By Daniel Hunter

Communications regulator Ofcom has launched a consultation on the break-up of BT Group.

The consultation will assess whether or not to split-off parts of the company. The main option would be to break-off BT Openreach from the BT Group.

It comes after a dispute between BT and its pay TV, phone and broadband rival Sky.

The majority of broadband providers use a fixed-line network controlled by BT. Many have complained that the service has often been poor, leading to complaints from customers.

BT rejects the complaints, claiming the make-up up the Group has been crucial to Openreach's success.

Sky called for BT to be broken up, focusing on Openreach. BT responded by calling for action from Ofcom to tackle Sky's dominance of the pay TV market.

Sky's chief strategy officer, Mai Fyfield, said: "It is welcome news that Ofcom is putting the future of Openreach at the centre of its review. For too long, consumers and businesses have been suffering because the existing structure does not deliver the innovation, competition and quality of service that they need.

"We believe Ofcom should now move quickly to ask the Competition and Markets Authority (CMA) to undertake a full competition inquiry. In a rapidly changing sector, it is vital for the UK that the national telecoms network delivers a service fit for the 21st century."