Telecoms watchdog Oftel on Friday ordered BT to cut its charges for some of the facilities needed by local loop unbundling operators to provide broadband services to customers. The changes are the result of an Oftel investigation which found that some of BT's charges for the services were too high.

According to Oftel's order, BT must:

  • cut its charge for providing line information from £5.30 to £2.60 per line; and
  • halve the premium it charges for escorted access to exchanges, where this is necessary and visits have not been arranged in advance.

Oftel also believes that BT should cut its connection and rental charges for external tie cables, which link operators' equipment with BT's local exchanges.

The action by Oftel could be seen as too little too late. There are few operators still interested in the opportunities of local loop unbundling.

The watchdog's stated aim is to promote the roll-out of broadband services through the creation of competitive broadband markets. Broadband services can be delivered by operators installing equipment in BT's exchanges and using unbundled local loops – but few operators are still participating in this market.

Other means of delivering broadband services include service providers using BT's wholesale broadband service, and under a recent proposed ruling from Oftel, by interconnecting their broadband networks with BT's network. Broadband services are also available over cable networks using cable modems, broadband fixed wireless access networks and satellite.

David Edmonds, Director General of Telecommunications, said:

"Following an investigation, Oftel has ordered BT make changes to the way it charges for a number of services it provides to operators installing equipment in BT's exchanges. This will lead to lower charges, reducing costs for operators and giving them greater confidence to plan the rollout of their high speed services."

More information on Oftel's order regarding BT's charges is available from Oftel's site.

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