The end of BT as we know it?

Ofcom review could force telco to split...

NEWS Britain's communications landscape may be fundamentally altered today, when Ofcom updates the industry on the progress of its strategic telecoms review.

Ofcom's review has focused on the impact of BT's dominant position in the UK market. Back in November 2004, Ofcom threatened to launch an investigation into BT which could ultimately result in the company being split - unless it gave its rivals full and fair access to its network.

In response, BT has proposed to create a new 'access services' division that would be responsible for access to its core network, and vowed to cut the cost of various broadband products that it sells to other operators.

Today's announcement from Ofcom looks likely to settle the perennial issue of BT's break-up, one way or another. However, the telco would fiercely fight any attempt to break it up.

One BT insider said: "This will probably be the biggest announcement for BT in decades, and it could mean the biggest change since privatisation."

Graeme Wearden writes for ZDNet UK

Comments

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  1. 1. Joe Marsden

    *shakes head*

    This is nice for the government, BT and Ofcom, not the independent Telco industry which has struggled through a no investment market for years. BT Wholesale is pretty much already a separate entity. BT has only agreed 'in principle' to these new orders. BT have for years used delay tactics and other such mechanisms to fit within regulation and yet force competition out of business.

    Watch how BT handles the NextGen network rollout and be amazed as punters reach for Ofcoms jugular as consumer awareness of network speed grows to the point where Government-BT double dealing cant be sustained any longer.

    In short, nothing to see here move along...

    • 23 June 2005 10:00
    • Add comment

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