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Implementing Oftel’s Broadband Strategy. John Russell 12 July 2002. Outline. Oftel’s broadband strategy Key recent decisions Market developments. Oftel’s broadband strategy. Goal = quality, choice and value for money
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Implementing Oftel’s Broadband Strategy John Russell 12 July 2002
Outline • Oftel’s broadband strategy • Key recent decisions • Market developments
Oftel’s broadband strategy • Goal = quality, choice and value for money • How - by promoting network competition and competition in the supply of services • Technology-neutral approach • Intervention focused on bottlenecks caused by BT dominance • Quarterly surveys, ad hoc research and international benchmarking (Sarah Evans)
Key recent decisions • BT’s ADSL products • BT Marketing • ATM Interconnection • Local Loop Unbundling (LLU) • Partial private circuits (PPCs)
Recent decisions - BT’s ADSL products • Pricing - margin between BT’s wholesale and retail prices (SPs) • Pricing - absolute level of wholesale prices (LLUOs)
Recent decisions-Marketing statement (21 May) • Enable consumers to have easy access to information on what services are available to them • Make clear how BT can market its services without acting anti-competitively • Oftel will closely monitor BT’s compliance
Recent decisions-ATM interconnection (21 June) • BT directed to provide ATM interconnection to other operators, to enable them to offer ADSL services • BT also required to run a trial for an SDSL version of the interconnection service
Recent decisions - LLU • March 2001, complaint that BT did not offer a ‘nearest equivalent’ to BT’s own facilities • Directions of Oct 2001 (Co-mingling) and Dec 2001 (Access) • Lower prices for co-location. Set-up dropping significantly
Recent decisions - PPCs • PPCs allow operators to compete with BT in the leased lines market • March 2001, Oftel required BT to negotiate provision of PPCs with 10 operators • BT launched PPCs on 1 August 2001, Oftel received requests for determination on 2 August
Recent decisions - PPCs • Requests for Determination from 8 OLOs split into 2 Phases: • Phase 1 - direction requires BT to make a number of improvements to its wholesale leased lines products (14 June) • Phase 2 - will resolve the more complex issues eg pricing and SLAs. Consultation August, decision October 2002
Market developments -availability • ADSL - 66% (1115 exchanges) • June 2002 - BT ADSL order registration system • Cable modem access - 38% • Satellite - 100% • BFWA - 13%
Market developments - prices, April 02 Source: Oftel International Benchmarking reports, based on ADSL and cable modem tariffs valid as at April 02.
Market developments - take up Source: Oftel.
Conclusions • Prices are down • 20k new connections a week • Service provider competition - DSL • Network competition - cable • Satellite and BFWA developments • Interest in LLU