Telecoms | UK Regulatory Outlook April 2026

Ofcom publishes statement on its review of call termination markets and end-to-end connectivity condition 

On 26 March 2026, Ofcom published its statement on its reviews of call termination markets and the end-to-end connectivity condition levied on BT, following a consultation process which closed on 10 October 2025.  

Ofcom has outlined its key decisions for the regulatory review period from 1 April 2026 to 31 March 2031: 

• To maintain its price control framework of setting caps on wholesale charges for terminating calls to UK mobile phones, landlines, and 070 numbers and adjust these caps to allow for inflation from 1 June 2026 until 31 March 2031, and allow further yearly inflation adjustments from 1 April 2027.
• To provide greater pricing flexibility to UK termination providers for terminating international calls by updating the "reciprocity rules".
• To maintain network access obligations on all mobile and landline providers relating to call termination to ensure interconnection continues.
• To remove the end-to-end connectivity condition previously imposed on BT from 1 April, while adjusting other targeted requirements.  

Why it matters 

Pricing stability for communications providers: Ofcom's rationale for maintaining charge caps is that without them, terminating providers could exploit their significant market power to refuse access or engage in excessive pricing. Maintaining its charge cap framework provides pricing certainty to communications providers, who should review their commercial arrangements to ensure that the inflation adjustments are accurately reflected.  

Changing landscape: The telecoms market is evolving with the growth of transit services, the migration of landlines to digital technology, widespread use of hosting services, and the increasing adoption of online communication services by both consumers and businesses. While universal calling remains essential, and the wholesale call termination services that underpin it therefore continue to require regulatory oversight, these market developments reduce the risk of interconnection failure and afford providers greater regulatory flexibility as Ofcom streamlines its regulatory processes.  

Greater price flexibility for international termination: Ofcom has simplified the reciprocity regime in two respects to give UK providers greater pricing flexibility. First, where UK and international providers do not provide equivalent termination services and reciprocal rates therefore could not apply, UK providers were previously disadvantaged as they could only charge the UK regulated rate for terminating an overseas call even if the international provider charged a higher termination rate. Ofcom has addressed this imbalance by providing that, where no reciprocal service exists, UK providers may charge up to whichever is the higher of the UK domestic rate or the applicable overseas rate for the relevant service. Second, where the international provider does provide a reciprocal termination service, rather than requiring UK providers to track individual provider-specific rates, they may now set their termination rates by reference to the international regulated rate for the reciprocal service and price up to whichever is the higher of the rate charged by the overseas provider or the international regulated price cap.  

Impact on other providers: Ofcom considered whether revoking the End-to-End Connectivity Condition could lead BT to "purchase termination from small providers or new entrants on unreasonable terms and conditions". However, Ofcom concluded that such a risk has diminished significantly since the condition was introduced in 2006, owing to a combination of factors including substantial reductions in regulated call termination rates, the growth of transit services, and the widespread availability of hosting services. 

Key dates 

Review period: 1 April 2026 to 31 March 2031 

E2E Condition on BT revoked: 1 April 2026 

Inflation adjusted mobile and fixed call termination caps take effect from: 1 June 2026 

Annual inflation adjustments to mobile and fixed call termination caps apply yearly from: 1 April 2027 

Deadline for Ofcom to complete its next statutory review: 31 March 2031 

Ofcom publishes statement on its decision to make Wireless Telegraphy (Exemption) (Amendment) (No.2) Regulations 2026 

On 15 April 2026, Ofcom published its statement confirming its decision to make the Wireless Telegraphy (Exemption) (Amendment) (No. 2) Regulations 2026, following a notice of proposed regulations published on 11 December 2025. 

As part of a wider package of changes, the regulations update the existing licence exemption for High Density Fixed Satellite Systems (HDFSS) to extend the frequency range in which they can operate in the 28 GHz band. 

Ofcom also confirmed it would update and publish the related technical rulebook, Interface Requirement IR 2066, to reflect the revised frequency ranges now available to HDFSS systems.  

Why it matters 

Better performance and greater capacity: The extension of the permitted frequency range within the 28 GHz band means that HDFSS terminals have access to more spectrum, supporting better performance and reduced congestion for satellite broadband services in the UK. 

Exemption remains: It is an offence to install or use wireless telegraphy apparatus without holding a licence granted by Ofcom unless the use of such equipment is exempted. HDFSS systems remain within the licence-exempt category, meaning that operators and users can deploy and use these terminals without going through a licensing process, avoiding regulatory burden. 

Updated technical standards: The UK Interface Requirement IR 2066 governing HDFSS will be updated and published on the Ofcom website. This is the technical rulebook that governs how HDFSS terminals must operate, including power limits and other conditions designed to prevent interference with other spectrum users. Operators should ensure their equipment complies with the updated version of IR 2066 once published. 

The regulations come into force on 29 April 2026.