Tuesday, 21 November 2017

Openreach should be legally separate entity within BT, says Ofcom

By Nick Wood, Total Telecom
Tuesday 26 July 16

U.K. telco watchdog says BT's networks business should have confidential discussions with rival telcos.

Ofcom on Tuesday fleshed out its plan to make its infrastructure arm Openreach more independent from BT, proposing that it become a legally separate company within BT Group, but stopping short of pushing for a full structural split. The proposals build on the preliminary conclusions of the U.K. telco watchdog's strategic review, published in February. In line with becoming a distinct company within BT, Ofcom also called for Openreach to have its own articles of association and its own board with the majority of non-executive directors – including the chair – having zero ties to BT. However, said board would be appointed by BT, in consultation with Ofcom. Openreach's board would then be responsible for selecting its own chief executive, who would choose a senior management team. Openreach's leadership would have no direct lines of reporting to BT…

Ofcom on Tuesday fleshed out its plan to make its infrastructure arm Openreach more independent from BT, proposing that it become a legally separate company within BT Group, but stopping short of pushing for a full structural split. The proposals build on the preliminary conclusions of the U.K. telco watchdog's strategic review, published in February. In line with becoming a distinct company within BT, Ofcom also called for Openreach to have its own articles of association and its own board with the majority of non-executive directors – including the chair – having zero ties to BT. However, said board would be appointed by BT, in consultation with Ofcom. Openreach's board would then be responsible for selecting its own chief executive, who would choose a senior management team. Openreach's leadership would have no direct lines of reporting to BT…

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