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Openreach should be 'distinct within BT' | Openreach should be 'distinct within BT' |
(35 minutes later) | |
BT's Openreach division, which runs the UK's broadband infrastructure, should become a distinct company within the BT group, according to regulator Ofcom. | BT's Openreach division, which runs the UK's broadband infrastructure, should become a distinct company within the BT group, according to regulator Ofcom. |
The media watchdog has resisted calls from BT's competitors to split Openreach off entirely. | The media watchdog has resisted calls from BT's competitors to split Openreach off entirely. |
Instead, Openreach should have its own board, branding and control over its budget allocation, Ofcom ruled. | Instead, Openreach should have its own board, branding and control over its budget allocation, Ofcom ruled. |
Ofcom said this would give the greatest independence from BT without the costs of a full separation. | Ofcom said this would give the greatest independence from BT without the costs of a full separation. |
Sharon White, Ofcom's chief executive, told the BBC that a full split looks "clean and simple on paper", but "actually there are big practical challenges". | |
The regulator's plans will make Openreach a legally separate company and "can be introduced within months", rather than the years that a sell-off would involve, Ms White said. | |
"We've announced the biggest shake-up to Openreach in its 10-year history," she told the BBC's Today programme. | |
"If BT doesn't agree, we will use the rules and powers to enforce the change," she added. "We have the powers, we're clear we have the powers." | |
Ofcom's plans come after MPs last week criticised the quality of service offered by Openreach, and said BT must put its "house in order". | |
Lawmakers argued the firm should be broken up unless it pumped more investment into the vital infrastructure. | Lawmakers argued the firm should be broken up unless it pumped more investment into the vital infrastructure. |