Ofcom consults on two new TLAs, WBA and WLA

Ofcom has announced two new consultations (both close on 01/06/2010): -

* Wholesale Local Access market

* Wholesale Broadband Access

WLA is concerned with BT offering fibre-to-the-(street) Cabinet or FTTC / fibre-to-the premises FTTP services to 3rd parties (i.e. other operators) and this is likely to be done using Virtual Unbundled Local Access (VULA) i.e. BT will have to provide a virtual connection across its network to the 3d party. BT will also have to make available duct or pole space to allow 3rd parties to install their own fibre deployments known as Physical infrastructure access (PIA).

WBA is concerned with broadband market across the UK and where companies have significant market power or SMP. BT is SMP for most of the UK with the noticeable exception of Hull which is is serviced by Kingston Communications who have SMP. However where local local unbundled services are offered by at least 3 other operators, BT do not have SMP.

The are therefore four separate geographic markets:
* The Hull area (covering 0.7% of UK premises): those areas covered by exchanges where KCOM is the only operator.

* Market 1 (covering 16.4% of UK premises): those areas covered by exchanges where BT is the only operator.

* Market 2 (covering 13.7% of UK premises): those areas covered by exchanges where there are 2 or 3 operators.

* Market 3 (covering 69.2% of UK premises): those areas covered by exchanges where there are 4 or more operators.

KCOM hold a position of SMP in the Hull Area. BT hold a position of SMP in Market 1 and in Market 2, but that no operator holds a position of SMP in Market 3.

Ofcom want to take steps to ensure growth with occur in markets 1 and 2 and BT can not make excessive price rises.

Anyone can respond to the consultations via the Ofcom website for WBA and WLA