The new head of Ofcom has warned BT that she was not “easily intimidated” by the threat of a 10-year legal battle over the future of its infrastructure arm Openreach.
Sharon White was quizzed by the Commons Culture, Media and Sport Committee on a range of issues, including BBC governance.
She was asked about recent comments from Gavin Patterson, BT’s chief executive, that a forced separation of Openreach could lead to “10 years of litigation and arguments”.
In response, Ms White said: “I can’t say I’m easily intimidated. Our drive is what is going to be the best possible deal for the consumer.”
She told the committee that the watchdog lacked the competence to take over the governance of the BBC, should the BBC Trust be abolished, and said she would “draw a line in the sand” over suggestions that the watchdog could simply extend its current role – regulating BBC programmes for harm and offence – to complete oversight of the corporation’s activities.
With the BBC Trust apparently doomed, Chancellor George Osborne has indicated his support for Ofcom taking over the governance role. The Green Paper on the BBC’s future last week listed bringing BBC regulation under Ofcom’s remit as one possible option.
Ms White, who before she was poached by Ofcom was the senior civil servant in charge of implementing Mr Osborne’s cuts programme, said she could not envisage the watchdog performing the “core job” of the BBC Trust.
“I would put a line in the sand between [regulation] and the core responsibilities of the governance function. That is not a responsibility we have the competence to discharge,” Ms White told the committee. “I do not see Ofcom setting strategy or budget audit functions. Those decisions need to rest in the leadership of the BBC.”
If the Government insisted on extending Ofcom’s remit “we will do the best possible job,” she said. But Ms White warned that Ofcom lacked the resources to take on the handling of the 250,000 complaints the BBC receives each year, alongside its existing role in overseeing the telecoms industry.
The Green Paper proposed three possible futures for the regulation of the BBC – switching to Ofcom, strengthening the existing Trust, or creating a new, independent media regulator dubbed “OfBeeb”.
Ms White was questioned about measures proposed by the Prime Minister to strengthen Ofcom’s role in taking action against channels which broadcast extremist content. Senior figures in broadcasting have already dismissed proposals, backed by the Home Secretary, Theresa May, to allow Ofcom to vet programmes before transmission as impractical and unjustified.
On the issue of extremist content, Ms White said: “We haven’t found we have been unable to act because of [lack of] legislation.”
