Full-fibre internet will reach half of UK homes next month, according to Lindsey Fussell, Ofcom’s group director, network and communications.
In a statement, she added that five years ago, only 6% of homes could get full fibre. But thanks to competition and investment from network builders, that had reached 42% by September last year.
Based on its current data, Ofcom now expects the 50% threshold to be passed in March, and to reach more than 80% within the next two years.
Fussell added that when firms compete to build better networks, it leads to more investment and innovation. So the regulator has set rules for the wholesale broadband market designed to boost competition, and ensure a level playing field among operators like Openreach, Virgin Media and a range of smaller, ‘alternative’ network providers.
In Fussell’s view, the numbers speak for themselves. These challenger firms are doubling their collective footprint each year, and together they expect to reach 11.5 million homes by the end of this year. Investment in independent broadband builders is strong, and expected to reach £17 billion by 2025.
For Ofcom, the alternative networks to Openreach provide a vital part of its strategy for better broadband. They help form the engine room of the UK’s digital infrastructure.
Healthy, effective competition also means keeping a close eye on the biggest network firm, Openreach, to ensure it doesn’t use its market position to distort competition in the market. At the moment, Ofcom says it is examining a new pricing plan from Openreach. It has invited views from across industry on this, and will announce its decision by the end of March.
Alongside that, it is gathering information on whether regular pricing changes, like those announced by Openreach this year, are making it harder for other firms to compete fairly. And in June, it will publish its latest report on whether Openreach is sticking to its rules.
“If we see evidence of any company acting in a way that distorts or prevents competition, we won’t hesitate to step in. Competition is the force that is driving better broadband for everyone. By promoting it, and keeping it fair and effective, we can help secure the UK’s digital future”.
