October 15, 2025
The UK’s communications regulator, Ofcom, has concluded that Openreach’s proposed fibre broadband pricing plan poses no threat to market competition. The decision clears the way for wider rollout of affordable gigabit broadband.
LONDON, October 11, 2025 — The UK communications watchdog Ofcom has ruled that Openreach’s new fibre broadband pricing offer does not breach competition rules, easing industry concerns and paving the way for faster broadband rollout across the United Kingdom.
The decision follows months of consultation with rival internet service providers (ISPs), including Virgin Media O2, CityFibre, and TalkTalk, who had warned that Openreach’s discounted wholesale pricing might create an uneven playing field.
After reviewing the proposed pricing model and its potential impact on the wider market, Ofcom concluded that the offer was “pro-competitive” and would likely benefit consumers by accelerating the deployment of full-fibre (FTTP) networks nationwide.
“Our analysis shows that Openreach’s pricing structure will help make gigabit broadband more affordable while leaving room for competitors to innovate,” said an Ofcom spokesperson in the official statement.
Openreach, which operates under BT Group, is responsible for maintaining the UK’s broadband infrastructure used by dozens of ISPs. The company’s latest plan, known internally as the Equinox 3 offer, introduces lower wholesale prices for ISPs that commit to connecting more customers to fibre.
Rival network builders had claimed that these price discounts could make it harder for alternative fibre networks (“altnets”) to compete, arguing that Openreach’s financial leverage and BT’s dominant market position could lead to long-term market distortion.
Ofcom, however, said that after assessing cost structures, market access, and ISP choice, the proposal did not amount to predatory pricing and instead encourages uptake of ultrafast broadband in under-served areas.
Industry analysts say the ruling could boost broadband adoption among smaller providers and help the UK government meet its Gigabit Britain target of 85% nationwide full-fibre coverage by 2026.
“Ofcom’s decision removes a layer of uncertainty for ISPs and investors,” said broadband analyst Matthew Howarth at Enders Analysis. “It signals a clear path forward for wholesale fibre deals and consumer affordability.”
CityFibre and other alternative network providers said they would “review the decision carefully” but urged continued monitoring to ensure that Openreach does not later use its scale to lock out competition.
Openreach confirmed that it will proceed with the Equinox 3 rollout, offering lower wholesale prices from January 2026, with the goal of increasing full-fibre take-up among both urban and rural providers.
The decision is also expected to encourage further investment in fibre network expansion and reduce costs for consumers as broadband providers compete on pricing and speed.
The UK government welcomed the ruling, emphasizing that faster, more reliable internet is crucial for small businesses, education, and digital public services.
“Affordable broadband is essential for economic growth,” said Digital Infrastructure Minister Eleanor McCarthy. “This ruling ensures competition thrives while bringing better connectivity to millions.”
While some smaller ISPs remain cautious, most agree that Ofcom’s findings provide regulatory clarity — a crucial factor for long-term digital infrastructure investment.
