Demand for Superfast Broadband

Broadband DIY gets a tutorial

It’s fair to say that the UK’s experience of community led broadband schemes has not been evenly distributed. The work of B4RN and others is nothing sort of transformational but there have been other examples of networks collapsing under financial strain or more often simply never getting off the ground. Their reputation was further tarnished by the unsuccessful Rural Community Broadband Fund. One of the complaints from communities was that there were few easily accessible case studies and tutorials. BDUK have now rectified this with a good portal containing case studies and guidance.

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SME Voucher Connection Scheme – an economic success story?

A recent study (h/t Computer Weekly) on the economic impact of London’s superfast broadband connection voucher scheme shows that it could bring a £3bn boost to London SMEs within two years. Carried out by Adriot Economics, and supported by Point Topic, The Fifth Sector and Manchester University, the evidence comes from around 500 of the 12,000 London businesses who benefited from the scheme.

The SME Connection scheme was launched in late 2013 as part of the Super Connected Cities scheme. Despite some initial teething problems it quickly picked up speed, benefiting from an advertising push and a streamlined application process that included the ability to aggregate vouchers. When it closed in October 2015 55,000 vouchers – a one-off grant of up to £3000 – had been issued to SMEs in over 50 cities with over 700 suppliers taking part.

This report is the first to attempt to undertake an economic analysis of the scheme – something which the BSG called for in our Small Business Connectivity Requirements Report last year. London’s scheme allocated £18m over the two years with an average cost of £1,500. This resulted in an average speed increase from 15.9 Mbit/s to 86.6 Mbit/s. The range of services delivered can be seen in the graph:

Adroit E Download Speed of new SME service

 

In the short to medium term this resulted in increased efficiency and sales. It also resulted in productivity gains from staff time savings and increased ability for home and mobile workers. The report also identified longer term gains in terms of using this time to increase skills – and having better access to online courses.

On a conservative basis this should provide a boost of £3bn in the first two years and an additional £4bn over five years if the latent productivity gains are realised. In terms of Gross Value Added, the economic benefit is estimated to be £430m for Greater London and an additional 8,118 jobs. That’s an extremely impressive £23 GVA per £1 invested and a cost per job of £2,200.

The report doesn’t cover additional economic benefits such as those delivered to the suppliers, nor the extent to which it stimulated the market to deliver superfast broadband services (in fairness a non-trivial task).

Whilst the report was just focused on London and, by the author’s admission, survey results are still coming in – it does seem to beg the question of should Government have stopped the scheme when it did?

In fairness, Ed Vaizey made clear to the CMS Select Committee’s Inquiry into World-Class Connectivity he wanted the scheme to carry on – he was just unable to get the Treasury to agree. That’s not to say the scheme was perfect – whilst it was born out of the Super Connected Cities Programme, SMEs in rural areas would arguably benefit even more from such a scheme. But it was still a scheme that seems to be delivering economic benefits, popular amongst SMEs and broadly welcomed by the telecoms industry. With loud noises of industrial strategy and regions pushing the message that they are open for business, don’t be surprised if we see this revived in some form…

Fibre, infrastructure competition, a USO but no Duct Co

Ofcom today published their initial conclusions from the Digital Communications Review that they kicked off last year. Whilst these are officially their interim findings, the direction of travel is relatively clear; over the next 10 years, the UK will move towards an increasingly all-fibre future, with widespread availability of competing fibre networks driving the take-up of ultrafast services underpinned by a USO. Against the background of convergence, Ofcom will do more to make it easier to compare quality of service across fixed, mobile and bundled offers. Openreach understandably lies at the heart of much of this and whilst BT will be sure to feel additional pain, Ofcom are not proposing full structural separation, yet.

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Businesses connectivity needs to be reviewed by Government

Earlier this month, a survey by the Manufacturer’s Association (EEF) found that internet connectivity was increasingly central to manufacturer’s operations and that Britain’s success in leading the fourth industrial revolution relied on improvements to affordability and internet infrastructure. In a keynote speech at the EEF annual conference today, Business Secretary Sajid Javid announced the review of business broadband “to reduce the barriers to affordable, high-quality fibre-broadband”.

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Analysys Mason Report: UK staying ahead of the curve for the next 5 years

Analysys Mason today published a report comparing the UK’s fixed telecoms market to the five major European countries and several other leading digital countries. It found that the UK is currently ahead of its European competitors on measures such as average speed*, superfast broadband coverage and take-up and will soon be outperforming countries such as Japan and the USA.

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BSG Publishes New Model on Small Businesses’ Connectivity Requirements

BSG calls for continued focus on reducing costs to allow superfast connectivity to be made available to all business premises as quickly as possible

 

2nd September 2015. The Broadband Stakeholder Group (BSG), the Government’s leading advisory group on broadband, today published a report on the current and future connectivity requirements of small businesses. The research found that whilst median downstream demand for small business premises will rise from 5Mbit/s in 2015 to 8.1Mbit/s in 2025 demand for the 95th percentile will rise from 12.9 Mbit/s to 41.1 Mbit/s.

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Ofcom’s action plan for broadband services for SMEs

Ofcom yesterday launched an action plan for improving the broadband services that are available to the UK’s small and medium sized enterprises (SMEs). Whilst they found that the vast majority of SMEs are satisfied with the communications and are well catered for, they did discover a significant minority who had less favourable experiences. Ofcom highlighted four issues that they feel need more attention; the availability of superfast broadband, a concentrated retail market structure, concerns around quality of service, and SMEs struggling to navigate the market.

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Government rollout of superfast broadband reaches nearly 2.5 million homes and businesses

The Government released its latest report on the progress made by the Broadband Delivery UK (BDUK) programme. Thanks to this, superfast broadband is now available to over 2.4 million premises in the UK (an increase of 500 000 more premises since December 2014). This, according to the report, equates to nearly 8000 premises covered per £million of BDUK expenditure. 

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Connecting Hull

In November last year, Three and EE announced an agreement with CityFibre to roll-out “dark-fibre” backhaul connections for mobile masts in the city of Hull. I attended an event last Friday to hear about the progress made in the delivery of the initial phase of this project, the first of its kind in the UK.

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CES: 4K and Smart Devices – the view from afar

So 2015’s bigger, louder and better (?) Consumer Electronics Show in Las Vegas has closed.  From afar it looked as though this year was more about the direction and theme of the tech industry – with more 4K/Ultra High Definition televisions and an explosion in ‘connected’ devices appearing to be the main two– rather than about one device winning through.

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