Ofcom puts BT breakup on the agenda

Ofcom confirmed on Thursday it is considering a full separation of Openreach from BT as part of its Strategic Review of Digital Communications.

However, BT warned that breaking up the U.K. incumbent would lead to years of uncertainty and could delay its G.fast deployment.

Ofcom marked the conclusion of stage one of its in-depth investigation – launched in March – with the publication of a discussion document seeking input on four areas of focus: investment and innovation; targeted deregulation; giving consumers and businesses the information and means to switch service provider; and competition.

Separating Openreach from BT falls under that last topic, and is one of the options on the agenda as Ofcom assesses the state of competition and identifies potential areas requiring improvement.

"Our priorities are clear. We want to promote competition, investment and innovation, so that everyone benefits from even better coverage, choice, price and quality of service in years to come," said Ofcom CEO Sharon White, in a statement.

As well as a full separation, Ofcom will also consider applying new rules to BT, such as wholesale price caps, incentives to improve service, or tougher penalties should BT fall short. Promoting competition from alternative network providers and cablecos like Virgin Media is also up for discussion, as is maintaining the status quo, where Openreach is functionally separate from BT.

via www.totaltele.com