7.1 Introduction

Local loop unbundling (LLU) is a regulatory device that allows telecom operators without physical network infrastructure to lease access to the physical assets of other operators. It is called unbundling as it reverses the normal bundling process whereby network owners usually only sell telecom services to customers in bundles which consist of switching, transmission, billing as well as the use of the physical infrastructure.

There has been much discussion of LLU recently as telecom regulators, mainly in the USA and Europe have introduced it in an attempt to boost competition in local access services and broadband access in particular. Much of the discussion has focussed on LLU from the new entrant operator perspective. This chapter describes the implementation of LLU from the incumbent operator's perspective. The authors have all been key members of the team that introduced LLU services to BT. The experience described here although based on BT and the UK regulations will be of general interest and application to other countries and other operators.

7.2 Broadband competition and LLU legislation

Telecommunications regulators have pursued LLU regulation in the belief that it will boost competition of broadband access services. However, broadband competition already existed both in service provision and infrastructure. In mid 2001 the BT deployment of wholesale asymmetric digital subscriber line (ADSL) services had reached in excess of 65 thousand end users via a wide range of service providers. At the same time infrastructure...