Ofcom blocks Openreach's aggressive fiber discount

Ofcom has blocked an Openreach discount designed to bring more customers onto its fiber network. The regulator said rivals might be unable to match the price and still recover their costs. The decision was published on 28 September 2026 and covers the "Incremental New to Openreach Customer Offer", one of several Openreach pricing changes that were due to take effect on 1 October.

What the offer promised

Openreach is BT's functionally separate network division and Britain's largest fixed-line infrastructure provider. It notified Ofcom of the plans in June 2026. Under the rejected offer, internet service providers would have been rewarded for connecting more new fiber-to-the-premises (FTTP) customers than an agreed baseline. The package included a £35 connection discount and a monthly reduction of up to £9.50, applied for as long as 30 months and only to customers above each provider's normal level of new Openreach signups.

Ofcom provisionally decided to block the offer in July 2026 and consulted the industry. Its final decision makes that position permanent; it is the first time the regulator has rejected a commercial offer from Openreach.

Why Ofcom stepped in

The watchdog concluded that the charges were "not fair and reasonable", because a reasonably efficient rival might be unable to match them while recovering its costs. It was particularly concerned about alternative network operators, or altnets, which need new customers to grow and to compete with Openreach. Ofcom noted that around half of the households able to order full-fibre broadband have not signed up yet.

Other Openreach offers were cleared. They include a one-off £50 rebate for connections above a provider's usual number of new Openreach customers in areas served by Virgin Media O2, and a free connection when net new Ethernet demand exceeds 90 percent of a provider's historical run rate. Ofcom had previously declined to intervene in the Equinox and Equinox 2 discount schemes.

Reaction

Wholesale fiber operator nexfibre called the decision a positive step toward protecting competition in the UK market, but said the regulator could have gone further, arguing that Openreach's practice of "drip-feeding price changes via special offers" needs to stop. James Lowther, Openreach's commercial managing director, said the outcome matched Ofcom's consultation position and that the company had put the offer forward in good faith. He said Openreach would review the decision carefully, keep engaging with the regulator and launch its other offers.