Leased lines are permanently connected communications links
between two or more sites. Partial private circuits (PPCs) are the
key wholesale components of leased lines, which enable other
operators to use BT's network to deliver services to their own
customers.
Under today’s Oftel direction, BT will be required to make a
number of improvements to its wholesale leased line products to
promote greater take up of the products by other operators.
In response to an Oftel determination BT began offering PPCs in
August 2001. Until then, operators had to use a more expensive
retail leased line product. Access to these wholesale products has
boosted competition in the leased lines market, enabling operators
to reduce their costs significantly which in turn can result in
significant savings for their customers.
However, operators' concerns about the terms and conditions
under which PPCs are being offered, and the lack of appropriate
interconnection products mean that operators have not transferred
all eligible retail leased lines to PPCs.
Oftel's direction sets out specific solutions and timescales for
BT to address operators' concerns.
David Edmonds, Director General of Telecommunications said
today:
"Leased lines are an important way of
providing businesses with dedicated high speed communications
services, including broadband Internet access. PPCs allow operators
to compete with BT in the leased lines market, giving them the real
potential to reduce their costs significantly - and therefore to
reduce prices to end users.
"At the moment many operators' circuits have
not been transferred to the wholesale products. I want to see a far
greater take up to ensure that consumers see the full benefits of
competition in the leased lines market."