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Ofcom Reconsiders OpenReach FTTP Offer, Delays Equinox 2

Elizabeth Greenberg

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ofcom openreach
Ofcom has reconsidered their previous decision that the new offerings were not anti-competitive.

Ofcom, the market regulator, has delayed their official decision about the Openreach FTTP offer of Equinox 2, causing the offer to be delayed past its official launch date.

Previously, Ofcom had decided to allow Openreach to go forward with the new offering, which brought on a raft of criticism from competitors and anti-monopoly advocates.

Equinox 2 would introduce a new set of broadband deals from the BT-owned broadband provider. While the offerings would make getting fibre optic broadband cheaper for consumers, alternative networks – which have currently been able to compete with BT and Virgin Media – could be pushed out.

In order to reach national benchmarks for providing fibre optic broadband across the country, alternative network providers have popped up in the market, able to compete with larger, established companies like Openreach by offering competitive pricing.

However, Equinox 1, and now Equinox 2, have introduced lower prices that alt networks would struggle to match.

These claim the move is anti-competitive, to the degree that Ofcom has reconsidered their previous position.

Openreach’s prices would have many obvious benefits for consumers – lower prices from a wide-reaching broadband provider would be a boon to many.

But the new offerings could also squeeze out competition from the successful alt networks that have so far aided the UK in reaching their connectivity goals.

Previously, Ofcom’s decision was in favour of wider-broadband coverage over maintaining fairer market competition.

Outcry from competitor networks, and perhaps even BT CEO’s own commentary in a Financial Times piece, may have lead to this new decision.

In their official release, which announced the delay of Equinox 2, Ofcom shared internal letters between BT Group CEO Philip Jansen and Chief Executive of OfCom, Melanie Dawes.

The letters were concerning an interview Jansen had with the Financial Times on 2 February concerning his thoughts on the broadband market.

Jansen insisted much of his quotes were taken out of context, such as when he said “there is only going to be one national network” and that the broadband race could “end in tears” for competitors.

Dawes said that, despite Jansen explaining his comments, the article raised “significant concern” amongst the regulator.


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As Ofcom now says their final decision will not be ready in time for Equinox 2’s launch, which was due to 1 April, the offering will have to be delayed.

“We are considering issuing a Direction to Openreach, using our powers under the Communications Act 2003, to achieve this, unless Openreach voluntarily defers the launch of the offer,” the regulator communicated in their statement.

Ofcom has anticipated their decision will take a further two months of analysis than expected to come to a decision.

Elizabeth Greenberg

Staff Writer

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