Beginner's Guide to Local Loop Unbundling

1. What is Local Loop Unbundling?


2. What this means for you


3. Fully unbundled and shared access


4. Terminology


5. Before and after Local Loop Unbundling
   
   
   
   

1. What is Local Loop Unbundling?

Local Loop Unbundling (LLU) lets alternative telecommunications operators access and install their own equipment in, or close to BT's telephone exchanges. This gives them a direct connection to BT's local network (the 'local loop') to take over the copper wire between the exchange and customer's properties.

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2. What this means for you

This means that different telecommunications operators, not just BT, can offer broadband, voice and other services to Internet Service Providers (including PlusNet) at lower prices than BT Wholesale. In turn, these savings and improved levels of service can be passed onto you.

It is hoped that Local Loop Unbundling will make the UK telecoms market more competitive, driving down the cost of broadband services across the country. It will also allow ISPs to start offering a broader range of products (e.g. much higher speed broadband services, TV over broadband etc).

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3. Fully unbundled and shared access

There are two different types of unbundling:

1. Fully unbundled - The alternative telecommunications operator takes full control of a copper line from BT.



2. Shared access (or line sharing) - BT keep control of the copper line but shares this with the alternative telecommunications operator. This means you could have a landline service with BT whilst having a different broadband provider.

Local Loop Unbundling - shared access

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4. Terminology

The process of Local Loop Unbundling is a fairly complex one, involving a number of different pieces of telecommunications equipment. Depending on the item, these are usually found inside your local telephone exchange, although some will be found outside.

To give you an idea of how LLU services are physically provided, some of the main terminology/equipment is described below. (Have a look at the diagrams too).

Local Loop - The wires (usually made of copper) running from the local telephone exchange to a customer's premises.

Multi Service Access Node (MSAN) - The piece of equipment which alternative telecommunications operators install inside a telephone exchange. This basically looks like a cabinet - holding a line card for every unbundled line.

Primary Connection Point (PCP) - These are the large green 'cabinets' which you may spot from time to time at the side of the road. The copper telephone wires from the local exchange run to here, then to a telegraph pole and then on to various homes, shops and businesses.

The PCP is then connected to the Main Distribution Frame. From here it connects to the equipment the telecommunications operator has installed within the exchange (MSAN).

Main Distribution Frame (MDF) - BT keep control of this within the exchange, but provide space for the telecommunications operators to install their equipment.

Handover Distribution Frame (HDF) - This is also housed in the telephone exchange. It is used to terminate the copper telephone wire from the exchange, making this available for alternative telecommunications operators.

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5. Before and after Local Loop Unbundling

Before

After

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