Control of Openreach called into question

By Qubic Administrator 3 years agoNo Comments
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BT and rival companies are giving evidence to Ofcom this week as part of the review of the telecoms sector and the future of Openreach.

TalkTalk, Sky and Vodafone are all in favour of Openreach being brought out of the control of BT, as they believe this will make the marketplace more competitive. They believe the decision made by the regulator could affect the industry for the next 10 years and that BT is not producing the right speeds and levels of reliability.

The chief executive of TalkTalk, Dido Harding, said this is the point at which the country should be planning its infrastructure for the next 100 years rather than only thinking about the next few years. Rivals believe that the separation of Openreach and BT is essential.

BT has managed to win support from the government, with Ed Vaizey stating that he thinks separating Openreach is not a good idea. BT chief Gavin Patterson has already stated that the company will be investing a great deal more in residential and business broadband services.

The consultation with Ofcom is set to end this week and the separation of Openreach from BT is just one option being considered. BT currently earns around £1.5bn each year from Openreach, with the latter reluctant to part from BT due to the enhanced access to capital; however, there are still complaints being made about services by both the residential and the business sector.

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  Industry News, Regulatory
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