Oftel acts to aid SMEs

Oftel has drafted a code of practice for telecoms companies in dealing with repairs to services taken by small businesses.

The new code has been developed in conjunction with the Telecommunications Industry Association (TIA), an industry self-regulation body that has signed up over 60 of its members for the initiative.

"Being out of contact with customers for even a short period of time can spell disaster for a small business," said Oftel's director general, David Edmonds. "They need to feel confident that their telecoms suppliers will co-operate to find and rectify the fault without any unnecessary delay."

Oftel said the new code, which was unveiled just before Christmas, will ensure that suppliers make it clear how quickly they will carry out repairs and installation, as well as the prices to be charged, when customers sign up for new services.

Oftel's new year's gift to SMEs was the announcement of the wholesale prices that BT will be charging other telecoms providers to take over the 'local loop' - the line that directly connects the customer with the local exchange. This will mean alternative suppliers will soon be able to install their own high-speed ADSL equipment in local exchanges, and manage the full connection between the customer and the internet.

Oftel said BT will charge operators an annual £122 rental for the line, on top of a £88 one-off connection charge. This gives great scope for price competition - BT currently charges small businesses £480 per year rental for a basic single-user ADSL line, as well as a £150 installation fee. Higher speed multi-user access is even more expensive - as much as 10 times the new wholesale prices.

Oftel says disclosure of the new wholesale pricing and the arrangements for operators moving equipment into BT local exchanges will allow BT's competitors to finalise their business plans for competitive services. Announcements are expected in the coming months.