Openreach’s CEO Clive Selley has called on government and Ofcom to require Virgin Media 02 and other network providers to shares access to their duct and pole networks on the same terms as its own products, including on pricing.
Writing in a document entitled ‘A blueprint for continuing success in the UK’s telecoms market’, Selley said that while big strides had already been made in its rollout, investment in full fibre needed to continue for the rest of the decade as the build extends to the more challenging and costly parts of the UK and the industry connects customers to the new networks.“The UK’s fixed telecoms sector is a success story,” wrote Selley. “As an industry, we’re bucking the trend of underinvestment and disappointing outcomes in many regulated sectors – with an unprecedented wave of competitive private sector investment.
“Millions of UK homes and businesses can now access ultrafast, ultra-reliable, full fibre broadband services, and these new networks are being extended at a world leading pace. This investment will help drive UK economic growth and support government objectives. Meanwhile broadband prices have fallen in real terms and average speeds are increasing as a fiercely competitive market delivers compelling choices and quality to customers throughout the country.
“This digital revolution is a growth engine for our economy. And it’s been achieved thanks to a stable public policy and regulatory environment that’s given encouragement and long-term certainty to investors – as well as a level-playing field for fair competition.”
Ofcom’s Wholesale Fixed Telecoms Market Review (WFTMR), which took effect on 1 April 2021, delivered a five-year package of rules that the regulator said would endure for at least ten, assuming the outcomes were as expected. It also made clear that “full fibre must be a fair bet” for investors over the longer term. This was crucial, given the risk and long paybacks involved in big infrastructure investments.
“Fast-forward to today and more than 150 companies are now using our ducts and poles to build competing networks and we’ve made full fibre available to more than 15 million premises nationwide off our own back,” wrote Selley. “We’re reaching a further one million properties every three months, and we’re on track with our ambition to reach 25 million by the end of 2026. In fact, Ofcom expects 96 per cent of the UK could have access to full fibre by 2027, compared with just two per cent in 2016.”
Despite this, Selley said that the job wasn’t done yet, with investors yet to see if their big bets will pay off.Ofcom’s Telecoms Access Review will now reassess and re-set the rules for another five years (from 1 April 2026).
“It’s vital that Ofcom protects the certainty and stability the WFTMR delivered,” wrote Selley. “As a country, and now more than ever, we need to promote and maintain incentives to invest to help super charge UK economic growth. That includes the opportunity to realise the kind of returns that make massive infrastructure investments viable.“It is ultimately UK consumers who will benefit from this investment and increased competition, so Ofcom should reject self-interested calls from some parts of the industry to restrict how Openreach competes. Because it’s clear that would lead to higher prices, weaker competition and a dilution of choice for consumers and businesses. In fact growing competition presents the opportunity to roll back regulation in many areas.
“Given the thriving competition that’s evident today, we believe Ofcom should seek opportunities to complete the framework by addressing the challenges of moving to a full fibre world. For example, by supporting a drive for efficiency and enabling Openreach to retire legacy buildings and services where modern alternatives exist. Quality of Service standards must also evolve to reflect the positive shift from copper to fibre.”
He added, “A bright, full fibre future is in sight, where vibrant wholesale and retail markets offer brilliant value and choice. This will drive upgrades and benefits for all – with the strongest outcomes allowing fair competition to play out, on the merits, between all network providers.”
A Virgin Media O2 spokesperson said, “The ability to use Virgin Media’s ducts on a commercial basis already exists, but Openreach has significant market power in the UK and a footprint that covers almost all of the country, so it is right that it remains appropriately regulated to ensure it cannot use its monopolistic muscle to constrain emerging competition. Virgin Media O2 and others are building fibre to increase network choice in the UK and it’s important that Ofcom supports these investments so that truly scaled competition can be realised in future. Calling for regulatory intervention on others who are building alternative networks is a worrying and diversionary tactic that Openreach has used before with no success.”