Ofcom to review BT's Openreach

30-05-2008

Ofcom to review BT's Openreach
Ofcom has announced that it is to review the prices that BT Openreach can charge its rivals for using its telecoms network.

A statement from the communications watchdog today said the review is designed to "sustain and promote efficient competition in the provision of telecoms services for the benefit of UK citizens".

Openreach was created in January 2006 after Ofcom accepted legally-binding undertakings from BT Group, the statement explains.

Openreach was therefore created as an operationally separate business unit which in theory provides wholesale access telecoms services to all communications providers on an equivalent basis.

Ofcom said that at the time of its creation the maximum prices BT could charge for its main services had been agreed.

These charges did not include an annual adjustment for inflation or other cost movements and today's announcement marks the start of a review into these charges.

The review will be in two stages and will look at current and expected charges and the effect of new pricing arrangements on competition.

Ofcom plans on publishing a final statement on the charges by the end of the year.

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