Ofcom Mandates Legal Separation of BT, Openreach Due to Competitive Concerns

Ofcom will require the legal separation of Openreach from BT due to competitive concerns raised by the U.K. regulator, the agency said in a news release Tuesday. After concluding a public consultation, Ofcom decided to notify the European Commission to implement the change, it said. Legal separation would require Openreach to become a distinct company with its own board, including a majority of nonexecutive directors not affiliated with BT, Ofcom said. “We are disappointed that BT has not yet come forward with proposals that meet our competition concerns,” Ofcom said Tuesday. “Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users." Monday, BT announced Mike McTighe as the first chairman of the new Openreach board. He worked at Ofcom from 2007 to 2015 and also for communications and other companies such as General Electric. BT didn’t comment Tuesday on the Ofcom announcement.