Hi
It's easier to provide a link and a cut & paste -
https://www.ispreview.co.uk/index.php/2021/03/ofcom-unveils-2021-changes-to-boost-uk-full-fibre-broadband.htmlArea 4 will be a continuation of Area 3 but with greater subsidy.
Area 1 – Competitive Areas
Areas, such as dense urban locations where there are at least 2 existing networks + BT (OR), will not see much regulation of Openreach’s products (i.e. rules will be removed to encourage investment and innovation). Oddly Ofcom still hasn’t identified any such areas at this stage but they do “expect to do so in the future.”
Area 2 – Potentially Competitive Areas
Areas, such as locations where 1 or more existing alternative ultrafast networks are already present or where 1 or more operators have a plan to deploy (and Ofcom considers the future rollout could be economic), will continue to see Openreach being required to provide wholesale access to its network. This reflects about 70% of the UK.
Ofcom will also maintain flat, inflation-adjusted, regulated prices for Openreach’s entry-level 40Mbps (10Mbps upload) superfast broadband service. Ofcom also accepts that the FTTP version of this will be a little bit more expensive (£1.70 per month) than the equivalent FTTC one due to the higher speeds and quality from full fibre lines.
But Ofcom won’t regulate the prices of Openreach’s higher-speed services and will place restrictions on discounts (more on this later).
Area 3 – Non-Competitive Areas
Areas, such as rural locations where Openreach is the only operator providing a large-scale network (i.e. no rivals or plans by rivals) – reflecting about 30% of the UK, will see regulation designed to support investment by allowing OR to recover its costs to build a new fibre network from a wider range of services (similar to a “regulated asset base” model approach), such as copper line services, which could reduce the risk of its investment.
“If Openreach provides a firm commitment to lay fibre in these parts of the country, we can include the cost of this deployment in its prices from the outset. If not, its prices would only increase after fibre has been built.” BT has since added a commercial commitment to build FTTP to 3.2 million rural UK premises and Ofcom has thus carried this change forward (here).