BT Ireland quits local loop unbundling (LLU) talks

BT Ireland quits LLU talks
'Frustrated' by Eircom's lack of progress
By Tim RichardsonPublished Thursday 27th April 2006 15:06 GMT
http://www.theregister.co.uk/2006/04/27/eircom_llu/
BT has walked out of industry talks that are supposed to lead to greater competition for the provision of local loop unbundling (LLU) broadband operators in Ireland. The talks between the industry and Irish incumbent Eircom have been going on for two years and include, among other things, the creation of an automated system to help switch customers quickly and easily between different providers.

But on Tuesday, BT spat the dummy, threw its toys out of the pram, and turned its back on the talks. Frustrated by the lack of progress, BT said that Eircom's position on LLU would "jeopardise industry investment and impact on Ireland's competitiveness".

BT Ireland chief exec Danny McLaughlin said in a statement: "It is with great reluctance that we withdraw from this industry forum. However, Eircom continues to frustrate the progress of LLU and we do not see positive indications that a future change of ownership at the monopoly provider will bring a more progressive approach.

"We believe that Eircom's stance will jeopardise industry investment and impact on Ireland's competitiveness. It is evident that [regulator] ComReg does not have sufficient powers to improve this situation. BT will therefore explore all options available to us in order to ensure that the right market conditions exist to drive true competition."

Of course, there are plenty of people who say BT is just as guilty of frustrating progress in the UK.

Last year Ofcom described delays to the introduction of LLU as "very substantial". In November 1999, Oftel [the former telecoms regulator] ruled that BT must offer LLU products that could be used by rivals to provide competitive services.

Yet, Ofcom wrote that five and half years later, the telecommunications adjudicator is still working with BT to resolve problems with many important features of the LLU products. As a result of the problems, the LLU products continue to suffer from inferior functionality to those that BT supplies to itself."

In its latest monthly update, the telecommunications adjudicator, which oversees the development of LLU in the UK, is still frustrated by BT's lack of progress.

The OTA (Office of the Telecommunications Adjudicator) described BT's delivery of backhaul - the lines that link unbundled exchanges to rival operators' networks - as "still unacceptable" and that "this has been an outstanding issue for some time". ®

And in other news...

Eircom and BT ready to resume discussions

RENEWED negotiations between Eircom and alternative broadband provider BT Ireland on local-loop unbundling should be complete within four weeks, Communications Minister Noel Dempsey said yesterday.

It is understood that negotiations resumed between Eircom and other alternative broadband operators at the offices of telecoms watchdog ComReg yesterday following a decision earlier in the week by BT Ireland to pull out of negotiations.

BT said it was pulling out over delays in automation of local exchanges and local-loop unbundling.

Decision

Mr Dempsey was commenting on his decision to amend the Electronic Communications (Miscellaneous Provisions) Bill to grant ComReg the power to enforce competition law for the first time and speed up the rollout of broadband services.

Speaking at the National Telecoms Summit in Croke Park, Minister Dempsey said the new measures, which are modelled on the British system, are designed to improve the competitive environment in the broadband sector.

They will ultimately bring high speed internet services to over 500,000 people, he said.

"This will allow ComReg to investigate and take action on issues such as abuse of dominance," he said.

"In the context of recent events I repeat - nothing is ever accomplished from walking away from discussions," Mr Dempsey added.

"All parties should resume their discussions immediately with the goal of achieving full local loop unbundling."

Mr Dempsey added that the Government has two instruments for increasing competition - investment and regulation - and said that the regulation arm had been "less muscular".

Ailish O'Hora