CONSUMER campaigners have said that changes to the BT division that runs the country’s broadband infrastructure “can’t come soon enough” for millions of people who have suffered “woeful” levels of service. 

Industry regulator Ofcom stopped short of demanding a full sell-off of Openreach, which develops and maintains the UK’s main telecoms network used by telephone and broadband providers such as Sky, TalkTalk, Vodafone and BT Consumer.

READ MORE: Herald View: BT Openreach must not be allowed to hold up digital progress

But it outlined major reform of the organisation that would result in it becoming a “distinct company” within the BT group.

Alex Neill, director of policy and campaigns at Which?, said: “Millions of people have suffered woeful levels of service from Openreach so these changes can’t come soon enough. 

“In order for these reforms to be judged as a success, customers will expect them to deliver big improvements in service. Telecoms are an essential part of our daily lives and so it is vital that everyone can access good quality broadband, switching is made easier and compensation is made available when things do go wrong.”

The current structure of BT was introduced by Ofcom in 2005 and rival companies such as Sky, Vodafone and TalkTalk have long called for a split between Openreach and its parent company.

They pay to use the network and have previously complained over poor service and urged the group to replace its ageing network of copper wire.
The watchdog said that, although the existing structure has delivered benefits such as stronger competition, it means BT retains influence over significant Openreach decisions and has an incentive to make these decisions in the interests of its own retail businesses, rather than competitors.

BT chief executive Gavin Patterson said the company was introducing “significant changes” to meet the concerns of Ofcom and the industry, adding: “These changes will make Openreach more independent and transparent than it is today, something both Ofcom and industry have requested.

READ MORE: Herald View: BT Openreach must not be allowed to hold up digital progress

“Openreach is committed to delivering better service, broader coverage and faster speeds and these changes will enable it to do just that.”
Ofcom, which is seeking views on the plans by October 4, said the new model “would provide Openreach with the greatest degree of independence from BT Group that is possible without incurring the costs and disruption – to industry and consumers – associated with separating the companies entirely”.

TalkTalk chief executive Dido Harding said the move was “a step in the right direction” but warned that it could favour BT by allowing it to continue “gaming the system” of complex regulations – a claim denied by Mr Patterson.Ms Harding told the BBC Radio 4 Today programme: “It is a step in the right direction; the danger is though that sometimes when you take one step in the right direction, you actually create a regime that’s so complicated that it’s actually five steps in the wrong direction.

READ MORE: Herald View: BT Openreach must not be allowed to hold up digital progress

“And, until everyone’s had a chance to scrutinise this in a lot of detail, it’s not obvious.”