Openreach

Openreach was created in January 2006 as a result of Ofcom's Telecommunications Strategic Review, which aimed to address concerns about BT's dominance in the wholesale broadband market. The review found that BT's vertically integrated structure gave it an incentive to discriminate against rival providers, so Ofcom mandated the creation of a separate access division with its own board and staff. Openreach was tasked with operating the local loop—the copper wires and ducts connecting exchanges to premises—on an open, equal-access basis, with the same products and prices offered to all providers, including BT's own retail arm.²

In 2017, Ofcom further strengthened Openreach's independence by requiring it to become a separate legal entity within the BT Group, with its own board and a majority of non-executive directors. This followed a consultation that highlighted ongoing concerns about investment and service quality. The new structure, effective from April 2017, was designed to ensure that Openreach's decisions on network investment and maintenance were made in the interests of all its customers, not just BT.³

Openreach's network is the backbone of the UK's digital connectivity, comprising copper telephone lines, fibre-optic cables, and the associated ducts, poles, and exchanges. It provides a range of wholesale products, including the traditional copper-based 'Openreach Ethernet' and the newer fibre-to-the-cabinet (FTTC) and fibre-to-the-premises (FTTP) services. As of 2024, Openreach had passed over 14 million premises with full-fibre FTTP, with a target of 25 million by December 2026, part of a £15 billion investment programme.⁴

The company also manages the UK's emergency call service infrastructure, including the 999 service, and provides 'fibre on demand' for businesses requiring higher bandwidth. Its engineers handle over 400,000 repair visits and 200,000 new installations each month, making it one of the largest field operations in the country. Openreach's network is also used by mobile operators for backhaul, connecting cell sites to the core network.

Openreach has faced criticism over its service quality and the pace of fibre rollout, particularly in rural areas. In 2018, a parliamentary committee accused BT of 'dithering' over the deployment of full-fibre, leading to the UK lagging behind other European countries. Ofcom has imposed fines on Openreach for missing repair targets, and in 2022, the company was fined £2.5 million for failing to meet its obligations on the installation of new lines.⁵

The company has also been involved in disputes with competitors over pricing and the terms of access to its ducts and poles. In 2021, Ofcom ruled that Openreach's charges for FTTP were fair, but it has required the company to publish more detailed information about its network performance. Openreach has responded by increasing its investment and improving its engineering recruitment, but the tension between its role as a monopoly infrastructure provider and the demands of competition remains a central issue.⁶

Openreach's origins trace back to the 1980s, when British Telecom was privatised, but its name was coined in 2005 by a branding agency, chosen to reflect the 'open' access it would provide. The company's engineers are often referred to as 'Openreach engineers' but they are employed by BT, and many are members of the Communication Workers Union, which has historically been critical of BT's outsourcing practices.

Openreach operates a network of 'telephone exchanges' that date back to the early 20th century, some of which still contain electromechanical equipment, though most have been modernised. The company also runs a 'fibre first' programme that has seen it deploy over 1 million kilometres of fibre, enough to circle the Earth 25 times. In a niche move, Openreach has trialled the use of drones to inspect its overhead lines, and it has a team of 'pole climbers' who specialise in maintaining the 4 million telegraph poles it owns. The company's 'Smarter Working' initiative has also reduced its carbon footprint by 30% since 2016.

FTTC

Fibre to the cabinet: a broadband technology where fibre runs to a street cabinet and copper completes the connection to the premises.

FTTP

Fibre to the premises: a broadband technology where fibre runs directly to the home or business, offering higher speeds.

Local loop

The physical copper or fibre line that connects a customer's premises to the telephone exchange.

Wholesale

The sale of network access to other providers, who then sell services to end users.