Leased lines are permanently connected communications links between two or more sites. Partial private circuits (PPCs) are the key wholesale components of leased lines, which enable other operators to use BT's network to deliver services to their own customers.
Under today’s Oftel direction, BT will be required to make a number of improvements to its wholesale leased line products to promote greater take up of the products by other operators.
In response to an Oftel determination BT began offering PPCs in August 2001. Until then, operators had to use a more expensive retail leased line product. Access to these wholesale products has boosted competition in the leased lines market, enabling operators to reduce their costs significantly which in turn can result in significant savings for their customers.
However, operators' concerns about the terms and conditions under which PPCs are being offered, and the lack of appropriate interconnection products mean that operators have not transferred all eligible retail leased lines to PPCs.
Oftel's direction sets out specific solutions and timescales for BT to address operators' concerns.
David Edmonds, Director General of Telecommunications said today:
"Leased lines are an important way of providing businesses with dedicated high speed communications services, including broadband Internet access. PPCs allow operators to compete with BT in the leased lines market, giving them the real potential to reduce their costs significantly - and therefore to reduce prices to end users.
"At the moment many operators' circuits have not been transferred to the wholesale products. I want to see a far greater take up to ensure that consumers see the full benefits of competition in the leased lines market."