Local loop unbundling: Inaction or failure?

The broadband policy announced by the Government of India rejects local loop unbundling with the minister saying that that even developed countries like the US do not permit it.

However, the International Telecommunications Users Group (INTUG), an association of national telecommunications users associations has a different take on this issue:

"INTUG welcomes actions taken by governments to achieve the effective unbundling of access to the local loop. There is now a broad consensus amongst industrialised countries that this is the correct policy to pursue.

The success of the policy relies on the conscientious and diligent efforts of the regulator and the competition authority. This is necessary to counter the efforts of incumbent operators which have been directed at frustrating the policy by first blocking, then spoiling the efforts of competitors.

There will remain an imbalance in the relative powers of the incumbent operators and those negotiating with them for access. Good dispute resolution procedures help, though they are not enough. The judicious and timely intervention of the national regulatory authority or the national competition authority are a vital counterbalance.

The supply of ADSL is growing and users are beginning to see the benefits. However, availability remains patchy and the prices are often too high to create substantial markets. The variability in prices is hard to explain. Other forms of xDSL appear to be developing, but only very slowly.

There is considerable value in comparative data, both within and between countries. This helps to inform markets and regulators about the extent to which they are succeeding in creating demand for services from the unbundling of the local loop."

Wonder who is right!