BT rivals attempt to bring consumer action against telecom company

TalkTalk, Sky and Vodafone argue that internet division Openreach doesn't deliver required investment

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Sharecast News | 01 Aug, 2016

TalkTalk, Sky and Vodafone have teamed up against BT in an effort to bring consumer action to the telecoms monopoly over its operation of Openreach, the company's tax-funded internet division.

Regulator Ofcom decided last week that Openreach should become a separate legal entity to BT, but the judgement fell well short of expectations from its competitors of completely separating the group.

In a statement given to The Times by Baroness Harding (TalkTalk chief executive), Stephen van Rooyen (Sky UK chief executive) and Jeroen Hoencamp (Vodafone UK boss), the trio attacked the lack of investment from BT towards new fibre-optic technology.

"Nearly every broadband provider in Britain depends on the national network, Openreach. Through taxpayer money and part of your bill, BT is paid billions to maintain the network. But it isn't delivering."

The group say that BT has done little to improve investment in its internet divisions, leaving many without sufficient internet access across the country.

BT have responded strongly, accusing TalkTalk, Vodafone and Sky of releasing misleading information to the public.

“We are disappointed by the false claims that underpin this campaign. In particular, it is outrageous to claim that BT spends more on football rights than on Openreach when the opposite is so clearly the case."

The telecoms company also refuted claims that it could be doing more to improve the accessibility to broadband services in Britain.

“We recognise there are homes and businesses that need faster broadband and we have plans to reach them. We mustn’t lose sight however of the fact that nine out of ten premises can access superfast speeds today and that will rise to 95 per cent next year."

Ofcom ruled that Openreach should become a "distinct company" that has its own board and budget, but did not go so far as to say that it will have to become totally split.

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