News on 21 December 2000
Oftel has announced a boost for operators competing with BT in the national leased lines market. The regulator expects the move to lead to reduced prices.
Under a draft direction published yesterday, BT will be
required to offer wholesale leased line services to other operators, giving
them greater opportunity to compete with BT.
Leased lines are permanently connected communications links used by business
and other operators to provide 'always on' telecommunications services.
BT will have to provide specified wholesale leased line services to other
operators on a non-discriminatory basis; and conclude negotiations on
prices and other terms and conditions with operators within two months
of the final direction.
David Edmonds, Director General of Telecommunications said: "Greater
competition in wholesale leased lines is vital to ensure lower retail
prices. Operators must be able to compete on an equal footing with BT.
Oftel does not rule out further regulatory action including imposing price
controls on wholesale leased lines. This will depend on further analysis
of the level of competition in the leased lines market and the results
of negotiations between BT and operators under the direction.
www.oftel.gov.uk/competition/nll1200.htm
