However, the proposals infuriated rival companies such as TalkTalk, Sky and Vodafone, which have warned that only a forced separation will guarantee that BT does not unfairly profit from its monopoly over the network.

Dido Harding, the chief executive of TalkTalk, said that BT would be able to "game" the new regulatory system. She told BBC Radio 4's Today programme: "My concern is that what it looks like Ofcom is proposing is another regime that lawyers and Ofcom required to interpret. They have been absolutely brilliant at gaming the existing regulatory system. A new complicated regulatory system is just going to favour BT again.

"The proposals would allow BT to make the appointments on to the Openreach board. It’s not clear but it looks as if they won’t have to declare what dividends they are paying back to BT group. We won’t know how much profit they are making and whether they are investing it in improving their network or giving it to BT."

Gavin Patterson, the chief executive of BT, described the proposals as a "sensible way forward". However, the plans go significantly further than BT's own offer of reform, under which Mr Paterson would still appoint BT Openreach's chief executive.