Thanks Bowdon.
Im not sure if Im missing something here, because everyone seems to be focusing on the Access. However, I cant really see that too much has actually changed in this particular area. I know we discussed long ago (during conversations about BDUK) that this option was already available. At the time I also found a document that showed Access Pricing and irrc BT's Access Fee's were about the cheapest (if not the cheapest) in Europe.
I'm still awaiting to see the impact on the following which I feel will be much bigger... and still have the potential to be as damaging as a full split.
Reform of Openreach. Openreach needs to change, taking its own decisions on budget, investment and strategy, in consultation with the wider industry.
I'll admit I havent read through the whole 112 page document... and all the other references it has made, of which there are lots.
One thing I note when starting to read through it is that it links to a reference from Sky which is another 37 page document (the reading soon stacks up).
Anyhow one thing I note in there is this in
Section 9• Boost to investment, including in last mile fibre-to-the-home networks by alternative operators. One of the often overlooked consequences of BT’s vertical integration is that the largest retail provider of fixed line telecoms services in the UK, BT Retail, is tied to purchasing inputs from Openreach; its business is non-contestable. The ability to compete for BT Retail’s business could incentivise alternative operators to invest in new infrastructure. This would also fundamentally alter the incentives facing a separated Openreach to make such investments – particularly in the 50% of the UK where it faces no competition from Virgin Media; and
• Increased competition. The threat of losing BT Retail customers is likely to have a transformative effect on Openreach, making it far more responsive to the needs of all its customers, including, for example, in relation to new product development, opportunities for co-investment, and service quality. No amount of behavioural regulation can provide such a stimulus.
I'm scratching my head here feeling Im missing something, why are they specifically targeting Openreach then. If this is the case then surely splitting off retail would better suit? Wouldn't that do what they require?
My stance has always been that the split off of Openreach would undoubtedly be nigh-on-impossible and severely disruptive to both BT and the Industry because of Openreach's integration with other depts such as R&D and BTw. If this is how Sky feels why has it deliberately target Openreach and not BTr/consumer which is where Ive always said would IMHO be the more logical place to split if there was any dividing to be made.
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Topic: A Closer Look at Ofcom’s Proposed BT Openreach Duct and Pole Access (Read 5261 times)