BT Regulatory News (BT.A)

24 July 2018

CREATION OF A MORE INDEPENDENT OPENREACH NEARS COMPLETION, AS BT GROUP CONSULTS ON TRANSFER OF 31,000 EMPLOYEES

The creation of a more independent Openreach Limited is nearing completion, after BT Group today announced significant progress by starting formal consultation on the transfer of around 31,000 employees to the new legally separate business.

As reported by industry regulator Ofcom last month, BT has been taking positive action since March last year, creating the separate legal entity Openreach Limited, with its own independent board and strategy which serves all of its customers in the communications market equally. There has also been progress in other areas, such as removing 'BT' from branding, putting in place compliance procedures, and carrying out staff training on the changes.

The consultation with unions and employees is due to finish by the end of September, with a planned transfer to Openreach Limited on 1 October 2018. This is the final phase in the creation of a more independent, legally separate business, focused on investing to ensure Britain remains at the forefront of digital communications.

BT Group chief executive Gavin Patterson commented:

 "We are absolutely committed to giving Openreach greater strategic independence and ensuring it delivers the connectivity and service that homes and businesses across Britain need.

"We welcome Ofcom's confirmation in June that we're making good progress towards legal separation, and are now delivering the final stage of what was agreed under the Digital Communications Review.

"Openreach now has its own Board, greater strategic and operational independence, and a separate brand. From October it will also have its own, independent workforce.

"We will work with our partner unions to ensure a smooth transition to Openreach. It is an exciting time to join the company as it invests heavily in front-line customer service and spearheads the rollout of Britain's next-generation digital infrastructure."

-ends-

Notes to Editors:

The transfer is achieved through a transfer under The Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) "TUPE". TUPE sets out the information and consultation approach as well as various employee rights such as continuity of employment and protecting terms and conditions.

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About BT

BT's purpose is to use the power of communications to make a better world. It is one of the world's leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services. BT consists of four customer-facing units: Consumer, Enterprise, Global Services and Openreach.

For the year ended 31 March 2018, BT Group's reported revenue was £23,723m with reported profit before taxation of £2,616m.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.btplc.com