Local Loop Unbundling (LLU)
Local Loop Unbundling (LLU) refers to the copper cables in your local telephone exchange being routed through a lower than normal cost service. A local loop is a term for the cable where you will receive your broadband service and telephone calls.
Competition and variety
It’s also known as the ‘last mile’ – these were all under the authority of BT until 2001, when the company was ordered to unbundle them and let other companies rent them, to encourage competition and innovation. Several different Internet Service Providers (ISPs) will share the same phone lines, but the services they offer will differ dramatically, giving you a choice.
This is great news for consumers, because with all of these companies trying to compete for you, they’re all offering lower prices, better packages and more added extras. Here at iData, we love competition, and we know how important it is for business’ to get low-cost broadband. Any cost that you can cut will always be a massive help.
Local is an important aspect of LLU – sometimes, you won’t be able to get broadband with certain ISPs, because they don’t operate in the geographical area where your business is.
BT is the main owner of local loops in the UK – other broadband providers rent the lines to be able to sell their packages to you. Unbundling is the process of letting ISPs provide their own broadband service on a rented line. Because ISPs can install their own hardware on the line, they can radically change the speed, download limits and other features of the broadband, meaning that they can offer something different to BT, which fuels competition.
What does this mean for you?
Businesses will see a lot of benefits from LLU. The four main benefits of LLU are:
- Speed– Deliver faster broadband with additional features. Speeds will vary between providers due to a range of factors, such as your distance from the nearest exchange. Download and upload speeds will help employees collaborate faster and with greater efficiency, they’ll also be able to stream video and browse the web much faster.
- Price – LLU broadband suppliers can manage their costs. Because they are using their own technology and equipment they have more flexibility on price over other providers. Here at iData, we want you to get the best deal possible for your budget and LLUs will absolutely help you achieve this.
- Variety – With more ISPs, you’ll get a much wider choice of packages, prices and features. You can get the perfect package for your budget and business needs and we can help you choose it. We’ve got no vested interest in any particular ISP, so we’re perfectly suited to get you the best deal possible.
- Quality – More competition means that ISPs will work hard to provide the best service they possibly can, at lower prices. They know that you could easily switch to any of the other ISPs on the local loop if you feel unsatisfied with the service you are receiving or you see a better deal.