BT Group PLC unit Openreach’s Equinox 2 scheme has taken a potential regulatory hurdle. Ofcom, the UK regulator for the broadcasting and telecommunications sector, said on Wednesday that it will not prevent network cabling and wiring services provider Openreach from introducing its new price offer for fibre broadband, Equinox 2.
“After a careful review of the evidence at our disposal – including the responses to our public consultation – we have decided not to prevent the introduction of Equinox 2,” Ofcom said.
Ofcom said it does not believe the new price cuts are “anti-competitive” and has no objections justifying further investigation.
In December, Openreach published plans to offer lower wholesale prices to other ISPs for access to its fiber network, but the move led to competition concerns from network competitors. Openreach announced plans to discount its fibre broadband products under the Equinox 2 scheme.
In early February, Ofcom said it felt for the time being that it should not intervene in Openreach’s plan. Ofcom invited responses to its consultation by 4 March and planned to publish its final decision by the end of March.
A month later, the regulator warned that it was considering postponing the planned April 1 launch of Equinox 2 and needed more time to make a final decision.
On Wednesday, an Ofcom spokesman said: “Openreach has informed us that – in response to the concerns raised – it intends to make certain commitments regarding its future behaviour, including not having current plans to change its Equinox 2 rents and no intention to initiate any further changes until at least 31 March 2026.
“This can provide more clarity for altnets and their investors. However, we have not relied on these commitments in drawing our conclusions.”
Bt shares were up 0.2% in London on Wednesday morning at 148.75 pence apiece.