BT agrees to legal separation of Openreach in deal with regulator

Browntoa

http://news.sky.com/story/bt-agrees-to-legal-separation-of-openreach-in-deal-with-regulator-10796392


The telecoms regulator, Ofcom, says BT has agreed to a legal separation of its Openreach division to address competition concerns.



The deal - which stops short of a full split - means the company's infrastructure unit will become a "distinct, legally separate company with its own board, within the BT Group".
It goes some way to addressing concerns of BT's rivals, including Sky PLC - the owner of Sky News - which claim Openreach favours BT's own retail business. They had called for a full split on competition grounds.


Openreach builds and maintains the tens of millions of copper and fibre lines that run from telephone exchanges to homes and businesses across the UK.

Browntoa

http://www.directorstalkinterviews.com/openreach-limited-brand-without-bt-group-plc-logo/412725241


Once the agreement is implemented:
· Around 32,000 employees will transfer to the new Openreach Limited following TUPE consultation, and once pension arrangements are in place.
· Openreach Limited will have its own branding, which will not feature the BT logo.
· The Openreach CEO will report to the Openreach Chairman with accountability to the BT Group Chief Executive with regards to certain legal and fiduciary duties that are consistent with BT’s responsibilities as a listed company.
Openreach, which builds and maintains the tens of millions of copper and fibre lines that run from telephone exchanges to homes and businesses across the UK, will assume greater independence under its own Board of Directors.
The agreement is intended to be comprehensive and enduring, helping to ensure the UK telecommunications market remains one of the most competitive in the world. Hundreds of telecoms companies already use Openreach and its national network on an equivalent basis, and many others are competing with them. That will continue with enhanced safeguards to ensure all of Openreach’s customers are treated equally.

boatman

So do we all need to start saving for the new Boards gold plated pay and pensions?

Buzby

The real change will probably mean different biscuits at board meetings. As for there being any meaningful difference... nope. The status quo will remain

Browntoa

I still think that at some point down the line BT will float it off but on their terms , £10 billion ish would sort out that pension deficit in one hit

Robisere

BT will keep on fighting tooth and nail to hang on to the last bit of control. Openreach is where the majority of their profit comes from. Remember the "Rural Broadband Initiative"? My village was 'lucky enough' to be a part of that 3 years ago. I have FTTC and am still waiting to get "Superfast" broadband. 14 Mbps Down, 0.5 Up. On a good day. And that's because I have Sky broadband, phone and callls.

When I was with Plusnet (BT's subsidiary) I complained about krap speeds and dropouts for 5 years and lots of BT OR engineer visits. As soon as I took Sky, they looked into it and put pressure on BT OR. I had a very different engineer visit: new, shielded line, new BT box, new BT faceplate.

BT has had it all to itself for too long and this changes nothing, it's Ofcom and BT going through the motions.