Telecoms regulator Ofcom is establishing a separate unit to monitor the performance of BTGroup PLC’s (LON:BT.A) broadband network operator Openreach.
The regulator and BT have been at loggerheads over the performance of Openreach for years amid claims from rivals of preferential treatment for its own broadband service.
That led to a decision in November that Openreach should be spun out into a legally separate entity, though it would still be owned by BT.
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Rivals would have access to poles and tunnels and Openreach would have a duty of care to treat all customers fairly.
Ofcom said the new unit would monitor whether all UK consumers and businesses on the network are receiving decent speeds, the right service to meet their needs and the pace of installation of superfast ‘full-fibre’ lines.
The regulator added it also wanted to see a ‘step-change’ in the quality of service.
Findings from the new monitor will be published every six months.
Ofcom added that the separation of Openreach from BT would take place once the government amends the Crown Guarantee, which underwrites the BT pension scheme.
Markets did not think the proposals too onerous as shares in BT rose 3% to 299.6p.