Local loop unbundling is currently being implemented in the UK. The unbundling enables competing telecoms operators to lease the local loops of the fixed line incumbents (BT and Kingston Communications) and install equipment at their exchange sites. By upgrading these lines using DSL (digital subscriber line) technologies, the plan is that operators can deliver higher-bandwidth data services directly to end users thus increasing competition. In addition, BT and Kingston are rolling out their own ADSL wholesale services which they must provide on non-discriminatory terms to all.
Under proposals published yesterday on shared access, telecom operators will be given the option of providing voice calls and higher bandwidth services (such as fast internet access, video on demand or high-speed data transfer) or higher bandwidth services only over unbundled loops. The aim is to let consumers choose to buy higher bandwidth services from a competing operator while retaining their existing voice service with BT or Kingston Communications.
Oftel's proposals are aiming to promote effective competition, leading to better service quality or lower prices. Oftel has also separately approved technical guidelines on the types of equipment that operators can use to provide a range of services to consumers and businesses over unbundled local loops.
David Edmonds, Director General of Telecommunications, said:
"Allowing two operators to provide different services over one telephone line means customers can choose to keep their existing company for voice calls and buy high-speed services from a competitor. Shared access will also make it easier for competitors to enter the market, as it allows companies to offer DSL services without voice telephony.
"This will increase choice for consumers, and is why Oftel has welcomed the inclusion of shared access in the European Commission's proposed regulation on local loop unbundling.”
Oftel seeks comments from consumers, the industry and other interested parties on its proposals on shared access by 21st November 2000.