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[Chrysalis]

Oh this isn't a good idea. Far better to merge Openreach and Wholesale and separate the end user facing segments.

Peter Cochrane is basically a zealot whose opinion on this stuff should be treated with extreme scepticism. His PhD has absolutely no relevance to his obsession with FTTP and complete tunnel vision to any of the consequences or benefits of it.

The thinking probably is that BTw compete with talktalk, zen and vodafone, who all provide wholesale backhaul as well and BTw would have the unfair advantage owning openreach.  (zen sell to idnet)

[broadstairs]

I think this is going to run & run..... I simply do not believe that it is in the best interest for the main BT group to retain any control at all over Openreach. Independent means a complete split in my view. BT will move heaven and earth to retain control over OR and the investment plans which to my mind completely means NO INDEPENDENCE at all.

Stuart

[Oldjim]

From today's Times (paywalled) http://www.thetimes.co.uk/edition/business/openreach-stalemate-as-bt-pensions-fears-grow-krjr7bn3b

Worries over the size of BT’s pension deficit have become a sticking point in talks over the future of Openreach, the broadband business at the centre of a dispute over competition in the industry.

The Pensions Regulator is seeking assurances from Ofcom about its proposal to force the legal separation of BT Openreach, which operates the backbone of Britain’s broadband internet network.

In what is likely to prove an embarrassing move for Sharon White, chief executive of the telecoms watchdog, the Pensions Regulator has demanded clarity over the implications of the proposal for more than 302,000 BT pensioners who rely on the scheme, which had assets of £46 billion in June last year but far higher liabilities.

[broadstairs]

Sadly more and more companies are failing to support their employees pension funds properly and it becomes a headache in situations like this. I think there needs to be some quite forceful intervention by government to ensure companies realise and fix the black holes in these funds. I do think some companies might use this to prevent either splits or takeovers in future (I am not suggesting that BT is doing or has done this) but some companies may just try it on so it needs fixing.

Stuart

[parkdale]

Oh yes , nothing more annoying than 'Pension Holidays' for company's ... Don't pay in during the good years...
Take out to prop up the company dividend in bad years with no intension of putting it back, shareholders first pensioners second...
If thats not bad enough, corporate take overs, only thing they ever look at is the 'Pension balance sheet', then siphon off any and all spare cash + management fees too......
Don't get me started.....

[Bowdon]

Well I guess this is movement at least. If it fails then at least BT can say they did what Ofcom wanted.

If it leaves us in a worst situation then BT themselves will be joining the complaining group too and give Ofcom a bigger headache.

[gt94sss2]

Frankly, its a rod of Ofcom's own making - they have refused for years to allow BT/Openreach to include the costs of its pension scheme when deciding what their regulated prices (i.e. line rental etc.) should be - unlike other regulators which allow pension costs.

[Chrysalis]

which is made even more silly by the fact they allowed retail price rental to be way above what openreach actually charge.  Making their strict pricing on openreach pointless.

[Weaver]

I didn't know about Zen and IdNet.

1. Hope Zen might have a chance to sell to AA. I wonder?

2. I wonder if the likes of Gigaclear resell to small retail ISPs?

3. Wonder if B4RN might ever wholesale? Then locals would have a choice of ISPs over the excellent clean simple infrastructure.

[niemand]

2. I wonder if the likes of Gigaclear resell to small retail ISPs?

3. Wonder if B4RN might ever wholesale? Then locals would have a choice of ISPs over the excellent clean simple infrastructure.

They both already do. Gigaclear via Fluidata's Service Exchange Platform, B4RN at the same prices per line as retail directly.