Openreach notified Ofcom of a new wholesale pricing arrangement for its full-fibre services (Equinox 2) in December 2022, in accordance with Ofcom’s rules which require the regulator to be notified and able to assess certain offers before they come into effect.
The offer gives lower prices to retail providers – such as BT, Sky, TalkTalk and Vodafone – if they agree to use mainly Openreach’s full-fibre products for new orders instead of its legacy copper products.
A decision was originally expected in March this year, but was delayed following a detailed consultation.
Today, Ofcom has confirmed that it will not prevent Equinox 2 from being introduced after careful assessment of evidence including responses to its public consultation.
In reaching its view, the regulator said it considered the impact on citizens and consumers, alternative networks (altnets), ISPs and Openreach, coming to the conclusion that the pricing plan will ultimately deliver ‘better consumer outcomes’, promote network-based competition and won’t create a barrier to using altnets.
“Our overriding objective is to bring better broadband to people across the UK, by promoting competitive investment in high-speed networks and making sure there’s a level playing field for all companies,” said an Ofcom spokesperson.
“With this in mind, and based on the evidence available to us, we don’t consider Openreach’s new pricing discounts to be anti-competitive.”
Ofcom said it had considered the level of prices under Equinox 2, and concerns among some market participants about Openreach’s practice of discussing and developing discounts with retail providers.
“Having carefully assessed information from providers and altnets, we do not have concerns that warrant further investigation at this time,” the regulator concluded in a statement.
According to Ofcom, Openreach has confirmed that – in response to concerns raised – it plans to make certain commitments regarding its future conduct, including not having any current plans to change its Equinox 2 rental prices and no intention to initiate further changes until at least 31 March 2026.
This may provide further clarity for altnets and their investors, Ofcom said, however it stated that it has not relied on these commitments in reaching its conclusion.