The telecoms regulator Ofcom have ordered BT to split from its Openreach division so that it becomes a distinct company. Openreach is currently a division of BT that runs the UK infrastructure.
Prior to this Ofcom and laid out concerns to BT back in July that they claim have not been addressed. Despite this BT have previously resisted calls to split the division.
Ofcom has decided that BT has not done enough to ensure that any decisions made around investing in Openreach would not favour its own interests. As a distinct company, Openreach would have its own budget with its own board, with non-executives and a chairperson not affiliated with BT.
BT chairman Sir Michael Rake said, "I remain hopeful this significant move by BT can help to underpin a sustainable, proportionate and fair regulatory settlement that is in the interests of the whole country."
This would require Openreach to treat all of its customers equally and could end competitor rivals complaints - including Sky and Talk Talk who have previously complained of the cost and quality of the infrastructure provided by Openreach.
BT will still have ownership over Openreach, this is a crucial detail and it remains to be seen how much control BT will have over Openreach after the split.
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