UK's Ofcom extends BT Openreach regulation and widens wholesale price caps to 80 Mbps
Change
UK's Ofcom extended regulation of BT Openreach for five years and imposed a cap on the nominal wholesale prices Openreach can charge retail providers leasing its network for download speeds up to 80 Mbit/s.
Why it matters
Wholesale suppliers will be prevented from raising nominal charges above the regulated ceiling for services at or below 80 Mbit/s, constraining their pricing flexibility. Retail providers that buy leased access at those speeds must procure under capped terms rather than negotiate higher wholesale rates.
Implications
- • Retail internet service providers' wholesale procurement teams (for example Vodafone, Sky and smaller network operators) must update procurement contracts and pricing models to reflect the capped nominal wholesale price for speeds up to 80 Mbit/s or risk agreeing terms that are inconsistent with the regulated ceiling.
- • BT Openreach wholesale pricing and compliance teams must publish and implement wholesale tariffs for download speeds up to 80 Mbit/s that do not exceed the cap.
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