Virgin Media (NASDAQ:VMED) O2 has complained that a new wholesale pricing structure being offered by BT Group PLC (LSE:BT.A) for its new fast fibre network threatens competition and the UK’s switch to speedier broadband.
Discounts being offered to broadband retailers could push smaller operators out of these areas, said Virgin Media (NASDAQ:VMED) O2, especially if Openreach, BT’s broadband arm, offers new customers incentives such as lower rentals and connection deals.
In a submission to the regulator and reported by the Telegraph, Virgin Media O2 said: “If Ofcom permits Openreach to implement the Equinox offer as it stands, Openreach will consider that it has the green light to go further.
“This would be a dangerous precedent to be setting. Openreach would subsequently have a clear incentive to surgically target further discounts, so as to exacerbate the competitive disadvantage of the alt-nets.
“The effect will be to reduce the incentives to continue to invest further.”
Regulator Ofcom has called for feedback on Openreach’s new tariffs by 6 September having provisionally ruled that there was no need to take action at this time.
Openreach's new prices come in from 1 October 2021.