Oftel Publishes Principles for Pricing Unbundled Local Loop Access in UK

Strategic Insights -

Following almost two years of disputes between British Telecom and third-party carriers, the UK telecoms regulator Oftel has published the charging principles for unbundled local loop access. According to the report, "Access to Bandwidth: Conclusions on Charging Principles and Further Indicative Charges," Oftel has laid down the principles for charging on local loop, internal tie cables, and co-location facilities. The regulator expects BT to follow these principles when charging co-locating operators and will consider them when resolving any disputes between BT and co-locating operators.

Key Takeaways:

  • Oftel has published charging principles for unbundled local loop access, internal tie cables, and co-location facilities in the UK.
  • The regulator expects BT to follow these principles when charging co-locating operators and will consider them when resolving any disputes between BT and co-locating operators.
  • BT has proposed an annual rental charge to other operators for local loop access at 107 pounds ($165) in most cases, which third-party carriers have said is still too high.
  • Oftel compared the plans for UK local loop unbundling with those seen in other European countries, including Austria, Denmark, Germany, the Netherlands, and Italy.
  • The charging principles outlined in the report aim to encourage competition in DSL services while preserving the incentive for investment in alternative networks.
  • Oftel's operations director, Anne Lambert, stated that the final wholesale prices to operators should be set at a level that will promote competition and investment in new networks.
  • BT remains unfazed by Oftel's plans for a directive and has already published a reference offer for local loop unbundling and will start accepting orders for co-location from operators on September 1.

Statistics:

  • BT has proposed an annual rental charge of 107 pounds ($165) for local loop access in most cases.
  • Oftel intends to set the final wholesale prices to operators at a level that will encourage competition in DSL services.
  • The regulator expects BT to provide unbundled loops in more limited numbers from December 31, 2000, while maintaining the focus on volume delivery by mid-2001.
  • Oftel has compared the plans for UK local loop unbundling with those seen in other European countries, including Austria, Denmark, Germany, the Netherlands, and Italy.

Sources:

  • Report: "Access to Bandwidth: Conclusions on Charging Principles and Further Indicative Charges" by Oftel (no date mentioned)
  • Oftel Web site: http://www.oftel.gov.uk
  • Newsbytes.com: "Oftel Publishes Principles for Pricing Unbundled Local Loop Access in UK" (no date mentioned)