Tensions flared over the nexfibre/Netomnia deal and Openreach’s fibre discounts, as data centres and the UK’s future DTT switch-off took AI’s place as prominent themes for this year
Connected Britain opened with operator criticism of the UK’s planning system as a key barrier to network investment
On 9 September 2026, in London, Connected Britain started (much like last year) with a musical number, reminding attendees that there is no place they would rather be. The event itself kicked off with a quick proceeding of keynote speakers. Natalie Ceeney (Chair, Connection Project) highlighted the need to reduce the digital divide, stating that it's "increasingly hard to live in today's society" if you cannot participate online. With regards to the proposed switch-off of digital terrestrial television (DTT) services by either 2034 or 2044, Ceeny argued that this process will need to happen eventually, and that an earlier timeline with support for those who need it would be the "better option". The importance of the “right safeguards” as well as the underlying technology was a point emphasised by Ian Murray MP (Minister of State, DCMS), who stated that no one should be left behind in the upcoming TV transition. Having only been handed responsibility for the telecoms sector a number of weeks prior to the conference, Murray outlined at a high level the “system-wide” approach his department would be taking to the UK’s digital infrastructure, which would include a focus on resilience and sovereignty, although it was useful perhaps that he confirmed that next steps on the Government’s Mobile Market Review (MMR) would be published before year-end.
Andrea Donà (Chief Network Officer, VodafoneThree) and Reza Rahnama (MD Mobile Networks, BT) led from the industry side, both criticising the UK’s bureaucratic planning rules as one of the primary barriers to building new networks. Donà said the vast array of different planning rules across local authorities created a “postcode lottery” for operators trying to improve connectivity. Natalie Black (Group Director, Infrastructure & Connectivity, Ofcom) stated that she doesn’t underestimate the challenges facing the sector, from investment to cost of living pressures, but was upbeat in her outlook. Black recognised that Ofcom does not have all the answers and that delivering a truly connected society (one she sees as being built on a mix of high-quality, affordable and secure fixed, mobile and satellite connectivity) would be “a team sport”. While progress with network rollouts has been strong, the challenge for Ofcom now is around creating the right conditions to drive adoption, especially of fibre. Black pointed to the regulator’s copper retirement decision, which will allow Openreach, from April 2029, to raise copper prices in exchange areas with more than 90% ultrafast coverage. Though Ofcom considers that this will support end users’ incentives to migrate to, and realise the benefits of, fibre, the decision’s publication on the morning of the conference arguably prevented it from generating much debate across the two days.
Net neutrality reform is seen as a pivotal next step to revive operators’ fortunes
Assembly moderated the opening panel on Day 1, where the MMR and calls for planning reform took centre stage, quite literally. George Robinson (Head of Government Affairs, VodafoneThree) welcomed the MMR and its recognition of the need to look beyond delivering coverage and affordability to the issue of how policy can also help drive network quality. While Robinson and Shamil Jobanputra (Principal, Regulatory Affairs, BT) agreed with the MMR’s diagnosis of the challenges facing the sector, both urged the Government to translate its words and ambition into action. Referencing Black’s earlier comments about falling prices and rising data usage, Emma Shearer (Head of Public Affairs, Virgin Media O2) stated that this left operators “running to stand still in a highly competitive market” despite Virgin Media O2 alone investing £10bn since the merger that created it. Jobanputra cautioned that while it is positive that the market is delivering value for money, current dynamics could undermine investment and network quality in the future. Andy Sutton (Director of Technology and Mobile, Ofcom) stated that Ofcom’s recent mobile discussion paper reflected the change in tone with respect to network performance outlined in the MMR, but that a “whole-of-nation” approach would be required to effectively walk the fine line between promoting affordability and being pro-investment.
On the “emotive” subject of net neutrality, Robinson stated that regulatory guardrails are currently a dampener on innovation. He explained that VodafoneThree wants to create new propositions that would allow consumers to pay more for a given service if they choose, while crucially not impacting the baseline internet for the operator’s wider customer base. Jobanputra agreed, stating that there is a lot that BT itself would like to do today that it can’t, including prioritising a specific video conferencing app. Robinson added that VodafoneThree’s new SuperMobile offers push the limits of what regulation allows and that the MMR needs to solve the “delta” (i.e. dichotomy) between a sector under pressure and one being treated as critical national infrastructure (CNI). Gareth Elliott (Director of Policy and Communications, Mobile UK) provided the clarification that operators’ ambitions should not be conflated with the ‘fair share’ debate, but are about incentivising innovation without permission. Having revised its net neutrality guidance in October 2023, Sutton stated that Ofcom was not against reforms to the UK’s net neutrality regime (e.g. to enable reasonable innovation and network management), but that there is a need to understand how the world for digital services is evolving and feed that into the MMR, and any future legislative change in order to position the country for success.
An alternative portrayal of fibre market developments provided a light-hearted backdrop to otherwise serious discussions
Rajiv Datta (CEO, nexfibre) provided some moments of levity, playing into a previous remark from Katie Milligan (CEO, Openreach) about his skills at telling bedtime stories with the presentation of a “fibretale”. Likening Openreach to a “wily wolf” and Ofcom to a “wise owl”, Datta positioned altnets (presumably including nexfibre) as “persevering pigs”, eager to close the digital divide while relying on “wealthy woodpeckers” (investors) to fuel their construction of bridges (fibre networks) to reach the “Connected Kingdom”. Amid the wolf’s enticements of animals to use its bridge, a nod to Openreach’s proposed discount offers, Datta stated that dark clouds had gathered. His hope was that the pigs would work together and pool resources (i.e. consolidate) but that one pig (CityFibre) stood alone complaining, providing a distraction to the real issues at hand. Datta even made the faux-Freudian slip that the wolf may have “open-reached”, quickly correcting himself to say over-reached, which drew some laughter from the audience. Milligan saw the humour in the reworked fairytale, although considered that Openreach was not the wolf, but instead it was altnets that were dressing up as grandma and claiming the need for help and protection before revealing their true identities. Stating more than once that she tends to deal less in stories and more in facts, Milligan argued Openreach was more akin to the tortoise in Aesop’s ‘The Tortoise and the Hare’, keeping its head down and getting on with deploying fibre across the UK – a job it is not losing sight of.
The subsequent panel began with an exchange of views on Openreach’s proposed discounts and Ofcom’s draft decision to block the main New to Openreach (NTO) offer. Simon Holden (CEO, CityFibre) argued the latest announcement made for a pattern of Openreach testing regulation, as it did with Equinox following the Wholesale Fixed Telecoms Market Review (WFTMR) in 2021. He stated that the NTO offer is “outrageous” and should be blocked, with Openreach prohibited from further offers over the coming years. Richard Allwood (Chief Strategy & Technology Officer, Openreach) echoed Milligan’s comments, stating that competition is playing out and that it was a “fiction” that many altnets were in distress. He suggested that rivals may want to limit its ability to compete, which he saw through but that this is not how Ofcom’s regulatory framework is set up. Datta expressed gratitude to Ofcom for intervening on this discount; however, he considered that the logic of special offers needs to be discussed in light of Openreach’s significant market share. The issue of the financial fragility of altnets led to a lively back and forth between Holden and Datta, with the latter pointing to “lenders taking haircuts”, five or six restructurings that had taken place this year alone and the challenge of raising capital. In a thinly-veiled barb, Holden suggested that CityFibre’s customer base made raising funding straightforward relative to nexfibre that had one (Virgin Media O2) that is losing subscribers. Datta quipped that he would love to be introduced to Holden’s “magic money tree”, but cannot ignore the realities of the tough conditions altnets are facing.
Lutz Schüler’s (CEO, Virgin Media O2) session on Day 2 provided some hard truths for the UK's fibre market, warning that its current level of competition is unsustainable. He argued that the pending nexfibre/Netomnia deal provides the Competition and Markets Authority (CMA) with a choice that would decide the market’s future. Schüler predicted that a rejection of the deal would end any hopes of future investment into the UK’s fibre market, stating that the deal needed to be approached as Virgin Media O2 is the only challenger to Openreach’s dominance. Schüler sharply dismissed the idea that CityFibre is also a scaled challenger as an opinion, rather than a fact based on numbers.
There was heated discussion on future altnet consolidation and the implications of Openreach’s special offers
There was broad agreement that the Telecoms Access Review (TAR) delivered the stability the market asked for, but sharp disagreement on the two questions that will decide whether that stability holds: how freely Openreach can make special offers, and how altnet consolidation is handled.
The tone opened constructively. James Tickel (Director, Regulatory Policy & Strategy, Openreach) set out the shared ambition simply: a stable environment in which "competition on the merits" can take place. Giles Rowbotham (General Counsel and Chief Development Officer, nexfibre) agreed the market had been asking for consistency and that Ofcom had delivered it. Ben Harries (Policy Director, Competition & Markets, Ofcom) framed the TAR as maintaining regulatory support that has already delivered both rollout and investment. But he was clear the job is not yet done: the next five years are the critical window for locking in those two gains, and the framework has deliberate flexibility built in, on the expectation that competition will develop and the rules will need to adapt with it.
The flashpoint was Openreach’s special offers – this was where the panel came alive. Rowbotham made the strongest intervention, arguing that the investment case for challengers could be undermined through the back door by them. His ask of the regulator was blunt: Ofcom should say no to any further offers over the next five years, because they devalue the investment case for everyone else, and competition needs to become genuinely sustainable before such offers can be entertained. He questioned whether Openreach losing only around 2% of customers was anywhere near enough given the size of the contestable market.
Sorensen pushed back on the absolutism. Openreach has to be able to compete, she argued, so Ofcom cannot realistically say no to all offers – but there is clear room for the regulator to be more transparent about how it will interpret them when they come. Dilip Roy (General Counsel, CityFibre) landed somewhere in between: comfortable with limits that keep the market competitive and rule out the most egregious offers, while noting that Openreach has not explained what it is actually trying to achieve with them – and that rivals cannot simply replicate the offers, lacking Openreach's large back book of existing customers. Tickel offered Openreach's rationale in return: the aim is to sell more units at the lower price than at the higher one. He then turned the "protection" argument around – what does it really mean to be an established player? On his reading, nexfibre is an established competitor, as is CityFibre, so why would either need protecting from offers at all? The exchange sharpened when Rowbotham characterised Openreach's approach as pricing below cost. Tickel firmly rejected that, insisting the offers apply to a small percentage of the base for a limited time. Rowbotham appeared to row back slightly on his call for an outright moratorium – amid suggestions that he had misunderstood how the framework operates.
The second fault line was consolidation. The discussion began with Roy referencing a line from Ofcom's Black at the launch of the TAR that "not all consolidation is equal". Lindsey Fussell (Moderator and Chair, Digital Connectivity Forum) offered the lighter version: the happy ending of the earlier fibretale, she suggested, had looked like two bridges. Rowbotham used the session to defend nexfibre's planned merger with Netomnia, reiterating that the relevant overlap is with cable, not fibre, and that the deal would introduce wholesale competition for the first time – something ISP customers do not want to do at nexfibre's current scale. Others were less sanguine. Sorensen noted that other attempts at consolidation had stalled because of the pending transaction – not least because it has affected valuations, which she suggested had become unrealistic. Openreach's read was more matter-of-fact: given the consolidation that is coming, regulation will need to evolve to match it. The frankest moment came when Roy tested why the deal is needed to upgrade the cable footprint at all, given Virgin Media O2 previous boasts about low build costs and therefore that the upgrade could be done cheaply – and why a party would buy networks inside its own footprint. Rowbotham pushed back that CityFibre was confusing him with Virgin Media O2. It drew raised eyebrows from Roy and laughter from some of their supporters in the room.
Ofcom set the direction of travel for the panel's final question. In a post-consolidation world, Harries said, the hope is that regulation in five years' time looks like deregulation – with physical infrastructure access (PIA) the standing exception.
There is a growing bitterness between those for and against the proposed nexfibre/Netomnia merger
The matter of (prospective) consolidation among altnets was a major talking point once again this year, with Richard Tang’s (CEO and Founder, Zen Internet) latest “Full Fibre Wacky Races” session drawing a strong crowd. Tang shared the perspectives of altnet executives (some anonymised) on the proposed nexfibre/Netomnia transaction, who were split on whether it could provide the catalyst for a wave of M&A. Guy Miller (NED, MS3) was quoted as seeing approval as inevitable, suggesting that we should expect a flurry of further announcements in Q1 2027. While Tang considered that the fibre market was currently in an unsustainable place that required a degree of consolidation, he believed that there was a risk that an “over-correction” could lead the UK to end up in a sub-optimal position. He stated that the forthcoming decision of the CMA on nexfibre/Netomnia would either reduce competition or hand Openreach a trump card, adding that it was an open question as to whether it is the CMA’s job to “manipulate” or steer the market’s course.
A later panel continued where Tang left off, with Conal Henry (Chair, Fibrus) typically bullish on the outlook for Fibrus, stating that it has been built in a way that means it doesn’t need to buy or sell, leaving it in a relaxed position on potential M&A. Rob Hamlin (CSO, CityFibre) agreed “110%” that consolidation was needed to improve the financial health of the sector, but warned that “bad consolidation” would reduce competition and consumer choice. Rowbotham, meanwhile, argued that “good consolidation” would make businesses investable and sustainable, and in turn create meaningful and scaled competition to Openreach. Rowbotham, who appeared to take a more assertive stance than usual, also took Hamlin to task on CityFibre’s lack of dealmaking, stating that he had heard CityFibre executives talk up their consolidation plans for three years but claimed that they had nothing to show for it. According to Henry, the nexfibre/Netomnia transaction is crucial, and the future of the market will be determined by it – potentially even pushing CityFibre into the retail market. He stated, “this deal is the game” and that arguments between its supporters and opponents are “bitter”, but that he understands why it is being approached with such “aggression”.
Pivoting to competition, Henry made the intriguing suggestion that it was simple “arithmetic” that if Ofcom was to remove regulation (in the next wholesale market review in 2031), it would bankrupt BT Group as the firm wouldn’t be able to service its own balance sheet. He added that it suits BT for the difference in wholesale and retail prices to be small, which enables BT Consumer to extract revenue from the market at the retail level. In contrast, a larger gap provides network builders with more of an ability and incentive to invest; however, Ofcom is currently not taking that issue seriously enough. Peter O'Flaherty (Managing Director, Networks & Digital Infrastructure, Equitix) underlined that investors need to see adoption and returns, stating that if that happens, it would provide Andy Burnham (Prime Minister, UK) with “something positive to shout about for once”.
Data centre growth has been hampered by fragmented planning rules, grid constraints and local concerns
Data centres were more in vogue than in previous years, even being given their own ‘track’ this time around – and seemingly taking over from AI as one the event’s most prominent themes. The majority of sessions focused on the barriers to data centre deployment, such as planning rules, power constraints and local backlash. In a morning session on Day 1 on the importance of data centres to economic growth, Mark Lee (CEO, Deep Green) said that much of this local backlash stems from people’s uncertainty about AI – with data centres acting as the physical manifestation of it. Allan Bosley (Director, Public Affairs, Ark Data Centres) agreed, arguing that such uncertainty and criticism had been encouraged by “poor reporting” from some major newspapers. The UK’s planning framework came under fire for its bureaucratic and fragmented nature – which has often led to difficulties for data centre operators when trying to deploy new infrastructure. Speakers such as Tom Powlay (Associate Director, Project Management, Telehouse) and John Duncan (Connected Places Lead, Greater Manchester Combined Authority) both called on the UK Government to publish guidance for local authorities on the matter, hoping to better equip them with data centre knowledge and expertise.
Speakers outlined the potential impacts of DTT and PSTN switch-offs on digital inclusion and vulnerable end users
Digital inclusion came into sharper focus on Day 2, picking up on remarks from the event’s opening speakers, including the new Minister. Leigh Smyth (CEO, ImpactMatch) stated that it is a “merit good” that has compelling social and economic benefits. She noted that while the BBC and other essential organisations continue to move content to digital spaces, this can only succeed sustainability if the audience can move with it. Helen Burrows (Controller, BBC) remarked that traditional broadcasting is “approaching the end of its life”, appreciating that the Government has acknowledged this fact in its Media Green Paper published in June 2026. While the DTT switch-off presents opportunities for broadcasters, she noted that the BBC would face particular challenges, especially as its universal service obligations mean that it cannot move completely to streaming. Burrows was also pleased that policymakers had begun to start considering the role of design, noting that digital TVs can be overcomplicated, making those vulnerable to digital exclusion less likely to use them. She noted that this seemed to follow the current regulatory trend of designing for safety and simplicity (such as with online safety regulation).
In a separate session, panellists considered that the PSTN switch-off presented both challenges and opportunities for digital inclusion. Phil Laws (Partner, Cambridge Management Consultants) emphasised that this has been a drawn-out and delayed process, noting that it has taken longer since the decision was first made for the switch-off than it took for man to reach the moon. David Christie (Senior Regulatory Policy Advisor, Virgin Media O2) highlighted requirements for operators to identify vulnerable customers under Ofcom’s regulation, and the need to work with local authorities to engage these users. However, difficulties with this have led to the switch-off being delayed by two years, until the end of January 2027. According to panellists, both Virgin Media O2 and BT’s switch-offs are now 95% complete, with KCOM’s being 90-95% completed where fibre is available. Despite these challenges, Frederik van Randwyck (Head – Telecoms Modernisation Programme, techUK) stated that migration posed benefits for customers, and that this was not just about transitioning away from legacy networks but moving them to better connectivity solutions.
Is there a “light at the end of the tunnel” for the UK’s lacklustre rail connectivity?
Elsewhere across the conference, we heard occasional mentions of the need to improve connectivity across the UK’s rail network, with Ofcom’s Sutton acknowledging on Day 1 that there is no “golden bullet” to this particularly “sticky problem”. He saw satellite as only part of the solution, underlined the need to get better mobile signal into these “moving Faraday cages”, for example by etching windows to improve attenuation. During a panel the following day, Bogdan Lupu (Industry Programme Director (Western Route), Network Rail) and Marta Ventura (Transport Corridors Manager, Vantage Towers) praised trials of using satellite connectivity to provide Wi-Fi to train passengers, although both were also keen to stress that this should be paired with upgrades to trackside terrestrial networks. Ventura warned that the costs of upgrading trackside mobile networks was significant, which prompted one audience member, a representative from the Department for Transport (DfT) to criticise the Treasury’s spending reluctance. The DfT representative explained that the UK Government’s ongoing £57m funding for the issue was only a three-year programme – but said that around £1.2bn is needed over the next 10-15 years to ensure strong connectivity across the rail network.
The subject of rail also dominated a separate panel on the future of mobile connectivity. Robert Joyce (Director of Mobile Access Engineering, Virgin Media O2) noted that Ofcom’s recent report on the subject showed that none of the operators “really shone” in this area, which the other panellists agreed with. He suggested that the most likely solution to this would require an industry-wide approach, which was echoed by Jordan who stated that while none of the providers came off particularly well in the report, collaboration was needed going forward. Despite these challenges, the panel seemed positive that improvements could be made in this area, with Andrew Kernahan (Executive Director, ISPA) aptly remarking that there was “a light at the end of the tunnel”.
