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In a blow to alternative network providers, Ofcom has allowed Openreach to sell its Equinox 2 full-fibre services at lower prices to retail providers.
To get the lower prices providers such as Sky, Vodafone, and TalkTalk have to agree to use mainly Openreach’s full-fibre products for new orders instead of legacy copper products.
Ofcom admits alternative networks are likely to face stronger competition from Openreach.
“However, we conclude terms of the offer do not create a potential barrier to using altnets. Equinox 2 is consistent with network-based competition. Not preventing Openreach from introducing Equinox 2 allows it to engage in network-based competition, without compromising our objective of promoting investment in gigabit-capable networks” said an Ofcom statement.
Vodafone UK CEO Ahmed Essen supported the move urged its other partners to come out with a reduced social tariff for people who struggle to afford connectivity.
‘ I fully support Openreach‘s new full-fibre wholesale pricing proposal, Equinox II. It will help broadband retailers offer more attractive packages and UK consumers will benefit from good value, choice, and innovation. But we want to continue offering our most vulnerable customers affordable social tariffs, too. And we can’t do this unless our partners – Openreach, CityFibre, and others – offer a substantially reduced wholesale social tariff. We hope Ofcom will support us in this request”..
Openreach CEO Clive Selley assured Ofcom:
“We are confident that Openreach’s offer will continue the momentum towards adoption of fibre services that has built since the introduction of the Equinox offer, driving positive outcomes for Openreach’s CP customers and consumers. In making FTTP the technology of choice for CPs and their customers Openreach considers that Equinox 2 will deliver benefits for industry as a whole”.