U.K. Lets BT Keep Broadband Unit, If Held at Arm’s Length
- Regulator says telecom should set up separate board for unit
- Competitors call Ofcom plan a step in the right direction
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U.K. regulators rejected calls for a breakup of BT Group Plc, saying the telecommunications carrier should keep ownership of its broadband network as long as it opens up further to rivals and invests more in upgrades.
Ofcom proposed setting up a legally separate but wholly owned entity for BT’s Openreach network, overseen by an independent board, according to a statement Tuesday. Sky Plc, TalkTalk Telecom Group Plc and Vodafone Group Plc have called for greater separation of Openreach, saying BT’s control restricts investment and hampers their ability to serve customers.