Re: BT should return ALL the subsidy...
I think you'll find that BT Openreach and BT are the same company
Well, alright, yes. But all divisions are kept isolated by regulation. They can't just move funds around as they see fit. Certainly not funds given to one particular division for a specific purpose by the government.
BT Openreach can simply jack up their wholesale prices...In fact, BTOR jacking up wholesale prices means that they make their resellers more expensive and thus benefits BT Retail
Ofcom regulates those, precisely to ensure that Openreach doesn't squeeze out competitors.
Of course there are things BT does to try and reduce the costs of regulation but the kind of funding reallocation the OP is suggesting is a whole order of magnitude beyond what most industry pundits would be prepared to consider. But anyway if you reread my post I didn't actually deny it or try to defend BT. I just implied that I felt it unlikely and that the OP should report what evidence they have to the appropriate authorities.