Home
 » ISP News » 
Sponsored

BT Chairman Confirms Offer of Independent Openreach Board

Monday, July 25th, 2016 (9:39 am) - Score 997
bt openreach logo uk

The Chairman of BT Group, Sir Michael Rake, has today confirmed that the operator is in the process of making a legally-binding offer to the national UK telecoms regulator that could result in Openreach creating a largely independent board with greater control over future investment and strategy.

The move is part of an attempt by BT to avoid an outcome from Ofcom’s recent Strategic Review that might result in their network access division, Openreach, being completely split from the operator’s control. However that would be a complicated solution, which is also bitterly opposed by BT, and as such the regulator had instead been seeking a middle of the road fix that BT could voluntarily support.

Sir Mike Rake told BBC Radio:

“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.”

The review itself, which was published in February 2016, claimed to have found “evidence” to show that Openreach “still has an incentive to make decisions in the interests of BT, rather than BT’s competitors, which can lead to competition problems“. Ofcom also said that “other telecoms companies have not been consulted sufficiently on investment plans that affect them.

Since then a cross-party Select Committee inquiry has further accused BT of not investing enough into its national broadband infrastructure (here) and the regulator supports the view that BT has been under-investing by “hundreds of millions of pounds“.

Ofcom intends to publish what could be its final statement on the matter tomorrow, which will confirm whether or not BT’s offer has been accepted. We’ll have deeper analysis once the outcome and details are known.

Leave a Comment
5 Responses
  1. Avatar NGA for all

    4 years and 45 discrete and zealously imposed confidentiality agreements for LA’s paying for upgrades in BT’s network and he wishes to be more transparent? Cannot wait!

    • Avatar GNewton

      ” we’re absolutely willing to form an Openreach board that would have an independent chairman, a majority of independent directors.”

      If that was true, then why not go for a full separation of Openreach?

    • Avatar fastman

      4 years and 45 discrete and zealously imposed confidentiality agreements for LA’s paying for upgrades in BT’s network and he wishes to be more transparent? Cannot wait! — you seem to have Missed the important element of the significant match funding as part of that upgrade which is where the comfidential part probably lies

    • Avatar NGA for all

      @Fastman It is unlikely there is any matched funding paid to date. The evidence to CMS on this matter looks dubious. Do anyone believe a cabinet costs on average more than £40k for phase 1? That is what your asking people to believe. It is unlikely to be true. Let’s see if Ofcom follows CMS request and investigates.

    • Avatar FibreFred

      “If that was true, then why not go for a full separation of Openreach?”

      The difference being?

      Anyway it’s not happening (full separation) sorry to spoil your day/week/month/life

      Hopefully this will keep people happy, sounds like a good balance.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Superfast ISPs
  • Hyperoptic £19.95 (*22.00)
    Avg. Speed 50Mbps, Unlimited
    Gift: Promo Code: HYPER20
  • NOW TV £22.00 (*40.00)
    Avg. Speed 36Mbps, Unlimited
    Gift: None
  • SSE £22.00
    Avg. Speed 35Mbps, Unlimited
    Gift: None
  • xln telecom £22.74 (*47.94)
    Avg. Speed 66Mbps, Unlimited
    Gift: None
  • Vodafone £22.95
    Avg. Speed 35Mbps, Unlimited
    Gift: None
Prices inc. Line Rental | View All
The Top 20 Category Tags
  1. BT (2689)
  2. FTTP (2526)
  3. FTTC (1738)
  4. Building Digital UK (1677)
  5. Politics (1571)
  6. Openreach (1537)
  7. Business (1352)
  8. FTTH (1272)
  9. Statistics (1186)
  10. Mobile Broadband (1153)
  11. Fibre Optic (1033)
  12. 4G (996)
  13. Wireless Internet (984)
  14. Ofcom Regulation (983)
  15. Virgin Media (959)
  16. EE (663)
  17. Sky Broadband (648)
  18. TalkTalk (631)
  19. Vodafone (622)
  20. 5G (456)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact