- Nexfibre urges Ofcom to support fibre consolidation.
- Company criticises BT’s pricing tactics and anti-competitive behaviour.
What happened: Nexfibre urges Ofcom to support M&A and regulate BT’s practices
Nexfibre, a UK fibre builder aiming to challenge incumbent players like BT, has submitted its report to Ofcom ahead of the 2024 Telecoms Access Review. The report, titled “UK Fibre: A Fork in the Road,” outlines Nexfibre’s key recommendations to the regulator, focusing on its belief that consolidation within the fibre sector is crucial for fostering sustainable competition.
Specifically, Nexfibre advocates for Ofcom and the Competition and Markets Authority (CMA) to avoid imposing a minimum number of competing networks and instead support mergers and acquisitions in the market. The UK fibre market has already seen some consolidation, with companies like CityFibre and Nexfibre itself acquiring smaller competitors.
Nexfibre’s report highlights the significant challenges posed by rising interest rates, which have slowed fibre rollouts, and it warns that smaller players will struggle without consolidation. Additionally, the company calls on Ofcom to regulate BT’s Openreach division more rigorously, claiming its pricing practices are stifling competition.
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Why it’s important
Nexfibre’s push for mergers and acquisitions to address competition in the UK’s fibre market is a pivotal moment in the country’s broadband rollout. By calling for more flexible regulation and advocating for consolidation, Nexfibre aims to level the playing field and ensure that smaller, cash-strapped altnets can survive in a highly competitive market.
The company’s report also takes aim at BT’s pricing tactics, arguing that they create barriers for new market entrants and harm competition. With Ofcom’s upcoming review potentially shaping the future of UK fibre networks, the decisions made in this regard could influence the pace of infrastructure expansion and market dynamics for years to come.
This report is crucial for the future of the UK fibre market, as it highlights the growing concerns among fibre builders about the sustainability of the current competitive landscape. The outcome of Ofcom’s review, especially with respect to the regulation of BT, will have a lasting impact on how fibre infrastructure develops and who will dominate the market moving forward.
