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Amid threats that it could still force BT to break up its businesses if it doesn't play ball, industry regulator OfCom is forcing the British Telecom firm to open up its copper wire and fibre network for more companies to take advantage of. The idea is to offer a more comprehensive and competitive line up of products and services to consumers than is currently available.
OpenReach is a BT subsidiary that operates its entire cable system, controlling roll out, infrastructure and developments somewhat separately from BT and enjoys a near complete monopoly on it throughout the UK. This has prompted regulators and other businesses to call for it to be split-off from BT, but OfCom is now settling for it to be put at arms length from its parent firm.
It is also looking to make it possible for other firms to lay their own cables within OpenReach's underground cable ducts and along OpenReach telegraph poles (as per the BBC). Budget management may be changed too, with a drive to give OpenReach more independence with less oversight from the BT Group.
Source: Wikimedia
OfCom warned that the current climate of internet access in the UK was creating a digital divide, where certain parts had supremely fast internet access, while even relatively built up areas like some parts of London, still languished on outdated connections. Its most recent report suggested around eight per cent of all British households and businesses could not even access 10Mbps connections.
The regulator even described connections at a minimum of that speed to be a basic human right.
KitGuru Says: While it's probably harder to argue that internet access is a human right – even though some have ruled it that in the past – BT has had a strangle hold on expanding internet access for quite some time. Do you think it should be forced to split off OpenReach?
I can not see how this is a problem, BT was privatised before fibre cables were put down, so why should BT let other companies do what they like. If you don’t like the free market OfCom move to a communist country.
not a free market when a company holds a monopoly. might not live in Brittan, but there’s a similar issue where i live; city owns the polls where all the lines are hung and will only work with one company (which most of the city officials have stock in), so there’s only one ISP in my area of any worth.
How does it hold an monopoly on fibre ? Companies have have years to lay there own. Tesco’s isn’t forced to sell Morrisons’ good in its supermarket because its bigger.
Because there is no place for other companies to pay this fibre they have no legal access to bts ducts and poles unless you expect them to buy and install thousands of new poles for a few cables
And that’s even if they could get permission to install them