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Ofcom to impose greater Openreach independence from BT
2016-02-25 08:43:00| Telecompaper Headlines
(Telecompaper) UK regulator Ofcom has proposed measures aimed at encouraging the spread of alternative fibre networks and reducing the country's reliance on BT's wholesale arm Openreach. In a review of Openreach since it was created in 2005 to manage BT's copper network, Ofcom said the wholesale operator needs greater independence from BT, in order to ensure it serves all wholesale customers equally. Ofcom found 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". As a result, the regulator will propose later this year an overhaul of Openreach's governance and measures to strengthen its independence from BT. The new model might require Openreach to become a ring-fenced, wholly-owned subsidiary of BT Group, with its own purpose and board members, Ofcom said, adding that it also reserves the right to require BT to spin off Openreach as an entirely separate legal entity, with its own shareholders.
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Category:Telecommunications