Ofcom moves to block Openreach discount offers to protect competition

The UK communications regulator Ofcom has opened a consultation on its provisional view that Openreach’s proposed “Incremental New to Openreach Offer” should be withdrawn. The offer would give Internet Service Providers up to a £9.50 per‑customer discount for up to 30 months when they bring new full‑fibre customers onto Openreach’s network. Ofcom argues the discounts are not fair or reasonable and could undermine sustainable competition by giving Openreach‑linked providers an advantage that other operators cannot match.

If implemented, this would be the first time Ofcom intervenes to block a commercial offer from Openreach. The regulator also noted other pending offers – including geographic discounts for Virgin Media‑covered areas and a cap on ISP payments for higher‑speed connections – but its immediate focus is on the incremental discount scheme.

Ofcom’s intervention aims to ensure that new‑customer discounts do not distort the market and that alternative network operators can recover costs, preserving competition in the UK broadband sector.