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Standard User cheshire_man
(eat-sleep-adslguide) Tue 26-Jul-16 08:34:17
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Openreach to stay part of BT


[link to this post]
 
BT's Openreach division, which runs the UK's broadband infrastructure, should become a distinct company within the BT group, according to regulator Ofcom.

The media watchdog has resisted calls from BT's competitors to split Openreach off entirely.


Tony
Happily running Windows 10 Pro on both desktop and laptop
We have more and more laws, and less and less enforcement
Administrator MrSaffron
(staff) Tue 26-Jul-16 08:38:33
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Re: Openreach to stay part of BT


[re: cheshire_man] [link to this post]
 
So while not its own PLC the list of changes Ofcom proposes are pretty extensive

The author of the above post is a thinkbroadband staff member. It may not constitute an official statement on behalf of thinkbroadband.
Standard User cheshire_man
(eat-sleep-adslguide) Tue 26-Jul-16 08:42:25
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Re: Openreach to stay part of BT


[re: MrSaffron] [link to this post]
 
Indeed. I'd hate to think what the costs would be of a full split and the management time and effort involved. Perhaps Sky et al would have been happy to have paid for it all...

Tony
Happily running Windows 10 Pro on both desktop and laptop
We have more and more laws, and less and less enforcement


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Standard User BatBoy
(sensei) Tue 26-Jul-16 08:47:01
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Re: Openreach to stay part of BT


[re: cheshire_man] [link to this post]
 
Perhaps they would, if Openreach is fashioned along the lines of Network Rail.
Standard User TheEulerID
(experienced) Tue 26-Jul-16 10:30:09
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Re: Openreach to stay part of BT


[re: BatBoy] [link to this post]
 
Network Rail was created when the previously privatised company (Railtrack) was put into admiistration following action by the then Transport Secretary (Stephen Byers). There then followed a lot of controversy and some compensation was paid to Raltrack shareholders.

The assets (and debts £7bn - since grown to approach £40bn) were transferred to Network Rail which is, to all intents and purposes, a nationalised company as its debts are recognised as part of the National debt.

Such a route is not open to the government as there is no sense in which BT or OR are insolvent. To turn OR into some sort of not-for-profit company as Network Rail is (some would say a perpetual loss making company) would require the payment of a lot of compensation to BT shareholders. Perhaps £20bn or so as the value of the network. Who on earth is going to fund that?

To turn OR into a non-profit making company whilst still maintaining the fiction that it was privately owned (who on Earth would buy shares in such a company) would be ludicrous and quickly invite legal action.
Standard User RobertoS
(elder) Tue 26-Jul-16 10:46:27
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Re: Openreach to stay part of BT


[re: cheshire_man] [link to this post]
 
The clip of Sharon White at 8:17 on the Today programme is worth a listen for anyone who didn't hear it.

Kindness isn't going to cure the world of all its awfulness but it's a good place to begin. Daisy Ridley.
My broadband basic info/help site - www.robertos.me.uk. Domains, site and mail hosting - Tsohost.
Connection - AAISP Home::1 80/20. Sync 57791/14021kbps @ 600m. - BQM
Standard User ian007jen
(committed) Tue 26-Jul-16 10:49:59
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Re: Openreach to stay part of BT


[re: RobertoS] [link to this post]
 
Or the full conversation at 7.09
http://www.bbc.co.uk/programmes/b07lfsrl#play
Standard User TheEulerID
(experienced) Tue 26-Jul-16 11:02:39
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Re: Openreach to stay part of BT


[re: ian007jen] [link to this post]
 
It sounds very much like Ofcom are trying to take control of OR's investment plans via the back door.
Standard User BatBoy
(sensei) Tue 26-Jul-16 11:37:55
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Re: Openreach to stay part of BT


[re: TheEulerID] [link to this post]
 
In reply to a post by TheEulerID:
.
Such a route is not open to the government as there is no sense in which BT or OR are insolvent.
There was no sense in which Railtrack was insolvent either, but the Government made it happen.

Your argument that it could not happen to Openreach just came off the rails.
Standard User godsell4
(member) Tue 26-Jul-16 11:51:13
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Re: Openreach to stay part of BT


[re: cheshire_man] [link to this post]
 
Are the BDUK contracts with BT Group with BTOR being a subsidiary but not legally a separate entity from BT Group?

So now those and future BDUK like contracts will automatically be handled by BTOR?

I am sure BTOR will go through some kind of re-branding exercise as a result of this. What do you think they will rename BTOR to?

I suggest it will be We Like Copper.

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