Business

Rivals welcome Ofcom ruling that BT must open up Openreach

BT has been told it must open up its Openreach network to competitors
BT has been told it must open up its Openreach network to competitors BT has been told it must open up its Openreach network to competitors

TELECOMS giant BT has been told it must open up its cable network to competitors after regulator Ofcom concluded the UK must "do better" at rolling out superfast broadband and 4G mobile.

The communications watchdog said BT must open up Openreach, which provides the final mile of network connection into consumers' homes, to allow rivals to build their own advanced fibre networks connected directly to homes and offices.

And while the regulator has so far stopped short of demanding a complete break-up, it stressed this was still an option.

Ofcom said there was a "digital divide" in the UK between those with the latest technologies and those without and proposed that "decent, affordable broadband" should be a universal right.

Rivals had called for a split between BT and its Openreach operation, which runs its cables, fibre and network infrastructure.

Companies including Sky, Vodafone and TalkTalk, who pay to use the network, claim BT under-invested in Openreach, leading to a poor service with interruptions and slow speeds.

Yesterday TalkTalk chief executive Dido Harding said Ofcom had "done well" in identifying many of the worst problems, including recognition that BT's control of Openreach created a "fundamental conflict of interest" which "hurt" consumers.

"But, having accepted all this, Ofcom has produced 100 pages of consultation with little concrete action behind it," he added.

"The risk is that we end up with 10 more years of debate and delays, rather than facing into the problems and delivering improvements for frustrated customers now."

A Sky spokesman said: "We welcome Ofcom's recognition that the current Openreach model is not working and that fundamental change is required.

"BT must now be held to account for improving service and enabling delivery of fibre to Britain's homes and businesses."