Telecoms watchdog Oftel is to make BT open up its network to other operators in a move to further the UK's "broadband revolution".
At present, operators which want to offer broadband services must either buy BT's wholesale broadband products at its prices or install their own equipment in BT's local exchanges.
Under the new ruling, BT will be required to offer assymetric digital subscriber line (ADSL) broadband interconnection services to enable operators to connect to BT's network.
The interconnection must be priced on a "non-discriminatory basis", enabling rival operators to compete with BT.
The moves should help further reduce prices and increase the number of options for business and residential customers.
These include leased lines, BT's wholesale products, cable modems, unbundled local loops and emerging technologies such as fixed wireless broadband access and satellite.
BT will be required to begin a trial for an interconnection product based on symmetric digital subscriber line (SDSL)
technology, which has been pioneered by Brighton-based communications company Moving-Edge, following consultation with the operators.
Oftel expects operators will be able to launch ADSL services using the new products later in the year.
Its decision, which follows a request from rival telecoms operators Energis and Thus, means the operators will be able to offer broadband services using a combination of their own and BT's network.
It should lead to a wider range of wholesale and retail broadband services in competition with BT.
Oftel director general David Edmonds said:
"Progress in rolling-out broadband continues. Twenty thousand new customers are signing up each week and prices are as cheap as in France, Germany or the United States. By the end of this month, we estimate about 700,000 customers will have fast access to the internet.
The announcement will enable operators to offer a wider range of products.
"Prices for these new services will be set by Oftel at a level that encourages competition between providers and ensures other operators still have an incentive to invest in alternative broadband delivery mechanisms."
Prices for DSL connections have fallen by 39 per cent since the beginning of the year and have helped push users numbers up by 50 per cent.
Mr Edmonds said: "The best way to support take-up of broadband services is through a thriving and competitive market where consumers have choice of products and prices."
This year has been described as a make-or-break year for broadband. The Government has widely publicised its objective to have the most competitive and extensive broadband market in any G7 country by 2005. Internet researchers Jupiter MMXI estimated the number of broadband connections in the UK would triple this year.
www.oftel.gov.uk
www.bt.com
www.energis.com
www.thus.net
www.moving-edge.net
www.jupitermmxi.com
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article