{"id":34435,"date":"2023-05-11T12:13:09","date_gmt":"2023-05-11T11:13:09","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34435"},"modified":"2023-05-11T12:16:34","modified_gmt":"2023-05-11T11:16:34","slug":"vodafone-uk-ceo-pushes-ofcom-to-clear-openreach-fttp-prices-cuts","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/05\/vodafone-uk-ceo-pushes-ofcom-to-clear-openreach-fttp-prices-cuts.html","title":{"rendered":"Vodafone UK CEO Pushes Ofcom to Clear Openreach FTTP Prices Cuts"},"content":{"rendered":"

The CEO of mobile and broadband ISP Vodafone<\/a> UK, Ahmed Essam, has joined other retail internet providers in publicly calling on Ofcom<\/a> to approve Openreach<\/a>\u2019s proposed “Equinox 2<\/em>” discount scheme for their Fibre-to-the-Premises (FTTP<\/a>) based products, which is being challenged by alternative networks (AltNets).<\/p>\n

At the end of 2022 Openreach<\/a> confirmed that it planned to introduce another round of wholesale discounts on their full fibre products from 1st April 2023 (here<\/a>), which would help ISPs on the same network to stay competitive with newer and often cheaper AltNets (Summary of UK Full Fibre Builds<\/strong><\/a>). Lower prices could also boost take-up by consumers and thus aid the move away from copper lines.<\/p>\n

However, more than a few rival networks viewed the move as being anti-competitive (here<\/a>), with CityFibre<\/a> even lodging a Competition Act complaint with the Competition and Markets Authority<\/strong> (CMA) and Ofcom<\/a> (here<\/a>). The regulator then provisionally ruled in February 2023 that Equinox 2 was “not anti-competitive<\/em>” (here<\/a>), but in March they opted to impose a two-month delay on its implementation after identifying “issues which require further assessment<\/em>“.<\/p>\n

Openreach<\/a>’s proposal is widely desired by ISPs on their network and some, such as Zen Internet<\/a> (they use both CityFibre<\/a> and Openreach’s services), have already argued in favour of the discount scheme being allowed to proceed (here<\/a>). Now the boss of Vodafone<\/a> UK, which is a provider that also harnesses full fibre services from both Openreach and CityFibre<\/a>, has similarly lent his support to the incumbent.<\/p>\n

Ahmed Essam, CEO of Vodafone<\/a> UK, said:<\/strong><\/p>\n

“We think their proposed offer poses no threat to efficient alternative fibre providers and, importantly, doesn\u2019t discourage retailers like Vodafone from using other wholesalers. Indeed, we hope to widen our use of alternative fibre providers in the near future. We strongly believe that a competitive wholesale market is essential to ensure UK consumers benefit from good value, choice and innovation.<\/p>\n

So we hope Ofcom<\/a> will recognise the value of Openreach\u2019s Equinox II offer to consumers and its important role in encouraging wider fibre adoption.”<\/p><\/blockquote>\n

The confirmation that Vodafone are also planning to add other AltNets to their platform in the “near future<\/em>” is arguably a much bigger development here, although it won’t really be major news until they start putting some meat on the bone by announcing solid agreements. An ISP of their size would be more likely to invest time and effort to onboard larger AltNets with an attractive wholesale solution, such as perhaps Netomnia<\/a> and CommunityFibre<\/a>.<\/p>\n

However, Essam also stressed that he would like to see wholesalers introduce broadband social tariffs<\/strong><\/a> to help support ISPs that offer similar products to vulnerable customers, which may be a bone of contention for Openreach and others that have ruled out such a product (example<\/a>). But to be fair, Openreach do already offer some solutions that complement social tariffs, such as a regulated FTTC<\/a> tier and connection discounts for those on state benefits.<\/p>\n

Ahmed Essam added:<\/strong><\/p>\n

“As a purpose-led business, we also want to offer broadband packages that are affordable for our most vulnerable customers. This is why we launched our social broadband tariff in October 2022 \u2013 the cheapest on the market at the time. At just \u00a312 a month it represents fantastic value for money.<\/p>\n

Unfortunately, it is unsustainable at that price. Even though our costs having been rising sharply due to rampant inflation \u2013 our energy bills in particular have spiralled \u2013 we\u2019ve kept our social tariff at \u00a312 a month. But the wholesale element of that social broadband bill accounts for more than the entire retail price!<\/p>\n

So if we\u2019re going to continue offering affordable \u2013 financially viable \u2013 social tariffs to digitally excluded people \u2013 as we, Government and Ofcom want \u2013 we need Openreach, CityFibre and others to offer an equivalent wholesale social tariff at a substantially reduced rate. We\u2019re hoping Ofcom will support us in this ask.”<\/p><\/blockquote>\n

Naturally, everybody is currently playing to their own vested interests. Retails ISPs will always welcome cheaper wholesale prices, while AltNets will welcome measures that help to protect their investment against much larger and more well-established incumbents, such as Openreach. Similarly, consumers will welcome anything that makes their broadband cheaper, or which at least inhibits them from getting dramatically more expensive.<\/p>\n

In the middle of all this, Ofcom has the difficult task of trying to find some balance between the often-bitter industry divisions, although so far, they’ve shown little desire to push for social tariffs at the wholesale level. As for their stance on Equinox 2, we suspect that they may still approve the proposal, albeit possibly with some caveats that may or may not cause problems if Openreach try to push an Equinox 3 or 4 further down the road.<\/p>\n

Either way, we expect to learn the outcome soon, unless the regulator delays their decision again.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CEO of mobile and broadband ISP Vodafone UK, Ahmed Essam, has joined other retail internet providers in publicly calling on Ofcom to approve Openreach\u2019s proposed “Equinox 2” discount scheme for their Fibre-to-the-Premises (FTTP) based products, which is being challenged by alternative networks (AltNets).<\/p>\n","protected":false},"author":1,"featured_media":27085,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[418,56,36,69,96],"class_list":["post-34435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-cityfibre","tag-fttp","tag-ofcom-regulation","tag-bt-openreach","tag-vodafone"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nVodafone UK CEO Pushes Ofcom to Clear Openreach FTTP Prices Cuts - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The CEO of mobile and broadband ISP Vodafone UK, Ahmed Essam, has joined other retail internet providers in publicly calling on Ofcom to approve\" \/>\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\/2023\/05\/vodafone-uk-ceo-pushes-ofcom-to-clear-openreach-fttp-prices-cuts.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vodafone UK CEO Pushes Ofcom to Clear Openreach FTTP Prices Cuts - 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