Ofcom Rules Out BT Break-up
Posted: 27th Sep, 2004 By: MarkJ
Both the Telegraph and Mail newspapers have reported on information from Ofcom's 12th October telecoms review. It's claimed that the regulator has decided to drop one of its most controversial proposals, which relates to breaking BT up into two companies:
Ofcom had put forward the radical proposal that BT be split into two companies: one selling services and the other selling phone lines.
But the review is now likely to suggest that BT Wholesale, which runs the company's huge network, must merely show it is doing business with BT Retail, which sells services, on the same terms as other customers.
BT chief executive Ben Verwaayen said: 'The strategic review is an excellent document. You can see that the industry with one exception has dropped all the pressure to split up the company.'
Ofcom had put forward the radical proposal that BT be split into two companies: one selling services and the other selling phone lines.
But the review is now likely to suggest that BT Wholesale, which runs the company's huge network, must merely show it is doing business with BT Retail, which sells services, on the same terms as other customers.
BT chief executive Ben Verwaayen said: 'The strategic review is an excellent document. You can see that the industry with one exception has dropped all the pressure to split up the company.'
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