Local Loop Unbundling
Local Loop Unbundling or LLU is a government regulated process that allows incumbent telecommunications operators like BT and Kingston in the UK, to make their local exchange’s central office network (the copper cables running from the telephone exchange to the customer’s premises) available to other companies. The physical network connections between the carrier and the customers is called the local loop which is owned by the ILEC or incumbent local exchange carrier also known as the local exchange. Within this process, operators are able to upgrade single individual lines using DLS technology that can provide higher internet speeds directly to the customer.
Advantages
As UK’s dominant local telephone exchange company, BT has extensive local loops installed throughout the UK. This is where the concept of unbundling enters to allow independent ISPs to tap into these local loops to provide the customer alternative to better broadband interest service that may lie outside of BT.
Now, AOL and other broadband internet service providers can install their one respective brand or broadband technology with speeds and downloading limits different from what the incumbent local exchange carrier like BT has. This can be advantageous to the customer if its services are superior to what BT offers.
Legality Behind Unbundling
British Telecom’s license was modified with the insertion of a new condition called Condition 83 which stipulates the co-location products that BT should offer other service providers. In addition, there is a European Commission regulation on Local Loop Unbundling (EC/2887/2000) that was enforced in January 2001. It requires incumbent telecommunication operators all over the EU to make available unbundled access to their respective local loops upon issuance of a reasonable request.
Condition 83 stipulating co-location requirements in the BT license goes with this EC regulation with details that ensure it can be applied in the UK. The details of the regulation can be found at the EU website at http://europa.eu.int/eur-lex/en/lif/dat/2000/en_300R2887.html
