Statement published 24 May 2023; updated 29 June 2023
In Ofcom's Wholesale Fixed Telecoms Market Review statement, we set out a framework to promote investment and competition in gigabit-capable networks. In doing so, we recognised a concern that Openreach could set commercial terms that undermine new network build.
On 14 December 2022, Openreach notified us of a new pricing offer for its full-fibre services (Equinox 2). This offer gives lower prices to retail providers – such as BT, Sky, TalkTalk and Vodafone – if they agree to use mainly Openreach’s full-fibre products for new orders instead of its legacy copper products.
In our consultation, we assessed the Equinox 2 offer and set our provisional view that we should not take any action at this time to prevent the new terms from being introduced. Having carefully assessed the range of evidence available to us – including responses to our consultation – we have decided not to prevent Equinox 2 from being introduced.
We are making three small changes to the non-confidential versions of our statement and annexes, by providing the following text unredacted (unredacted text is in italics):
Paragraph 3.37(a), final sentence: "Openreach stated that historical performance data should be viewed in the context of the full Equinox 1 Offer discounts being paid if the ISP’s Openreach Order Mix was 80% or higher."
Annex 4, footnote 101: "Order data from Openreach indicates that [REDACTED] achieved an Openreach Order Mix above 98%, and often above 99%, in regulatory stop sell areas. [REDACTED]’s Openreach Order Mix is sometimes lower, although still above 90%. This is due to bulk migrations [REDACTED]. Openreach response dated 21 April 2023 to s135 notice dated 12 April 2023, question 7."
Annex 5, footnote 298: "Openreach carried out analysis comparing ISPs’ historical Openreach Order Mix for each calendar quarter of 2022 in (i) the parts of its FTTP footprint that it assessed as overlapping with a competing network (done separately for CityFibre and VMO2); (ii) the parts it assessed as non-overlapping with that network; and (iii) the parts in which it assessed the presence of that network as ‘unknown’. The analysis shows that ISPs’ Openreach Order Mix tends to be lower in CityFibre overlap areas than in CityFibre non-overlap areas, while for VMO2 the comparison shows a mixed picture. In both cases, the Openreach Order Mix is highest – close to 100% – in areas where the competing network’s presence is ‘unknown’. Openreach response dated 21 April 2023 to s135 notice dated 12 April 2023, questions 1 and 2. For the reasons mentioned above, we do not consider this analysis to be informative of geographic differences in underlying demand."
We have today republished our statement document and annexes with the above text unredacted.
Responses
Contact information
Ofcom
Riverside House
2A Southwark Bridge Road
London
SE1 9HA