nexfibre has released its latest report, UK Fibre: A Fork in the Road, outlining key recommendations for Ofcom’s upcoming Telecoms Access Review (TAR). The report emphasizes the need for regulatory changes to sustain investment in full-fibre rollout, foster long-term competition, and curb anti-competitive practices by the dominant operator.
With the UK’s full-fibre market fragmented and many sub-scale operators under financial pressure, rollout progress has slowed significantly this year. nexfibre argues that Ofcom must act decisively to maintain the pace of expansion and ensure a competitive digital infrastructure market.
Key recommendations include maintaining regulation on the dominant operator, introducing a margin squeeze test to prevent unfair pricing, addressing transparency issues in BT Openreach’s PIA charges, ensuring fair regulation during the copper-to-fibre transition, and focusing on sustainable, scaled competition through market consolidation.
nexfibre, one of the UK’s largest full-fibre wholesale providers, invested £1bn in digital infrastructure this year, positioning itself as the second-largest alternative network provider in just two years.
Giles Rowbotham, General Counsel and Chief Development Officer at nexfibre, said:
“The UK has made terrific progress in expanding full fibre broadband in recent years, thanks in part to the conditions created by the last Ofcom review. However, this progress is fragile. The current market structure is unsustainable, and the Ofcom review comes at a pivotal moment for this country’s digital infrastructure market.”
He added, “To ensure innovation and investment in digital infrastructure, the UK needs a regulatory environment that balances stable regulation with a pragmatic view of market consolidation while firmly restricting behavior that stymies meaningful nationwide competition.”
Dave Carter, Honorary Fellow, Manchester Urban Institute, University of Manchester
“In our international work, we see how open markets backed up by more sophisticated approaches to regulation are essential foundations for effective FTTH rollout and take up. The UK has so much potential for accelerating deployment and using this in supporting economic growth and social cohesion. This is why proposals which provide for more effective regulation which constrains anti-competitive behaviour, provides regulatory stability, as well as supports innovation are to be welcomed.”
“Ahead of the Telecoms Access Review this report is timely. It is important that action is taken to ensure effective regulation while, at the same time, promoting more open business environments. Through doing so we can continue to facilitate new and innovative approaches being championed by networks like nexfibre.”
Dr Anita Greenhill, Alliance Manchester Business School, The University of Manchester.
“This is an astute report which highlights the importance of regulatory frameworks that promote and protect competition in the fibre infrastructure market. As the Telecoms Access Review approaches, the report’s findings underscore the urgency of creating a regulatory environment that supports fair competition and tackles barriers to entry and expansion that network providers currently face.
The UK has significant potential with continued Fibre-to-the-Home deployment, but without effective regulation which provides regulatory stability and curtails anti-competitive behaviour, progress is at risk.
High quality, financially sustainable network operators, such as nexfibre, are playing an important role in delivering advanced digital infrastructure and national-scale competition in the market. It is important that the regulator addresses their concerns and puts in-place a regulatory framework which can deliver the digital infrastructure the UK needs to support economic growth and enhance social cohesion.”
Dr Anita Greenhill, Alliance Manchester Business School, The University of Manchester.
As the Telecoms Access Review approaches, nexfibre is calling for swift action to secure a competitive, resilient market capable of driving economic growth and ensuring the UK’s digital future.
