Monitoring of compliance with the new governance arrangements relating to Openreach

26 February 2019

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 Annual Monitoring Report (PDF, 570.9 KB) on work to deliver a more independent Openreach. This is our third report, following on from our June 2018 implementation and November 2018 interim monitoring reports. This report explores how the new arrangements between BT and Openreach are working in practice. As set out in our 2018 statement on the commitments made by BT, we will from now publish our monitoring report on an annual basis. The next monitoring report is scheduled to be published in June 2020.

Today's report finds that real progress has been made implementing the new arrangements, but there is more to be done. It will take time for the changes to be fully realised and continued commitment from Openreach and BT is essential to ensure the success of the new arrangements. We will continue to engage closely with BT, Openreach and industry to assess further progress and monitor how the arrangements are working in practice. We intend to publish annual monitoring reports going forward and the work of the OMU will 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