PT's local loop unbundled as from January 2001


/ Updated on 24.01.2008

Portugal Telecom's local network will be open to new operators of the Fixed Telephone Service (FTS) as from 1 January 2001. This opening has been brought forward by six months by the Instituto das Comunicações de Portugal (ICP), and will make it easier for new operators to install equipment at their clients, thereby facilitating the provision of fixed network telecommunication services in direct access, i.e. without dialling any selection codes. Upon adhering, the contractual relation between clients and the new operators will be similar to that which exists today between users and Portugal Telecom (PT). From an infrastructure point of view, the Local Loop - as this type of access is technically known - corresponds to the final branch of the network.

The Unbundled Local Loop (ULL) will therefore allow one to promote greater competitiveness in the fixed telecommunications markets and boost the provision of innovative services, especially with regard to encouraging access to multimedia services, thus expanding the range of offers available to end users.

As from January 2001, ULL will emerge gradually. This is due to the technical complexity of said process, which involves the preparation of PT telephone exchanges, and the difficulties currently experienced by the new operators in supplying equipment. Furthermore, one must naturally also take into account the commercial priorities defined by said operators.

Naturally, the provision of these services to the end user requires that there be a business relationship between PT and the other operators as remuneration is necessary for use of the network conceded by the historic operator. This business relationship does not directly affect the end consumer, but involves the definition of general conditions and of prices regulating the access to PT's network. The document containing these conditions and prices is known as ORALL - Oferta de Referência de Acesso ao Lacete Local (Reference Local Loop Access Offer).

Thus, last November, ICP issued a document containing a set of specifications to be included by PT in said ORALL. Following the dissemination of these specifications, PT presented ICP with some contributions towards said proposal. Among other points, this proposal included the immediate availability of three telephone exchanges, already prepared for the local access, situated in Lisbon (Laranjeiras and Lumiar) and Oporto (Foz).

It is expected that a consolidated version of PT's ORALL will be presented up until the end of January. Work has been hastened as the opening of the local loop, initially foreseen for June 2001, was brought forward by six months. A mixed work group is assisting in this work and is composed by: ICP, the Directorate-General of Commerce and Competition, PT, new operators, consumer representatives and equipment manufacturers. They have all followed the development of this provision and hope it will swiftly and efficiently increase the range of options available to consumers.

The operators themselves will inform consumers of the direct access services they have available as their equipment is installed. Users are not obliged to adhere to these services, nor does this adherence imply that they cannot use the services provided through indirect access: call-by-call selection (10xy codes) and provider pre-selection.

The prices to be charged to the end user will depend upon the business strategies of each operator and the type of services provided. Their various services to be provided: fixed telephone service, wide band Internet access and access to multimedia services.

The Unbundled Local Loop constitutes a direct access service provision (which presupposes equipment installation) and must not be confused with indirect access service provision (provided by an entity whose services are supported by an infrastructure installed by another operator).


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