Openreach to be legally separate from BT
Ofcom has opted not to make BT sell Openreach, but significant reforms have been suggested by the watchdog.
The suggestions will make Openreach separate from its parent company legally, and its own board will be put into place. Ofcom has described these as “major reforms” of the largest telecoms provider in the UK. BT will not have to sell its infrastructure section, but the changes will provide Openreach with much more independence.
The watchdog has said that BT’s infrastructure section should be legally separated from the group. Ofcom’s chief executive, Sharon White, has stated that forcing BT to sell the section could take too long, although rival organisations want the two companies to be completely separate. These competitors believe that BT has not invested enough in Openreach.
Ms White spoke to the BBC, saying that Ofcom’s decision is much more practical than selling off Openreach, which could take years to achieve. She believes that significant change can still be implemented and that the company can offer faster broadband services with engineers arriving when needed and completing tasks on the first visit. Making Openreach legally separate could also have the effect of more investment in the provision of superfast broadband.
BT has said that the proposals will help to address a number of issues that have been raised by MPs. The group’s chief executive, Gavin Patterson, has said that the UK does need more investment if it wants to compete digitally on the world stage. The company is committing £6 billion to improving networks in the UK within the next three years.