Oftel, the telecoms regulator, today stepped up the pressure on BT to boost competition in high-speed internet services by ordering the telecoms giant to provide a "reasonable service" to operators using its local services.
It is the first time that Oftel has formally intervened to set service level standards that the former monopoly must offer other operators wanting access to the "local loop", the BT-owned wires linking exchanges to homes and offices.
BT's local loop has 5,500 exchanges connecting more than 25m customers to the BT network. BT's local loop infrastructure is seen as crucial to the development of high-speed internet connections as it provides a direct line into every household in the country.
But BT's critics allege that it has dragged its feet in allowing access to its local loop and impeded the introduction of new technology that would transform "the last mile" of old copper wires into networks for delivering broadband internet access.
In February, Oftel said BT must pay operators compensation if it failed to meet agreed service levels; the operators have since complained about the level of that service. Oftel today said: "much of the complaint was justified."
BT maintained that it was already meeting the standards requested by Oftel and expressed irritation at the tone the announcement. The government has pledged to make broadband internet connections widespread by ending, or "unbundling", BT's monopoly over the local loop, but the process has been mired in disputes between BT, its rivals and the regulators.
Oftel said it was also proposing that BT should pay £10 for each working day an unbundled loop is unavailable and £80 per operator for each working day's delay in providing facilities.
Demand for unbundled loops has largely collapsed with the cash crunch in the telecoms industry, although the Earthlease investment group has offered £8bn to buy this part of BT's business.
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