UK communications regulator Ofcom has proposed intervening to block a commercial promotion by BT’s infrastructure arm, Openreach, marking the first time the watchdog has moved to stop one of the dominant network operator’s pricing offers. The decision centers on concerns that aggressively targeted discounts could weaken competing network providers and ultimately lead to higher long-term prices for consumers.
The focus of Ofcom’s proposed action is Openreach’s ‘Incremental New to Openreach Offer’, which promises internet service providers monthly discounts of up to £9.50 per customer for up to 30 months. To qualify, providers must onboard new full-fibre customers above their typical sign-up thresholds. Ofcom highlighted that because the steep discounts specifically target customer volume vital for growing alternative networks, smaller competitors would struggle to match the rates while covering their operational costs. This dynamic risks suppressing sustainable competition in wholesale broadband markets that are still in early stages of development across much of the UK.
While Ofcom intends to direct Openreach to withdraw this specific promotion, it is not proposing to intervene in several other planned commercial offers. These include the ‘Geographic Incremental New to Openreach Offer’, which targets areas where rival networks operate, as well as the ‘Frontbook ARPU Share Offer’ for higher-speed connections. The regulator concluded that these other proposals carry significantly lower effective discounts and are unlikely to prevent efficient competitors from operating effectively in the market.
Ofcom’s overarching strategy relies on supporting multi-network competition, which it views as essential to driving quality improvements and maintaining affordable prices for consumers. Natalie Black, Ofcom’s Group Director for Infrastructure and Connectivity, emphasized that while Openreach has the right to compete, it must not leverage its market dominance to stifle alternative network investments. The consultation remains open for industry feedback through late August, with a final decision expected by the end of September.