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What is LLU broadband?

Our Broadband Expert says...

Before local loop unbundling (LLU), 96% of people took their landline from (www.BT.com) as the incumbent operator. But in 2005, the provider came to an agreement with telecoms regulator Ofcom to allow rival suppliers to install their own equipment in telephone exchanges - a process known as LLU.

Today, some 70% of Brits take their landline from a supplier other than BT, showing just how much competition LLU has brought to the broadband and phone markets.

What is LLU?

Broadband that is delivered through your copper telephone line is known as “ADSL” - but there are different types of ADSL technologies.

One of these is known as local loop unbundling, or LLU, and is essentially the process where a broadband provider installs its own equipment in the local telephone exchange.

This allows your new supplier to take over the line between the exchange and your home - and depending on who you sign-up with, you'll either pay your new provider for broadband or broadband and line rental.

Benefits of LLU

One of the major benefits of local loop unbundling is the greater competition it has brought to the market, which in turn has helped to bring broadband prices down. There has been a 52% drop in the cost of broadband since 2005, according to Ofcom.

LLU also means that you'll have greater choice. If you live in an area only serviced by BT, that hasn’t yet been unbundled and doesn’t have access to the Virgin Media (www.Virginmedia.com) cable network, then you will have very limited provider options.

You might even have to pay more for your connection if you live in what Ofcom calls “market 1”. This is defined as “exchanges where only BT is present” and covers 14.2% of premises.

But with 85% of premises now able to access at least one LLU provider, and TalkTalk planning to extend this to 93% of its own network over the next 2-3 years, millions of homes now benefit from cheaper broadband.

Also, when a provider installs new equipment in the exchange, it will often upgrade the technology used to deliver your broadband too. This means that if your area only gets speeds of up to 8Mb broadband at the moment, having your exchange unbundled might also bring this up to a maximum of 20Mb or 24Mb broadband.

Disadvantages of LLU

As great as local loop unbundling sounds, it doesn’t come without drawbacks - many of which go unnoticed until you try to switch provider again.

By signing up to a provider that supplies both your broadband and your landline - so you're no longer paying BT for your line rental - you'll be completely leaving the BT network.

If you want to switch back to BT, or another provider that offers its services over the BT network, you could end up having to pay up to £130 to move your landline back.

Other providers do charge different rates to install a new line though, while BT also offers reductions down to as little as £30 when you take a call plan as well - so, it does pay to shop around a bit.

You might also have a break in your connection when you switch away from an LLU supplier. Unlike standard copper wire connections, which use MACs (migration authorisation codes) to allow seamless switching, you might have to cancel your LLU service and then have your new line and provider installed. So, make sure you find out what the process will be before you switch.

Should you switch to LLU?

The decision about whether or not to switch to an unbundled provider like TalkTalk broadband (www.Talktalk.co.uk) or O2 broadband (www.O2.co.uk) has to be yours - and should be based on your broadband needs rather than cost alone.

But at the same time, this doesn’t mean that an attractively-priced package won’t suit your needs. For example, TalkTalk Essentials deal currently costs just £3.25 a month plus line rental for 12 months (normally £6.99) and comes with:

• Speeds as fast as your line can handle (up to 24Mb)
• 40GB download allowance
• Free wireless router
• Evening and weekend calls to UK landlines, 0845 and 0870 numbers
• Unlimited calls to other TalkTalk customers and 10% off calls to 16 mobile and international numbers.

You should also consider O2 if you're looking for a particularly high standard of customer service, with free, UK-based helplines. You'll even get a discount if you're an existing O2 mobile customer.

Finally, if you're looking for an all-in-one deal that bundles your broadband with calls, line rental and digital TV, then Sky broadband (www.Sky.com) is the only LLU provider to offer all these services, though both BT and Virgin Media also offer triple play bundles.

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