- Ofcom says Openreach’s proactive-upgrade FTTP pricing sits above efficient-cost ranges and will be monitored rather than blocked.
- INCA argues the decision tilts the market against alternative networks as funding tightens and roll-out risk rises.
What happened: Regulator waves through discount; altnets push back
ISPreview reports that the Independent Networks Co-operative Association (INCA) has “blasted” Ofcom’s rejection of competition complaints about Openreach’s latest full-fibre discount. Ofcom judged the offer—aimed at ISP-led proactive upgrades from copper to FTTP—to be above the cost of a reasonably efficient operator and therefore not a present threat to competition, though it will keep the scheme under review.
The stance was set out in an open letter on 9 October and aligns with the regulator’s broader access review timetable toward March 2026. INCA, which previously warned that repeated special offers risk undermining rival build economics, renewed those objections after the ruling. For context on pricing arguments from the incumbent’s side.
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Why it’s important
Price-cut “specials” can accelerate migration to fibre, but they also set powerful benchmarks in a market where Openreach is the wholesale incumbent and altnets rely on investor confidence. INCA’s concern is that repeated short-term discounts could narrow retail headroom and slow build-outs in harder-to-serve areas, especially as rates rise and consolidation looms.
Ofcom’s view is that the current offer is above efficient-cost ranges and narrowly scoped to proactive upgrades, and it has promised to gather data and intervene if harm emerges. The open question is execution: will monitoring catch displacement effects on rival take-up quickly enough, and how will any remedies interact with Ofcom’s 2026–31 framework, where high-speed product prices are largely deregulated? Investors, meanwhile, will watch churn, upgrade volumes and ISP contracting to see whether discounting boosts fibre adoption without squeezing competition out of the map.
