The Independent Networks Cooperative Association (INCA), the representative body of the UK’s altnet sector, has urged Ofcom to ensure that the Telecoms Access Review (TAR) secures the future of infrastructure investment and fosters regulatory consistency.
It has also called on the regulator to promote a fair and competitive landscape across all fixed telecoms markets, while providing clarity and justification on its regulatory objectives.
In its formal response to the consultation, INCA has urged Ofcom to adopt a forward-looking regulatory framework that ensures long-term private investment, recognises the crucial role altnets are playing in the full-fibre rollout in rural and hard-to-reach communities, and to ensure that future regulation does not further entrench the market power of the incumbent.
INCA has warned that designating Openreach as the default provider in areas where network competition is presumed to be unviable would be unjustified and short-sighted. It has also highlighted that Ofcom has erred in its data collection, resulting in proposals which will harm altnets in the business market.
“The TAR will set the direction of travel for UK digital infrastructure ,” said Paddy Paddison, chief executive of INCA. “Altnets have proven they can deliver gigabit networks at scale and what is now needed is a regulatory environment which supports sustainable competition and investment in every part of the market, from urban businesses to rural homes.
“There is no justification for limiting delivery in less competitive areas to a single provider. Such a decision massively underestimates the scale and success of full fibre network deployment by altnets, whose coverage has increased by 27 per cent year-on-year to reach 16.4 million premises by the end of 2024, delivering connectivity to a third of UK premises in harder to reach rural areas, and is at odds with government policy where Project Gigabit has provided public funding to altnets to build networks in precisely those locations.
“We urge Ofcom to adopt bold, evidence-based measures that support a vibrant, innovative and fair telecoms market which will benefit UK consumers and investors.”
To support the broadband sector, INCA’s submission further outlines other specific recommendations for Ofcom, including:
• Ensuring investment incentives are aligned across all markets served by the same physical networks.
• Regulating consistently across residential and business markets to ensure a level playing field for altnets in competition with BT.
• Require BT to transparently co-develop improvements to Physical Infrastructure Access (PIA) with customers.
• Ensuring that PIA asset valuations are truly representative and fair share rules are applied to Openreach as well as other PIA asset users.
• Support emerging altnets through robust wholesale pricing safeguards.
• Manage the copper-to-fibre transition in a way which supports – not undermines – altnet network deployments.