BT to make Openreach more independent

BT is set to make its Openreach division more independent, giving it powers to improve its investments into broadband.

 

BT is set to make its Openreach division more independent, giving it powers to improve its investments into broadband.

The provider claimed that Openreach will now operate with its own independent board, allowing it to choose a wider variety of investment. 

The move comes after consumer watchdog Ofcom said that BT should be more independent from its fibre network, something that other providers also use. 

Providers such as Virgin Media and Sky have put pressure on BT to split from Openreach as well as accusing BT of not investing enough into the UK’s broadband infrastructure.

Whilst this is not a complete split, the move will allow other providers to have more say into how Openreach is run. 

Ofcom is due to release more findings which will dictate how it should be run going forward.

Speaking on BBC Radio, Ofcom’s chairman said that Openreach needed more transparency in order to function properly. 

“We need to improve the transparency, we’re absolutely willing to form an Openreach board that would have an independent chairman, a majority of independent directors.”

“We’re willing to give more authority to Openreach in determination of its capital investment programme.”

Critics have said that Ofcom has not gone far enough by not forcing BT to split from Openreach, citing the spending of money on BT Sport rather than its broadband infrastructure as an example of the provider’s issues.

Source: Guardian

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