Openreach to Split With BT

Ofcom, the telecoms regulator, has just announced that BT will legally separate itself from Openreach, which is responsible for the UK’s broadband infrastructure. This move is designed to allow all internet providers to better meet customers’ demands.

BT Group will still own Openreach, but it will become a distinct company with its own board, strategy and branding. Openreach will have 32,000 employees transferring to work for the newly-formed Openreach Limited and will also have its own branding that will not feature the BT logo.

Openreach builds and maintains the tens of millions of copper and fibre lines that run from telephone exchanges to homes and businesses across the UK

Under the current arrangement, there was concern BT had too much control over Openreach’s decisions while rivals such as Vodafone, Sky and TalkTalk, who use the network, complained they were not consulted sufficiently on plans that affect them

 

 

 


 

Ofcom boss Sharon White told BBC Radio 4’s Today programme that “we can now expect better service from Openreach” “As a result, Ofcom will no longer need to impose these changes through regulation. The reforms have been designed to begin this year.

Ms White called it a “significant day” for phone and broadband users and pledged to “carefully monitor” how the revamped Openreach performs.

 

Sky welcomed the announcement: “A more independent Openreach is a step towards delivering better service to customers and the investment that the UK needs.

It’s important that today’s agreement is now implemented by BT in good faith and without delay.”

 

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