BT will re-design and simplify its current local loop unbundling (LLU), cutting prices by up to 70% in a phased series of price reductions. BT said its long term aim is to ensure that it is subject to less regulation in areas where competition has been a success
The monthly rental price for the existing shared LLU product will come down on June 1 from £4.42 to £2.26 per line with the connection fee also falling from £117 to £83.33. Taking both cuts into consideration, this represents an overall saving of 35 per cent on the current price. Prices will be reduced again - making a total reduction of up to 70 per cent - once the full cost benefits of the re-scoped product and the achievement of certain volumes filter through. Prices for the fully unbundled LLU product are also to come down initially by an average of 15 per cent.
BT will also adjust the price for elements of its BT DataStream products to ensure there are adequate margins between BT DataStream and BT IPStream Home 500. These adjustments will be announced by the end of May with the margin being maintained with regard to all BT IPStream capacity based charging products.
In addition, BT is also to introduce a new wholesale calls product for Carrier Pre-Selection (CPS) operators where they have invested in connecting to a local exchange. This product will allow them to use BT directly for on-switch or inter-local exchange calls at a price such that their overall costs can be considerably reduced. The final product will be developed in consultation with Ofcom and the industry with interim arrangements to be put in place from July. http://www.btplc.com
- BT IPStream is a wholesale ADSL product sold to internet service providers (ISPs). In simple terms, it is an end-to-end wholesale broadband service that ISPs use to sell on to their end user customers.
- BT DataStream is an ATM transport product which tends to be bought by other network operators. These alternative network operators can then use their own ATM and IP networks to sell services directly or indirectly through their ISP customers to consumers and businesses.
