Out-Law / Your Daily Need-To-Know

Oftel has today published a document setting out the terms and conditions of contracts to be entered into between BT and rival operators for local loop unbundling. The telecoms watchdog describes the document as a key element in providing a clear framework for the process that should make broadband internet access cheaper and more widely available.

The document sets out the terms and conditions under which BT supplies unbundled local loops and includes the following measures:

  • If operators do not need all the space they order, they will be able to trade space in exchanges with each other, rather than returning it to BT;
  • BT will have to pay immediate compensation to operators if service levels are not met;
  • Operators will have the right to refer disputes about the provision of unbundling to an independent expert under a new dispute resolution procedure. This is in addition to the right to refer major disputes to Oftel under BT's licence;
  • Operators and BT must agree levels of service (by 30th April) to ensure that BT provides operators with reasonable service on a non-discriminatory basis; and
  • BT's and operators' liability for lost profits or income has been capped to ensure that claims are within reasonable limits.

David Edmonds, Director General of Telecommunications said today:

"Operators and BT agreed many of the conditions within the contract themselves, but where they were unable to agree I have stepped in to set the terms and conditions."

The full document is available from Oftel's website

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