Ofcom Blocks Openreach’s New Full Fibre Discount
The regulator has ordered Openreach to withdraw its most aggressive new FTTP offer after deciding the targeted discount could make it harder for rival fibre networks to recover their costs and compete sustainably.
Ofcom has blocked Openreach’s Incremental New to Openreach Customer Offer. The regulator concluded that the proposed wholesale FTTP charges were not fair and reasonable because a reasonably efficient rival network might be unable to match the targeted discounts while still recovering its costs. Openreach must withdraw this offer, while its other notified commercial offers can proceed without Ofcom intervening.
What exactly did Openreach want to offer?
The disputed scheme was called the Incremental New to Openreach Customer Offer. It was designed to reward broadband providers for bringing more new full-fibre customers onto Openreach’s network than an agreed baseline.
It was not a blanket price cut for every FTTP customer. The incentive applied to qualifying incremental customers — effectively additional new-to-Openreach connections above a provider’s normal level of new sign-ups.
A one-off connection rebate was included for qualifying new customers.
The monthly wholesale saving could be substantial relative to normal rental charges.
The rebate period depended on the relevant performance conditions, with a maximum of 30 months.
Openreach notified Ofcom of the offer in June 2026. It was scheduled to take effect from 1 October, but Ofcom’s final decision means this particular scheme cannot launch in the form proposed.
Why did Ofcom block the Openreach discount?
The issue was not simply that Openreach wanted to lower wholesale FTTP prices. Ofcom’s concern was the combination of Openreach’s significant market power, the size of the discount and the fact it was targeted at incremental new customers.
Because Openreach remains the dominant wholesale fixed-access network in much of the UK, it faces additional regulatory obligations that smaller fibre networks do not.
Alternative networks need to convert premises passed into paying customers. Ofcom was concerned that the Openreach offer concentrated a large discount on exactly that pool of new customers.
Ofcom concluded that the resulting margins may not allow a reasonably efficient competing network to match the pricing and recover its costs.
The regulator’s concern is that if competing fibre networks cannot reach sustainable scale, consumers could eventually have less infrastructure competition, less choice and weaker pressure on prices and service quality.
Ofcom first set out this provisional view in July, consulted the industry through August, and confirmed the decision on 28 September 2026.
Did Ofcom block all of Openreach’s new discounts?
No. Ofcom’s final statement says it is not intervening in relation to Openreach’s other notified offers. That is an important distinction: the ruling targets one specific incremental FTTP scheme rather than preventing Openreach from discounting full fibre altogether.
Openreach proposed a one-off £50 discount for qualifying incremental FTTP customers in areas where Virgin Media operates. Ofcom did not block this offer.
The proposal caps what an ISP pays on average for certain new high-speed connections, making faster packages more commercially attractive. Ofcom did not intervene.
Openreach also notified an Incremental Ethernet Net Demand Offer aimed at high-capacity business connectivity. It was not the offer Ofcom ordered withdrawn.
The decision does not amount to a general ban on Openreach’s Equinox pricing strategy or every commercial FTTP incentive.
Will Ofcom’s decision affect broadband customers?
There is no immediate change to an existing customer’s broadband package simply because Ofcom blocked this wholesale offer. The decision is primarily about the prices Openreach charges broadband providers for qualifying new FTTP connections.
The ruling does not automatically increase or reduce your current broadband price. Retail providers still set the packages and promotions customers see.
The decision reduces the risk of smaller fibre networks having to match a heavily targeted incumbent discount to win new customers.
Openreach loses this particular incentive but can still use other approved commercial offers and may propose further discounts in future.
In the short term, blocking a wholesale discount removes one route by which some ISPs might have reduced their costs. Ofcom’s position is that protecting sustainable network competition should help keep prices lower and services better over the longer term. Openreach disagrees with the premise that this particular offer would have damaged competition and says it was intended to help its customers deliver better value.
Is this the end of Openreach full-fibre discounts?
No. Openreach has said it will launch its other offers and continue competing, including its FTTP offer within the Virgin Media O2 footprint and an Ethernet offer for businesses. It has also indicated that further targeted fibre offers could be considered over the five-year Telecoms Access Review period.
The wider regulatory argument is likely to continue. Openreach wants more freedom to respond to competing networks, while altnets argue that the incumbent’s scale means aggressive targeted discounts can distort competition before newer networks have had time to establish themselves.
For more background on the network itself, see our guide to what the Openreach network is.
Ofcom blocked one aggressive Openreach offer — not all FTTP discounts
Openreach’s Incremental New to Openreach Customer Offer has been stopped because Ofcom believes its targeted pricing could make it difficult for reasonably efficient rival networks to recover their costs. The ruling does not ban Openreach from discounting FTTP generally: Ofcom allowed the company’s other notified offers to proceed, and further targeted offers may follow.
Openreach discount ruling FAQs
Why did Ofcom block Openreach’s full fibre discount?
Ofcom concluded that the Incremental New to Openreach Customer Offer was not fair and reasonable because its targeted discounts could leave a reasonably efficient rival network unable to recover its costs, potentially harming sustainable network competition.
How much was the blocked Openreach discount worth?
The offer included a £35 connection rebate and a monthly rental rebate of up to £9.50 per qualifying customer for up to 30 months, depending on the relevant conditions and performance.
Did Ofcom block all of Openreach’s new offers?
No. Ofcom directed Openreach to withdraw the Incremental New to Openreach Customer Offer but said it was not intervening in relation to Openreach’s other notified offers.
Sources checked
Ofcom’s final statement is the primary source for the regulatory decision. Ofcom’s July consultation explains the offer structure and competition concerns, while current industry reporting is used for the detailed rebate mechanics and stakeholder reaction.
- Ofcom — Statement on Openreach commercial offers, 28 September 2026 — final decision directing Openreach to withdraw the Incremental New to Openreach Customer Offer and not intervening in the other notified offers.
- Ofcom — July 2026 consultation announcement — explains the proposed offers, the £9.50 monthly discount, the £50 geographic rebate and Ofcom’s competition concerns.
- The Register, 28 September 2026 — details the £35 connection discount, monthly rebate structure and other Openreach offers allowed to proceed.
- City AM, 28 September 2026 — reports that Openreach is considering further targeted fibre discounts over the Telecoms Access Review period.
- ISPreview, 28 September 2026 — industry context, offer mechanics and Openreach/altnet reaction.
- ThinkBroadband, 28 September 2026 — independent UK broadband coverage of the final ruling.