London MPs today backed moves which could see BT forced to break up its internet broadband business under competition proposals.
The telecoms giant is currently required to provide access on equal terms to its competitors though the Openreach fibre broadband network.
But regulator Ofcom said it is reviewing whether splitting away Openreach may be the best way to improve competition in the sector.
It follows complaints that the network’s performance on behalf of other providers has often been poor.
MPs have raised concerns over problems and costs for some businesses of getting superfast broadband connections in central London.
Meg Hillier, Labour MP for Hackney South and Shoreditch, said: “It’s right that Ofcom is looking at all the options to improve broadband provision and make sure the market is working effectively.”
Mark Field, Conservative for the Cities of London and Westminster, added: “The status quo is not working.”
Other possibilities under consideration by the watchdog include retaining the current model, applying new rules forcing BT to strengthen it, or deregulating and allowing different networks to provide phone and broadband services without using BT’s network at all.
Mai Fyfield, Sky’s chief strategy officer, backed the Ofcom move, saying: “For too long, consumers and businesses have been suffering because the existing structure does not deliver the innovation, competition and quality of service that they need.”
He called for the regulator to quickly ask the Competition and Markets Authority to undertake a full competition inquiry.
But BT chief executive Gavin Patterson argued against splitting Openreach away from the company.
He stressed that nearly 90 per cent of the country now received superfast broadband and BT was pressing ahead with plans for ultra-fast broadband.
