Sharon White, Ofcom Chief Executive“People across the UK today need affordable, reliable phone and broadband services. Coverage and quality are improving, but not fast enough to meet the growing expectations of consumers and businesses.So today we’ve announced fundamental reform of the telecoms market – more competition, a new structure for Openreach, tougher performance targets, and a range of measures to boost service quality.Together, this means a better deal for telecoms users, which will improve the services and networks that underpin how we live and work.”
Gavin Patterson, CEO of BT Group“The UK is ahead of its European peers when it comes to superfast broadband and we want it to maintain that position. That is why BT is keen to make significant additional investments over the next five years and beyond.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.Our plans would help ensure the UK remains the leading digital nation in the G20 and we are keen to get on with the job. They involve large scale investment however and that requires a high degree of regulatory clarity and certainty, something that is missing at present.Ofcom have today explained why breaking up BT would not lead to better service or more investment and that structural separation would be a last resort. We welcome those comments. The focus now needs to be on a strengthened but proportionate form of the current model and 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 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.We are happy to let other companies use our ducts and poles if they are genuinely keen to invest very large sums as we have done. Our ducts and poles have been open to competitors since 2009 but there has been little very interest to date. We will see if that now changes.We are keen to understand and address Ofcom’s concerns so we will 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. A voluntary, binding settlement is in everyone’s interests and we will work hard to ensure one is reached.”
Malcolm Corbett, INCA’s Chief Executive“We are disappointed that Ofcom hasn’t gone further to challenge the control BT exercises over the communications market, but pleased that Sharon White and her team have recognised the need for significant changes. INCA members build new fibre and wireless networks, often in the most challenging areas of the UK. For too long they have struggled to make sense of the rules and restrictions surrounding access to BT’s ducts and poles.A few stout-hearted companies are having a go – notably Warwicknet, Callflow Solutions and Hyperoptic – so steps to make it it easier for competitors to use the existing infrastructure are welcome. It means faster deployment of the high speed, affordable broadband services that consumers and businesses need.”
Hyperoptic“Hyperoptic, the U.K’s leading 1 Gb provider, welcomes Ofcoms decision to force Openreach to properly open its duct and pole network to allow other operators to rollout competing infrastructure services. Having already trialled using those ducts to offer our 1 Gb service, we will be able to reliably and affordably offer our market leading 1 Gb service to even more consumers.We also advise Ofcom to ensure that all customers of Openreach have a voice in future network decisions and not just those that resell the plain old vanilla FTTC services – it is those that are truly innovating that offer the UK the best chance at a digital future.”
Sky UK“We welcome Ofcom’s recognition that the current Openreach model is not working and that fundamental change is required. BT must now be held to account for improving service and enabling delivery of fibre to Britain’s homes and businesses.Ofcom’s actions today are not the end of the debate but a staging post towards delivering the network and service that Britain needs. We believe the simplest and most effective way to fix the current broken market structure is for Openreach to be completely independent. We are pleased to see that separation is still on the table.We will work with Ofcom to deliver change at Openreach and we look forward to playing a positive role in helping make Britain a digital world leader.”
Dido Harding, CEO of TalkTalk“Ofcom has done well in identifying many of the worst problems, including recognising, finally, that BT’s control of Openreach creates a fundamental conflict of interest which hurts customers.But having accepted all this, Ofcom has produced 100 pages of consultation with little concrete action behind it. The risk is that we end up with 10 more years of debate and delays, rather than facing into the problems and delivering improvements for frustrated customers now.”
Matthew Hare, CEO of Gigaclear“The focus on quality and performance underlying the conclusions in the Ofcom SDR are welcome. Gigaclear continues to invest in building new FTTP networks, and regardless of whether Openreach stays within the BT Group, intends to bring Gigabit Internet to tens of thousands more rural homes and businesses this year. The support for a stable investment climate will help us reach hundreds of thousands in the years ahead.”
Eli Katz, Chair of ITSPA“This once in a decade review has confirmed ITSPA members’ views that Openreach has not delivered the performance that the communications industry or the UK needs. We believe that Ofcom’s proposals for further scrutiny and an increased focus on service quality will ensure a fairer marketplace for all Openreach customers whilst also supporting vital investment in faster broadband services.We also support the proposals to encourage the roll out of new ‘fibre to the premise’ networks by ensuring competitors have better access to BT’s mast and duct infrastructure. This will improve competition, drive up performance and service levels as well as reduce costs for both individuals and businesses in the UK.”
Vodafone“We welcome Ofcom’s move to tighten its regulation and governance of BT Openreach and leave structural separation on the table. We also welcome the move to open up BT’s ducts and poles, which we have successfully used in other countries such as Portugal to provide customers with fibre to premises.However, BT still remains a monopoly provider with a regulated business running at a 28% profit margin. Therefore, we urge Ofcom to ensure BT reinvests the £4 billion in excess profits Openreach has generated over the last decade in bringing fibre to millions of premises across the country, and not just make half-promises to spend an unsubstantiated amount on more old copper cable: we agree with Ofcom that fibre is the future.We look forward to engaging with Ofcom as they implement these important regulatory changes.”
CityFibre“It is clear from Ofcom’s key strategic proposals that Openreach cannot and will not be allowed to remain solely responsible for delivering the fit-for-purpose infrastructure essential to fulfil the UK’s digital potential. Healthy competition and continued investment in fibre from multiple companies is vital.Ofcom’s strategy to encourage fibre investment, improve competition, and to ensure meaningful and usable access to BT’s physical infrastructure, creates a unique opportunity for alternative providers, such as CityFibre, to accelerate and extend new and existing roll-outs of next generation, ultrafast, fibre to the premises infrastructure projects nationwide.Alternative infrastructure providers, such as CityFibre, play an increasingly crucial part in the landscape and we are encouraged to see the report explicitly reference its support for the large-scale deployment of ultrafast networks. Innovative infrastructure builders are already responding to demand from businesses and consumers for ever increasing demands for pure fibre infrastructure and companies like ours are central to a shared goal of enabling the UK to compete and succeed in a digital age.Ofcom also recognises that at a technological level, BT’s continued strategic reliance on and investment in copper-based infrastructure – often masquerading as fibre – is inadequate to meet the soaring demand driven by new services and increased usage habits that the market continues to observe.With major metro fibre networks in 36 UK towns and cities as well as our York project rolling out fibre to the home with Sky and TalkTalk, CityFibre is the only wholesale competitor to Openreach. We will continue to respond to market demand and play a vital role in addressing the fibre connectivity needs for mobile operators, ISPs, the public sector and consumers. The recommendations put forward in Ofcom’s strategic review today only serve to strengthen our position and ability to respond to demand for our services across the UK in the near term.”
