Ofcom has proposed blocking a new customer deal from Openreach after provisionally concluding that the offer could create competition concerns. The watchdog said its early view is that the plan may not meet the standards expected in a market where fair access and pricing are closely watched.

The move signals a potential regulatory hurdle for Openreach, whose customer offer is now under scrutiny as Ofcom examines how it could affect other providers and wider market competition. At this stage, the finding is provisional rather than final, meaning the process is still ongoing.

Competition issues in telecoms often centre on whether a new pricing or customer incentive structure could give one operator an unfair advantage or make it harder for rivals to compete. Ofcom’s intervention suggests it believes the proposed Openreach deal could have that kind of impact if left unchanged.

Any final decision would be significant for the telecoms sector because Openreach plays an important role in network access and market dynamics. For now, the key development is that Ofcom has indicated it is prepared to stop the new customer offer unless its concerns are addressed.