Ofcom orders legal separation of BT and Openreach
Telecoms regulator Ofcom has ordered BT to legally separate its Openreach division, which runs the UK”s broadband infrastructure.
Openreach should become a distinct company within the BT group, the regulator said.
BT had not voluntarily addressed competition concerns Ofcom laid out in July, it said.
Ofcom said it was preparing a formal notification to the European Commission to start the process.
The regulator has resisted calls to split Openreach off entirely.
Ofcom said BT had not gone far enough to address its concerns about BT”s ability to favour its retail business when making investment decisions in Openreach.
It wants Openreach to become a distinct company with its own board, with non-executives and a chair not affiliated with BT.
Openreach would also have a duty to treat all of its customers equally, the regulator said.