US groups drop UK web plans
By Dan Roberts, Telecoms Correspondent, in London
Published: September 20 2000 22:06GMT | Last Updated: September 21 2000 01:11GMT
Global Crossing and Worldcom, two of the largest companies set to introduce high-speed internet access in Britain, have abandoned their plans amid mounting criticism of the government regulator.
Both US telecommunications groups had been expected to lead the drive to bring broadband internet to homes and offices across the country - in direct competition with British Telecommunications.
Worldcom executives even chaired the regulator's industry-wide implementation working group, which led negotiations with BT over how rival operators could gain access to its local telephone network.
However, the two are thought to have pulled out at the last minute because of frustration at the "unbundling" process.
It emerged on Wednesday that neither was among the 35 companies to ask BT for access to local exchanges, or those given further details from the regulator on Tuesday.
Rival operators claim Oftel, the regulator, has not done enough to ensure BT does not delay the unbundling process to protect its local monopoly.
A measure of how many obstacles face new entrants came on Wednesday when BT revealed why it had rejected so many of the requests for access to exchanges.
It has identified alterations it says need to be made to the exchanges before other operators can be let in. These include: 17,200 square metres of anti-static vinyl flooring; 2,500 smoke detectors; 1,700 kickproof security doors; 430,000 pairs of wires for internal tie cables; 864 air handling units and more than 1,000 electricity meters.
Analysts believe BT has "blacklisted" more than half of the 860 exchanges requested by other operators, claiming that preliminary survey work reveals them to be unsuitable.
The large numbers of operators fighting for access to popular urban exchanges led Oftel to restrict initial unbundling to areas where demand is low - typically less prosperous and rural exchanges.
Oftel defended its strategy and said it had tried to let the industry decide how the process was carried out.
Worldcom and Global Crossing declined to comment. |
