Internet BT Openreach

BT released some big news this morning, announcing that it had finally given into the demands of the UK Regulator Ofcom to separate Openreach.

In a statement Ofcom said:

“Openreach will become a distinct company with its own staff, management and strategy “to serve all of its customers equally”.

Ofcom has actually threatened to force BT to separate Openreach legally.

BT CEO, Gavin Patterson in a statement said:

This deal, reached after two years of negotiations with Ofcom, meant Openreach would have its own board and make its own investment decisions. However, the BT board will set the annual budget. As the 100% shareholder, the owner of the company that’s not unreasonable.”

Some of BT’s biggest rivals including Sky and Vodafone, which use Openreach’s network which enables them to broadband to their customer, have been complaining of high charges, inadequate service and failure to invest in the Openreach division.

All of Openreach’s 32,000 staff will transfer from BT to allow the new business to “develop its own distinct organisational culture” which also includes removing the logo from all Openreach’s branding.


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