What is Openreach?

Dan Howdle • August 28th, 2024

You have seen the vans driving around, but what exactly is Openreach? If you get broadband from a provider other than Virgin Media, such as Sky, Plusnet, TalkTalk, or almost any other, your service is provided using the Openreach network of cables and exchanges. Openreach is the hidden hand behind the infrastructure required for most UK broadband providers to deliver their service to your home.

We will take a look at what Openreach is and how it works. We will also dive into the history behind the company and explore the current landscape, answering any questions you may have about what Openreach does and its role in the future of UK broadband.

What is Openreach?

If your broadband is supplied via a phone line, then odds-on you are using the Openreach network, regardless of which internet service provider you use. Openreach is a subsidiary of BT that runs the network infrastructure part of the business. Openreach installs and maintains all the cabling, street cabinets, and connections to the local exchanges. However, you do not need to be a BT customer to be using its network of cables. Most broadband providers, with the exception of Virgin Media, use the Openreach network to get broadband into your home.

Openreach is currently focused on rolling out its Full Fibre (fibre-to-the-premises, or FTTP) network, which delivers ultrafast broadband directly to homes and businesses without relying on older copper cables. This shift means that many Openreach-based providers now offer speeds that rival or exceed those of Virgin Media. Full Fibre connections provide speeds up to 10Gbps (though the fastest currently offered on the network is 1.6Gbps), offering a significant improvement in speed, reliability, and future-proofing compared to older technologies.

History of Openreach

Openreach was established in 2006 as part of a wider regulatory effort to increase competition in the UK's telecommunications market. Prior to its creation, BT controlled both the infrastructure and the retail side of its broadband business, which led to concerns over fair access for other providers. Following pressure from MPs, BT's competitors, and a review by the telecoms regulator Ofcom, Openreach was separated from BT's retail operations, although it remains a subsidiary of BT Group.

Originally, MPs called for BT to sell off the network part of the company entirely. However, due to the complexities involved—such as long-term covenants and responsibilities, including staff pensions—a full sell-off was deemed impractical. Instead, Openreach was made into a separate entity that operates independently and is regulated by Ofcom to provide fair access to all broadband providers.

Since its launch, Openreach has played a critical role in the expansion of broadband across the UK. Initially, the focus was on ADSL and later on fibre-to-the-cabinet (FTTC) technologies, which provided faster speeds but still relied on copper cables for the final connection to homes. However, with the growing demand for faster and more reliable internet, Openreach has shifted its focus to Full Fibre (FTTP). This investment in full-fibre infrastructure is set to transform the UK's broadband landscape, providing gigabit-capable broadband to millions of homes and businesses.

Alternatives to the Openreach network

For most people in the UK, the only alternatives to Openreach are either Virgin Media or 4G/5G broadband over a mobile network. There are, however, some other options, specific to certain areas or criteria. Let’s take a look at some of them.

• Virgin Media – While Virgin Media previously had the advantage of faster broadband speeds, Openreach's Full Fibre network now offers comparable, if not superior, speeds. Virgin Media remains a strong alternative, particularly in areas where Openreach's Full Fibre has not yet been rolled out. Virgin Media offers speeds of up to 1Gbps, similar to what is available through Openreach's Full Fibre network.
• 4G/5G mobile broadband – With the rollout of 5G, mobile broadband is a real competitor to Openreach and offers great speeds. 4G is also an alternative to Openreach in areas where Openreach speeds are low. You can get mobile broadband from most mobile providers, and some also offer special 4G/5G hubs (mobile routers) that connect to the internet via your chosen mobile network, rather than through cables.
• Satellite Broadband – Broadband via a satellite dish. This is a good option for places where it is difficult to get an ordinary broadband connection, such as on remote islands or in rural communities. The speeds cannot match those of fibre broadband, and latency (the time it takes for information to travel to and from your computer to the internet) is high. However, it is improving all the time, and new projects such as Starlink are now bringing fibre broadband speeds to satellite broadband customers.
• Gigaclear – A network with the aim of bringing fast fibre broadband to rural communities. It is not available everywhere. You can run a postcode check on its website to see if you can get it in your area.
• Hyperoptic – Another network, like Gigaclear, that supplies ultrafast fibre optic broadband all the way to your property, with no copper cables between the street cabinet and your home. However, it is only available in select urban areas, particularly in central London and other major cities.
• CityFibre – A growing competitor to Openreach, CityFibre is expanding its full-fibre network across various UK cities, aiming to provide an alternative to Openreach for ultrafast broadband. It partners with ISPs like Vodafone and TalkTalk to deliver services.

The Future of Openreach

Openreach is at the forefront of the UK's transition to full-fibre broadband, which is critical for supporting the increasing digital demands of homes and businesses. The company has set ambitious targets, including the goal of reaching 25 million premises with FTTP by 2026. This full-fibre network will be essential for supporting emerging technologies, such as smart homes, cloud computing, and 5G backhaul, ensuring the UK remains competitive in the global digital economy.

As Openreach continues its rollout, consumers can expect significant improvements in broadband speed and reliability. The shift to Full Fibre also positions Openreach as a leader in the global race for ultrafast broadband. However, challenges remain, particularly in ensuring that rural and underserved areas receive the same level of service as urban centers. Openreach’s ongoing investment in infrastructure, coupled with government support and competition from other providers, will be key to achieving nationwide high-speed broadband coverage.