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It might sound like an April Fools’ story, but two of the UK’s largest telecom rivals have teamed up to oppose Ofcom’s proposal to separate Openreach from BT. In a joint letter to the regulator, the companies argue that forcing Openreach out of BT would harm consumers rather than help them.
At the heart of their position is the claim that breaking Openreach away from BT would reduce future investment in the network. They warn that an independent Openreach might lack the financial and operational incentives to maintain or expand the infrastructure at the same level. The letter also cautions that allowing multiple operators to access and handle the physical network could increase the risk of service faults, a point that carries weight when considering customer experience and reliability.
Virgin Media has been an outspoken critic of further intervention in the superfast broadband market. The company recently announced a £3 billion expansion of its cable network and stated it would oppose regulatory changes that might slow deployment or complicate the rollout. A company spokesperson confirmed Virgin Media is supporting BT’s lobbying efforts, saying that a stable and proportionate regulatory framework is essential to secure continued investment in telecoms infrastructure.
Openreach was created as a subsidiary of BT after intervention by Ofcom to provide rival telephone and internet service providers (ISPs) with equal access to BT’s extensive copper and fibre network. The current debate centers on whether Openreach should be fully separated from BT to promote competition and reduce the market dominance currently shared by BT and Virgin Media.
ISPs that rely on BT’s network have mixed views. Vodafone, for example, has pushed back with its own evidence, preparing material that highlights BT’s margins to argue that the incumbent enjoys an unfair advantage. This underlines how contentious the issue is: operators that both compete with and depend on the same physical infrastructure are taking opposing positions on the best way to balance investment, competition, and consumer outcomes.
Ofcom is preparing a “major communications review,” the regulator’s first comprehensive assessment in ten years. The review aims to ensure the market remains competitive, fosters innovation, and delivers good value for customers. It comes at a time of significant industry change, including proposals such as BT’s plans to acquire the UK’s largest mobile operator, EE, and broader shifts in how broadband and mobile services are delivered.
The debate raises several important questions for policymakers and the public: will ownership separation encourage new investment and competition, or will it fragment responsibility and reduce incentives to maintain a high-quality national network? Could open access to the physical network increase innovation among service providers, or would multiple parties managing the same infrastructure create coordination problems and more faults for end users?
These are complex trade-offs. Regulators must weigh the potential long-term benefits of structural change against the short-term risks to service reliability and investment. Whatever path Ofcom chooses, the outcome will shape how the UK builds and operates its broadband infrastructure for years to come, affecting consumers, service providers, and the broader digital economy.
Do you think Openreach should be split from BT? Let us know in the comments.