Openreach Freezes Prices for Faster Broadband Until 2027, Inflation Increases Return Later

Openreach will hold wholesale prices steady for faster full-fibre broadband connections until April 2027, giving internet service providers a rare two-year reprieve from annual increases.

The infrastructure giant, which supplies broadband to BT, Sky, TalkTalk and hundreds of smaller providers, announced the pricing freeze applies to its Equinox incentive programme covering connections from 150Mbps to 10Gbps speeds.

Two Years of Stable Pricing

The sixth year of Equinox pricing, running from April 2026 to April 2027, will see no adjustments to wholesale rates. This represents an extension of the current fifth year, which also maintains frozen prices through March 2026.

"We've locked in our rates for the next 24 months on the products that matter most for driving full-fibre adoption," said Philip Jansen, speaking at a wholesale partners event in Birmingham last week.

The pricing stability covers Openreach's GEA (Generic Ethernet Access) products, which form the technical backbone of most consumer broadband packages across Britain.

Inflation Returns in 2028

The price freeze ends abruptly in April 2027. From that date, Openreach will resume annual increases tied to the Consumer Price Index, with rises capped at CPI plus 3.9 per cent.

Year seven pricing, kicking in from April 2027, will apply the CPI figure published in January 2027. Current CPI stands at 2.5 per cent, which would translate to a 6.4 per cent wholesale price increase if inflation remains steady.

Providers purchasing slower 40Mbps and 80Mbps products face immediate annual increases throughout the freeze period, with those connections subject to CPI plus 3.9 per cent rises each April.

Driving Faster Connections

Openreach launched Equinox in 2021 to accelerate the shift from copper-based ADSL and FTTC (fibre to the cabinet) services to full-fibre connections reaching directly into homes.

The programme offers substantial discounts on faster speed tiers compared to slower alternatives. A 500Mbps connection costs providers less per month than a 40Mbps service in many areas.

"The economics are deliberately inverted," explained Sarah Mitchell, chief technology officer at a Manchester-based internet service provider. "Openreach wants us selling gigabit-capable services, not legacy products. The pricing reflects that strategic push."

Britain had 14.8 million full-fibre broadband connections as of December 2024, representing 48 per cent of all fixed broadband lines. Openreach accounts for roughly 60 per cent of that total.

Regional Variations Persist

Not all postcodes benefit equally from Equinox pricing. The programme applies only in areas where Openreach has completed full-fibre rollout and customers can order connections immediately.

Rural areas waiting for fibre deployment remain on older pricing structures. Properties in parts of Wales, northern Scotland and southwest England won't see Equinox rates until infrastructure reaches their streets.

"We're still quoting copper prices to customers in Devon villages while Manchester suburbs get gigabit speeds at lower wholesale costs," said James Peterson, operations director for a regional provider serving 45,000 customers across three counties. "The digital divide has a pricing component most people don't see."

Openreach plans to reach 25 million premises with full fibre by December 2026, covering roughly 80 per cent of British homes and businesses.

Impact on Consumer Bills

The wholesale price freeze doesn't guarantee stable retail prices. Internet service providers typically increase consumer bills annually regardless of wholesale cost movements.

BT Consumer raised prices by £3 to £4 monthly in March 2024 despite wholesale costs remaining flat. Sky Broadband added £3.60 to average bills in April 2024, citing operational expenses beyond connectivity costs.

"Wholesale represents maybe 25 to 30 per cent of our total cost base," explained Robert Chen, finance director at a provider with 180,000 subscribers in London and Birmingham. "Staff wages, network maintenance, customer service centres, marketing, those all face inflation pressure. We can't absorb everything."

Consumer broadband bills have risen 18 per cent since January 2022, according to Ofcom data published in November 2024. Average monthly costs now stand at £32.50 for standard packages and £44.20 for ultrafast connections above 300Mbps.

Alternative Networks Watch Closely

Competitors building rival full-fibre networks face pressure to match or undercut Openreach wholesale pricing. CityFibre, Virgin Media O2, Netomnia and dozens of smaller alternative network operators compete for the same internet service provider customers.

CityFibre announced its own pricing for 2026 in November, holding rates steady through March 2027 before implementing CPI plus 3 per cent increases.

"The market leader sets expectations," said telecommunications analyst Rebecca Williams at a London investment firm. "When Openreach freezes prices, competitors must respond or risk losing wholesale customers to the incumbent."

Alternative networks passed 12.3 million premises with full fibre as of September 2024, with actual connections reaching 2.8 million properties.

Business Broadband Affected

Equinox pricing extends beyond residential connections to small business broadband packages using the same GEA technology.

Companies purchasing dedicated leased lines or Ethernet services through separate Openreach products face different pricing structures not covered by the Equinox freeze.

"Our office connection uses the same fibre as residential but we pay through a business-grade product," said Martin Taylor, IT manager for a 35-person accountancy practice in Bristol. "We'll see the April increases hit our renewal quote regardless of what happens to home broadband wholesale prices."

Openreach maintains separate pricing for approximately 180,000 business premises using higher-specification connectivity products with guaranteed service levels and faster repair commitments.

What Happens After 2028

Openreach hasn't committed to Equinox programme duration beyond year seven. The initiative could continue, evolve or terminate depending on full-fibre adoption rates and competitive dynamics.

Regulator Ofcom reviews wholesale broadband pricing every three years. The next assessment begins in late 2025, potentially changing the framework governing how Openreach sets rates.

Industry expectations point toward continued inflation-linked increases becoming permanent once the current freeze period ends, with providers calculating 5 to 7 per cent annual wholesale cost growth through 2030.