Greater separation of Openreach from BT 'must spark a new wave of countryside investment'

Having access to broadband has never been more important for rural communities
Having access to broadband has never been more important for rural communities

Structural changes to how the BT-owned internet infrastructure provider 'Openreach' is governed 'must spark a new wave of investment in our countryside.'

That is the message of the CLA, which represents farmers, landowners and other rural businesses in England and Wales, in response to Ofcom’s proposals today for ‘Strengthening Openreach’s strategic and operational independence.’

The CLA expressed its opposition to a forced sell off of Openreach by BT because of the slowdown and distortion it could cause to the main objective which is delivering existing future investment in getting homes and businesses connected across the countryside.

Ofcom has agreed with this view and not forced BT into a selloff of the company.

However Ofcom’s decision to require greater separation of Openreach within BT and to require Openreach to help BT’s competitors to roll out their own cables and other infrastructure is a positive step that could unlock significant investment potential.

'Rural communities deserve better broadband'

CLA President Ross Murray said: "Rural communities deserve better broadband, despite significant progress too many places still receive poor or non-existent service and Openreach must do better.

"We welcome Ofcom’s recommendations and we see them as an important step towards planning for the next phase of investment in our broadband infrastructure.

"Given changes in the law going through Parliament this year that will guarantee access to fast broadband (at least 10megabits per second download speed) for all homes and businesses, the question is how do we start planning for the next wave of investment.

"We strongly support the requirement for Openreach to make it easier for competitors to identify and use Openreach’s network of underground ducts and poles to place new fibre optic cables that connect homes and businesses to superfast internet speeds.

'New ideas and new sources of investment'

"As we start to look beyond the immediate needs and plan for the future, we need new ideas, new sources of investment and new commitment to upgrading our infrastructure.

"We have to start now delivering the types of connections that will make it seamlessly possible for anyone to run their home and business fully integrated to the rest of the world from the heart of the English and Welsh countryside."

The CLA Rural Business 2030 programme is underway, looking at the opportunities for investment in the rural economy and the solutions required to make it happen.

The programme, which includes a specific work stream looking at the challenge of increasing rural connectivity, will culminate in the CLA Rural Business Conference in 2030.