# Openreach Limited to have its own brand without the BT Group Plc logo

- Link: https://www.directorstalkinterviews.com/openreach-limited-brand-without-bt-group-plc-logo/412725241
- Published: 2017-03-10T07:17:48+00:00
- Author: Giles Arbor

**[BT Group Plc](https://www.directorstalkinterviews.com/ftse-company/bt-group-plc/bt-a.l)**(
LON:BT.A) and Ofcom have reached agreement on a long-term regulatory settlement 
that will see Openreach become a distinct, legally separate company with its own
Board1, within the BT Group. The agreement is based upon voluntary commitments submitted
by BT that the regulator has said meet its competition concerns.

Once the agreement is implemented:

· Around 32,000 employees will transfer to the new Openreach Limited following TUPE
consultation, and once pension arrangements are in place.

· Openreach Limited will have its own branding, which will not feature the BT logo.

· The Openreach CEO will report to the Openreach Chairman with accountability to
the BT Group Chief Executive with regards to certain legal and fiduciary duties 
that are consistent with BT’s responsibilities as a listed company.
 Openreach, 
which builds and maintains the tens of millions of copper and fibre lines that run
from telephone exchanges to homes and businesses across the UK, will assume greater
independence under its own Board of Directors. The agreement is intended to be comprehensive
and enduring, helping to ensure the UK telecommunications market remains one of 
the most competitive in the world. Hundreds of telecoms companies already use Openreach
and its national network on an equivalent basis, and many others are competing with
them. That will continue with enhanced safeguards to ensure all of Openreach’s customers
are treated equally.

> **Gavin Patterson, BT Group Plc Chief Executive, said:** “I believe this agreement
> will serve the long-term interests of millions of UK households, businesses and
> service providers that rely on our infrastructure. It will also end a period of
> uncertainty for our people and support further investment in the UK’s digital 
> infrastructure.
>  “This has been a long and challenging review where we have been
> balancing a number of competing interests. We have listened to criticism of our
> business and as a result are willing to make fundamental changes to the way Openreach
> will work in the future.”

1Following the implementation of the agreement which is subject to the satisfaction
of certain conditions, including those relating to pensions (see notes to editors).

The agreement, when in place, will provide BT and other companies with greater regulatory
clarity and certainty which is vital for investment. This will help the UK retain
its position as the leading digital economy in the G20 by share of GDP, with the
largest superfast network among major European nations.
 The transfer of around 
32,000 employees, under TUPE regulations, will be one of the largest such transfers
in UK corporate history. It will take place once the agreement has been implemented
and pension arrangements are in place for these employees. Under the agreement, 
Openreach will manage and operate its assets and trading but ownership of those 
assets and trading will remain with BT. The agreement builds on changes that BT 
has already made to the governance of Openreach in recent months. These include 
the creation of an Openreach Board with a majority of independent members. This 
Board will set Openreach’s medium term and annual operating plans and determine 
which technologies are deployed, within a strategic and financial framework defined
by BT. Openreach will be free to explore alternative co-investment models in private
with third parties. The Openreach CEO will report into the Openreach Chairman, with
accountability to the BT Group Chief Executive with regards to certain legal and
fiduciary duties that are consistent with BT’s responsibilities as a listed company.
The commitments that BT has notified to Ofcom are available at: http://www.btplc.
com/UKDigitalFuture/

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