Oftel sets out plan for allocating space in local exchanges

Oftel wants the procedure to set the order in which BT will prepare exchanges and determine the order in which space will be allocated where there is insufficient space for all competing operators to install equipment.

Oftel proposes to use a method where space is allocated according to the priority that an operator has given individual exchanges for installing equipment.

Oftel said in a statement that:

“The process will be necessary in the initial phase when high demand from operators for space in BT's exchanges is expected. Once this demand has been met, operators will put their orders to co-locate direct to BT for processing.”

Operators need to install DSL equipment in BT's exchanges to deliver new high speed services to consumers over unbundled local loops in competition with BT.

Commenting on the proposals, David Edmonds, Director General of Telecommunications said:

"Oftel will push BT hard if they claim there is insufficient space in an exchange for operators equipment. But if a large number of operators want to go into one exchange, there may not be enough room for them all. In the first round of bidding in September, over 25 operators requested space to install equipment in some exchanges. "An allocation procedure is needed to decide the order of priority for operators that want to go into exchanges where there could be insufficient space for them all. The operators wanted to resolve this issue amongst themselves, but could not reach an agreement and asked Oftel to draw up an allocation process.

"Oftel has moved swiftly to draw up an allocation process so that operators can install equipment in the most popular of BT's exchanges as soon as possible."

David Edmonds said that the process could be quickly implemented so that consumers will benefit from a choice of providers for new high speed services.

"Oftel will use an inspection team to independently verify any claim from BT that there is insufficient space in an exchange. The new agreed procedure will be used in December to choose the next batch of exchanges where operators can install equipment. The high level of competition in the UK market has created practical implementation problems not faced in other countries. We are well on the way to solving this problem and the UK is on course for delivery of unbundled local loops from the beginning of 2001."

However, Oftel predicts that fewer than 1,000 of BT’s 6,000 local exchanges will be open to its competitors by July 2001, the deadline it set BT for local loop unbundling. FT.com reports Oftel as calling this figure consistent with e-commerce minister Patricia Hewitt’s recent comment that the unbundling would mean “widespread availability” from BT’s competitors by the deadline.