UK communications regulator Ofcom decided not to split-up BT (formerly known as British Telecom) and Openreach, but an overhaul is nonetheless in order.
For nearly a year now, Ofcom has been looking into whether BT and Openreach, its lucrative infrastructure broadband arm, should be split-up. The regulator ultimately concluded that a separation is not mandatory, but BT and Openreach have to open up its broadband network.
The proposed overhaul rather than split-up comes after various rival companies such as TalkTalk and Sky militated to have BT spun so that connectivity across Britain would improve. Ofcom's decision may not be what they were hoping to hear, but the overhaul does aim to improve UK broadband.
BT and Openreach will be able to keep working in tandem, at least for the time being, but Ofcom is asking for stricter controls to ensure customers can benefit from the best service UK networks have to offer.
Under the new requirements, Openreach has to open up its network of underground tunnels and telegraph poles so rivals can build their own fiber networks, directly connected to offices and homes. Ofcom also requires an Openreach reform, as follows.
"Openreach needs to change, taking its own decisions on budget, investment and strategy, in consultation with the wider industry," says the regulator.
Ofcom also plans to implement tougher rules on repairs, faults and installation, require transparent information regarding the quality of service, and ensure customers are automatically compensated when things go awry.
When it comes to improved broadband and mobile coverage, the regulator pledges to collaborate with the government for delivering a legal right to affordable and fast broadband for every home and office in the UK. Ofcom also plans to improve rural mobile coverage by introducing new obligations in future spectrum licenses.
"Openreach must make it much easier for competitors to access this network, and provide comprehensive data on the nature and location of its ducts and poles," adds Ofcom. "This new 'digital map' of the UK will allow competing operators to invest, plan and lay advanced networks, giving people more choice over how they receive their phone and broadband services."
BT, for its part, welcomes Ofcom's decision not to separate Openreach and notes that many of the proposed steps are already in place.
"We want to build an even faster network and we also plan to address slow speeds in the final 5 percent of the country," says BT in its own press release, commenting on Ofcom's decision. "It is also important that we give small businesses further options aside from dedicated lines, which suit many but not all. Customer expectations have increased dramatically in recent years and we are keen to work with Ofcom and industry to meet those expectations. We all want to improve service. Openreach is already subject to regulated service standards and we are happy to work with Ofcom to improve them."
BT further notes that it will gladly open up its tunnels and poles for other companies to use, as long as they're willing to invest "very large sums" like BT has done. The company points out that it had already opened up its "ducts and poles" to competitors back in 2009, but it never saw much interest.
