Ofcom's Telecoms Access Review 2026-31

Quick answer. Ofcom’s statement of 17 March 2026 extends the existing SMP-based approach to regulated fibre access for the next five years, maintaining investment incentives while tightening pricing, access and quality obligations. Above the 80/20 anchor there is no charge control, but Openreach FTTP charges must still be fair and reasonable, and on 28 July 2026 Ofcom relied on that requirement to propose blocking one of Openreach’s commercial offers.

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, Part 2 Chapter 1, sections 78 to 91, 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. Physical Infrastructure Access (PIA) is older than that review. Ofcom first imposed the duct and pole access remedy in its 2018 Wholesale Local Access Market Review, following the 2016 Strategic Review of Digital Communications, and the 2021 review continued and refined it as the foundational 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. Ofcom’s Openreach Monitoring Report of 11 September 2025 records that more than 140 providers had deployed network 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 has moved the anchor from the 40/10 products to the 80/20 products, so the nominal price Openreach can charge retail providers is now capped on the products supporting download speeds up to 80Mbps. The anchor set is principally FTTC 80/20 and, where no copper equivalent is available, FTTP 80/20. This matters because it constrains Openreach’s ability to extract margin from copper and lower-speed services during the migration period. Products above the anchor carry no charge control, which preserves the commercial incentive for Openreach and altnets to invest in and compete on faster services. That is not the same as being unregulated on price. Openreach FTTP charges must be fair and reasonable at all times under SMP Conditions 1.3 to 1.5, and geographically targeted reductions are restricted by the non-discrimination condition.

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. Under the Telecoms Access Review 2026-31 statement, in the inter-exchange connectivity market Ofcom has deregulated exchanges where Openreach now faces two or more competitors, and requires Openreach to provide dark fibre at prices reflecting reasonable costs where it faces one or no competitors at an exchange. Dark fibre is separately required at cost-based prices in LLA Area 3, which is defined by postcode sector rather than by competitor count at an exchange. 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 has imposed backstop minimum standards on full-fibre services in WLA Area 3 only, covering fault repair within one and eleven working days and installation against committed and first available dates, 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 retains the three-stage, exchange-by-exchange framework from the 2021 review. The copper charge control is disapplied at an exchange once Openreach provides ultrafast coverage to all premises in that exchange area, excluding directed premises, rather than at any national percentage. How those exclusions are calculated went out to a separate consultation on 17 March 2026, which closed on 12 May 2026 with a decision expected in autumn 2026. 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 absence of a charge control above the anchor gives Openreach room to generate returns on its investment, subject to the fair and reasonable requirement. 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 a charge control above the anchor support the investment case for UK digital infrastructure. CityFibre’s £2.3 billion financing round announced on 14 July 2025, 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 above the anchor.

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. In my view the regulator’s task now is less about mandating access and more about managing the transition from a regulated monopoly to a competitive market.

Operators reviewing their current obligations or planning new services in the context of the 2026-31 review period should consider taking specialist advice before committing to new product launches or network changes.

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. I would plan for both scenarios.