Industry heavyweights launch new campaign in wake of Ofcom ruling

TalkTalk, Sky, Vodafone and the Federation of Communication Services (FCS) have launched the Fix Britain's Internet campaign in response to Ofcom's decision not to separate Openreach from the BT Group.

"The campaign marks a new beginning," stated FCS CEO Chris Pateman. "Openreach customers have had enough, and they are not willing to put up with another 10 years of fudge and compromise. 

"Ofcom needs to deliver an Openreach that is fit for the future, not simply re-working the past. That means a much stronger response, not a watered-down compromise.

"This campaign is our only chance this decade to move the industry forward."

Pateman believes that Ofcom's proposals do not go far enough to avoid another 'undertakings' situation. 

"Slapping a fresh coat of paint on the ship and re-arranging the deck chairs won't help when the crew's all working to rule," he stated. "Especially when the rule book is the whole BT corporate culture. 

"Ofcom's focus on creating competition at the reseller level has been a great success. But its failure to promote competition at the wholesale, network and backhaul level has played to BT's monopoly, stifled innovation and short-changed business customers who have no choice but to buy the connectivity BT chooses to make available in their area with unthinkable lead times." 

FCS is also concerned that Ofcom's proposals fall short on a number of key issues, including the make-up of an Openreach board and the refusal to consider full budgetary autonomy. 

"It is utter nonsense to talk of 'functional separation' when the Openreach CEO is appointed by, and reports to, the BT Group board," added Pateman.

"It is hard to see how Openreach can be simultaneously independent and tied to a 'spending envelope' and associated cost of capital which might bear no relationship to market rates."

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