DTI and Oftel defiant of proposed regulation on local loop

However, the DTI is claiming that the law will only require that member states implement a regulatory framework for unbundling by January 2001 and that the actual unbundling will not need to take place by that date. This interpretation of the proposed regulation, shared by Oftel, is already being questioned, although it might already be too late to bring the process forward. If the interpretation is unfounded, aggrieved competitors of BT might consider legal action.

E-Minister Patricia Hewitt yesterday welcomed agreement at the Telecoms Council on the European Commission's proposed regulation on unbundled access to the local loop. Speaking in Luxembourg, Ms Hewitt said:

"Far from dragging its feet, the UK has been accelerating local loop unbundling. We will be fully compliant with the regulation, and we fully support it.

"In the UK, the legal framework for unbundling was put in place in August. BT's reference offer, setting out the terms and conditions on which access will be granted, was published in August. Twenty-eight operators have already submitted orders for siting their equipment in BT local exchanges.

"This sets in motion the process for unbundling the first local loops. Local loop unbundling will help deliver more competition, more choice and lower prices. We will continue to back OFTEL in taking the tough decisions needed to deliver it.”

Local loop unbundling will mean that BT and its equivalent telecom companies across Europe will open access to local telephone exchanges to competitors. It is seen as a crucial step in the development of widely available, competitively priced broadband internet access. Finland, Denmark and Germany have begun unbundling their local loops.