Rivals Wait to See if BT’s Openreach Keeps Vow of Equal Access
Openreach, a British Telecom (BT) unit created to give rivals equal access to its network, launches today (Wed.). Openreach will provide a “first mile” of connections, fiber and wiring linking millions of residential and commercial users to communications providers’ networks through BT local exchanges, the telco said. The new division results from a deal with the Office of Communications (Ofcom), which used the cudgel of an antitrust probe to persuade the incumbent to play fair with competitors. U.K. alternative telcos said time will tell if Openreach can achieve that goal.
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Openreach has a hq and about 30,000 employees, most from BT Wholesale and BT Retail. The division is the 2nd- largest in BT Group by head count, with assets of around Pounds 8 billion ($14 billion) and revenue over Pounds 4 billion ($7 billion), BT said. It has its own brand identity: 22,000 vans are getting pain jobs featuring “bright multi-colored waves” replacing the BT logo.
Asked if other providers will notice changes, a BT spokesman said Openreach systems and processes were set by industry, Ofcom and BT to ensure it can handle customers’ requests. There’s also been a “change of attitude,” he said. BT was viewed, “not unreasonably,” as focusing on its financial and overall performance, he said. But Openreach employees will get incentives based on whether the organization provides a level playing field as gauged by Ofcom and BT’s competitors.
BT compliance will be assessed by an Equality of Access Board meeting monthly in the early stages, the spokesman said. It’s headed by Carl Symon, one of the company’s nonexecutive directors. Other members were chosen by Ofcom and industry. The panel will handle complaints from competitors and BT employees about alleged failures to comply with the pact, and regularly tell Ofcom how Openreach is doing.
The chief issue for BT rivals is that Openreach is an unproven organization, said Christine Roberts, dir.- external affairs for the U.K. Competitive Telecom Assn. (UKCTA). UKCTA members still are discussing with BT and Ofcom how Openreach will operate, and it’s unclear whether and how it will change their daily interactions with the telco, she said: “Progress is being made,” but until Openreach is running there’s no way to tell whether it can deliver the goods.