UK telecoms regulator moves to block BT Openreach discount scheme

Openreach, which provides wholesale broadband services to ISPs, including Sky, Vodafone and BT's own retail business, responded by saying its offer had been "put forward in good faith at a time when many households are watching every bill".

"In such a competitive market, we don't believe that regulation should protect poor business models and we disagree with Ofcom's analysis," said Openreach's managing director for commercial James Lowther.

"Openreach must be able to compete, but they cannot use their significant market power to drive other networks out of the market," said Natalie Black, Ofcom's Group Director for Infrastructure and Connectivity.

As the dominant provider, Openreach needs to offer prices which enable it to make a return on its investment while encouraging take-up across the country.

BT and dozens of so-called altnets have invested billions of pounds in fibre networks over the past decade.