Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, whether she has received representations from (a) industry representatives and (b) consumers on BT Openreach’s proposed increase in the price of wholesale broadband; and what steps Ofcom can take under the Wholesale Fixed Telecoms Market Review to alter the level of the increase.

Price regulation in the telecoms market is a matter for Ofcom as an independent regulator. Openreach’s prices are fixed by Ofcom as part of their five-year Wholesale Fixed Telecoms Market Review (WFTMR) process and have been allowed to increase by CPI in order to reflect the significant additional costs faced when deploying new physical infrastructure. There are no plans to change the WFTMR until 2026. This is in line with industry requests for long-term stable regulation that incentivises competition and investment in the fixed telecoms market in order to increase the coverage of gigabit-capable networks as quickly as possible. This approach has been successful, with over 80 companies investing approximately £35 billion to connect premises across the UK.

The Government’s Statement of Strategic Priorities for Ofcom, published in 2019, states that we want to see regulation that incentivises network investment and ensures fair and effective competition between new and existing network operators. The Department regularly meets with Ofcom at all levels to discuss progress against its strategic priorities. My officials also regularly engage with representatives across the telecoms sector. On wholesale price increases specifically, the Department has received representations from both industry members and consumer groups.