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Telenor wades into UK broadband debate

Norway’s Telenor has warned the UK regulator Ofcom that pursuing a ‘legal separation’ of BT and its Openreach unit is a ‘dead end’, in a sign that European telecoms companies fear Britain could set a dangerous precedent for the sector, a story in the Financial Times reports. “Ofcom has come under pressure to recommend that BT and Openreach, its network division, be completely broken up, but it has instead pushed for a legal separation of the two companies, with different management structures.” Sigve Brekke, chief executive of Telenor, has personally written to Sharon White, Ofcom’s CEO, ahead of making a formal submission as part of Ofcom’s digital communications review. As head of Norway’s largest telecoms company, he has warned her that such a move was a “dead end for the UK and European consumers and the telecoms industry”, in a letter seen by the Financial Times. “The move is unusual, as Telenor does not operate in the British telecoms market, and shows how high the stakes are for all European incumbent telecoms operators. ‘I am keen to avoid possible negative [digital communications review] outcomes that may influence or indeed risk serving as a precedent in other markets,’ said Brekke.” Read more

  • Thursday, 03 November 2016

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