Just dropped into my in-box ................. from the man at the very top, a guy in the know.
Ofcom digital communications reviewLast year Ofcom announced a review of the UK’s digital communications markets and this morning they have published their initial conclusions document.
As we have said all along, the UK benefits from Openreach being part of the BT Group. So today we are pleased that Ofcom haven’t felt the need to refer this issue to the CMA and that they see structural separation as a last resort. The focus now needs to be on a strengthened but proportionate form of the current model.
We have put forward a positive proposal that we believe can form the basis for further discussions with both Ofcom and the wider industry. Our proposal includes a new governance structure for Openreach as well as a clear commitment on investment. Openreach is already one of the most heavily regulated businesses in the world but we have volunteered to accept tighter regulation to bring matters to a clear and speedy conclusion.
Our ducts and poles have been open to competitors since 2009 but there has been very little interest to date. We are happy to let other companies use our ducts and poles but they will need to invest large sums and accept long paybacks as we have done.
The UK is already ahead of its European peers when it comes to superfast broadband and we want it to maintain that position. That’s why BT is keen to make significant additional investments. These would address slow speeds in the final five per cent of the UK, give SMEs more options and deliver a new ultrafast network.
We want to build an even faster network and we also plan to address slow speeds in the final five per cent of the country. It is also important that we give small businesses further options aside from dedicated lines, which suit many but not all. Customer expectations have increased dramatically in recent years and we are keen to work with Ofcom and industry to meet those expectations. We all want to improve service. Openreach is already subject to regulated service standards and we are happy to work with Ofcom to improve them.
I know for colleagues, particularly those in Openreach, Ofcom’s review has been unsettling. We now stand ready to move on from this debate and very much hope that Ofcom and industry will both take a constructive approach.
We are keen to understand and address Ofcom’s concerns so we will now review their paper in detail. A great deal of what they are proposing is already in place and we are open to discussions about how the current rules can be amended and updated. We believe a voluntary, binding settlement is in everyone’s interests and we will work hard to ensure one is reached.
Gavin