Ofcom has published new proposals to help improve competition and investment in full fibre connections as part of the Telecoms Access Review (TAR).
Building on its initial regulatory framework introduced in 2021, Ofcom has set out the new proposals that will help provide fast and reliable broadband to people and businesses nationwide.
“The roll out of full fibre across the UK is a British infrastructure success story,” said Natalie Black, Ofcom’s group director for networks and communications. “Four years ago, less than a quarter of UK homes and offices had access, and it now stands at nearly seven in 10.
"But we do not take this momentum for granted and today, we are setting out how we can work with the sector to finish the job.”
Industry investment in the rollout has ranged between £3 billion and £6 billion each year, with around seven in 10 premises (69 per cent or 20.7 million) now having access to full fibre, while coverage of gigabit-capable networks has increased from 11.6 million premises (40 per cent) in 2021 to 25 million (83 per cent) last year. For customers, more than seven in 10 premises can now choose between two or more different broadband networks.
Ofcom has collated the latest data from telecoms companies, which shows that full fibre coverage could reach 96 per cent by 2027 with the right regulation and support.
Despite the progress that has been made, Ofcom said that it recognised further investment was still needed for the final push of the rollout.
The regulator said that while competition from new broadband networks was developing, it will take time to become sustainable, as new entrants strive to build their customer base and achieve scale. Attracting customers to move from legacy networks to full fibre, it said, was key to the success of all providers, and take-up was steadily increasing.
To help maintain industry momentum and support further rollout, Ofcom has set out how it proposes to regulate the wholesale broadband markets from 2026 to 2031 as part of TAR.
Building on the 2021 regulations, the regulator said that its proposed framework will provide stability and clarity for the market, promote fair and sustainable competition and, ultimately, help ensure the availability of full-fibre broadband across more UK villages, towns and cities.
Ofcom’s proposals include:
- Promoting competition. Reflecting the greater-than-expected level of new infrastructure build, Ofcom proposes to identify more of the UK as having competition between broadband networks, or the potential for it. Under its plans, competitors will continue to have access to Openreach’s ducts and poles, so they can roll out their new full fibre networks and connect customers quickly and at a lower cost than digging themselves. It also proposes strengthening its rules around Openreach’s wholesale deals and discounts, so that it cannot unfairly stifle competition.
- Fibre roll-out for rural Britain. In the most rural or remote parts of the country where investment in new networks is less commercially attractive, Ofcom will focus on promoting full fibre build by Openreach. Separately, where Openreach is unlikely to face competition, it’s also proposing new backstop standards around the speed and quality of repairs and installations for full-fibre services.
- Protecting customers. While network competition develops, Ofcom will protect consumers by capping the nominal price that Openreach can charge retail providers – such as Sky or TalkTalk – for download speeds up to 80Mbps, rather than 40Mbps at present. The prices of higher-speed products will still be free from regulation, so Openreach and other providers retain the incentive to invest in better networks.
- Closing the copper network. Ofcom supports a smooth transition from old copper lines to fibre. It said that Openreach shouldn’t have to incur unnecessary costs for running two networks at the same time, and it will also begin to close redundant telephone exchanges over the coming years.
- Going beyond 2031. Ofcom expects to continue its approach of supporting investment and competition if it’s still emerging in five years’ time. If there is a need to set price controls on Openreach in the future, over time, it said that the company would have the opportunity to earn a return above the cost of its investment. After 2031, if effective competition has developed, Ofcom said that there will be no need for it to regulate further.
Ofcom’s proposals are open for consultation until 12 June 2025. It intends to publish its decisions in March 2026 before the current rules expire at the end of that month.
Mark Shurmer, managing director for regulation at Openreach, said, “As a country, we need to promote incentives to invest in projects which drive economic growth. Ofcom’s last review stimulated increased investment, stronger competition and better service outcomes for customers and that’s why it’s vital this one delivers the certainty and stability we need to continue investing in broadband upgrades across the UK. At first glance, these proposals offer broad continuity, but we’ll be engaging closely with Ofcom on the details, to make sure the rules continue to prioritise investment, growth and customer satisfaction throughout the country.”
Greg Mesch, CEO of CityFibre, added, “Ofcom’s Telecoms Access Review marks yet another major milestone in creating a sustainable competitive market. By supporting wholesale network competition, Ofcom is helping to drive better services, greater choice, and lower prices for consumers and businesses, while unlocking economic growth across the country.
“CityFibre has been at the heart of this transformation, delivering the competition that fuels innovation and investment. We fully support Ofcom’s direction and look forward to working together to ensure the UK benefits from a thriving, sustainable digital infrastructure market.”