Communications regulator Ofcom is pushing ahead with plans to make BT Openreach a separate company, in a bid to improve broadband competition in the UK.
The watchdog said it is proceeding with a formal notification to require the legal separation of Openreach from BT, and said that BT had failed to offer proposals to address competition concerns.
Openreach is the part of BT that maintains the UK's main telecoms network used by rivals such as Sky, TalkTalk, and Vodafone -- and BT's own retail business.
Creating a more independent Openreach is an important part improving broadband quality, the regulator said: "We are disappointed that BT has not yet come forward with proposals that meet our competition concerns. Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users."
Earlier this year Ofcom set out its competition concerns: that BT has the incentive and ability to favour its own retail business when making decisions about new network investments by Openreach.
Ofcom's proposal requires Openreach to become a distinct company with its own board with a majority of non-executive directors, including the chair, who are not affiliated with BT. Ofcom said it is now preparing to notify the European Commission of its intention to implement these plans...