{"id":43550,"date":"2025-10-17T08:24:33","date_gmt":"2025-10-17T07:24:33","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=43550"},"modified":"2025-10-17T08:33:18","modified_gmt":"2025-10-17T07:33:18","slug":"ofcom-consult-on-alternative-uk-pricing-for-openreachs-uk-fibre-broadband-products","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2025\/10\/ofcom-consult-on-alternative-uk-pricing-for-openreachs-uk-fibre-broadband-products.html","title":{"rendered":"Ofcom Consult on Alternative UK Pricing for Openreach’s UK Fibre Broadband Products"},"content":{"rendered":"

The UK telecoms regulator, Ofcom<\/a>, has today proposed changes under their 5-yearly Telecoms Access Review 2026<\/strong><\/a> (TAR) to how they set charge controls and regulate the pricing of certain Openreach<\/a> based fibre broadband (FTTC<\/a>\/P) products, such as the regulated 80Mbps (currently 40Mbps) wholesale tier and connection fees for FTTP<\/a> lines.<\/p>\n

The proposals are designed to reflect Ofcom<\/a>’s effort to continue setting regulation that promotes investment and competition (including maintaining a stable regulatory environment for those investments already made), while also providing protection to consumers in certain parts of the UK as competition develops.<\/p>\n

As part of the above, Ofcom<\/a> proposed in March 2025 to continue to set flat, inflation-adjusted prices for a “basic superfast broadband<\/em>” product (80Mbps download and 20Mbps upload), whilst allowing flexibility on pricing for other speed services. This meant the wholesale price of the 80Mbps tier to ISPs couldn\u2019t rise by more than inflation each year.<\/p>\n

The measure is due to be applied to both semi-competitive areas (Area 2 – c.90% of the UK) and non-competitive areas (Area 3 – the final 10%), which is roughly the same approach as already exists for Openreach<\/a>’s older and slower 40Mbps (10Mbps upload) tier on FTTP<\/a> (full fibre) and FTTC<\/a> (part fibre) lines.<\/p>\n

However, the regulator has today launched a “narrow consultation<\/em><\/a>“, which specifically focuses on an alternative approach to setting charge controls for the 80Mbps product. “Openreach<\/a> has suggested that, rather than Ofcom imposing charge control regulations on its 80\/20 product, they instead amend their contracts with customers to achieve the same outcome<\/em>,” said Ofcom, which views the proposal as being “likely to achieve similar outcomes to the charge control and therefore could be a more proportionate way of meeting our objectives<\/em>.”<\/p>\n

Separately, Ofcom are also consulting on proposals to provide greater certainty and stability by allowing Openreach to continue charging Fibre to the Premises<\/strong> (FTTP<\/a>) connection fees in line with the current Equinox discounts<\/a>. “Specifically, we are proposing a carve out to the rules on geographic pricing, which would allow Openreach to maintain different connection charges in postcode sectors that move between regulatory areas from April 2026 \u2014 under certain clearly defined circumstances<\/em>“.<\/p>\n

Ofcom Statement<\/strong><\/p>\n

\u2022 Contract Focused Approach<\/strong> \u2013 we are consulting on whether to rely on Openreach\u2019s long term supply agreements, rather than charge controls, to provide effective price protection for the anchor product where they provide sufficient certainty.<\/p>\n

We consider that this approach could meet our objectives but invite stakeholder views on this. As part of this consultation, we have published a letter from Openreach<\/a><\/strong> setting out proposed contractual waivers, amendments and price list notifications that would give effect to this approach.<\/p>\n

\u2022 FTTP 80\/20 connections (where copper-based services are not available)<\/strong> \u2013 if we decide not to adopt a Contract Focused Approach, we would revert to considering the charge control approach proposed in our March 2025 Consultation. We therefore also propose some changes to this approach in relation to the control on FTTP connection charges.<\/p>\n

Specifically, were we to adopt a charge control approach, we propose to adopt separate single service controls for each FTTP 80\/20 connection service type and incorporate a \u00a320 uplift into the first year of the control for those products where such an uplift is allowed under Openreach\u2019s existing contracts.<\/p>\n

\u2022 Geographic discrimination prohibition<\/strong> \u2013 Under Openreach\u2019s Equinox Offers, FTTP connection fees differ between Area 2 and Area 3 (as defined in the WFTMR21). If the market boundaries in our TAR 2026 Statement change from those in the WFTMR21, then from 1 April 2026, these connection fees would vary within the newly defined WLA Area 2. This would in principle be subject to the proposed geographic discrimination prohibition.<\/p>\n

To reduce the risks of market disruption and regulatory uncertainty, we propose a specific carve-out from the geographic discrimination prohibition. The carve-out would permit geographic differences in connection charges, where such differences reflect the terms of the Equinox Offers and also align with WFTMR21 geographic market boundaries. This proposal would apply under both a Contract Focused Approach and a charge control approach.<\/p><\/blockquote>\n

The move for Openreach’s 80Mbps tier could be seen as a way of softening the regulation on the incumbent (something that will happen as market competition grows), while still achieving broadly the same end result for consumers. Openreach would also have “no ability to unilaterally change<\/em>” the conditions during Ofcom’s 5-year market review period, until 2031.<\/p>\n

At present, the regulator has not made a final decision on what approach they will take, but the outcome is expected to be revealed alongside their final TAR statement in March 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK telecoms regulator, Ofcom, has today proposed changes under their 5-yearly Telecoms Access Review 2026 (TAR) to how they set charge controls and regulate the pricing of certain Openreach based fibre broadband (FTTC\/P) products, such as the regulated 80Mbps (currently 40Mbps) wholesale tier and connection fees for FTTP lines.<\/p>\n","protected":false},"author":1,"featured_media":31957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[56,36,69],"class_list":["post-43550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttp","tag-ofcom-regulation","tag-bt-openreach"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/115388316284997346","error":""},"yoast_head":"\nOfcom Consult on Alternative UK Pricing for Openreach's UK Fibre Broadband Products - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK telecoms regulator, Ofcom, has today proposed changes under their 5-yearly Telecoms Access Review 2026 (TAR) to how they set charge controls and\" \/>\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\/10\/ofcom-consult-on-alternative-uk-pricing-for-openreachs-uk-fibre-broadband-products.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ofcom Consult on Alternative UK Pricing for Openreach's UK Fibre Broadband Products - 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