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BT 'should be forced to sell Openreach service', report says BT should be forced to sell Openreach service, report says
(about 4 hours later)
BT should be forced to sell the country's leading broadband provider because of poor performance, a report backed by 121 cross-party MPs has said.BT should be forced to sell the country's leading broadband provider because of poor performance, a report backed by 121 cross-party MPs has said.
The report, commissioned by ex-Tory chairman Grant Shapps, said BT's Openreach service had only partially extended superfast broadband despite £1.7bn of government money.The report, commissioned by ex-Tory chairman Grant Shapps, said BT's Openreach service had only partially extended superfast broadband despite £1.7bn of government money.
It should be sold off to increase competition, the report added.It should be sold off to increase competition, the report added.
BT said Britain had better broadband provision than most EU countries.BT said Britain had better broadband provision than most EU countries.
Openreach, a BT subsidiary, operates the main system of cables which connect homes and businesses to the internet.Openreach, a BT subsidiary, operates the main system of cables which connect homes and businesses to the internet.
Mr Shapps's report suggested that 400,000 small and medium sized companies still did not have access to superfast broadband, and more than five million people were receiving unacceptable download speeds.Mr Shapps's report suggested that 400,000 small and medium sized companies still did not have access to superfast broadband, and more than five million people were receiving unacceptable download speeds.
He has said he wants the telecoms regulator Ofcom to force BT to sell off Openreach to open up competition. He said he wanted the telecoms regulator Ofcom to force BT to sell off Openreach to open up competition.
'Wrong-headed''Wrong-headed'
"We deserve better. We should be leading the world on digital investment and innovation," the report said."We deserve better. We should be leading the world on digital investment and innovation," the report said.
"Instead we have a company that clings to outdated copper technology with no long-term plan for the future.""Instead we have a company that clings to outdated copper technology with no long-term plan for the future."
A BT spokesman told the Daily Telegraph: "Ofcom, the EU and others repeatedly place the UK number one for broadband and superfast broadband when compared to other large EU countries.A BT spokesman told the Daily Telegraph: "Ofcom, the EU and others repeatedly place the UK number one for broadband and superfast broadband when compared to other large EU countries.
"The idea that there would be more broadband investment if BT's Openreach infrastructure division became independent is wrong-headed. As a smaller, weaker, standalone company, it would struggle to invest as much as it does.""The idea that there would be more broadband investment if BT's Openreach infrastructure division became independent is wrong-headed. As a smaller, weaker, standalone company, it would struggle to invest as much as it does."
A spokesman for Department of Culture, Media and Sport said 95% of the UK would have access to superfast broadband by next year, so the report was "misleading".A spokesman for Department of Culture, Media and Sport said 95% of the UK would have access to superfast broadband by next year, so the report was "misleading".
The UK government has promised that internet providers will be legally obliged to provide broadband speeds of 10 megabits per second to everyone who wants it by 2020.The UK government has promised that internet providers will be legally obliged to provide broadband speeds of 10 megabits per second to everyone who wants it by 2020.
But in December, Ofcom chief executive Sharon White said it was unacceptable that 2.5 million homes still did not have access to this. In December, Ofcom chief executive Sharon White said it was unacceptable that 2.5 million homes still did not have access to this.
Ofcom completed the first phase of its digital communications review in the summer and is expected to report its recommendations next year.Ofcom completed the first phase of its digital communications review in the summer and is expected to report its recommendations next year.