BT cool on board rift speculation

'No tension, no split'

By Tim Richardson • Get more from this author

Posted in Telecoms, 13th October 2004 15:58 GMT

Free webcast: Service level monitoring and management

BT has played down speculation that it's facing a boardroom split over the telco's future broadband plans.

BT Retail boss, Pierre Danon, has been talking openly about the consumer-facing business investing in local loop unbundling (LLU) to compete with rivals. The move has yet to be discussed at board level and, if it went ahead, could potentially hammer revenues for BT Wholesale, which currently provides network services for BT Retail.

As a result, there has been much speculation that the move could lead to a split within the UK's dominant fixed line telco.

However, a spokesman for BT Retail dismissed the reports insisting there was "no tension, no split". The idea of BT Retail examining LLU was merely one of a number of options being looked at by the company, he said.

As it happens, some analysts reckon that BT Retail investing in LLU might be a good idea since it would allow the company to compete more effectively wth rivals. What's more, they insist that Mr Danon is merely doing his job by - at the very least - examining all avenues to ensure that BT Retail stays on top of its game.

Then again, there are those who reckon that's a load of old tosh and who would love nothing more than to be a fly on the wall next time BT's chiefs get together. ®