Oftel probes beyond the loop

Oftel has forced another concession from BT in the battle to make competitive broadband internet a viable business.

BT is currently obliged to allow rival broadband companies to site their DSL equipment in its local exchanges and offer customers broadband internet through its copper wires in a process known as local loop unbundling (LLU).

Until recently, Oftel regulations took care of connections between the customer's premises and the local exchange, BT had no obligation to provide its rivals with connection from the exchange to their own backbone networks - a service known as LLU backhaul.

A new draft resolution will oblige BT to make LLU backhaul available to rival operators.

Any further rights to demand services from BT will be welcomed by the LLU operators, who are having an extremely tough time making money.

Only two companies, Easynet and Bulldog Communications, are still taking part in LLU, with a third operator, accessUK, set to start in the New Year.

Easynet said in a statement that the company "especially welcomes that Oftel have taken their own initiative to investigate fully the market for backhaul and its effect on the economics of DSL provisioning.

"Backhaul for Easynet's own LLU plans makes up a significant part of our operating costs, and as such any intervention by Oftel to reduce our cost base is welcome."