Communications Daily - issues arising from the creation of Openreach

Communications Daily reports on some of the remaining issues associated with the BT Undertakings -

“BT is fulfilling the commitments it made to avoid an antitrust probe, but several issues remain outstanding, the U.K. Office of Communications (Ofcom) said. Ofcom’s 2nd quarterly report noted several outstanding risks or issues arising from the creation of Openreach.

One is the visibility of internal controls and new accounting and trading models for Openreach.

A second issue is the fear by some “concerned parties” that the organizational structure adopted by BT Wholesale will make it difficult to maintain Chinese Walls between the different arms of the company.

In addition, Ofcom said BT had agreed to be more transparent in relation to its own use of products comparable to partial private circuits, but some concerned parties believe the telco isn’t making important aspects of that use public. However, it said BT is discussing the matter with industry.

On the issue of Openreach’s equipment location, Ofcom said some are concerned the Communications Providers Property Users Group BT promised to create won’t be effective in dealing with competitors’ demands for space on BT exchanges.

Ofcom said it will consult on possible alternatives at the end of January. It will publish a statement next month on how it intends to evaluate the outcomes of BT’s commitments and its strategic telecom review.”

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