Openreach shelves board overhaul amid concerns over BT links
Openreach is said to have shelved plans to overhaul its board amid concerns the move would erode its independence from BT.
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The telecoms network business, which was spun off from BT last year, has been looking to appoint BT’s strategy chief Michael Sherman as a director, the Sunday Telegraph reported.
Openreach chairman Mike McTighe is said to have pushed the proposal, arguing it would speed up decision-making as the company spearheads efforts to roll out the UK’s full-fibre broadband network.
But McTighe has now agreed to put the plans on hold for a year after rivals such as Sky protested the move, according to the report.
The decision comes as Openreach looks to rebuild trust with other broadband providers that use the company’s infrastructure while also competing with BT.
Openreach is also said to be concerned about its links with BT amid fears the appointment could grant the parent company greater influence.
Despite this, regulator Ofcom has granted informal approval for the new director, while McTighe is also eyeing a further non-executive director appointment to help bolster board experience of the infrastructure industry.
In its inaugural annual report published in July, Ofcom said that while progress had been made with the split, Openreach needed to increase its independence from BT.
Read more: Ofcom rules BT’s Openreach must give rivals greater access
Openreach has been contacted for comment.