Oftel seeks to boost business broadband take-up

By Alun Williams

Posted on 14 Jun 2002 at 18:13

The regulator Oftel is trying to encourage greater competition and lower prices in the provision of high speed, 'always on' leased lines for business customers.

Under the terms of a Direction issued today, BT will be required to improve its wholesale leased line products to promote greater take up of the products by third party operators.

'Leased lines are an important way of providing businesses with dedicated high speed communications services, including broadband Internet access,' said David Edmonds, Director General of Telecommunications in an official statement. 'This decision is an important part of Oftel's work to further boost the development of broadband in the business market.'

The Direction relates to disputes between BT and operators - such as GTS, Fibernet, Global Crossing, NeosCorp, Thus and WorldCom ("G6" Operators), Energis and Colt - in relation to the provision of Partial Private Circuits (PPCs), which were first launched on 1 August 2001.

The concept of Partial Private Circuits - sold through BT Wholesale - involves BT managing a communications circuit between a third party operator and an end-user. It is a partial circuit in that BT has to help manage the PPC circuit across its own network.

The goal of Oftel is to better allow operators to compete with BT in the leased lines market, thereby reducing costs faced by end-users. Whereas prices for consumer broadband services - which go through the local loop - have been falling, prices for businesses - which will take advantage of their very own leased lines - have not seen similar reductions.