Openreach expects to launch further fibre discounts under Ofcom’s new regulatory framework, despite the regulator blocking its boldest price proposal. The BT-owned network made the comments in September 2026, indicating that competition in Britain’s broadband market is set to strengthen over the coming years.
At the centre of the matter is the Telecoms Access Review, Ofcom’s framework for the UK fixed telecoms market covering April 2026 to March 2031. It sets the rules for the network’s wholesale pricing as the regulator weighs lower prices for customers against continued investment and the growth of rival fibre networks.
The outcome gives investors a clear view of how the market will be managed for the next five years. It also points to a steady flow of savings for business customers as networks compete for each new connection.
A balanced ruling
Ofcom’s decision allows Openreach to compete strongly where genuine rivalry exists, while ensuring challenger networks keep the room they need to grow. The regulator blocked one of the company’s proposals but approved the others, setting a clear boundary for how far wholesale pricing can go under the new framework.
The rules are also designed to adapt as the market develops. ‘Ofcom have designed the TAR framework to be flexible as competition develops, and so an offer that isn’t approved now may be possible within the TAR period,’ an Openreach spokesperson said. The company added that further offers were expected over the five-year TAR period as the competitive picture evolves.
Clarity for investors
The ruling shows a regulator prepared to protect the investment case for competing infrastructure while allowing the incumbent to compete where rivalry is established. Maintained across a five-year framework, this balance should keep capital flowing into Britain’s fibre upgrade while prices across the market remain under downward pressure.
Few utilities combine long-term regulatory clarity with a product that customers increasingly regard as essential. Full-fibre broadband offers both, giving backers of incumbent and challenger networks alike a settled set of rules against which to plan until 2031.
Where Ofcom drew the line
The regulator ordered Openreach to withdraw its ‘Incremental new to Openreach customer offer’, which would have given broadband providers a £35 connection rebate and discounts of up to £9.50 per customer each month. Ofcom concluded the offer was not ‘fair and responsible’, on the basis that rival networks might have been unable to match the prices while recovering their own costs.
Approval of the network’s remaining proposals, including a £50 rebate for new full-fibre customers in areas served by Virgin Media O2, leaves clear scope for more geographically targeted competition. The distinction gives the market a practical guide to what the framework will allow, with national measures tested more closely than offers aimed at areas where a strong rival already operates.
The economics
Analysis by Enders estimates the network’s underlying full-fibre costs at around £13 to £14 per customer each month, comfortably below its estimated average fibre revenue of about £19. On these figures, the company retains a margin of roughly £5 to £6 per customer each month.
Ofcom currently tests discounts against the estimated economics of a hypothetical ‘reasonable efficient’ rival network, a benchmark Enders places at around £17.41 per month. Set against average revenue of about £19, the benchmark leaves relatively little room for national price cuts while rival networks are still maturing, and gives investors in challenger networks a useful reference for the cost levels the rules are designed to protect.
Openreach said it could not confirm the specific level of its true fibre costs, but that it had built efficiently at low cost and wanted to pass the benefits to end customers.
Choice for businesses
Competition between Britain’s largest network and rivals including Virgin Media O2 and Cityfibre is constructive for businesses and households alike. Pressure of this kind tends to hold line rental increases down and widen the availability of full-fibre deals.
The effect is likely to be most visible outside the biggest cities, where challenger networks are now digging. Companies with regional offices, branch networks or distributed teams stand to benefit from greater choice and keener pricing as providers compete for connections.
The road to 2031
The TAR period provides a stable foundation for decisions on both sides of the market. Investors can use the framework’s timeline and the Enders cost benchmarks to assess opportunities across incumbent and challenger networks, treating each new Openreach offer as a signal of where competition is strongest.
Businesses reviewing connectivity contracts have good reason to revisit their terms as the market develops, particularly in areas served by more than one network. Firms that time renewals carefully and compare providers across competing infrastructure will be well placed to secure faster connections at lower cost over the years ahead.