Local Loop Unbundling in Western Europe Will Extend to 28.6 Million Lines by 2010, Says Analysys.CAMBRIDGE, England -- Openreach, the access arm of UK incumbent BT, announced that the UK had reached the 1 million unbundled local loop (ULL Noun 1. Ull - (Norse mythology) one of the Aesir known for his beauty and skill with bow and skis; son of Sif and stepson of Thor Ullr Norse mythology - the mythology of Scandinavia (shared in part by Britain and Germany) until the establishment of ) landmark on 8 November 2006. The UK will not be alone in experiencing an infrastructure-based revolution in broadband access, as the number of ULLs in Western Europe will grow from 10.9 million at June 2006 to 28.6 million by the end of 2010, according to a new report, The Competitive Dynamics of DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary in Western Europe: prospects for local loop unbundling Local loop unbundling (LLU) is the regulatory process of allowing multiple telecommunications operators use of connections from the telephone exchange's central office to the customer's premises. and bitstream, published by Analysys, the global advisers on telecoms, IT and media (http://research.analysys.com) "Local loop unbundling (LLUB LLUB Local Loop Unbundling ) is one of the big successes of 2006, across Western Europe," says the report's co-author, Martin Scott. "However, LLUB could potentially become a victim of its own success. Exchanges are becoming overcrowded o·ver·crowd v. o·ver·crowd·ed, o·ver·crowd·ing, o·ver·crowds v.tr. To cause to be excessively crowded: a system of consolidation that only overcrowded the classrooms. and, as incumbents begin to fight back with more competitive wholesale offers and cabinet-based DSL, as in the Netherlands, the balance of power may shift back to incumbents. The true landmark figure in the UK is not 1 million unbundled lines but 1.5 million - that's when BT will restart the battle for the local loop," adds Scott. Key findings from the new report include: o Alternative operators will continue to evolve towards infrastructure-based strategies in order to improve profit margins, leading to 24.2 million fully unbundled local loops in service by 2010 (a 437% increase on 2005 figures). o Incumbent operators will retain over 50% of the retail DSL market to 2010 (down from 56% in 2005) as fixed voice revenues slide, giving incumbents little choice but to competitively cut rates and offer new services. o Wholesale access products to third parties may continue to represent up to 18% of the DSL market, or 16.4 million lines (a drop of only 7.9 percentage points from 2005), to 2010 if bitstream were to evolve in both pricing and value proposition, as detailed in the report. The report is available to purchase online at http://research.analysys.com/store, priced at GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1700 (approximately EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2450) plus VAT. All media enquiries should be directed to press@analysys.com or call +44 (0)1223 460 600. Journalists are invited to visit our online Media Office for a full list of press releases and articles. |
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