Pressure grows on Oftel

Telecoms watchdog Oftel has insisted that the development of UK high-speed internet access is still on track despite the decision of US operator WorldCom to pull out.

Competitors will now be able to come to me if they feel there is a problem and I will have the power to force BT to comply

Oftel director general David Edmonds

WorldCom was expected to lead the drive towards broadband net access across the country, but it dropped out of the race on Thursday, quoting "commercial reasons".

The company denied initial reports that it was "frustrated" with Oftel's handling of the process opening up BT's monopoly to competition.

Oftel says it has issued new guidelines to stop BT exploiting its monopoly of local telephone exchanges and the all-important "local loop" - the final mile or so of cable leading to homes and offices.

Oftel's new powers

BT is supposed to be installing competitors' equipment in its telephone exhanges to open up the market for high-speed net access.

But the telecom giant has been accused of dragging its heals over this "unbundling" process to maintain an advantage over its competitors.

BT engineer at work in an exchange

Oftel director general David Edmonds says BT has consistently failed to provide adequate information about the exchanges or how much space is available in them.

He has been granted powers to speed the process up and ensure BT provides a level playing field.

Mr Edmonds told BBC News Online: "This doesn't necessarily give me confidence that this will bring an end to BT's obfuscation.

"But the competitors will now be able to come to me if they feel there is a problem and I will have the power to force BT to comply."

BT will have four months to provide space for equipment.

So far, 28 companies have been granted access to 360 of the less popular exchanges, mainly in rural areas.

The real problems are likely to begin in December, when more popular exhanges becomes available and demand starts to outsrip supply.

Constant rows

Mr Edmonds has been given the job of coming up with a formula for deciding which companies are given access, after the companies themselves failed to reach agreement.

There is no way BT has been blocking the process and we are currently on time to deliver to the agreed timescales

BT

"I will have to invent the process over the next couple of weeks and I will be presenting a consultation paper," he said.

BT denies that the constant rows over unbundling have played into its hands, allowing it to build up a solid customer base for its own broadband services.

"Oftel has set the timetable for conversion not BT - and it is a tough one," a spokesman said.

"There is no way BT has been blocking the process and we are currently on time to deliver to the agreed timescales."

WorldCom is the second company to pull out of the broadband market in a week.

RSL Communications has pulled out of the first stage of bidding and accused the regulator of failing to ensure fair play for rivals to BT.

Global Crossing is also reported to have pulled but declined to comment.