BT ordered to legally split from Openreach by Ofcom

[V_R]

Telecoms regulator Ofcom has ordered BT to legally separate from its Openreach division, which runs the UK's broadband infrastructure.

Openreach should become a distinct company within the BT group, the regulator said.

BT had not voluntarily addressed competition concerns Ofcom laid out in July, it said.

However, BT said its proposals were "fair and sustainable", and that it would continue negotiating with Ofcom.

The regulator said it was preparing a formal notification to the European Commission to start the separation process.

Ofcom has resisted calls to split Openreach off entirely, which telecoms rivals have sought.

Ofcom said BT had not gone far enough to address its concerns about BT's ability to favour its retail business when making investment decisions in Openreach.

It wants Openreach to become a distinct company with its own board, with non-executives and a chairperson not affiliated with BT. It also wants Openreach to have control over its branding and budget allocation.

Openreach would also have a duty to treat all of its customers equally, the regulator said.

Source: http://www.bbc.com/news/business-38141510

In my opinion this doesn't go far enough, they needed to completely separate them.

 

[Ian]

I'm really surprised they were able to have Openreach as part of BT in the first place . I don't know how they could operate them separately and fairly the way it was before. We've got a strange setup with the way things have been privatised, but perhaps better than places like the US that have little choice with providers.

 

[Becky]

About time too!

 

[floppybootstomp]

A monopoly has been nibbled at. Just a shame a big bite is needed.

I wonder if Openreach were completely independent they'd be any better and maybe lose some of their arrogance?