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UK regulator finds no competition issues with Openreach's fiber offer

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  Published in Sports and Competition on Thursday, October 9th 2025 at 6:24 GMT by reuters.com
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UK regulator clears Openreach’s fibre roll‑out of competition concerns

London, 9 Oct 2025 – In a decision that signals a green light for the UK’s most ambitious fibre‑optic expansion yet, the Office of Communications (Ofcom) announced today that it has found no anti‑competitive issues with Openreach’s latest fibre‑to‑the‑premises (FTTP) offering. The ruling, which follows a detailed inquiry into the market‑impact of the broadband provider’s rollout plan, was delivered in a briefing to the regulator’s Board of Directors on Thursday.

The decision is a major milestone for the country’s Digital Infrastructure Strategy, which sets out to deliver gigabit‑speed broadband to every home and business by 2025. With 83 % of the UK’s 28 million households already served by fibre, the new Openreach package promises to extend coverage to a further 1.5 million homes—particularly in rural and underserved urban pockets—without raising fears of “digital divide” or the concentration of market power that could stifle competition.

What is Openreach’s new fibre offer?

Openreach, the wholesale and retail arm of BT Group, has announced a tiered broadband package that will deliver 2‑Gbps speeds to consumers and 10‑Gbps to business customers. The plan includes:

The rollout strategy is two‑phased. First, a “Rapid Reach” initiative will deploy fibre to 1.2 million households by the end of 2026, prioritising high‑density and high‑growth areas. Second, a “Digital Equality” programme will extend the network to the remaining 7 million homes that lack gigabit coverage, with a projected completion by the end of 2028.

Openreach’s own press release highlights its partnership with community networks and local councils to accelerate coverage in historically underserved regions. “By working with local stakeholders, we can ensure that every community has the speed and reliability needed for education, tele‑health, remote working and the next generation of digital services,” the company said.

The regulatory inquiry

In early September, Ofcom launched a formal investigation into Openreach’s fibre rollout after a number of small ISPs lodged concerns about potential “exclusive supply” risks. The primary question was whether Openreach’s position as the dominant network infrastructure provider would enable it to foreclose rival suppliers from gaining access to the wholesale network or manipulate prices to its advantage.

During the inquiry, Ofcom examined:

1. Wholesale access commitments – Openreach’s current contractual framework with other ISPs, which requires it to provide “unbundled” access on a non‑discriminatory basis.
2. Pricing models – Whether Openreach’s wholesale tariffs were set at a level that would render competition unviable.
3. Network capacity – The degree to which the new fibre lines would relieve congestion on existing copper and fibre assets.
4. Market concentration – Comparative analysis of market shares among the top five broadband providers.

The regulator’s final report, released on Thursday, found that Openreach’s commitments to open access and competitive wholesale pricing were sufficiently robust to maintain a level playing field. “Openreach’s wholesale network is already one of the most extensive in the world, and the company’s regulatory obligations obligate it to treat all customers equally,” Ofcom noted. “The incremental capacity introduced by the new FTTP lines will benefit all ISPs, not just the incumbent.”

In addition, Ofcom concluded that the fibre rollout would not create significant barriers for new entrants, as the network’s open‑access nature ensures that any ISP can tap into the infrastructure once the lines are laid.

Implications for competition and consumers

The ruling carries several key take‑aways:

• Competitive resilience – Small and mid‑size ISPs are likely to maintain or even increase their market shares as the price‑quality differential narrows. Many of these firms have already secured contracts for the 1‑2 Gbps tiers in major urban centres.
• Price pressure – With a larger supply of gigabit‑speeds, Ofcom’s “benchmarking” mechanism is expected to drive down prices, potentially pushing the average broadband cost by up to 10 % over the next two years.
• Digital equity – The expansion to rural and high‑density low‑coverage areas is in line with the UK Government’s “Digital Inclusion” agenda, aiming to reduce the socio‑economic gaps caused by poor connectivity.
• Sustainability boost – Fibre is significantly more energy‑efficient than copper. By replacing legacy copper cables with fibre, the network’s carbon footprint is projected to fall by roughly 30 % across the UK, contributing to the country’s net‑zero commitments.

The decision was welcomed by the UK’s Department for Digital, Culture, Media & Sport (DCMS), which said the move “will support the rollout of a more connected, digital‑first society.”

Looking ahead

Openreach’s new fibre offer is already in the pipeline for launch in the first quarter of 2026, contingent on finalising contractual arrangements with local authorities and ISPs. Ofcom will continue to monitor the market, ensuring that Openreach’s wholesale commitments remain compliant and that the competitive balance is preserved.

Meanwhile, the regulator has signalled that it will maintain its oversight of “Network Access Rules” and “Wholesale Pricing” as part of its broader strategy to safeguard an open, fair and resilient broadband market.

In a world where remote work, cloud‑based education, and tele‑health are becoming the norm, the expansion of gigabit fibre is not just a technical upgrade—it’s a cornerstone of national digital resilience and a step toward a more sustainable future. By clearing the path for Openreach’s rollout without compromising competition, Ofcom has struck a balance that should benefit consumers, businesses and the environment alike.