BT to learn local loop fate this week

BT will learn this week whether it will be forced to open its local networks to competitors from the end of the year, as proposed by European telecoms ministers earlier this month.

The European Parliament will decide on Thursday whether to approve the proposed regulations for local loop unbundling. If the vote is accepted the regulations will come into force on 31 December.

The European Union (EU) regulation will force BT and other incumbent telecoms operators in Europe to allow their competitors to provide services over the last mile of local copper loops. If the new law is voted in, new entrants will be able to take BT to court if the telco fails to open up access.

BT has previously said it would not be technically possible to fully open its local loops by this deadline. The telco said that while the first local loops will be unbundled in January, they will not all be open until July. The new law will insist that BT allow competitors access to the loop unless a request is "technically unfeasible".

Nick Clegg, member of the European Parliament, said: "I see no reason why a positive vote for this legislation won't be repeated on Thursday. This European law will have been adopted faster than any other equivalent legislation. This ensures that there is a minimum of wriggle room for incumbents to drag their feet over unbundling."

BT has been accused of stifling competition in the UK, and during the past month telecoms regulator Oftel has come under fire for failing to ensure that the telco makes fast progress in allowing competitors access to the local loop.

A newspaper article today suggested that six of BT's leading competitors are considering taking legal action and have demanded that UK e-minister Patricia Hewitt ensures that faster progress is made.

According to Clegg, who has been responsible for drawing up a final text for the proposed legislation, the EU regulation will force the pace of change on BT and Oftel.

"Oftel will now have the weapon to make sure BT sticks to the framework for local loop unbundling. If there is not quick action by the incumbent, court action can be taken against it," said Clegg.

The new law will also force regulators to "play their role" in ensuring incumbents follow regulations, said Clegg. "Regulators will need to ensure that incumbents do not try to time waste and drag their feet over providing access. It will be interesting to see how the national regulators implement this."