Friday, 26 February 2016

OFCOM need teeth

BT & OpenReach are still installing fibre from exchanges to street side cabinet and then the existing copper carries the signal, so no matter how super fast the fibre is, it comes to a crunching halt between the street side cabinet and the home or business.

This latest report was expected to recommend splitting off OpenReach from BT but that will not happen as OFCOM has only recommended a new set of rules and sprucing up OpenReach's governance.

OFCOM offers two arguments for not going the whole way with separation. One is that making BT spin off OpenReach would involve too much disruption to be useful and second is that the market for broadband is fluid and would reduce the flexibility of future projects, extremely weak excuses.

This is hardly surprising as ORCOM is one of the weakest quangos presently and BT has just released a statement saying they will put another £1 billion into OpenReach for the future. That would be clawed back if the split took place.

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