BT's rivals could sue over local loop

Rival telcos are prepared to sue BT and UK telecoms regulator Oftel if they ignore a European Commission (EC) order to unbundle the local loop by the end of this year.

BT and Oftel claim that they are ahead on unbundling the local loop by the summer of 2001 and will have the legal framework in place by the end of the year.

However, EC spokesperson Per Haugard said that under European Union (EU) law that timetable is not fast enough and instead BT's rivals should have full access by Christmas.

But BT and Oftel say that they are sticking to the original agreements and there is no way that the telco will be able to meet the proposed deadline. A BT spokeswoman said: "Our position has not changed. We have a deal with Oftel, which we intend to stick to." Oftel chief David Edmonds said the regulator will not push BT to meet the new EU deadlines.

Simon Stokes, a partner at solicitors Tarlo Lyons, said that BT's rivals have a strong legal case against the telco. "Competitors could sue BT for vast amounts of money if they can show that a delay damages their business," he said.

Dougald Robinson, head of regulatory affairs at telco Global Crossing, which wants to launch digital subscriber line services in the UK, said: "I don't know of any operator who hasn't ruled out taking BT to court over this.

"The EC statement talks of fair and sustainable competition. Openworld will be available in 412 exchanges by July next year. However, BT has told us that just over 100 exchanges will be ready by July. This can't be judged as fair and sustainable."

John Docherty, director at Colt Telecommunications, said that his company is also considering legal action, as did a spokesperson for telco Fibernet.

David Rowe, managing director of Easynet, said EU law means that his company will now have legal backing. "We would sue BT if they were being deliberately obstructive about unbundling the local loop," he said.

Carey Gray, senior research analyst at the Butler Group, said: "The loss of revenue for the incumbents could be in the millions as they could claim early mover advantage."

First published in Network News