Original URL: http://www.theregister.co.uk/2004/05/13/llu_bulldog/

Industry warms to BT's LLU price cuts

Room for further reductions, though

By Tim Richardson

Posted in Broadband, 13th May 2004 15:54 GMT

BT's decision to cut LLU costs has been - broadly speaking - welcomed by the industry.

Bulldog Communications - one of the few operators in the UK currently involved in local loop unbundling (LLU) - has applauded the cost reduction and BT’s apparent commitment to reduce costs further later this year.

However, Bulldog reckons that BT could do more and remains confident that there is still "scope for costs to fall further" following the completion of Ofcom’s LLU Market Review (announced today) which will attempt to bring UK costs into line with Europe.

Said Bulldog boss, Richard Greco: "Bulldog is delighted with this announcement by BT on the heels of the results of the first phase of Ofcom’s Strategic Telecommunications Review.

"We believe that the only way to ensure long-term value and choice for the British consumer is through competition. In a wholesale LLU-friendly environment, the UK will experience similar growth to our European neighbours, attract more investment in broadband technology, while giving UK consumers a much broader selection of innovative services, at more price points.”

Alternative telco, Thus, said it is "encouraged" by BT's decision to move on LLU before being forced to act by the regulator. Richard Sweet, the company's Head of Regulation, said: "We welcome Ofcom's first consultation document on its local loop unbundling market review.

"We look forward to reading the document in detail, but are encouraged by BT's announcement on further price reductions as Ofcom's commitment to addressing the thorny process issues, which contributed to the failure of LLU first time round. Ultimately this should lead to increased innovation, choice and value for consumers."

Wanadoo UK (formerly Freeserve) - which has already said it would be prepared to offer broadband and communications services direct to punters - is also upbeat about BT's plans to cut LLU costs.

"We welcome Ofcom's consultation on LLU and BT's announcement today that it will be reducing the cost of LLU by 70 per cent over the next few months, bringing it in line with European pricing.

"Cutting LLU costs will trigger a real broadband revolution in the UK by allowing Internet Service Providers to offer new, more flexible packages independent of BT's network," concluded the ISP. ®

Related stories

BT to slash LLU costs
Ofcom hails BT wholesale price cuts PCCW launches UK wireless broadband
London to get unbundled video-on-demand
BT mulls cutting LLU charges
Ofcom hints at LLU cost cuts
Freeserve committed to unbundling local loop
UK still LLU laggard - Oftel