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Ofcom Clears Path for Potential Openreach Deregulation

Tom Quinn

,

UK fibre broadband
The communications watchdog has finalised its fibre strategy, with plans to keep Openreach on a short leash until long‑term competition takes hold.

Ofcom has finalised its plans to boost competition and investment across the UK’s fibre networks, paving the way for Openreach’s gradual deregulation as the nationwide full‑fibre rollout enters its final phase.

Touting the success of the country’s full-fibre deployment so far, the regulator reported that 78% of British households now have access to full-fibre broadband, up from less than a quarter five years ago, while plans from broadband providers indicate that fibre networks will reach almost 29 million properties by the end of 2027.

The vast majority of UK properties (87%) now have access to a gigabit-capable network, with around three-quarters having access to at least two networks, and nearly a third able to choose between three, competition which Ofcom said has improved services and prices.

However, the watchdog said that Openreach still retains significant power in the market, meaning rules for the BT-owned network operator must continue to be enforced over the next five years, until a point where competition is sustainable.

To incentivise investment and maintain momentum for the full-fibre rollout, Ofcom’s plans include requiring Openreach to allow all operators to deploy and operate their own fibre networks using its infrastructure, such as ducts and poles, at fair, cost-based prices, allowing alt nets to deploy quickly and economically across the UK.

The watchdog stressed that these measures could help smaller alt nets in particular, which have until now seen far less uptake than larger providers due to the time and costs involved in establishing a network. 

The regulator will also cap the price that Openreach can charge retail providers who lease its infrastructure, like Vodafone or Sky, for download speeds up to 80Mbit/s, rather than 40Mbit/s at present. The prices of higher-speed products will remain unregulated, so providers have an incentive to invest in networks that can deliver faster speeds.

Additionally, in less densely populated parts of the UK where Openreach is unlikely to face competition, Ofcom said it will introduce new backstop standards around the speed and quality of repairs and installations for Openreach’s full-fibre services.

Ofcom cautioned that if genuine, long‑term competition hasn’t emerged by its next review in 2031, it will intervene, but if the market matures as expected, the watchdog said it will not regulate Openreach beyond access to ducts and poles.


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“Five years ago, we put in place new rules to drive competition between networks and get them building full-fibre broadband, which now reaches nearly eight in 10 homes and offices across the country,” said Natalie Black, Ofcom’s group director for infrastructure and connectivity.

“But our mission isn’t yet complete, and we’re creating the right conditions for the fibre rollout in its final phase. Our review of the rules has been an extensive and complex undertaking given the nature of the market, and we appreciate the considered engagement from the sector.”

Tom Quinn

Staff Writer, DIGIT

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