BT agrees to give LLU chance to thrive
BT has signalled its commitment to making local loop unbundling (LLU) work in the UK by promising not to cut charges for its wholesale broadband products until there are 1.5m unbundled lines in the UK.
The move is designed to give local loop unbundling LLU - the process by which rival operators install their own kit in BT exchanges to provide telecoms services direct to end users - a fighting chance of becoming an established source of competition.
With around 60,000 unbundled lines in the UK at the moment, the proposal put forward by regulator Ofcom should give the UK's telecoms industry enough room to invest inLLU and to gain enough customers before facing competitive pressure from BT.
One of the concerns tabled by operators was their reluctance to invest in LLU if there were doubts about the viability of that financial commitment.
Key planks of the regulatory agreement thrashed out between Ofcom and BT outlined yesterday are increased competition and regulatory certainty for the industry.
In a statement BT said that it had "agreed to a request from Ofcom that the rental prices for IPStream and Datastream [it main wholesale ADSL products used by ISPs] will not fall until there are 1.5m unbundled lines in the UK.
"This move will provide LLU operators and service providers with greater certainty for their investment plans," it said.
The monster telco also said it will cut the rental price for a fully unbundled local loop from £105 a year to £80 from August 1. ®
BT bows to Ofcom pressure
BT escapes threat of immediate break-up
Ofcom's Telecoms Review 'sewn up by the big boys'
Ofcom update on Telecoms Review due tomorrow
Ofcom threatens BT - report
MPs 'unconvinced' about need to break-up BT
BT tells industry to 'get on with life'
Carve up BT, says Energis boss
MPs scrutinise telecoms review
BT has until June to resolve 'equal access' issues
BT gutted at Ofcom's 'prolonged misbehaviour' allegations
Energis calls for BT break-up
BT DSL price cut undermines LLU competition
BT promises to play fair, in Ofcom appeasement
BT clobbered in Ofcom probe
Rivals warn of BT 'delaying tactics'
BT faces 'bogeyman' if it fails to open market
BT warns of broadband divide ahead of Ofcom review
MPs to scrutinise Ofcom's telecoms review
Tough-talking Ofcom boss slaps BT
BT stands firm against Ofcom
BIG has a pop at BT dominance
BT faces life-changing three months
Stop picking on BT, says rival
Ofcom review 'misses golden opportunity'
Ofcom tells BT: shape up, or split up
Telecoms review? What telecoms review?
BT: Nation's broadband investment in Ofcom's hands
BT 'unlikely' to be broken up
Sponsored: Data Loss Prevention & Data Theft Prevention