Ofcom Orders BT To Split From Openreach

Ofcom has announced that it has ordered BT to split from Openreach as the company has failed to offer voluntary proposals relating to competition.

Openreach is responsible for the telephone and broadband infrastructure throughout the UK and Ofcom obviously feels that British Telecom can no longer be in charge of this.

Openreach is the division of BT Group that develops and maintains the UK’s main telecoms network used by providers such as Sky, TalkTalk, Vodafone and BT’s retail business.

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.

Ofcom has given BT the opportunity to come up with proposals on how their competition concerns could be met, BT have failed to do this so the two companies will now be separated.

This is great news for broadband and telephone customers in the UK as it should lead to more competition and possibly lower prices.

Source Ofcom