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Thursday, February 25, 2016

Ofcom: BT Must Open Up Its Openreach Network

The company that run's the UK's broadband networks must be opened up to more competition, Ofcom has said.

Openreach provides the final mile of network connection into consumers' homes, and is used by rival operators.

Last summer, Ofcom, the communications watchdog, reignited the debate about the future of BT's infrastructure arm¿ by floating the prospect of its physical separation as part of a wider review of digital communications.

On Thursday, it stopped short of recommending splitting the business away from BT, but said it needed to be reformed to offer consumers and businesses a choice of networks and a better quality of service - including automatic compensation when things go wrong.

Announcing the findings from Ofcom's first significant review of the telecoms sector for a decade, chief executive Sharon White said: "Openreach must open up its network of telegraph poles and underground tunnels to allow others to build their own, advanced fibre networks, connected directly to homes and offices.

"This will help create more choice, while reducing the country’s reliance on Openreach."

Ofcom said evidence showed Openreach "still has an incentive to make decisions in the interests of BT, rather than BT's competitors, which can lead to competition problems".

It said it had not ruled out full structural separation, but was looking at ways to achieve the same goals more quickly and with potentially less disruption to consumers.

The wide review examined competition, investment, innovation as well as the quality and availability of all digital communication services including broadband, mobile and landline services.

Ms White said the UK must "do better" rolling out superfast broadband and 4G.

She added the watchdog's proposals aimed to ensure people up and down the country who do not have decent mobile or broadband coverage "get the reliability, quality and speeds they need".

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