Commenting on Ofcom’s announcement that it is proceeding with a formal notification to require the legal separation of BT from Openreach, Richard Neudegg, Head of Regulation at Uswitch.com, comments: “This is a last-minute warning shot to BT to improve its offer on how legal separation would work. It would appear Ofcom is still open to BT proposing a better voluntary deal.
“Ofcom isn’t changing its position at all. The regulator is still gunning for legal separation rather than full structural separation and is using a potential notification to Brussels in an attempt to ensure it can get this over the line.
“Those calling for structural separation – including Sky and TalkTalk – will be disappointed this option still isn’t being considered more closely.
“But this is one step closer towards finding a version of Openreach that maximises investment in new digital infrastructure while still allowing effective competition. Many agree that is what’s needed, but disagree on how to do it. Ofcom is clearly seeking to strike a balance.”
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Charlottte Nunes
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Email: charlotte.nunes@uswitch.com
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