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BT offers broadband to every rural home in the UK, for a price
The UK was confident when it unveiled plans to make broadband available to every home by 2020, but how's it going to get there? BT thinks it can help. The telecom giant has made an offer to spend up to £600 million (about $788 million) giving 1.4 million rural homes access to internet with speeds of at least 10Mbps. This would theoretically help the government meet its goal in one fell swoop, rather go through a slow existing process that requires residents to ask for access. It sounds tempting, especially since the current approach would leave some waiting for access when 2020 arrives, but it's not as clear cut a solution as it looks on the surface -- it could lead to higher internet bills.
BT fined £42 million for fudging late broadband payments
Ofcom's crackdown of BT and Openreach continues. The UK regulator has dealt the pair a £42 million fine for late broadband installations fitted on behalf of rival internet service providers, such as Sky and Virgin Media. Openreach handles the bulk of Britain's broadband infrastructure -- so to keep the market fair, it's legally obliged to set up new lines within 30 working days. Inevitably, Openreach encounters problems and occasionally can't meet that deadline. In exceptional circumstances, it can assume a contract extension by the ISP and reduce the compensation it would normally have to pay. However, Ofcom found that BT did this "retrospectively over a sustained period" to avoid fines. Tut-tut.
Ofcom proposes free cash for lengthy broadband outages
Under new proposals by Ofcom, Brits could soon receive automatic compensation for slow broadband repairs and missed engineer appointments. The measures are part of a larger crackdown on the UK's telephone and internet service providers. Openreach, the arm of BT that handles broadband infrastructure, was forced to become its own, "legally separate company" earlier this month. Now, Ofcom is effectively saying that it needs to do better than before, or face financial repercussions.
Openreach's VR videos detail the humdrum life of a network engineer
Of all the incredible and entertaining uses of virtual reality, trust Openreach to come up with arguably the most boring content ever for the fledgling medium. BT recently agreed to spin its Openreach infrastructure business into a legally separate company after pressure from regulator Ofcom and the telecoms industry as a whole, but in the interim, the show must go on. Openreach today announced an engineering recruitment drive that aims to attract 1,500 trainees over the next either months to embark on a year-long programme. And for the first time, they can sample some of the mundane realities of being a network engineer through the magic of VR.
BT is finally splitting Openreach into a separate company
It's been a long time coming, but BT has finally agreed to spin off Openreach, the part of its business that handles most of the UK's broadband infrastructure. Ofcom, the UK's media regulator, proposed such a split last July, in a move it believes will improve competition and investment. At the time, BT offered a handful of counterproposals -- its preference, of course, was to keep Openreach under its control -- but now the company has relented and accepted Ofcom's demands. (We suspect the threat of a tussle with the European Commission forced its hand.)
Ofcom will force BT to legally separate from Openreach
Ofcom, the UK's communications regulator, announced today that it will force the legal separation of BT and its broadband infrastructure business Openreach after the company voluntarily failed to address "competition concerns." The action comes after the provider was told it must spin Openreach off into a separate company in a bid to "deliver better outcomes for phone and broadband users."
Fix Britain's Internet: ISPs campaign to tear BT and Openreach apart
After reviewing the tangled relationship between BT and its broadband infrastructure subsidiary Openreach for more than a year, Ofcom yesterday put forward its plan to create a greater distinction between the two businesses. Under the proposals, Openreach would become "a legally separate company," whilst remaining under the BT Group umbrella; a move Ofcom says is the most cost-effective and least disruptive way of giving Openreach greater independence. But -- surprise, surprise -- BT competitors, which are also Openreach customers, believe Ofcom hasn't gone far enough.
Ofcom orders BT to make Openreach a 'legally separate company'
Ofcom has drawn up a plan to further distance BT and its subsidiary, Openreach, without breaking them up entirely. The UK regulator is now proposing that Openreach, which manages the bulk of the nation's broadband and telephone infrastructure, become "a legally separate company" within the BT Group, with its own board and directors. Most of these appointments would, under Ofcom's vision, be non-executives and "not affiliated to (the) BT Group in any way." They would, however, be selected and removed by BT, following consultation with Ofcom.
MPs tell BT to get its 'house in order' or face Openreach split
In the latest development in the BT/Openreach saga, a panel of cross-party MPs has called for the provider to be split from its broadband division if it doesn't invest significantly more in UK infrastructure. In a report, the Culture, Media and Sport Committee argues that Openreach could be spending "hundreds of millions of pounds a year," but BT's current approach is "sacrificing shareholder value and public benefits."
UK government sets new target for superfast broadband rollout
The government has today committed to a new target in its state-subsidised broadband program, aiming to deliver "superfast" internet to 97 percent of homes and businesses before the end of 2019. As The Telegraph reports, this means another half a million underserved premises should expect connections of at least 24 Mbps as part of the new plan. This is in addition to meeting the current goal of getting lines to 95 percent of the UK by the end of next year, with 90 percent already covered.
Ofcom won't split BT and Openreach, but there will be changes
For almost a year, communications regulator Ofcom has been conducting an investigation into whether BT and its Openreach broadband arm should be split up. Rival companies like Sky, TalkTalk and even the Labour party joined calls for it to be spun out in order to improve connectivity across Britain, and today they got their answer: Openreach is safe, at least for now. In an announcement this morning, Ofcom confirmed that while BT and Openreach would be allowed to operate in tandem, tighter controls are needed to ensure that its networks offer the best service to customers.
UK watchdog gives BT and EE's merger the go-ahead
BT's £12.5 billion acquisition of EE cleared a big hurdle today after the UK's competition watchdog agreed to provisionally clear the deal. The Competition & Markets Authority (CMA) said today that after considering whether a union between the two companies would impact mobile, fixed line and broadband services, the merger was "not expected to result in a substantial lessening of competition in any market in the UK."
BT promises 300Mbps broadband for 10 million homes by 2020
BT's chief executive Gavin Patterson has emerged today with a laundry list of promises designed to improve broadband speeds, coverage and public confidence in the UK. First up is a commitment to a new, minimum broadband speed of 5-10Mbps, which the company claims will be enough for people to "enjoy popular internet services like high definition video." The idea to push for a minimum standard was actually introduced by the UK government earlier this year. BT's involvement is a crucial statement of support, although at the moment there's no timeframe as to when it'll be introduced or even feasible. There's also the matter of the speeds themselves -- 5Mbps, most would argue, isn't enough to support a family or a group of flatmates that regularly use the internet simultaneously.
Virgin Media's next superfast city is Nottingham
Earlier this year, Virgin Media pledged to rapidly expand its cable broadband across the UK. Dubbed "Project Lightning," its aim is to offer speedy 152Mbps internet to an extra 4 million homes over the next five years. The company kicked off the project in Manchester, and today it's announcing the next city on its hit list: Nottingham. Roughly £25 million of its promised £3 billion investment will go towards fitting out 50,000 homes and businesses in the area. Specifically, this is the NG postcode -- so Nottingham's city centre, suburbs and surrounding towns, including Mansfield and Newark-upon-Trent. If you're desperate to get hooked up, you can register your interest now at Virgin Media's "Cable My Street" site -- there's no guarantee, but it just might move your neighbourhood further up the list.
Labour party joins calls for BT and Openreach breakup
UK telecoms regulator Ofcom is currently reviewing whether BT and Openreach, a subsidiary which manages most of the UK's broadband infrastructure, should be left alone or separated entirely. Sky and TalkTalk have already expressed their views -- unsurprisingly, they want the pair split up -- and now they've got another supporter in the Labour party. Chris Bryant, the shadow culture secretary, says Openreach and the government are delivering broadband "too slow, too late." In the Telegraph, he argues that Ofcom should work on the basis that Openreach needs to be "split from the rest of BT, unless their review produces conclusive evidence to the contrary." It's not an unwavering stance, but it's clear the Labour party favours reform. BT will need to do more interviews like the one below if it's to prove the current arrangement is in the public interest.
Ofcom invites suggestions on how to handle BT and Openreach
When Ofcom announced its new "Strategic Review of Digital Communications," the last of which forced BT to create Openreach, Sky and TalkTalk immediately came forward calling for both businesses to be broken up once and for all. Today, the regulator has published a discussion document for the review which details the different approaches now under consideration. Nothing has been left off the table, it seems -- they include keeping the current model, strengthening the controls that keep BT and Openreach's relationship in check, substantial market deregulation and, finally, complete separation.
BT goes on the offensive against Sky's pay-TV dominance
UK telecoms regulator Ofcom is currently taking a long, hard look at BT and its subsidiary Openreach, which is responsible for managing the company's broadband infrastructure. Ofcom's deciding whether it's in everyone's best interests to split the two completely, a move championed by several of BT's broadband competitors, Sky in particular. Recently, Sky published a report to further this agenda, using various stats to support its claim that Openreach provides an inadequate service that reflects badly on the companies using its network for their broadband products. It appears that BT has grown tired of being permanently on the defensive, and has today called for Ofcom to investigate Sky's dominant position in the pay TV market, which BT claims is lumbering Brits with unfairly high prices.
Sky uses stats to explain why BT and Openreach should split
It's no secret that Sky wants BT and Openreach split up. When Ofcom announced its new review of the UK telecommunications industry, the broadcaster said "structural separation" was vital to address what it perceives as a conflict of interest. Now that the investigation is underway, Sky has published its submission in full with a crucial recommendation: to upgrade the case to a "market investigation reference" with the Competition and Markets Authority (CMA). The company argues that the relationship between BT and Openreach is reducing competition and limiting providers like Sky with its inadequate service. Were the CMA to set up its own inquiry, it could, depending on the outcome, lead to a forced separation of BT and Openreach -- something both parties are keen to avoid.
BT doesn't want the burden of building landlines anymore
BT has asked Ofcom to relax requirements imposed on its Openreach network arm to provide traditional telephone services, with the expectation VoIP systems "will be used nationwide by 2025." Currently, Openreach is mandated by Ofcom to build and maintain equipment that provides fixed-line phone service at its exchanges, a regulation BT sees as outdated. According to BT, rules have "not kept up with the massive growth in competition and rapid pace of technology change over the last decade," and relaxing them "would improve efficiency, stimulate competition, and encourage investment." As BT's CEO Gavin Patterson said in May, "replacing legacy networks and platforms" will allow the company to cut costs and focus on internet services.
BT under pressure to sort out super-slow broadband installations
We all want super-fast internet in our homes, but for many people that's borderline impossible, because there's no fibre optic infrastructure in their area. When they're told that a connection is finally available, it can also feel like forever before engineers set up the line. If you've ever been in a similar situation, then you might be interested in Ofcom's latest proposals. The regulator is considering new rules that would force Openreach, a BT-owned division that manages UK broadband connections, to react faster to new "leased line" orders from business customers (which includes internet service providers).
