The splitting of the networks and services division of BT to create a more competitive market has been praised by a European commissioner.

Viviane Reding, EU media commissioner, has stated that the success of the splitting of BT could be used as a template across Europe to boost the broadband market, the Financial Times reports.

The EU is currently investigating how to encourage investment in new ultra-fast broadband networks and adopting a similar methodology to that of BT's split is seen as one potential solution.

In 2005, BT agreed with industry regulator Ofcom to create an independent unit that is responsible for giving out space on the network to other internet service providers. BT still owns the division, which is obligated by Ofcom to treat competitors the same as its owners.

Uptake of broadband services has risen by 40 per cent since the BT split in 2005, according to figures released by Ofcom last week.


Thursday, 30th August 2007

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