Ofcom has permanently blocked an Openreach discount for internet providers that brought more new customers onto its full-fibre network than usual. The regulator said the offer was not fair and reasonable because rival networks might be unable to match its prices while recovering their costs, potentially making it harder for them to attract customers and compete.

The offer included a £35 connection discount and monthly reductions of up to £9.50 for as long as 30 months, applying to sign-ups above an agreed baseline. Ofcom allowed two other pricing offers to proceed, including a £50 rebate in areas served by Virgin Media O2, which it judged unlikely to harm long-term competition. Rival network operators welcomed the intervention, while Openreach said it would review the ruling and maintained that its offer would have benefited customers.