Unbundling still stuck in the broadband mire

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
BT still faces little serious rivalry in the wholesale ADSL market, despite repeated claims that the UK's broadband market is competitive. In its latest Internet and Broadband brief, published on Thursday, Oftel has reported that a mere 4,600 telephone lines have been handed over to rival telcos through local-loop unbundling (LLU). LLU was supposed to open up Europe's telecoms markets and break the dominance of the incumbent operators. It offers other companies the opportunity to take over customers' phone lines and offer their own services, rather than just reselling the products of the incumbent. Oftel's report shows that the wholesale broadband market is dominated by just three providers -- BT, NTL and Telewest. The two cable firms have over a million broadband customers, if users of NTL's controversial 150Kbps service are included -- slightly more than BT which hit the million mark this week. The government points to the cable companies as proof that the British broadband market is competitive. However, NTL and Telewest's networks only cover 45 percent of UK homes and businesses, which is why LLU is so important. But with just 4,600 lines unbundled, it is clear that BT is maintaining an iron grip on the wholesale ADSL market -- a situation which Oftel appears to be perfectly happy with. "It's up to the market to decide how it wants to deliver broadband," an Oftel spokeswoman told ZDNet UK News, citing the boom in DSL take-up as evidence that Broadband Britain is in good health. "We're happy with the market as it is." The main obstacle facing LLU is the large cost of acquiring the necessary space and installing equipment in a BT telephone exchange. Operators that have embraced LLU include Easynet and Bulldog. Bulldog uses LLU to offer a 4Mbps broadband service from certain local exchanges in London. In its last annual report, Easynet said that it had unbundled 81 exchanges by the end of 2002, and was aiming to unbundled another 75 this year. BT is understood to have spent millions making LLU possible, and has seen scant return on this investment. "We've been open for business for nigh on three years -- we can't force people to go for it. Maybe some organisations should have a look at the likes of Easynet. They, for example, they seem to be thriving with LLU," a BT spokesman said. "Everybody is still welcome," he added. At one stage, over 30 companies had expressed an interest in LLU. The crash in the telecoms sector made it much harder to find investment, but many operators accused BT of deliberately dragging its feet in an attempt to maintain its dominance -- a charge the company denied.
See the Broadband News Section for the latest on cable modems, ADSL, satellite and other high-speed access technologies, including a comprehensive guide to the best deals out there. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

BrownieBoy

@Jack, > Works really well for thieves.... Nice attempt to deflect the argument by tossing in a point that's totally irrelevant, even it were...

9 hours ago by BrownieBoy on AMD Ultrathins to challenge Intel Ultrabooks
bootlegger

Make that 13 people now - I got refused today at Manchester airport. I thought I was up to date on this legislation - I knew of the EU ruling from...

12 hours ago by bootlegger on UK airport body scans will not be opt out
tinycg

Don't forget to check out apps like GoodReader or SlideShark either, they're indispensible for people on the go in presentation situations. Best...

14 hours ago by tinycg on Four top iPad apps for people on the move
TerryRK

Well it seems there is something a number of us agree on. Why is the Ubuntu Unity launcher so ugly? I thought perhaps it was something to do with...

19 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

1 day ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

2 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

2 days ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

2 days ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

2 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

2 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

2 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

2 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

2 days ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

2 days ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

2 days ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

2 days ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

2 days ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

2 days ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint