- Altnets operate under Ofcom's general authorisation regime, which sets baseline obligations for all communications providers.
- The strictest significant market power (SMP) obligations fall mainly on Openreach as the dominant network, not on smaller altnets.
- Ofcom's Wholesale Fixed Telecoms Market Review underpins access to Openreach ducts and poles that altnets rely on to build.
- Ofcom has enforcement powers and can act against any provider that breaches its obligations, including altnets.
Altnets sit in an interesting regulatory position: they are full communications providers subject to Ofcom's rules, yet they are not burdened with the heaviest obligations that fall on the dominant operator. Understanding how Ofcom regulates them explains both their freedom to build and the protections that still apply to their customers.
The general authorisation regime
Anyone providing electronic communications networks or services in the UK operates under Ofcom's general authorisation, a set of baseline conditions that apply without needing an individual licence. This is the framework under which altnets operate. It imposes core obligations, including around consumer protection and complaints, while keeping the barrier to entry low enough to allow new networks to emerge.
Why SMP obligations fall mainly on Openreach
The heaviest regulation, significant market power obligations, applies to operators that dominate a market. Openreach, as the network most of the country depends on, carries these obligations, including requirements to provide access to competitors on regulated terms. Smaller altnets do not hold that market power, so they are not subject to the same SMP rules. This asymmetry is deliberate: it constrains the incumbent while letting challengers grow.
The access rules altnets rely on
Ofcom's Wholesale Fixed Telecoms Market Review is the regulatory foundation for the duct and pole access that altnets use to build fibre cheaply, using Openreach's existing physical infrastructure. This access regime is a key reason competing networks have been able to expand as quickly as they have.
What obligations apply to altnets
| Obligation | Applies to altnets? |
|---|---|
| General authorisation conditions | Yes, as communications providers |
| Consumer protection and complaints | Yes, for regulated services |
| Access to Openreach ducts and poles | Yes, as a beneficiary of the rules |
| SMP access obligations | Mainly on Openreach, not small altnets |
Enforcement
Ofcom can investigate and act against any provider that breaches its obligations, and its enforcement powers include directions and financial penalties. So while altnets enjoy lighter market-power regulation, they remain accountable for meeting the baseline rules, including those that protect their customers.
Frequently asked questions
Do altnets have to follow Ofcom rules?
Yes. Altnets operate under Ofcom's general authorisation regime, which sets baseline obligations for all communications providers, including consumer protection and complaints handling. They are accountable to Ofcom like any regulated provider.
What is the Ofcom general authorisation regime?
It is the framework under which anyone can provide electronic communications networks or services in the UK without an individual licence, subject to a set of baseline conditions. Altnets operate under it, which keeps the barrier to entry low while imposing core obligations.
Are altnets covered by the auto compensation scheme?
The automatic compensation scheme is signed by participating providers, and participation can vary, including among altnets. Check whether your specific provider is in the scheme, as it is not universal across every operator.
Can Ofcom fine an altnet?
Yes. Ofcom can investigate and act against any provider that breaches its obligations, and its enforcement powers include directions and financial penalties. Lighter market-power regulation does not exempt altnets from the baseline rules.
What access rights do altnets have to Openreach infrastructure?
Under Ofcom's Wholesale Fixed Telecoms Market Review, altnets can access Openreach's existing ducts and poles on regulated terms, letting them lay fibre using existing infrastructure rather than digging from scratch.
