Oftel warns MPs over slow DSL take-up

By Lisa Burroughes, 3 March 1999 17:25

NEWS Oftel has warned that ecommerce in the UK is being stifled by the slow deployment of high-speed Internet access technologies such as DSL (digital subscriber line). Senior executives from the UK telecoms regulator issued the warning to MPs at a meeting of the Trade and Industry Select Committee. Oftel is due to complete a consultation document on 10 March looking into the barriers faced by BT rivals that want to offer products based on DSL technology. "BT's large share of the access market over copper loops means that any mass deployment of DSL technology will depend on the availability of access through BT's network," it said in a written statement. Oftel's statement said that if such barriers exist, "one solution, which is also being considered by other EU countries, is to allow others access to BT's local loop to enable them to deploy DSL technologies." The statement was welcomed by Ovum consultant, Adrian May who believes unbundling the local loop is the only way competition can bring about the necessary market conditions for the growth of ecommerce. "Oftel must create the market conditions for DSL competition. BT is not an enthusiastic ADSL (Asymmetric DSL) company. In fact, it is dragging its feet over national rollout of DSL." Oftel is also examining the cost of Net access in the UK compared with other countries. It denied press reports that the UK has the highest rates in Western Europe and argued that in some instances - when using a free ISP (Internet service provider) service over cable connection - Net access in the UK is amongst the cheapest in the world. The comments come as Oftel was presenting its case to become the regulator for ecommerce. A statement said: "In a convergent world, there isn't room for another regulator. Oftel could fill the role because it already regulates many data transfer issues and the relationships between communications organisations."

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