Broadband Discount Blocked
Ofcom orders Openreach to withdraw broadband discount to protect market competition.
Anonymous
Ofcom has ordered Openreach to withdraw its “Incremental New to Openreach” discount, which would have offered internet providers up to £9.50 per month for as long as 30 months to attract new full-fibre customers. The regulator said the offer could be difficult for smaller rival networks to match while covering their costs and could hinder their efforts to grow, weakening competition over time. Ofcom said it had no objection to Openreach’s other, smaller commercial offers. Openreach said it proposed the discount in good faith to help providers compete and deliver value to households, and will review the decision while continuing to engage with Ofcom.
Key Points
1
Around half of UK households with access to full-fibre broadband had not yet signed up, leaving a substantial pool of potential new customers for the discount to target.
2
Ofcom’s decision followed a consultation: alternative network operators supported blocking the offer, while Openreach customers including Sky and BT’s retail arm opposed the regulator’s plan.
3
Ofcom argued that Openreach’s scale and incumbent position made the discount easier for it to offer than for rival networks to match, particularly as those rivals were already charging low prices while trying to grow customer take-up.
4
Openreach’s network is used by hundreds of internet service providers, and the company faces direct competition from alternative networks including Virgin Media O2 and CityFibre.
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