Oftel turns the screw on BT leased line charges

UK carriers and ISPs wearily welcomed the move which should be good news for business users, and especially SMEs.

Nick Sharples, spokesman for Energis, said: "We're very happy, even after a year, to bring this to a determination."

Energis had led the original charge for the regulator to use its powers to curb BT's leased line charges, gaining a review last year. A draft directive was issued last December. Then, Oftel gave BT two months to come to agreements. As BT missed the deadline, Oftel has now issued a full directive.

Colin Scott, a member of ISP Thus' regulatory team, said: "My gut reaction is that it's been a long time coming. This will mean that we can offer our customers a greater range of less expensive products."

Last December, Claire Gilbert, chairman of the Internet Service Providers Association (Ispa), said: "We have been waiting for regulation for at least five years. It is vital for the ISP market to thrive."

UK telcos had to buy much of their 'last mile' of connection to the customer at retail rates. Now they will be able to link to their own networks at lower cost. Most leased line users are SMEs.

A BT spokesman said that the company was disappointed and that the market was competitive enough that the matter did not require a directive. He said: "We will be working with other operators to implement the products we've been directed to produce."

BT now has two months to agree terms with the 10 operators.