- nexfibre, AllPoints Fibre, Community Fibre, Gigaclear, and Netomnia and Brsk establish new ‘PIA Coalition’ – calling on Ofcom to ensure a level playing field for access to Openreach passive infrastructure in its upcoming Telecoms Access Review
- Economic analysis has identified a material gap in PIA pricing that leads to alternative network operators paying significantly more to access ducts and poles than Openreach
- Ofcom’s PIA regulation has been a success story but issues need remedying to facilitate continued UK fibre rollout, future investment and consumer choice
02 August 2024, London – Five of the UK’s largest alternative fibre network operators have joined forces to push for fairer access to physical infrastructure operated by Openreach, it can be revealed today.
Initiated by nexfibre, the Physical Infrastructure Access (PIA) Coalition also comprises AllPoints Fibre, Community Fibre, Gigaclear, and newly-merged Netomnia and Brsk. Together, these members represent over 5 million premises ready for service, making the coalition one of the largest users of the PIA network. The Coalition has conducted a detailed economic analysis of Openreach PIA regulation (carried out by SPC Network), revealing an imbalance between Openreach and alternative network operators, particularly in pricing, where alternative operators pay significantly more to access ducts and poles than Openreach charges itself. The Coalition is calling for Ofcom – in its upcoming Telecoms Access Review (TAR) – to act and ensure all users of PIA have a level playing field for access to infrastructure.
The group warn that failure to act will harm competition and investment in the long-term, in turn threatening the progress of fibre rollout to homes and businesses and damaging the UK’s ability to compete internationally.
Sharing of Openreach poles and ducts with other operators has been one of the successes of Ofcom’s 2021 market review and a major driver of accelerated fibre broadband rollout in recent years. Ofcom regulates PIA products through a series of T&Cs and pricing and is responsible for looking out for the interests of all PIA users.
Under Ofcom regulations, PIA access must be offered by Openreach in a way that does not discriminate against third party users. The PIA Coalition has identified evidence to suggest that this is not happening under the pricing structure.
Giles Rowbotham, spokesperson for the PIA Coalition, and General Counsel and Chief Development Officer at nexfibre, said:
“At the moment there is not a level playing field between Openreach and alternative network operators on PIA. Alternative network operators pay significantly more to access infrastructure compared to Openreach. If left unremedied, this disparity risks choking investment, slowing down the rollout of high-speed broadband across the UK, and therefore limiting consumer choice. We’re calling on Ofcom to act in its upcoming market review to ensure a level playing field for all providers and fair and equal access to critical infrastructure. The Coalition has presented a detailed analysis to the regulator and to Openreach and we look forward to engaging collaboratively and constructively on this issue.”
Ofcom’s upcoming Telecoms Access Review will assess the fixed telecoms market, the challenges it faces and set-out regulatory frameworks for 2026-31. The decisions made will have far-reaching consequences for the future of the UK’s digital infrastructure, economy and society. Without decisive action, policymakers risk losing the momentum the market has worked so hard to build.
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Notes to Editors
- nexfibre is a joint venture between InfraVia Capital Partners, Liberty Global and Telefónica and is financed with £4.5 billion of equity and debt investment. It will initially roll out fibre to 5 million premises by 2026, with the opportunity to expand to an additional 2 million premises.
- APFN is an open access wholesale full fibre provider business, providing cutting edge integration and streamlined workflows for nationwide wholesale connectivity across its own network, Openreach, CityFibre and BT Wholesale. APFN’s anchor tenant Cuckoo is part of the same group but a standalone business. APFN manages networks, physical infrastructure, and service. Cuckoo operates as APFN’s first customer ISP. APFN is backed by Fern Trading, who have committed to invest £1bn in the sector.
- Community Fibre is by far the biggest 100% full fibre broadband provider in London. As of November 2023, it has passed 1.3 million homes across and around the capital, with more than 185,000 London-based businesses within 200 metres of Community Fibre’s network footprint. As the UK’s top ranked broadband provider (Which? 2024), it is bringing Gigafast broadband at unbeatable speeds and prices to the capital, helping Londoners do more and be more.
- Gigaclear has been building and operating full-fibre networks since 2010 and has firmly established itself as the largest rural alternative network (altnet) in the UK. No other alt-net offers the same scale of rural connectivity to businesses and homes. Gigaclear employs more than 750 people and serves over 100,000 customers across 26 counties. The business has plans to reach one million rural homes and businesses in 2027.
- ‘Netomnia and Brsk’ is the UK’s fourth-largest full-fibre network. Born from the visionary merger with an ambitious rollout plan of reaching 3 million premises by 2025, fuelled by over £1.3 billion in funding, it is delivering a robust and reliable network using it capital-efficient platform. Netomnia and Brsk network is where the most powerful internet lives, ushering in a new era of internet connectivity for the UK.
- SPC Network was founded in 2003 and has worked for over 50 clients worldwide. We undertake Strategic Policy Development for clients in platform and networked industries by combining the knowledge of our consultants with specific and valuable skills to ensure rigorous analysis and exceptional advice. Our core consultancy team and network of partners have substantial experience in industry and consulting and so we understand the practical issues and challenges facing the market. Through advanced academic training, we have developed the key skills and rigorous approach needed to support our clients win the policy debate.
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