Smart operator

23 June 2005 By Mike Verdin

The telecoms operator has avoided the two main pitfalls it could have fallen into after Ofcom’s review of its dominant market position. It’s not going to be broken up, and its longdistance network has been spared draconian regulation.

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Ofcom, the telecoms regulator, backed a partial breakup of BT in a drive to relax the company's stranglehold over the UK's fixed line telecoms market.

The move will hive off BT's monopoly assets, and 30,000 staff, into an Access Services division. The unit, which will be given its own headquarters and a separate logo, will be charged with ensuring rival operators equal access to the infrastructure.

The division will be overseen by a fivemember Equal Access Board. The board will include three independent members and two chosen by BT.

BT has accepted undertakings over access to its socalled 21st century network, which will not be governed by the Access Services division.

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