Ofcom blocks Openreach broadband discount to protect competition

The UK telecoms regulator, Ofcom, has ordered Openreach to withdraw a specific discounted offer aimed at attracting new full-fibre customers. The blocked deal, known as the ‘Incremental New to Openreach’ offer, provided internet service providers with a monthly rental rebate of up to £9.50 for 18 to 30 months, alongside a connection rebate.

Ofcom determined the offer was “not fair and reasonable” because Openreach holds a position of Significant Market Power (SMP). The regulator argued that the scale of the discount could prevent alternative networks (altnets) from matching the price while still recovering their costs. Ofcom noted that such targeted discounts could stymie the ability of competitors to scale their customer base at a time when many households have yet to adopt full-fibre broadband.

Openreach stated the offer was submitted in good faith to help customers compete and deliver value. While the company expressed disagreement with the decision, it confirmed it would review the ruling and proceed with other planned commercial offers that involve smaller discounts. BT Group is currently investing approximately £15bn to expand Openreach’s full-fibre coverage across the UK.