Ofcom has today directed Openreach to withdraw a wholesale offer that would have given internet service providers a discount of up to £9.50 per customer per month, for up to 30 months, for bringing new full-fibre customers onto its network.
The final decision confirms the regulator’s provisional position from July and marks the first time Ofcom has stepped in to block a commercial offer from BT’s network business. Ofcom cleared the other offers Openreach notified in June, including a separate discount in Virgin Media areas and an Ethernet offer aimed at business connections.
The Incremental New to Openreach Customer Offer applied only to new customers above an ISP’s normal number of sign-ups. Retail providers that sell over Openreach’s lines, including BT, EE and TalkTalk, will not now receive the discount.
In a statement reported by the Press Association, Ofcom said: “We have determined that the large discount involved, up to £9.50 per customer for up to 30 months, may mean that other reasonably efficient operators couldn’t match it while also recovering their costs.
“In addition, the offer is aimed exclusively at new customers, so could stymie alt nets’ ability to scale up their customer base at a time when around half of households that have access to full-fibre broadband are yet to sign up.”
The regulator added: “For these reasons, we consider the offer would be unfair and could harm sustainable competition, which is essential for low prices and better services in the long run, as well as helping to power the UK’s growth and productivity.”
In its published decision, Ofcom said that because of Openreach’s significant market power, the company was uniquely able to make such a targeted low-price offer, while leaving prices for other customers unchanged.
Ofcom said it was not intervening in Openreach’s other notified offers, which carry smaller discounts. According to the regulator’s consultation announcement in July, these include a one-off £50 discount on new full-fibre customers above an ISP’s usual sign-ups in areas where Virgin Media operates.
A Frontbook ARPU Share Offer caps what an ISP pays on average for new high-speed connections at £19.32 per month, Ofcom said. That offer, along with a Box Swap Offer, began on 1 July. Ofcom also cleared an Ethernet Net Demand Offer and an expansion of the area covered by Openreach’s existing Equinox discounts.
Ofcom opened its consultation on the offers on 28 July, and it closed on 27 August. The review sits under the rules set out in Ofcom’s Telecoms Access Review for 2026 to 2031, which retained restrictions on certain Openreach discounting practices and lengthened the notice period for its offers.
When the proposal was published in July, Natalie Black, Ofcom’s group director for infrastructure and connectivity, said: “Openreach must be able to compete, but they cannot use their significant market power to drive other networks out of the market.”
James Lowther, Openreach’s commercial managing director, said: “Ofcom’s decision not to approve our incremental FTTP new to Openreach offer is in line with their consultation position. We put this offer forward in good faith to help our customers compete and deliver better value for households.
“While we continue to believe the offer would have benefited customers and competition, we’ll review the decision carefully and continue to engage constructively with Ofcom and our customers.
“We’ll launch our other offers and continue to compete fairly, including our FTTP offer within the VMO2 footprint and an ethernet offer for businesses.”
The decision comes as full-fibre coverage expands across the UK, with competing networks building in the same towns alongside Openreach.
Alex Tofts, strategist at comparison site Broadband Genie, said: “While blocking Openreach’s wholesale discounts might seem counter-intuitive, denying major retail providers the opportunity to pass on immediate savings, it lowers the risk of squeezing out independent altnets that drive long-term competition.
“Consumers rely on real market choice. Independent providers operating outside the Openreach footprint frequently lead the way on speed, pricing, and customer service compared to well-known providers.”
He added: “The key challenge now, is ensuring this intervention doesn’t inadvertently drive up bills during a cost-of-living squeeze. History shows that Ofcom’s interventions can easily backfire on the very customers they’re meant to protect.”
