End result will hopefully benefit ISPs and consumers alike
Following pressure from Ofcom which has been applied for quite some time now, BT has announced the separation of its Openreach networking arm.
Openreach will become a legally separate company with its own board, staff and management, along with distinct branding (minus the BT logo). However, it will still remain within the BT group (in other words, it’s not being spun off completely).
Essentially, BT has voluntarily agreed to Ofcom’s previous formal notification asking for such a split in order to ensure a level playing field for all ISPs when it comes to broadband infrastructure, and more specifically, to make sure BT can’t lean towards its own interests when it comes to Openreach’s decisions and policies.
The end result should hopefully benefit not just broadband providers, but ultimately consumers as well in terms of a more competitive pricing arena.
Around 32,000 staff members will transfer over to the new Openreach Limited company, with the process due to start this year according to Ofcom.
Ofcom noted that “The new Openreach will have the greatest degree of independence from BT Group possible without incurring the delays and disruption – to industry, consumers and investment plans – associated with structural separation or the sell-off of Openreach to new shareholders.
