What is Local Loop Unbundling (LLU)?

LLU is a process by which BT, as the incumbent operator, makes its local network (the copper cables that run from customers’ premises to the local telephone exchange) available to other operators. The cables are physically disconnected from BT and reconnected to the other operator, so that they can upgrade the individual lines using DSL technology, to offer services, such as high speed ‘always on’ Internet access, direct to the customer.

LLU is all about getting greater Broadband bandwidth to the customer. The process was driven by Ofcom, which believes that LLU offers the greatest opportunity for UK operators, who are in competition with each other, to differentiate their products and processes. As part of a strategic review by Ofcom, it was determined that BT would have to be more cooperative with LLU access or face being dismantled.

BT responded by setting up a new network access division called Openreach. This division is responsible for the nationwide local BT network and it will be their task to ensure that all service providers have transparent and equal access to the local BT network, whether they are partially or fully unbundling. This network covers the ‘first mile’ of wiring that connects homes and businesses to BT exchanges across the UK.

The main benefits of LLU include:

• Simplicity – customers can have a single supplier and a single point of contact for all their telecoms needs
• Value – competitive pricing
• Convenience – a single monthly direct debit payment to cover most services
• Faster Internet access – a greater choice of Internet-based applications
• Trust – a major reputable brand that the customer understands and trusts, and associates with the provision of both voice and data services