Ofcom has ordered Openreach to withdraw a proposed full fibre wholesale offer after concluding that it could harm competition in the UK broadband market.
The regulator confirmed its decision on 28 September following a consultation into a number of commercial offers proposed by Openreach for its Fibre to the Premises (FTTP) and Ethernet wholesale services.
At the centre of Ofcom’s concerns was Openreach’s “Incremental New to Openreach Customer Offer”, which would have provided internet service providers with monthly discounts for bringing additional new full fibre customers onto the Openreach network.
The discounts could have reached as much as £9.50 per customer per month for up to 30 months.
Ofcom said it was concerned that targeting substantial discounts at new customers could make it more difficult for competing fibre networks to attract the customers they need to grow.
The decision comes at an important stage for Britain’s full fibre market. While fibre infrastructure has expanded rapidly in recent years, network operators are increasingly competing not just to reach homes but to persuade households to actually switch to their networks.
Ofcom has previously highlighted sustainable network competition as an important factor in keeping broadband prices competitive and encouraging continued investment in infrastructure.
Tharindu Fernando, co-founder of a platform called Full Fibre Broadband Deals, said maintaining competition between networks will become increasingly important as the market matures.
“Building full fibre infrastructure was the first big challenge, but getting households connected to those networks is becoming just as important,” Fernando said.
“Consumers benefit when several networks and broadband providers are competing for their business. That competition can ultimately mean more choice, better pricing and stronger incentives for providers to improve their services.”
The intervention is notable because Openreach holds significant market power in parts of the UK’s wholesale broadband market, meaning some of its commercial offers are subject to additional regulatory scrutiny.
However, Ofcom has not blocked all of the commercial proposals submitted by Openreach.
After reviewing the other notified offers, the regulator decided they did not raise competition concerns significant enough to justify intervention.
The wider debate reflects how the UK broadband market is changing. Openreach remains the country’s largest fixed broadband network, but it increasingly competes with Virgin Media’s network and a growing group of alternative fibre operators that have invested heavily in their own infrastructure.
For these newer networks, attracting enough paying customers is becoming increasingly important as large parts of the country now have access to more than one broadband infrastructure provider.
Ofcom’s regulatory framework for 2026 to 2031 is designed to encourage continued investment in gigabit-capable networks while ensuring Openreach can compete without using its market position in ways that could undermine developing competitors.
For households, much of this competition happens behind the scenes. Consumers generally buy broadband from retail providers, while those providers rely on networks such as Openreach and other fibre operators to deliver the physical connection.
But increased competition at the network level can influence the range of packages, speeds and prices ultimately available to households.
Ofcom’s latest decision suggests the regulator intends to keep a close watch on that competition as Britain moves further into the full fibre era.
