MediaGuardian reports -

“Ofcom will decide by the end of June whether BT should be broken up in order to ensure that rival operators are able to gain access to its network of local phone lines to provide new services such as video on demand.

At a seminar organised by the regulator today as part of its strategic review of the UK’s telecoms market, Ofcom boss Stephen Carter also characterised BT’s recently proposed changes to its organisation “as a response of two halves”.

He told industry executives at the seminar that he intends to test whether BT’s commitment to “fair and balanced competition” can be made to work in practice.

If, by the end of June, Ofcom is not satisfied that it can produce a workable solution, the regulator will call on the Competition Commission to investigate and advise it to split the company’s network operation from its retail business.”

Comment - If it comes to this, everyone in the market better check the depth of their pockets and fasten the seat belts for a two/three year legal rollercoaster ride. I bet all this tough talk makes them quake at BT! Would a referral under the Enterprise Act actually work? A couple of legal eagles on our team at OfcomWatch reckon it would not easily acheive the stated end goal despite Ofcom’s confidence. Still, their lawyers are paid more than ours - so who are we to suggest its potentially a lame duck approach?