UK businesses looking to switch their fixed broadband and voice services could see significantly lower costs starting in 2028, as the industry body responsible for the switching infrastructure slashes fees by around half.
The One Touch Switching Company (TOTSCo), the not-for-profit organisation that operates the central messaging hub for telecom switches, has notified communication providers of major price reductions for its Business Switching Solution.
The announcement signals continued efforts to make switching more affordable and encourage wider adoption.
Current and upcoming price changes
Under the revised pricing, which has been approved by the TOTSCo Board and comes with 30 days’ notice in line with user agreements:
- The unit price per business customer switch drops from £1.70 to £1.60.
- Providers with fewer than 20,000 customers will face no charges until the system goes fully live.
- Pricing will remain stable throughout 2026, with the 2027 unit price expected to stay at or below £1.60 (to be confirmed in Q3 2026).
The biggest shift arrives in 2028 when TOTSCo said the unit price is expected to fall by around 50% as development costs are fully recovered by the end of 2027. This is an indicative, non-binding guidance designed to give the industry planning certainty.
Separate price lists apply for direct hub access and for those using a Managed Access Provider (MAP) for full management services.
What’s driving the cuts?
TOTSCo was established in 2022 by the UK telecoms industry as a member-owned, not-for-profit entity to deliver reliable switching infrastructure, initially for residential One Touch Switching (OTS) and now extending to business customers.
Its pricing model is deliberately structured for fair cost-sharing rather than profit generation. Early prices help recover the substantial upfront investment in developing and testing the TOTSCo Hub – the central platform that allows communication providers (CPs) to exchange the messages needed for smooth, gaining-provider-led switches.
As more providers onboard and the volume of business switches increases, fixed development costs are spread across a larger user base. This natural economies-of-scale effect, combined with the recovery of initial capex by the end of 2027, is what enables the sharp reduction from 2028 onward.
“TOTSCo’s pricing is designed to support industry uptake and provide greater cost certainty as operations move towards live status,” the group said.
The board, which includes industry representatives, approves all changes to ensure transparency and alignment with market needs.
The residential OTS system, which launched in September 2024, has already processed over 1.5 million switches and is handling thousands daily, demonstrating the platform’s growing maturity and efficiency.
Why this matters for UK businesses
Business switching follows a gaining-provider-led model, similar to the consumer version regulated by Ofcom. It aims to make it easier and less disruptive for organisations to change their broadband and voice providers without the friction that previously existed in the market.
Lower fees for providers should translate into several benefits:
- More competitive offerings: Reduced backend costs could allow providers, especially smaller alt-nets and challengers, to offer keener prices or better incentives to win business customers.
- Increased switching activity: Affordable access to the hub removes a potential barrier for smaller players, fostering greater competition in the B2B segment.
- Cost certainty: The multi-year visibility on pricing helps providers with budgeting and encourages investment in onboarding and testing.
For businesses themselves, easier switching supports greater choice and the ability to shop around for better value, speeds, or service levels without prohibitive hidden costs in the ecosystem.
Leave a Reply