Feeds

BT faces £400 million LLU compensation bill a year

That's a relief - could have been £142.5 billion

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

BT could be forced to pay rival telcos £400 million a year if it fails to meet agreed levels of service concerning local loop unbundling (LLU).

Details of compensation payments for operators involving loss of income or profit were published by Oftel today and form part of the framework for LLU.

Under the new rules, BT's liability will be capped at £500,000 per exchange to a maximum of £20 million per operator a year.

On the basis that there are some 20 operators still involved in LLU, this would cap BT's liability at £400 million a year.

In a submission to Oftel in December (Local Loop Unbundling - Proposed Determination Of The Terms Of An Access Network Facilities Agreement) BT warned that in the worst case it could face compensation claims £142.5 billion a year if its liability remained uncapped.

Of course, all this talk of compensation is academic because BT is a world class company that has the full backing of the E-minister and Minister for Textiles, Patricia Hewitt. She wouldn't offer her support if she thought BT was going to shaft its rivals.

And let's not forget Oftel. It's hawk-eyed servants are watching every move BT makes to ensure that it complies with its licence.

The five key points to today's determination are:

- if operators do not need all the space they order, they will be able to trade space in exchanges with each other, rather than returning it to BT
- BT will have to pay immediate compensation to operators if service levels are not met;
- operators will have the right to refer disputes about the provision of LLU to an independent expert under a new dispute resolution procedure. This is in addition to the right to refer major disputes to Oftel under BT's licence;
- operators and BT must agree levels of service to ensure that BT provides operators with reasonable service on a non- discriminatory basis;
- BT's and operators' liability for lost profits or income has been capped to ensure that claims are within reasonable limits.

In a statement, Oftel Head Boy, David "Harry Potter" Edmonds said: "Oftel's determination provides operators with added confidence to proceed with local loop unbundling in the knowledge that the terms and conditions within their contracts are fair."

He also crowed that "operators are now placing firm orders for unbundled loops." Which is true. What he didn't say was that they are only placing orders in four trial exchanges. An Oftel spokesman was unable to say how many orders had been placed. Hardly the stuff of legend, is it? ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.