Competition Concerns Raised Over New Openreach FTTP Broadband Discount
A number of Openreach’s rivals are understood to have raised fresh competition concerns with Ofcom after the operator introduced a new discount on upgrades (here). The offer was designed to help encourage ISPs to shift customers off older copper-based broadband services and on to newer full fibre (FTTP) lines, but not everyone is happy.
The issue concerns proactive migrations, which arise where an internet provider (ISP) proposes to upgrade your older broadband service (ADSL, FTTC etc.) to FTTP and, at the same time, books an appointment for an engineer to carry out the upgrade. The end user can then confirm, reject or select a different appointment. This forms part of Openreach’s efforts to eventually retire their old copper-line based network, services and exchanges.
Last month Openreach introduced a new offer for ISPs using this process, which essentially enabled customers to potentially be upgraded to their faster “1000/115Mbps [download/upload], 550/75Mbps and 330/50Mb bandwidth tiers for the rental price of 80/20Mbps” – lasting for up to 24 months (details). Suffice to say that this was quite a significant discount and would make upgrading much more attractive to some consumers.
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However, a number of alternative networks (altnets) have told ISPreview that they view the new promotion, which is due to become available between 10th October 2025 and 9th April 2026, as being potentially anti-competitive. The Independent Networks Co-operative Association (INCA), which represents many of the UK’s altnets, is similarly understood to have raised its concerns with Ofcom, although they’ve elected not to comment until the regulator responds.
A CityFibre spokesperson told ISPreview:
“We are aware of the recent Openreach FTTP offer on proactive upgrades. Given Ofcom’s clearly stated strategy in its TAR consultation to promote long-term, effective and sustainable competition, we would expect Ofcom to examine this offer carefully to identify whether it is consistent with that policy objective.”
A spokesperson for Ofcom said:
“Our overriding objective is to bring better broadband to people across the UK, by promoting competitive investment in high-speed networks and making sure there’s a level playing field for all companies. Attracting customers from legacy networks to full fibre is key to the success of all providers.
We impose certain restrictions on deals that could stifle investment and the development of sustainable competition. Subject to these restrictions, Openreach is allowed to compete with altnets and is allowed to make pricing offers, to make its full-fibre services attractive to its customers.”
Ofcom added that they do not pre-approve Openreach’s pricing or offers before they are notified to industry, although they do encourage any stakeholders who consider this promotion to be anticompetitive to “raise their concerns with us“. We should add that Openreach only gave the industry 28 days’ notice of this offer (not 90 days) because it is not conditional.
A spokesperson for Openreach added:
“Competition works when it delivers better outcomes for customers – and that’s exactly what we’re focused on.
As we lead the UK’s transition to Full Fibre, this offer is all about listening to our customers and helping them make that leap from older copper-based services to faster, more reliable broadband.
Of course, Ofcom keeps a close eye on everything we do, and rightly so – but we’re allowed to compete, and we’ll continue to do so, in the interest of customers and the country.
We strongly reject any suggestion that it’s anti-competitive.”
Some altnets originally enjoyed a market where Openreach’s Fibre-to-the-Premises (FTTP) services were slower and much more expensive than their own, while also being less dominant in network coverage. But in recent years their wholesale pricing has fallen and speeds are improving (here). On top of that, they now cover 20 million premises with FTTP, which is due to reach 25m by December 2026 and then “up to” 30m by 2030 – placing them into a commanding position for coverage.
At the same time altnets have begun to struggle a lot more over the past 2-3 years, not least due to the rising cost of network build, high interest rates and strong competition (i.e. many have slowed or paused their deployments and cut jobs ahead of possible consolidation). Suffice to say that altnets carry a lot more risk today and are thus much more sensitive to any big price promotions that the incumbent may introduce, even ones like this that are quite targeted toward a specific but large group of users.
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On the flip side, Openreach is heavily regulated and have been bleeding broadband lines to rivals, albeit mostly from locations where they’ve yet to build FTTP. But the incumbent often feels as if it shouldn’t be restricted from being able to compete with smaller rivals, especially in competitive areas, and often indicates that doing so may also be unfair to consumers who might otherwise benefit from lower pricing.
The regulator has the difficult task of trying to balance such concerns, while at the same time needing to recognise the importance of not obstructing the move away from legacy copper-line based services.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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At the moment Plusnet are selling 74/20 for £23.99, so IF they passed the full Openreach reduction on, would be good time to have a significant speed increase for 24 Months, and make the move away from copper. Off course it has to be remembered, £23.99 becomes £27.99 come April 2026.
I am currently on Aquiss family SoGEA 80/20 and if FTTP become available before April 2026 does this mean I can have new Openreach FTTP 1000/115 for £35 a month with Aquiss?
It’s not impossible that they could offer *some* sort of discount if you take a higher speed tier, perhaps combined with recontracting, but I very much doubt they would discount the retail price right down to 80/20 – remember that Aquiss have their own costs on top of the FTTP tail, such as IP transit.
Also remember that the discount is for proactive upgrades only. Aquiss *could* contact you and propose a proactive upgrade to FTTP, but they would incur their own costs in doing so; they would probably use the discount to absorb some of those costs.
It seems to be a sensible marketing move to try to spreed up the migration to Fibre and digital
Doesn’t “long term, effective and sustainable competition” include Openreach’s ability to respond to market pressures?
In my opinion it doesn’t include price caps and onerous regulations that none of Openreach’s competitors have to adhere to, while paying Openreach a pittance to use its prime physical assets to ultimately under cut it. Not good for the vast majority of the country who may never even see an altnet, not good for shareholders, not good for UK Plc.
Of course INCA and CityFibre are moaning (though with slightly less bile now that Mesch’s out). When don’t they whinge about anything?
I agree, the altnets will always bleat about unfair competition but as long as OR don’t tip into something genuinely anticompetitive like selling lines at a loss to undermine them then they should be allowed to compete.
I don’t think the AltNet’s cries are completely unwarranted here – Openreach is effectively using their domenent position in the copper market to improve their position in the full fibre market. I think a reasonable counterbalance would be for Ofcom to mandate that any proactive upgrade cannot extend a consumer’s minimum commitment to their ISP, although we all know how toothless Ofcom generally is…
One of us (and it might be me, though I’m not convinced it is at this time in the morning) has misread the offer. It is not that Openreach is locking ISPs in for 24 months, it is that the ISP gets 24 months of a discounted rate for any end user migrated in this way.
ISPs can choose whether or not to take the offer and how they pass that on to the end user is none of Openreach’s business (ie, whether or not that needs a new contract). For example, Sky, Vodafone or Zen may try to get the end user onto an altnet instead. We can’t just claim it’s abuse of a dominant position every time Openreach does something!
It’s not for Ofcom to interfere and it seems that they are not doing so in this case, which is fantastic stuff, though there’s still more to do on allowing the UK’s largest fibre network operator to flourish. Altnets need to learn the definition of competition.
This promotion hasn’t started yet so this is very much crystal ball gazing, but I strongly suspect that ISPs will use the opportunity to lock their customers into a new 24 month commitment.
I noticed Plusnet had discounted their faster packages this weekend 500 now £28 and 900 now £32.
My understanding is this refers to proactive migrations (existing ISP customers). That is an existing customer to the ISP who is on ADSL/FTTC moving from copper to FTTP. They may be under contract or not but its in the interests of the ISP to improve the service to their customer and hence retain them.
If the ISP has the option to utilise an Altnet they will consider that and as Zen has stated that Altnet wholesale is significantly cheaper than OR I am sure they will.
The benefit here to OR is ensuring that resource is available to convert and a bow wave on conversions is not built up delaying their plans.
As already highlighted there are a large number of consumers who will not see an Altnet in the foreseeable.
The copper network quality is continuing to decline and moving the customer to the superior FTTP is the right thing to do for OR, the ISP and the consumer.
Ofcom do not only have a expectation of competition in wholesale they also have a responsibility to the wider competition and viability of the ISPs currently using the OR network.
Overall this is in the interests of the majority of consumers and they will have the option whether to convert and also consider alternatives. If lower costs allow the ISP to pass some of that on or simply maintain pricing to their customer then that is even better.
> As already highlighted there are a large number of consumers who will not see an Altnet in the foreseeable.
Exactly. Or ever.
Cityfibre are at what, under 14% of UK premises? Netomnia and others are significantly lower (6% or thereabouts). For all their faults, Openreach are and will continue to be the only option for the vast majority of the population.
I see no effect on the small Altnets. Hey! Broadband (on F&W) are doing well around here.
CityFibre are probably upset as they not only need to attract customers to their network but to get the ROI they need more people to be on their higher products.
This proactive migration (better planning and resourcing) provides Openreach the ability to complete more multiple installs in a particular vicinity. In return they charge the ISP the base 80/20Mbps rental for a period and swallow the fact that the speed settings will be higher for this period. Many ISPs are now not offering less than 100 or 150Mbps so it allows them to ensure they can offer FTTP (often at the same price or less) and keep to their defined product offerings. Naturally OR hope that the customer will retain the product after the period is over.
It could be that CityFibre think this may tip the balance for someone like Sky to continue to use OR rather than switch Cityfibre. I doubt that. Sky will have already determined geographical patches for each wholesaler and the Altnet should be cheaper because they don’t have the historic overheads.
The ISP still has to pay for the install and provide the bandwidth regardless of wholesaler.
The majority of consumers will only require the base products and I can see going forward a possibility that OR will move to less charging tiers.
Vast majority?
Over half the country is in reach of a Virgin service. Altnets reach over a third.
The ‘vast majority’ of the country are already in reach of a non-Openreach broadband service.
I sure hope Brsk aren’t one of those whingers. They are currently expecting existing customers to pay 61% more per month than new ones!. Slimy toads.
I can understand AltNets being concerned at the potential loss of customers due to the offered upgrade prior to the end of Openreach user’s existing contracts, thus undermining the attraction of the AltNets’ own full-fibre alternative offers.
However, Openreach also has a right to compete in the market and to act in the interests of existing customers. Ofcom intervening in this case would therefore, in my opinion, be out of order and unbalanced.
Further, this is not exactly new. I was offered an automatic upgrade to full-fibre when I renewed my contract (which included a migration to EE) once Openreach gets around to offering the service to these premises. That offer was made in August 2024.
We already know Ofcom will be happy with just retail competition which Openreach offers, the Alt net hand holding was in reality to kick Openreach into gear which it has done, for this reason I expect Ofcom to be loosening the reigns somewhat over time, and alt nets will be consolidated.
Sounds logical, but there’s literally no sign of that in Ofcom’s latest set of proposals.
I’m a current Plusnet FTTC customer, I attempted to upgrade to FTTP earlier this year & after multiple issues all caused by Openreach I cancelled the upgrade.
It’s pointless scheduling an appointment with Openreach as they just ignore it & turn up when they like OR don’t bother to turn up at all, also telling the ISP that all outside works complete when they hadn’t done anything & when questioned come back with ” requires a second site survey carrying out, need to make an appointment ”
I luckily live in an area that’s already got City fibre & can’t wait till my current contract ends so I can move away from Openreach.
Hmm, unlucky perhaps. Openreach installed our FTTP upgrade last month, and everything was faultless and exactly as promised. They even offered an earlier slot, which I accepted and received. All live and seamless, with good and accurate communication. So they are capable of it!
That is not true.
Openreach Engineers are very good at turning up to an appointment.
That is why the proactive migration is far better. It allows more scheduling, mutual support between installers and an increased likelihood that civils are on call.
When orders are reactive they come out only to find a duct is blocked, they need a hoist, cable not long enough etc. It would be even more efficient if OR could do it by post code but they can’t talk to customers directly only after instruction from an ISP.
“We want to compete. We believe competition willreduce prices and improve customer offers”
“OK market is open, let’s see how this goes”
“We can offer cheap Broadband, as we have investors with loads of money, come but from us!”
“This competition thing is working customers are getting choice and lower prices, Great”
Competition works, goal achieved! Until one day one of the competitors wants to offer lower prices.
“But it’s not fair, we don’t like competition when the big boys are running too. Can’t you tie their laces together?”
The Altnets crying wolf again, who would have thought it? — the majority will not be in buisness in their present form in the coming years.