This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-36891446

The article has changed 9 times. There is an RSS feed of changes available.

Version 1 Version 2
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, Ofcom said its plans would ensure the most 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. The changes will help get faster, more reliable broadband to more people, Ofcom boss Sharon White told the BBC.
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". BT's Openreach should have its own board, branding and control over its budget allocation, Ofcom ruled.
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. Ms White told the BBC's Today Programme that a full split looks "clean and simple on paper", but "actually there are big practical challenges".
"We've announced the biggest shake-up to Openreach in its 10-year history," she told the BBC's Today programme. The 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.
BT said structural separation of Openreach would be "disproportionate", and said it welcomed Ofcom recognising that.
However, the government said it was "right that full structural separation remains an option".
A Department for Culture, Media and Sport spokesman added that "a more independent Openreach is needed to benefit consumers".
'Powers'
"We need more fast fibre right to the doorstep," Ofcom boss Sharon White said. Take-up in the UK is only 2%, compared with 70% in Japan, she said.
Calling it the "biggest shake-up to Openreach in its 10-year history", Ms White said the changes would ensure the broadband network is run in the interests of the UK not just BT.
"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.""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". 'Feet to the fire'
Lawmakers argued the firm should be broken up unless it pumped more investment into the vital infrastructure. The regulator will now consult on its plans until 4 October.
Openreach runs the wires and cables for the UK's telecoms network and its customers include Sky and Talk Talk, as well as BT.
Jeremy Darroch, chief executive of Sky, said: "We are encouraged by Ofcom's stated commitment and willingness to use its powers to hold BT's feet to the fire."
The 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 BT pumped more investment into the vital infrastructure.