Today British consumers are paying 52 per cent less for an equivalent broadband service than they did in 2005…and there are 62 times more phone lines, unbundled.
And the reason for it is the Local Loop Unbundling (LLU), which helped to transform the communication in UK. Before majority of UK consumers has their broadband and landline telephone service from one provider – BT.
But the unbundling process allowed companies other than BT to install telecoms equipment into the local BT exchange. Since 2005 the number of unbundled lines has increased from 123,000 to hit 7.62 million in April 2011. Other telecom companies were then able to install their own telecoms equipment into the local BT exchange. They could offer their own direct phone or broadband service, which resulted in lower deals and greater choice for consumers. Today there are over 30 different companies offering unbundled services to homes and small businesses and millions of homes and small businesses have switched to providers other than BT.
The Ofcom gives us this statistics that shows success of unbundling process:
in 2005 just 4 per cent of households had their landline with providers other than BT or a cable provider – now 26 per cent take their landline from an alternative provider;
with over 19 million broadband lines among which more than 70% are provided by companies other than BT, many on the basis of unbundled lines.
Good decision, Ofcom! Thank you!