Wireless Connectivity

Local Loop Unbundling

What is Local Loop unbundling?

• LLU stands for "Local Loop Unbundling" and this "local loop" is another word for the actual cable through which you receive your broadband, and telephone calls, based on the standard ADSL connection.



• The vast majority of local loops are owned by BT, the UK’s major telephone exchange. This is where the "unbundling" comes in; the term refers to the process which allows ISPs other than BT to use the local loops to provide you with your broadband connection.



• In most cases it is just the broadband element of the connection which is unbundled which is why you can receive broadband from one ISP whilst retaining a BT line for making telephone calls.



• This is how you can receive ADSL broadband from PlusNet, for example, whilst your next door neighbour has a contract with AOL. Basically it involves ISPs renting the telephone lines from BT and it is because of the financial agreement between the ISPs and BT that additional costs may be incurred, and these might be transferred on to you.



• Since the process began hundreds of thousands of local loops have been unbundled from BT, freeing them up for use by major ISPs. In particular AOL has been instrumental in the national unbundling; having paid BT £120 million to unbundle 100,000 lines they are now the UK’s largest LLU operator. Be Broadband are also champions of "unbundling" as they use super-fast ADSL2 technology not supported by a standard BT ADSL line.

The benefits of unbundling

• AOL, Be and other suppliers can install their own particular brand or style of broadband, with differing speeds and download limits to those offered by BT. For example, because AOL and Be are not just re-branding what is available from BT, they can design their own broadband to suit their customers meaning potentially faster and possibly cheaper deals for you the consumer.

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