What is Local Loop Unbundling?

telephone engineerLocal Loop Unbundling (LLU) is a process which allows companies other than BT to install their telecoms equipment in the local BT exchange.

These companies can then offer their own direct phone or broadband services to consumers

Between 2005 and April 2013 the number of unbundled lines increased from 123,000 to 9 million.

The spur for the surge in unbundled lines was a set of legally-binding Undertakings that Ofcom agreed with BT Group.

There are now over 30 different companies providing unbundled services to homes and small businesses.

Competition also means lower bills for consumers. At the end of 2005, UK consumers were paying on average £23.60 a month (excluding VAT) for a broadband service delivered over a copper phone line. Today they are paying around £13.11 for the same service.