Rivals face BT video monopoly

Oftel must set tough guidelines to prevent BT establishing a monopoly over video on demand services, according to the secretary of industry body the DSL Forum.

David Greggains said that the range of very high data rate digital subscriber line (VDSL), used to deliver broadband streaming content, means that the incumbent telco could end up with a stranglehold on the wholesale market.

"VDSL has a range of less than a thousand metres, so if we don't get distant collocation effectively, it would mean that VDSL could only be delivered by the incumbents. That would contravene what the European Union wants, and effectively grant BT a monopoly over that market," he said.

In distant collocation, also called sub-loop unbundling, rivals install their own DSL equipment at street cabinet level, using either their own fibre network or BT's last mile infrastructure to 'backhaul'.

This shortens the distance to customer premises, making delivery of high-bandwidth content technically and economically viable. But the high cost to rival operators of building such fibre rings will give BT a wholesale advantage.

Tony Lavender, principal consultant at telecoms analyst Ovum, said: "If VDSL has to be delivered through a wholesale operation provided by BT, I think you also have to have a much more aggressive look at the regulatory and pricing aspects."

"If you go down the VDSL route, at some stage you're going to have to unbundle part of the fibre network or the bandwidth within it. It's going to take a brave operator to suggest that to BT and Oftel," he added.

Greggains explained that unbundling at street level could also offer a solution to the problem of allocating space in local exchanges. "If BT says there is insufficient room in exchanges, in theory distant collocation could ease that," he said.

An Oftel spokesperson said that in principle it considers distant collocation as no different from local exchange access. VDSL promises between 51Mbps and 55Mbps over lines up to 1000 feet.

First published in Network News

See also:

BT's rivals cry foul over falling costs

Oftel could face legal action from BT's rivals if the regulator forces the telco to lower its collocation charges.  24 Jan 2001

BT under fire over vDSL stance

The row over local loop unbundling is moving from ADSL technology to vDSL.  14 Nov 2000

BT forced to provide unmetered access

Oftel said BT must provide other operators with a wholesale flat-rate internet access product from next year, which it said will ensure millions of people can access the internet without the worry of huge bills.  13 Nov 2000

BT to speed up local loop process

BT has announced plans to accelerate the process of opening up its local networks to competitors, but Oftel said that further improvements are needed to move the plans forward.  10 Nov 2000

Mailbag: ADSL woe for BT customers

As reported yesterday on vnunet.com, BTOpenworld, BT's high speed asymmetric digital subscriber line (ADSL) service, has hit a speed bump with an IP address server glitch shutting out thousands of users, many of whom have only just had the service installed after a lengthy wait.  25 Oct 2000

Fibernet starts wholesale DSL pilot

Wholesale digital subscriber line services are to be deployed in a pilot scheme for users in four major UK cities, bypassing the debacle over unbundling the local loop.  18 Oct 2000

MP slams UK telecoms infrastructure

UK businesses are lagging behind their European competitors because the UK's telecoms infrastructure is not up to scratch, according to the Shadow Chancellor of the Exchequer.  11 Oct 2000

Oftel told to put up or shut up

Internet service provider Plusnet has broken the telcos' code of silence and gone on record calling for Oftel to put up or shut up.  10 Oct 2000

Is it the end of the line for Oftel?

The embattled UK telecoms watchdog looks set to be disbanded and replaced with an all-encompassing communications and media regulator.  10 Oct 2000

Telecom professionals blast Oftel

UK telecoms watchdog Oftel has come under fire from UK telecom professionals for failing to ensure effective competition in the communications market.  26 Sep 2000

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