Ofcom Blocks Openreach Fibre Discount Offer for the First Time
July 28, 2026 – 1:51 pm
Image by: Kenneth Allen
Ofcom has taken an unprecedented step by proposing to block a discounted wholesale offer from Openreach—a first in the regulator’s history. The offer aimed to provide internet providers with up to £9.50 per customer per month for 30 months when they exceeded their usual full-fibre customer sign-up rate.
Ofcom’s Concerns
The regulator expressed doubts about the pricing structure, arguing that it could harm competition in the developing wholesale full-fibre market. Specifically, Ofcom feared that rivals might match the discount without being able to recover their costs, ultimately driving up prices and undermining competition.
“Openreach must be able to compete, but they cannot use their significant market power to drive other networks out of the market,” stated Natalie Black, Ofcom’s group director for infrastructure and connectivity.
Other Offers Approved
Ofcom provisionally approved three other offers from Openreach. These include a one-off £50 discount for new full-fibre customers in areas served by Virgin Media O2 and another that caps charges for new high-speed connections.
Openreach’s Response
Openreach expressed disappointment with Ofcom’s decision regarding the blocked offer, stating, "In such a competitive market, we don’t believe that regulation should protect poor business models…" They intend to engage in the consultation process.
Competitors’ Viewpoints
Virgin Media O2 supported the proposal but suggested Ofcom’s scope was too narrow. They accused Openreach of employing a strategy of offering selective discounts to discourage providers from using alternative fibre networks.
Rajiv Datta, chief executive of Nexfibre, echoed this sentiment, welcoming the block on one offer but advocating for a harder line against what he deemed as a "drip-feed" of other offers designed to prevent scaled wholesale competition.
Timing and Implications
James Robinson, senior equity analyst at Assembly Research, noted that Openreach’s swift action after Ofcom’s Telecoms Access Review concluded raised questions about their intent.