BT must open local loop from 1 January

The European Parliament has approved the proposed regulations for local loop unbundling in the UK, meaning that BT will have to open up its local networks to competitors from the beginning of next year.

The Parliament voted "overwhelmingly" this morning to adopt the draft law, proposed by European Union (EU) ministers last month, which requires incumbent telcos to allow their competitors to provide high speed services over the last mile of local copper loops.

BT has previously said that it would let some competitors into its local exchanges from 1 January, but this ruling means any competitor must be given access unless it can be proved that it is technically impossible. BT is planning full access by July.

The new law will insist that BT allow competitors access to the loop unless a request is "technically unfeasible".

The EU Regulation on Local Loop Unbundling will still have to be signed by the Council of Ministers, which is due to meet in a few weeks' time. Following this, the regulation will be passed into UK law with immediate effect. New entrants will be able to take BT to court if the telco fails to open up access.

MEP Nick Clegg has said that the legislation, which has taken a fast track route through Parliament, will ensure that the "urgent need" for local loop unbundling will "finally become a reality from the end of this year", and will ensure that incumbents do not "drag their feet".

According to Clegg, unbundling will promote lower costs and a vastly increased choice for the consumer, and is the urgent measure needed for Europe to catch up with the US.