nexfibre Urges Ofcom to Tighten Oversight Amid Fiber Market Challenges

Nexfibre

UK fiber network challenger, nexfibre, has called on telecoms regulator, Ofcom, to maintain strict oversight of BT and Openreach while supporting industry consolidation as the fiber market faces mounting challenges.

In its newly published report, ‘UK Fibre: A Fork in the Road,’ nexfibre outlined its recommendations ahead of Ofcom’s forthcoming Telecoms Access Review in 2026. The report highlighted the company’s vision for growing its wholesale fiber business and identifies barriers hindering the industry’s progress.

Among its five key recommendations, nexfibre emphasized the need for Ofcom to embrace mergers and acquisitions, arguing that a sustainable level of competition could be achieved by allowing market consolidation on a localized basis.

“To support economically sustainable competition, Ofcom and the CMA should not seek to impose a minimum number of competing networks in a market but allow consolidation to the sustainable number of rivals,” stated the report.

Latest: nexfibre Hits 2 Million Full-Fiber Premises Milestone

Consolidation Gains Momentum

The UK fiber market has already seen notable consolidation, with CityFibre acquiring Lit Fiber and nexfibre partnering with Virgin Media O2 to purchase Upp. Meanwhile, Netomnia and Brsk merged just over six months ago. These moves reflect the pressures smaller alternative networks face amid rising interest rates and slowed fiber deployment in 2024, as noted by nexfibre.

While the company’s stance may appear altruistic, it is backed by well-funded players like InfraVia Capital Partners, Liberty Global, and Telefónica. nexfibre’s calls for consolidation likely align with its strategic ambition to expand through acquisitions.

Read More: Five UK Fiber Altnets Unite for Fair Access and Pricing

Criticism of BT and Openreach

nexfibre also accused BT and its Openreach division of employing anti-competitive practices, citing unfair pricing strategies and exclusionary wholesale pricing tactics. The company referred to the controversial Equinox and Equinox 2 pricing schemes that faced backlash from alternative networks a few years ago.

According to nexfibre, such practices stifle competition and discourage new market entrants. The report urges Ofcom to resist deregulating BT and to adopt stronger measures to address harmful behaviors in the fiber sector.

Also Read: nexfibre Plans Major Network Expansion for 2025-2026

Ofcom’s Balancing Act

Ofcom, which has signaled support for market consolidation, is expected to address these concerns in its upcoming review. However, the regulator’s approach to BT oversight remains uncertain.

The 2021 Wholesale Fixed Telecoms Market Review spurred an acceleration in fiber rollouts by Openreach and rivals like CityFibre and Virgin Media O2, helping to create a more competitive market. nexfibre warns that this progress is at risk without continued intervention.

As the Telecoms Access Review approaches, Ofcom faces the challenge of maintaining market momentum while balancing calls for greater competition and regulation.

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