UK regulator considering BT break-up plans

Telecoms group BT could be broken up under plans being considered by Britain's industry regulator Ofcom, it was reported today.

Ofcom has asked its chief technology officer Peter Ingram to evaluate splitting BT’s network infrastructure from its retail arm, according to the Financial Times.

It is hoped the move would reduce regulation of the sector and increase competition, as rivals must currently rely on BT’s co-operation to deliver their services.

Competitors such as Centrica Telecoms have sought the break-up of BT after struggling to eat into its dominant 70% share of the fixed-line market.

A major complaint by rivals has been that BT Retail – the operation that deals with its customers – is treated favourably by the network division of BT Wholesale.

Dividing the company into two units could release BT Retail from formal regulation by Ofcom, the FT stated.

Ofcom launched a wide-ranging review of the British telecoms sector in December, pledging to look at whether privatisation has delivered the goals of lower prices and wider choice.

A BT spokesman said: “We are disappointed and in other ways we are surprised because it has been looked at before and has not convinced people this is a sensible way forward.”