LLU enables Communications Providers to install their equipment in BT exchanges or nearby to connect customer lines or local loops to the Communication Provider's own networks.

Local Loop Unbundling is the process by which Communications Providers take control of the individual lines in the local network managed by the Openreach line of business which connect end users to the local telephone exchange. Renting this part of the network, dubbed the 'local loop', from Openreach enables these companies to provide a range of telecommunications and broadband services - either directly to homes and businesses or as a wholesaler to other Communications Providers.