BT has bowed to pressure from Ofcom and announced price reductions for local loop unbundling (LLU).

It means that competing services will be able to enter BT telephone exchanges and install their own equipment. The competing services will then be able to offer their own broadband and high-speed services without having to pay BT for each customer, as they do if BT equipment is used.

Ofcom hopes that simplifying LLU will stimulate competition in the wholesale broadband sector.

According to a Digital Lifestyles report, cutting the cost of LLU will encourage the deployment of more third party equipment in BT's exchanges, giving more choice to UK customers.

As if to prove how serious they are about it, BT is appointing an LLU director of ceremonies, notes Digital-Lifestyles.

NTL and Cable & Wireless (Bulldog) have already announced multi-million-pound plans to invest in LLU in the UK.