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BT agrees to hive off its network arm in UK

BT agrees to hive off its network arm in UK

LONDON (AP) — BT, Britain's former telephone monopoly, has agreed to hive off its unit Openreach unit, which oversees the network used by all phone and broadband companies throughout the country, in response to competition concerns.

The U.K. communications regulator, Ofcom, says BT agreed to turn Openreach into an independent company that will have its own board of directors and chief executive while remaining part of BT Group.

Ofcom ordered the separation in November because of concerns BT wasn't consulting with other telecommunications companies about investments that affect them.

Sharon White, Ofcom's chief executive, says the new Openreach will "serve all its customers equally, working truly independently and taking investment decisions on behalf of the whole industry - not just BT."