Openreach must be 'distinct' company within BT, says watchdog

BT has avoided a full break-up with Openreach, its wholesale network, after an Ofcom review into the UK's broadband.

Openreach: must become a distinct company and brand from BT
Openreach: must become a distinct company and brand from BT

The watchdog called for Openreach to become a "distinct" company that is "legally separate" from BT with its own board and its own brand.

BT's wholesale division supplies broadband infrastructure for ISPs including Sky and Plusnet, despite the fact BT itself offers a broadband service.

The changes should mean Openreach engineers will "turn up on time", that BT will invest in infrastructure and that rivals will have access to BT's high-speed fibre network, according to Ofcom chief executive Sharon White. The reformed Openreach will have to consult with its customers on major investments.

But Ofcom has resisted calls from rivals to split off Openreach completely, despite MPs warning that this would relegate millions to poor broadband service.

In January, MPs found 5.7 million people do not receive minimum speeds as determined by the watchdog, due to poor service from Openreach.

Ofcom is seeking views on its proposals by 4 October.

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Why Cosabella replaced its agency with AI and will never go back to humans
Shares0
Share

1 Why Cosabella replaced its agency with AI and will never go back to humans

In October, lingerie retailer Cosabella replaced its digital agency with an AI platform named "Albert". Since then it has more than tripled its ROI and increased its customer base by 30%.

Just published

More