purpose (see Annex C D). This process uses operators’ priorities to determine the order in which BT prepares sites for co-location and also deals with the allocation of space in cases where there are constraints. The first Bow Wave selection process was run in September 2000 when 381 sites were selected. A second Bow Wave in December 2000 selected a further 360 sites.

Due to reduced demand, in February 2001 BT concluded that the Bow Wave is no longer required to manage forward demand for co-location at BT exchanges. The Bow Wave process has been suspended and from April 2001 operators are now able to order co-location facilities on a business as usual basis.


Annex C

The Bow Wave Process

In February 2001 the Bow Wave process was suspended as BT has sufficient capacity to deal with 100 co-location and 100 distant locations each month. After taking operators’ current forecasts into account, BT concluded that it could meet this demand. From April 2001 operators are able to place orders on a ‘business as usual’ basis with BT. This means that operators will be able to place orders for co-location at any of BT’s exchanges and can submit orders anytime they wish. This is similar to how operators now order wholesale products such as interconnection from BT.

The Bow Wave process began when initial discussions between BT and the operators in May 2000 indicated that there was likely to be a very high level of initial demand. It was clear that BT’s standard "business as usual" ordering process would not be able to cope with such levels.

The Bow Wave process was agreed between operators and BT to ensure that sites were prepared in the order of operators’ collective priorities. It was designed to address two issues:

(i) the order in which the sites would be selected and

(ii) the allocation of space, based on operators’ priorities, if there is a limitation on facilities at a particular exchange.

Any operator who has signed the ANFA contract could participate in the Bow Wave. The process is as follows:

  • Operators submit up to a maximum of 1500 prioritised bids for co-location space in BT’s exchanges;
  • These bids are sent to the Electoral Reform Society (ERS) who run a "single transferable voting" system to ascertain the overall priority ranking of each exchange;
  • Operators are informed of the sites that they have chosen which fall within the overall top 500 priority exchanges;
  • Operators submit requests for BT to survey the exchanges in phased tranches of the 360 top priority sites to ascertain the amount of co-location space available;
  • If there is insufficient space to meet demand in an exchange, space is allocated on the basis of the priorities expressed by operators for that exchange;
  • After completion of the initial surveys, operators may request BT to complete a full survey which results in the operators receiving a cost estimate for the build of co-location space;
  • If operators accept the estimate, BT build the co-location facility and operators can install their equipment;

The first round of the bow wave was run on 12 September 2000. Oftel was asked to select these exchanges at the last minute, as operators were unable to agree on an allocation procedure. Oftel selected 361 sites for which BT could be asked to prepare initial surveys (137 sites were in London and the Home Counties, 55 in the Midlands, 51 in Wales and the West of England, 26 in the North West, 34 in the North East and 58 in Scotland). Oftel also selected a further 20 sites in Northern Ireland, based on operators priorities, giving a total 381 sites for Bow Wave 1.

Oftel has not published the details of the sites selected due to commercial confidentiality concerns raised by the operators.

Oftel was asked to determine a suitable space allocation method and after a consultation, published a revised procedure for space allocation on 27 November 2000. The original procedure was retained but operators were required to make bids in increments of 3 racks at each site. Any bid for more than 3 racks are only considered after all the initial bids for 3 racks have been allocated.

The second round of the Bow Wave was run on 7 December 2000 using this new allocation method. The 360 top sites were selected. Of these sites, 132 are in London, 67 in the Home Counties, 55 in the Midlands, 16 in Wales, 30 in the North West, 27 in the North East, 31 in Scotland and 2 in Northern Ireland.

Advancement of Bow Wave 2 sites

In January 2001 the first firm orders were due from operators to build co-location facilities at the first 25 sites from Bow wave 1 on the basis of BT's detailed designs and costings. However, orders were only received for 14 out of the 25 sites and at these sites only 1 or 2 operators wanted to proceed. As the co-location facilities were designed to accommodate all who had previously expressed interest, some of whom had already said they were withdrawing, the designs and costings for individual sites were no longer appropriate. Oftel and the industry therefore agreed to bring forward the sites from Bow Wave 2, which represent operators’ top priorities, in advance of Bow Wave 1 sites.

Pre-commitment

In addition, it was agreed that changes to the process should be made so that designs and costings can be tailored to those operators firmly committed to ordering co-location. BT has now offered operators the option of placing firm orders before a detailed design is available. This will ensure that build of such facilities proceeds immediately after detailed design is completed, provided that the cost per operator does not exceed £33,000. BT has received such commitments from operators at a number of exchanges. Oftel will announce the sites at which such facilities are being prepared as soon as build begins.


Annex D

Legal framework for LLU

A new condition (Condition 83) was inserted into BT’s licence in April 2000. Condition 83 came into effect on 8 August 2000.

Condition 83 sets out the co-location products BT must offer, the conditions which apply to the supply of these products and unbundled loops, how the prices will be set and how disputes can be resolved.

In September 2000, Oftel published guidelines on the application of condition 83. These can be found at:

http://www.oftel.gov.uk/publications/local_loop/llug0900.htm

The EC Regulation on Local Loop Unbundling

The EC Regulation on Local Loop Unbundling (EC/2887/2000) came into force on 2 January 2001. The Regulation requires incumbent operators throughout Europe to offer unbundled access to their local loops on reasonable request. Condition 83 sits alongside the Regulation and provides the detail, which may be needed to ensure that the Regulation can be applied effectively in the UK. The text of the Regulation can be found at:

http://europa.eu.int/eur-lex/en/lif/dat/2000/en_300R2887.html

As well as mandating local loop unbundling, the Regulation also requires the incumbents to offer shared access and sub-loop unbundling (described in Annex A). Both BT and Kingston have published reference offers, as required under the Regulation. The BT reference offer can be found at http://www.btinterconnect.com while the Kingston offer is at: http://www.kingston-comms.com/reg-unbundle.html.

ANF Agreement determination

In September 2000, Oftel was asked to investigate certain conditions in the Access Network Facilities (ANF) Agreement, the contract which operators need to sign to take LLU facilities. As a result of the investigation, Oftel published a draft determination on 23 November 2000 detailing the areas of disagreement and some preliminary views. On February 21st 2001, the final determination was published. The determination includes the following measures: operators will be able to trade space in exchanges with each other, BT will have to pay compensation to operators if service levels are not met, operators can refer disputes about LLU to an independent expert, and BT’s and operators’ liabilities were capped. The full text of the determination can be found at:

http://oftel.gov.uk/publications/local_loop/anf0201.htm

In response to the ANF agreement determination, BT published a revised reference offer. Oftel had concerns that the revised offer was not fully compliant with the determination. After discussions between BT and Oftel, BT has published a revised offer that Oftel is satisfied is compliant with the determination.


Annex E

Pricing of LLU

In May 2000, Oftel published a consultation document proposing prices for operators leasing unbundled loops. Access to Bandwidth: Indicative prices and pricing principles, can be found at: http://www.oftel.gov.uk/publications/local_loop/llu0500.htm

The key principles when setting prices are that the price of the loop will be cost oriented, the starting charges should be geographically averaged and that BT should be able to recover the costs associated with setting up co-location facilities.

On 29 December 2000, Oftel published the final wholesale prices to be applied. Oftel’s statement can be found at:

http://www.oftel.gov.uk/publications/pricing/llup1200.htm

Operators taking an unbundled loop from BT will pay £122 p.a. plus a connection charge of £88. Oftel has also set the charges for the internal tie cables that connect the loops in exchanges to operators’ equipment or to the external tie cables in the case of distant co-location. For every 100 lines, the rental charge will be £21 p.a. plus a connection charge of £863. The connection charge for distant location cables will be £674, to which a per-occasion charge of £142, required to cover the set-up and costs of jointing the distant location internal tie cables to the external one, has to be added. This charge is paid only once per order of distant location internal tie cables.

Oftel has not determined a price for co-location facilities within BT’s exchanges. This is because each exchange requires a custom design to accommodate the required number of operators in the co-location options they have chosen. The price for co-location is set by BT after a full design has been undertaken. Operators can ask Oftel to determine prices for co-location facilities if any costs are disputed.

As explained in the progress update, Oftel is conducting an investigation into the prices quoted by BT for co-location facilities. The aim of the investigation is to determine whether the cost elements that BT has included in the final estimate submitted to operators are reasonable and cost-oriented as required by the EC Regulation.

Oftel is currently consulting on prices for shared access to local loops. Please see section 5 of progress update.


Annex F

Statistics

General Information about LLU

Total number of MDF sites in the UK Approx. 5,600

Number of fixed lines in the UK Approx. 35,000,000

Number of ADSL connections Approx. 71,000

Number of LLU trial sites in the UK 4 – At Battersea, Leeds, Edinburgh and Belfast.

Number of initial surveys carried out for LLU co-location: Over 700

Physical Co-Location Sites in Build

Site name

Covent Garden (London)
Harrow (Middlesex)
Paddington (London)
Holborn (London)
Mayfair (London)
Shepherd's Bush (London)
Glasgow Douglas
Hunslet (West Yorks)
Pudsey (West Yorks)
Birmingham Central
Wimbledon (London)

Morley (West Yorks)
Reading Central (Berks)

Distant location sites in build

62 distant location sites are currently at the design stage. However the work on 58 of these has been suspended either on the request of the operator or because the operator has gone into liquidation.

The four sites currently going ahead are:

Readcliffe
Aston Cross
Warrington
Glasgow Central

Distant location sites completed

Site name Date completed
Altrincham (Cheshire) Mar-01
Ardwick (Manchester) Apr-01
Barking (London) June/July-01
Bury (Manchester) June/July-01
Canonbury (London) June/July-01
Cosham (Hampshire) Apr-01
Dagenham (London) June/July-01
Dartford (Kent) June/July-01
Eccles (Manchester) June/July-01
Euston (London) June/July-01
Fareham (Hampshire) June/July-01
Farnworth (Lancashire) June/July-01
Feltham (Middlesex) June/July-01
Gately (Manchester) June/July-01
Hampstead (London) June/July-01
Havant (Hampshire)
Apr-01
Heaton Moor (Cheshire) Apr-01
Hyde (Cheshire)
Mar-01
Isleworth (Middlesex) June/July-01
Leigh (Lancashire) June/July-01
Leytonstone (London) June/July-01
Lower Holloway (London) June/July-01
Maida Vale (London) June/July-01
Middleton (Manchester) June/July-01
New Cross (London) June/July-01
North Paddington (London) June/July-01
Orpington (Kent) June/July-01
Parsons Green (London) June/July-01
Perivale (London) June/July-01
Ponders End (London) June/July-01
Portsmouth Mar-01
Portsmouth North Mar-01
Sale (Manchester) June/July-01
Stratford (London) June/July-01
Stubbington (Hampshire) May-01
Titchfield (Hampshire) May-01
Urmston (Manchester) Apr-01
Uxbridge (Middlesex) June/July-01
Vauxhall (London) June/July-01
Wandsworth (London) June/July-01
Wembley (Middlesex) June/July-01

Sites in bold were completed in June/July


Annex G

Consumer questions and answers

1 How could I benefit from LLU?

LLU will enable you to have a high-speed data connection for internet or video on demand delivered through your telephone line. A number of operators are expected to offer these services. In addition, the option may exist for you to continue to use BT as your provider of telephony with the new operator providing high-speed services. LLU should bring more competition, which should help to cut prices.

2 What types of service will be offered using LLU?

The services offered will depend on the service provider. They may wish to offer voice calls but may also offer broadband services such as always on Internet access or video on demand.

3 Will I need a new phone line or equipment?

It should be possible to use your existing phone line for LLU services. An ADSL modem will need to be installed at the consumer’s premises to receive the higher bandwidth services and the operator will arrange this directly with the consumer once an order is placed.

4 Will my phone number change?

You can choose to keep your existing phone number. The initial charge may differ, depending on whether you keep your existing number or not.

5 Will I still have to pay BT line rental?

If you retain BT for your voice telephony services you will still pay the line rental and call charges to BT and pay the OLO for the broadband services. If you are taking all services from a new operator, you will be billed directly by the new operator.

6 How will taking LLU affect other services that I receive from my current provider?

If you take all of your service from your new provider, you will lose all services from your current provider and your contract with them will cease. If there are some supplementary services e.g. call waiting which you would not want to lose with your new provider, check with them first to find out if they are offering them. For more information, talk to the companies concerned.

7 What will it cost?

It depends on the provider. Before you sign any contract with a service provider they must tell you how much they charge, how often you will be billed and the methods of payment. Although Oftel has set the charges that BT must charge service providers for certain standard items, service providers will set the prices charged to customers. You will need to consider whether the service provider offers a good deal for your circumstances.

8 What if I change my address?

If you change your address and wish to keep LLU, you will need to contact your LLU service provider who will advise you what to do. It is possible that your service provider may not offer LLU in a different locality but in that event, other service providers may offer LLU there.

9 What if I have a fault?

Faults on your line should be reported to your service provider. Faults on telephony services provided by BT should be reported to BT.

10 Is it available in my area?

Oftel intends to name the sites at which LLU is provided when work at a site begins. We will not speculate beforehand on when LLU is likely to become available in a particular area. It is likely that operators will advertise in the local press or send literature directly to customers in the relevant areas once the service becomes available.

11 Will all customers connected to an exchange be able get LLU when the work is finished?

BT is making LLU available to other operators at all its exchanges. Subject to technical feasibility, all lines at an exchange are available to other operators for LLU purposes. Lines are suitable for LLU only if they are provided by a metallic (usually copper) path. Most lines are in this category. However, the service that can be delivered to a customer will be dependent on the technology that an operator is using and the distance from the exchange of the customer’s telephone line.

With DSL technology there is a trade off between data rate and the length of the telephone line. Longer lines mean a slower data rate and vice versa. As an example, the ADSL products offered by BT are available to customers whose telephone line is 3.5km or shorter and it is estimated that 80% of telephone lines in the UK fall into this category. However, LLU allows other operators to make their own decisions about the maximum line length that they can support.

The areas where LLU services are made available, the products offered and the technology used are all commercial decisions that are made by each individual operator.

12 Which companies will be providing services?

We are unable to provide a list of the companies interested in providing LLU services. It is likely that operators will advertise in the local press once service becomes available.


Annex H

Glossary

Access Network Facilities Agreement (ANF Agreement): The contract which operators need to sign to take LLU facilities

Access Network Frequency Plan (ANFP): A plan that defines the maximum levels of signal that can be injected into the Access Network. All equipment connected to the network must comply with the plan.

Asymmetric Digital Subscriber Line (ADSL): A technology that provides high-speed data on an asymmetric basis. Typically a copper line is used to send a large quantity of data (e.g. a television picture) in one direction and a small quantity (e.g. a control channel and a telephone call) in the other. Currently used for speeds of up to 2 Mb/s.

Bandwidth: The physical characteristic of a telecommunications system that indicates the speed at which information can be transferred. For ADSL, speeds of up to 2 Mb/s are offered, which are sufficient to transmit a video signal. Technologies such as VDSL offer the possibility of providing data rates of up to 15 Mb/s.

Bespoke arrangement: An arrangement made between the operator and BT to house its equipment in an exchange in a form other than a hostel. It will usually take the form of a custom designed room.

Bow wave: The industry designed Bow Wave process determined the order BT prepared exchanges in which competing operators wished to co-locate. It also set out the method for allocating space amongst operators in any exchange. The Bow Wave process has now been suspended.

Broadband: Most people connect to the Internet over a phone line, typically using a modem with a maximum speed of 28.8 or 56 kilobits per second. This "narrowband" communication requires users to wait while a dial up connection is made before they can access the Internet. Broadband services offer significantly faster data rates, enabling the delivery of services such as high speed Internet access and video on demand.

Co-location: The ability for other operators to install equipment in BT's local exchanges in order to supply services over the local loop. BT offers 2 options for co-locating within its exchanges (hostel or bespoke arrangement).

Digital Subscriber Line (DSL): A technology that allows the use of a copper line to send higher bandwidth services, such as fast internet and video) to a customer’s premises.

Distant co-location: This is where an operator houses its equipment away from the exchange and uses an external tie cable to connect the exchange with this remote site.

DSL technology: Digital subscriber line technology. A family of technologies generically referred to as DSL, or xDSL, capable of transforming ordinary phone lines (twisted copper pairs) into high speed digital lines, capable of supporting advanced services such as fast internet access and video on demand. ADSL (Asymmetrical Digital Subscriber Line), HDSL (High data rate Digital Subscriber line) and VDSL (Very high data rate Digital Subscriber Line) are all variants of xDSL.

Hand-over Distribution Frame (HDF): A distribution frame that connects to BT’s main distribution frame (MDF). An operator connects its DSL equipment to each pair via the HDF.

Hostel: A room that is built to a standard design to house a number of operators. The basic unit of capacity is the "equipment bay". The standard unit of space in a hostel is a 3 rack bay which has a footprint of 1.8m x 0.8m and a total area (including circulation space) of 10m². In addition to the standard hostel, a ‘mini’ hostel has been developed where fewer than four operators wish to co-locate at a particular site.

Line sharing (or shared access): An arrangement where two operators provide services over the same loop. One of the operators, generally BT, will be employing the lower frequency portion of the loop to provide voice telephony and the other will be using the higher frequencies to provide high-speed data services

Local loop: The access network connection between the customer’s premises and the local telephone exchange, usually a loop comprised of two copper wires.

Local loop unbundling (LLU): The process where the incumbent operator makes its local network (the connection between the customer’s premises and the local exchange) available to other companies. The customer is then able to choose another supplier other than the incumbent to provide service.

Main distribution frame (MDF): The apparatus in the local exchange building where the copper cables terminate and cross connection to other apparatus can be made by flexible jumpers.

Other Licensed Operators (OLO): Companies, other than BT, which operate telecommunications systems.

Service provider: Provider of telecommunication services, or services with a telecommunication service component, to third parties.

Splitter: A device which separates a local loop into two independent channels, one for voice and one for higher bandwidth, so that different services can be run on the loop without interference.

Sub loop unbundling: An arrangement that enables operators to interconnect with the local access network at the primary connection point, which is usually the green cabinet at the side of the road.

Tie Cable: A cable which interconnects the MDF and HDF. Where the operator’s equipment is sited within the BT exchange the cable will be internal. Where distant co-location is used, an external cable provided by either BT or the operator will be used.

Video on-demand: A programme or film sent independently to a customer in response to his individual request. This contrasts with broadcast television, where the signal is sent simultaneously to all customers.

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