Fibre Competition Protected
Ofcom Intervenes to Block Openreach Discount, Citing Harm to Fibre Network Competition
Anonymous
Key Points
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Ofcom highlighted competition concerns from alternative networks by naming altnets such as CityFibre and Hyperoptic, arguing the NTN offer could undermine their ability to win customers and grow market share.
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Openreach has a multi-year investment plan, including around ÂŁ15 billion to roll out full-fibre to about 25 million premises by December 2026 and up to 30 million by 2030, with roughly 23.5 million premises already covered.
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Virgin Media’s proposed one-off £50 rebate for new full‑fibre customers in certain areas was not blocked by Ofcom, receiving a pass as it is viewed as less likely to prevent competition.
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Ofcom said it will consult on its proposed remedies to Openreach’s NTN offer, indicating the process is not yet final and further stakeholder input will be sought.
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Natalie Black, Ofcom’s Group Director for Infrastructure and Connectivity, stressed that while Openreach must be able to compete, it cannot use its significant market power to push other networks out of the market.
Britain's telecom regulator Ofcom has moved to block BT's Openreach from offering a heavily discounted deal for new customers, marking the first time it has used its powers to stop a commercial Openreach offer. The Independent reported that Ofcom deemed the deal "not fair and reasonable" and warned it could damage competition from rival broadband networks.
The offer in question — called "Incremental New to Openreach" — gave discounts of up to £9.50 per new customer for up to 30 months. Mobile Europe reported that Ofcom provisionally concluded the deal could harm the still-developing fibre broadband market, where roughly half of eligible households have yet to sign up.
Why Ofcom Says the Discount Crossed a Line
Ofcom's concern is straightforward. Openreach controls the main wholesale network that most UK internet providers use. Because of that dominant position, it can offer deals that smaller rivals simply cannot match. The regulator argued that the NTN deal let Openreach use that power to attract customers away from competing networks at artificially low prices.
Natalie Black, Ofcom's Group Director for Infrastructure and Connectivity, said that while "Openreach must be able to compete," it "cannot use its significant market power to push other networks out of the market." Head Topics reported that Ofcom named altnets — alternative networks — such as CityFibre and Hyperoptic as networks that could be harmed by the deal.
Openreach's ÂŁ15 Billion Fibre Rollout at Stake
Openreach is in the middle of a massive build-out. The company has pledged around ÂŁ15 billion to bring full-fibre broadband to about 25 million homes by December 2026, and up to 30 million by 2030. Market Screener reported that roughly 23.5 million premises are already covered.
The scale of that investment makes pricing decisions hugely important. Ofcom wants to ensure that Openreach competes on the merits of its network — not by undercutting rivals through deals that only new customers enjoy while existing ones pay more.
Virgin Media's ÂŁ50 Rebate Gets a Pass
Not every discount drew Ofcom's fire. A separate proposal from Virgin Media — a one-off £50 rebate for new full-fibre customers in certain areas — was not blocked. Mobile Europe reported that Ofcom viewed the rebate as far less likely to prevent competition, given its limited, one-time nature.
The contrast highlights where Ofcom draws the line. A single upfront rebate is different from a rolling 30-month discount that directly undercuts rivals on an ongoing basis. The regulator appears willing to allow targeted promotions as long as they do not structurally tilt the market.
Ofcom to Consult Before Any Final Decision
The proposal is not yet final. Market Screener reported that Ofcom said it will consult on its proposed remedies, meaning Openreach and other industry players will get a chance to respond before any action is enforced. The regulator stressed the process is still at the provisional stage.
The move signals that Ofcom is prepared to act quickly when it believes market power is being misused. With half of eligible UK homes still not on full fibre, the regulator sees fair competition between Openreach and altnets as essential to driving the national broadband upgrade forward.
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