BT Network Arm Should Have Separate Structure, Says U.K. Regulator
July 26 2016 - 3:11AM
Dow Jones News
By Rory Gallivan
LONDON--The U.K's telecommunications regulator Tuesday called
for BT Group PLC's network business to become a distinct company
with its own board, but stopped short of calling for a full
separation of the businesses.
Ofcom said Openreach should become a legally separate company
from the rest of BT, but remain part of the BT Group. Openreach
should have a chief executive who is accountable to the Openreach
board rather than BT Group, it said.
Under Ofcom's proposals Openreach would be obliged to consult
with customers such as BT's competitors Sky PLC and TalkTalk
Telecom Group PLC about investment plans.
Ofcom said it will seek views on its proposals until Oct. 4.
BT, a former state-run monopoly known as British Telecom, lays
down most of the U.K.'s telecoms lines and makes a hefty chunk of
its revenue though its Openreach division by connecting the
country's copper wire and high-speed fiber-optic cable network. For
years, BT has faced calls for increased regulatory pressure on the
division by rival operators, which lease the network on a wholesale
basis to reach their own customers.
Simon Zekaria contributed to this article.
Write to Rory Gallivan at rory.gallivan@wsj.com
(END) Dow Jones Newswires
July 26, 2016 02:56 ET (06:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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