BT rivals back call for reform
BT HAS hit back at rivals who have renewed calls for a radical reform of the telecoms giant’s Openreach phone and broadband network business to boost the UK’s digital communications.
Sky, TalkTalk, Vodafone, the Independent Networks Cooperative Association and the Federation of Communication Services have sent a joint open letter to Ofcom setting out a 10-point plan for a more independent Openreach.
The regulator recently opted against recommending Openreach become a fully independent firm in its review of the communications market but reserved the right to require BT to spin it off. Rivals have long complained of insufficient investment by BT in maintaining and upgrading the UK’s broadband network.
In their letter they called for Openreach to become a legally separate firm with an independent board and full control and ownership of its assets. It also said it should have its own corporate identity and brand and be able to make its own investment decisions, as well as provide services on the same basis to any customer. The rivals added: “We agree with Ofcom the status quo cannot be allowed to continue over the next 10 years, given the critical importance of the UK’s digital communications infrastructure. “The national network has to be able to deliver the world-class connectivity that Britain needs, enabling a dynamic market where all industry players can invest and compete on a level playing field... Reform is crucial.” BT, led by chief executive Gavin Patterson, said it was discussing with Ofcom “constructive ideas to further enhance the independence of Openreach from the rest of BT Group”. It added: “Key suggestions made by other companies seem incompatible with the legal responsibility the board of any listed company has when it comes to stewarding shareholders’ money responsibly.”