Report: Openreach independence ’well-established’
June 27, 2023
By Colin Mann
UK comms regulator Ofcom has published its latest monitoring report on digital infrastructure provider Openreach’s independence.
Since Openreach’s independence was established in 2018 – which saw it become a distinct company with its own staff, management, purpose and strategy within BT Group – Ofcom has been closely monitoring its compliance within this framework.
The latest report finds that these arrangements are generally well-established and well-embedded across BT and Openreach.
However, there have been examples where changes in staff and the introduction of new systems have led to occasional issues arising, notes Ofcom. While these have been swiftly addressed, it is important that BT and Openreach take all necessary steps to ensure complacency does not set in, adds the regulator.
The report also sets out Ofcom’s view on whether actions or decisions by Openreach have risked distorting competition and harming the market.
BT’s wider competition-related obligations are dependent on compliant behaviour being driven by example from the very top. The comments of BT’s Chief Executive, Philip Jansen, in February of this year – including being reported as saying Openreach’s fibre push will ‘end in tears’ for rivals – caused Ofcom and industry significant concern. “We would be extremely concerned to see similar comments in future and will be keeping this under close review,” says Ofcom.
Ofcom also monitors Openreach’s compliance with Ofcom’s Wholesale Fixed Telecoms Market rules, which are designed to support competition and investment in gigabit-capable networks. Under these rules, Openreach must meet specified quality-of-service performance standards, to ensure it provides an appropriate level of service to its customers.
Separately to the report, Openreach recently informed Ofcom that for the 2022/23 financial year it did not achieve some of the quality-of-service standards set by Ofcom. As a result, Ofcom has opened an investigation into Openreach’s performance and will publish updates in due course.