Ofcom's Openreach review finds firm 'lacking in independence'

A report released by Ofcom has shown significant concerns regarding Openreach's closeness to BT, and its cost structure to other competitors.

In the report, the body found that Openreach is primarily managed by the BT group, who control Openreach's budget, how much is spent on network connections and also pricing for competitors' access to lines.

As part of the review, Ofcom laid out a number of suggestions, including Openreach setting its own budget, plans and management structure. It has also called for greater transparency with Openreach's price structure for competitors and to serve all wholesale customers the same.

Ofcom also released plans to ensure that customer service is drastically improved by setting targets for Openreach to achieve in repairing faults and installing lines. As part of this, Ofcom will bring in performance tables, determining who is the best and worst broadband provider and the ability for customers to shop around, as well as introducing compensation for consumers and businesses when things go wrong.

Sharon White, chief executive for Ofcom, released a statement, stating: “People across the UK today need affordable, reliable phone and broadband services. Coverage and quality are improving, but not fast enough to meet the growing expectations of consumers and businesses.

"So we’ve announced fundamental reform of the telecoms market — more competition, a new structure for Openreach, tougher performance targets, and a range of measures to boost service quality. Together, this means a better deal for telecoms users, which will improve the services and networks that underpin how we live and work.”

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(Image: Graham Richardson)