• BT’s broadband wholesale division Openreach is pressing regulator Ofcom to ‘relax’ some rules that will help its ongoing FTTP investment case
• INCA, the industry body that represents the UK’s fibre broadband altnets, claims Openreach is running scared of growing competition 

The Independent Networks Cooperative Association (INCA), the trade body that represents the UK’s broadband altnets, claims the latest call from BT Group’s quasi-autonomous wholesale fixed access division, Openreach, for more regulatory relaxation is a sign that it’s suffering increasing competitive pressure from its altnet rivals. 

Clive Selley, the CEO of Openreach, noted last week that the BT division might only bother expanding its fibre-to-the-premises (FTTP) network beyond the 25 million properties it is expected to reach by the end of 2026 if regulator Ofcom doesn’t ‘relax’ its current regulatory environment as part of its Telecoms Access Review (TAR), which is due next year. 

Those comments from Selley came as BT provided a financial and operational update for the first half of its FY26 financial year, which ends in March next year. You can read about the UK national telco’s financial performance here: Its operational data showed that Openreach, while continuing to add FTTP wholesale lines, reported a reduction in the total number of fixed broadband lines in operation (FTTP and legacy) of 242,000, “driven by losses to competitors and a weaker broadband market”. 

Openreach ended September with a fixed broadband network that reaches 31.3 million UK premises, of which 20.3 million are passed by a fibre line. 

Of that total, just under 19.7 million fixed broadband lines are currently being used by Openreach’s retail ISP customers, of which 10.6 million were VDSL lines (copper connection to the premises), about 1.4 million were ADSL lines (copper connection) and 7.65 million were fibre lines.  

Both flavours of copper connections are in terminal decline, while the number of FTTP lines in operation grew by more than 1.1 million during the first half of the current fiscal full year (April to September). 

In comments emailed to the media about the potential that Openreach might scrap the final phase of its fibre rollout due to Ofcom’s draft TAR proposals, INCA’s CEO, Paddy Paddison, stated: “Openreach’s problem isn’t regulation – it’s competition. Nearly 1 million customers a year are choosing altnets over the tired old network operator because they offer better products, better value and better service. That’s what a functioning market looks like.” 

Paddison continued: “Investors are backing altnets because they see innovation and delivery, not dependency on regulatory favours. The danger is that Ofcom confuses BT’s investment interests with the UK’s investment interests. The success of the broadband rollout depends on maintaining competition, not cushioning the incumbent.” 

With the bit (or is that byte?) between his teeth, the INCA CEO added: “Openreach’s threats to reduce investment say more about its struggle to compete than about the regulatory framework itself. The best way to serve consumers and investors alike is to protect the diversity of networks that are already driving real progress. If Openreach cannot compete on a fair playing field for all, the regulator should not be forced to help them out. Last time Openreach refused to invest, it opened the door to altnet investment, a move that has since delivered more than 16 million full-fibre homes across the UK.” 

And if Openreach decides Ofcom’s rules do not make it financially worthwhile for it to extend its fibre access reach beyond 25 million premises, the altnets want to know where they can build without fear of Openreach competition. 

INCA’s Paddison has challenged Openreach to identify the areas in which it might not roll out its fibre access infrastructure so that altnets can plan to invest in those areas without any concerns about overbuild (knowing full well that Openreach will not be sharing any such information with its rivals). 

Expect plenty more sparring in the UK FTTP market over the next year in the run up to Ofcom’s review and as the bigger players in the market mull their M&A opportunities. The latest speculation is that major altnet Netomnia is being considered as an attractive takeover target by Virgin Media O2 and CityFibre, all of which are rivals to Openreach in the UK’s FTTP wholesale market. 

- Ray Le Maistre, Editorial Director, TelecomTV