Particle.news

Ofcom Proposes Blocking Openreach New‑Customer Discount

The regulator says the targeted rebate could squeeze rival fibre builders and has opened a consultation that could set a precedent for curbing Openreach’s wholesale pricing.

Overview

  • Ofcom on Tuesday issued a provisional finding that Openreach’s “New To Openreach” monthly rebate is “not fair and reasonable” and launched a consultation running to 27 August with a final decision expected by the end of September.
  • The offer would have given ISPs up to £9.50 per new full‑fibre customer for up to 30 months when they sign customers onto the Openreach network.
  • Ofcom says the rebate specifically targets new customers that alternative network providers rely on, and that matching the discount could prevent rivals from recovering build costs and weaken long‑term competition.
  • Openreach said it was disappointed and disputes the regulator’s analysis, while rival operators including Virgin Media O2 and Nexfibre welcomed the move but urged Ofcom to examine the combined effect of multiple offers.
  • If confirmed, the intervention would be the first time Ofcom has blocked a commercial offer from Openreach and could influence how wholesale price incentives are used during the full‑fibre rollout, even though Ofcom has provisionally cleared other geographic and speed‑related discounts.