No Big Changes To UK Broadband Regs, Despite No Real Competition For BT

Britain's telecoms watchdog is giving itself a pat on the back for overseeing the UK's fiber broadband rollout thus far, so doesn't want to rock the boat by making any drastic changes to the regulations at this point, despite admitting there is no effective competition for BT.

Ofcom claims the country is on course to have "full-fiber" internet connectivity (i.e. fiber-to-the-premises or FTTP) available to 96 percent of homes and businesses by 2027, if all the planned network deployments are realized.

That doesn't mean all those properties will actually have full-fiber broadband, just that it is within easy reach if they want it. FTTP take-up in areas where it is available currently stands at 35 percent on average, the agency says.

Now, the Telecoms Access Review 2026 is looming, which means regulations governing the wholesale broadband market from April 2026 to March 2031 are due to be set, and Ofcom is laying out proposals for consultation. 

The regulator is adopting a conservative approach, and not proposing to make any major changes from the rules that have been in operation for the previous five years since the Wholesale Fixed Telecoms Market Review 2021.

At its core is recognition that BT Group (with its infrastructure arm Openreach) still has significant market power (SMP) as the UK's former state-owned telecoms monopoly, and so the regulatory framework is intended to address the competition concerns resulting from this.

This means Openreach will continue to be required to allow other network operators access to its collection of utility poles (aka telegraph poles) and underground ducts when they are laying their own fiber via so-called Physical Infrastructure Access (PIA) rules.

Ofcom also says it will keep to its policy of treating parts of the UK differently, depending on whether Openreach is the only game in town or if it has competition.

The proposal summary notes that "while we have seen significant network investment since 2021 by rivals to Openreach, we do not think there are any areas yet where competition is sufficiently well-established or effective."

Such regions would be designated "Area 1," if they existed (they currently do not). The regulator gives the moniker "Area 2" to the regions where there is potential for "material and sustainable competition." "Area 3" is the name given to places where there is unlikely to be any competition.

Ofcom proposes to expand parts of the country it currently thinks are "Area 2" from making up 70 percent of UK premises to 90 percent – arriving at this conclusion because it claims there has been more widespread build-out by other network providers (alternative networks, or AltNets) than was forseen in 2021.

For the remaining 10 percent of the country, Ofcom says it will "continue to focus on allowing Openreach the opportunity to recover the reasonable costs of its investments in rolling out its full-fiber network commercially, but recognize the important role public subsidy will play in rollout in this area."

On Openreach's wholesale pricing for internet service providers (ISPs), the regulator says it will keep restrictions on deals that could "stifle investment and the development of sustainable network competition." Specifically, this covers restrictions on Openreach's ability to set geographic discounts, but will extend this to cover all charges (not just rental charges as in the previous review.)

Openreach will still be required to give notice of the introduction of certain commercial terms, but this notice period will be extended from 90 days to 120 days.

Ofcom is seeking feedback on its draft regulations via a consultation response form on its website, with a closing date of June 12. The agency expects to publish its final decisions in March 2026.

Responses so far have been mixed, with many recognizing that now is perhaps not the time for implementing a major regulatory upheaval.

"Ofcom's proposals hold few surprises; its evolutionary update focuses on maintaining strong competition and investment at a time when the UK fiber market continues to perform strongly," said CCS Insight Director of Consumer and Connectivity, Kester Mann.

Openreach gave the announcement a cautious welcome.

"At first glance, these proposals offer broad continuity, but we'll be engaging closely with Ofcom on the details, to make sure the rules continue to prioritize investment, growth and customer satisfaction throughout the country," said its MD of Regulatory Affairs, Mark Shurmer.

"In our view, Ofcom is right to stay the course halfway through what was always sold as a 10-year pro-investment framework. A commitment to the regulatory enablers and fair bet even beyond 2031 will buoy fibre builders, and crucially their investors," said James Robinson, Senior Analyst at Assembly Research.

However, he added that Openreach's wholesale pricing, especially with regard to discounts, has proven contentious in the past. "AltNets may be disappointed not to see Ofcom propose a price floor, although requiring a longer notice period without prohibiting further Equinox offers seems to strike an appropriate balance between ensuring stronger safeguards without preventing competition on the merits," he stated.

This refers to an Openreach offer that allowed ISPs access to its network at a discounted rate, but only if they signed new subscribers up for fiber broadband rather than a legacy connection. Openreach said it was to encourage fiber take-up, but rival AltNets cried foul and claimed it incentivized ISPs to use Openreach rather than their networks.

One firm in particular that made a fuss was CityFibre, but it seems satisfied with the proposed regulations.

"Ofcom's Telecoms Access Review marks yet another major milestone in creating a sustainable competitive market. Millions of homes and businesses stand to benefit from Gigabit-capable broadband, with greater choice and lower prices, but Ofcom's recognition that there's more to do is critical and we welcome the clear support for further investment and the network competition the UK deserves," CityFibre CEO Greg Mesch said in a statement.

• Altnets told to stop digging and start stuffing fiber through abandoned pipes
• BT fiber rollout passes 17 million homes, altnet challenge grows
• Telcos scolded for unwanted erection of utility poles in race to wire up Britain
• CityFibre loses appeal against Openreach discounts for ISPs

We asked Ofcom about Equinox and a spokesperson told us: "Our proposals do not change anything with regards to Openreach's existing Equinox pricing schemes.

"We assessed these offers when they were launched and concluded that they did not create a barrier to ISPs using altnets. We continue to monitor their impact."

Ofcom also told us that if Openreach were to offer a new conditional pricing scheme, it would need to provide at least 90 days' notice under its current rules – 120 days' notice from April 2026 under our proposals – "so we can assess whether it raises concerns and, if appropriate, intervene before it comes into force."

Openreach's major fiber network rival, Virgin Media O2, seemed rather muted about the review's results.

"Ofcom's telecoms access review is a key component in establishing this landscape and certainty for the future and we will review the consultation in detail and engage fully," a spokesperson told us.

CCS's Mann commented: "The most intriguing part of Ofcom's announcement is a hint from the regulator that after the period covered by the review, it may no longer see the need to regulate the fiber market should effective competition have developed."

"But this will likely be contingent on a range of factors, such as competition, investment, rural coverage, service performance and any mitigating market developments." ®