BT has been handed a proposition by Ofcom to save breaking up with Openreach. The regulator has said BT could make Openreach become "a legally separate company" within the BT Group with its own board of directors. While these new positions would not be fulfilled by executives within BT, Engadget notes Ofcom would work with the company to select and remove appointments.
Ofcom also states that Clive Salley, Openreach's CEO, should answer to the new board within the company, as opposed to anyone at BT. The reason Ofcom is suggesting a separation is due to concerns from service providers in the UK that Openreach is working in its parent company's interests, something which it's hoped this legal separation could help alleviate.
It's believed a negotiation process will proceed, but with both Ofcom and BT standing firm on either side of the fence, it could take some time for an agreement to be met. As expected, BT wishes to instead make smaller changes to how things are ran, not wanting to separate itself from Openreach.
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