Ofcom sets out full-fibre plans
March 17, 2026
By Colin Mann
The availability of full-fibre broadband almost everywhere will lay the foundations for productivity gains across the UK, according to Ofcom, which has finalised plans for how it will enable further competition and investment in the sector.
Ofcom’s Telecoms Access Review, which builds on the regulator’s 2021 overhaul of how it regulates Openreach, sets out the rules it must follow for the next five years, to see the full fibre rollout by a range of companies through its final phase.
Nearly eight in 10 (78 per cent) of homes now have access to full-fibre broadband, up from less than a quarter five years ago, in a rapid turnaround that has seen the UK become one of the fastest builders of this infrastructure in Europe.
According to plans from the UK’s broadband networks, with the right support full fibre will reach almost 29 million properties by the end of 2027, equivalent to well over nine in 10.
With around a fifth of the country yet to get access to full fibre, every upgraded connection means a home or business can do more online.
Whether that’s a busy household where everyone can be online at the same time, a factory able to seamlessly track its orders and automate its machinery, or a digital start-up that can instantly test new versions of its app, better broadband helps put the UK on a path to higher productivity.
Ofcom’s new rules also come as AI is rapidly transforming businesses across the country by radically cutting the amount of time needed to perform a range of tasks.
As the technology requires a fast, reliable internet connection to work at scale, the full-fibre rollout roaring ahead will be vital for supporting productivity in every corner of the UK.
Ofcom’s Group Director for Infrastructure and Connectivity, Natalie Black, said: “Today marks a major milestone on the road to a better connected, more productive Britain. Five years ago, we put in place new rules to drive competition between networks and get them building full-fibre broadband, which now reaches nearly eight in 10 homes and offices across country. But our mission isn’t yet complete, and we’re creating the right conditions for the fibre rollout in its final phase. Our review of the rules has been an extensive and complex undertaking given the nature of the market, and we appreciate the considered engagement from the sector.”
A broadband boost for Britain
Since Ofcom introduced a new regulatory framework in 2021 to drive competition between different broadband networks, the fibre-rollout has been an infrastructure success story.
The vast majority of the UK (87 per cent) now has access to a Gigabit-capable network, and full-fibre coverage stands at 78 per cent, compared with just 6 per cent in 2018. With industry investing billions each year bringing better broadband to communities up and down the country, the rollout is now reaching its end phase.
But the job is not yet done, and to realise the productivity potential of full fibre for the UK economy, as much of the country as possible must have access to it. And looking ahead, the next frontier for fibre is customers taking it up, with more than half of those eligible for an upgrade yet to make the change. Every new sign-up helps connect the country and power up its productivity.
Regulating a dynamic market
The announcement comes as the broadband market is changing rapidly, and the framework of Ofcom’s regulation will stay in place to provide stability and certainty.
People have more choice between broadband providers than ever before – around three quarters have access to at least two networks, and nearly a third of the country can choose between three. This has meant ever better services at attractive prices. But Openreach still retains significant power in the market and Ofcom says we’re not at a point where it can remove regulation entirely.
Ofcom wants to see competition continue to develop, and is therefore maintaining rules around its discounts and deals that could stifle investment and the development of sustainable competition.
When Ofcom considers these offers, its approach will continue to be evidence-based and take into account the state of the market through expert analysis. As competition develops, there may be future scenarios in which it can relax its position on Openreach offers. To provide greater clarity, it has provided new guidance that explains how it considers such requests.
Pillars for progress
To incentivise further investment and maintain momentum for the rollout, Ofcom has published how it will regulate the wholesale broadband markets from April 2026 to March 2031.
Ofcom’s decisions include:
• Supporting competition. Openreach’s competitors will continue to have access to its ducts and poles at fair, cost-based prices, meaning they can deploy their own networks quickly and economically across the UK.
• Protecting quality of service In less densely populated parts of the UK, where Openreach is unlikely to face competition, Ofcom is introducing new backstop standards around the speed and quality of repairs and installations for Openreach’s full-fibre services. Elsewhere, we expect competition to drive service quality.
• Acting on affordability. Ofcom will cap the nominal price that Openreach can charge retail providers such as Vodafone or Sky – who lease its infrastructure – for download speeds up to 80Mbit/s, rather than 40Mbit/s at present. The prices of higher-speed products will remain unregulated, so providers have an incentive to invest in networks that can deliver faster speeds.
• Closing the copper network. As part of transitioning to full-fibre networks and gradually shutting down old telephone exchanges, Openreach should not have to incur unnecessary costs for running two networks at the same time. Ofcom will progressively shift regulation away from copper services to full fibre services, giving Openreach flexibility to encourage customers to migrate off its old copper network.
• Looking to the future. If sustainable competition is still emerging in 2031, when its next review is due to take place, Ofcom expects to regulate in a way that supports it. Should it need to set price controls on Openreach in the future, it would have the opportunity to earn a return above the cost of its investment over time. Alternatively, if effective competition emerges by the time of its next review, there will be no need for Ofcom to regulate beyond access to ducts and poles.
The decisions will take effect from April 1st.
Responding to publication of Ofcom’s Telecoms Access Review, Rajiv Datta, Chief Executive Officer at nexfibre, said: “Ofcom is right to stay the course and prioritise regulatory stability. This is not the moment to deregulate the incumbent; what’s needed is steady oversight and firm enforcement of the framework already in place. The reality is that sustainable, nationwide competition to BT Openreach will only be achieved through consolidation and continued investment. The fibre market remains too fragmented to deliver this on its own. Nexfibre’s acquisition of Netomnia is an important step towards building the scale required to change that. Now is the moment for clear action. The UK must show it is committed to supporting the investment needed to secure the long‑term digital infrastructure that will drive productivity, innovation and economic growth.”
Matthew Howett, Chief Executive of Assembly Research commented: “The largely indiscernible reaction from Openreach and the altnets to Ofcom’s conclusion of its Telecoms Access Review suggests the regulator has probably struck the right balance at the midway point on a 10-year journey. The bigger issue of consolidation and how that leaves the market will fall to the CMA, with Ofcom right to only say it will provide input.”
In summary:
• As we said at the consultation stage in March 2025, ‘Ofcom is right to stay the course halfway through what was always sold as a 10-year pro-investment framework’ and that ‘we expect only limited change between now and the March 2026 statement’ . Today’s statement confirms that, recognising that now is not the time to radically depart from what was outlined in 2021. The early reaction from Openreach, CityFibre and others is similar enough in tone, suggesting the regulator has probably struck the right balance.
• At the consultation stage, Openreach had hoped for more on copper retirement and arguably that has been set in motion. While Ofcom has not fully defined the environment for copper deregulation, it is consulting on pricing flexibility for copper retirement, with the suggestion that charge controls could be removed where 90% of premises have access to fibre. In this scenario, you could envisage Openreach being able to increase prices for its legacy copper services.
• Altnets raised PIA as one of the bigger concerns and we’ve seen some movement here from Ofcom, although not going as far as some would have liked by introducing alternative pricing structures for rural deployments. Instead, some prices will come down (lead-in charges and single bores), but no average pricing impact has been given due to the varying product mix that will be chosen by fibre builders. Ofcom’s commitment to PIA as a foundational remedy beyond 2031 will be reassuring for the many altnets that have made use of it.
• Ofcom’s greatest challenge has been the need to balance the longer term need to invest with the uncertainty of how the market will develop over the next five years. Together with the CMA, the collection of regulators should have sufficient tools to respond, flex and adapt as required, and we’re not expecting them to revisit the market in any meaningful way before 2031.
• On the specifics of consolidation, as you’d rightly expect, Ofcom was fairly tight lipped given it’s predominately a matter for the CMA. The regulator has correctly focused on the principle of preserving competition over protecting specific competitors. While acknowledging the fragmented nature of the market, it was never Ofcom’s role to protect any one operator or business 7model – instead it was to give altnets an opportunity, but not a guarantee, to succeed. The next phase of the market will depend on how the CMA considers the level of sustainable network investment and footprint overlap in the consolidation of Netomnia.”
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