Telecoms | UK Regulatory Outlook October 2025

Ofcom further consultation: contract-based pricing protections for WLA (TAR26), refined FTTP connection controls, and a geographic carveout 

On 17 October 2025, Ofcom published its consultation on an alternative, “Contract Focused Approach” to price regulation in the wholesale local access (WLA) markets for the 2026–31 period (TAR26). Instead of imposing charge controls on the 80/20 anchor products, Ofcom may rely on Openreach’s long-term supply agreements where those contracts provide sufficient price certainty. 

If Ofcom ultimately decides not to adopt the contract-based route, it proposes revised charge controls for fibre to the premises (FTTP) 80/20 connections (where copper services are not available): switching from basket controls to single-service caps, incorporating the Equinox 2 £20 connection uplift in the first year (where applicable), and separately capping business FTTP connection variants (Premium and Advanced). 

To reduce market disruption if geographic market boundaries change in TAR26, Ofcom proposes a specific carveout from the “geographic discrimination prohibition” so Openreach can continue charging FTTP connection fees in line with existing Equinox terms that are aligned to the WFTMR21 Area 2/Area 3 boundaries. 

Why it matters 

Pricing certainty: Relying on Openreach contractual commitments could deliver similar consumer and competition outcomes to statutory charge controls, with less regulatory burden and more continuity for internet service providers (ISPs). 

Guardrails remain: Ofcom would interpret the “fair and reasonable” pricing obligation to include excessive pricing of anchor products where charge controls are not applied, and ISPs retain the ability to raise disputes. 

Geographic transitions: The carveout aims to avoid disruptive price changes for FTTP connections in areas that move between market definitions, without undermining the broader prohibition on targeted geographic discounting. 

Key dates 

Responses due: 17 November 2025 

Expected TAR26 final statement: March 2026