Sky, Vodafone, TalkTalk press for Ofcom to separate BT from Openreach

16th May 2016 09:36

(ShareCast News) - Telecoms regulator Ofcom should force BT Group to further separate its Openreach infrastructure arm for the good of the industry, according to a letter from media and telecoms groups including Sky, Vodafone and TalkTalk.The chief executives of Sky, TalkTalk, Vodafone and two networks and communications services trade bodies sent a letter to Ofcom CEO Sharon White setting out a 10-point plan for a "robust and swift" reform for Openreach, given the regulator's reluctance to enforce total separation of the division from BT.The letter, signed by the company calls for Openreach to be established as a legally separate company, with its own independent board and budget independence from BT, plus a new independent body to oversee the transition and then act as an adjudicator in future, as exists with ITV in the communications sector.Then, the letter calls for Openreach to own the entire network, the copper, fibre, poles and ducts as well as the systems and support functions that keep the business running, with no shared infrastructure or personnel with BT and its own clear branding.After this is in place, the letter calls for Openreach to provide its services and information on an equal basis, so all information given to BT is available to all others.Sky and co also want all major network and product investment decisions in 'the new Openreach' to follow consultation with all Openreach customers, with the aviation industry cited as an example.In order to foster more competition in networks, the letter also calls for BT's other operations to engage in open procurement for services and not just use Openreach.Finally, in areas where smaller alternative operators have rolled out fibre-to-the-premises networks, the group called for the independent Openreach to be required to demonstrate sufficient commercial rationale before allocating resources to 'overbuilding' those networks.Sky said the letter was "to help Ofcom deliver its goal of a more independent Openreach" and that the proposals were based on tried and tested regulation of other utilities and established company law."These proposals can be implemented quickly and will deliver a much needed step-change in the performance of Openreach for millions of consumers and businesses across the UK."