The UK telecom regulator Ofcom has launched a formal review of new wholesale pricing proposals submitted by Openreach for full-fibre broadband (FTTP) and Ethernet connectivity services. The proposed changes, scheduled to take effect from October 1, 2026, are subject to regulatory scrutiny because Openreach holds Significant Market Power (SMP) in the UK’s fixed broadband infrastructure market.
Under existing regulations, Openreach must provide at least 120 days’ notice before implementing major wholesale pricing changes. Following the notification, Ofcom has opened a Call for Inputs and invited feedback from internet service providers (ISPs), telecom operators, and infrastructure companies until June 19, 2026.
Openreach Proposes New FTTP Wholesale Pricing
The revised wholesale FTTP pricing structure covers multiple broadband speed tiers. Proposed monthly rental charges include:
40 Mbps FTTP: £17.83
55/80 Mbps FTTP: £17.18
115 Mbps FTTP: £17.50
160 Mbps FTTP: £17.94
220 Mbps FTTP: £18.97
330 Mbps FTTP: £19.53
550 Mbps FTTP: £19.69
1.0-1.2 Gbps FTTP: £20.77
1.8 Gbps FTTP: £21.30
The 550 Mbps, 1.0-1.2 Gbps and 1.8 Gbps tiers will remain subject to CPI-linked adjustments. The pricing framework is designed to support continued fibre network investment while maintaining affordability for wholesale broadband providers.
£18.77 ARPU Threshold Remains Key Regulatory Mechanism
One of the most significant elements under review is the £18.77 Average Revenue Per User (ARPU) threshold mechanism.
Under this arrangement, if retail broadband ARPU exceeds £18.77 per month, the additional revenue generated is shared equally between Openreach and the retail service provider through a 50:50 revenue-sharing model. The mechanism allows Openreach to participate in broadband market growth while preserving wholesale pricing controls intended to protect competition.
Installation Charges Vary by Deployment Complexity
Openreach has also proposed updated FTTP installation charges.
For standard residential deployments:
New FTTP connection: £32.07
FTTP migration: £31.02
Complex installation: £64.15
For rural and hard-to-reach locations:
New connection: £127.26
Migration charges: £86.45 to £127.26
Business connectivity installations are priced at:
Standard business installation: £127.26
Premium installation: £158.34
Advanced installation: £308.56
These charges remain subject to Ofcom oversight to ensure fair market access and prevent excessive barriers to fibre adoption.
Ethernet and Leased Line Services Also Under Review
The review extends beyond residential broadband and includes Openreach’s Ethernet Access Direct (EAD) and leased-line connectivity services used by enterprises, mobile operators, cloud providers and data centre operators.
The proposals include incentives for customers migrating from legacy Ethernet platforms such as WES, WEES and BES to modern EAD services. Migration discounts ranging from 25 percent to 50 percent are proposed in selected scenarios, alongside pricing controls designed to support enterprise network modernization.
Exchange Infrastructure Pricing Updated
Openreach’s notification also outlines revised exchange infrastructure and Cablelink pricing.
Key charges include:
External fibre connection (24 fibres): £2,373.50
External fibre connection (48 fibres): £2,793.30
Internal room-to-room connection: £1,100.30
Room-to-ODF connection: £1,320.90
Room-to-splice connection: £1,757.80
Backhaul link rental: £24.60 per year
These services support fibre interconnection and deployment within Openreach exchange facilities.
Engineering Charges and Cost Recovery Framework
Additional operational charges proposed by Openreach include:
External order cancellation: £429.90
Internal order cancellation: £238.80
The company will continue applying excess construction charges (ECCs) based on 100 percent cost recovery principles for projects requiring additional civil engineering work.
Fibre Migration Remains a Strategic Priority
A major objective of the pricing proposals is accelerating migration from legacy copper and Ethernet infrastructure to full-fibre networks.
The framework includes:
Minimum 90-day notice for wholesale changes
60-day notice in specific approved circumstances
Ethernet migration discounts of 25 percent to 50 percent
Waivers of certain termination charges during migration
Incentives for customers moving from FTTC to FTTP
Openreach highlighted that FTTP 80/20 broadband is priced at approximately £17.17 per month, equivalent to about £213.99 annually, helping position fibre services as a cost-effective alternative to legacy copper-based broadband.
Ofcom to Assess Competitive Impact
Ofcom will now evaluate the proposals’ impact on wholesale broadband competition, alternative network providers (altnets), FTTP market development, and Ethernet connectivity services.
The regulator may approve the pricing framework, require modifications, or intervene before the proposed implementation date of October 2026.
The outcome of the review will play an important role in shaping wholesale broadband pricing, fibre investment strategies, gigabit broadband expansion, and competitive dynamics across the UK telecommunications market.
SHAFANA FAZAL
