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<p>Price regulation in the telecoms market is a matter for Ofcom as an independent
regulator. Openreach’s prices are fixed by Ofcom as part of their five-year Wholesale
Fixed Telecoms Market Review (WFTMR) process and have been allowed to increase by
CPI in order to reflect the significant additional costs faced when deploying new
physical infrastructure. There are no plans to change the WFTMR until 2026. This is
in line with industry requests for long-term stable regulation that incentivises competition
and investment in the fixed telecoms market in order to increase the coverage of gigabit-capable
networks as quickly as possible. This approach has been successful, with over 80 companies
investing approximately £35 billion to connect premises across the UK.</p><p>The Government’s
Statement of Strategic Priorities for Ofcom, published in 2019, states that we want
to see regulation that incentivises network investment and ensures fair and effective
competition between new and existing network operators. The Department regularly meets
with Ofcom at all levels to discuss progress against its strategic priorities. My
officials also regularly engage with representatives across the telecoms sector. On
wholesale price increases specifically, the Department has received representations
from both industry members and consumer groups.</p>
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