{"id":40564,"date":"2025-01-14T10:47:54","date_gmt":"2025-01-14T10:47:54","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=40564"},"modified":"2025-01-14T11:08:02","modified_gmt":"2025-01-14T11:08:02","slug":"nexfibre-sets-out-demands-for-ofcoms-uk-telecoms-access-review","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2025\/01\/nexfibre-sets-out-demands-for-ofcoms-uk-telecoms-access-review.html","title":{"rendered":"Nexfibre Sets Out Demands for Ofcom’s UK Telecoms Access Review"},"content":{"rendered":"

Network operator nexfibre<\/a>, which is working alongside UK ISP partner Virgin Media<\/a> to deploy a new 10Gbps full fibre broadband (FTTP<\/a>) network across over 5 million premises (2m have already been built), has today set out its list of recommendations for Ofcom<\/a> to consider adopting as part of their forthcoming Telecoms Access Review 2026<\/a> (TAR).<\/p>\n

Just to recap. Back in 2022 Telef\u00f3nica, Liberty Global and InfraVia Capital Partners setup nexfibre<\/a> as a new \u00a34.5bn joint venture (here<\/a>), which aims to deploy an open access (wholesale) full fibre network to reach \u201cup to<\/em>\u201d 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media<\/a>\u2019s own network of 16m+ premises. The funding reflects \u00a33.3bn of fully underwritten financing and up to \u00a31.4bn in equity commitments.<\/p>\n

NOTE:<\/strong> Virgin Media is currently the only ISP on nexfibre<\/a>\u2019s network via an \u201cexclusive partnership\u201d<\/em> (here<\/a>), but more ISPs will be added in the future (here<\/a>) and Virgin\u2019s own network will also open up to wholesale via NetCo<\/strong> in H1 2025 (here<\/a>).<\/div>\n

Suffice to say that they have a big interest in the regulator\u2019s imminent Telecoms Access Review 2026<\/strong> (TAR) – a wide-ranging market study, which is typically only conducted every 5-years and will usually look to make changes that \u201cpromote competition and investment<\/em>\u201d in gigabit broadband and business connectivity. But such things are always easier said than done, with vested interests frequently clashing. Nexfibre’s proximity to Virgin Media also means that the pair will largely share the same views.<\/p>\n

So far, we’ve already seen various alternative network (altnet) providers (here<\/a>) and even Openreach<\/a> (here<\/a>) setting out what changes they think Ofcom<\/a>’s TAR should make. But today it was nexfibre’s turn, with the operator setting out a series of recommendations under their new ‘UK Fibre: A Fork In the Road<\/strong><\/a>‘ (PDF) report, which they see as being necessary to help “maintain a regulatory environment that best supports investment in fixed telecoms networks and sustainable infrastructure competition in the UK<\/em>“.<\/p>\n

“The full fibre market is highly fragmented, characterised by a large number of sub-scale operators with low customer and revenue numbers, which combined with financing pressures has seen network roll out slow dramatically this year<\/em>,” said the report, before setting out its list of the “regulatory conditions<\/em>” needed for the “full fibre market to flourish and for infrastructure roll out to continue at pace<\/em>“.<\/p>\n

Nexfibre Calls on Ofcom to Address the Following Issues:<\/strong><\/span><\/p>\n

1. Maintain regulation on the dominant operator:<\/strong> the dominant operator\u2019s significant market power requires continued regulation to support the development of sustainable, long-term competition.<\/p>\n

2. Address anti-competitive behaviour:<\/strong> Introduce a new margin squeeze test (Economic Replicability Test) to prevent harmful pricing schemes and ensure fair competition.<\/p>\n

3. Improve PIA regulation:<\/strong> Address transparency and cost-sharing issues in the regulation of BT<\/a> Openreach<\/a>\u2019s PIA infrastructure charges to support investment.<\/p>\n

4. Assess copper switch-off impact:<\/strong> Ensure appropriate regulation for BT<\/a> Openreach\u2019s copper to fibre network migration to promote competition.<\/p>\n

5. Take a pragmatic view of network numbers and consolidation:<\/strong> Focus on supporting long term sustainable competition at a national scale through consolidation.<\/p><\/blockquote>\n

Many of nexfibre’s points above align with those of other altnets, particularly around fears related to the possibility of future FTTP<\/a> price cuts from Openreach (i.e. making it even harder for rivals to grow and attract fresh investment) and of Ofcom potentially softening the incumbent’s regulation (rising competition has naturally weakened Openreach’s impact over the wider market). The latter also feeds into nexfibre’s call for improvements in PIA regulation, which relates to the product that allows rivals to run fibre via Openreach’s existing cable ducts and poles.<\/p>\n

On the copper switch off, nexfibre are not referencing the ongoing PSTN\/WLR to digital phone migrations, but rather Openreach’s future move to close thousands of old telephone exchanges (mostly occurring after 2030) and migrating related customers from copper to full fibre lines (something that is already occurring, albeit more organically). Nexfibre wants to ensure that rivals aren’t unfairly penalised by this process and that Ofcom conducts a deeper assessment of the approach being taken.<\/p>\n

However, despite echoing many of the same points of view as other altnets, nexfibre remains quick to highlight how “a large number of sub scale altnets … are now in a moment of real difficulty<\/em>” (i.e. due to issues with rising build costs, high interest rates and thus difficulties being able to access fresh investment).<\/p>\n

Certainly, we have seen plenty of altnets suffering build pauses, slowdowns and job losses, although there’s no guarantee that some of this won’t impact nexfibre further down the line too. The wholesale model they’ve adopted currently only works with Virgin Media (anchor tenant), which over the past year has had its own difficulties with adding new broadband customers, and it remains to be seen how effective they will be when more ISPs are added.<\/p>\n

Giles Rowbotham, General Counsel and Chief Development Officer of nexfibre, said:<\/strong><\/p>\n

\u201cThe UK has made terrific progress in expanding full fibre broadband in recent years, thanks in part to the conditions created by the last Ofcom review, including PIA sharing. However, this progress is fragile. The current market structure is unsustainable and the Ofcom review comes at a pivotal moment for this country\u2019s digital infrastructure market. Roll out progress in recent years has been driven partly by the emergence of a large number of sub scale altnets, many of whom are now in a moment of real difficulty, with restricted access to new capital and higher financing costs.<\/p>\n

To overcome these issues, we are urging Ofcom to prioritise measures that boost sustainable scaled competition on the one hand and do more to restrain anti-competitive activity from the dominant operator on the other. To ensure innovation and investment in digital infrastructure and drive fibre rollout progress, the UK needs a regulatory environment that balances the need for stable regulation with a pragmatic view of market consolidation and also takes a firm hand in restricting behaviour that stymies meaningful nationwide competition. This is essential not only for the growth of our digital economy and the future of the broadband market, but also to the government\u2019s central mission of delivering higher economic growth, which will create opportunities for communities, people and businesses across the UK.<\/p>\n

We look forward to continuing to collaborate with regulators and policymakers ahead of the upcoming Telecoms Access Review to ensure a digital infrastructure market that is competitive, resilient and delivers the economic growth the country needs.\u201d<\/p><\/blockquote>\n

On the flip side of all this, Openreach has been busy calling on Ofcom and the Government to push Virgin Media (O2<\/a>) and others into opening up access to their cable ducts to help reduce the number of broadband poles being built (here<\/a>). Otherwise, the incumbent views the regulator’s current rules as “working better than expected for the UK<\/em>” and they naturally want to see that maintained, albeit with softer regulation in areas of strong competition.<\/p>\n

As usual, Ofcom will have the incredibly difficult task of trying to balance the many competing (vested) interests between different operators, and inevitably this will always result in some winners and losers. However, given the market\u2019s current fragility and it being in the middle period of full fibre deployment, we suspect the regulator may also want to avoid any truly dramatic changes this time around (those may be more likely at the next review).<\/p>\n","protected":false},"excerpt":{"rendered":"

Network operator nexfibre, which is working alongside UK ISP partner Virgin Media to deploy a new 10Gbps full fibre broadband (FTTP) network across over 5 million premises (2m have already been built), has today set out its list of recommendations for Ofcom to consider adopting as part of their forthcoming Telecoms Access Review 2026 (TAR).<\/p>\n","protected":false},"author":1,"featured_media":32543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[56,2714,36,69,475],"class_list":["post-40564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttp","tag-nexfibre","tag-ofcom-regulation","tag-bt-openreach","tag-virgin-media"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/113826318150076847","error":""},"yoast_head":"\nNexfibre Sets Out Demands for Ofcom's UK Telecoms Access Review - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Network operator nexfibre, which is working alongside UK ISP partner Virgin Media to deploy a new 10Gbps full fibre broadband (FTTP) network across over 5\" \/>\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\/2025\/01\/nexfibre-sets-out-demands-for-ofcoms-uk-telecoms-access-review.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nexfibre Sets Out Demands for Ofcom's UK Telecoms Access Review - 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