Earlier this year, BT and KCOM were designated as Universal Service Providers (USP) to deliver broadband universal service connections and services. Ofcom set the conditions that will apply to them. From 20 March 2020 consumers will be able to request these services. The USPs are entitled to claim any costs that would not be appropriate for them to cover. Ofcom is proposing rules and procedures for these providers in order to make a claim for any unfair cost burden involved. The procedures would apply to the broadband USO, but also to any other universal service obligations.
As of March 2020 homes and businesses will have the right to request a decent broadband service to their property (decent being defined as a connection offering speeds of at least 10Mbit/s download and 1Mbit/s upload). Ofcom has now announced that it will be BT and KCOM who will be designated as the universal service providers for that broadband connection.
Currently there are 620,000 homes and offices struggling to get a decent broadband service who would currently be in scope of this project.
From March 20th, those eligible will be able to start making requests for a connection to either BT (UK excluding Hull) and KCOM (Hull area). The providers, once eligibility is confirmed (which will include determining whether the property is due to be connected under another publicly-funded scheme within 12 months), must establish a connection as quickly as possible and cover the initial cost up to £3,400. Costs above this threshold must be paid for by the customer.
The recent update to Ofcom’s Connected Nations report – which provides information on coverage and service availability for both internet and mobile phones – reveals that ultrafast broadband speeds (defined as download speeds over 300Mbit/s) are now available to properties in just over half the country. Superfast speeds of at least 30Mbit/s have reached 95% of UK premises and full-fibre broadband has risen a percentage point to 7% coverage, or 300,000 additions in the four months since the last report.
Ofcom has published its work plan for 2019/2020 laying out its priorities and projects for the coming financial year following consultation with the public and industry. The four main focus areas for Ofcom are:
* Better broadband – this will include the implementation of the broadband Universal Service Obligation and supporting investment in fibre though duct and pole access – and better mobile – through auctioning more spectrum to boost rural reception and preparing for 5G.
* Fairness for customers – to ensure the fairer treatment of customers with fairer and clearer pricing and more transparency around deals availability. Ofcom will also be increasing the budget for its Communications Consumer panel.
* Supporting UK broadcasting – Ofcom will look to support regional TV productions and review the BBC’s news and current affairs programming and commercial activities as well as ensure that public service channels remain easily locatable in the face of technology developments.
* Online harms – reflecting the growing concerns around protecting people online and to ensure that audiences understand better the online world, Ofcom will carry out more work around media literacy and research into specific harms to include awareness raising.
Ofcom has updated its plan following the Government’s publication of its draft Statement of Strategic Priorities covering telecoms, spectrum and the postal service to reflect the priorities that were set by DCMS.
Whilst there are few surprises in the specific projects proposed for the year, with many ongoing and rolling over from last year, the first quarter should see Statements on the Broadband USO, the completion of the assessment for both the Business Connectivity Market Review and the Physical Infrastructure market review with the expected introduction of an unrestricted duct and pole access remedy.
Ofcom also references the work it is undertaking around Brexit and European legislation and how international cooperation with other bodies is expected to continue.
Ofcom has set out its thinking for which providers should be delivering the Government’s Universal Service Order to allow for decent broadband connections across the UK. This consultation follows on from a summer request for interested providers to put themselves forward. As a result, Ofcom proposes to designate BT as the Universal Service Provider for the whole of the UK bar Hull which will be served by KCOM.
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.
Ofcom today called for industry bodies to set out their interest in becoming Universal Service Providers of broadband – as mandated by the legislative order established earlier this year delineating the requirements of the Government’s USO. (more…)
Addressing the CBI Annual Dinner last night, Chancellor Philip Hammond put full fibre infrastructure at the heart of his vision for a post- Brexit Britain leading the world in innovation. Pledging not only to deliver full fibre connections to 15 million premises by 2025, he also committed “to deliver a nationwide full-fibre to the premises network by 2033”.
Government today laid legislation setting the design of the broadband Universal Service Obligation (USO). This follows Government confirmation in December last year that having access to high speed broadband would be a legal right.
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).
The Government announced an additional public fund of a total of £645 million which will further extend superfast broadband coverage to 98% of UK premises by 2020. This is an update to figures released towards the end of December 2016, indicating that a total of £440 million would help reach premises beyond the 95% target (by end of 2017) under the BDUK scheme.
This weekend saw two big developments in the bid to create a Broadband Universal Service Obligation (USO) with the Government launching its consultation on the design of a USO and BT making a voluntary offer to deliver this service.
Universality and Value for Money: Government Options for Designing the Broadband Universal Service ObligationMatthew Evans
The Broadband Stakeholder Group (BSG) publishes report on the design considerations for a broadband Universal Service Obligation (USO)
- Designing the USO is extremely complicated but the cost threshold for each premise is extremely sensitive
- BSG research shows that a cost threshold of between £1500-3000 maximises the net public benefit to the UK
- To maximise the number of premises that can get access to good quality broadband through the USO demand, aggregation is needed
- Where the cost of connecting premises is above the cost threshold then an alternative measure should be made available
The Broadband Stakeholder Group (BSG) has today launched Impact of a Broadband USO in the UK, a report commissioned from Plum Consulting to analyse the impact of the design considerations of a potential broadband USO in the UK. This report complements the technical advice produced by Ofcom in December 2016 for Government.
Government announced yesterday that £440m will be reinvested in deploying superfast broadband connections to 600,000 extra premises. The cash boost is a result of efficiency savings (£150m) and the BDUK clawback mechanism (reinvestment of subsidies when people take up superfast connections covered by the programme – meaning that BT will be releasing £292m).