Local loop open for competition

1999-07-04

OFTel, the UK Telecommunications watchdog, has announced that BT’s monopoly on the local loop has come to an end. It is still unclear about what this will mean in terms of implementation. It seems that two options exist: either BT can sublet its existing services to outside companies (in much the same way as electricity can be bought from a number of companies, despite the provider remaining fixed); alternatively, other organisations can provide alternative backbones to which the local loop equipments can connect. As with ADSL, one thing likely is that any rollout of new services will be slow, at least in the short term. The longer term is more positive, particularly for non-metropolitan areas which are more likely to benefit from new services than they would have been if everything were left to BT.

Lest we forget, though, there is a pretender in the wings. Wireless communications do not currently support the necessary bandwidth for data communications. With a new standard ratified by the ITU earlier this year, however, it is only a matter of time before the necessary equipments and infrastructure are put in place. Add ingredients such as Bluetooth, a local wireless standard which will transform home networking, to the pot and things become very interesting indeed. If the fixed line operators do not get their act together over the next couple of years, others will be happy to step in and take the business.

(First published 4 July 1999)