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BT ordered to split from Openreach network, in Ofcom ruling BT ordered to split from Openreach network, in Ofcom ruling
(35 minutes later)
BT has been ordered to separate from its Openreach division, which run's the UK's broadband infrastructure, after the telecom giant failed to offer proposals that addressed Ofcom's competition concern. BT has been ordered to separate from its Openreach division, which run's the UK's broadband infrastructure, after the telecom giant failed to offer proposals that addressed Ofcom's concerns.
Telecom regulator Ofcom said creating a more independent Openreach, which works "in the interest of all providers, not just BT" - is an important part of improving broadband and telephone services across the UK. Telecom regulator Ofcom said creating a more independent Openreach, which works "in the interest of all providers, not just BT" -  was a key part of plans to improve broadband and telephone services across the UK.
“We are disappointed that BT has not yet come forward with proposals that meet our competition concerns. Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users,” Ofcom said.“We are disappointed that BT has not yet come forward with proposals that meet our competition concerns. Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users,” Ofcom said.
Ofcom said it is preparing a formal notification to the European Commission to start the process. “Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users,” the regulator added.
The regulator has resisted calls to split Openreach off entirely. Ofcom said it is preparing a formal notification to the European Commission to start the separation process.
Ofcom's move comes despite BT appointing a chairman for Openreach in a bid to make it more independent and transparent.  It is now proposing for Openreach to become a distinct company with its own board, with a majority of independent directors including the chairman not affiliated with BT.
Mike McTighe, an experienced telecoms executive and regulator who was on the Ofcom board, will take on the role in January.  Ofcom's announcement comes despite BT appointing a chairman for Openreach in a bid to make it more independent and transparent earlier this week.
He will oversee the new Openreach board - announced earlier this year - which the company hopes will help to ensure it treats all “customers equally whilst investing in better service, broader coverage and faster speed broadband”.  Mike McTighe, an experienced telecoms executive who spent eight years on the board of the communications industry regulator  before stepping down last year, will join Openreach in January, BT announced on Sunday.
More follows  The appointment was the first step in creating a board for the division that is comprised mainly of independent directors, a corporate governance overhaul that BT hoped would eventually appease calls for a break-up.
Sir Michael Rake, BT’s chairman, previously said: “I remain hopeful this significant move by BT can help to underpin a sustainable, proportionate and fair regulatory settlement that is in the interests of the whole country,” said Sir Michael Rake, BT’s chairman, 
Openreach is the division of BT Group that develops and maintains the UK's main telecoms network used by providers such as Sky, TalkTalk , Vodafone and BT's retail business.
Ofcom has so far resisted calls to split Openreach off entirely