BT braced for change

Shareholders have been calling for the blood of other directors for some time now, so don't be surprised if some of Brace's senior colleagues decide to follow suit.

The issue is complex: there are few more emotive issues than the future of the former telecoms monopoly. We've had many, many emails on the subject, some attacking Oftel, some attacking BT, fewer defending its actions (and in the process blaming the media for having a vendetta. It's nice to think journalists have that much power, but there's more behind the company's woes than a few hacks penning nasty articles).

Oftel must shoulder some of the blame. It too made an announcement on Friday - it's just started a major review of the dial-up internet access market.

Once complete, the results will be used to decide what level of regulation, if any, is required in the market.

That's hardly a sign of a regulator that's ahead of the game, and is a symptom of a reactive organisation that has, not for the first time, been outmaneuvered by BT. This review should have happened months ago.

Still, it's better late than never - as long as Oftel does act on its findings (should they find fault with BT).

The same could be said of Brace's resignation: better late than never. BT needs a radical shake-up, and a fresh face in a key role might help drive that.

The news of his departure cheered the City to the extent that BT's share price shot up nearly eight per cent, and the FTSE 100 as a whole went up 20 points. That's how high the stakes are here.

It's certainly not too late for thorny issues like the state of the dial-up market and unmetered access to be resolved for the benefit of UK consumers, UK businesses, and a UK government desperate to make the country the best place for ecommerce.

But more heads may have to roll at BT, and Oftel may have to start acting with real vigour, before anything really positive emerges.