UK Regulator Moves to Block BT Openreach's Wholesale Fiber Discount Offer

The UK's communications regulator, Ofcom, has proposed directing BT Group's Openreach to withdraw a new wholesale fiber broadband discount offer, citing concerns that its pricing structure may not be fair and reasonable. The regulator launched a consultation on Tuesday to formally direct the withdrawal of the program.

Regulatory Intervention

The intervention targets Openreach’s “Incremental New to Openreach Offer,” a program introduced in June. Ofcom stated that its action is based on ensuring pricing is fair and reasonable for all market participants.

The regulator evaluates such commercial offers against three core criteria established in its Telecoms Access Review 2026-31. These include assessing conditional terms, discriminatory geographic discounts, and overall fair pricing standards.

Details of the Discount Program

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The offer was designed to provide internet service providers (ISPs) with monthly discounts for adding new full-fiber customers to the Openreach network. A key condition is that the discounts, which can reach up to £9.50 per customer, only apply to new sign-ups that exceed an ISP’s typical customer acquisition volume.

The discounts are structured to last for a period of up to 30 months per eligible new customer. This structure has raised regulatory concerns about its potential impact on competition and fairness in the wholesale broadband market.

Market Outlook

Following the announcement, analysts are considering Openreach's next steps. According to a note from Citi, one potential outcome is that Openreach could return with a modified version of the offer that features reduced discount levels to address Ofcom's concerns.