Ofcom Extends Openreach Oversight for Five Years with Price Cap

LONDON - Britain's telecoms regulator Ofcom announced on March 17 that it will extend oversight of BT's Openreach broadband network for another five years, introducing a price cap on a broader range of connection speeds to foster competition and expand fibre access to the remaining 20 percent of the country's premises.

The decision builds on a regulatory framework Ofcom established in 2021, which has accelerated the rollout of full-fibre broadband. Access to these high-speed connections has surged from less than 25 percent of homes five years ago to nearly 80 percent today. This progress has provided about three-quarters of households with at least two provider options, typically Openreach and Virgin Media or a smaller alternative network.

Despite these gains, Ofcom determined that Openreach maintains significant market power, necessitating continued regulation to prevent monopolistic practices. The watchdog stated that fully removing controls at this stage could hinder further expansion and affordability. Under the new measures, Ofcom will impose a cap on the prices Openreach charges wholesale customers, such as Vodafone and Sky, for leasing its infrastructure. This cap will...