Faster broadband is essential for London

THE decision today by the media regulator Ofcom not to force BT to sell off its Openreach infrastructure division will inevitably disappoint those who blame the telecoms giant for the slow and sometimes erratic internet connections that large numbers of Britons endure.

Instead, Ofcom has told BT that it must convert Openreach into a legally separate company that will be required to act in the interests of all broadband users, not just the customers of BT. The regulator’s chief executive Sharon White claims that the reform will bring “faster, more reliable broadband” and more investment in the provision of fast fibre connections to people’s homes and businesses. She also insists that the change will bring faster improvements, potentially within months, than the more complicated selloff option favoured by BT’s rivals.

We hope she is right. The arguments about corporate structures will continue but what matters to Londoners is having better and faster broadband connections. Existing services are not good enough. Only this month the Commons Culture Select Committee said it was “startling” that homes and businesses “in the heart of London” had no access to superfast download speeds, warning that growth was being held back as a result, while a report last year placed this city 26th among European capitals for broadband speeds. Nationally, the situation is dire, with only two per cent of the UK receiving ultrafast broadband, via fibreoptic cable, compared with 70 per cent in Japan.

In its defence, BT insists that it has made progress and promises a further £6 billion investment in the next three years to keep Britain as the “most digitally advanced nation” in the G20. That sounds encouraging. As London prepares for Brexit every commercial advantage will be needed to ensure our future prosperity. Good technology infrastructure will be essential. Ofcom’s proposals promise to deliver that. But the regulator and the Government must stay vigilant and act quickly if improvements fail to arrive.