BT’s Openreach has been instructed by the UK communications regulator, Ofcom, to withdraw a discounted broadband offer aimed at new customers. The deal, which provided a monthly discount of up to £9.50 for as long as 30 months, was designed to attract subscribers but was deemed by Ofcom to be "not fair and reasonable" and potentially harmful to competition among broadband network providers.

Ofcom’s decision marks a regulatory intervention intended to maintain a level playing field within the broadband market, where Openreach operates as a major infrastructure provider. The watchdog expressed concerns that the substantial discount could disadvantage rival network operators, potentially distorting competition and innovation in the broadband sector.

Responding to the ruling, Openreach stated that it still believes the offer would have been beneficial to both customers and competitive dynamics. The company said it will review Ofcom’s decision and continue to engage with the regulator and its customers moving forward.

The discount offer was launched recently with the goal of making Openreach’s services more attractive to new consumers, potentially increasing market share. However, Ofcom’s final assessment indicated that the pricing strategy could undermine fair competition by creating an uneven market environment, particularly for smaller or emerging broadband providers.

This regulatory action highlights ongoing tensions in the UK telecommunications industry, where balancing consumer benefits with healthy competition remains a key priority for authorities. Ofcom’s intervention aims to ensure that pricing strategies by dominant providers do not restrict market access or consumer choice.

Openreach’s commitment to continued dialogue with the regulator suggests potential for further adjustments to its pricing models in line with Ofcom’s competitive safeguards. The outcome may influence future broadband pricing and promotional approaches across the sector as providers navigate regulatory scrutiny.