Ofcom bars Openreach's large discount scheme as unfair to rivals

The communications regulator has instructed Openreach to withdraw its proposed "Incremental New to Openreach Offer," which would have granted internet service providers a discount of up to £9.50 per new full-fibre subscriber for up to 30 months. Ofcom argued that the sizable discount could distort the market, giving Openreach an unfair edge over smaller competitors such as Virgin Media O2 and Cityfibre, who would struggle to replicate the terms profitably.

While the regulator blocked this particular scheme, it allowed Openreach to continue with other commercial initiatives, including a £50 connection rebate in overlapping areas, caps on wholesale costs for higher-speed upgrades, and waivers of certain upgrade and setup fees. Ofcom stated that these additional measures involve far smaller discounts and therefore do not pose competition concerns. The ruling comes as roughly half of UK households with full-fibre access have yet to subscribe, leaving a large pool of potential customers. Openreach has been contacted for comment.