Resources

INCA’s most substantial submission responds to Ofcom’s Telecoms Access Review, the five-year market review replacing the 2021 WFTMR. It argues that BT has over-recovered approximately £1.2 billion through inflated PIA asset valuations, and that Ofcom’s Area 3 geographic market definitions are flawed.

• Mandate Equivalence of Inputs for PIA and correct BT’s over-recovered PIA asset valuations
• Redefine or remove the Area 3 geographic classification which disadvantages rural altnets
• Apply consistent investment incentives across WLA and LLA markets with a fair bet principle
• Prevent copper retirement threshold changes until altnet FTTP coverage reaches 75%

An anonymised summary of survey responses from 14 PIA users compiled by INCA for Ofcom, covering sub-duct usage, contract duration, billing difficulties, and the Tour of Duty process. Key findings include that 71% find PIA bills difficult to read, 85% cannot reconcile bills with their own data, and D-pole replacement wait times average 6–12 months.

• Recognise that altnets use diverse sub-duct sizes (7mm to 25mm), supporting finer-grained duct pricing increments
• Address the 5-year PIA contract limitation creating investor uncertainty for assets with 20–25 year lifespans
• Reform the PIA billing system, with dispute resolution processes that currently take over a year
• Improve the Tour of Duty process and reduce D-pole replacement wait times (maximum reported: 1,064 days)

INCA’s prioritised list of high-priority PIA changes, split into deployment improvements and operational improvements. Time-sensitive items such as D-pole SLAs and EOI compliance should be addressed under the WFTMR before March 2026, while longer-term items will deliver lasting benefits.

• Introduce an SLA for Openreach to replace D-poles within a maximum of 30 days
• Mandate Openreach accountability for EOI compliance on all new and upgraded PIA services
• Introduce longer minimum PIA licence terms of 10 and 20 years alongside the current 5-year term
• Introduce clear QoS requirements for PIA including billing accuracy and Network Adjustment completion

INCA argues that Ofcom’s PIA price ceilings are unnecessarily complicated and fail to create a level playing field. BT’s internal customers were charged £1.1 billion less than external customers over 2021–2024, and the ‘copper dividend’ from redundant cable sales (over £1 billion) should be passed through as lower PIA prices.

• Simplify PIA pricing to a single price for spine duct and a single price for pole attachments
• Require BT to charge internal customers the same PIA prices as external customers
• Change spine duct pricing from 25mm to 5mm increments to reduce costs for altnets
• Offer a long-term PIA rental option of at least 20 years and reduce prices to offset over-recovery

INCA argues that the current CCA-based approach has resulted in BT over-recovering 1,100% more revenue than the underlying cost base (£11 million by March 2023), primarily driven by large holding gains from inflation. The paper advocates for a disaggregated WACC specific to passive infrastructure.

• Adjust the RAB to remove substantial historic over-recovery, targeting average PIA price reductions of more than 30%
• Introduce a regime where only efficient capex and opex are included in the RAB, switching indexation from RPI to CPI
• Replace the current Openreach WACC with a disaggregated WACC specific to passive infrastructure
• Reform regulatory financial reporting so internal and external PIA usage is shown on a comparable basis

INCA’s submission covers three related markets where BT/Openreach earns excessively high returns. In the IEC market, BT earned a return of 105.5% on external sales in FY23 versus Ofcom’s allowed 6.8% cost of capital. INCA warns BT’s dominance will strengthen as exchanges close.

• Impose cost-based charge controls with starting price adjustments in IEC and ancillary services markets
• Mandate BT to provide cost-based broadband aggregation services in all areas
• Impose a wholesale economic replicability test (price floor) for FTTP services in the WLA market
• Strengthen the ex ante regime to prevent anti-competitive targeted discounts or disaggregated pricing

INCA argues that Openreach, as a vertically integrated organisation, has natural incentives to favour its own downstream operations, and that the cumulative effect of many small differences in treatment amounts to material competitive harm. The paper also raises transparency concerns about BT’s exchange closure programme.

• Strengthen No Undue Discrimination provisions with a move towards Equivalence of Inputs
• Expand the Openreach Monitoring Unit remit to cover intra-Openreach transactions
• Introduce accounting separation for the PIA market and separate reporting for dark fibre costs
• Ensure transparency in BT’s exchange closure programme for external customers

INCA argues that Openreach has failed to deliver Equivalence of Inputs for PIA as required by the 2021 WFTMR, and that Ofcom has not enforced this obligation. The paper calls for a gradual, prioritised migration of PIA systems towards EOI compliance alongside stronger regulatory oversight.

• Mandate Openreach to provide EOI-compliant PIA systems with specific deadlines and KPIs
• Strengthen NUD compliance with clear, transparent parameters replacing the opaque IRO regime
• Oblige Openreach to recover redundant copper cables where duct capacity is insufficient
• Extend the 5-year PIA licence term to longer-term options

INCA raises serious concerns about Openreach’s plan to close approximately 4,500 of its 5,500 exchanges over 10–12 years. The paper warns that closures could materially harm infrastructure competition by disrupting PIA access, removing backhaul meet-me points, and causing duct congestion.

• Mandate maximum clarity and transparency across the entire exchange closure programme
• Openreach to proactively engage with PIA users on uncertainty over PI element availability
• Remove redundant inter-exchange copper cables in advance of closures to free duct space
• Provide DFX-equivalent connectivity from all exchange areas lacking commercial backhaul supply

INCA addresses the structural design of the fibre cost model Ofcom will use to set regulated wholesale prices for the TAR 2026–31 period. It argues that the model must apply the fair bet principle to both BT and efficient altnet competitors, using a forward-looking LRIC+ methodology.

• Apply the fair bet principle to investments by both BT and all efficient network competitors
• Expand the fibre cost model scope beyond access to include core, aggregation and backhaul costs
• Use a forward-looking LRIC+ methodology flexible enough to support representative REO scenarios
• Ensure common cost allocation uses a causal method rather than EPMU

Marked as requiring urgent Ofcom action, this submission details how the PIA remedy is not functioning as an effective competitive tool. Openreach’s PIA products and systems give Openreach material advantages over altnets in network construction and maintenance, with issues spanning D-pole delays, damage claims, billing deficiencies, and poor API implementation.

• Ofcom to actively enforce WFTMR PIA provisions with meaningful SLAs
• Require genuine Equivalence of Inputs for PIA users with a compliance requirement for all new services
• Expand the Openreach Monitoring Unit scope to cover PIA-related matters
• Address specific failures: D-pole delays, network adjustments, damage claims, billing transparency

INCA submits early-stage comments on the assumptions Ofcom should adopt for its Fibre Cost Model, arguing the WFTMR-era model had material shortcomings because it was designed around BT’s network architecture rather than reflecting the costs of a Reasonably Efficient Operator.

• Adopt a bottom-up LRIC approach using empirical data from commercial altnet operators
• Make the FCM open and transparent with regular industry review and early consultation
• Support multiple geotypes, terrain variations, and realistic altnet network topologies
• Adopt the government’s ‘fair bet for all’ definition ensuring access charges incentivise altnet investment

INCA addresses two market definition issues for the TAR: the leased lines product market and the definition of geographic market Area 3. INCA argues that Ethernet circuits used for FTTP backhaul should be brought back into the regulated leased lines market, and proposes a specific geographic market for Project Gigabit funded areas.

• Expand the leased lines product market to include Ethernet circuits used for FTTP backhaul
• Define a specific geographic market for Project Gigabit funded areas
• Collect and compare data on BT’s FTTP presence in Project Gigabit postcodes
• Consider a no-overbuild period matching the BDUK 7-year contract for subsidised areas

INCA provides detailed analysis of the four main wholesale markets defined in the 2021 WFTMR, assessing whether existing definitions remain appropriate for the 2026–31 TAR period. The paper argues the WLAM geographic sub-markets need significant revision as altnets have not yet become ‘established’ competitors.

• Reconsider the definition of ‘established’ in WLAM Area 1 criteria
• Revisit the distinction between WLAM Areas 2 and 3 with transparent evidence
• Apply consistent geographic sub-market criteria across WLAM and BCM markets
• Fundamentally review the IECM definition given closure of 80% of BT exchanges

INCA responds to Ofcom’s proposed Plan of Work for 2026/27, welcoming the commitment to implement the TAR 2026 framework and establish a Competition Supervision Programme covering copper retirement and exchange exit. The submission raises concerns about Ofcom’s perceived bias towards facilitating Openreach’s copper-to-fibre transition rather than protecting network competition, and highlights risks from BT Consumer’s exclusive use of Openreach networks foreclosing altnet market access.

• Publish a clear operating model for the Competition Supervision Programme, treating copper retirement and exchange exit as competition events
• Provide greater transparency on Openreach PIA compliance supervision and altnet complaint escalation
• Proactively monitor competition in non-urban areas, new-build markets, and BT Consumer’s exclusive use of Openreach networks
• Ensure 6 GHz AFC implementation and spectrum sharing deliver practical benefits to fixed wireless operators including altnets

INCA responds to the CMA’s draft guidance on pricing practices under the DMCC Act 2024, arguing that any new transparency rules must align with Ofcom’s existing broadband pricing regulations to avoid contradictory obligations. The submission warns that poorly designed requirements could inadvertently benefit incumbents by constraining altnet pricing flexibility.

• Align CMA pricing guidance with Ofcom’s existing broadband pricing rules
• Preserve pricing flexibility for altnets competing against BT/Openreach
• Guard against incumbents exploiting transparency rules to undermine infrastructure competition
• Consult with Ofcom before finalising guidance affecting telecoms pricing

INCA welcomes the government’s more directive Statement of Strategic Priorities for Ofcom, endorsing the emphasis on infrastructure-based competition as the primary driver of consumer benefit. The submission argues Ofcom has historically prioritised service-level competition on BT’s network over genuine infrastructure competition.

• Government should hold Ofcom accountable for implementing the SSP’s pro-competition priorities
• Mandate Equivalence of Inputs for BT’s Physical Infrastructure Access product
• Treat telecoms as a standalone priority rather than grouping it with postal regulation
• Require Ofcom to report transparently on how its decisions advance infrastructure competition

INCA writes to the Secretary of State for Culture, Media and Sport highlighting three urgent barriers to full-fibre rollout: MDU wayleave difficulties preventing access to flats and apartments, HRB safety legislation inadvertently blocking routine fibre installations, and overly complex permitting processes.

• Reform MDU wayleave processes to enable fibre access to flats and apartments
• Clarify HRB safety regulations so they do not block routine telecoms installations
• Simplify and streamline permitting for fibre network deployment

INCA supports temporary spectrum licences for Starlink in principle but insists that LEO satellite broadband must be treated as a technology of last resort for areas where terrestrial fibre is genuinely unviable. The submission raises national security concerns about reliance on a single US-owned satellite constellation.

• Classify LEO satellite broadband as a technology of last resort, not a substitute for fibre
• Exclude satellite coverage from official broadband coverage statistics and targets
• Impose binding sunset clauses on temporary spectrum licences
• Apply regulatory parity so satellite providers meet the same consumer protection obligations

INCA strongly supports retaining the current customer-base charging model for TOTSCo rather than moving to a per-transaction model. The submission argues that TOTSCo’s costs are largely fixed regardless of switching volume, so a transaction-based model would violate cost causation principles and risk discouraging switching.

• Retain the current customer-base charging model for TOTSCo
• Reject the proposed per-transaction charging model
• Ensure stable and predictable TOTSCo funding that does not discourage switching

INCA submits evidence to the House of Lords Select Committee inquiry on home-based working, arguing that reliable broadband connectivity is a prerequisite for effective remote work. The submission highlights the rural-urban digital divide and MDU access gaps that prevent many workers from accessing full-fibre.

• Recognise reliable broadband as a prerequisite for effective home-based working policy
• Address rural-urban connectivity divides that limit remote working options
• Reform MDU access rules to enable fibre deployment in flats and apartments

INCA responds to Ofcom’s review of alternative dispute resolution for telecoms complaints, supporting retention of the current 8-week ADR access period rather than a proposed reduction to 6 weeks, and requesting a 12-month implementation period for any changes.

• Retain the 8-week ADR access period rather than reducing to 6 weeks
• Allow a 12-month implementation period for any ADR changes, not 6 months
• Support re-approval of ADR schemes with improved KPI frameworks
• Encourage greater engagement between ADR providers and communications providers

In a short Q&A-format submission to the Science and Technology Select Committee, INCA argues the committee should scrutinise the digital divide, noting that 1.6 million people remain offline and that coverage targets alone are insufficient without a complementary adoption strategy.

• Develop a government strategy for gigabit broadband adoption, not just coverage
• Launch a national public information campaign on the benefits of full-fibre
• Initiate new digital inclusion programmes targeting the 1.6 million people still offline

INCA argues to the Business and Trade Committee that full-fibre broadband is a fundamental growth enabler for the UK’s industrial strategy, with altnet investment forecast to reach £25 billion by 2028. The submission positions infrastructure competition as delivering better outcomes than regulated monopoly.

• Embed full-fibre infrastructure competition as a pillar of the UK industrial strategy
• Protect altnet investment conditions to sustain the forecast £25bn investment by 2028
• Ensure regulatory and planning frameworks support continued network rollout
• Recognise telecoms infrastructure as foundational to productivity and growth across all sectors

INCA submits to HM Treasury’s Spending Review, making the economic case for continued investment in full-fibre infrastructure competition as a driver of growth, productivity and regional levelling up. The submission warns that Openreach is anti-competitively overbuilding in areas already served by subsidised altnet networks.

• Retain and reform Project Gigabit funding, halting Openreach overbuild of subsidised areas
• Launch a national public information campaign to drive broadband adoption
• Introduce financial incentives for SME technology and full-fibre adoption
• Develop a new cross-departmental digital inclusion strategy

INCA responds to DSIT’s Technology Adoption Review, positioning full-fibre broadband as the foundational enabler of wider technology adoption. The UK ranks 24th in Europe for full-fibre adoption at just 34.7%, with barriers to market expansion and outdated BDUK subsidy levels holding back progress.

• Remove barriers to altnet market expansion and network utilisation
• Incentivise ISPs to use altnet networks rather than defaulting to Openreach
• Update BDUK subsidy levels to reflect current deployment costs
• Launch a government-led national campaign and fund digital champions to drive adoption

INCA responds to Ofcom’s proposed Plan of Work for 2025/26, expressing concern that telecoms has been grouped with the postal sector rather than treated as a standalone strategic priority. The submission argues this diminishes the attention given to critical issues like the TAR and PIA reform.

• Treat telecoms as a standalone priority area separate from postal regulation
• Prioritise the Telecoms Access Review and PIA reform in Ofcom’s work programme
• Ensure sufficient Ofcom resource is dedicated to infrastructure competition issues
• Increase transparency and stakeholder engagement in Ofcom’s telecoms work

INCA responds to the Transport Select Committee inquiry on street works, arguing that inconsistent and punitive street works regimes across different local authorities create significant cost and delay barriers for altnets, and proposes practical reforms including flexi-permits.

• Introduce flexi-permits to reduce administrative burden on network builders
• Establish a cross-departmental working group on street works and digital infrastructure
• Standardise permit schemes and fee structures across local authorities
• Ensure lane rental and fines regimes do not disproportionately penalise smaller operators

INCA responds to the government’s Digital Inclusion Action Plan consultation, arguing that rural communities and social housing residents should be designated as priority groups. The submission emphasises that coverage alone is insufficient — adoption strategies, digital skills programmes, and affordable access are equally critical.

• Designate rural communities and social housing residents as priority groups for digital inclusion
• Develop a national adoption strategy beyond coverage targets alone
• Recognise and support altnet social tariffs and community digital inclusion programmes
• Fund digital skills and champions programmes in underserved areas

A follow-up joint INCA and ISPA letter reporting that the HRB situation has worsened since May, with members now pausing all rollout to higher-risk buildings and BSR approval timescales extending to 6–12 months. The letter warns that without urgent ministerial intervention, residents will be digitally excluded.

• Take urgent ministerial action to resolve the HRB regulatory blockage
• Issue formal guidance clarifying telecoms exemptions from BSR approval
• Amend HRB Regulations to permanently remove routine telecoms installations from scope

A joint INCA and ISPA letter warning that the Higher-Risk Building Regulations 2023 are causing ambiguity over the definition of ‘material alteration’, blocking routine fibre installations in higher-risk buildings. Tens of thousands of households are on hold, with BSR application backlogs of 6 months.

• Issue immediate formal guidance clarifying that routine telecoms installations are exempt from BSR approval
• Amend the HRB Regulations in the short term to remove telecoms installations from scope

A joint INCA and ISPA report submitted to Defra under the Fourth Adaptation Reporting Power, covering climate risks to telecoms infrastructure from flooding, storms, and temperature extremes. The report argues that full-fibre networks are inherently more resilient than legacy copper, positioning the fibre upgrade as a climate adaptation measure.

• Establish cross-sector coordination on climate adaptation for telecoms infrastructure
• Continue government-industry partnership on climate resilience planning
• Recognise that the copper-to-fibre upgrade inherently improves climate resilience

An INCA policy report documenting the disconnect between the government’s pro-infrastructure-competition policy and Ofcom’s regulatory implementation, which INCA argues continues to favour BT/Openreach. The report presents evidence that BT discounts broadband prices by up to 30% only where infrastructure competition exists.

• Mandate Ofcom compliance with government infrastructure competition policy
• Increase Ofcom transparency and accountability in telecoms regulation
• Structurally separate BT’s duct and pole company from its retail and wholesale operations
• Remove barriers preventing ISPs from using altnet networks and resolve consumer confusion around ‘fibre’