Monitoring of compliance with the new governance arrangements relating to Openreach

15 November 2018

Open

Programme into British Telecommunications Plc (“BT”) and Openreach Limited (“Openreach”)
Case opened 13 July 2017
Summary

On 10 March 2017, BT notified Ofcom of voluntary commitments to further reform Openreach. This means that Openreach will be a distinct company with its own staff, management, purpose and strategy. The commitments are designed to address the competition concerns identified by Ofcom in its Strategic Review of Digital Communications.

The focus of this programme is to monitor the Implementation of the new model, BT and Openreach’s compliance with the governance arrangements and whether Openreach acts independently and treats its customers equally. Additionally we will assess whether the arrangements deliver positive outcomes for consumers and businesses.

Relevant legal provision(s)

Section 89C of the Communications Act 2003

We have today published the Openreach Monitoring Unit’s Interim Monitoring Update (PDF, 948.1 KB) on work to deliver a more independent Openreach. This provides an update on further developments since our June 2018 implementation report and how the new arrangements between BT and Openreach are working in practice.

Today's report finds that we remain broadly satisfied with progress, although we recognise the changes will need some time to fully bed in and continued commitment from Openreach and BT is crucial to ensure the new arrangements are a success. We will continue to engage closely with BT, Openreach and industry to assess further progress through the remainder of the year. In June 2019 we intend to publish a full compliance report covering the period April 2018 to March 2019. The work of the OMU will also feed into wider Ofcom work to assess whether the new arrangements are delivering the right results for businesses and consumers.


Case leader

OMU@ofcom.org.uk

Case reference CW/01206/09/17