Britain's communications regulator published its Telecoms Access Review for 2026-31, with the updated document basically tweaking existing regulations while largely keeping the framework unchanged. The decision signals regulatory confidence in the status quo, even as tensions simmer between the incumbent operator and its rivals over the speed of market competition.
The competitive framework put in place by Ofcom in 2021 has resulted in nearly eight in 10 homes having access to full-fibre broadband, up from less than a quarter five years ago. This expansion represents genuine infrastructure success, driven partly by regulatory requirements that forced Openreach to let other network firms access its utility poles and underground ducts to deploy new fiber via its Physical Infrastructure Access scheme.
Yet the rapid rollout masks an awkward truth: Ofcom recognises that BT still has significant market power in a number of markets, and approximately 75 percent of households now have a choice between at least two broadband providers, but Openreach continues to hold a position of significant market power. This explains why Ofcom stopped short of the structural deregulation some industry participants hoped for.
The updated regulatory framework makes two material changes. First, Ofcom will cap the nominal price that Openreach can charge retail providers like Vodafone or Sky for download speeds up to 80 Mbps, rather than 40 Mbps at present. Second, the notice period for Openreach's planned changes to commercial terms has been extended to 120 days, giving the regulator more time to scrutinise pricing moves.
The case for stability is defensible. Ofcom's previous market review in 2021 had already set out the main template for the next decade, and their 2026 review had to tread very carefully, veering toward careful tweaks rather than radical change, in order to maintain stability and predictability for the established environment until 2031. Sudden regulatory shifts could chill investment commitments.
Yet the regulator is betting that competition will eventually flourish without further intervention. Ofcom says that by the end of this review period in 2031, effective competition will exist for wholesale services, and there will be no need to regulate at this point. This optimism depends on alternative network operators successfully converting their builds into sustained commercial viability, a transition that remains unproven at scale.
Alternative networks welcomed the decision. CityFibre said the Telecoms Access Review provides a stable regulatory framework as it scales its network, bringing the benefits of genuine infrastructure competition to consumers and businesses nationwide. Yet alternative networks often complain that any price cuts by Openreach will make it harder for their own FTTP networks to gain a return on investment, and between 2024 and 2025, Openreach suffered 860,000 net line losses to rivals while consumers benefited from lower prices.
Openreach, meanwhile, sounded cautious. Mark Shurmer, managing director for regulation at Openreach, said no one is going further or faster to build the UK's best networks, and that investments help customers and the country do brilliant things, but only when the environment is stable and supportive. The statement suggested Openreach wanted even lighter regulation in competitive areas, a position Ofcom rejected.
The UK government previously earmarked £5 billion for the Project Gigabit scheme to subsidize broadband rollout in hard-to-reach areas, and has so far awarded over 30 contracts. Ofcom expects technologies such as fixed wireless access and new satellite services to play an increasingly important role in these areas, with satellite available from providers such as Starlink and OneWeb.
The Ofcom decision reflects a pragmatic view: the current regulatory framework has worked well enough to justify continuity, but declaring the market fully competitive would be premature. Whether this incremental approach can sustain investment momentum through 2031 while genuine competition takes root remains the central unanswered question.