According to a report by FT.com, the UK government is
considering giving new powers to Oftel, the telecoms watchdog, in
response to frustration over its timid handling of BT in recent
months, particularly in connection with the opening of competition
to high-speed internet access.
The physical copper wire circuit between a customers’ premises
and the telecom company’s local exchange in the local access
network is known as the local loop. The local access network is one
of the least competitive segments of the telecoms market in Europe.
Providing unbundled local loops will increase competition in the
local access network, making high speed internet access more widely
available.
The government recently stated publicly that it welcomed a new
proposed European regulation on unbundling access to the local
loop. Telecoms minister Patricia Hewitt said on 3rd October, “"Far
from dragging its feet, the UK has been accelerating local loop
unbundling. We will be fully compliant with the regulation, and we
fully support it." However, Oftel has said that BT has until July
next year to unbundle access to its local loop; while the proposed
regulation states:
“Notified operators shall make available to
third parties, by 31 December 2000 at the latest, unbundled access
to the local loop, under transparent, fair and non-discriminatory
conditions.”
This is clearly at odds with Oftel’s proposed timetable and,
unless the government acts soon, it will be at odds with Patricia
Hewitt’s statement of compliance. The proposed regulation also
gives Oftel the authority to resolve disputes between BT and
aggrieved competitors. FT.com suggests that the government is less
enthusiastic with Oftel’s attempts to accelerate unbundling than it
has suggested. There is a risk that if Oftel does not act, it will
itself face legal challenges.
