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BT obliged to provide ‘virtual’ access to superfast fibre-optic network

The European Commission has approved proposals from the UK telecoms regulator, Ofcom, to oblige BT to provide ‘virtual’ access to its new superfast fibre-optic broadband network to other operators.

BT currently provides access to the copper-based local loop to competitors (known as LLU), which is utilised by companies such as Talk Talk and Sky. The new proposal will allow operators to do similar thing with its fibre network, but only in a virtual fashion and not physically (like its copper-based LLU network).  This will be done through a virtual unbundled local access product, or VULA.  This provides some of the features of physical unbundling.  It will enable other operators to have a reasonable amount of control over user connections and the equipment involved.

VULA however, will not allow other operators to be as competitive as they could be if they had full unbundled access.  The Commission warned that VULA is not a long term solution, but merely part of a transition to complete physical unbundling.

“In this specific instance, virtual unbundling seems the best option to safeguard competition and enable consumers to benefit from a wider range of services provided over next generation fibre infrastructure,” said Neelie Kroes, Digital Agenda Commissioner.  “However, this interim solution is not a long term alternative to physical fibre unbundling, which should be imposed as soon as possible,” she added.

So, what does it mean for the end user?  If it works, the end user should be able to choose a superfast fibre-optic broadband service from a range of operators at a competitive price.  The Commission has stated prices for the VULA product should be ‘cost-oriented’, but they should be adjustable to ensure there is both competition and investment in Next-Generation Access networks.