BT ordered to open up Openreach network to rivals
Ofcom has said that BT is to allow rivals to use its Openreach network to help to improve internet connections in the UK.
The communications watchdog has not said that Openreach would have to be separated from BT, but it is keeping an open mind on this option. BT has responded by saying that it is happy for other companies to use its network if they want to invest in its infrastructure.
The report from Ofcom also states that there is a strong “digital divide” in the UK, with some having access to the latest technology and others not. Ofcom is proposing that good-quality broadband at an affordable level should be a right rather than a luxury.
Other companies have been calling for BT and Openreach to be separated. Organisations such as Sky and Vodafone believe that BT has not invested enough in its Openreach arm, which has led to a below-par service. Rivals will now be able to put down their own fibre cables using underground cable ducts and telegraph poles put into place by Openreach.
The watchdog is also planning new, tougher regulations on repairs, installations and faults. It wants BT to govern Openreach at “arm’s length,” giving it more independence and more control over its own budget, strategy and investment. Ofcom admits that “major reform” is needed for Openreach, and it needs to answer to all customers rather than just BT. The report states that the right to separate the two entities is being reserved.