Local Loop to stay local to BT

Tuesday 06 February 2001 11:00:00 by John Hunt

World Online announced itself as the 9th operator to drop out of Goverment backed plans for local loop unbundling. WO pulled out of trials that were in operation following the lead last week of Thus and Kingston Communications (who run the monoply on Telecoms in Hull). This leaves only 5 operators left in the bid for space in BT exchanges. It appears that the costs involved have proved to be too great for these companies, with Oftel doing little to calm the prices.

World Online were quoted at blaming the government for not making it easier for other operators to get into the exchanges and provide telecom services to residential and business users.

The two largest remaining operators, Colt and C&W are focusing on business customers, with C&W selling of their residential base to NTL last year. This is not promising news for those budding Internet users who were looking for cheaper broadband with new competition. Now the question is 'What competition?' [john]