BT "jumps the gun" maybe

BT mulls cutting LLU charges
By Tim Richardson
Published Friday 30th April 2004 14:38 GMT

BT could be ready to cut charges that give rival operators access to
its local network.

The FT reports that BT is planning to pre-empt any move by the
regulator to force it to cut fees related to local loop unbundling
(LLU).

LLU gives rival operators access to BT exchanges to provide telecoms
services direct to homes and businesses. Compared to some European
countries, rivals argue that the fees charged by BT are just to high.

So far, only around 11,000 phone lines have been unbundled in the UK
led by companies such as EasyNet and Bulldog.

On Wednesday, though, Ofcom gave the biggest hint yet that it wants to
see LLU fees "aligned" with other European countries in a bid to
increase competition in the UK telco market. The regulator is due to
publish a review of LLU on 10 May.

Said Ofcom boss, Stephen Carter, on Wednesday: "Ofcom cannot, of
course, pre-empt what pricing decisions will flow from the review. But
it would be surprising if at the end of the process, UK prices were
not aligned much more closely with European best practice, where price
reductions and growing user volumes form a virtuous circle."

Wanadoo UK (formerly Le Freeswerve) has made it known that should the
cost of LLU fall in the UK then it would be prepared to invest in
rolling out new telecoms products.

Commenting on the FT report a spokesman for BT told The Register: "We
are considering LLU prices and we have been for a while. If people
want lower spec products as in Europe, then we can look into that." ®
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