Local-loop unbundling: Difference between revisions

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'''Local loop unbundling''' ('''LLU''') is the regulatory process of allowing multiple [[telecommunications]] operators to use connections from the [[telephone exchange]] to the [[customer]]'s premises. The physical wire connection between the local exchange and the customer is known as a "[[local loop]]". It is owned by the [[incumbent local exchange carrier]] (also referred to as the "ILEC," "local exchange," or in the [[United States]] either a "[[Baby Bell]]" or an [[independent telephone company]]). Other providers are granted [[unbundled access]] to increase competition.

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===India===

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LLU has not yet been implemented in Indian cities. However, [[BSNL]] stated in October 2014 that it will open its copper loops for private participation. In addition to this, the proliferation of WiMax and cable broadband has increased broadband penetration and market competition. By 2008, the price war had reduced basic broadband prices to INR 250 (US$6), including line rental without long-term contracts. In rural areas, the state player, BSNL, is still the leading and often the only supplier.

BSNL is a monopoly used as a tool to ensure competition by the Government.

===European Union===

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Implementing local loop unbundling is a requirement of European Union policy on competition in the telecommunications sector. At various stages of development, it has been introduced in all member states (Operators with Significant Market Power shall publish (from December 31, 2000, and keep updated) a post reference offer for unbundled access to their local loops and related facilities. The offer shall be sufficiently unbundled so that the beneficiary does not have to pay for network elements or facilities that are not necessary for the supply of its services and shall contain a description of the components of the offer, associated terms, and conditions, including charges).

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===Switzerland===

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[[Switzerland]] is one of the last [[OECD]] nations to provide for unbundling because the Swiss Federal Supreme Court held in 2001 that the 1996 Swiss Telecommunications Act did not require it. The Government enacted an unbundling ordinance in 2003, and Parliament amended the act in 2006. While infrastructure-based access is now generally available, unbundled fast bitstream access is limited to four years after the act enters into force.

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===South Africa===

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On May 25, 2006, the Minister of Communications of South Africa, Dr [[Ivy Matsepe-Casaburri]], established the Local Loop Unbundling Committee chaired by Professor [[Tshilidzi Marwala]] to recommend the appropriate local loop unbundling models. The Local Loop Unbundling Committee submitted a report to Minister Matsepe-Casaburri on May 25, 2007. This report recommends that many companies offer models allowing customers to access voice and data. The models recommended are Full Unbundling, Line Sharing, and Bitstream Access. It is recommended that customers should exercise carrier pre-selection and thus be able to switch between service providers. It is also recommended that an organization be created to manage the local loop, that this organization be under the guidance of the regulator [[Icasa]], and that Icasa be capacitated in terms of resources. The committee recommended that service providers approved by Icasa should have access to the telephone exchange infrastructure whenever necessary. The committee recommended that a regulatory guideline be established and managed by Icasa to guarantee that strategic issues like the quality of the local loop be optimized for regulation and delivery of services. Based on this report, the Minister has issued policy directives to Icasa to move swiftly with the unbundling process.<ref>{{cite web |url=http://www.doc.gov.za/index.php?option=com_docman&task=doc_view&gid=47 |title=Local Loop Unbundling: A Way Forward for South Africa |format=PDF |work=The Local Loop Unbundling Committee |date=May 23, 2007 |access-date=2008-04-15}}</ref> At the end of March 2010 nothing has happened yet, however a deadline of November 1, 2011, was set by the Minister of Communications for monopoly holder, [[Telkom SS.A.] to finalize the unbundling process.