FTTP on Demand Costs: Why High Prices Are a Barrier

FTTP on demand (FoD) sounds like the answer to a connectivity problem: if Openreach has not yet built full fibre to your building, you pay to bring its network to you. In practice, the excess construction charges attached to any real civil works often make the economics fall apart — and that is why, years after launch, FoD still has not taken off.

*By Nathan Hill-Haimes, Technical Director · 7 min read · Updated June 2026*

What drives FTTP on demand costs?

FTTP on demand costs are almost entirely location-dependent. The single biggest factor is something you cannot influence: how far your building sits from Openreach's nearest existing full-fibre infrastructure. A few hundred metres of new duct can swing the price by thousands of pounds.

For a business 50 metres from an existing fibre node, FoD can be essentially free — the ECC is zero and you pay only the standard FTTP monthly tariff. For a business 800 metres from the nearest duct, the ECC can reach £5,000–£15,000 (typical UK 2026 range). And for a rural premise 2km from any infrastructure, the figure can be £50,000 or more (market rates as of 2026).

The survey process is not straightforward either. It takes time, and the ECC quoted after the survey can differ from the initial estimate. Businesses that enter the FoD process expecting a low cost sometimes emerge with a figure that changes the decision entirely. Before that happens, it is worth understanding what you are actually paying for.

What does the excess construction charge actually cover?

The ECC covers the physical infrastructure work Openreach must perform to extend its network to your premises. It is a civil engineering bill, not a broadband tariff — which is why it dwarfs the monthly cost in difficult locations. The work typically includes ducting, permits, wayleaves and the fibre itself.

A typical ECC breaks down into:

• Duct installation — laying new underground ducting from the nearest fibre node to your building
• Road opening permits — required if ducts cross public roads or pavements
• Wayleave negotiations — legal permission to lay infrastructure across private land
• Chamber installation — needed for longer duct runs
• Fibre blowing — installing the fibre cable itself through the duct

Civil engineering work is expensive in the UK. Even a relatively short duct run of 300–400 metres crossing a road can run to several thousand pounds once road openings, permits and reinstatement are added in. Ofcom, which tracks UK full-fibre and gigabit availability, reports that coverage is expanding fast — but the hardest-to-reach premises are exactly where FoD charges peak.

Why has FTTP on demand never gained traction?

FTTP on demand has been available for years but never achieved widespread uptake. The reasons are clear: the charges hit hardest where fibre is scarcest, the money is unrecoverable, and a dedicated leased line often comes back at a similar or lower total cost with a far stronger SLA.

The core problems:

• ECCs are often prohibitive. For premises that genuinely lack nearby fibre — the businesses most in need — costs routinely exceed what the service is worth commercially.
• No cost recovery. Unlike a leased line, where the carrier amortises infrastructure into the monthly tariff, the FoD ECC is a one-off payment with no terms protecting that investment if you later relocate.
• Leased lines are often competitive. Where FoD would need significant civil works, a leased line quote frequently lands at a similar or lower total cost — plus dedicated, uncontended bandwidth and a meaningful SLA.
• Standard rollout is progressing. Through the government's Project Gigabit programme and Openreach's own build, many areas will be covered within 12–24 months at no ECC for businesses willing to wait.

For context, the Openreach FTTP footprint (Q3 2025) reached 19.7 million premises, covering 58.7% of all UK premises (ISPreview, Q3 2025 data) — so the standard rollout is closing the gap that FoD was designed to bridge.

When does FTTP on demand actually make sense?

FTTP on demand works financially in a narrow set of circumstances — essentially, when the ECC is low and a leased line would be overkill. If Openreach can reach you through existing ducts and your bandwidth needs are modest, FoD can be a genuinely good-value full-fibre connection.

It stacks up when:

• The ECC is zero or very low (under £500), because Openreach can reach your premises via existing ducts
• Your bandwidth needs are modest and a leased line would be disproportionate
• You cannot wait for the standard rollout and the site is not viable for a leased line
• Your premises is close to infrastructure but happens to sit on the wrong side of a deployment boundary

If none of those apply, and the ECC runs into five figures, you should price the alternatives before signing anything.

What alternatives should you price before committing?

Before agreeing to a significant FoD charge, run parallel quotes. In most high-ECC cases, a leased line or an interim solution delivers better value — either a lower total cost, a stronger SLA, or both. The table below shows where each option fits.

Practical guidance from AMVIA: always obtain the FoD ECC estimate and a FTTP leased line quote at the same time. Where civil works are involved, the leased line frequently installs faster and costs less over the contract term. Check altnet coverage at your postcode too — a CityFibre or alternative full-fibre build may already serve your street with no ECC at all.