Katie Milligan, Openreach’s Chief Commercial Officer, said: With this in mind, and based on the evidence available to us, we don’t consider Openreach’s new pricing discounts to be anti-competitive.” “Our overriding objective is to bring better broadband to people across the UK, by promoting competitive investment in high-speed networks and making sure there’s a level playing field for all companies. Ofcom added that they have not relied on those commitments in reaching their conclusions. This may provide further clarity for altnets and their investors. However, Openreach has since informed Ofcom that – in response to concerns raised – it plans to make certain commitments regarding its future conduct, including “ not having any current plans to change its Equinox 2 rental prices and no intention to initiate further changes until at least 31st March 2026“. Having carefully assessed information from providers and altnets, Ofcom added that they “ do not have concerns that warrant further investigation at this time“. The regulator added that it has also considered the level of prices under Equinox 2, and concerns among some market participants about Openreach’s practice of discussing and developing discounts with retail ISPs. Openreach: We consider that not preventing Openreach from introducing Equinox 2 allows it to engage in network-based competition, without compromising our objective of promoting investment in gigabit-capable networks. As explained above, we conclude that ISPs will continue to be free to use altnets where they wish to do so. Internet service providers (ISPs): We consider that ISPs are likely to benefit from network-based competition. Our conclusion is therefore that Equinox 2 is consistent with network-based competition. However, we conclude that the conditional terms in the offer do not create a potential barrier to using altnets. In reaching our view, we have considered the impact on:Ĭitizens and consumers: Our conclusion is that Equinox 2 is consistent with promoting investment in gigabit-capable networks by Openreach and other operators and promoting network-based competition, ultimately delivering better consumer outcomes.Īlternative networks: As a result of Equinox 2, ‘altnets’ are likely to face stronger competition from Openreach. Having carefully assessed the range of evidence available to us – including responses to our public consultation – we have decided not to prevent Equinox 2 from being introduced. Today, Ofcom finally passed down their judgement ( here). ones that could mean the Equinox 2 offer may end up below the costs of an idealised operator). The regulator didn’t provide an example of the “ issues” they were talking about, but industry sources did indicate to .uk that one of them may relate to some possible miscalculations in Ofcom’s last wholesale market review (i.e. But in March 2023 the regulator opted to impose a two-month delay on Equinox 2’s implementation after their related consultation resulted in some responses that “ raised issues which require further assessment“. This made it easier for AltNets to grow take-up, attract investment and gain support from third-party ISPs to their equivalent wholesale options.ĭespite the concerns, Ofcom provisionally ruled in February 2023 that Openreach’s new offer was “ not anti-competitive and is consistent with the rules” ( here). Alternative networks carry a lot of risk due to being in the earliest stages of investment and competitive infrastructure build, although they previously enjoyed a full fibre market where Openreach was traditionally more expensive and less dominant in coverage.
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