Ofcom Copper Retirement: What the Three-Stage Framework Means for Operators
Ofcom confirmed on 17 March 2026 that its three-stage copper retirement framework will continue under the Telecoms Access Review 2026-31. Operators, altnets and wholesale access purchasers now face a live regulatory timetable: BT’s PSTN retires by 31 January 2027, Openreach is decommissioning 4,600 of its 5,600 telephone exchanges in phases through the 2030s, and a consultation on the second threshold calculation closes on 12 May 2026. The commercial question is not whether copper regulation ends, but when it ends at each exchange and what that means for wholesale purchasing, network build plans and service continuity.
Regulatory background: how the framework works
Ofcom’s copper retirement framework sits within its significant market power (SMP) regime under Part 2 of the Communications Act 2003 (in particular sections 78 to 93). BT (through Openreach) holds SMP in the wholesale local access and wholesale fixed analogue exchange line markets. That designation means Ofcom can impose conditions requiring Openreach to provide network access, including regulated pricing, to competing operators. The copper retirement framework determines when and how those conditions are relaxed as fibre replaces copper.
The framework was first set out in the Wholesale Fixed Telecoms Market Review 2021 (WFTMR21). The TAR 2026-31 statement confirmed in March 2026 that the three-stage approach continues without structural change through to at least 2031, providing continuity for operators planning investment and migration.
The three stages of copper retirement
The copper retirement framework operates exchange by exchange, not nationally. Each Openreach exchange area progresses through three stages, each triggered by a coverage or take-up threshold. The practical effect is that different parts of the UK will sit at different stages simultaneously, and operators purchasing wholesale access from Openreach need to track progress at exchange level.
Stage 1: copper stop sell. This triggers when Openreach’s fibre-to-the-premises (FTTP) network covers 75% or more of premises connected to a given exchange. Once this threshold is met, Openreach can stop selling new copper-based broadband connections at that exchange. The national copper stop sell has been in effect since 5 September 2023, when Openreach ceased selling new analogue PSTN services across the entire UK. But the exchange-level stop sell for regulated wholesale products follows the 75% FTTP coverage trigger.
Stage 2: charge control removal. This is the stage now under active consultation. Before Ofcom will disapply its charge controls on copper-based wholesale services at a given exchange, Openreach must provide ultrafast broadband coverage to 100% of the premises in that exchange area (excluding premises Ofcom directs should be excluded) and give adequate notice to access purchasers. The second threshold is the mechanism that protects operators and their customers from being stranded: copper pricing regulation stays in place until fibre is available to every premises in the area, not just most of them.
The open consultation (closing 12 May 2026) addresses how Ofcom will calculate which premises can be excluded from the 100% target. This matters because some premises are commercially unviable to reach with FTTP, and the methodology for excluding them directly affects how quickly Openreach can pass each exchange through Stage 2 and remove copper charge controls.
Stage 3: full regulatory withdrawal. Once copper take-up falls below 10% of relevant premises in a completed exchange area, and Openreach has given at least two years’ notice, Ofcom may withdraw the remaining copper access obligations entirely. This is the final stage: no more regulated copper access at that exchange. Vulnerable customer protections must be in place before withdrawal can proceed.
| Stage | Trigger | Regulatory effect | Timeline |
|---|---|---|---|
| 1: Stop sell | 75% FTTP coverage at exchange | Openreach stops selling new copper connections | National stop sell since September 2023; exchange-level ongoing |
| 2: Charge control removal | 100% ultrafast coverage (minus exclusions) plus notice period | Copper charge controls disapplied where FTTP available | Methodology under consultation (closes 12 May 2026); Ofcom decision autumn 2026 |
| 3: Full withdrawal | Copper take-up below 10% at exchange, plus 2 years’ notice | All copper access obligations removed | Exchange by exchange through the 2030s |
Why the second threshold consultation matters
The 12 May 2026 consultation on the second threshold calculation is the most commercially significant element of the current copper retirement framework. The question Ofcom is asking is narrow but consequential: which premises should be excluded from the 100% ultrafast coverage requirement?
A generous exclusion methodology lets Openreach pass exchanges through Stage 2 faster, removing copper charge controls sooner. A strict methodology keeps copper pricing regulation in place for longer, protecting wholesale access purchasers who serve premises not yet reached by fibre. For operators buying wholesale access from Openreach, the exclusion methodology directly affects how long they can rely on regulated copper pricing to serve their remaining copper-dependent customers.
Operators and altnets should respond to this consultation. The premises exclusion methodology will shape the pace of copper deregulation exchange by exchange, and once an exchange passes Stage 2, the pricing protection for copper-based services at FTTP-served premises is gone.
Commercial and operational implications
For operators purchasing Openreach wholesale access, the framework creates a phased but predictable timetable for migrating off copper. Three practical considerations stand out.
First, network planning must track exchange-level thresholds. Operators cannot plan migration nationally; they need exchange-by-exchange visibility of where FTTP coverage stands relative to the 75% and 100% triggers. Openreach publishes exchange-level data, but operators should build internal tracking to match their customer base against the copper retirement schedule.
Second, wholesale purchasing strategy needs to account for the transition. Once an exchange passes Stage 2, copper charge controls are disapplied at premises where FTTP is available. Operators still serving customers on copper at those premises face unregulated pricing. The commercial incentive to migrate customers to fibre-based services sharpens materially at Stage 2, and operators who are slow to migrate risk margin compression.
Third, service continuity obligations apply. General Condition C3 requires providers to take reasonable steps to ensure continuity of service for customers during network changes. The PSTN retirement by January 2027 and the exchange-by-exchange copper retirement are separate but overlapping processes. Operators must manage both: migrating voice services off the PSTN and migrating broadband services off copper wholesale inputs, potentially on different timelines for the same exchange area. If your migration planning is not yet exchange-specific, it should be. Bratby Law advises operators on regulatory compliance during network transitions.
Business customers relying on copper-dependent services (ISDN lines, alarm circuits, payment terminals connected via analogue lines) face the PSTN switch-off deadline of 31 January 2027. The government has confirmed this is an industry-led programme, not a regulatory mandate, but Ofcom has required providers to ensure customers dependent on their landline can contact emergency services during power outages and to identify vulnerable customers before migrating them.
This post builds on our earlier analysis of the Telecoms Access Review 2026-31, which covers the broader regulatory framework for fibre investment and wholesale access regulation through 2031.
Viewpoint
The copper retirement framework is well designed. The three-stage approach gives operators a clear, exchange-level timetable while protecting access purchasers through the transition. The critical question now is whether the premises exclusion methodology in the second threshold gets the balance right between enabling Openreach to retire copper at reasonable speed and protecting operators whose customers in harder-to-reach premises will be last to get fibre.
In practice, the hardest operational challenge for most operators is not understanding the framework but tracking it at exchange level and aligning their internal migration programmes accordingly. The operators who treat copper retirement as a national event rather than an exchange-by-exchange process are the ones who will be caught out when charge controls disappear at specific exchanges before they have migrated their customer base.
The consultation closes on 12 May 2026. Ofcom expects to publish its final decision in autumn 2026.
Links
- Ofcom TAR 2026-31 Statement
- Consultation: Second Threshold Calculation
- Communications Act 2003, Part 2, ss 78-93 (SMP conditions)
- UK Transition from Analogue to Digital Landlines (GOV.UK)
- Bratby Law: SMP Regulation and Market Reviews
- Bratby Law: Telecoms Access Review 2026-31
Contact
For advice on the copper retirement framework, wholesale access strategy during the transition, or responding to the second threshold consultation, contact Rob Bratby at Bratby Law.
