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Ofcom rule that Openreach should not be completely separated from BT

Jonny Clark

26th July 2016

Telecommunications regulator Ofcom have announced that they are not going to force BT to sell off their Openreach broadband provider but do want the division to be set up as a distinct company with its own board, brand and budget allocation. Openreach are almost the sole supplier of broadband cabling to houses and businesses in the UK. Although customers may purchase their broadband service provision from firms like Sky or TalkTalk, the physical cabling is put in place and maintained by Openreach. However, there have been many complaints about the quality of service leading some to suggest that Openreach are taking advantage of their monopoly provision status.

Ofcom have not recommended a full sell off of Openreach as they believe that this will add unnecessary costs that would be passed on to the consumer. Instead they want the firm to act as if it is independent of BT with its own set of targets.

The video below is a slightly old case study of Openreach's poor customer service from the BBC's Watchdog programme.

Jonny Clark

Jon Clark has been teaching economics and business studies for over 25 years primarily in the Further Education sector. Before joining tutor2u, he was a senior manager at South Cheshire College in Crewe.

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