BT has named a new head of Openreach, the functionally separated infrastructure division rivals say needs new ownership.
Clive Selley is to become the new CEO of Openreach, the infrastructure division of BT (LSE:BT), replacing Joe Garner, who announced his departure in November after less than two years on the job.
Selley, currently group CIO and CEO of BT Technology, Service and Operations (BT TSO), will take over this quarter, BT said. His own replacement has not yet been named.
The incumbent describes him as “one of the UK’s foremost experts in network technology and digital infrastructure, having specialised in networks, software development, IT and various forms of engineering.”
As CEO of BT TSO, Clive is responsible for 12,000 staff, 8,000 contractors and a multi-billion pound budget. He chairs BT’s cyber security council and has an extensive knowledge of regulatory affairs, the company said.
Of Openreach, Selley said: “The huge investment it has made over the past decade has made the UK a broadband leader, and we need to build on those foundations by deploying fibre to further communities and by rolling out ultrafast broadband. Customer service is a top priority of mine and I am committed to delivering further improvements by working closely with all industry partners who rely on our network to serve their customers.
Openreach ownership remains contentious
BT’s agreed £12.5bn acquisition of UK mobile operator EE received provisional approval from antitrust watchdog the Competition and Markets Authority (CMA), which said it had not found serious issues around BT’s ownership of Openreach. Rivals including Sky and TalkTalk have argued that the functional separation of the business carried out in 2005 should now go further.
Speaking to the Financial Times today, BT chairman Sir Mike Rake said: “Functional separation has been hugely successful. Why would you stop something that is successful?…And in practice, who is going to buy it? How long would it take?”
In July, communications regulator Ofcom said it was listening to the repeated requests from BT’s rivals for a structural separation of the infrastructure division, and is considering these as part of its strategic review of the UK’s digital communications.
Updating the industry on its progress on the review, which was announced in March, Ofcom said that separating Openreach from BT could “deliver competition or wider benefits for end users” and “remove BT’s underlying incentive to discriminate against competitors”, alongside simplifying existing regulation.
However, Ofcom said any separation “would be challenging and it may not address some concerns relating to Openreach, such as service quality, or the timing and level of investment decisions”.
The CMA’s deadline for considering feedback on its provisional approval of BT/EE is 16 January.
