Ofcom plans rules to drive UK full-fibre broadband to 96% coverage

UK telecoms regulator Ofcom has unveiled new rules to support the country’s full-fibre broadband rollout.

The proposals are aimed at further stimulating competition and investment in the sector and build on regulations introduced in 2021. The regulator believes its latest plans could see full-fibre connections reach 96% of homes and businesses across the nation within the next two years.

This target marks a considerable leap forward from the situation just four years ago, when less than a quarter of UK premises had access to full-fibre.

Natalie Black, Group Director for Networks and Communications at Ofcom, said: “The rollout of full fibre across the UK is a British infrastructure success story.

“Four years ago, less than a quarter of UK homes and offices had access, and it now stands at nearly seven in 10. But we do not take this momentum for granted and today we are setting out how we can work with the sector to finish the job.”

The progress made since 2021 is undeniable. Ofcom’s initial regulatory framework incentivised existing network providers to invest in full-fibre infrastructure while simultaneously lowering the barriers for new entrants by granting them easier and more affordable access to Openreach’s ducts and telegraph poles. 

However, this recent momentum follows a slow start. In response to Ofcom’s Connected Nations report entering 2024 that found UK full-fibre broadband coverage had reached 57 percent, industry experts noted the coverage lagged behind many European countries.

Alex Tofts, Broadband Expert at Broadband Genie, commented: “Full-fibre coverage of 57 percent means we are lagging behind other European countries such as Portugal, Spain, Sweden, Norway, and France. Further progress is needed to support the nation’s current and future digital demands.”

Ofcom hopes its proposals will help the UK full-fibre broadband rollout catch up with its counterparts and, ideally, even become a European leader.

Greg Mesch, CEO of CityFibre, said: “Ofcom’s Telecoms Access Review marks yet another major milestone in creating a sustainable competitive market. By supporting wholesale network competition, Ofcom is helping to drive better services, greater choice, and lower prices for consumers and businesses, while unlocking economic growth across the country.

“We fully support Ofcom’s direction and look forward to working together to ensure the UK benefits from a thriving, sustainable digital infrastructure market.”

Currently, around 69% of UK premises (20.7 million) have access to full fibre—a significant increase from the 40% (11.6 million premises) recorded in 2021. Gigabit-capable network coverage has also surged, reaching 83% of premises last year. This increased infrastructure has translated into greater choice for consumers, with over 70% of premises now able to select from two or more different broadband networks.

Regulating to support the UK full-fibre broadband rollout

Achieving this near-universal access to high-quality broadband is seen as crucial for powering economic growth, unlocking opportunities in remote communities, boosting productivity, and supporting the increasing digitisation of public services. However, Ofcom acknowledges that continued investment is essential to reach the final few percent and solidify the UK’s full-fibre future.

While competition from newer broadband networks is emerging, it requires time for these entrants to build their customer base and achieve the necessary scale for long-term sustainability. Encouraging customers to switch from older copper networks to the superior full-fibre technology is vital for the success of all providers, and Ofcom notes that adoption rates are steadily rising.

To sustain the current momentum and facilitate further rollout, Ofcom is now outlining its proposals for regulating wholesale broadband markets from 2026 to 2031 as part of its ongoing Telecoms Access Review. This new framework builds upon the foundations laid by the 2021 regulations, aiming to provide market stability, promote fair and sustainable competition, and ultimately ensure the widespread availability of full-fibre broadband across the UK.

Natalie Black further commented: “It means that people and businesses in nearly all corners of the country will get faster, better broadband, fuelling economic growth and enabling technologies like artificial intelligence to benefit everyone.”

Key proposals put forward by Ofcom include:

• Promoting competition: Recognizing the faster-than-anticipated growth of new infrastructure, Ofcom intends to classify more areas of the UK as having existing or potential competition between broadband networks. Competitors will retain access to Openreach’s ducts and poles, enabling them to deploy their full-fibre networks and connect customers more efficiently and cost-effectively than undertaking their own digging. Furthermore, Ofcom plans to strengthen its rules surrounding Openreach’s wholesale deals and discounts to prevent any unfair stifling of competition.
• Fibre rollout for rural Britain: In more remote and rural areas where the commercial viability of new network investment is lower, Ofcom will focus on incentivising full-fibre deployment by Openreach. Additionally, in regions where Openreach is unlikely to face competition, new “backstop” standards for the speed and quality of repairs and installations for full-fibre services are proposed.
• Protecting customers: As network competition continues to develop, Ofcom intends to safeguard consumers by capping the nominal price that Openreach can charge retail providers (such as Sky or TalkTalk) for download speeds up to 80Mbit/s, an increase from the current 40Mbit/s limit. Prices for higher-speed products will remain unregulated, ensuring Openreach and other providers maintain the incentive to invest in advanced networks.
• Shuttering the copper network: Ofcom supports a smooth transition from the legacy copper network to fibre. The regulator believes Openreach should not bear unnecessary costs associated with running two parallel networks and notes that the company will begin to close redundant telephone exchanges in the coming years.
• Looking beyond 2031: Ofcom anticipates continuing its approach of supporting investment and competition if it remains necessary beyond the current five-year review period. If future price controls on Openreach become necessary, the company would have the opportunity to earn a return above its investment costs over time. The long-term vision is that if effective competition develops after 2031, Ofcom’s regulatory intervention will no longer be required.

Ofcom’s proposed regulations are open for consultation until 12 June 2025. The regulator aims to publish its final decisions in March 2026, before the current rules expire at the end of that month.

(Image by Brigitte Werner)

See also: NVIDIA aims to make telecoms networks smarter

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Tags: broadband, connectivity, coverage, europe, full-fibre, Networks, ofcom, regulation, rollout, rural, telecoms, uk