Ofcom’s Telecoms Access Review 2026-31: Five More Years of Regulated Fibre Investment

Ofcom published its Telecoms Access Review 2026-31 statement on 17 March 2026, setting the regulatory framework for UK fixed telecoms markets for the next five years. The review maintains the existing approach to promoting fibre investment while making targeted adjustments to pricing, access and quality of service obligations. For operators planning network investment and PE investors assessing UK digital infrastructure, this is the document that defines the rules of engagement until 2031.

Regulatory background

Ofcom conducts periodic market reviews under the Communications Act 2003, sections 79-85, to assess whether any operator holds significant market power (SMP) and to impose proportionate remedies where it does. The previous Wholesale Fixed Telecoms Market Review 2021-26 set the framework that has governed Openreach pricing and access obligations since April 2021. That review introduced Physical Infrastructure Access (PIA) as the primary remedy, enabling rival operators to deploy fibre through Openreach’s duct and pole network at cost-based prices. The approach worked: full-fibre coverage increased from 24% of premises (6.9 million) in 2021 to 78% (23.7 million) by July 2025, with 169 operators now using Openreach’s passive infrastructure.

The 2026-31 review was consulted on in March 2025 under Ofcom’s statutory process, with the final statement published on 17 March 2026 and taking effect from 1 April 2026.

What the review decides

The central finding is continuity. BT retains its SMP designation across the relevant wholesale markets, and Openreach remains subject to access and pricing obligations. But the review makes several targeted changes that reflect the evolution of the UK’s broadband market.

First, the price cap on legacy broadband has been extended. Ofcom will now cap the nominal price Openreach can charge retail providers for download speeds up to 80Mbps, up from the previous 40Mbps threshold. This matters because it constrains Openreach’s ability to extract margin from copper and lower-speed services during the migration period. Higher-speed fibre products remain unregulated on price, preserving the commercial incentive for Openreach and altnets to invest in and compete on faster services.

Second, duct and pole access continues at cost-based prices. PIA remains the cornerstone remedy. Ofcom sees no reason to change an approach that has enabled the largest infrastructure buildout in UK telecoms history. Openreach must continue to supply PIA on regulated terms to any provider that requests it.

Third, dark fibre access has been refined. Ofcom will require Openreach to provide dark fibre at cost-based prices in exchange areas where it faces one or no competitors. In areas where Openreach faces two or more competitors, those exchanges will be deregulated. This is a pragmatic approach: it maintains wholesale access where competition has not yet emerged while removing regulation where it is no longer needed.

Fourth, quality of service backstops have been introduced for less competitive areas. In parts of the UK where Openreach is unlikely to face infrastructure competition, Ofcom will impose minimum standards for the speed and quality of fault repairs and installations on Openreach’s full-fibre services. This protects consumers in areas where market forces alone are insufficient to drive service quality.

Fifth, the review facilitates copper retirement. Ofcom will give Openreach flexibility to encourage migration from its legacy copper network to full fibre, with charge controls potentially removed in areas where 90% of premises have access to fibre. This acknowledges the commercial reality that maintaining two parallel networks is unsustainable.

Commercial and operational implications

For Openreach, the review provides regulatory certainty for a five-year period. The extension of PIA obligations is expected but the continued absence of price regulation on higher-speed fibre products gives Openreach room to generate returns on its investment. The copper retirement flexibility is welcome, though the pace of migration will depend on consumer take-up as much as regulatory permission.

For altnet operators, the continued availability of PIA at cost-based prices is the most important outcome. Operators building their own fibre networks through Openreach infrastructure can plan on stable access terms through to 2031. The deregulation of exchanges with two or more competitors is a signal of Ofcom’s direction of travel: as competition matures, regulation will recede. Altnets that have built sustainable networks will eventually compete without regulatory support.

For PE investors, the review confirms the UK’s regulatory stability. The five-year horizon, continued PIA access, and absence of price regulation on fibre products support the investment case for UK digital infrastructure. CityFibre’s recent £2.3 billion financing round, including an £800 million accordion facility for acquisitions, illustrates the market’s confidence in the regulatory framework. The review also reinforces the case for consolidation among smaller altnets that may struggle to compete as regulation eases in areas of established competition.

For retail ISPs and mobile operators using Openreach wholesale products, the price cap extension to 80Mbps provides some protection on legacy input costs. But the real commercial question is the pace of full-fibre migration and the pricing that Openreach will set for unregulated fibre products.

Viewpoint

This review does what it needed to do: maintain the regulatory framework that has driven the UK’s fibre investment boom while signalling the path towards deregulation as competition matures. Ofcom’s approach is deliberately evolutionary, not transformational. The regulator’s task now is less about mandating access and more about managing the transition from a regulated monopoly to a competitive market.

The test will come at the next review. If the current pace of fibre deployment continues and altnet consolidation produces two or three credible national competitors to Openreach, the 2031 review could mark a genuine step-change in deregulation. If consolidation falters or fibre take-up disappoints, Ofcom may find itself maintaining access obligations for longer than it would like. Operators and investors should plan for both scenarios.

Links

Ofcom Telecoms Access Review 2026-31 Statement

Ofcom Telecoms Access Review landing page

Contact

For advice on the implications of the Telecoms Access Review for your network investment, wholesale access arrangements, or regulatory compliance, contact Rob Bratby at Bratby Law.