Broadband update

Two recent Oftel decisions continue to support competition in the market for broadband.

Oftel believes that increased takeup of broadband will be delivered by a competitive broadband market with a wide choice of products and prices.

ADSL interconnection

Oftel has confirmed that BT will be required to offer ADSL broadband interconnection to enable operators to connect to BT's network.

Currently, operators that want to offer broadband DSL services must either use BT's wholesale broadband products or install their own DSL equipment in BT's local exchanges to use unbundled local loops.

Interconnection, requested by operators Energis and Thus, offers another route for competing operators to provide broadband services to business and residential consumers, along with leased lines, BT's wholesale DSL products, cable modems and unbundled local loops.

Oftel's Direction also requires BT to trial interconnection products based on Symmetric Digital Subscriber Line (SDSL) technology in consultation with the operators.

Operators should be able to launch ADSL services using the interconnection option by the end of this year.

PPCs

Oftel has also directed BT to make a number of improvements to its wholesale leased line products which it expects will encourage greater takeup by copmeting operators.

The Direction relates to partial private circuits (PPCs) the wholesale components of leased lines which enable other operators to use BT's network to deliver end-to-end leased lines to their own customers.

Leased lines are permanently connected communications links between two or more sites.

Oftel strongly believes that access to wholesale PPCs, at cost oriented prices and on non discriminatory terms, will boost competition in the leased lines market, enabling operators to reduce their costs significantly which in turn can result in significant savings for their customers.

Until Oftel's decision, operators' concerns about terms and conditions and technical specifications meant operators did not transfer all eligible retail leased lines to PPCs.

Oftel will shortly publish a draft Direction on outstanding issues relating to PPCs, including pricing and service level agreements.

For further information contact John Russell (tel: 020 7634 8830 / e-mail john.russell@oftel.gov.uk).