Ofcom blocks ‘unfair’ Openreach pricing scheme
The communications regulator has blocked Openreach’s new pricing scheme, arguing the proposed charges were “unfair” and granted it an unfair advantage over competitors. Ofcom has ordered Openreach, a fibre broadband network, to withdraw its ‘Incremental New to Openreach Offer’. The offer would have provided internet service providers (ISPs) a monthly discount for bringing new full-fibre [...]
Ofcom, the UK communications regulator, has blocked Openreach's proposed pricing scheme, deeming it "unfair" and granting the company an unfair advantage over competitors. The "Incremental New to Openreach Offer" would have provided ISPs with a monthly discount of up to £9.50 per customer for up to 30 months, which Ofcom argued could undermine sustainable competition.
The regulator's decision comes after Openreach proposed additional commercial schemes, including a £50 connection rebate for signing up new full-fibre customers in areas overlapping with Virgin Media O2's network base, a cap on the average monthly wholesale costs ISPs pay Openreach, and waiving upgrade fees and setup connection fees for ISPs.
Ofcom stated that these proposals do not raise competition concerns and that Openreach will continue to compete fairly while investing in the UK's digital infrastructure.
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