The consultation document on a new wholesale line rental product is the result of extensive discussions with the industry and consumer groups.

To ensure that the new product meets the needs of consumers and service providers Oftel proposes that:

• customers deal only with their new service provider, receiving one bill and dealing directly with them to resolve any queries or complaints;
• BT must provide an agreed level of technical support, so any faults and complaints are dealt with quickly and efficiently and customers get the same level of service as BT customers;
• calls to operator services such as 151 are connected directly to their service provider rather than having to go through BT.

Oftel's proposals aim to further boost competition in the increasingly competitive fixed line market.

In August Oftel introduced a new price control on BT's retail prices to reduce customers' bills by the rate of inflation each year. The control will be revised to one which limits prices to the rate of inflation once the new wholesale line rental product has been fully implemented by BT and is being used by other companies to provide services.

David Edmonds, Director General of Telecommunications said today:

"Oftel's proposals will give even greater choice to consumers in the increasingly competitive fixed line market.

"Independent research shows that over two million lines could be switched to this service in the first two years after launch.

"Consumers will get a new telephone service covering calls and bills, completely separate from BT.

"New service providers will receive the same level of technical support as BT does, leaving them free to compete on price and customer service.

"Consumers are already switching to alternative service providers, with around 2.5 million homes using indirect access services to switch their calls onto cheaper networks.

"These proposals mark an important development in service competition and we are working with many new suppliers interested in entering the market, from large household names to smaller specialist providers.

"I am grateful to all those concerned for working constructively to develop a successful product that meets the industry and consumer expectations."

The enhanced line rental product is likely to be available to service providers by the end of next year