Ofcom has ordered Openreach to withdraw a proposed fibre discount scheme.
The regulator said the “Incremental New to Openreach” offer was not fair and reasonable. It warned the plan could weaken competition in the UK broadband market.
The offer targeted internet service providers bringing new full-fibre customers to Openreach. Discounts could reach £9.50 per customer each month. The saving could last for up to 30 months.
However, Ofcom said the structure created a competitive risk. Smaller alternative networks may struggle to match those prices. They still need to recover build and operating costs.
This matters because many new fibre builders are still scaling. They need wholesale customers to fill their networks. A strong incumbent discount could slow that momentum.
Ofcom first raised concerns in July. It then consulted the industry on several planned Openreach commercial offers. After reviewing responses, it confirmed its decision.
The regulator did not block every planned Openreach offer. The company said other promotions will still proceed. These include an FTTP offer inside the VMO2 footprint.
Openreach Managing Director for Commercial, James Lowther, said: “Ofcom’s decision not to approve our incremental FTTP new to Openreach offer is in line with their consultation position. We put this offer forward in good faith to help our customers compete and deliver better value for households.
“While we continue to believe the offer would have benefited customers and competition, we’ll review the decision carefully and continue to engage constructively with Ofcom and our customers.
“We’ll launch our other offers and continue to compete fairly, including our FTTP offer within the VMO2 footprint and an ethernet offer for businesses. We’ll continue to invest in the UK’s digital infrastructure, bringing growth in every postcode and helping our customers deliver for homes and businesses.”
Alternative fibre players welcomed the intervention. Yet some said the regulator should act more firmly. They argue repeated short-term offers create uncertainty across the market.
A Nexfibre spokesperson said: “Ofcom’s decision today is a positive step towards protecting competition in the UK fibre market, although we would have liked to see the regulator go further.
“Openreach’s tactic of drip-feeding price changes via special offers needs to stop at a time when competition remains nascent. Ensuring alternative networks have the incentives to invest, grow and achieve scale will be critical to creating credible, sustainable competition.”
Virgin Media also supported the ruling. It linked the issue to wider fibre market consolidation.
A Virgin Media spokesperson said: “Although we believe the regulator could have gone further, we welcome Ofcom’s move to clip Openreach’s wings on its most aggressive offer and looking ahead it’s crucial the dominant incumbent’s behaviour is fully kept in check as meaningful wholesale competition emerges.
“More broadly, these repeated tactics show why consolidation in a fragmented, unstable fibre landscape is needed so that the sustainable, scaled challenge Openreach clearly fears fully materialises, leading to better outcomes for providers and consumers – that’s why approval of nexfibre’s acquisition of Netomnia is a crucial moment for the UK’s fibre future.
“In the meantime, we will carefully review the details of Ofcom’s decision.”
The decision underlines a central UK fibre challenge. Regulators want lower prices for consumers. They also want enough competition to survive long-term.
That balance will shape future broadband investment. It will also influence how wholesale fibre offers evolve. For operators, pricing now carries strategic and regulatory weight.
