Oftel turns its attention to BT's local loop dominance

Oftel is to take its first steps towards addressing BT's near monopoly of the local loop in the UK. The telecoms regulator is due to release a report at the end of this week outlining the complexity of the issues involved.

BT currently owns the majority of the UK's fixed-line local loop, also known as the last mile. As a result competition for local call charges comes in the shape of cable or wireless local loop companies - which have yet to cover all areas. Oftel said European policy and the emergence of high-speed Internet access means this issue now needs to be addressed.

The report is expected to examine a variety of possible solutions, including renting out the local loop to other companies or even making BT sell off parts. However, it also questions Oftel's role in the setting regulation - should it stand in the court of the consumer or the producer?

At the Financial Times World Telecoms conference this week, Oftel's director general, David Edmonds, concluded there is no clear answer.

He said: "This is a complex issue and the debate has only really just begun. Oftel has started to try to develop the framework within which sensible, and coherent, answers can be developed. Our thinking needs development. Help from those knowledgeable in the industry is essential."