Home > Broadband > News > Ofcom unveil changes to help full fibre broadband expansion
Regulator announces new rules for full fibre expansion to encourage development across the UK.
The decision means the fastest fibre packages provided by the Openreach network will continue to free from pricing regulations, allowing the company to further invest into the broadband network.
Openreach have responded positively, saying they will expand fibre to the premises (FTTP) to 20 million homes, but critics of Ofcom's decision say it's too generous.
Separately, the Government has confirmed their gigabit broadband scheme has been renamed Project Gigabit and given some details about the rollout.
Ofcom's decisions on full fibre regulation are part of a five-year review covering the period of April 2021 through to March 2026.
They pinpoint several ways their new rules help to drive competitive investment:
Ofcom also say they will continue to monitor the industry to check the regulations aren't stifling investment from Openreach's competitors.
While the review document is highly technical, it has a few implications for all broadband customers.
In practice, it means:
Reaction from companies has been mixed, with Openreach/BT saying these new rules give them the confidence they need to expand FTTP to 20 million homes by the late 2020s.
Virgin Media, who have been expanding their own Gig1 service to 6.8 million homes over recent years, welcomed the plans as offering longer-term clarity to the industry.
However, TalkTalk (who recently launched FTTP in several cities using the CityFibre network) were critical of the proposals for increasing retail costs.
They also said customers will experience blanket price increases when the majority of them will not see the benefits of full fibre for years to come.
In a separate development, the Department for Digital, Culture, Media and Sport (DCMS) confirmed the name of their full fibre voucher scheme has been changed to Project Gigabit.
This scheme is designed to plug the hard-to-reach gaps in the gigabit-capable broadband rollout, and the first areas to benefit from Government funding have been announced:
Additional contracts will also be given to suppliers in Essex and Dorset, plus funding is being to Scotland under Project Gigabit.
It's currently envisioned 85% of the UK will have gigabit-capable connections by 2025 after the 95% target was quietly scrapped in the November 2020 Spending Review.
Learn more about FTTP in this guide.
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