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BT Confirms Lower LLU Prices

Posted: 22nd Sep, 2004 By: MarkJ
BT has officially confirmed their lower local loop unbundling (LLU) prices, which will see connection charges drop from £83.33 (June) to just £27.12. It's hoped the move will encourage infrastructure investment and competition:

BT today confirmed details of the latest reduction of local loop unbundling (LLU) prices which are designed to stimulate infrastructure investment in the UK communications market.

The company also announced the creation of the new role of director, LLU, to oversee and drive its commitment to this increasingly important part of the market. Tom Maguire takes up this role with immediate effect.

By investing in new automated processes, BT has been able to reduce shared LLU prices by a total of 60 per cent since May 31 this year. Effective from September 30 the connection charge for the shared access service will go down to £37 (in May 2004 this had been £117), and annual rental will remain at £27.12 (was £53 in May 2004).

As previously indicated, BT will introduce further price cuts (up to 70% on pre-June prices) and expects to be able to apply these before the end of the year.

BT committed in May this year1 to implement new automated processes that would reduce the cost incurred by BT of offering LLU and to passing on these savings to its wholesale customers.

Paul Reynolds, chief executive of BT Wholesale, said: “BT is committed to driving innovation and service across the UK communications industry. Our wholesale prices overall are falling steadily and this move is designed to lead to market stimulation, and to develop a market in which those who are willing to innovate and invest can reap appropriate rewards.

And the appointment of a new director to oversee all our LLU activities will ensure BT moves as quickly as possible to deliver its commitment to this market.
”

Details of the new prices will be listed in the BT Carrier price list, section B6, part 6.03: http://www.btwholesale.com/pricing
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