Openreach wants Reg readers to know that the UK's fixed telecoms market is coming along just fine, and is imploring regulators to not spoil it by, for example, listening to what competitors say.

As the infrastructure arm of Britain's former state-owned telecoms monopoly BT, Openreach continues to upgrade the network in line with government goals, aiming to roll out fiber broadband to 25 million premises by the end of 2026.

Regulator Ofcom's Wholesale Fixed Telecoms Market Review (WFTMR), which took effect on 1 April 2021, delivered a five-year package of rules which it hoped would extend for at least five more if outcomes were proceeding as expected.

However, Ofcom is now conducting a (Telecoms Access Review 2026) and is asking for industry input before setting rules for the next five years starting April 2026.

Hence, Openreach is publishing its views about what should happen with the future of Britain's broadband infrastructure in a report entitled "A blueprint for continuing success in the UK's telecoms market" [PDF].

For its part, the operator says the WFTMR isn't just working, it's working better than expected for the UK, as millions of UK homes and businesses can now access "ultrafast, ultra-reliable" full fiber broadband services, and these new networks are being extended "at a world leading pace."

Looking beyond 2026, the report claims investment in infrastructure will continue, so long as there is stability and certainty.

Openreach also expects that investment will come in the form of consolidation, which it claims is "considered inevitable" by many industry commentators, and says "companies still need to invest heavily to connect customers as the orders come in, so it doesn't just stop when the build stops."

We assume the latter is a reference to the fact that simply cabling out neighborhoods doesn't solve anything, unless network plumbers actually make the last part of the connection to subscribers' premises.

The company also says that retail providers - internet service providers (ISPs) - will "work with network providers to build compelling propositions and packages that drive greater adoption, improve customer satisfaction and retention, and expand long-term opportunities to increase customer value."

Could Openreach be referring here to its own Equinox 2 discount pricing scheme, which offers ISPs incentives to get them to push new subscribers towards fiber broadband when they sign up?

This has proved controversial, especially among alternative network providers (altnets) who claim it would give Openreach an unfair advantage in winning new customers, as the discounts would dissuade ISPs from using altnets when putting new subscribers on fiber connections.

Ofcom, however, sided with the incumbent and allowed it to go ahead with the Equinox 2 discount pricing scheme, despite objections from the smaller network operators that it allowed the dominant player to undercut them.

One of the company's new asks is that Ofcom "should reject self-interested calls from some parts of the industry to restrict how Openreach competes," which to our mind sounds like a call to allow Openreach to continue with the discount schemes, despite any protests. We asked Openreach what was meant by this and a spokesperson said:

The spokesperson also confirmed that "Previous opposition to Equinox 2 is an element in all of this," although they said it was "worth remembering that this is not so much a pressing issue following Ofcom's decision last year, that 'Equinox 2 is consistent with promoting investment in gigabit-capable networks by Openreach and other operators and promoting network-based competition, ultimately delivering better consumer outcomes."

Openreach's chief also made a further dig at rivals, with Selley stating its own network of poles and ducts has been open for other network providers to access since 2011, but claiming the same can't be said for others.

"Ofcom and Government should also require Virgin Media O2 (VMO2) and others to open up their duct and pole networks on the same transparent terms including price as Openreach's duct and poles product," Selley opined when announcing the company's blueprint.

In response, a spokesperson for VMO2 told us: "The ability to use Virgin Media's ducts on a commercial basis already exists, but Openreach has significant market power in the UK and a footprint that covers almost all of the country, so it is right that it remains appropriately regulated to ensure it cannot use its monopolistic muscle to constrain emerging competition."

Going further, VMO2 said it and others are building out fiber to increase network choice in the UK and "it is important that Ofcom supports these investments so that truly scaled competition can be realised in future. Calling for regulatory intervention on others who are building alternative networks is a worrying and diversionary tactic that Openreach has used before with no success."

VMO2 announced plans in February to open its fixed line broadband networks by handing them over to a newly formed subsidiary intended to eventually form a rival to Openreach in the nationwide infrastructure provider stakes.

The blueprint document also has suggestions for how the UK government could support broadband growth. Openreach claims it typically applies for 300,000 permits a year to local councils across the country in order to deliver upgrades on a street-by-street basis.

This could be made more efficient by allowing flexi-permitting, reducing permit processing by up to 90 percent, the company reckons. The model could subsequently be used to support the roll-out of on-street electric charging solutions, it says.

Openreach is also advocating for legislative amendments to grant it automatic upgrade rights to fit high-rise apartment block buildings with fiber. Currently, it can use existing access rights to maintain the copper network in these buildings, but not to upgrade them, it claims.

Ofcom expects to kick off its main consultation on proposals for changes to regulation early next year, and aims to make public its final decisions in early 2026. ®

https://www.theregister.com//2024/09/09/openreach_review_ofcom_prep/