BT could be broken up by Ofcom

Regulator Ofcom is considering splitting BT into at least two separate units in order to create a better environment for competition and has asked its CTO to look into it, according to reports.

Dividing the telco into two distinct units would also make the Ofcom's life easier because any planned split would mean less regulatory obligations for the watchdog.

One such divorce could see BT Wholesale separated from BT Retail, according to a report in the Financial Times, with only the wholesale wing being overseen by Ofcom. The report also states that the former technology head of BT Retail, and now CTO at Ofcom, Peter Ingram, is weighing up the implications of the division.

With more than 70 per cent of all fixed lines currently being run by BT, Ofcom hopes that the move will be a boon to competition, said the FT. Rivals have also complained that BT Retail gets unfair favourable treatment from BT Wholesale.

BT also attracted the attention of the regulator last month, following changes to its residential phone tariffs that rival telcos called anticompetitive, leading Ofcom to launch an investigation.