The UK is on course to provide nearly every household with full-fibre broadband by 2027, according to Ofcom, marking a significant milestone in the country’s digital infrastructure goals.
In its latest telecoms access review, which will shape broadband regulation from 2026 to 2031, the communications regulator projected that 96% of homes and businesses could be connected to high-speed fibre within the next two years, up from 69% today.
Ofcom emphasized that its strategy would prioritize “clarity and stability” rather than imposing stricter regulations, aiming to sustain the rapid progress of the rollout.
Boosting Economic Growth and Innovation
Natalie Black, Ofcom’s group director for networks and communications, highlighted the broader economic benefits of improved broadband connectivity.
“It means that people and businesses in nearly all corners of the country will get faster, better broadband, fuelling economic growth and enabling technologies like artificial intelligence to benefit everyone,” she said.
To foster fair competition, Ofcom confirmed that it would maintain restrictions on certain discounting practices by Openreach, the broadband division of BT. Additionally, the regulator extended the notice period for Openreach’s discount offers from 90 to 120 days to prevent anti-competitive pricing that could discourage internet providers from using alternative networks.
Industry Reactions and Market Competition
Mark Shurmer, managing director for regulation at Openreach, welcomed Ofcom’s approach but stressed the importance of continued collaboration.
“We will work closely with Ofcom to ensure the rules continue to prioritise investment, growth, and customer satisfaction across the country,” he stated.
The regulator also indicated that it may scale back regulations after 2031 if a healthy competitive market emerges between Openreach and alternative network providers (altnets) such as Virgin Media O2 and CityFibre.
Kester Mann of CCS Insight noted that any relaxation of regulation would depend on key factors, including rural connectivity, network performance, and market competition.
Greg Mesch, CEO of CityFibre, described the review as a “major milestone” for competition in the broadband market.
“Ofcom’s recognition that there’s more to do is critical, and we welcome the clear support for further investment and the network competition the UK deserves,” he said.
Challenges for Smaller Providers
Despite the progress, challenges remain for smaller alternative network providers, which are struggling with high borrowing costs and slower customer growth. Market speculation continues regarding potential consolidations as some providers face difficulties scaling up.
Ofcom signaled that it does not intend to introduce stricter cost-based price controls on fibre networks, even beyond 2031. This decision aims to ensure that infrastructure providers can maintain a return on their investments while continuing to expand their services.
A Digital Future for the UK
The nationwide full-fibre rollout is regarded as a crucial step in enhancing the UK’s productivity, innovation, and digital economy. With strong backing from both government and regulators, and sustained investment from private sector players, Britain’s broadband landscape is set for a transformative shift over the next two years.
