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Regulator tells BT to open up cable network Regulator tells BT to open up cable network
(35 minutes later)
Communications regulator, Ofcom has told BT to open up its cable network, so competitors can better connect the internet to homes and offices. Communications regulator, Ofcom has told BT to open up its cable network, allowing competitors to connect the internet to homes and offices.
Ofcom says that BT's Openreach operation needs to change and take its own decisions on budget and strategy. Ofcom also says that the country is suffering from a digital divide between those who have the latest technologies, and those who do not.
Openreach provides and maintains the network in what's known as the "final mile" into consumers' homes. It has proposed that decent, affordable broadband should be a universal right.
However it has stopped short of a complete break-up of BT as had been demanded by many of BT's rivals. It has so far stopped short of demanding a complete break-up of BT, but said this was still an option.
Ofcom also says it intends to introduce tougher rules on faults, repairs and installations. Rivals had called for a split between BT and its Openreach operation, which runs its cables, fibre and network infrastructure.
BT will be told to open up its network, allowing easier access for rivals to lay their own fibre cables along BT's telegraph poles and in its underground cable ducts. But BT will be told to allow easier access for rivals to lay their own fibre cables along Openreach's telegraph poles and in its underground cable ducts.
Ofcom also says it intends to introduce tougher rules on BT's faults, repairs and installations.
It says Openreach should be governed at arm's length from BT, with greater independence in taking its own decisions on budget, investment and strategy. It adds that a complete split between Openreach and BT "remains an option".
The Chief Executive of Ofcom, Sharon White told the BBC: "Openreach does need major reform and the key thing is that it's independent so that it responds to all its customers, not just BT.
"If we cannot get the responsiveness to customers that we're seeking, then ... we reserve the right, formally, to separate [BT and Openreach]."
Social exclusionSocial exclusion
The report says the surge in data speeds has led to a "digital divide" between those who have access to the latest technologies, and those who do not. The report also says the surge in data speeds has led to a "digital divide" between those who have the fastest internet access and those who are left behind.
It says: "As the world goes increasingly online, those left behind risk social and economic exclusion. We have found that people who are left behind are usually less well-off or living in vulnerable circumstances."It says: "As the world goes increasingly online, those left behind risk social and economic exclusion. We have found that people who are left behind are usually less well-off or living in vulnerable circumstances."
"2.4 million households and small businesses (around 8% of all UK premises) cannot yet access a decent broadband speed of 10Mbits per second," the report said."2.4 million households and small businesses (around 8% of all UK premises) cannot yet access a decent broadband speed of 10Mbits per second," the report said.
The report, Making Communications Work for Everyone, says: "We will work with the UK Government to make decent, affordable broadband a universal right for every home and small business in the UK.The report, Making Communications Work for Everyone, says: "We will work with the UK Government to make decent, affordable broadband a universal right for every home and small business in the UK.
"The universal right should start off at 10Mbits per second for everyone, and then rise in line with customer demand over time.""The universal right should start off at 10Mbits per second for everyone, and then rise in line with customer demand over time."
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