A PYMNTS Company

UK: Ofcom doesn’t have the power to split BT and Openreach, think tank warns

By  |  February 17, 2016

BT is facing fresh calls to split with Openreach, its broadband infrastructure division, ahead of a landmark review into the telecoms industry.

Ofcom is set to unveil next week a widely anticipated set of proposals for the next decade of the telecoms sector, including BT’s arm’s length control of Openreach, after almost a year of fierce debate in the industry.

The regulator has previously confirmed it will examine a “structural separation” of the Openreach division, which is also used by BT’s competitors, including Sky and TalkTalk.

But the Centre for Policy Studies said today Ofcom’s power had been overestimated, and it recommended the decision be referred to the Competition and Markets Authority instead. Ofcom hasn’t ever indicated it will refer Openreach to another authority, like the CMA.

“Ofcom does not have the power to split BT from BT Openreach – despite this being implied,” said Dan Mahoney, head of economic research at the think tank.

Full content: The Telegraph

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.