Bungling the unbundling: Who is to blame?

Local loop unbundling (LLU) isn't working. Less than three weeks ago, silicon.com praised the parties involved - BT, other telcos (would-be competitive local exchange carriers, or CLECs) and watchdog Oftel.

We welcomed the fact they were coming together to advance the frustrating process of taking the last mile of telecoms infrastructure out of the incumbent's hands. We may have spoken too soon. At stake is nothing less than the broadband future of the UK. Unbundling means allowing a number of companies to use local exchanges to provide high-speed DSL services to homes and businesses. This is a business opportunity for these CLECs, but more important for small businesses currently crippled by leased line charges and companies hoping to sell to internet-enabled consumers. Except the number of companies lining up to provide their own versions of DSL over their own equipment is dwindling. Today pan-European ISP World Online joined a list of those opting out that already includes Scottish telco Thus, as well as global players such as RSL Com and WorldCom. And as telcos pull out - arguably tightening their belts at a time when raising cash for this kind of investment has become harder - the cost to those who remain, co-locating in local exchanges, increases. Who's to blame? A silicon.com reader's poll would characterise BT and Oftel as the villains of the piece. Both organisations could be doing more, but there's danger in over-simplifying this issue. At the end of last week, ISP and telco Easynet announced the beginnings of its DSL service in Battersea. If it can go ahead, why can't others? There is a third way. Some companies are already starting to resell BT ADSL services, and this remains an option for those dropping out of full-on LLU. It is likely to happen on a wide scale. But this isn't the LLU we want. We must hope enough telcos will stay the course and invest in their own DSL equipment and services. In the meantime, UK Plc suffers, and we all get to moan at BT and the regulator.