BT Group PLC's (LSE:BT.A) Openreach infrastructure arm will face continued competition and price caps under plans unveiled by the industry regulator on Thursday.
Calculating the full-fibre broadband could reach 96% of homes and businesses by 2027 "with the right support", Ofcom announced new proposals to come in next year to sustain competition, regulate Openreach’s wholesale pricing and support improvements to internet speeds in rural locations.
The proposals include strengthening rules on Openreach’s wholesale deals and discounts "so that it cannot unfairly stifle competition", while also introducing new quality standards for full-fibre repairs and installations in areas with limited competition.
Ofcom said: "Reflecting the greater-than-expected level of new infrastructure build, we now propose to identify more of the UK as having competition between broadband networks, or the potential for it.
"Under our plans, competitors will continue to have access to Openreach's ducts and poles, so they can roll out their new full-fibre networks and connect customers quickly and at a lower cost than digging themselves."
Additionally, Ofcom said as competition has developed, it will look to protect consumers by capping the nominal price that Openreach can charge retail providers such as Sky or TalkTalk for faster download speeds.
"The prices of higher-speed products will still be free from regulation, so Openreach and other providers retain the incentive to invest in better networks," the regulator said.
To support a smooth transition from old copper lines to fibre, Ofcom said Openreach "should not have to incur unnecessary costs for running two networks at the same time".
The proposals are open for consultation until 12 June, with a final decision to be published in March before the current rules expire at the end of that month.
** Update: Adds details **