OPENREACH TO SEPERATE FROM BT GROUP

BT has now agreed to float Openreach of as a separate wholly owned BT company and it will no longer be a part of the BT Group. It will also be required to consult with Sky etc on major investment plans

http://www.bbc.co.uk/news/business-39228115

Edited by deleted (Fri 10-Mar-17 11:22:28)

In reply to a post by Bob_s2:

BT has now agreed to float Openreach of as a separate wholly owned BT company and it will no longer be a part of the BT Group. It will also be required to consult with Sky etc on major investment plans

http://www.bbc.co.uk/news/business-39228115

WRONG WRONG WRONG. Check your facts before posting rubbish.

BT and Ofcom have reached agreement on a long-term regulatory settlement that will see Openreach become a distinct, legally separate company with its own Board[1], within the BT Group.

It's Openreach, not Opnreach and why the cap locks?

There is no FLOATING involved

BT and Ofcom have reached agreement on a long-term regulatory settlement that will see Openreach become a distinct, legally separate company with its own Board[1], within the BT Group. The agreement is based upon voluntary commitments submitted by BT that the regulator has said meet its competition concerns.
Once the agreement is implemented:
� Around 32,000 employees will transfer to the new Openreach Limited following TUPE consultation, and once pension arrangements are in place.
� Openreach Limited will have its own branding, which will not feature the BT logo.
� The Openreach CEO will report to the Openreach Chairman with accountability to the BT Group Chief Executive with regards to certain legal and fiduciary duties that are consistent with BT�s responsibilities as a listed company.

Not quite. Openreach Limited will be wholly owned by BT Group, much like Plusnet are.

Also very important:

The implementation of the agreement is subject to the satisfaction of certain conditions. These include new legislation providing that the new company�s pension liabilities will be covered by equivalent arrangements to the current Crown Guarantee, thereby ensuring the transfer does not mean that its BT Pension Scheme members lose that protection, and the BT Pension Scheme Trustee having consented to Openreach Limited becoming a participating employer in the scheme.

In reply to a post by AndyHCZ:

It's Openreach, not Opnreach and why the cap locks?

Easily sorted as well as the spelling mistake. You could have done so in making your post .

In reply to a post by AndyHCZ:

Also very important:

The implementation of the agreement is subject to the satisfaction of certain conditions. These include new legislation providing that the new company�s pension liabilities will be covered by equivalent arrangements to the current Crown Guarantee, thereby ensuring the transfer does not mean that its BT Pension Scheme members lose that protection, and the BT Pension Scheme Trustee having consented to Openreach Limited becoming a participating employer in the scheme.

Have you a link to where that is from please? I don't recall seeing it in the BT announcement MrSaffron links to in the Main Site News Article.

That simply says TUPE will apply. So either I've missed it, or the announcement of what will happen to current employees' pension rights is premature, or your quotation is from an earlier internal BT document and superseded. No mention of new legislation being required.

7. Transfer of Openreach LoB employees

7.1 Upon the ASA taking effect in accordance with its terms, the employment contracts of c.32,000 employees in Openreach LoB will transfer from BT to Openreach Limited by way of a transfer under TUPE, assuming that TUPE then remains in force and provides for such a transfer.

7.2 Following the transfer referred to in paragraph 7.1, Openreach Limited will have control over the employment of the employees referred to in paragraph 7.1 and those recruited by Openreach Limited subsequently (together, the Openreach Employees).

7.3 Subject to the satisfaction of the conditions set out in the Notification, any employees who transfer to Openreach Limited and who are active members of the BT Pension Scheme at the point of transfer will continue to be eligible to participate in the BT Pension Scheme on the transfer of their employment to Openreach Limited, with no break in service as a result of the transfer.

7.4 Openreach Employees shall include:
(a) all field engineers working for the Openreach LoB from time to time, including their line management up to and including the Openreach CEO;
(b) those employees involved in the design, planning, implementation and in-life service management of the products provided by the Openreach Division, including their line management up to and including the Openreach CEO; and
(c) those employees who carry out activities which are ancillary to those described in (a) and (b) above, those who support and manage them, and those who undertake the sales function of Openreach LoB.

Openreach LoB (Line of Business) is part of the new Openreach Division of the Group, the other part being the new Openreach Limited. It basically comprises all the kit and assets required for Openreach to function, which remain BT Group assets. See Section 3 of this link, in the announcement document linked to above.

Edited by RobertoS (Fri 10-Mar-17 11:25:47)

I am afraid you are incorrect. It is being separated and floated off as a separate company. You are assuming a stock market floatation but that assumption is incorrect,.. It will become a Private Limited Company wholly owned by the BT group but will not be a part of the BT group ie it will no longer be vertically integrated

It will have its own company name and number and own board and its own P&L . It will b e totally spate from the BT Group. The only connection with the BT Group is that they will own a 100% of the shareholding.

I suggest you check your . IT is being floated off as a separate company and will no longer be a part of the BT group but will be owned by the BT Group

The floating of a company does not mean there will be a stock market listing. Openreach will be floated as a private limited company ie no public stock lising