Since 2006 BT has been running Openreach as a subsidiary, but today Ofcom announced that they have ordered the BT Group to split from Openreach.
This news comes after BT failed to offer voluntary proposals relating to competition after Ofcom offered them with the opportunity to make proposals of how the regulator’s concerns could be met.
BT failed to do this and so Ofcom has ordered the two to separate.
Here’s what Ofcom said about it:
Ofcom is pressing ahead with its plans to improve broadband and telephone services for people across the country, pursuing better service quality and encouraging greater investment in networks. Creating a more independent Openreach – which works in the interest of all providers, not just BT – is an important part of achieving this.
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 wants to create a more independent Openreach that works in the interest of all of the providers in the UK, not just BT.
Currently, Openreach is responsible for the telephone and broadband infrastructure throughout the UK which is used by a number of providers, including Sky, TalkTalk, Vodafone, and BT.
Virgin Media owns and manages their own infrastructure.
This is great news for all broadband and telephone customers in the UK and it should mean better services, more competition, and lower prices.
You can read more about it at the source link below, where Ofcom has set out their own plans for the future of Openreach.