While Openreach does already offer competitors such as Talk Talk and Vodafone use of its network, there have long been claims of favouritism, expensive fees, and a lack of investment. BT has agreed to separate its Openreach division after threats from regulator Ofcom to force it to do so. The company said the deal would allow it to focus on building out broadband networks in rural areas and offer services such as TV set-top boxes for those who cannot afford a traditional cable package. The new company will have its overall budget set by BT and will report to BT CEO Gavin Patterson on "legal, fiduciary and regulatory issues", but will have an independent board and make its own investment decisions. BT's near-monopoly on the UK's broadband infrastructure has been criticised for low investment, favourable treatment of BT and expensive fees charged to rivals. BT's shares rose 4.6% to 345.6p on the news of the separation.
BT has agreed to separate its Openreach division after threats from regulator Ofcom to force it to do so. The company said the deal would allow it to focus on building out broadband networks in rural areas and offer services such as TV set-top boxes for those who cannot afford a traditional cable package. The new company will have its overall budget set by BT and will report to BT CEO Gavin Patterson on "legal, fiduciary and regulatory issues", but will have an independent board and make its own investment decisions. BT's near-monopoly on the UK's broadband infrastructure has been criticised for low investment, favourable treatment of BT and expensive fees charged to rivals. BT's shares rose 4.6% to 345.6p on the news of the separation.