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Thursday, 2 May, 2002, 15:50 GMT 16:50 UK
BT dismisses calls for break-up
BT engineer working on a line
BT now wants to focus on delivery of services
British telecoms giant BT has said suggestions that it should be broken up are out-dated and irrelevant.

It follows recommendations from MPs that splitting the dominant UK telco's network business from its retail arm could increase competition in the broadband market and reduce prices further.

The idea was originally suggested by Cable & Wireless at a Department of Culture, Media and Sport select committee hearing.

At the hearing a series of telecoms operators criticised BT and the watchdog Oftel's attempts to open up the broadband market to competition.

"We recommend that Oftel should take serious note of criticisms of its effectiveness in establishing a competitive UK market for broadband," the report said.

Concentrate on delivery

"It should follow up with remedial action, taking account of the proposal to require BT's network to stand on its own as a distinct business."


We don't feel we should be split up just to suit Cable & Wireless

BT spokesman
BT, however, remained defiant.

"We don't feel we should be split up just to suit Cable & Wireless," said a spokesman.

"We think it is a bit of an outdated view. It would be expensive and time consuming. It is time now to concentrate on delivery."

Not our job

Telecoms watchdog Oftel said it was not its job to split BT up.

"The structure of BT is a matter for BT. If a decision was made to split it up that would be made by the Department of Trade and Industry, not Oftel," said a spokesperson for the watchdog.

"The UK started later but evidence now shows that the broadband market is growing," she added.

Half a million homes in the UK now have a broadband internet connection. Around half are connected via an ADSL connection and half via cable.

BT dominates the ADSL market, offering services wholesale to other operators.

Door still open

Recent wholesale price cuts and the launch of a self-install service have dramatically increased the number of broadband connections, which is now running at 20,000 a week according to Oftel.

Operators are still largely dependent on BT for service and local loop unbundling - in which other operators take over BT's lines and run competing ADSL services - has failed to attract interest.

BT insists the door to its exchanges remains open.

"All our exchanges are open for business. We are sitting here saying 'Where are you?'" said a BT spokesman.

See also:

26 Apr 02 | Sci/Tech
BT's broadband domination plan
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