Ofcom Challenges BT Openreach Pricing Strategy to Protect Competition
Ofcom says the monthly discount could weaken rival broadband networks and keep prices low only in the short term.
- On Tuesday, Britain's telecoms regulator Ofcom proposed blocking a new BT Openreach discount scheme, marking the first time the watchdog has moved to stop a commercial deal from the network arm.
- Ofcom concluded the pricing was "not fair and reasonable" and risked harming competition in a wholesale full-fibre market that is still developing.
- The scheme offered internet service providers up to £9.50 off per customer monthly for up to 30 months, targeting marginal customers that smaller rivals like CityFibre and Hyperoptic depend on for growth.
- Openreach Managing Director for Commercial James Lowther stated they "disagree with Ofcom's analysis," while Virgin Media O2 welcomed the proposal but urged tougher regulatory action.
- Ofcom will consult on the proposal until August 27, with a final decision expected by late September, establishing the regulator's willingness to intervene in Openreach's commercial pricing.
13 Articles
13 Articles
Ofcom moves to block Openreach fibre discount for first time
Ofcom proposed on Tuesday to block a discounted wholesale offer from Openreach, the first time the regulator has ever moved to stop a commercial deal from BT’s network arm. The offer would have given internet providers up to £9.50 off per customer per month, for as long as 30 months, when they connected more new […] This story continues at The Next Web
UK Regulator Ofcom Moves to Block BT Openreach Network Discount
The UK’s communications regulator has moved to block an “aggressively discounted” offer from BT Group Plc’s wholesale broadband subsidiary, Openreach, for the first time, citing competition concerns.
Major broadband shake-up could completely change how Sky, TalkTalk, Plusnet, and BT tempt you to switch
BT-owned Openreach, which maintains the largest broadband network nationwide, could be forced to withdraw a heavily discounted offer aimed at onboarding new customers to its full-fibre cables — and it could have serious consequences for the discount and deals designed to tempt you to switch brands. Ofcom has ruled the offer from Openreach was "not fair and reasonable" and could damage competition from other broadband network providers. The watch…
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