Ofcom lets BT keep Openreach but orders shake-up

Telecoms regulator Sharon White has backed off ordering BT to sell off Openreach but promised consumers better service from and rivals greater access to the broadband network.

White, chief executive of Ofcom, welcomed recent promises by BT to make Openreach more independent but said it must go further including making a legally separate company.

“Our proposals provide Ofcom with every benefit they’re seeking but without any of the substantial and unavoidable costs associated with legal incorporation,” said a BT spokesman.

White said: “I understand why some people see a sell off as cleaner and simpler. But there are big practical obstacles in terms of tens of thousands of land contracts that need to be renegotiated and big pension changes. I don’t think the country can afford to wait for reform.

“That’s why today we have announced the biggest shake-up to Openreach in its 10-year history to deliver better broadband to UK homes and businesses.”