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Openreach new fibre pricing: Getting aggressive - Venture Insights

Report Overview

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Openreach new fibre pricing: Getting aggressive

PublisherEnders Analysis.
Publish Date July 8, 2021
Sector Mobile, Telecom, UK Telecom.

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Contents

Openreach’s new FTTP discount plan is focused purely on higher speed price discounts in return for accelerated adoption, with no further elements to disadvantage altnet new entrants

The price discounts are, however, very aggressive and get more so over time, and allow Openreach CPs to undercut Virgin Media and retail altnets on gigabit pricing while still making strong margins

The extra discounts do limit an upside for Openreach, but they should also stimulate FTTP take-up, promote market share gain from Virgin Media and altnets, and discourage further competitive build

About Enders Analysis

Figures and Tables

Figure 1: Selected Openreach copper/fibre pricing, excl. VAT (£/month)

Figure 2: Retail entry level versus gigabit pricing, incl. VAT (£/month)