BT and the regulator -- Ofcom -- have agreed to sweeping changes to the way rival telecoms operators access BT's network.
Under the changes, which will be published in full by the end of the month, BT will set up a new access division that will, it says, ensure its rivals get fair access to its local telephone exchanges.
Ofcom is confident that this will finally mean a level playing field between BT Retail and other Internet service providers and telephone operators. There have been widespread complaints over recent years that Retail has been unfairly favoured by BT.
BT is also cutting the cost of installing equipment in its exchanges in a process known as local-loop unbundling (LLU). LLU allows other operators to offer telecoms products in competition with BT.
Ofcom's announcement follows its Strategic Telecommunications Review, launched last year. If Ofcom and BT had failed to reach agreement, then the regulator could have started the process of breaking the telco up. This option now looks to be off the agenda, but Ofcom has warned that this is an option if BT fails to come through on its promises.
The telecoms industry was still digesting the implications of Ofcom's announcement on Thursday morning in the UK, with one insider describing Ofcom's announcement as "a step in the right direction" towards fair access to BT's network.
In return for making concessions in the way it operates its 'local loop', BT will get more freedom to invest in 'high-risk' ventures such as its 21st Century Network. This is something BT has urged Ofcom to allow. However, other operators are concerned that the construction of 21CN could give BT a more dominant position in the UK market.
Ofcom said on Thursday in the UK it is still working on measures to make sure 21CN will offer "all providers the same products, prices and processes on equal terms and does not inhibit reasonable developments by alternative network operators".
Let's see if Coonan can do the same to Tel$tra in Australia. It's long overdue. The playing field is a long way from level. Tel$tra doesn't do anything for ISP's and others who are supposed to have access to the local loop and other areas of the network, which may impact it's commercial dominance. Users suffer interminable delays for both installation and service when they have to depend on Tel$tra to do the work for them, but they aren't Tel$tra retail customers.
Example: To move a Tel$tra BroadBand DSLAM customer connection (Tel$tra gets revenue from this)from ISP to ISP takes minutes, with virtually no interruption, once the paper work is completed.. To move from a Tel$tra BB DSLAM to another IPS'a DSLAM (Tel$tra bills the ISP for this, but loses revenue), means a service interruption which takes weeks with NO BB service for the user because Tel$tra won't schedule the work for it's technicians.
This problem exists in many areas of our telecommunications network when a customer chooses to use a non Tel$tra billed service.
I am forced to use an ISP who can't provide a BB service faster than 1.5Mbps because Tel$tra wont allow the equipment to run any faster even tho it is within specification for ADSL to run up to 8Mbps.To switch my service to an ISP who will provide a faster service (up to 24Mbps) I would have to put up with no BB access for weeks.The process in the exchange to make this shift takes a miserable 5 minutes and we are supposed to be in the 21st century!!!