Ofcom refuses to bite over Openreach's fiber freebies
- Reference: 1760436625
- News link: https://www.theregister.co.uk/2025/10/14/ofcom_openreach_fttp_deal/
- Source link:
The UK's communications watchdog said it does not have "prima facie" concerns that would warrant investigating the offer from Openreach, the infrastructure arm of former state-owned telco BT.
At the hear of the issue is a recently launched promotion for so-called proactive migrations - upgrades initiated by ISPs to move customers to better connections, typically from copper wire to fiber-to-the-premises (FTTP).
[1]
The nationwide offer covers the rental price of FTTP service post-upgrade, making the 1,000/115 Mbps, 550/75 Mbps, and 330/50 Mbps bandwidth tiers available at no more than the rental price of the current 80/20 Mbps product for 24 months from activation. This represents a considerable discount for ISPs.
[2]
[3]
However, the window for claiming this offer runs only from October 10, 2025, to April 9, 2026, and applies solely to successful FTTP installations.
Complaints from smaller network providers were two-pronged: firstly, they argued the pricing falls below the cost of "a reasonably efficient operator," effectively making it a loss leader. Second, they claimed the limited timeframe would drive an "accelerated mass migration" by ISPs from copper to FTTP, shutting out Openreach's smaller rivals in areas where they may not yet have been able to build up their network footprint.
[4]
Ofcom sees no reason to take action at this time. The regulator believes it is important to monitor the impact on Openreach's average FTTP price levels and ISP behavior over the coming months, though critics note the offer will likely have ended before any intervention could occur.
"We recognize that the lower prices available under this offer may increase commercial pressure on altnets [alternative network operators] insofar as it sharpens competition between networks. However, this alone is not a reason for intervention, nor does it automatically mean those prices raise competition concerns," Ofcom said in an [5]open letter to the industry.
On pricing, the regulator compared the offer against Openreach's average FTTP price and estimates of a reasonably efficient operator's costs, concluding the price sits above the top end of those estimates. Regarding concerns about accelerated migration, Ofcom said it is still considering stakeholder responses.
[6]
Some industry observers believe Openreach faces mounting pressure from competitors like CityFibre, which recently reported its customer connections rate is close to doubling each quarter.
[7]Need for speed? CityFibre punts 5.5 Gbps symmetrical broadband at ISPs
[8]UK's smaller broadband operators face tough road ahead, consolidation possible
[9]Altnets told to stop digging and start stuffing fiber through abandoned pipes
[10]Openreach tests 50 Gbps broadband – don't expect it anytime soon
This isn't the first time Ofcom has sided with the incumbent. Openreach's controverial [11]Equinox schemes offered ISPs discounts for migrating customers from copper to fiber, but only if a certain proportion of new sign-ups went to Openreach itself.
Altnets, in particular CityFibre, claimed this amounted to unfair competition, as they couldn't afford to match the discounts Openreach waved under the nose of ISPs. However, it [12]lost its appeal against Ofcom's decision to allow Openreach to go ahead, and the regulator also declined to block Equinox 2.
However, CityFibre seems somewhat sanguine about the latest matter, telling The Register :
"Given Ofcom's clearly stated strategy in its TAR (telecoms access review) consultation to promote long-term, effective and sustainable competition, it's right that Ofcom is monitoring this offer closely to examine whether it is consistent with that policy objective."
Openreach declined to comment on the Ofcom report. However, Openreach said it has identified a further 94 exchange locations across the UK where it will discontinue the sale of copper-based phone and broadband services to encourage fiber upgrades.
The "Stop Sell" policy triggers when 75 percent of premises using a particular exchange can access fiber. To date, 1,041 exchanges covering 8.9 million properties have reached this threshold. ®
Get our [13]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aO5zlen9xi7tYQe4a8oNPQAAAQE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aO5zlen9xi7tYQe4a8oNPQAAAQE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aO5zlen9xi7tYQe4a8oNPQAAAQE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aO5zlen9xi7tYQe4a8oNPQAAAQE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://www.ofcom.org.uk/siteassets/resources/documents/phones-telecoms-and-internet/information-for-industry/fairness-for-customers/open-letter-to-industry-openreach.pdf?v=405640
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aO5zlen9xi7tYQe4a8oNPQAAAQE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2025/06/04/cityfibre_55_gbps/
[8] https://www.theregister.com/2025/05/02/uk_small_broadband_operators/
[9] https://www.theregister.com/2025/03/03/altnet_abandoned_pipes/
[10] https://www.theregister.com/2025/02/06/openreach_tests_out_50gbps_broadband/
[11] https://www.theregister.com/2023/05/24/uk_regulator_openreach_discount/
[12] https://www.theregister.com/2022/07/22/cityfibre_openreach_appeal/
[13] https://whitepapers.theregister.com/
" ...upgerde ..."
I thought that looked like Dutch, but it's actually Afrikaans.
The origin of 'timframe' is probably more obvious.
Bite?
Is that bite as in "take the bait" or bite as in "punish Openreach"?
Pedants everywhere need to know ;)
hmmm
That stop sale policy is problematic.
So if a consumer for whatever reason wishes to obtain fixed line broadband service 25% of the premises will have a conversation along the lines of:
"We can't provide dsl as we have a fibre only policy in your area"
"Oh okay then, can I order a fibre broadband option then please?"
Err, no. We can't provide you with fibre broadband"
Something something joined up thinking..
My FTTP experience
I don't understand how one provider can only offer an asymetric connection, but another offer a symetric connection?
I used to be on 500down/150up, then my provider was bought out and my connection went to 500/500 (for the same cost) without any notice.
I'm not complaining at all, but did this change require new equipment down the line or would it have been ready but not 'turned on'?
Re: My FTTP experience
Depends entirely on the line and equipment. On DSL I get 55M down and 10M up (before overhead) - as per my contract. My router reports the max availanble rates are 84 down and 30M up.
Re: My FTTP experience
“ Depends entirely on the line and equipment.”
A few years back I know Glide operated different terminations for their asymmetric and symmetrical services. To switch required both a change of SFP modules and customer premises router (Zyxel to Juniper), once on the Juniper router we then had a lot of flexibility - within limits on the line configuration. Hence would not be surprised if your line change was just a software setting change. Although given the savings to be had by the ISP in bulk buying, I’m a little surprised your original routers asymmetric fibre interface module, could handle the change to support a faster symmetric service.
I suppose this bundling flexibility is one of the reasons why the operators don’t really like customers directly connecting their own equipment to the fibre.
Discounted for first 2 years
These kinds of offers really annoy me. Discounted for N months. So what am I supposed to do after N months? Go to someone else? Or pay your over-inflated price going forwards (over-inflated probably to subsidise the next poor sod to sign-up for your N months discount)? Is not like after N months, I’m going to think “oh that’s ok. I doubt need it any more”
Can’t you just give me a bloody price and stick to it? You know, like BT (and before that, the post office) used to do many years ago
I wish ofcom would put something in place to make this happen. It would make it all much more transparent, improve competition, and be overall cheaper for the consumer
Re: Discounted for first 2 years
Wholeheartedly agree. Every provider seems to be doing this. Just cancelled my Vodafone-on-cityfibre 900 megabit service because of their pricing games, went from approx £30 to £40 at end of contract (and even that is allegedly a special deal, the undiscounted price is £60-somthing). And no doubt my new provider will pull the same trick in 18 months.
And their stupid in-contract price rises of £3 per year - so 10 percent! Just give me the same price that new customers get, raise it by inflation every year, and I'll be your customer forever!
Ofcom should ban time-limited discounts, the whole point of which is to rinse customers too busy to notice the price increase.
Re: Discounted for first 2 years
I pay a lot for internet (I'm with Orange France), but the price is the price and it's been the price for years. Why does it change? Why does it go up? Do your bytes flow faster when you pay more?
Actually, I think the more likely case is that everybody paying the "inflation increase" without noticing helps to offset the headline price they offer for only X months.
Re: Discounted for first 2 years
As long as you’ve had the foresight not to make heavy use of an email address associated with your broadband supplier you absolutely can say “no thanks” and migrate elsewhere (and I know a number of people who’ve successfully done so without significant interruption). The worst thing that can happen is that you end up with multiple grey boxes tacked to the outside of your house….
I remember ending up paying about £42 for my 80/20 from BT. Even if they'd offered a free upgrade to FTTP and the same monthly cost, it would still have been quite a bit more expensive than my £25/month from Swish fibre for 500/500Mb, and now £26/month for Gigaclear 500/500Mb.
£26/month for Gigaclear 500/500Mb How?
£43/month for Gigaclear 300/300Mb is the best I could get last time I tried earlier this year (after ringing up and getting a discount) - but then they are the only pony in town as BT refused (even with BDUK money and me personally meeting the regional manager, to upgrade our village).
The infrastructure costs the same to run once it is installed (and our build cost was paid off over 9 years ago - I know because I was heavily involved in it), so why is it cheaper in some places than others?
OFCOM ought to be looking at this as well as stopping the introductory offers for switching (which of course most Gigaclear customers cannot do as there is no competition.)
BT is still at it!
Having worked in Telecoms competing against BT as the incumbent for much of my working life, this does not surprise me at all, but shows again that Ofcom has BT in its various guises running rings round it.
The regulatory Laissez Faire attitude is problematic for one major reason: You cannot reverse time.
So, if you wait and see whether some anticompetitive practice is damaging - the damage will be done. And this is death by a thousand cuts - I have lost count how many times something was argued not to be damaging at all - only for reality to catch up and prove the opposite.
We need a stronger regulator with a bit of foresight who will be able to identify these kinds of issues and then set/enforce equitable principles and rules for the benefit of the wider market.
Probably because it's a double-edged sword; customers might get a cheap upgerde but they'll have to deal with Openreach which could add them to the "never again, I don't care what the alternative costs" bucket.
Interesting that the offer "applies solely to successful FTTP installations". Maybe Openreach has started to become self aware