Feeds

Oftel plans BT leased-line wholesale cuts

BT denies overcharging claim

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Telecoms regulator Oftel has tabled measures that would force BT to slash the price it charges rivals to provide leased lines using its network.

Under the proposals, connection charges for PPCs partial private circuits (PPCs), the key wholesale components of leased lines, will be typically reduced by 50 per cent, and rental charges by 30 per cent.

These savings will be backdated to 1 August 2001, when the products were first introduced by BT, following an earlier Oftel initiative.

The move is designed to bring down prices significantly for end users and operators by boosting competition in the leased lines market. Oftel is also seeking to revamp the quality regime for BT's wholesale broadband products by proposing improvements to BT's service level agreements, including forcing BT to pay compensation for late delivery of services.

David Edmonds, Director General of Telecommunications at Oftel, said: "The proposals are the result of a detailed investigation of the leased line market which found that BT's wholesale charges for leased line services are too high and that these prices should be reduced to reflect costs.

"Telecoms operators should pass on these significant price reductions to their business customers of leased lines services," he added.

Oftel has invited comments on its proposals, which must be received by 8 October. It expects to announce its decision on measures to introduce during November.

BT, which makes approximately £100m a year from its wholesale leased line business, disputes Oftel's preliminary findings.

A spokesman stated that BT believed its wholesale leased line prices are "lower than those available anywhere else in Europe".

BT said Oftel's proposals were not unexpected but still came as a disappointment to the telecomms giant. Some of Oftel's proposals are "unnecessary" and based upon incorrect analysis of its costs, the spokesman added. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.