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Ofcom orders BT to legally split from Openreach

29th Nov 16 9:29 am

What’s next for Openreach?

Ofcom, a telecoms regulator has ordered BT to legally split from its Openreach division, it runs the UK’s broadband infrastructure.

The regulator has said that Openreach should become its own distinct company within the BT group.

BT had not addressed any competition concerns which were outlined by Ofcom in July.

Ofcom has begun the process of preparing a formal notification to the European Commission.

Telecoms rivals suggested that Openreach should be split off entirely.

The regulator wants Openreach to become its own distinct company with its very own board. As well as non-executives and a chairperson that is not affiliated with BT. It also wants to see Openreach have control of its own branding and budget allocation.

Openreach would have a duty of treating its customers equally, Ofcom said.

BT chairman Sir Michael Rake told the BBC: “We promised in July to create an Openreach Board and we are delivering on that promise.”

“I remain hopeful this significant move by BT can help to underpin a sustainable, proportionate and fair regulatory settlement that is in the interests of the whole country.”

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