Ofcom urged to loosen BT's grip on internet after Budget

BT’s critics have repeated calls that its grip on the UK’s internet infrastructure should be loosened despite measures unveiled in the Budget to improve broadband and kickstart the 5G revolution.

Chancellor Philip Hammond revealed plans to invest £200 million in full-fibre broadband and £16 million in a new 5G facility to test applications for ultra-high-speed internet.

O2 welcomed the 5G strategy but again said Ofcom should cap the amount of wireless spectrum a single operator can own at 35%. EE, owned by BT, currently dominates with 45% of the airwaves, with an auction taking place later this year.

Derek McManus, O2’s chief operating officer, said: “A competitive auction will allow the mobile industry to evolve successfully towards 5G.”

Professor Will Stewart, vice-president of the Institution of Engineering and Technology, argued that the £16 million investment “will not come anywhere close to bridging the investment gap needed”, adding: “Achieving universal coverage for the UK, outside high-capacity urban areas, will not be affordable without regulatory change.”

Andy Hollingworth, chief executive of small-business broadband provider Toople, said: “It shouldn’t be the Government’s responsibility” to fund broadband improvements. “The national network is owned by BT, and Openreach has full responsibility for investment in the network and technology decisions. £200 million will not make a difference.”

Ofcom is pushing for a separation of BT and Openreach, which owns the UK’s broadband infrastructure.