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The Independent Networks Co-operative Association (INCA), which represents many of the United Kingdom’s alternative network operators, has today set out its formal response to Ofcom’s current Telecoms Access Review 2026 (TAR) and warned that the proposals risk harming altnets in the business market, while also handing Openreach too much power.
The 2026 TAR is a wide-ranging market study, which is typically only conducted every 5-years and is looking to make changes that “promote competition and investment” in gigabit broadband and business connectivity. But such things are always easier said than done, with vested interests frequently clashing.
So far, we’ve already seen various alternative network (altnet) providers (here, here and here) and even Openreach (here) setting out what changes they think Ofcom’s TAR should make. Today it was INCA’s turn to inject their thoughts into that debate, on behalf of a much wider group of altnets.
In its formal response to the consultation, INCA has urged Ofcom to adopt a “forward-looking regulatory framework that unlocks long-term private investment“, recognise the “crucial role Altnets are playing” in driving full-fibre (FTTP) rollout in rural and hard-to-reach communities, and to ensure that future regulation “does not further entrench the market power of the incumbent” (Openreach).
In particular, INCA has warned that designating Openreach as the default provider in areas where network competition is presumed to be unviable would be “unjustified and short-sighted“. INCA has also claimed that Ofcom has “erred in its data collection” resulting in proposals which will “harm Altnets in the business market“.
INCA’s Recommendations for Ofcom
➤ Ensuring investment incentives are aligned across all markets served by the same physical networks.
➤ Regulating consistently across residential and business markets to ensure a level playing field for Altnets in competition with BT.
➤ Require BT to transparently co-develop improvements to Physical Infrastructure Access with customers.
➤ Ensuring that PIA asset valuations are truly representative and ‘fair share’ rules are applied to Openreach as well as other users of PIA assets.
➤ Support emerging Altnets through robust wholesale pricing safeguards.
➤ Manage the copper-to-fibre transition in a way which supports – not undermines – Altnet network deployments.
The talk around ensuring fair pricing on access to Openreach’s existing cable ducts and poles is a common request among altnets. The prices are ultimately set by Ofcom, not Openreach, and they’re supposed to be purposely set at a level which supports entry into the market by such altnets. But at the same time, Ofcom also needs to ensure that Openreach can get a fair return on the investment they make into building and maintaining the related infrastructure.
Similarly, Ofcom does have to recognise the shrinking size of non-competitive areas (defined as Area 3 – mostly rural locations – below), which back in 2021 accounted for 30% of the UK and this time around has been reduced to a proposed level of just 10%. This reflects the positive progress being made in fibre network expansion and also means that Openreach will benefit from softer regulation across more of the UK.
On the flip side, rural broadband operator Gigaclear recently warned Ofcom that Area 3 is now “far too small” (here) and highlighted how “just because an altnet has built it, doesn’t immediately make it commercially viable for two operators“. Nevertheless, Ofcom’s final proposal has opted to retain the 10% size for Area 3, which Gigaclear and others fear will have a negative “impact on future investment“.
Paddy Paddison, Chief Executive of INCA, said:
“The TAR will set the direction of travel for UK digital infrastructure. Altnets have proven they can deliver gigabit networks at scale and what is now needed is a regulatory environment which supports sustainable competition and investment in every part of the market, from urban businesses to rural homes.
There is no justification for limiting delivery in less competitive areas to a single provider. Such a decision massively underestimates the scale and success of full fibre network deployment by Altnets, whose coverage has increased by 27% year-on-year to reach 16.4m premises by the end of 2024, delivering connectivity to a third of UK premises in harder to reach rural areas, and is at odds with government policy where Project Gigabit has provided public funding to Altnets to build networks in precisely those locations.
We urge Ofcom to adopt bold, evidence-based measures that support a vibrant, innovative and fair telecoms market which will benefit UK consumers and investors.”
The reality here is that most of the big changes occurred in Ofcom’s previous 2021 market review, which was intended to set a strategy for the next decade (until 2031). In that sense, the regulator’s 2026 review is not currently looking to make many truly major or radical changes, and instead represents more of a tweaking of the existing approach.
However, balancing so many different vested interests is no mean feat, and we’ll have to wait a few more months before the regulator sets out their final position. This will inevitably always result in some winners and losers. Altnets, which are currently under significant strain (rising build costs, competition, high interest rates etc.) – causing many to slow or even pause their builds (as well as cut jobs), are naturally hoping for something more favourable.