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You can find the current article at its original source at http://www.theguardian.com/business/2016/feb/25/bt-should-let-rivals-use-infrastructure-to-lay-faster-broadband-cables-ofcom-says
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Ofcom tells BT to open up cable network to rivals | |
(35 minutes later) | |
BT has been told to let rivals use its infrastructure to lay fibre cables that are faster than its own copper network, as part of a review of Britain’s broadband needs by the regulator Ofcom. | BT has been told to let rivals use its infrastructure to lay fibre cables that are faster than its own copper network, as part of a review of Britain’s broadband needs by the regulator Ofcom. |
In a once in a decade review, the regulator stopped short of recommending that BT be forced to split off Openreach, the division that owns the broadband infrastructure. | In a once in a decade review, the regulator stopped short of recommending that BT be forced to split off Openreach, the division that owns the broadband infrastructure. |
The verdict drew criticism from TalkTalk and Sky, which said the regulator had not gone far enough. | The verdict drew criticism from TalkTalk and Sky, which said the regulator had not gone far enough. |
TalkTalk’s boss, Dido Harding, said splitting Openreach from BT entirely would ensure “BT isn’t the one making the decisions on whether or not there is more money in Openreach or not and that’s exactly why I think they should be separate”. | TalkTalk’s boss, Dido Harding, said splitting Openreach from BT entirely would ensure “BT isn’t the one making the decisions on whether or not there is more money in Openreach or not and that’s exactly why I think they should be separate”. |
Harding also said it was “deeply suspicious” that BT boss Gavin Patterson has pledged to spend more on Openreach in the run-up to the decision. “Independence would mean that Openreach makes the right decisions for their customers rather than the decisions that are right for BT Group,” she added. | Harding also said it was “deeply suspicious” that BT boss Gavin Patterson has pledged to spend more on Openreach in the run-up to the decision. “Independence would mean that Openreach makes the right decisions for their customers rather than the decisions that are right for BT Group,” she added. |
A Sky spokesperson said: “We believe the simplest and most effective way to fix the current broken market structure is for Openreach to be completely independent. We are pleased to see that separation is still on the table.” | A Sky spokesperson said: “We believe the simplest and most effective way to fix the current broken market structure is for Openreach to be completely independent. We are pleased to see that separation is still on the table.” |
Lib Dem leader Tim Farron said Ofcom had “bottled it” and called on the government to force a full split. | Lib Dem leader Tim Farron said Ofcom had “bottled it” and called on the government to force a full split. |
Ofcom’s more moderate proposal would see the network run at “arm’s length”, it said, with separate people making decisions on its budget, investment and strategy. This would “remove the incentive and ability to discriminate against competing providers”. | Ofcom’s more moderate proposal would see the network run at “arm’s length”, it said, with separate people making decisions on its budget, investment and strategy. This would “remove the incentive and ability to discriminate against competing providers”. |
But Ofcom left open the possibility of revisiting the nuclear option of full separation if BT did not comply on key issues. It said this might prove to be the “cleanest and most clear cut long-term solution”. | But Ofcom left open the possibility of revisiting the nuclear option of full separation if BT did not comply on key issues. It said this might prove to be the “cleanest and most clear cut long-term solution”. |
Related: Forget superfast, look who's missing basic broadband – infographic | |
One source familiar with the situation said this was not a negotiating tactic to force BT’s hand, adding that full separation was “unequivocally not off the table”. | One source familiar with the situation said this was not a negotiating tactic to force BT’s hand, adding that full separation was “unequivocally not off the table”. |
The BT chief executive, Gavin Patterson, said: “A great deal of what they are proposing is already in place and we are open to discussions about how the current rules can be amended and updated.” | The BT chief executive, Gavin Patterson, said: “A great deal of what they are proposing is already in place and we are open to discussions about how the current rules can be amended and updated.” |
Ofcom also gave a series of recommendations to improve customers’ experience. These include automatic compensation for customers and businesses when the Openreach network experiences problems. The regulator wants to introduce league tables and make it easier for customers to switch provider. | Ofcom also gave a series of recommendations to improve customers’ experience. These include automatic compensation for customers and businesses when the Openreach network experiences problems. The regulator wants to introduce league tables and make it easier for customers to switch provider. |
The regulator also wants greater transparency on what Openreach is doing, amid complaints of poor service by BT and claims by rivals that being forced to use the network puts them at a disadvantage. | The regulator also wants greater transparency on what Openreach is doing, amid complaints of poor service by BT and claims by rivals that being forced to use the network puts them at a disadvantage. |
Ofcom said Openreach directors should be forced to consult customers – such as Sky and TalkTalk – on its investment plans and provide more information about how it allocates costs and assets. | Ofcom said Openreach directors should be forced to consult customers – such as Sky and TalkTalk – on its investment plans and provide more information about how it allocates costs and assets. |
It should also build a database of its telegraph poles and ducts, to allow rivals to plan where they might want to lay ultrafast fibre to compete with BT’s copper network. | It should also build a database of its telegraph poles and ducts, to allow rivals to plan where they might want to lay ultrafast fibre to compete with BT’s copper network. |
Patterson cast doubt on whether rivals would take up the offer, despite complaining of the slow pace of fibre roll-out. “Our ducts and poles have been open to competitors since 2009 but there has been little very interest to date. We will see if that now changes,” he said. | Patterson cast doubt on whether rivals would take up the offer, despite complaining of the slow pace of fibre roll-out. “Our ducts and poles have been open to competitors since 2009 but there has been little very interest to date. We will see if that now changes,” he said. |
Related: Openreach and BT errors see customers charged tens of thousands to connect | |
The regulator also wants to introduce tougher minimum service requirements to make sure BT repairs faults more quickly, an area in which rivals say it is dragging its feet. There will also be a new government-backed universal obligation to provide fast broadband to every home and business in the UK, starting at 10 megabits per second. | The regulator also wants to introduce tougher minimum service requirements to make sure BT repairs faults more quickly, an area in which rivals say it is dragging its feet. There will also be a new government-backed universal obligation to provide fast broadband to every home and business in the UK, starting at 10 megabits per second. |
Although Ofcom does not have powers to impose any changes on BT immediately, it can take its plans to the European commission for approval. At that point it can impose its recommendations on the telecoms giant. “A voluntary, binding settlement is in everyone’s interests and we will work hard to ensure one is reached,” said Patterson. | Although Ofcom does not have powers to impose any changes on BT immediately, it can take its plans to the European commission for approval. At that point it can impose its recommendations on the telecoms giant. “A voluntary, binding settlement is in everyone’s interests and we will work hard to ensure one is reached,” said Patterson. |
Ofcom’s chief executive, Sharon White, said: “People across the UK today need affordable, reliable phone and broadband services. Coverage and quality are improving, but not fast enough to meet the growing expectations of consumers and businesses. | Ofcom’s chief executive, Sharon White, said: “People across the UK today need affordable, reliable phone and broadband services. Coverage and quality are improving, but not fast enough to meet the growing expectations of consumers and businesses. |
“So today we’ve announced fundamental reform of the telecoms market – more competition, a new structure for Openreach, tougher performance targets, and a range of measures to boost service quality. Together, this means a better deal for telecoms users, which will improve the services and networks that underpin how we live and work.” | “So today we’ve announced fundamental reform of the telecoms market – more competition, a new structure for Openreach, tougher performance targets, and a range of measures to boost service quality. Together, this means a better deal for telecoms users, which will improve the services and networks that underpin how we live and work.” |