ofcom is a pretty big barrier right now to progress.
openreach the local loop owner get less than half the line rental most consumers pay, their share is capped and regulated by ofcom.
in addition BT is bloated by pension obligations amongst other things.
We have political intervention as well, tying to have X amount of spent in rural areas everytime X amount of money is spent in urban areas.
The efficiency of rollout's is also questionable, a desire for it to be all underground, inflated costs under highways and so forth.
talktalk have claimed they have it under £500 per home passed, what is openreach's latest figure?
The gift card, changing isp annually etc. I agree is not a healthy market, we see this rubbish in other sectors as well like gas/electric. Its seen to be consumer friendly as long as people can hop every year and take up new customer offers, but many of these deals are loss leaders and not pro investment.