Ofcom accepts undertakings from Board of BT Group plc on operational separation
BT access services business – Openreach – formally established today
The Ofcom Board has formally accepted legally-binding undertakings from the Board of BT Group plc. The undertakings, which were offered to Ofcom in June 2005, were subject to consultation over the summer. They create a new regulatory approach to the access infrastructure operated by BT in the UK.
Separately, BT has today announced the establishment of its new access services business - Openreach.
Undertakings
In more than 230 separate undertakings, the Board of BT Group plc has agreed to substantive structural, product and governance changes, affecting both its current and future networks.
Ofcom believes the undertakings will:
- allow all communications providers to gain real equality of access to critical BT infrastructure on fair and equal terms, encouraging investment in infrastructure, and enabling innovations through multiple services and the increasing deployment of next-generation technology;
- lead to lower prices and greater choice of products and services for consumers and businesses; and
- help to underpin the UK’s industrial and economic competitiveness in the future. Ofcom Chief Executive Stephen Carter said: “After a full year of detailed consultation, Ofcom has accepted BT’s commitments. The new management of Openreach and the Equality of Access Board must now deliver - and be seen to deliver.”
Ofcom Chief Executive Stephen Carter said: “After a full year of detailed consultation, Ofcom has accepted BT’s commitments. The new management of Openreach and the Equality of Access Board must now deliver - and be seen to deliver.”
He added: “Ofcom is hopeful that this new approach to competition regulation will stimulate investment, innovation and sustainable growth in this critical industrial sector.”
The final undertakings can be found online at:
http://www.ofcom.org.uk/static/telecoms_review/final_statement.htm