Calls to break up BT resurface
As part of a wide-ranging review, Ofcom, the new communications
industry regulator, is considering plans to break up BT, the
Financial Times reported yesterday. But the regulator was swift to
point out that the discussions are purely hypothetical at this
time.
As part of a wide-ranging review, Ofcom, the new communications
industry regulator, is considering plans to break up BT, the
Financial Times reported yesterday. But the regulator was swift to
point out that the discussions are purely hypothetical at this
time.
Ofcom has been carrying out a detailed review of the industry and is due to report on its findings in the next week. But according to the Financial Times, the review has touched on the possibility of separating BT's residential service from its wholesale business, in order to aid competition.
Calls for such a break up have been a fairly regular feature of the telecoms scene, due to rivals' suspicions that the wholesale arm of the telecoms giant gives preferential treatment to its retail service. But to date these calls have always been rejected.
Most recently, MPs in the Trade and Industry Select Committee considered the issue and concluded, "the potential gains from an enforced separation between BT's wholesale and retail activities do not justify the upheaval involved."
Following the FT report, a BT spokesman told the BBC, "We are disappointed and in other ways we are surprised because it has been looked at before and has not convinced people this is a sensible way forward".
Ofcom was quick to stress that any talks on splitting up the company was merely part of the ongoing review.
