Openreach faces criticism over fibre discounts that could limit consumer choice
Openreach – the network used by most UK broadband providers – is facing criticism from smaller internet companies over a new discount scheme for full fibre (FTTP) that some say could undermine competition and reduce choice for consumers.
The pricing plan, known as Equinox 3, offers wholesale discounts to broadband providers who use Openreach’s network. But rival network operators and smaller ISPs argue that the deals make it harder for them to compete, particularly in areas where both Openreach and “altnet” providers (like CityFibre, Hyperoptic and Community Fibre) have built their own fibre networks.
Why it matters
Most broadband customers never deal directly with Openreach – but its pricing affects almost everyone. The company builds and maintains the UK’s largest broadband network, used by household names such as BT, Sky, TalkTalk, Plusnet and Vodafone.
If the wholesale prices that Openreach offers to these providers are significantly cheaper than what smaller or independent networks can match, critics say it could discourage competition, leaving customers with fewer options and potentially higher prices in the long run.
Ofcom’s role
Ofcom has already examined earlier versions of the discount scheme and allowed them to go ahead, saying that cheaper wholesale prices can benefit customers by encouraging more fibre take-up. However, several altnets and trade groups have asked the regulator to look again at whether the latest discounts are “anti-competitive” in areas with multiple network operators.
Consumer groups are also keeping a close eye on the issue, warning that healthy competition between networks is what drives better prices, faster rollout and improved customer service.
What it means for customers
In the short term, customers may see cheaper full fibre deals from major providers like BT and Sky as Openreach passes on wholesale savings. But over time, if smaller providers are squeezed out of the market, there could be less long-term competition and fewer local fibre alternatives to choose from.
What is Openreach?
Openreach builds and maintains the physical broadband network that connects most UK homes and businesses. It installs the fibre cables, cabinets and telephone lines used by dozens of internet providers – from BT and Sky to smaller brands like Zen, Onestream and Plusnet.
You don’t buy broadband directly from Openreach; instead, your provider pays Openreach to use its network. Other companies, such as CityFibre, Virgin Media O2 and Hyperoptic, build their own separate fibre networks – giving customers more choice and helping keep prices competitive.
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