These savings will be backdated to 1st August 2001, when the
products were first introduced by BT, following an earlier Oftel
initiative.
Leased lines are permanently connected communications links
between two or more sites. Today's decision relates to partial
private circuits (PPCs), the key wholesale components of leased
lines, which enable other operators to use BT's network to deliver
services to their own customers.
Under the proposals, connection charges for PPCs will be reduced
typically by 50%, and rental charges by 30%. Oftel also proposes
improvements to BT's service level agreements for the provision of
PPCs, including proposals that BT should pay compensation for late
delivery.
David Edmonds, Director General of Telecommunications said
today:
"The proposals are the result of a detailed
investigation of the leased line market which found that BT's
wholesale charges for leased line services are too high and that
these prices should be reduced to reflect costs.
"Telecoms operators should pass on these
significant price reductions to their business customers of leased
lines services."
Oftel has invited comments on its proposals which must be
received by 8th October. It expects to announce a decision in
November, having considered all responses.
