Ofcom has told BT it can’t use funds from its Openreach services division to fund its takeover of EE.
The regulator made the statement in a document regarding the leased lines network known as the Business Connectivity Market Review. It said: ‘BT must not attribute costs in connection with BT Group’s acquisition of EE to business connectivity services.’
The services division of the British telecoms giant has been the subject of much debate as the EE takeover has progressed. Many of the brands rivals have suggested that Openreach should be de-merged from BT, with Vodafone and TalkTalk particularly vociferous in their complaints.
Vodafone ‘disappointed’ by BT/EE merger approval
MP’s have also discussed the role that Openreach plays in the development of the UK’s infrastructure. In a debate over the UK’s connectivity ‘not spots’ a number of representatives from different parties questioned whether Openreach in its current form was the best vehicle for improving the UK’s broadband network and mobile backhaul.
MPs reveal BT competition fears during not-spot debate
This week also saw Openreach announce the departure of its CEO Joe Garner, who left the services division after less than two years in the role.
BT Openreach CEO leaves the business