Ofcom has published its proposals for the new Telecoms Access Review 2026 (TAR), which it hopes will improve competition and investment in gigabit-capable networks, maintaining the competitive landscape created by the preceding Wholesale Fixed Telecoms Market Review 2021 and go further to promote better outcomes for end-users.
The regulator plans to maintain pro-competition regulation to bring faster, more reliable connections to businesses and communities across the UK to boost economic growth.
To date, full fibre has been rolled out to almost seven in 10 UK homes and offices and is on target to be available to almost the entire country by 2027, says Ofcom.
The initial regulatory framework was outlined in its last review, and in the new bill, Ofcom will build upon its previous regulations, setting out the new proposals that will help provide fast and reliable broadband to people and businesses nationwide.
“The roll out of full fibre across the UK is a British infrastructure success story,” said Natalie Black, Ofcom’s group director for networks and communications. “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. This means that UK people and businesses will get faster, better broadband, fuelling economic growth and enabling technologies like artificial intelligence to benefit everyone.”
The regulator has spent the past year collating evidence and the latest data on the state of the current market and industry feedback from telecoms companies, which shows that full-fibre coverage could reach 96 per cent by 2027 with the right regulation and support.
Industry investment in the rollout has been between £3 billion and £6 billion each year, with around seven in 10 premises (69 per cent or 20.7 million) now having access to full fibre, while coverage of gigabit-capable networks has increased from 11.6 million premises (40 per cent) in 2021 to 25 million (83 per cent) last year.
For customers, more than seven in 10 premises can now choose between two or more different broadband networks.
Despite the progress that has been made, Ofcom said that it recognised further investment was still needed for the final push of the rollout to deliver high-quality services to all parts of the UK.
The regulator said that while competition from new broadband networks was developing, this will still take time to become sustainable, as new entrants strive to build their customer base and achieve scale.
It also believes attracting customers from legacy networks to full fibre is key to the success of all providers, with take-up increasing steadily.
To help maintain industry momentum and support further rollout, Ofcom has set out how it proposes to regulate the wholesale broadband markets from 2026 to 2031 as part of TAR.
Building on the 2021 regulations, Ofcom hopes its proposed framework will provide stability and clarity for the market, promote fair and sustainable competition and help ensure the availability of full-fibre broadband across more of the UK.
Ofcom’s proposals include:
• Promoting competition. Ofcom will promote investment in gigabit-capable networks through network competition in areas where this is sustainable, and proposes to identify more of the UK as having competition between broadband networks, or the potential for it. Under these plans, competitors will continue to have access to Openreach’s ducts and poles through its PIA products, so they can roll out their new networks and connect customers quickly and at a lower cost. It also proposes strengthening its rules around Openreach’s wholesale deals and discounts, so that there is a level playing field.
• Fibre roll-out for rural Britain: In the most rural or remote parts of the country where investment in new networks is less commercially attractive, Ofcom will focus on promoting full fibre build by Openreach. Separately, where Openreach is unlikely to face competition, it’s also proposing new backstop standards around the speed and quality of repairs and installations for full-fibre services.
• Protecting customers. Ofcom will regulate fair wholesale prices for Openreach and other networks, so that while network competition develops, it will protect consumers by capping the price that Openreach can charge retail providers for download speeds up to 80Mbps, rather than 40Mbps at present. The prices of higher-speed products will still be free from regulation, so Openreach and other providers retain the incentive to invest in better networks.
• Different wholesale broadband regulation across the UK. This will reflect the potential for effective network competition, as Ofcom does not believe there are any areas yet where competition is sufficiently well-established or effective.
• Closing the copper network. Ofcom supports a smooth transition from the legacy old copper lines to fibre networks and has said that Openreach shouldn’t have to incur unnecessary costs for running two parallel networks. It will also begin to close redundant telephone exchanges over the coming years, currently negotiating with customers on specific terms of exit.
• Going beyond 2031. Ofcom will continue its approach of supporting investment and competition if it’s still emerging beyond 2031. If there is a need to use cost-based price controls on Openreach in the future, the regulator will allow BT to have the opportunity to earn a return above the cost of its investment. After 2031, if effective competition has developed, Ofcom said that there will be no need for it to regulate further.
Ofcom’s proposals are open for consultation until 12 June 2025, with its decisions published in March 2026 before the current rules expire at the end of that month.
