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Openreach drops price of full fibre broadband infrastructure to new homes by 75 per cent

Press Release   •   Oct 25, 2018 12:38 BST

New low pricing to encourage house builders to provide all new homes with full fibre   

More than 40,000 homes across 5,000 small developments per annum nationwide could benefit

Move comes as Openreach backs Government move to make full fibre mandatory for new builds.

Tens of thousands more new-build homes could be in line for a broadband boost after Openreach, the UK’s digital network business, moves to reduce the price it charges developers for its future-proof ‘Fibre-to-the-Premises’ (FTTP) technology by more than three quarters.

The new pricing means UK house builders will pay just a fraction of the current costs if they ask Openreach to build faster, more reliable FTTP technology to their new homes on small-scale developments – those with fewer than 30 premises[1].

Openreach will offer a revised rate card for developers – enabling them to upgrade broadband connectivity for these smaller new developments[2] - by paying a set contribution for the size of the site that is more than 75 per cent less, on average, on the current contribution of c £25k per site.

The launch of the new scheme on November 1st, comes as the Government plans to consult with developers and network infrastructure providers across the UK this autumn – with the intention of making full fibre broadband infrastructure mandatory for all new build sites.

More than 40,000 new homes across 5,000 small housing developments per annum could stand to benefit from being upgraded to the cutting edge technology – which provides a faster, more stable service that’s ideal for families, home workers and small businesses.

The new low cost initiative builds on Openreach’s existing offer to install FTTP free of charge to all new housing developments of 30 or more homes. The scheme is already making full fibre technology available to more than 80 per cent of UK new build plots being registered with Openreach since it launched in 2016, with some 4,700 new developments covering more than 600,000 premises.

Kim Mears, MD Strategic Infrastructure Development, said: “Our existing offer already provides huge benefits to both buyers and builders alike, but we wanted to go further and make sure everybody moving into a new build property can enjoy the advantages of Fibre-to-the-Premises broadband.

“The UK’s is a world leader in digital infrastructure and services today, but as the digital revolution continues at an ever increasing pace, and our demand for data grows, we need to make sure this country stays ahead of the curve by building fast, reliable networks that cater for all the activities we’ll want to do online in the decades ahead.

“Our new offer provides a low cost option to housebuilders and we hope it will help encourage the adoption of this future-proof technology across smaller developments so that no-one’s left behind.

“We fully support the government’s intention to make full fibre broadband mandatory on all new builds and we’re working closely with DCMS (Dept for Digital, Culture, Media & Sport) and housebuilders on how best to deliver this.”

Minister for Digital Margot James said: "We're building a Britain that's fit for the future, and recently announced our plans for a national full fibre broadband network. Ensuring all new developments, large or small, can access full fibre technology will be instrumental in delivering this, and we welcome Openreach's plans to reduce costs to developers by 75%."

Craig Ferrans, Technical Director for the Home Builders Federation commented: “We are committed to working with service providers such that we can deliver the high-speed, future-proofed broadband that homeowners are looking for.”

According to a recent London School of Economics study of British homebuyers, a good broadband connection now tops off-street parking and access to local amenities as one of the vital deciding factors for people buying a new house. The study also finds that one in ten buyers have walked away from properties with poor internet connection and that broadband is generally connected even before gas. Home owners in London are willing to pay up to 3 per cent above the market price for properities in areas offering very fast broadband speeds.

Providing full fibre to new homes is an important part of Openreach’s commitment to invest in faster, more reliable broadband technology through its new ‘Fibre First’ strategy. The company aims to roll-out full fibre broadband to 3 million households by the end of 2020/21, and wants to reach 10 million by the middle of the next decade if the right conditions are in place.

Developers can take advantage of the new pricing from November 1st by registering their new sites

here

[1]New proposition offers developers a low cost option to provide new housing sites of 2-29 premises with full fibre.

[2]Only those sites with fewer than 30 premises registered with Openreach from 1st November

About Openreach

Openreach is Britain’s digital network business.

We’re 30,400 people who connect homes, mobile phone masts, schools, shops, banks, hospitals, libraries, broadcasters, governments and businesses - large and small - to the world.

Our mission is to build the best possible network, with the highest quality service, making sure that everyone in Britain can be connected.

We work on behalf of more than 600 communications providers like SKY, TalkTalk, Vodafone, and BT, and our fibre broadband network is the biggest in the UK, passing more than 27 million premises. We’re also the platform for Britain’s thriving digital economy, which is the largest in the G20.

We’re working hard to give people the speeds they need to run and enjoy their daily lives. Over the last decade, we’ve invested more than £11 billion into our network and we now manage more than 160 million kilometres of cable stretching from Scotland to Cornwall, from Wales to the east coast. And we’re continuing to take that network further - making superfast broadband speeds available to thousands more homes and businesses every week.

Openreach is a wholly owned and independently governed division of the BT Group, and it is a highly regulated business, with more than 90 per cent of our revenues generated from services that are regulated by Ofcom and any company can access our products under the same prices, terms and conditions.

For the year ended 31 March 2018, we reported revenues of £5.1bn.

For more information, visit openreach.co.uk

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