{"id":26543,"date":"2021-04-06T08:22:19","date_gmt":"2021-04-06T07:22:19","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=26543"},"modified":"2021-04-06T08:22:19","modified_gmt":"2021-04-06T07:22:19","slug":"openreach-restart-big-uk-isp-talks-for-cheaper-fttp-broadband","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/04\/openreach-restart-big-uk-isp-talks-for-cheaper-fttp-broadband.html","title":{"rendered":"Openreach Restart Big UK ISP Talks for Cheaper FTTP Broadband"},"content":{"rendered":"

Openreach<\/a> (BT<\/a>) has reportedly restarted talks with a number of big UK broadband ISPs (e.g. TalkTalk<\/a>, Vodafone<\/a>) over the development of discounted long-term wholesale agreements for their gigabit-capable Fibre-to-the-Premises (FTTP<\/a>) service, which were paused last year after rivals like Virgin Media<\/a> raised competition concerns.<\/p>\n

We’ve known that Openreach<\/a> were planning new discounts to help boost take-up of their FTTP<\/a> product since early 2020 (here<\/a>). Major ISPs, like Sky Broadband<\/a> and TalkTalk<\/a>, also have a vested interest in being able to offer consumers the most affordable FTTP<\/a> broadband packages possible, which is necessary to tackle rising competition from a new generation of affordable alternative network (AltNet) providers (e.g. Cityfibre<\/a>, Hyperoptic<\/a>).<\/p>\n

NOTE:<\/strong> BT<\/a> plan to invest \u00a312bn to help Openreach<\/a> rollout FTTP to 20 million UK premises by the mid to late 2020s (here<\/a>) – 4.5 million have already been done. Virgin Media<\/a> is also talking about adding 8 million more UK homes via FTTP (here<\/a>).<\/div>\n

The operator has done limited discounts before, but the new ones would have potentially been bigger, particularly for those that could drive take-up of the fastest tiers. But some rival operators (e.g. Virgin Media<\/a>) were concerned that doing this might make it harder for alternative networks to compete against the established giant and could even be anti-competitive, given Ofcom<\/a>’s prior rule set (here<\/a>).<\/p>\n

Toward the end of last year Openreach, as signalled via TalkTalk<\/a> (here<\/a>), appeared to shelve this plan pending the outcome of Ofcom<\/a>’s latest market review. At the time a spokesperson for Openreach told ISPreview.co.uk they had a “legal obligation to treat all of our customers equally and we take that obligation very seriously. That means our full fibre products will always be available to every ISP in the UK under the same prices terms and conditions<\/em>.”<\/p>\n

Since then Ofcom<\/a> has finally published their latest Wholesale Fixed Telecoms Market Review 2021-26<\/strong> (here<\/a>), which extended an existing prohibited on offering certain “geographic discounts<\/em>” to include full fibre services. But this doesn’t completely prevent all discounts (they have more freedom in competitive areas – Area 1), and it also gave Openreach some certainty about the different approaches they could potentially take.<\/p>\n

The Telegraph<\/a> (paywall) are now reporting that Openreach has restarted talks over the possible introduction of long-term wholesale discounts for FTTP with a number of ISPs, including TalkTalk and Vodafone<\/a> etc. The CEO of TalkTalk, Tristia Harrison<\/strong>, said she was pleased to be “working constructively<\/em>” with the operator on a “sensible pricing structure<\/em>” again. Such a deal, if agreed, could also help to placate some of TalkTalk’s concerns about recent price increases on older copper based services (here<\/a>).<\/p>\n

Ofcom will no doubt seek to cast its eye over any future proposals and we hope that, if Openreach do introduce something, it will not to leave smaller ISPs on their platform at too much of a competitive disadvantage. Meanwhile, consumers in competitive areas (mostly dense cities and towns) will no doubt welcome the prospect of cheaper FTTP packages from providers.<\/p>\n

At the same time, we must not forget that Openreach also have to balance all of this against the need to make a viable return on their investment. Finding the right balance between take-up and affordable pricing can be a difficult thing to get right. Pricing too cheaply can push the payback window on their investment even further into the future.<\/p>\n","protected":false},"excerpt":{"rendered":"

Openreach (BT) has reportedly restarted talks with a number of big UK broadband ISPs (e.g. TalkTalk, Vodafone) over the development of discounted long-term wholesale agreements for their gigabit-capable Fibre-to-the-Premises (FTTP) service, which were paused last year after rivals like Virgin Media raised competition concerns.<\/p>\n","protected":false},"author":1,"featured_media":26544,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[56,36,69,74,96],"class_list":["post-26543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttp","tag-ofcom-regulation","tag-bt-openreach","tag-talktalk","tag-vodafone"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach Restart Big UK ISP Talks for Cheaper FTTP Broadband - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Openreach (BT) has reportedly restarted talks with a number of big UK broadband ISPs (e.g. TalkTalk, Vodafone) over the development of discounted\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/04\/openreach-restart-big-uk-isp-talks-for-cheaper-fttp-broadband.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach Restart Big UK ISP Talks for Cheaper FTTP Broadband - 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