Ofcom launches investigation of BT after Vodafone accuse it of hiding broadband failures
Ofcom has launched an investigation into BT after Vodafone accused it of manipulating fibre-optic installation figures to avoid penalties.
The telecoms regulator is looking into claims that BT’s engineering division, Openreach, has masked its failings in targets for completing the installation of fibre-optic cables.
The cables are needed by BT’s rivals to run superfast broadband services for businesses and to link mobile phone towers to the main network.
Vodafone’s complaint to Ofcom is seeking millions in compensation and states that Openreach’s failings have slowed down the roll-out of its 4G services and led to substantial delays in connecting businesses to faster broadband networks.
Openreach does not need to record instances when a line cannot be connected due to issues that are out of its control. Such instances can include when an engineer is unable to complete a job because of bad weather or when they cannot reach a mast on a farmer’s land because of a locked gate.
However Vodafone claims that Openreach has been abusing the loophole to cover up a lack of available engineers, design and planning problems and a failure to close roads at the right time as reasons. In the complaint it cited one instance where an Openreach engineer failed to connect a line because he had forgotten his boots and could not cross a muddy field.
In a statement Vodafone said it welcomed Ofcom’s decision to open the investigation and added it was “necessary to stamp out unacceptable practices by Openreach and hold them to account for their own service failings”. Vodafone is also calling on the regulator to take greater oversight in the market for business-grade fibre lines to prevent Openreach covering up any failings.
BT said that it was unhappy in Vodafone’s decision to complain to Ofcom saying that they have “been talking to Vodafone to try resolve this without the need for Ofcom intervention”. A BT spokesperson said it was “disappointed they’ve chosen to raise this as a regulatory dispute, especially as Ofcom is consulting on the broader issues as part of its business connectivity market review”.
Vodafone and other rivals to BT will be looking to the telecoms giant with increasing suspicion following its acquisition of EE for £12.5bn leading to fears that Openreach resources will focus more on supporting the company’s mobile arm at their expense.
The complaint is likely to have wider implications for the industry following an increase in calls for Openreach to be split from BT. Ofcom is expected to publish the findings of a wide-ranging review of the market by the end of the year which could recommend a separation.