{
  "id": 10459854,
  "title": "Openreach eyes further fibre discounts after Ofcom blocks price cut",
  "url": "https://urgent.news/2026/09/28/openreach-eyes-further-fibre-discounts-after-ofcom-blocks-price-cut",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-28T14:13:34.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/openreach-eyes-further-fibre-discounts-after-ofcom-blocks-price-cut/"
  },
  "original_language": "en",
  "account": "Openreach, BT's network, is contemplating additional targeted fibre discounts within the next five years following Ofcom's refusal to approve its most aggressive price cut attempt, according to City AM. The telecommunications provider stated that it remains receptive to competition across various regions after the regulator approved a £50 rebate for new full-fibre customers in areas serviced by Virgin Media O2. Openreach spokesperson explained that they anticipate launching more offers during the five-year span of the Telecoms Access Review (TAR) framework, which governs fixed telecoms market rules from April 2026 to March 2031. The regulator designed the TAR framework to remain flexible and adaptable as competition evolves, leaving open the possibility of approving additional discounts within the TAR period.\n\nOpenreach originally proposed an \"Incremental new to Openreach customer offer,\" offering a £35 connection rebate and up to £9.50 in monthly discounts per customer. However, Ofcom rejected the proposal, arguing that it was not \"fair and responsible\" due to concerns that rival networks may struggle to match the prices while recovering their costs. Ofcom raised these concerns about the proposal under the new TAR rules back in July. Nevertheless, they cleared Openreach's other proposals, including the £50 rebate in Virgin Media O2 areas, leaving room for more geographically targeted competition.\n\nAccording to Enders Analysis estimates, Openreach's underlying full-fibre costs are approximately £13 to £14 per customer per month, which is significantly lower than its estimated average fibre revenue of around £19. The company's spokesperson told City AM that while they cannot confirm the actual fibre costs, Openreach strives to pass the benefits of their cost-efficiency to end customers. Ofcom currently evaluates Openreach's discounts against the economics of a hypothetical \"reasonable efficient\" rival network estimated at around £17.41 per month by Broadband Genie strategists. While this restriction might temporarily limit Openreach's ability to cut average prices nationwide, the analyst argued that the situation could change as competing networks mature.\n\nOfcom permitted Openreach's £50 rebate in the Virgin Media O2's footprint after determining that the smaller discount was unlikely to negatively impact long-term competition. However, Openreach does not sell broadband directly to households, meaning that wholesale discounts may not directly translate into cheaper bills for consumers. Alex Tofts, a Broadband Genie strategist, noted that Ofcom is now tasked with striking a balance between supporting emerging fibre networks and maintaining low prices. The challenge lies in ensuring that this intervention does not inadvertently lead to increased costs during a cost-of-living squeeze.",
  "summary": "Openreach is considering further targeted fibre discounts over the next five years after Ofcom blocked its most aggressive attempt to cut wholesale prices, the BT-owned network told City AM. The broadband giant said it remained open to competition in different parts of the country after the regulator approved a separate £50 rebate for new full-fibre [...]",
  "key_points": [
    "Openreach considers further fibre discounts over next five years",
    "Ofcom blocks Openreach's £35 connection rebate proposal",
    "£50 rebate approved for Virgin Media O2 areas"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}