UK Fibre Sector Unites Against Ofcom’s 2026 TAR Proposals

Growing alignment has emerged within the UK’s fibre sector with both alternative network providers (altnets) and the incumbent Openreach voicing strong concerns over Ofcom’s draft Telecoms Access Review (TAR) proposals for 2026-2031.

The consultation, which determines the regulatory framework for fixed broadband and business connectivity from April 2026, has ignited a robust debate throughout the telecommunications ecosystem.

Both competitors and dominant players warn that the new framework risks undermining recent industry momentum and clouding the investment outlook at a critical juncture for the roll-out of gigabit-capable infrastructure.

Background: significant progress, mounting challenges

Since the precedent set by the 2021 Wholesale Fixed Telecoms Market Review (WFTMR).

Despite clear achievements, the next phase of fibre deployment involves more complex and cost-intensive rural areas, necessitating continued investment certainty and competitive safeguards.

TAR 2026: frustration with regulatory re-zoning

Ofcom’s initial re-zoning proposals, intended to refine geographic market boundaries and maintain the balance between regulation and competition, have proven contentious.

Many in the industry are seemingly puzzled by what they see as a misstep that could hinder the sector’s ability to deliver nationwide fibre and stifle innovation.

A senior executive at one leading alternative network (altnet) described the proposals as “hard to decipher” in the context of the market’s pace. 

An Openreach spokesperson, reflecting the surprising unity, noted: “While we support regulatory stability, the current direction risks undoing much of the progress we have collectively worked towards. Investment decisions depend on clarity and fairness in market definitions and obligations."

Regulatory certainty drives investment

Industry leaders broadly agree that regulatory uncertainty risks chilling the investment climate. 

Sean Royce, CEO of Quickline, welcomed steps to support rural coverage but warned: “Ensuring regulatory certainty is crucial… it enables network operators to develop sustainable business models and guarantees that products and services are priced fairly.

"Confidence in investment decisions is vital for advancing UK connectivity."

Greg Mesch, CEO of CityFibre, highlighted the milestone, remarking: “Millions of homes and businesses stand to benefit from gigabit-capable broadband, with greater choice and lower prices, but Ofcom’s recognition that there’s more to do is critical and we welcome the clear support for further investment and network competition."

Impact on market dynamics

Telecoms analysts warn that the new zonal definitions—corresponding to “Areas 1, 2 and 3”—must accurately reflect real progress and ongoing challenges.

As one consultant from Assembly Research pointed out at the Westminster eForum conference: “Ofcom faces the delicate task of updating geographic market boundaries without undermining the incentives that prompted so much recent private capital.

"A too-hasty re-categorisation may inadvertently favour incumbent interests or expose altnets to greater risk.”

The Independent Networks Co-operative Association (INCA) urged the regulator “not to further entrench the market power of the incumbent", advocating for a framework that “unlocks long-term private investment” and recognises “the crucial role altnets are playing in driving full-fibre in rural and hard-to-reach communities”.

The consultation period, which closed in June 2025, promises continued lively debate as the sector seeks clearer assurances and targeted policy adjustments. Decisions are expected by March 2026, with stakeholders calling for Ofcom to:

• Maintain strong protections against anti-competitive behaviour.
• Ensure geographic market zones reflect real-world deployment, not just theoretical benchmarks.
• Continuously promote competition and support smaller alternative networks, especially in less profitable rural-urban fringes.

Natalie Black, Ofcom’s Group Director, captured the regulator’s position clearly at the Westminster eForum policy conference in July 2025:

“We do not take momentum for granted… we are setting out how we can work with the sector to finish the job.”

The broadband industry is now looking for regulatory decisions that support—rather than slow—Britain’s progress in building a world-class digital infrastructure.