Openreach rapped by Ofcom

11 Dec 2007

According to the Financial Times Ofcom looks set to impose a stricter compensation regime on BT, under which it would have to automatically pay out to rivals that struggle to gain access to the telco’s network. The telecoms regulator expressed concern at the performance of Openreach, the BT subsidiary that rents out capacity on the group’s fixed-line network to rivals; it has laid down proposals aimed at improving Openreach’s performance, by requiring it to pay compensation to BT’s rivals when they encounter problems because of the subsidiary’s shortcomings. Ofcom said Openreach’s performance in supplying rivals with local loop unbundling products was ‘consistently below the expectation of the industry’. BT said: ‘Openreach is dedicated to improving customer service regardless of this consultation and service levels have in fact been improving considerably in recent months.’

United Kingdom, BT Group (incl. Openreach)