BT/OR Split!

BT and open reach have been told to legally separate from each other, just heard it on the Beeb.

Thing is will it make a difference?

*Edit to add*
I don't think it goes far enough, I think ofcom should get restructured also as they are completely untouchable from myself and the general public.

Edited by derekdel (Tue 29-Nov-16 08:06:22)

Anyone who thinks this legal separation will be easy and won't cost an absolute fortune should read this link. Specifically the bit about transfer of assets. It's from the union that represents BT staff and sums it up better than I ever could.

Union submission to Ofcom

Interesting.

The phrase engineering reality makes a point that must not be forgotten.

I think you'd be hard pressed after reading the document not to realise that you can't split off Openreach in any way without first merging Openreach, TSO and some of the functions of Wholesale. It just won't work from an engineering and R&D viewpoint.

I really hope Ofcom are properly listening to BT and the union's counter arguments rather than just ploughing on with their fingers in their ears or this will end up doing more harm than good.

If I was the pension regulator I would want a lot shorter period to remedy the pension deficit if the 2 parts are split as the risk increases significantly. ( I am surprised BT were allowed to go to 2030 to start with)

None of the documents I have seen seem to consider the splitting of the BT Debt between the two future parts. This too could get interesting as a significant anount would be OR as they get most of the asset value. All those recently provided Fibre assets, against the practically fully depeciated PSTN and ADSL networks. ( Football rights are paid each year so remain Retail liability but not debt) Only the EE aquisition on the balance for the rump.

Also have to consider the Business rates issue as the vast majority is OR and they will only get the proposed relief on future build NOT the existing fibre rollout.

Wwombat

And I thought splitting Scotland off would be 'interesting' in an engineering sense if they went independant!

Does it make anyone else think that maybe Ofcom are bluffing? There's too much that doesn't make sense isn't there? When you really think about all the fine details anyway.

Don't believe they are bluffing - if they don't go ahead with at least a half way house their jobs would be going elsewhere as Government tried to find others that will do what is the desired course.

In reply to a post by MrSaffron:

Don't believe they are bluffing - if they don't go ahead with at least a half way house their jobs would be going elsewhere as Government tried to find others that will do what is the desired course.

Forgive me if I say I don't think they have a clue

Technically, financially, politically

Waste of space

And our money

noone said it would be easy, is doing the easy thing always the best?