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BT and Openreach split

It has been over a week now since Ofcom announced that BT must split entirely from Openreach. Lots has been said about Ofcom’s decision to force BT and Openreach to split, but what does this really mean and why are people so eager for it to actually transpire?

So let’s look at what and why this has this happened.

Telecoms regulator Ofcom has announced that BT must completely split from its Openreach division, which is responsible for much of the broadband infrastructure across the UK, for fears of favouritism and to encourage healthier competition in order to speed up the proposed roll-out of UK wide super fast broadband.

The UK media regulator wants to strengthen the independence of Openreach and for it to become a separate entity with its own board, executives and chairperson with no affiliation to BT whatsoever, with the idea of ensuring that they treat all customers on a level playing field

The Effects

The split could have numerous benefits to businesses. If BT are forced to open their ducts and poles, it will be a big step forward in encouraging providers to access Openreach's infrastructure and lay their own ‘full fiber’ networks. By having greater access to BT’s infrastructure, it may encourage more providers to offer alternatives to the copper based technologies that are currently being planned by BT and reduce the country’s reliance on Openreach.

One of the main ideas behind Ofcom’s plans are to make it quicker and easier for telecoms providers to build fiber networks directly to businesses and homes by taking advantage of the existing infrastructure.

The Key point

By having two completely separate budgets in place, people can no longer raise the question over possible constraints set in place by BT retail on what Openreach are spending their money on.

With Openreach no longer seen as being governed by BT, they will have no excuses to spend their budget on anything other than what is seen to be improving the network and the network only.

With the split, many may feel the budget will lean more evenly towards the availability of broadband to business premises as well as businesses being better supported as a result of a better network and infrastructure. By having no clear visible contractual constraints or visual benefit of ‘favouring’ BT, businesses may start to believe that there is less of a concentration on providing homes with the latest offerings and newest channels offered by BT as opposed to providing faster broadband connection to businesses.

What this could mean for us over at NT.

As an independent business telecoms provider, Network Telecom always look to provide the best service available on the market to its customers.

Better access to the UK Telecom infrastructure could help Network Telecom provide quicker diagnostics and have line faults and issues fixed even quicker. If service level agreements are negotiated, decided upon and regulated; we may also be able to enhance our SLA’s and provide an even better service to our existing 2,500 strong customer base.

Any cost deficiencies that come out of the split will be passed on to all of our new and existing customers to ensure that we continue to provide the best service available on the market at an affordable price.

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