TELECOMS watchdog Ofcom demanded yesterday that BT relinquish its monopoly control of broadband service provision by separating itself from its subsidiary Openreach, which provides the service.

However, the Communication Workers Union (CWU) warned that any split must provide safeguards for the pay, conditions and pension entitlements of the 32,000 workers involved.

CWU deputy general secretary Andy Kerr said separating BT and Openreach would be “a long drawn-out political and legal process” which would slow down investment in Britain’s broadband infrastructure.

“BT faces criticism from politicians, consumers and its competitors, but many of BT’s rivals haven’t themselves invested in infrastructure because the commercial case for investment is weak,” he pointed out.

“The move also doesn’t take account the 32,000 workers who could be affected by the changes in terms of their job security, future terms and conditions and their pensions.”