Tag: next-generatin broadband

Area-specific infrastructure rollouts could help improve broadband coverage

Elwood streetscape

A neighbourhood to be targeted by competitive Internet service

I have followed a fair bit of information about independent ISPs and infrastructure providers are providing or facilitating a high-quality broadband service in to areas where established providers aren’t caring about the standard of broadband Internet service.

Firstly, I have observed situations that have happened in the UK where small-time ISPs have rolled out next-generation infrastructure in to rural areas typically provisioned with old and decrepit telephony infrastructure so that they can benefit from real broadband service. Some of these providers like B4RN are community-owned co-operatives where the local community even put a hand to the plough and help with laying the infrastructure.

Even a broadband rollout in one of these buildings by a competitive operator could see another competitive rollout

Even a broadband rollout in one of these buildings by a competitive operator could see another competitive rollout

But in a lot of these situations, BT Openreach who is the incumbent infrastructure provider, have been forced to improve their game when it comes to rolling out the infrastructure in to rural areas.

Secondly, in urban and suburban areas, the situation may also require the existence of competitively-deployed infrastructure in order to assure proper coverage and access to next-generation broadband across these areas. This has happened in some Australian apartment blocks where TPG set up next-generation broadband in these buildings and this caused NBN to deploy their infrastructure in that building. The USA has also seen situations where the fact that a Google Fiber rollout was in the planning stage had “put the wind up” established “Baby Bell” telecommunications companies who then started rolling out next-generation broadband service in to the affected neighbourhoods.

This kind of competition can be approached in the form of “pits, poles and pipes” level where competitors legally have access to the same ductwork or poles or on a wires level where some of the fibre or copper wiring such as in-building wiring or street-to-building wiring can be used by competitors to provide their services.

The big question that will be raised from the success of these next-generation broadband rollouts where a competing service provider or infrastructure provider had established their footprint thus causing an incumbent service provider to roll out their infrastructure in to that area is whether this kind of rollout expedites the provisioning of this service or slows it down. This can be underscored where a small-time ISP, infrastructure provider, co-operative or developer undertakes this activity with a view to see full-area coverage with themselves wanting to reach out to neighbouring communities.

Some people would see this kind of competitive rollout as a form of “cherry-picking” where certain neighbourhoods are being provided with next-generation broadband while others aren’t even though entities based in that neighbourhood are instigating the coverage. On the other hand, the fact that a competing service is about to exist could be seen as a way to encourage the incumbent telco, ISP or infrastructure provider to get going and start rolling out broadband service in to the area covered by the competitor.

This behaviour may be seen when an operator starts work on a particular neighbourhood then rolls out the coverage to more of the surrounding neighbourhoods. They may also be tackling other neighbourhoods in a larger geographic area like a nation or a large urban area.

There is also the issue of whether a retail ISP could offer coverage across one or more competitively-laid infrastructures, which may be about assuring that they are accessible wherever a potential customer lives or works. Business users and potential data-centre builders may look at this in the context of implementing fail-safe Internet service to suit their needs.

Some issues that may be raised would include the number of people or businesses existing in an area to determine whether a competitive Internet service is sustainable and determining how much competition must exist in a particular area.

This situation has to be assessed whenever an area’s dynamics change. For example, an urban area becoming more dense may affect these dynamics as is a rural, regional or suburban area acquiring a significant source of employment or improved transport to a neighbouring urban area rich with employment or business opportunities.

In the latter situation, a significant employer or improved transport could attract more people living in the town and neighbouring towns along with more businesses and professionals servicing the town’s needs.

What really needs to be looked at is the possibility of area-specific rollouts as a way to increase the availability of real broadband in a town or other similar area. This is while a sustainable level of competition exists to assure households and businesses access to Internet service that represents real value for money.

Another fibre-based broadband service competes with NBN

Article

Lot 3 Ripponlea café

It could be feasible for this café to benefit form high-throughput Wi-Fi

Ten times faster than NBN: DGtek brings gigabit fibre to Aussie suburbs | The Age Technology

From the horse’s mouth

DGTek

Product Page

My Comments

Lot3 Ripponlea Wi-FI

Could this mean high-throughput here?

It is taking a long time for most of the suburban areas in Australia’s capital cities to have NBN next-generation ultrafast broadband. But DGTek wouldn’t wait around for this to happen and are to provide their own fibre-to-the-premises broadband service in a similar manner to how Google Fiber are rolling out their own broadband service in some urban areas in the US.

Initially this service will cover Elwood and slowly roll out to some of Melbourne’s inner south-east bayside suburbs. This is because these areas have been placed on the back-burner as far as NBN are concerned. DGTek will also start covering Adelaide, Sydney and regional Victoria with Geelong as the first of the regional cities.

Elwood streetscape

This neighbourhood stands to benefit from competitive fibre-optic broadband

This FTTP service will be similar to how Google Fiber is deployed with use of GPON technology and the fibre cables being mounted on the power poles similar to how Optus rolled out their HFC-based pay-TV infrastructure in the 1990s. One of the main goals is that every premises in the coverage area will be able to benefit from this service rather than the pay-TV rollouts not be available to all streets or premises.

Even multiple-occupancy buildings like apartment blocks and shopping centres with less than 100 premises will be provided with full fibre-to-the-premises rather than the fibre-to-the-basement deal with copper wiring to each apartment, office or shop.

Apartment block in Elwood

Fibre-optic connectivity to each apartment

David Klizhov, who is DGTek’s founder, was involved in GPON fibre-optic rollouts in Russia and had come out 10 years ago to form this business. This has led him to be able to put this experience across in developing a competing “own-infrastructure” broadband setup using this technology. Rather than using space in Telstra’s telephone exchanges, DGTek will build their own exchange centres so they can make sure of the network’s quality in an “end-to-end” fashion. They also underscored that they can upgrade this network to XGPON technology (or other better technologies like switched fibre) without the need to deploy new fibre cable in the network.

At the time of publication, the projected connection fee is to range between AUD$275-AUD$500. The monthly cost for a baseline service with 250Gb allowance at 100Mbps symmetrical bandwidth for AUD$80 per month but there will also be a premium package with unlimited “all-you-can-eat” data at Gigabit symmetrical bandwidth for AUD$150 per month. These packages will be offered on a by-the-month “no-contract” basis. The prices and “value-for-money” aspects of this service can easily change when NBN or other competing infrastructure providers come on the scene in DGTek-covered areas.

This has come about because the Australian Competition and Consumer Commision have handed down a ruling that effectively opens up the next-generation broadband market to competition, something I have been standing for as a regular Internet user and as the editor of HomeNetworking01.info . This requires that high-speed landline broadband networks can no longer be monopolies, but are to offer wholesale Internet access to other retail ISPs. DGTek are want to offer this kind of wholesale service but they require the ISPs who buy this service to provide fair and auditable billing and  proper tech support as part of the customer-service requirements.

I did some further study in to the ACCC declaration and this placed the requirement on ISPs who are selling next-generation broadband Internet using their own fixed-line infrastructure. This was targeted with the view of having the Telstra-owned fixed-line infrastructure being subjected to NBN ownership and control in the same vein as Openreach in the UK. Here, they would have to resell access to this infrastructure on a wholesale basis while they offer a retail service. But it doesn’t place any sort of declaration on access to the “pits, poles, pipes and towers” associated with providing a communications service to allow for more infrastructure-level competition.

This includes:

  • whether a power utility can limit access to their street power poles to one ISP or telco;
  • whether Telstra or NBN are required to “open up” the urban telecoms pits or rural telephone poles to competing ISPs and telcos who are setting up their own infrastructure; or
  • whether an apartment building’s owners corporation or a building manager is required to “open up” the building’s communications room to competing service providers.

What I see of this is the possibility of European-standard competition for next-generation broadband Internet in Australia, at least in its urban areas. But to see this happen, there has to be strong government oversight regarding the next-generation broadband Internet market especially where this kind of service is provided to households and small businesses. Here, I wish DGTek and other similar ISPs luck with creating a vibrant competitive next-generation broadband market with affordable value-for-money services.

Why is New Zealand pushing forward with fibre-optic broadband?

Article New Zealand map

New Zealand reaps fibre benefits as copper-choked UK risks digital exclusion | Computer Weekly

My Comments

What is the broadband Internet scenario in New Zealand

Like Australia, UK and a lot of European countries, New Zealand started off with Telecom NZ which a telecommunications monopoly that was initially run as part of a government-run post / telephone / telegraph service. In order to assure competition, Telecom NZ was split in to an infrastructure entity called Chorus and a retail services entity called Spark in 2011, something that is very similar to how Openreach in the UK and NBN in Australia are operating.

Chorus provide a DSL-based wholesale broadband Internet service with the infrastructure being provided on an unbundled local-loop basis. There is the ability for these services to be sold with a classic dial-tone telephony service or as a “naked” or “dry-loop” service that doesn’t have this service.

They provide a fibre-copper next-generation broadband service for 91% of New Zealand’s households with a throughput of at least 10Mbps – could most of these services implement VDSL2 technology? But they are also providing fibre-to-the-premises in some cities with some services benefit from Gigabit throughput in a few neighbourhoods.

Vodafone New Zealand are providing competitive Internet service in some of New Zealand’s urban areas namely Kapiti, Wellington and Christchurch but this is based around cable-modem technology thanks to them taking over TelstraClear’s HFC cable service. But they want to make sure of a fibre backbone infrastructure throughout both of the islands. Citylink also provides their own infrastructure to Auckland and Wellighton central-business districts.

New Zealand’s main ISPs are Vodafone, Spark, CallPlus with Slingshot and Orcon, 2degrees, Trustpower and REANNZ.

Rural Broadband

New Zealand are approaching the rural broadband situation through use of fixed-wireless technology with Vodafone and Spark offering retail broadband to those markets. But Vodafone and Chorus are setting a goal of at least 5Mbps bandwidth to 86% of rural customers. This includes Chorus implementing fibre backbones to Vodafone’s mobile towers, and most of the schools, libraries and health providers in New Zealand’s rural districts. It also includes establishing more of the cabinets associated with FTTN fibre-copper service in to rural districts to “push out” the bandwidth coverage.

Chorus even started off a Gigatown competition where a town could be set up for Gigabit broadband as the norm in a similar manner to some of the “Gigacities” that are happening in the UK. The town that won the competition ended up being Dunedin.

Next-generation broadband effort

The New Zealand Government are behind the provisioning of fibre-to-the-premises in all of New Zealand’s main urban centres that have a population of at least 10000. This is being backed by Chorus and the local electricity utilities, with an initial goal of 75% but now 80% since 2015.

This has been achieved through having more of the FTTN (fibre-copper) areas converted towards FTTP (fibre-to-the-premises) along with placing the FTTN cabinets nearer more of the rural population areas – it could be feasible to benefit from decent cost-effective broadband down at that bach you use as a “bolt-hole”.

Why push ahead with fibre broadband?

An article that I read called out why New Zealand is pushing ahead with fibre-to-the-premises rather than “sweating out” copper infrastructure for their broadband infrastructure. This in in comparison with what Openreach is doing in the UK and, to some extent, NBN in Australia where they are preferring to deploy fibre-copper technology seeing it as being cheaper to deploy than fibre-to-the-premises.

Here, it called out the situation in the UK compared to what is happening in New Zealand where the UK central government along with Openreach haven’t been supporting innovation when it comes to providing Internet service.  They highlighted the fact that the Kiwi government were willing to risk more money with a view to see a prosperous country with the benefit of an increased tax base thanks to increased Internet bandwidth and the fact that it could draw more business there. They also were seeing a network that was also cheaper when it came to operational costs such as being more energy-efficient. They also underscored that cellular-technology mobile networks can benefit thanks to many smaller base stations (microcells and picocells) connected by fibre-optic backbones rather than few large towers for the same coverage.

Conclusion

Governments on a national, regional and local level need to support deployment of next-generation technology that can do the job properly. It also includes supporting and protecting a competitive Internet-service marketplace at the infrastructure and retail levels in a manner that empowers value-for-money and service differentiation.

The benefits that these governments can achieve include a stronger financial benefit including a GDP uptick courtesy of the newer technology and businesses wanting to set up shop in that country; along with a future-proof technology approach that answers many realities.

NBN now offers British-style infrastructure-upgrade programs

Article – From the horse’s mouth

NBN

Area Switch product page

My Comments

You may have seen some articles on HomeNetworking01.info about how various local entities in the UK have gone about bringing an underserved community like a rural area up to current Internet-service expectations.

Here, an entity that is either a community collective in the case of B4RN who are pushing out FTTP fibre broadband to Northern-England villages or a private company in the case of Gigaclear pushing FTTP fibre broadband to small towns and villages in the Home Counties has worked alongside local government and the local citizenry to achieve these goals.

Australia’s NBN have headed towards a mixed-technology approach similar to BT Openreach in the UK. But they have offered an “area-switch” technology upgrade that can affect areas ranging from an apartment block to a town or suburb. This can be co-ordinated by a representative group like a building’s owner-corporation, a neighbourhood association, a local council or even a state government.

This will allow a area covered by satellite or fixed-wireless NBN technology to be upgraded to a wired technology or allow a fibre-copper setup (FTTN, FTTB or HFC) setup to be upgraded to FTTP full-fibre technology.

Like the other rollouts, the areas concerned must be contiguous such as having all premises in a street or all units in a multi-premises development covered. Similarly, there will be a requirement to have the work performed when the area of concerned is being prepared for the NBN deployment or, in the case of a satellite or fixed-wireless upgrade, a neighbouring town is being equipped with a wired setup.

The main problem with the NBN approach is that it’s like BT Openreach offering a similar service in the UK – they could wrap communities around their thumbs by, for example, charging too much or delaying rollouts. The Australian Government need to look at what has been going on in the UK with the likes of B4RN, Gigaclear and Hyperoptic where these organisations have established their own infrastructure to answer broadband-service problems by compete with the established provider.

Sky reduces prices on fibre broadband in York

Article

York UK aerial view courtesy of DACP [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons

Sky offering cut-price next-generation broadband in York

Sky Broadband Cuts Ultra Fibre Optic FTTH Pilot Service Price in York UK | ISPReview.co.uk

My Comments

Sky are increasing their fibre-to-the-premises foothold in York, North Yorkshire but also are reducing the price of these services for households along with marketing the services as “Ultra Fibre Optic” services. This is based on infrastructure being rolled out by them, TalkTalk and CityFibre across that city/

They were asked about whether they have a plan to build out their own FTTP infrastructure across the UK but had denied having that kind of ambition. But they are running separate FTTP pilot deployments across Basingstoke and Derbyshire with the same kind of technology, products and tariff charts.

Sky’s cut-price plans offer in common unlimited data use along with a router being supplied although customers have to fork out GBP£6.95 for delivery.

The plans are listed below:

  • 50Mbps for GBP£5 per month for 12 months, GBP£10 per month therafter
  • 100Mbps for GBP£10 per month for 6 months, GBP£20 per month thereafter
  • 940Mbps for GBP£20 per month for 6 months, GBP£30 per month thereafter

The customers are still charged the GBP£17.40 line rental, which has raised questions for an FTTH/P service run by Sky, TalkTalk and CityFibre. Here the question that may be raised is that if BT Openreach had anything to do with this, they may have had Sky put this in their tariff charts.

If Sky is a TV-content supplier, they could be in a position to run a single-pipe multiple-play service with their pay-TV content delivered via the fibre-optic infrastructure which could allow for the satellite dishes to go from the balconies. As well, it can become a foothold for Sky to roll out 4K UHDTV services to their customers as television is heading down that path.

The issue of the line-rental charge is still a thorny issue for a lot of UK providers because there isn’t a way to allow ISPs to provide a “naked” or “dry-loop” service where you don’t have to pay BT line-rental charges. On the other hand, Sky could start offering telephony over the fibre services for those of us who value the landline telephone service.

But what is happening is that some providers are reducing the price of fibre-to-the-premises next-generation broadband so as to allow users to justify taking advantage of the high speeds that it offers.

B4RN video which describes how they brought real broadband to the country

Article

VIDEO How B4RN’s Community 1Gbps FTTP Broadband Network Began | ISPReview.co.uk

From the horse’s mouth

B4RN

Promo video – Click / Tap to play

Digging For The Future video – Click / Tap to play

My Comments

If you are wanting to know what B4RN is all about, have a look at these two videos which underscore this effort.

Here, it is about the local community preparing a local fibre-optic infrastructure to bring in Gigabit-class real broadband in to their rural area in the North of England. This was more so where BT Openreach were showing very little attention to the rural areas, with them claiming they would offer 95% coverage of the UK and rural communities questioning which areas will represent the 5% that will miss out.

There is an emphasis on the community-focused effort where everyone pitches in to prepare and lay down the infrastructure for this fibre-optic service. The second video, “Digging For The Future”, even had a glimpse at a network-speed-test screenshot where the application’s needle hit the maximum, showing that there is real high-speed broadband available here.

I would see this and the Gigaclear efforts as a point of encouragement for country dwellers who fear they are being treated like second-class citizens when it comes to next-generation broadband.

AT&T litigate against broadband-infrastructure-preparation by US local government

Article

AT&T sues Louisville to stop Google Fiber from using its utility poles | ARS Technica

AT&T sues Louisville over utility pole law adopted for Google Fiber | WDRB-TV (41) Louisville

WDRB TV news segment video – Click to view
WDRB 41 Louisville News

 

From the horse’s mouth

Google Fiber

Blog Post

My Comments

A situation that is surfacing in the USA is that AT&T are litigating the City Of Louisville, Kentucky because this local government are implementing a “one-touch make-ready” policy concerning their power infrastructure being made ready for the provision of competing Internet service.

What is “dig-once” or “one-touch make-ready”?

An issue that always surfaces with the “pits, poles and pipes” infrastructure managed by utilities and telecommunications providers is being able to prepare this infrastructure at an early point including positioning the existing operator’s wiring and equipment in a manner that subsequent operators can use those pits, poles or pipes. The idea is to avoid the waiting time that an operator (and their potential customers) have to face along with the disturbance associated with long high-noise construction activity that is needed to prepare infrastructure for another operator’s use.

This policy is know as “dig once” for underground infrastructure or “one-touch make ready” for overhead infrastructure.

The USA situation

Most of the power-line infrastructure between the substations and the end-users in the USA is owned by a city’s or county’s local government or a utility company owned or managed by that local government. AT&T, Comcast and other established operators don’t like the idea of a local government facilitating competitive Internet and pay-TV service so they have had state governments write laws to frustrate the provision of Internet service by local governments such as municipal Wi-Fi hotzones.

The fact that a local government implements a “dig-once” or “one-touch make-ready” policy on the infrastructure it owns is considered a threat to the incumbent operator’s monopolistic behaviour because it is simply facilitating a competitor’s access to the pits, poles and pipes owned by the local government or its public utilities entity. AT&T reckons that what happens with “pits, poles and pipes” is under the control of the state government rather than a local government and that they see it as “seizing” their property if AT&T’s wiring is rearranged by a local government or other entities preparing poles for access by other operators.

Who can effectively provide and manage “pits, poles, pipes and towers” infrastructure?

What is surfacing is a courtroom debate about how a local government or utility company can manage their “pits, poles and pipes” infrastructure in the context of facilitating the use of this infrastructure by other operators. Louisville’s local government, Google FIber and other organisations intent on seeing real competition in the USA’s fixed-broadband market are defending or providing moral support for the defence of this policy.

In some ways, this case could affect how access rights, leases and easements on private land for utilities and telecommunications services are granted; along with how independently-owned “pits, poles, pipes and towers” infrastructure is operated. This can range from a fire brigade providing space on its radio tower or a building owner leasing the top of their tall building to radio-based communications providers; a property owner providing a “once-and-for-all” easement for multiple local telecommunications providers to use; or an apartment block or similar development being wired up for one or more broadband services alongside the established telephony and cable providers.

Here, the question that could be raised is the amount of power established operators can have over the same physical infrastructure when it comes to admitting other operators and whether the infrastructure’s owners can set standards concerning the operators “wires’, antennas and equipment”.

This is a case that is of interest to anyone like public or private entities who are in a position to provide infrastructure along with service providers who want to provide competing telecommunications service.

Huntsville integrates Google Fiber and a municipal fibre-optic network

Articles Welcome To Huntsville Gig City USA sign courtesy of City Of Huntsville, Alabama

Google Fiber is Coming to Huntsville, Alabama | DSL Reports

Google Fiber comes to Alabama through a city-run network | Engadget

Huntsville, Alabama, has NASA, US Missile Command … and now gigabit Google Fiber | The Register

From the horse’s mouth

Google Fiber

Blog Post

Sign-up / Notification page

City Of Huntsville, Alabama (local government)

Press Release

My Comments

It is easy to doubt that next-generation fibre-optic broadband would show up in Alabama, one of the most conservative of the states in the USA. But Huntsville, a city with 180,000 people, has taken the challenge.

This is because Huntsville has been found to be the best educated metropolitan area in Alabama and has been known as “Rocket City” due to the US Missile Command and NASA setting up shop there, thus leading to an increase in the number of engineers in that city.

The local government in Huntsville have, with the co-operation of Huntsville Utilities are laying down fibre-optic infrastructure as part of establishing a 21st-century smart power grid in that city. But they facilitated Google setting up their Google Fiber next-generation FTTP broadband service by leasing the infrastructure to Google Fiber. Tommy Battle, the Mayor of Huntsville and Jay Stowe, the CEO of Huntsville Utilities has put his weight behind this effort. As well, the arrival of Google Fiber in Huntsville would strengthen that city’s credibility as a tech centre especially where a lot of research data is being exchanged.

If Google were to set up their Google Fiber next-generation broadband network, they either would have to create their own network, purchase an existing fibre-optic network like a “dark-fibre” network or lease bandwidth on an operational network. By leasing the network from Huntsville Utilities, they would be foregoing the control they have over the infrastructure but would be saving on the start-up time and capital expenditure for establishing or increasing their footprint.

Hut Huntsville could explore the feasibility of allowing multiple competing ISPs and telcos to operate on this same infrastructure to open the path for increased service-level competition in that city. This is similar to what is being undertaken in a lot of Europe and Oceania where multiple operators are able to rent space on the same infrastructure.

It also is a way to prove to other US cities and states that municipal-owned or state-owned infrastructure that competes with the established “Baby-Bell” telco or cable-TV company isn’t necessarily a waste of taxpayers’ money as Comcast and AT&T would like us to believe. Rather the government can, through a separate entity, lease the infrastructure to competing operators and milk money from this leasing effort.

As well, this can be a chance for the communications industry to investigate the possibility of European-style service competition where competing services rent space on the same infrastructure and infrastructure owners can compete with each other when it comes to offering service to ISPs or enterprises.

B4RN progresses on bringing Gigabit broadband to rural North England

Article

B4RN Bring 1Gbps Broadband to 1,600 Rural Homes in North England | ISP Review

Previous Coverage

The soil has been turned for fibre-optic Internet in rural Yorkshire (14 January 2015)

A fibre network to cover Lancashire’s rural parishes (22 August 2011)

My Comments

Yorkshire Dales By Kreuzschnabel (Own work) [CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0), GFDL (http://www.gnu.org/copyleft/fdl.html) or FAL], via Wikimedia Commons

B4RN reaches in to more of North England with real broadband

In 2011, there was a valiant effort that started off to cover parts of the north of England with real broadband Internet service. This was in the form of B4RN (Broadband For Rural North) which is a community effort that is based on local contribution including the contribution of personal effort to deploy the service. The standard of this service is a pure-play symmetrical Gigabit fibre-to-the-premises broadband service but B4RN are facilitating VoIP telephony in conjunction with Vonage, an American pure-play VoIP provider who has set up presence in the UK.

This effort has encompassed Yorkshire, Lancashire and Cumbria and there has been strong local interest and participation because of the fact that BT have been neglecting many rural areas. This state of affairs is something that a lot of people who dwell or work in rural areas sadly experience. The rollout has had the locals face many problems relating to its deployment and had them work out how to solve them.

Just lately, the B4RN effort has connected 1600 premises with 100 connected per month with the figure driven by the available effort. It has yielded a 65% service takeup with the price payable by end users being GBP£30 per month for the symmetrical Gigabit unlimited service and a GBP£150 connection fee.

As well, most of the original network, which encompasses 800km of core network, has been laid but the B4RN effort is expanding to more of rural North England. The same effort has been able to “pick up” areas where other projects have failed like Cumbria’s Fibre GarDen scheme.

I have read some accounts on the Yealands page where this network has enabled small businesses and community organisations. One of these is a small garage (Facebook link) who specialise in tuning cars for performance being able to exchange files with a partner based in Blackpool to modify engine-management units in order to performance-tune those cars. As well, the St. Johns Anglican church in Yealand which is one of those archetypal English village churches, ended up being connected to the B4RN broadband network and took advantage of this technology to “broadcast” a funeral service that they hosted to family members based in Sydney, Australia. They even want to take this further for sharing the wedding and funeral services that they host with participants who are separated by distance.

Like with Gigaclear, B4RN raised the issue of BT Openreach overbuilding their infrastructure but it may be seen as an effort to nawt because of a significant customer base who have invested in it. A question that may end up being raised is whether B4RN will end up becoming wholesale infrastructure for other retail ISPs rather than just an “end-to-end” provider. This would encompass the availability of multiple-play services via that infrastructure.

What B4RN is showing is that the rural areas have as much need for real broadband as urban areas and is highlighting that these areas can be about moving towards the country or starting a business there without losing the concept of real broadband.

New ISP players working against established players to provide competitive Internet service

Article

Gigaclear and Hyperoptic Highlight Problems with UK Broadband and BT | ISPReview.co.uk

My Comments

Aylesbury Vale countryside picture courtesy of Adam Bell (FlyingDodo)

Questions are now raised regarding independent operators providing real broadband to the countryside

The article I read in ISPReview has highlighted some problems that affect the existence of competitive next-generation broadband Internet service in the UK. These same problems can also affect other countries like those in the North American, South East Asian and Australasian areas to varying degrees.

It is based on interviews with Matthew Hare from Gigaclear, Dana Tobak from Hyperoptic and Scott Coats from the Wireless Infrastructure Group, all whom are running up against an incumbent telecommunications company who effectively owns the infrastructure in most of the country and is effectively given a fair bit of blessing from a national or regional government. This can be through state aid as part of a broadband-improvement scheme or through a legal “right of way” that proscribes competitors from operating in the area of concern. In the case of the UK, it is Openreach who is a BT spin-off that manages the telecommunications infrastructure in that country and they have been dominating the state-assisted “Broadband Delivery UK” projects that provide next-generation broadband to most of rural UK.

Apartment block

.. and apartment blocks in big cities

Issues that were raised were:

  • The dominance of a particular entity when it comes to delivering infrastructure for next-generation broadband in the UK
  • The costs associated with deploying new infrastructure
  • Business-hostile local-government property rates that affect the provision of service infrastructure by a private company, especially fibre-optic cable used for next-generation telecommunications
  • The difficulty of gaining access to the “pits, poles and pipes” infrastructure that BT Openreach owns or has exclusive access to; and
  • Whether BT and Openreach be fully and legally separated such as to make Openreach an entity controlled by the national government or local governments; or have it as a separate company.

Gigaclear are providing a 5Gbps fibre-to-the-premises service in to rural areas and commmuter towns in East Anglia and some of the Home Counties while Hyperoptic are providing a 1Gbps fibre-to-the-premises service to large multi-dwelling units in most of the UK’s main cities.

Gigaclear has effectively invested GBP£1000 / property and has found that the operating costs for pure-fibre setups are less than the costs for fibre-copper because there is no need to run electricity down the line and it is a modern robust technology. But they have paid many times the projected cost for some deployments like in Kent due to shodddy workmanship.

Matthew Hare from Gigaclear was highlighting BT swallowing up most of the BDUK contracts but he has picked up a few smaller Phase 2 contracts like projects in Gloucestershire, Essex and Berkshire. He had noticed a few of the local authorities being helpful about these rollouts like in Kent where Kent county council de-scoped (provided exclusive access) for Gigaclear projects compared to Rutlant where the Rutland county council and BT overbuilt Gigaclear with FTTC service.

This comes to the big question about whether an overbuild by one or more competing operators permit real infrastructure-level service competition. Some countries, most notably France have found that an overbuild by a competing infrastructure provider can achieve this level of competition.

Dana Tobak from Hyperoptic highlighted that fibre-copper technology like fibre-to-the-cabinet is a short-lived asset. She also highlighted the issue of access to the “pits, poles and pipes” owned by Openreach being a burdensome process for competing operators. This ranged from costs to onerous procedures and restrictions sucn as not being able to provide business broadband services.

There was also the issue of business-level property rates and taxes levied on the infrastructure where the workflow associated with these costs was onerous thanks to the Valuations Office Agency. This made it difficult for an operator to factor in the property rates due on the infrastructure when they are costing a rollout. To the same extent, the property taxes levied by a local government could be seen as a bargaining chip especially where the local government is behind the rollout in order to see effective increase in their local land value and tax base.

The question associated with an independent Openreach managing the infrastructure was whether this would breed real service competition. An issue that was highlighted was that Openreach could focus on the premium pure-fibre-based service and make life hard for small-time operators like regional-focused operators or startups who want ot serve the British market. But Matthew Hare reckons that it is better for the UK, especially rural areas to see Openreach as an independent operator.

Here, ISPReview have raised the issue of competitive next-generation broadband provision with independent “own-infrastructure” operators and covered some of the main hurdles facing these operators. This includes proper management of costs including infrastructure-based property taxes and rates; the creation of sustainable competition including build-over rights; incumbent operators’ behaviour including preferential treatment by governments; and access to the same  “pits, pipes and poles” by competing operators.