BT opens network access with openreach

New division to provide third-party companies with regulated network access

BT has launched openreach, a new infrastructure access business responsible for the nationwide local network that connects users to its exchanges.

The launch is part of a legally-binding settlement, agreed by the telecoms giant and industry regulator Ofcom, to finalise new and more transparent regulations governing access to the BT network by third party telephony companies and ISPs .

‘We have delivered on the 230-plus undertakings mandated by Ofcom to deliver a level of competitive transparency that is unique in the world,’ said BT chief executive Ben Veerwayen.

The new openreach business will bring together 30,000 engineers and other operational staff, currently scattered across BT's Wholesale and Retail divisions, into one organisation before it begins trading in January 2006.

All existing logos will be replaced by the openreach brand to distinguish it from BT Group’s other businesses. And a new product portfolio is promised within six months.

Openreach chief executive Steve Robertson says the new business will be run to ensure the way providers buy and receive network services is done in a completely equal and fair way.

‘This launch involves two major aspects,’ he said. ‘The first is to operate access to the network absolutely transparently, equally and fairly. That means, whether they are from BT Retail, AOL or any other provider.

‘The second is to ensure the infrastructure we make available to providers is fit for purpose.’

The new division's performance will be monitored by a newly-created Equality of Access Board (EAB) on behalf of Ofcom. BT non-executive board member Carl Symon will act as chairman alongside other members who will be appointed in the next three weeks.

The EAB will report regularly to the BT Board, in addition to delivering a twice-yearly, publicly-available report to Ofcom.

The regulator welcomed BT’s move. ‘After a full year of consultation, Ofcom has accepted BT’s commitments. The management of openreach and the EAB must now deliver – and be seen to deliver,' said Ofcom chief executive Stephen Carter.

‘We are hopeful this new approach to competition regulation will stimulate investment, innovation and sustainable growth in this critical industrial sector.’