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Ofcom proposes BT changes to improve LLU broadband wholesale service

Ofcom today published its annual report on the progress of BT’s wholesale Openreach division used by providers such as Sky and Carphone Warehouse.

The report tracks BT’s compliance of undertakings agreed with Ofcom 2005 which meant that BT had to open up more of its network to rivals.  This lead to the creation of the independent Openreach division in early 2006 and allowed competitors to control more of the network through the LLU (Local Loop Unbundling) process.  ADSL2 provider BE and Carphone Warehouse were early adopters.

The process had some teething problems early on in the unbundling process and received many complaints from other providers.  However, once exchanges were unbundled by providers, they were able to offer a much cheaper service to consumers due to lower wholesale costs, and allowed consumers a range of providers to choose from.  Over the last six months there have been improvements in the speed of unbunding and this has lead to a rapid growth in the number of unbundled lines.

The Ofcom report’s main focus appears to be to make it easier to reconnect and provide telephone lines and switch consumers between providers.  Ofcom also wants Openreach to deliver fit-for-purpose wholesale products according to industry requirements.

See the full report at http://ofcom.org.uk/telecoms/btundertakings/tsr_statement/