BSG comment

Gigabit Connectivity to New Build

Mandating the provision of fibre connectivity as standard in new build developments has been a longstanding policy priority for BSG and we responded to the DCMS consultation in December 2018. We welcome this week’s announcement that developers in England will now be required to install gigabit-capable infrastructure and, subject to a cost cap, a gigabit-capable connection. This will deliver internet speeds 200 times faster than you would need to watch an HD film on Netflix. (more…)

Monthly update from the Broadband Stakeholder Group

The Broadband Stakeholder Group has published its latest monthly newsletter “Connectivity sets the agenda.”

The bulletin outlined key updates in industry-related regulation and policy from January 2020 – including the reintroduction into the parliamentary timetable of the Telecommunications Infrastructure Bill – and the much-anticipated conclusion to the Telecom Supply Chain Review. You can read more about the review in detail via our news post.

Our newsletter also provided an overview of developments in consumer protection and child protection regulation, and what lies ahead following the UK’s exit from the European Union on 31 January 2020. BSG and techUK are promoting the interests of the digital infrastructure industry in a number of other recommendations to Government which include improved access for UK companies to priority international telecoms markets in future free trade agreements.

If you would like to receive our next update, you can sign up to the BSG newsletter in the footer of our website below.

Ofcom’s proposals for stimulating greater investment in fibre broadband

Ofcom has published its first combined five-year review of Wholesale Fixed Telecoms regulation which maps out how it will regulate Openreach between April 2021 and March 2026 for both the residential and businesses connectivity markets (previously the regulator separately assessed the Wholesale Local Access Market Review of residential, and the Business Connectivity Market Review).

Ofcom’s four-point plan aims to support competitive investment in fibre networks and competition in gigabit capable services, ensuring world class broadband services are available to as many people and businesses as possible.

  1. Improving the business case for fibre investment. In more urban areas, Ofcom proposes that the wholesale price that Openreach charges retail providers for its entry-level (40 Mbit/s) superfast broadband service is capped to inflation. This follows a cut Ofcom made to this product in its 2018 review. Ofcom also proposes that Openreach can charge a small premium for regulated products if they are delivered over full fibre. Openreach’s fastest fibre services will remain free from pricing regulation to support the investment competition between network builders.
  2. Protecting customers and driving competition. Ofcom will ensure that people can still access affordable broadband by capping Openreach’s wholesale charges on its slower copper broadband services. Openreach will be restricted from being able to offer discounts that could stifle investment by its rivals.
  3. Taking rural areas into the fast lane. In rural areas where there is no prospect of multiple networks being built, Ofcom will support investment by Openreach which is the only operator with a large-scale rural network, by allowing it to recover investment costs across the wholesale prices of a wider range of services, reducing the risk of its investment. If BT provides a firm commitment to build fibre in these parts of the country, Ofcom will include these costs in its prices upfront. If not, Ofcom will only allow it to recover these costs after it lays new fibre. The UK Government is planning to invest £5bn to reach the most challenging 20% of the UK and is working closely with Ofcom on its plans for this.
  4. Closing the copper network. Ofcom plans to remove regulation on Openreach’s copper products in areas where full fibre is built to support the migration/switching of customers to the new fibre network. Ofcom will be transferring its regulation – including price protections – from copper to new fibre services.

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Goals for a Gigabit Europe

A WIK conference held last week in Brussels sought to examine the likely impact of the recently agreed EU Electronic Communications Code especially as regards the EU’s goal to be a Gigabit society with greater fibre deployment, in line with the UK’s ambition to see nationwide full fibre roll out by 2033. The Code once fully adopted will have a two year time frame before the new rules will apply across Europe.

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A long read – Forging our Full-Fibre and 5G Future

The Government has announced the conclusion of its Future Telecoms Infrastructure Review. The Review which was announced in the Industrial Strategy sets out the targets and overall policy framework for the sector for the next 15 years.

The headlines are a confirmation of the Government’s targets for full fibre coverage to reach 15 million premises by 2025 and full coverage by 2033, with 5G coverage by 2027. The targets and accompanying policy shifts – in particular the change in competition models – mark a significant evolution in the Government’s approach.

Commenting on the publication of the report the BSG’s Chair, Richard Hooper CBE, commented The BSG welcomes the Government’s publication of its Future Telecoms Infrastructure Review and is pleased to be playing a useful role in barrier-busting in implementing fixed and mobile networks, and in PSTN switch-off which is the important precursor to fibre switchover.”

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Forging our 5G Future: Barriers and Solutions to network deployment

The Broadband Stakeholder Group has published a report on ‘Lowering barriers to 5G deployment‘. It outlines the challenges and solutions to deploying new mobile infrastructure necessary to meet the UK Government’s ambition to be a 5G leader.

The report – ‘Lowering barriers to 5G deployment’ – is the outcome of a study by Analysys Mason researching barriers to 5G deployment from both industry and local authority perspectives in the UK, identifying key challenges faced during the deployment process. The report aims to assist the UK Government in delivering its ambition to be a 5G leader by identifying and proposing solutions to current and potential barriers to network deployment.

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Is there a bigger role for satellite in the UK broadband market?

Satellite broadband hasn’t really taken off in the UK in the way that we might have expected it would 10-15 years ago. There are many reasons for this, both technical (latency issues affecting video calling and gaming applications and the potential for weather related outages) and economic (expensive terminal equipment and relatively high ongoing data costs).

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Silver linings in failure: Benefits of the MIP

I’ve written before about why the Mobile Infrastructure Project (MIP) failed to live up to its expectations. In summary, building infrastructure is hard in any case and it’s even harder when neither the problem you want to solve nor solution are agreed upon by the parties involved. Last week though the Government published the Mobile Infrastructure Project: Impact and Benefits Report so it’s only fair to pay attention to the benefits that it delivered too.

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BSG Comment – What does Brexit mean for the UK telecoms industry?

There is no straight answer to this question. The scale of the risks and opportunities for the telecoms industry depends on the future relationship between the UK, the EU and the rest of the world. The ramifications of decades of EU legislation, policies and initiatives in the UK system are difficult to untangle. However, it is possible to identify immediate concerns for the industry and how these could be tackled.

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Ofcom passes the USO back to Government

Ofcom today published their technical advice to Government on the design of a broadband Universal Service Obligation. Ofcom were instructed to deliver its “views, evidence-based analysis and…recommendations??? by John Whittingdale, then Secretary of State for DCMS, in March 2016. It has certainly delivered on the first two although in making clear that designing a USO is complex, it only offers a few recommendations. It will now be up to Government to make some of the thornier policy choices.

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BSG Comment: Government pushes towards a Fibre and 5G Future

The Government has briefed that it will be unveiling two new programmes in tomorrow’s Autumn Statement to make good on its view that the future is fibre (to the premise variety) and 5G. The BSG welcomes this focus on digital connectivity. All BSG members believe that good quality broadband underpins, drives and improves our society and economy.

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Fibre and 5G are the Future

The first lines of Matt Hancock’s speech to Broadband World Forum last week weren’t shy in setting out the general theme. Hancock’s previous speeches had shown that more than most, he ‘gets’ the role that technology can, does and may play in all of our lives. So did his predecessor Ed Vaisey. But what marked this speech out was an unapologetic focus on fibre; as he described it, the future.

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Business rates revaluation will hit broadband infrastructure providers…and ultimately consumers

The Valuation Office Agency (VOA) announced last week a fourfold rise in business rates (taxes on the value of real estates) on some major infrastructure providers’ bills. The revaluation was judged “excessive??? by BT, whose Bill increases from £165m to £743m per annum,  who added that the increase in rates will likely lead to higher prices for consumers and businesses. Virgin Media echoed BT’s concerns on the likely negative impact of the increase on future investment decision in telecoms infrastructure.

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