{"id":47504,"date":"2026-07-28T07:26:40","date_gmt":"2026-07-28T06:26:40","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=47504"},"modified":"2026-07-28T11:24:44","modified_gmt":"2026-07-28T10:24:44","slug":"ofcom-provisionally-propose-blocking-openreachs-new-fttp-broadband-discount","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2026\/07\/ofcom-provisionally-propose-blocking-openreachs-new-fttp-broadband-discount.html","title":{"rendered":"Ofcom Propose to Block New Openreach UK FTTP Broadband Discount UPDATE2"},"content":{"rendered":"

The UK telecoms regulator, Ofcom<\/a>, has today, for the first time, provisionally proposed to block one of several network discounts that network access provider Openreach<\/a> (BT<\/a>) had proposed to introduce in order to help them stay competitive and attract new customers to their full fibre (FTTP<\/a>) broadband lines. But the separate \u00a350 rebate offered in Virgin Media<\/a> areas got a pass.<\/p>\n

Readers might recall that Openreach<\/a> notified Communication Providers (broadband ISPs etc.) about a bunch of offer extensions and new discounts for their Fibre-to-the-Premises<\/strong> (FTTP<\/a>) lines back in June 2026 (here<\/a>). Several of these were targeted at New\u2011to\u2011Network<\/strong> (NTN) services, which usually means a property (house, flat etc.) where there has been no Openreach<\/a> products and services on the relevant line at any point in the last 90 consecutive days prior to the date of the FTTP<\/a> order (excluding any premises on \u2018New Sites\u2019, like new build homes).<\/p>\n

NOTE:<\/strong> The BT<\/a> Group is investing c.\u00a315bn for Openreach to build their full fibre lines to cover 25 million premises by December 2026, and they hold an ambition to cover \u201cup to<\/em>\u201d 30 million by 2030 (c.80% of the UK). The operator has already covered 23.5 million premises.<\/div>\n

Several of the new discounts were widely viewed as being somewhat of a test case for Ofcom<\/a>’s new market regulation under the recent Telecoms Access Review 2026<\/strong><\/a> (TAR) changes. This requires the regulator to take a deeper dive into the promotions that Openreach runs in order to better assess whether or not they’re fair or discriminatory.<\/p>\n

One of the discounts, which gave broadband ISPs on its network an extra \u00a350 rebate for winning incremental new \u201cfull fibre<\/em>\u201d (FTTP) customers in areas where Openreach competes with Virgin Media<\/a> (VMO2), naturally caused plenty of anger within VMO2 (here<\/a>). Lutz Sch\u00fcler, CEO of VMO2, recently warned Ofcom<\/a> to “approach these offers as a serious threat to the emergence of long-term network competition<\/em>“.<\/p>\n

Ofcom’s Summary of Openreach’s June 2026 Offers<\/strong><\/span><\/p>\n

1. Incremental New to Openreach Offer<\/strong>.<\/p>\n

This offer gives Internet Service Providers (ISPs) a monthly discount for bringing new full-fibre customers onto Openreach\u2019s network. It applies only to new customers above an ISP\u2019s normal number of new sign-ups. The discount could be very substantial \u2013 up to \u00a39.50 per customer for up to 30 months.<\/p>\n

2. Geographic Incremental New to Openreach Offer<\/strong><\/p>\n

In areas where Virgin Media<\/a> operates, this offer provides a one-off \u00a350 discount on new full-fibre customers to Openreach, above the usual number of an ISP\u2019s new sign-ups. Altnets also have significant presence in some of the areas covered by this offer.<\/p>\n

3. Frontbook ARPU Share Offer<\/strong><\/p>\n

When a household wants a higher-speed broadband package, they’ll typically pay more to their provider, who in turn will also pay more to Openreach. This offer will cap what an ISP pays on average for new high-speed connections at \u00a319.32 per month. In practice it would make getting people onto higher speed packages more commercially attractive to ISPs.<\/p><\/blockquote>\n

In the end Ofcom’s new consultation<\/strong><\/a> has only provisionally proposed to block the first discount above (i.e. the Incremental New to Openreach Offer), and not the other two or a separate offer on business connections. The regulator’s view is that they consider the charges in that first offer “are not fair and reasonable and could harm the development of network competition<\/em>“.<\/p>\n

This marks the first time that Ofcom has stepped in to block a commercial offer from Openreach and will set a precedent for future discounts. Under this offer, Openreach was found to be “targeting significant discounts at new customers that are key to altnets\u2019 ability to grow their customer base, while leaving prices for other customers unchanged<\/em>“, which Ofcom feared could “undermine sustainable competition<\/em>“. But the \u00a350 discount in Virgin Media areas got a pass.<\/p>\n

The reason the other offers were allowed is because they were found to be “much less substantial and would be unlikely to prevent other reasonably efficient networks from competing with Openreach<\/em>“, explained the regulator.<\/p>\n

Ofcom’s Provisional Proposals<\/strong><\/span><\/p>\n

We propose to direct Openreach to withdraw the Incremental New to Openreach Customer Offer. We are not proposing to intervene in relation to Openreach\u2019s other notified offers. Our provisional assessment of the offers is as follows:<\/p>\n

\u2022 Incremental New to Openreach Customer Offer:<\/strong>
\nOur provisional view is that Openreach\u2019s charges under this offer are not fair and reasonable, because they result in margins that may not allow a reasonably efficient operator to recover its costs. We consider that, because of its SMP, Openreach is uniquely able to make such a targeted low-price offer. The discounts are targeted at customers which are important to altnets\u2019 ability to maintain and grow their customer base, while leaving prices for other customers unchanged. Matching these significant targeted discounts may not allow competing networks to recover their costs, particularly given the low prices they are already offering across their customers, as they seek to grow take-up and overcome Openreach\u2019s incumbency advantages. As such, there is a risk that the level of the offer prices could harm the development of network competition, to the detriment of consumers in the long term. We are therefore proposing to direct Openreach to withdraw this offer.<\/p>\n

\u2022 Geographic Incremental New to Openreach Customer Offer:<\/strong>
\nThis offer also targets lower prices at customers which are important to altnets\u2019 ability to maintain and grow their take-up but applies in VMO2 areas. It is geographically targeted at areas where altnets also have significant presence, but are not yet established and sustainable competitors. Notwithstanding these features, the scale of the discount in this case means that we consider that the geographical targeting of this offer does not amount to undue discrimination as, in our view, the risk that the discount would harm long-term competition is not sufficiently plausible. Therefore, given the specifics of this offer, we are provisionally content for Openreach to implement the offer on this occasion. We also consider that the conditionality in the offer does not potentially create a barrier to using a rival network.<\/p>\n

\u2022 Ethernet Net Demand Offer:<\/strong>
\nWe consider the conditionality attached to this offer does not potentially create a barrier to using a rival network, and the price level does not raise prima facie concerns that would lead us to investigate in further detail.<\/p>\n

\u2022 Frontbook ARPU share offer and Box Swap offer:<\/strong>
\nTaking account of CFI responses, we have also assessed these offers, which commenced on 1 July and are not conditional or geographic offers. In our provisional view, they do not raise concerns under the fair and reasonable FTTP pricing requirement.<\/p>\n

\u2022 Six-month extension of existing Equinox incentives:<\/strong>
\nHaving assessed this extension, we have determined that it does not raise concerns about the conditional terms within the offer and, as this an extension of the existing offer, the price level is already factored into our assessment of pricing described above.<\/p>\n

We are mindful of the potential cumulative impact of multiple, overlapping offers and have taken this into account in our assessment of the offers.<\/p><\/blockquote>\n

Ofcom’s consultation on their provisional recommendations will run until 27th August 2026 and they expect to make a final decision by the end of September 2026. On the one hand we suspect Openreach will argue that this will deprive consumers of lower broadband pricing, while also making it harder for them to compete with often cheaper and faster alternative networks (altnets).<\/p>\n

On the other hand, Ofcom’s view is that the Openreach discount they want to stop could harm “sustainable competition<\/em>“, which over time might result in prices rising due to a lessening of competition through the presence of fewer rival networks. But admittedly there is an element of crystal ball gazing in all of this.<\/p>\n

Rajiv Datta, CEO, nexfibre<\/a>:<\/strong><\/p>\n

\u201cWe welcome Ofcom\u2019s proposal to block the most egregious of BT<\/a> Openreach\u2019s proposed offers, but it does not go far enough.<\/p>\n

The regulator should also consider the cumulative effect of the steady drip-feed of other offers, which form part of a wider playbook to prevent the emergence of scaled wholesale competition and entrench BT Openreach\u2019s dominant position.<\/p>\n

We will make these points in our response to the consultation.\u201d<\/p><\/blockquote>\n

We hope to have Openreach’s reaction shortly.<\/p>\n

UPDATE 8:16am<\/strong><\/p>\n

We’ve got Openreach’s response and a reply from Virgin Media (O2<\/a>).<\/p>\n

James Lowther, Managing Director for Commercial (Openreach), said:<\/strong><\/p>\n

\u201cWe\u2019re disappointed that Ofcom has expressed concerns about one of our four offers, which we put forward in good faith at a time when many households are watching every bill. In such a competitive market, we don\u2019t believe that regulation should protect poor business models and we disagree with Ofcom’s analysis. We\u2019ll continue to engage constructively via the consultation to help our customers compete.\u201d<\/p><\/blockquote>\n

A Virgin Media O2<\/a> spokesperson said:<\/strong><\/p>\n

\u201cWe agree with Ofcom\u2019s decision to block one of Openreach\u2019s most aggressive offers, but this still fails to recognise the full picture of the incumbent\u2019s tactics, the interrelated nature of the offers and Openreach\u2019s clear intent to \u2018test the waters\u2019 with the aim of continuing to disrupt emerging competition in future.<\/p>\n

Ofcom should be tougher in holding Openreach\u2019s behaviour to account as it looks to entrench its dominant position and squeeze competition against the direction set by the regulator in its recent market review. We\u2019ll be making these points clear in our response to Ofcom\u2019s consultation.\u201d<\/p><\/blockquote>\n

UPDATE 11:21am<\/strong><\/p>\n

The Independent Networks Co-operative Association<\/a> (INCA), which represents many altnets, has given a partial welcome to Ofcom’s proposal.<\/p>\n

Paddy Paddison, CEO of INCA, said:<\/strong><\/p>\n

\u201cINCA welcomes Ofcom\u2019s provisional view on Openreach\u2019s Incremental New to Openreach Offer. This is an important and timely intervention, and a clear signal that sustainable network competition must be protected at the point it is beginning to take hold.<\/p>\n

INCA and its members made detailed submissions to Ofcom\u2019s Call for Inputs on the offers notified by Openreach on 1 June. We are pleased that Ofcom has recognised the risk that a heavily discounted offer, targeted at the very customers independent networks need to grow, could undermine the development of fair and sustainable competition.<\/p>\n

This is not the end of the process. It is an important first step. Ofcom has reached a provisional view on one offer, but INCA remains concerned that the wider package of Openreach offers needs to be considered carefully, including their combined effect on independent networks, non-BT Group ISPs and long-term consumer choice.<\/p>\n

Competition is working. Independent networks now pass 19.7 million premises and added more than 850,000 customers during 2025. That investment is helping to create a genuinely competitive broadband market, bringing faster services, better customer experience and greater choice to homes and businesses across the UK.<\/p>\n

The purpose of regulation in this market should be to support that transition from emerging competition to sustainable competition. Discounts that simply move customers from one fibre network to another do not extend coverage, connect the hardest-to-reach premises or help build the gigabit-capable Britain the country needs.<\/p>\n

Openreach must be able to compete, but it must not be able to use its Significant Market Power in ways that weaken the very competition Ofcom has worked for many years to create. We now urge Ofcom to stand firm in its provisional view and to apply the same competition principles rigorously to the other offers notified by Openreach on 1 June.<\/p>\n

INCA will work closely with its members over the coming weeks to provide further evidence to Ofcom. Today\u2019s announcement shows that the evidence submitted by the independent broadband sector matters. The next phase is to ensure the final decision protects investment, competition and consumers for the long term.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The UK telecoms regulator, Ofcom, has today, for the first time, provisionally proposed to block one of several network discounts that network access provider Openreach (BT) had proposed to introduce in order to help them stay competitive and attract new customers to their full fibre (FTTP) broadband lines. But the separate \u00a350 rebate offered in […]<\/p>\n","protected":false},"author":1,"featured_media":43142,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[56,36,69,475],"class_list":["post-47504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-fttp","tag-ofcom-regulation","tag-bt-openreach","tag-virgin-media"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/116996184632164241","error":""},"yoast_head":"\nOfcom Propose to Block New Openreach UK FTTP Broadband Discount UPDATE2 - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK telecoms regulator, Ofcom, has today, for the first time, provisionally proposed to block one of several network discounts that network access\" \/>\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\/2026\/07\/ofcom-provisionally-propose-blocking-openreachs-new-fttp-broadband-discount.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ofcom Propose to Block New Openreach UK FTTP Broadband Discount UPDATE2 - 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