Ofcom pulls the plug on Openreach's aggressive fiber discount

Ofcom has rejected Openreach's plan to offer discounts to ISPs for connecting more new fiber-to-the-premises customers, claiming it would be unfair to competitors. This is the first commercial offer Ofcom has blocked, although similar ones have been allowed to proceed. Openreach, BT's network division, had proposed a £35 connection discount and up to £9.50 monthly reduction for up to 30 months for ISPs above their usual new Openreach customer numbers.

Ofcom's concern was that rivals would struggle to match the price and recover costs, particularly alternative network operators (altnets) that need customers to grow and compete with Openreach. However, Ofcom did allow Openreach's other proposed discounts, including a one-off £50 rebate for connections above an ISP's normal number in areas served by Virgin Media O2.

Altnets operate in some of these areas, but the regulator deemed the smaller discount unlikely to hinder long-term competition. Openreach remains unfazed by the decision, stating it aligns with their consultation position and will continue to engage with Ofcom and customers.