BT rules out further spin-offs

NEWS BT today claimed that it is not planning to spin off any part of its business other than mmO2, despite rumours to the contrary. A BT spokesman stated: "The company is not being hived off. The BT board and executive committee are not going to seek separate operating licenses for the time being. BT Retail, BT Wholesale and BT Openworld will not be spun off." The spokesman added: "There is no evidence we would get any regulatory benefits from a spin off of these divisions." An Oftel spokesman commented: "It is not for us as a regulator to tell BT how to restructure its business. "However, we're waiting to receive firm restructuring plans from BT. When we receive the plans we will look for any licensing or regulatory issues, as will the DTI," he said. BT's spokesman said: "It is possible BT would incur further costs through a split, particularly when you consider splitting the three divisions' IT systems." BT's financial situation has been improving. Debts have been slashed from £30bn in debt earlier this year to an almost respectable £17.5bn.