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Article Date: 08/23/01
Authors: Sajid Ahmed
On 23 August 2001, OFTEL announced that it would intervene for the first time
to specify the service levels that BT must offer rival operators for its LLU
services. OFTEL also announced that it would determine the rates of
compensation to reflect the rival operator's loss of revenue if BT fails to
meet those service levels. The service and compensation levels will be imposed
by OFTEL after a statutory consultation period, for which the deadline for
responses is 20 September 2001. In February 2001, OFTEL determined that BT must offer guaranteed levels of
service and an agreement specifying those levels. However, after negotiations
between BT and other operators, the latter complained that BT's offer was
inadequate. According to OFTEL, "much of the complaint was justified" and, as a result, it
proposes a 'significant redraft' of the access network facilities agreement
between BT and rival operators. In relation compensation, it is proposed that
BT should pay £10 for each working day an unbundled loop is unavailable and £80
per operator for each working day's delay in providing facilities for locating
equipment in BT exchanges. Additionally, BT will have to compensate operators
for extra costs if it does not have an automated system for ordering local
loops in place by its planned date of 5 November 2001. Contact: sahmed@steptoe.com
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