British telecomwatchdog Ofcom will reportedly reveal a radical restructure of 's infrastructure unitOpenreach on July 26, but will stop short of a full separation.

Ofcom will also propose tough new service targets andreforms to Openreach's £1.4 billion cash flow, The Daily Telegraph (London) reported July 23.

BT's rival operators such as , andVodafone Group Plchave been pushing fora complete BT-Openreach split.

Further, Ofcom will want to dismiss by the House of Commonsculture, media and sport committee that it focused on addressing BT's broadbandprices rather than the service quality. The regulator said it intends to raiseminimum standards for BT, even as it backed the committee's claims that thetelco underinvested in broadband.

The watchdog will also stop short of interfering in BT's TVcontent business, according to the report, citing insiders.