BT fields a further broadband bashing

That's according to the influential Institute of Economic Affairs which, in a a report out today, is urging the government to seize the initiative and make sure the break up of BT allows equal and fair access to its network.

Last November, BT announced its intention to split into a series of separate businesses. But the political think-tank said this does not go far enough.

The ideal solution is described in the report as a truly open network, owned by shareholders who wish it be accessible by as many service providers as possible.

But Tom Steinberg, author of the report, said the problems with unbundling the local loop so far have emerged because granting access to rivals stands in direct opposition to the job BT is trying to do for its shareholders.

So far, nine companies have withdrawn from BT's DSL trials. In addition, both AOL and Freeserve are threatening legal action over claims that BT is giving preferential treatment to its own ISP in the roll out of broadband services.