Ofcom probes options to improve UK telecoms market

BT could be broken up under plans being considered in a once-in-a-decade review of the UK communications market to improve services for businesses and consumers.

Ofcom, the telecoms watchdog, is assessing whether current regulations need reforming to improve infrastructure and increase competition. Ofcom signalled that the future of BT would be a major focus of the review, given concerns from rivals about the structure of Openreach, the separate business unit that manages its national broadband network. BT must give competing providers access to its fixed line network on equal terms, but Ofcom said the current situation needed further review. Options include making BT split off its national telecoms network to maintaining the status quo or tightening regulations. Ofcom said the existing approach of regulating Openreach as a separate unit “delivered many benefits to consumers and businesses but also meant that BT still had the incentive to discriminate against competing providers”.