{"id":34860,"date":"2023-06-27T12:20:26","date_gmt":"2023-06-27T11:20:26","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34860"},"modified":"2023-06-27T12:20:26","modified_gmt":"2023-06-27T11:20:26","slug":"ofcom-cautions-bt-in-new-report-on-openreachs-independence","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/06\/ofcom-cautions-bt-in-new-report-on-openreachs-independence.html","title":{"rendered":"Ofcom Cautions BT in New Report on Openreach’s Independence"},"content":{"rendered":"

Ofcom<\/a> has published their annual 2023 monitoring report into Openreach<\/a>’s independence from BT<\/a>, which found that the commitments made by the operator “have generally proved to be successful<\/em>“. But the regulator warns against complacency and cautions BT<\/a>’s CEO, Philip Jansen, against repeating some of his recent remarks.<\/p>\n

Just to recap. The annual report<\/strong><\/a> process was established some years ago as part of Ofcom<\/a>\u2019s effort to monitor Openreach<\/a>\u2019s progress toward becoming a distinct \u201clegally separate<\/em>\u201d company away from BT<\/a>, which in turn stemmed from the original 2016 Strategic Review of Digital Communications<\/strong> (full summary<\/a><\/strong>).<\/p>\n

NOTE:<\/strong> Openreach<\/a> is investing up to \u00a315bn to ensure that 25 million premises (80%+ of the UK) are covered by their full fibre broadband network by Dec 2026 (currently at 10.3m).<\/div>\n

The aforementioned review found that Openreach previously had an \u201cincentive to make decisions in the interests of BT, rather than BT\u2019s competitors, which can lead to competition problems<\/em>\u201d and that the BT had failed to \u201csufficiently<\/em>\u201d consult rival ISPs, such as those that piggyback off their network, on future \u201cinvestment plans that affect them<\/em>.\u201d They were also deemed to have under-invested in their network.<\/p>\n

In order to resolve that, BT and Ofcom<\/a> reached a voluntary agreement in 2017 (here<\/a>), which sought to boost competition by giving rivals easier access to the operator\u2019s infrastructure and fostering an independent governance structure for Openreach, as well as tougher minimum service quality standards (see today’s news<\/a>), separate branding, new consumer protection measures and better information sharing etc.<\/p>\n

The first few years after that agreement did have a few bumps, but these days Ofcom’s annual monitoring report tends to be fairly uneventful. “Our experience to date is that the Commitments have generally proved to be successful, and we continue to see evidence that they are well-established and well-embedded across BT and Openreach<\/em>,” said Ofcom.<\/p>\n

A BT Group spokesperson told ISPreview:<\/strong><\/p>\n

“We welcome Ofcom\u2019s report finding that the Commitments are working well. We remain focussed on complying with both the spirit and letter of the Commitments, including Openreach\u2019s greater independence.”<\/p><\/blockquote>\n

Ofcom goes on to note that, where breaches of the agreement have occurred (examples often occur around changes in staff and the introduction of new systems), they’ve been “relatively minor in nature and are occurring at a rate typical of recent years (less than 10 per annum)<\/em>.” Such issues tend to be “swiftly and appropriately addressed<\/em>“, but the regulator does caution BT and Openreach not to become complacent.<\/p>\n

In particular, Ofcom highlights how the comments of BT\u2019s CEO, Philip Jansen<\/strong>, in February of this year – including being reported as saying Openreach\u2019s FTTP<\/a> broadband rollout would “end in tears<\/em>” for rivals – “caused Ofcom and industry significant concern … we would be extremely concerned to see similar comments in future and will be keeping this under close review<\/em>.” But BT has since argued that Jansen’s comments were taken out of context (here<\/a>).<\/p>\n

The regulator added that – over the last monitoring period – they have also had to consider a range of concerns raised by industry, sometimes expressed as formal complaints. “While we have not found sufficient evidence to open any investigations so far in relation to these complaints, we will continue to take these concerns extremely seriously and we will not hesitate to prioritise enforcement action as necessary<\/em>“, added Ofcom.<\/p>\n

As part of that, the regulator said they would be “strengthening the OMU\u2019s operation over the coming months so that it remains an objective, vigilant and transparent safeguard<\/em>,” although they didn’t specific precisely what sort of changes this might involve.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ofcom has published their annual 2023 monitoring report into Openreach’s independence from BT, which found that the commitments made by the operator “have generally proved to be successful“. But the regulator warns against complacency and cautions BT’s CEO, Philip Jansen, against repeating some of his recent remarks.<\/p>\n","protected":false},"author":1,"featured_media":33881,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,472,56,36,69,38],"class_list":["post-34860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt","tag-business","tag-fttp","tag-ofcom-regulation","tag-bt-openreach","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOfcom Cautions BT in New Report on Openreach's Independence - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Ofcom has published their annual 2023 monitoring report into Openreach's independence from BT, which found that the commitments made by the operator "have\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/06\/ofcom-cautions-bt-in-new-report-on-openreachs-independence.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ofcom Cautions BT in New Report on Openreach's Independence - 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