Openreach is a subdivision of BT which runs the UK\u2019s broadband infrastructure. All broadband providers (Sky, Talk-Talk) are charged by Openreach for access to the infrastructure which they claim to be too expense and are not responsive to their demands.<\/p>\n
Ofcom has been concerned over BT\u2019s ability to favour its retail business when making investment decisions in Openreach i.e. not investing enough money in the UK\u2019s broadband infrastructure. If Openreach was split from BT it would become a distinct company with its own board with no affiliation with BT and would have control over its own budget and have to treat all its customers (i.e. other broadband providers) equally.<\/p>\n
BT has been in negotiations since July of this year in order to try and address Ofcom\u2019s concerns, however Ofcom believe that they have not voluntarily addressed the competition concerns. BT dispute<\/a> this by saying that its proposals were \u201cfair and reasonable\u201d. The Regulator is now preparing a formal notification to the European Commission to start the process of separating the two business. Having said this, the negotiations between Ofcom and BT still continue in order to try and resolve this situation voluntarily.<\/p>\n The proposed action of Ofcom has been supported by The Department for Culture, Media and Sport which said Openreach \u201cneeds to offer genuine fair and equal access to the country\u2019s telecoms infrastructure to BT\u2019s competitors\u201d.<\/p>\n