Faster internet hope as BT forced to hive off broadband firm

MILLIONs of families could benefit from faster internet after BT is forced to hive off the business that runs the UK’s broadband and phone cables.

Openreach is responsible for rolling out the fibre-optic cables needed to speed up broadband services.

But BT and Openreach have been accused of ‘woeful’ service and of failing to invest enough money in the highspeed network.

Only 2 per cent of families have fibreoptic cables connected to their home. The proportion is more than 70 per cent in south Korea and singapore.

Even in Europe, the figure is 45 per cent in Latvia, 40 per cent in sweden and Lithuania, and more than 25 per cent in Bulgaria and Romania.

Now telecoms regulator Ofcom has forced BT to give Openreach more independence, with its own management and board. Ofcom chief executive sharon White insisted the new arrangement will deliver better services.

‘This is a significant day for phone and broadband users,’ she said.

‘The new Openreach will be built to serve all its customers equally, working truly independently and taking investment decisions on behalf of the whole industry – not just BT. We will carefully monitor how the new Openreach performs, while continu- ing our work to improve the quality of service offered by all telecoms companies.’

BT has come under fire for spending billions of pounds on Premier League and European football for its pay TV services rather than ensuring properties get decent broadband.

The net effect is that families and businesses suffer shocking internet speeds – rendering emails, surfing the web, watching pay TV and doing business online a frustrating ordeal.

Openreach, which is also responsible for repairing and installing lines to homes and businesses, has been accused of favouring BT customers over those of firms such as sky, TalkTalk and Vodafone which run services via the cables.

It is hoped a more independent Openreach will invest more and treat all customers equally. Critics wanted Ofcom to go further and force BT to effectively sell off Openreach, severing ownership ties completely.

Virgin Media offers high-speed broadband in some parts of the country. Its chief executive, Tom Mockridge, mocked the proposals, saying: ‘Openreach is just the same old snail’s paced network with a new shell.

‘Call it what you like but it’s still BT – four times slower than Virgin Media.’

The managing director of Home services at consumer group Which? Alex Neill said: ‘Millions of people have suffered woeful levels of service from Openreach, so these reforms must lead to significant improvements for customers who have been let down for too long.

‘Telecoms are now an essential part of our daily lives, so it’s vital that consumers now really do see better phone and broadband services.’

sky, which provides phone, internet and pay TV over the BT cables, welcomed the change in the running of Openreach.

A spokesman said it was ‘a step towards delivering better service to customers and the investment that the UK needs’.

‘It’s important today’s agreement is implemented by BT in good faith and without delay,’ they added.

Dido Harding, departing chief executive of TalkTalk, said: ‘This deal will require robust Ofcom monitoring and enforcement to ensure it delivers the improvements the regulator expects. We hope this is the start of a new deal for Britain’s broadband customers, who will be keen to see a clear timetable from Openreach setting out when their services will improve.’

some 32,000 staff will now be formally employed by Openreach, rather than BT.

But the new management structure means BT will still receive income and profits generated by Openreach, which has been a cash cow for the company. This was welcomed in the City where shares in the business rose by more than 5 per cent in early trading yesterday.

BT chief executive Gavin Patterson said: ‘We have listened to criticism…and as a result are willing to make fundamental changes to the way Openreach will work in the future.’

‘Improve quality of service’