BT agreed this week with Ofcom’s plans for a legal separation of its service division Openreach, Ofcom had called for a full split on competition grounds.
Under the agreement 32,000 staff will be transferred from BT to work directly for Openreach once the usual consultations have taken place and pension arrangements have been agreed.
The decision follows a year-long battle between BT and Ofcom over the terms under which Openreach ought to be separated.
This is a huge deal for everyone involved, its described as the “biggest reform of Openreach in history” and will change the way they operate forever. The reform will commence in 2017.
Gavin Patterson, BT chief executive, said:
“This has been a long and challenging review where we have been balancing a number of competing interests. We have listened to criticism of our business and as a result are willing to make fundamental changes to the way Openreach will work in the future.”
“It will also end a period of uncertainty for our people and support further investment in the UK’s digital infrastructure.”
BT have endured criticism for quite a while now over fibre broadband rollouts, with the Openreach separation now agreed its the perfect time for BT to get back on track and settle not only it’s customers, it’s employees and stakeholders.
BT shares jumped up 3.7% on the FTSE 100 which is considered to be more of a relief rally rather than a vote of confidence.
UC Today Opinion
For BT Wholesalers in the UK the split is welcomed by most. The move comes at the right time and will satisfy a lot of BT wholesalers who have had competition concerns.
There have been various issues around the quality of service delivered by Openreach for years now and the separation will hopefully pave the way for better performance.
Related:
Openreach and BT Separation Demanded by Ofcom
Should BT Have Invested in Better Broadband? The Openreach Chairman Thinks So
