Vodafone is also for a break-up of BT, the Financial Times reported. The company made the statement ahead of a sector consultation set to close on 8 October. Regulator Ofcom will then announce its review of the sector that will set the regulatory framework for the next 10 years.
The future structure of BT has become a focus because of complaints over its role in providing broadband services to homes and to rivals that rely on its national network to supply their own customers with broadband. In a submission to Ofcom, Vodafone will argue that BT generated GBP 6.5 billion in excessive profits over the past 10 years with its Openreach division, which controls the national network.
Vodafone believes that these profits give BT an advantage over rivals which also offer broadband services. Vodafone wants Ofcom to push for BT to be split entirely from Openreach. It argues this would create a standalone infrastructure business that would be incentivised to roll out the best broadband networks for all retail internet providers.
BT said the UK was the “most digitally advanced nation in the G20”, in part owing to its “multibillion-pound investment in broadband”. It labelled Vodafone’s claims “misleading” and said it had ambitious plans for the next decade that will take the UK from “a superfast nation to an ultrafast one”.
Sky and TalkTalk will make similar submissions to Ofcom for BT to be separated from its national network, which they argue is needed to increase investment in faster fibre services in the UK for the next generation of online services.
Ofcom has acknowledged that a full separation of BT is among options being considered. However, Ed Vaizey, the UK’s minister for the digital economy, has come out in support for the existing structure.
