UK regulator Ofcom has confirmed new regulations for wholesale telecoms markets used to deliver broadband, mobile and business connections. Openreach's fastest full-fibre broadband services will remain free from pricing regulation as customers can select an alternative entry-level service.
Openreach will also be allowed to charge higher prices for regulated products delivered over full-fibre instead of copper, as fibre is faster and more reliable. This is designed to encourage network investment by BT and rivals to build new networks. Ofcom said it will not introduce cost-based prices for fibre services for at least 10 years, allowing companies to generate a fair return on their investments.
To avoid Openreach having to cover the costs of running two parallel network in areas where it has deployed new fibre to replace copper connections, Ofcom will progressively remove copper product regulation in these areas over a number of years. Ofcom will also review the discounts offered by Openreach to wholesale customers to prevent anti-competitive behaviour. Openreach will still be banned from offering geographic discounts on superfast broadband wholesale services, with this regulation also extended to full-fibre. The new regulations will apply to BT from April 2021 to March 2026.
