- Virgin Media O2 has asked Ofcom to block Openreach fibre wholesale discounts, arguing they could weaken network competition.
- Openreach says the offers will help broadband providers compete and move more customers to full-fibre services.
The Facts
Virgin Media O2 has called on Ofcom to stop a series of wholesale fibre offers from Openreach. CEO Lutz Schüler said the related discounts could encourage broadband providers to place more customers on the Openreach network. VMO2 claims some packages could be worth the equivalent of two years of free fibre line rental.
Openreach says the offers will help providers compete and move customers to full fibre. The proposed discounts apply to customer gains above a provider’s current baseline. One offer targeting areas covered by VMO2 is scheduled to start in October, but requires Ofcom’s approval before implementation.
Assessment
Wholesale fibre networks need broadband providers to connect customers through them. Virgin Media O2 argues that Openreach’s discounts could make providers less likely to use competing networks. Lower wholesale prices could help providers compete for retail customers and encourage more households to move to full fibre. Ofcom must now judge whether the terms represent normal price competition or make it difficult for competing networks to win wholesale business under 2026–31 rules.
For BTW readers, fibre coverage only generates wholesale revenue when providers use it for customer connections. Openreach can apply discounts across a much larger footprint, while competing networks still need sufficient take-up in the areas they have built.
What to Watch
Watch for Ofcom’s response to the geographically targeted offer and any changes to its duration, eligible areas, or volume conditions. Ofcom’s decision will determine whether the package can start in October under new market rules.