Telecommunications regulator Ofcom has revised its wholesale rules to accelerate the rollout of full-fibre broadband across the UK.
Full-fibre broadband was a central promise of the previous government, but plans were delayed by the disruption caused by the COVID-19 pandemic. With successful vaccine distribution enabling a cautious easing of restrictions, attention has turned to rebuilding and strengthening the economy and public services. One clear lesson from the pandemic is the vital importance of reliable connectivity, and Ofcom says it is taking steps to help speed up deployment of both full-fibre and 5G networks.
Dame Melanie Dawes, Chief Executive of Ofcom, said:
“Over the past year, being connected has never mattered more. But millions of homes are still using the copper lines that were first laid over 100 years ago. Now it’s time to ramp up the rollout of better broadband across the UK. We’re playing our part – setting the right conditions for companies to step up and invest in the country’s full-fibre future. This is a once-in-a-century chance to help make the UK a world-leading digital economy.”
In its update, Ofcom has chosen not to impose a price cap on Fibre-to-the-Premises (FTTP), commonly known as “full-fibre”, when supplied by Openreach, BT’s wholesale arm that operates the bulk of the nation’s fibre infrastructure. The regulator’s approach aims to encourage long-term investment by giving providers confidence to commit capital toward expanding fibre networks.
Kester Mann, Director of Consumer and Connectivity at CCS Insight, welcomed the decision:
“This crucial ruling is a huge boost for the deployment of full-fibre broadband that will benefit millions of UK homes and businesses for years to come. It comes at a time when the value of connectivity has never been more appreciated as the pandemic triggers a major change in how people live and work. The UK’s over-reliance on using dated copper lines for 21st-century connectivity has held back its aspirations to become a world-leading digital economy. Today’s news sets fresh conditions to help accelerate full-fibre broadband deployment to help it move out of the slow lane.”
BT had been waiting for Ofcom’s ruling before committing to a planned £12 billion investment in full-fibre roll-out. Following the announcement, BT signalled it would ramp up its build efforts significantly.
The decision has drawn criticism from some quarters, with concerns that granting relatively unrestricted terms to an already dominant player could reduce competition and potentially raise prices for consumers in the long run. Ofcom recognises this tension and says it has sought a balance between encouraging large-scale investment and protecting competition in wholesale markets.
Mann added: “The news may not be so appreciated among service providers that rely on Openreach and other infrastructure. But this was always a delicate decision for the regulator which had to tread a fine line between encouraging long-term investment and maintaining fair competition. It may have got it about right.”
Dame Dawes has denied the move is anti-competitive. Speaking on BBC Radio 4’s Today programme, she said the aim is to give BT a fair chance to invest while fostering competition at the wholesale network level in a new way.
Meanwhile, prices for Fibre-to-the-Cabinet (FTTC) services—which use fibre to the cabinet but rely on existing copper for the final connection to homes and currently account for the majority of UK broadband connections—will remain capped. That means most consumers on FTTC plans, typically offering speeds up to around 40 Mbps, should not see major changes in cost.
Ofcom is also permitting Openreach to retire FTTC services in areas where FTTP is available. The regulator says such switches must be carried out progressively and that customers will be protected so they continue to have access to reliable internet services. The intention is to create incentives for consumers and providers to move toward full-fibre adoption.
In addition to the wholesale rule changes, Ofcom recently concluded its 5G spectrum auction after a delay caused by the pandemic. Together, these regulatory steps are designed to establish a stable environment that encourages investment in next-generation digital infrastructure.
If correctly implemented, Ofcom’s measures could provide the regulatory foundation needed for the UK to accelerate full-fibre deployment, expand 5G coverage, and strengthen its position as a leading digital economy as the country rebuilds after the pandemic.
(Photo by CHUTTERSNAP on Unsplash)
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