Patterson will remain in the role until a successor is chosen later this year.
Government announcement comes after it turned down BT's proposal in favour of a universal service obligation.
As the dust starts to settle Dave Millett of telecom consultants Equinox takes a detailed look at what this means.
Many of Openreach's problems will only be partially resolved if Ofcom carries through with its plans to make it a separate legal entity.
In light of today's announcement, various industry professionals have offered their reaction and analysis.
BT's new report details how the telecom spent over £9.3 billion and contributed £23 billion to the country's economy during this year alone.