<p><strong>LONDON, October 11, 2025 &mdash;</strong> The UK communications watchdog <strong>Ofcom</strong> has ruled that <strong>Openreach&rsquo;s new fibre broadband pricing offer</strong> does not breach competition rules, easing industry concerns and paving the way for faster broadband rollout across the United Kingdom.</p>

<p>The decision follows months of consultation with rival internet service providers (ISPs), including Virgin Media O2, CityFibre, and TalkTalk, who had warned that Openreach&rsquo;s discounted wholesale pricing might create an uneven playing field.</p>

<p>After reviewing the proposed pricing model and its potential impact on the wider market, Ofcom concluded that the offer was <strong>&ldquo;pro-competitive&rdquo;</strong> and would likely <strong>benefit consumers</strong> by accelerating the deployment of full-fibre (FTTP) networks nationwide.</p>

<blockquote>
<p>&ldquo;Our analysis shows that Openreach&rsquo;s pricing structure will help make gigabit broadband more affordable while leaving room for competitors to innovate,&rdquo;<br />
said an Ofcom spokesperson in the official statement.</p>
</blockquote>

<h3>Background and Context</h3>

<p>Openreach, which operates under BT Group, is responsible for maintaining the UK&rsquo;s broadband infrastructure used by dozens of ISPs. The company&rsquo;s latest plan, known internally as the <strong>Equinox 3 offer</strong>, introduces lower wholesale prices for ISPs that commit to connecting more customers to fibre.</p>

<p>Rival network builders had claimed that these price discounts could make it harder for alternative fibre networks (&ldquo;altnets&rdquo;) to compete, arguing that Openreach&rsquo;s financial leverage and BT&rsquo;s dominant market position could lead to <strong>long-term market distortion</strong>.</p>

<p>Ofcom, however, said that after assessing <strong>cost structures, market access, and ISP choice</strong>, the proposal <strong>did not amount to predatory pricing</strong> and instead encourages uptake of ultrafast broadband in under-served areas.</p>

<h3>Market Impact</h3>

<p>Industry analysts say the ruling could <strong>boost broadband adoption</strong> among smaller providers and help the UK government meet its <strong>Gigabit Britain</strong> target of 85% nationwide full-fibre coverage by 2026.</p>

<p>&ldquo;Ofcom&rsquo;s decision removes a layer of uncertainty for ISPs and investors,&rdquo; said broadband analyst <strong>Matthew Howarth</strong> at Enders Analysis. &ldquo;It signals a clear path forward for wholesale fibre deals and consumer affordability.&rdquo;</p>

<p>CityFibre and other alternative network providers said they would <strong>&ldquo;review the decision carefully&rdquo;</strong> but urged continued monitoring to ensure that Openreach does not later use its scale to lock out competition.</p>

<h3>What Happens Next</h3>

<p>Openreach confirmed that it will <strong>proceed with the Equinox 3 rollout</strong>, offering lower wholesale prices from <strong>January 2026</strong>, with the goal of increasing full-fibre take-up among both urban and rural providers.</p>

<p>The decision is also expected to <strong>encourage further investment</strong> in fibre network expansion and reduce costs for consumers as broadband providers compete on pricing and speed.</p>

<p>The UK government welcomed the ruling, emphasizing that <strong>faster, more reliable internet</strong> is crucial for small businesses, education, and digital public services.</p>

<blockquote>
<p>&ldquo;Affordable broadband is essential for economic growth,&rdquo; said <strong>Digital Infrastructure Minister Eleanor McCarthy</strong>. &ldquo;This ruling ensures competition thrives while bringing better connectivity to millions.&rdquo;</p>
</blockquote>

<p>While some smaller ISPs remain cautious, most agree that Ofcom&rsquo;s findings provide <strong>regulatory clarity</strong> &mdash; a crucial factor for long-term digital infrastructure investment.</p>