Compensation for slow or no internet connection, review proposes
BT has been told to give rival companies access to its telegraph poles and tunnels to end 'internet blackspots', a review of the state of the Broadband and telecoms market revealed.
The industry regulator announced proposals for customers to receive compensation for slow speeds as well as the internet. It wants companies to be able to boost speeds, while also cutting down on the length of time consumers have to wait to get their internet fixed.
The report released by Ofcom means that firms will now be able to run fibre optic cables directly to homes and businesses to deliver high-speed broadband speeds.
The review comes after an investigation into how BT and its subsidiary, Openreach, were managing and maintaining the network, with some rival companies criticising the stranglehold BT had on Britain's cabling network and for charging high fees to rivals wanting to offer services to consumers and businesses.
The CEO of TalkTalk, Dido Harding, while acknowledging the report has helped in identifying issues within the market, criticised Ofcom for not forcing BT and Openreach to split: “Ofcom is suggesting that BT has a real and identifiable reason to favour its own business while is owns Openreach, and yet Ofcom is not moving to the obvious structural solution, which is to separate out Openreach completely."
A Sky spokesman agreed: “BT still remains a monopoly provider with a regulated business running at a 28 per cent profit margin. Therefore, we urge Ofcom to ensure BT reinvests the £4 billion in excess profits Openreach has generated over the last decade in bringing fibre to millions of premises across the country."
The chief executive of Ofcom, Sharon White, stated that while the report has not ordered BT to sell off Openreach, they might still be told to do so in the future if significant improvements are not made. She also stated that this report will allow competition in the networking industry and will enable “advanced networks, giving people more choice over how they receive their phone and broadband services."
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