• Virgin Media O2 challenges Openreach wholesale pricing in areas where both have full-fibre networks
• The complaint tests whether Ofcom will prioritise investment incentives or price competition in overlapping fibre areas
The Fact
Virgin Media O2 has asked Ofcom to investigate Openreach's proposed wholesale fibre discounts, arguing the pricing could undermine competition in areas where multiple full-fibre networks operate. Openreach's proposal would offer lower wholesale prices to ISPs in locations where it competes with alternative network operators.
Openreach said the discounts reflect growing competition in the UK broadband market and would encourage ISPs to migrate customers from legacy copper to full-fibre. Ofcom confirmed it is reviewing whether the proposal complies with existing wholesale access rules.
The Assessment
The dispute marks a shift in UK fibre competition. Once multiple networks serve the same postcode, operators no longer compete solely by building more lines — they compete by filling existing infrastructure. Wholesale pricing is now a battleground for customer acquisition, not just network construction.
Openreach's discount proposal is rational: it wants to win ISPs in contested areas by matching altnet pricing. But for smaller altnets, lower Openreach wholesale prices in overlapping areas could squeeze their margins and slow future investment.
For BTW readers, the regulatory question is whether Ofcom's framework was designed for a build-out phase or a mature multi-fibre market. The answer will shape wholesale pricing across the sector — and determine whether price competition rewards existing infrastructure or discourages new builds.
What to Watch
Watch for Ofcom's decision on Openreach's proposed wholesale discounts and whether the regulator requires changes before they are introduced. The decision will show how wholesale pricing is expected to support competition where multiple fibre networks already operate.