Ofcom tightens Openreach rules to enable the push to fibre

Ofcom has set out a new five year regime to accelerate the UK’s shift to full fibre.

Full fibre  now critical for mobile operators needing dense backhaul for small cells, 5G capacity and future services.

Full fibre availability has surged to 78 per cent of premises (up fromsix per cent in 2018), with coverage on track to reach 29 million properties by 2027. But adoption is lagging: more than half of eligible premises still haven’t upgraded. Ofcom is pivoting from build out to take up, arguing that higher connection rates are essential to unlock productivity gains and support data intensive technologies such as AI.

Ofcom’s moves

• Extends wholesale price caps to broadband products up to 80Mbit/s.

• Tightens oversight of Openreach discounting to prevent anti competitive behaviour.

• Introduces tougher minimum service standards in less competitive areas.

• Reduces regulatory focus on copper, giving Openreach more room to migrate customers to fibre.

Ofcom says the package balances continued investment with fair competition as the market matures. Natalie Black, Group Director for Infrastructure and Connectivity, called it “a major milestone on the road to a better connected, more productive Britain”.

Around 75 per cent of premises are now served by at least two networks but Openreach still retaiins significant power. Ofcom has tightened Openreach rules to enable the push to fibre and signalled that future deregulation is possible if sustainable competition emerges.

Competitors will retain regulated access to Openreach’s ducts and poles. Ofcom will reassess the market in 2031, and may ease or tighten controls depending on the competitive cllimate.

As the fibre build nearing completion, regulatory focus is shifting to migration, service innovation and commercial layers shorter