Ofcom poised to rule on BT's future

Britain's communications landscape may be fundamentally altered on Thursday, when Ofcom updates the industry on the progress of its strategic telecoms review.

Ofcom's review has focused on the impact of BT's dominant position in the UK market. Back in November 2004, Ofcom threatened to launch an investigation into BT which could ultimately result in the company being split -- unless it gave its rivals full and fair access to its network.

In response, BT has proposed to create a new 'access services' division that would be responsible for access to its core network, and vowed to cut the cost of various broadband products that it sells to other operators.

Thursday's announcement from Ofcom looks likely to settle the perennial issue of BT's break-up, one way or another. However, the telco would fiercely fight any attempt to break it up.

"This will probably be the biggest announcement for BT in decades, and it could mean the biggest change since privatisation," said one BT insider.