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UK: No splitting in BT’s future

 |  July 27, 2016

Ofcom said in a ruling that the British telecom operator BT will keep ownership of its broadband network as long as it opens up further to rivals and invests more in upgrades.

“Openreach should be a legally separate company within BT Group with its own articles of association,” said the British regulator. “It should have its own board with a majority of non-executive directors, including the chair. These non-executives should not be affiliated to BT Group in any way, but would be both appointed and removed by BT in consultation with Ofcom.”

BT stated that it accepted the creation of the new separate board. “We have listened to Ofcom and industry and are introducing significant changes to meet their concerns,” said Gavin Patterson, BT Group chief executive.