It comes in response to Ofcom’s report on affordability, but on its own will probably not be enough to prevent further intervention
A potential saving of up to £92 for some: From October, Openreach will waive superfast (40Mbps) broadband connection fees for any customers who aren’t currently connected to its network and who are receiving Universal Credit with no other earnings (an estimated 1 million households). There is flexibility for CPs to either pass the reduction on at the start of the contract, or over its duration. It comes after a report from Ofcom highlighted concerns around affordability of communications services many felt during the coronavirus pandemic.
Ofcom seems keen on a regulated social tariff: While this will no doubt be seen as a welcome move towards reducing the costs of getting connected, it will probably need to be accompanied by more action from ISPs on monthly rentals and equipment costs if operators are to avoid Ofcom recommending to government there should be a regulated social tariff. Ofcom estimates 2 million households face affordability issues and that efforts so far from ISPs have had limited impact and take up of discounted plans remains low. There is a suggestion that the current processes for moving to such plans isn’t straightforward and those already with other providers would face early termination fees. Unless further voluntary effort is made, Ofcom seems prepared to regulate.
A €5 tariff in Portugal starts next year: The UK is not the only country where attention has turned to affordability of services. In Portugal a decree of July 2021 will see the introduction of a social tariff from January next year. While the details are still being determined, the recommendation for its first year is a €5/month plan which includes 12GB of data and speeds of 10Mbps/1Mbps. Prices in Portugal tend to sit at the higher end among the EU28 and certainly above the UK. Currently the most affordable broadband plan is €12.90 for 8GB of data a month, but with a €49.90 activation price and monthly equipment price of €4.90.
https://www.openreach.com/news/openreach-to-waive-connection-fees-for-low-income-households/
