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Openreach eyes further fibre discounts after Ofcom blocks price cut

Openreach is considering additional targeted fibre discounts over the next five years, following Ofcom's decision to block its most significant wholesale price reduction attempt.

  • Ofcom blocked Openreach's proposed 'Incremental new to Openreach customer offer', which included a £35 connection rebate and monthly discounts of up to £9.50.
  • The regulator approved a separate £50 rebate for new full-fibre customers in areas covered by Virgin Media O2.
  • Openreach aims to cover up to 30 million premises with full fibre by 2030.

Openreach is considering further targeted fibre discounts over the next five years, after Ofcom blocked its most aggressive attempt to cut wholesale prices. The BT-owned network stated it remains open to competition in different parts of the country.

Ofcom ordered Openreach to withdraw its 'Incremental new to Openreach customer offer', which would have provided broadband providers with a £35 connection rebate and discounts of up to £9.50 per customer a month. The regulator concluded this offer was not "fair and responsible", citing concerns that rival networks might struggle to match prices while recovering costs.

However, Ofcom did approve other Openreach proposals, including a £50 rebate for new full-fibre customers in areas served by Virgin Media O2. An Openreach spokesperson indicated that the company expects to launch further offers within the five-year period of the Telecoms Access Review (TAR) framework, which governs the UK's fixed telecoms market from April 2026 to March 2031.

Openreach does not sell broadband directly to households. The company stated that while it is up to communications providers (CPs) to decide how they use the offers, the aim is to strengthen their ability to compete on value and service. This, in a more competitive market, should help create better deals and make fibre more attractive for households and businesses.

Why this matters: Ofcom's regulatory framework seeks to balance lower prices for consumers with the need for investment and competition among rival fibre networks.

What this means for you: While Openreach's wholesale discounts do not guarantee cheaper bills, the company states that a more competitive market should help create better deals for households and businesses.

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