By Ian Walker
LONDON--The U.K. telecom regulator said Thursday it is seeking
comments on whether separating Openreach from BT Group PLC
(BT.A.LN) would deliver competition, or wider benefits for end
users, after concerns on the performance of the infrastructure
division.
The Office of Communications, or Ofcom, made the comments as it
announced the completion of the first phase of its digital
communications review, where a major focus has been on whether
competition is delivering benefits to consumers and businesses.
"BT's network has evolved in recent years, with fiber lines
running closer to premises. This may require different models of
competition than those that worked best for the traditional copper
telecom network," Ofcom said.
It believes U.K. consumers would get better services at lower
prices if there is a sufficient number of effective competitors.
The review is considering the implications for the U.K. of
international trends towards consolidation.
Ofcom is therefore seeking views and evidence on future
regulatory approaches by Oct. 8.
Matters under consideration also include whether new rules
should be applied to BT, such as controls on its wholesale charges
with stronger incentives to improve quality of service, or tougher
penalties if BT falls short.
It will also examine converging media services, offered over
different platforms, or as a 'bundle' by the same operator. For
example, telecoms services are increasingly sold to consumers in
the form of bundles, sometimes with broadcasting content; this can
offer consumer benefits, but may also present risks to
competition.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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