LLU news from the UK

bealtine

http://www.theregister.co.uk/2004/12/16/llu_ofcom_review/

Ofcom orders BT price cuts for broadband rivals
By Tim Richardson
Published Thursday 16th December 2004 12:31 GMT

Communications regulator Ofcom has confirmed a new set of charges
today that will form the basis of local loop unbundling (LLU) in the
UK. Ending a seven-month consultation into LLU which has seen charges
for rival operators come down by as much as 70 per cent, it should
pave the way for other operators to invest and provide alternative
wholesale services direct to customers.

The new charges come into effect from January 1.

As well as bringing down price, BT has also been forced to address its
own cack-handed internal processes that make LLU so laborious and
time-consuming for rival operators.

Said BT Wholesale exec Paul Reynolds: "BT has worked productively with
the [LLU] Adjudicator and the industry to develop suitable processes.
Together with this package of price changes we believe the right
climate has been created to develop a market in which those who are
willing to innovate and invest can reap appropriate rewards."

Which is curious. Four years ago there were a number of companies
around prepared to invest in LLU. Except BT dragged its feet, argued
the toss for every square inch of ground and refused to budge on its
high charges and made life so hellishly difficult. Oftel, Ofcom's
predecessor, described the process as being like "trench warfare"
before conceding it was "a painful and often miserable process".

This year's price reductions have only come about because of
meaningful threats from the regulator.

And on Reynold's insistence that BT has "worked productively with the
[LLU] Adjudicator and the industry to develop suitable processes", the
'LLU Czar' said just three weeks ago: "Significant operational
problems remain". That's right, not minor, but "significant
operational problems remain".

Despite BT's tardiness, some operators are willing to invest in LLU.
EasyNet has just unveiled a wholesale unbundled service for telcos and ISPs, while Wanadoo UK has started ordering LLU lines from BT

eircomtribunal

From the Ofcom pages:


A: Old
B: Current
C: Final
% Change from A to C

Shared access
*
Connection
old: £117
current: £37.00
from 1. January: £34.86 equivalent to € 50.58 (What does ComReg propose in the consultation? Nothing yet. What is the current price?)
70%

Rental
old: £53
current: £27.12
from 1. January: £15.60 equivalent to € 1.89/month (here Comreg proposes something like € 0.39 )
71%

Fully unbundled
*
Connection (transfer)
old: £88
current: £88
from 1. January: £34.86 (Has Comreg fixed those charges already? No. What is the current price?)
60%

Connection (new provide)
old: £265
current: £223.33
from 1. January: £168.38 (Has Comreg fixed those charges already?Nothing done there. What is the current price?)
36%

Rental
old: £119
current: £105.09 equivalent to € 12.70/month
TBD (supposed to be determined in spring 2005) (ComReg has fixed these charges at € 14.65 +inflation for the next three years; will be interesting what Ofcom will come up with)
N/A

Of course the procedures of accessing the exchanges and the pricing of it, play an extremely important role, determining whether LLU will stay a Red Herring or the successful introduction of competition.

P.