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Telecommunications reforms in Britain have cut broadband prices and increased competition, say the British regulator.
The operational separation of phone giant British Telecom in 2005 was the model for a similar break-up of Telecom which will see it operate as three separate divisions - retail, wholesale and network services.
In its annual report for last year on BT's compliance with the previous year's reforms, British regulator Ofcom said real progress had been made, but further action could offer benefits to UK consumers.
Ofcom said average broadband prices were down by two thirds on 2005, more than half of British consumers had a choice of four or more telco providers and between 5 and 8 per cent more consumers had chosen to switch phone or broadband provider.
"BT's progress in implementing the undertakings has made a very real contribution to the development of the UK telecoms market," said Ofcom chief executive Ed Richards. "The UK now has one of the most competitive markets anywhere in the world."
But he said the British regulatory body was proposing further requirements for BT's network division, Openreach, to compensate its wholesale customers if it fails to provide an adequate service.
"We want to ensure that Openreach has very clear incentives to deliver consistently high quality service to all of its customers."
Telecom is re-arranging its business units into an operational separate structure which will see a new access network business created before "separation day" at the end of March.
The company appointed Mark Ratcliffe to head the network division, with Matt Crockett becoming chief executive of its wholesale division.
The Commerce Commission will work with Telecom on regular reporting on its performance against regulation imposed.
Over time, a spokesperson said, part of the commission's monitoring and review function might include an annual review and also making any recommendations to the minister on the need for any variations.
