The changes Reaching out to dissatisfied customers

Q What is Openreach?

A A subsidiary of BT which was established in 2006 following an agreement between BT and the UK’s telecoms regulator Ofcom, to ensure rival telecom operators had equal access to BT’s local broadband network. Openreach owns the pipes and telephone cables that connect nearly all businesses and homes in the UK to the national broadband and telephone network which are used by more than 30 million customers in the UK.

Q Why is Openreach being separated from BT?

A BT has been accused of using Openreach to gain a market monopoly, allowing it to unfairly profit at the expense of customers. Broadband coming from Sky, TalkTalk, or BT itself, flows through fibre-optic cables and copper wires that are owned and maintained by BT and Openreach. Openreach has become highly controversial as it has been accused of slowing down broadband speeds. It is reported to have underinvested in the UK’s broadband infrastructure, charged high prices and provided poor customer service for many years.

Q How badly have people’s internet connections been affected?

A In January, research found around 5.7 million broadband customers in the UK had internet connections that did not reach the telecoms regulator’s acceptable minimum speed of 10Mbit/s. Around 3.5 million lived in rural areas. In 2009 2.5 million British homes were promised they would be connected to ultra-fast fibre broadband by 2012. However, by the end of September 2015 only 250,000 homes were connected.

Q How bad has customer service been?

A Earlier this year BT, which recently merged with EE, was rated the worst company for customer services by Ofcom. In January through to March, 34 out of every 100,000 EE broadband customers complained to their provider, and 31 out of 100,000 BT broadband customers, the highest rates in the industry. The combined company has 10 million broadband customers.

Q What do Ofcom’s proposed reforms mean?

A Ofcom has proposed a package of changes that will see Openreach further separated from its parent, BT in order to reduce the monopoly effect. Although it will allow BT to continue to own Openreach, it wants the division to be very distinct. It means Openreach will become legally separate from BT. It will be a separate distinct company within BT, with its own board and customers. Its internal deals also will be kept secret from BT. Ofcom also wants the new company to consult with providers when it makes big investments in broadband and employ staff directly so there are no conflicting loyalties. Openreach will get a new brand and logo so people don’t associate it with BT.