Local loop unbundling update

In June Oftel announced a package of measures to support the development of local loop unbundling (LLU) by giving operators a clear idea of costs and of arrangements for provisioning unbundled local loops.

Co-mingling
Oftel issued a draft direction requiring BT to meet all reasonable requests from operators for co-mingling (where operators' equipment can installed in any operational part of a BT exchange), following an own initiative investigation.

Site clearance
Oftel stated that site clearance costs (some of the costs incurred in preparing a site ready for operators to go in and start building work) should not be charged separately to operators, but should be paid by BT, and published a draft direction to this effect.

Co-location guidelines
An updated version of the guidelines set out in detail the co-location facilities, including space, that BT is obliged to provide and specified how BT should assess the availability of these facilities for other operators' use.

Pricing for shared access
Oftel proposed an annual rental of £68 and connection charge of £127 per shared loop for shared access, which enables operators to concentrate their business on the provision of high speed services to consumers without providing a voice calls service.

Further developments

Since the last report on LLU in Oftel News 51, the Bow Wave process (a method of allocating space within BT's exchanges according to operators' priorities) has been suspended as BT now has sufficient capacity to deal with orders placed for physical and distant location.

From April 2001, operators have been able to place orders on a business as usual basis, which means that operators can place orders at any BT exchange at any time they wish. This process is similar to the way that orders are placed for wholesale products such as interconnection.

Latest figures

Over 100 lines have now been connected at the four trial sites at Battersea, Belfast, Edinburgh and Leeds, which has enabled detailed procedures for provision and fault testing to be trialled. The sites at Battersea, Edinburgh and Leeds have physical co-location facilities within BT's exchanges while distant location has been provided at Belfast and Leeds.

Work has started at 13 sites where operators wish to place their equipment within BT local exchanges. In addition, 41 distant location sites (where operators site their equipment near to a BT exchange) have now been completed.

Latest figures are published in Oftel's LLU fact sheet which is updated on a monthly basis.

Further work

Following two separate Oftel investigations into the charges made by BT for physical co-location and for distant location, BT has reduced its charges for distant location facilities and has also reduced the charge for escorted access for operators' staff in BT's exchanges.

In addition, Oftel has opened a new investigation to consider whether the design and implementation of the 'hostel' product (a standardised solution for housing operators' equipment in any BT exchange) is cost effective.

Oftel received a further complaint regarding BT's refusal to share duct space (the underground pipes in the street where BT runs its own cables) with operators in the provision of distant location services. The investigation was closed after Oftel concluded that there would be serious network integrity concerns for BT if it were obliged to provide duct sharing products.

Oftel has completed its investigation into alleged undue discrimination between LLU and BT's ADSL rollout. Although no clear evidence of a breach of the Competition Act was found, Oftel has identified a number of requirements for BT to take forward in order to demonstrate non-discrimination.

Service level agreements

At the time of going to press, Oftel wasis intending to publish a draft determination setting out BT's service level commitments to LLU operators and the compensation BT must pay to operators if these are not met. Oftel drew up detailed timetables and arrangements for compensation following a request from operators.

For further information contact Elizabeth Wilks-Wood (tel: 020 7634 8922/e-mail: elizabeth.wilks-wood@oftel.gov.uk).