Ofcom's decision on Openreach’s ‘Equinox 2’ pricing offer

On December 14, 2022, Openreach notified Ofcom of a new pricing offer for its full-fiber services (Equinox 2). This offer gives lower prices to retail providers—such as BT, Sky, TalkTalk, and Vodafone—if they agree to use mainly Openreach’s full-fiber products for new orders instead of its legacy copper products. Having carefully assessed the range of evidence available—including responses to public consultation—Ofcom has decided not to prevent Equinox 2 from being introduced. Ofcom considered the impact on:

• Citizens and consumers: Ofcom's conclusion is that Equinox 2 is consistent with promoting investment in gigabit-capable networks by Openreach and other operators and promoting network-based competition, ultimately delivering better consumer outcomes.
• Alternative networks: As a result of Equinox 2, ‘altnets’ are likely to face stronger competition from Openreach. However, Ofcom concludes that the conditional terms in the offer do not create a potential barrier to using altnets. The conclusion is therefore that Equinox 2 is consistent with network-based competition.
• Internet service providers (ISPs): ISPs are likely to benefit from network-based competition. Ofcom concludes that ISPs will continue to be free to use altnets where they wish to do so.
• Openreach: Not preventing Openreach from introducing Equinox 2 allows it to engage in network-based competition, without compromising the objective of promoting investment in gigabit-capable networks.

Openreach plans to make certain commitments regarding its future conduct, including not having any current plans to change its Equinox 2 rental prices and no intention to initiate further changes until at least March 31, 2026.