UK telecoms regulator Ofcom has said it will not place price controls on what Openreach charges telecoms providers for full-fibre connections.

Ofcom said the decision is intended to speed up the rollout of full-fibre by “driving competitive investment”.

The move comes weeks after calls ahead of the budget from lobbying groups such as TheCityUK, who said lack of investment in full-fibre endangers Britain’s tech infrastructure, which in the long-run will negatively affect “growth, attractiveness, and the ability to innovate”.

The regulator’s new measures will stay in place for at least ten years.

Ofcom has also frozen the price cap on what Openreach charges for traditional copper-based connections.

Ofcom said they believe these measures will lead to properties in around 70 per cent of the UK having a choice of networks.

The move comes as part of Openreach’s commitment to rolling out full-fibre to a further 3.2 million properties – 10 per cent - in more rural areas, and government plans to cover the remaining 20 per cent of the country through public funding.

Openreach will also now be allowed to turn off copper-based networks in locations where full-fibre internet connections have already been deployed to properties, which Ofcom said was to avoid the unnecessary costs of running two parallel networks.

Ofcom claimed that the copper switch off will be done in a way that will still allow vulnerable people to access services.

In addition, Ofcom announced anti-competitive measures, including giving BT’s rivals better access to Openreach’s underground ducts and telegraph poles and reviewing the discounts Ofcom offers its wholesale customers.

Today’s new regulations will apply to BT from April.

"Rolling out infrastructure is a costly and time-consuming venture, that comes with a long pay-back on investment," said Kester Mann, analyst at the tech consultancy CCS Insight. "This is particularly true in less-densely populated areas where the economics may be considerably less appealing.

He added: "As such, Openreach needed certainty that it would be able to make a sufficient return on investment before embarking on the next stages of roll-out."

Ofcom chief executive Dame Melanie Dawes said: “Over the past year, being connected has never mattered more.”

“But millions of homes are still using the copper lines that were first laid over 100 years ago. Now it’s time to ramp up the rollout of better broadband across the UK.”

“We’re playing our part – setting the right conditions for companies to step up and invest in the country’s full-fibre future.”

She added: “This is a once-in-a-century chance to help make the UK a world-leading digital economy.”

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