According to Financial Times News, BT’s Openreach has threatened to abandon its goal of making full fibre available to 30 million UK homes by 2030 due to a dispute with regulator Ofcom. The broadband infrastructure company, which currently covers 20 million homes, is on track to reach 25 million by 2026 but may halt the final 5 million expansion. CEO Clive Selley specifically warned he’s “holding fire” on approvals for that last tranche until Ofcom’s Telecoms Access Review concludes in spring 2025. The conflict centers on Ofcom’s draft proposal to maintain price controls that limit what Openreach can charge other providers to use its network. This regulatory standoff could leave millions of households without access to full-fibre broadband by the end of the decade.
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The regulatory standoff
Here’s the thing – this isn’t just corporate posturing. Openreach is basically saying the economics don’t work for that final 5 million homes if they can’t charge market rates. And they’ve got a point – those last properties are likely the most expensive and difficult to reach, probably in rural or hard-to-serve areas. The company argues that maintaining price caps designed for a monopoly situation doesn’t make sense when there are now multiple competing networks in many areas.
But Ofcom has its own perspective. They point to the success of their “pro-competition, pro-investment regulation” that’s made the UK one of Europe’s fastest full-fibre builders. The 2021 review that kept Openreach constrained actually sparked a wave of new competitors – the so-called “altnets” – who’ve now covered over 16 million homes. So who’s right? Both sides have legitimate arguments, but the real victims here are the millions of households caught in the middle.
The competitive landscape
This dispute reveals how much the UK broadband market has transformed. Remember when BT basically had a monopoly? Those days are long gone. Now you’ve got Virgin Media O2, CityFibre, and numerous smaller players all building their own networks. Openreach claims that in areas with two or more competing networks, they should be freed from price controls. Their competitors argue that Openreach still holds too much market power.
Look, the irony is thick here. The very competition that Ofcom’s regulations helped create is now being used as justification to lift those same regulations. But is the competition robust enough yet? That’s the multi-billion pound question. The altnets have invested heavily, but we’ve already seen some consolidation in the sector. If Openreach gets pricing freedom too soon, could it squash the competition it took years to build?
Broader implications
Selley didn’t just point fingers at Ofcom – he also called out the government for what he called “government inflicted costs” that make UK telecoms operators pay 10 times more than European peers. Business rates, energy levies, potential tax rises in the upcoming Budget – it all adds up. He’s basically saying the entire regulatory and tax environment is working against infrastructure investment.
And here’s what really worries me: 20% of UK homes still lack full fibre coverage. That’s huge. We’re talking about fundamental national infrastructure that affects everything from remote work to healthcare to education. If both the regulator and the company dig in their heels, who blinks first? The spring 2025 decision on the Telecoms Access Review suddenly feels like a make-or-break moment for UK digital connectivity.
What’s next
So where does this leave us? Basically in a high-stakes game of chicken between a former monopoly and the regulator that tamed it. Openreach is making a calculated gamble by publicly threatening to halt investment. They’re betting that the political pressure to hit national broadband targets will force Ofcom to compromise.
But Ofcom has its own credibility to maintain. If they back down too much, they risk being accused of favoring the dominant player over competition. Meanwhile, competitors like Virgin Media O2 and CityFibre are watching closely, ready to cry foul if they perceive any regulatory favoritism.
The real test will come in spring 2025 when Ofcom publishes its final decisions. Until then, millions of potential broadband customers are left wondering if they’ll ever get the fast, reliable connections that have become essential to modern life. It’s a messy situation, and there are no easy answers – but the clock is ticking on that 2030 target.
