BT comes under pressure from Oftel

British Telecom (BT) has come under pressure from telecommunications regulator Oftel to improve access to its lines for rival operators.

Oftel has intervened to determine the service levels that BT must offer to other operators wanting to unbundle BT local loops and the compensation the company must pay if it fails to meet those levels.

In May this year, operators complained that although Oftel had earlier determined that BT must offer an agreement specifying levels of service, their offer had been inadequate.

Oftel has since decided that much of the complaint was justified and that BT’s offer did not meet the requirements of Oftel's earlier Determination. As a result, Oftel has proposed a significant redraft of the contract between BT and the operators.

It is the first time that the telecoms regulator has formally intervened to set service level standards.

David Edmonds, Director General of Telecommunications, said: "In February Oftel ordered BT to provide operators guaranteed levels of service for the provision of local loop unbundling (LLU). After negotiations between BT and operators, it is clear that Oftel intervention is required to ensure that BT offers satisfactory service level agreements.

"LLU is a complex and detailed process. It is the role of the regulator to ensure that, even at this level of detail, unwarranted barriers to competition are removed. The revised contract I am proposing is designed to achieve this.

"The service level commitment will ensure that BT delivers a reasonable service to operators ordering unbundled local loops. Consumers will benefit because operators can now guarantee timescales for delivery of service and fault repair.

"Where BT does not fulfil these commitments, it will be required to pay a level of compensation determined by Oftel which reflects the revenue lost by operators.

"BT will also have to compensate operators for their extra costs if it does not have an automated system for ordering local loops in place by its planned date of November 5."

Oftel proposes to implement these new safeguards by requiring BT to amend the access network facilities agreement, which is the contract they have with operators to provide the services necessary for local loop unbundling.

BT has until September 20 to respond to the proposals. (AMcE)