Ofcom has launched a consultation proposing that Openreach withdraw its recently launched fiber discount scheme amid pricing concerns. The regulator said the proposal targets the Incremental New to Openreach Offer, which Openreach introduced in June and which gives internet service providers monthly payments tied to adding new full-fiber subscribers.
Under the contested program, ISPs receive discounts only for new customers that push sign-ups above their normal or typical volumes. The payment structure provides monthly discounts that can reach up to A39.50 per qualifying customer, and the payments may continue for a period of up to 30 months for each eligible addition.
Ofcom framed its proposed intervention on the principle of ensuring fair and reasonable pricing. In evaluating commercial offers, the regulator said it applies three criteria set out in its Telecoms Access Review 2026-31. Those criteria focus on:
- conditional terms, including volume and service requirements;
- any discriminatory geographic discounts; and
- standards for fair pricing.
The consultation seeks views on whether the Incremental New to Openreach Offer meets those tests and whether a withdrawal direction is an appropriate remedy. Ofcom s intervention is aimed specifically at the structure and pricing of the commercial offer rather than broader network deployment matters.
Market commentators have offered a possible near-term outcome. Citi analysts told clients they expect Openreach could return with a modified version of the incentive, one which features reduced discount levels compared with the current iteration.
The consultation process announced by Ofcom marks a formal step in assessing the compliance of Openreach s commercial incentives with the regulator s access framework. The outcome remains dependent on the consultation responses and any subsequent decision by Ofcom.
Summary
Ofcom is consulting on directing Openreach to withdraw its Incremental New to Openreach Offer, citing fair-pricing concerns and assessment against the Telecoms Access Review 2026-31 criteria. The programme provides monthly discounts of up to A39.50 per new full-fiber customer for up to 30 months, limited to customers exceeding an ISP s typical sign-up volumes. Citi analysts expect a potential revised offer with lower discounts.