Ofcom chief warns BT it could be broken-up if it doesn’t raise its game

BT MUST “up its game” and do more to help people who suffer from “poor, dismal or non-existent” broadband or it will be broken up, the head of Ofcom, the telecoms regulator, says today.

Sharon White, the chief executive of Ofcom, says that she shares the “anger and frustration” of millions of people who have to endure sub-standard broadband.

She said that she is prepared to retain the threat of breaking up BT even if it costs the company billions of pounds. Last week Ofcom attracted fury from MPs after it rejected calls to make BT sell off Openreach, its broadband division, which has a monopoly over the telecoms network.

Mrs White instead recom-

mended that Openreach should become a “distinct company” with its own board. But the proposals infuriated rivals such as TalkTalk, Sky and Vodafone, which say only a forced separation will guarantee that BT does not unfairly profit from its network monopoly.

Mrs White today says she is prepared to carry out the threat to break up BT, but would rather it focuses on improving its service. Writing in The Daily Telegraph, she says: “Some people think we should go further, splitting BT and Openreach completely. On paper, that looks like a simple solution to people’s broadband woes.

“But I’m convinced that our plan will give us the vast majority of the benefits but without risks and delay. Selling off Openreach would mean very significant disruption and costs, not just to BT but to the wider telecoms industry and consumers.”

She says that the effects of poor broadband service can be “profound”.

“To a small business, reliable broadband can mean the difference between survival and failure. For the elderly or vulnerable, broadband can be a lifeline preventing social isolation.”