| In September 2005 a process known as "local | | | | (when you bought a home phone call package) in |
| loop unbundling" (LLU) started in the UK. The | | | | April 2006. Since then, a host of companies have |
| process, which was instigated by the regulator, | | | | sharpened their pencils, to drive down the cost of |
| required BT to allow competing companies to | | | | their broadband services. |
| install their own equipment in BT telephone | | | | As a result you can now buy broadband and |
| exchanges. This means that they do not have to | | | | phone bundles starting from as little as £6 |
| sell-on BT's wholesale broadband service and can | | | | per month (excluding line rental). The digital TV |
| therefore offer very competitive prices. The | | | | providers have got in on the act too. Sky for |
| result has been nothing short of extraordinary. | | | | example offers free broadband for Sky TV |
| There are now over 6 million "unbundled" phone | | | | subscribers who also take a Sky Talk calls plan. |
| lines with about 30 different companies providing | | | | Recent research from broadband and digital TV |
| broadband services to households and businesses. | | | | comparison service simplifydigital.co.uk shows that |
| As Ofcom Chief Executive Ed Richards notes: "In | | | | many consumers are still failing to take advantage |
| just four years, unbundling has gone from a | | | | of the potential savings. Their research shows |
| flicker on the dial to a major competitive force in | | | | that those who bundle their digital TV, broadband |
| telecoms....This has delivered the dual benefits of | | | | and home phone services from a single provider |
| driving up broadband take-up and driving down | | | | save an average of £360 per year. So |
| prices." | | | | called "triple play" packages start from around |
| The downward pressure on broadband prices has | | | | £20 per month for all three services. Sky, |
| been enormous. In September 2005, the average | | | | Virgin Media, BT and Tiscali all have great value |
| cost of broadband over a copper home phone line | | | | triple play bundles. Virgin Media's entry level bundle |
| was £23.30 per month, but today it is only | | | | is just £14 per month (excluding line rental) |
| £13.61 for an equivalent service. This is a | | | | and Sky's is just £16.50 (excluding line |
| whopping 42% reduction and directly results from | | | | rental). |
| the competition unleashed by the LLU process. | | | | New deals launch almost every day, so it is vital |
| TalkTalk was one of the first companies to take | | | | to check that you are on the best broadband |
| advantage of LLU and sent shockwaves through | | | | deal, remember deals vary widely by postcode. |
| the market with their "free" broadband offer | | | | |