UK ISP TalkTalk has written a letter to the CEO of the Government’s Broadband Delivery UK programme, Chris Townsend, which warns that “serious conflicts of interest” may exist if they continue to use research provided by Analysys Mason, an analyst firm that is also assisting BT in a number of related areas.
According to the letter, which has been seen by The Telegraph, the provider sought reassurance from the Government that Analysys Mason had official Government approval to also work for BT on related issues. “This reassurance has not been forthcoming,” said TalkTalk’s letter, which warned of a “perception that BT is being favoured due to holding influence over BDUK’s advisers.”
Analysys Mason has conducted a number of BT commissioned studies into broadband connectivity around the United Kingdom, such as this one that cautioned against the impact of Alternative Network (AltNet) providers being given access to Openreach’s (BT) cable ducts (here) and this one that praised the country’s current broadband capabilities (here).
On top of that TalkTalk noted that Analysys Mason were also doing some advisory work for BT as part of an on-going court case that relates to Ofcom’s new Dark Fibre proposals, which we assume reflects the case that Cityfibre began against Ofcom a few months ago (here). But TalkTalk are potentially one of those who might benefit from his measure and they thus see it as another possible conflict.
Extract from TalkTalk’s Letter to BDUK / DCMS
“Our primary concern … [is] that Analysys Mason is likely to place more weight on BT’s evidence, as their client, than on any evidence which may conflict with BT’s view. Analysys Mason’s findings in its report for BDUK may be influenced by its desire to secure more commercial work from BT.
An organisation which is writing pieces which purport to demonstrate that we will not be able to build a competitive fibre network … is likely as a matter of course to give less weight to our views than to the views of its client BT.”
The situation could perhaps be seen as an extension of the already bitter row over the future of Openreach (BT) as part of Ofcom’s Strategic Review, as well as any potential role that TalkTalk or other alternative networks may seek for themselves as part of the Broadband Delivery UK programme’s future roll-out contracts.
Mind you it’s worth pointing out that TalkTalk is working with Cityfibre on an FTTH/P roll-out in York, although we suspect they wouldn’t view that as conflict on the subject of Dark Fibre, even though both seem to reflect different sides of the competition argument.
Analysys Mason has also done plenty of non-BT commissioned work on broadband connectivity, such as this recent report for the EU (here) that delved into the costs of a pure fibre optic deployment.
We asked BT for a comment but they have declined and we’re still waiting to hear from Analysys Mason, although they’ve already declined to respond to a similar request from The Telegraph and so we don’t hold out much hope. Meanwhile the Government said that Analysys Mason won the contract via a “fair and transparent” open tender process.
In other news one of BT’s shareholders, Aviva Investors, has suggested that the operator should at least “explore” the option of completely separating itself from their prized Openreach network access division (here). Trevor Green, Aviva’s Head of UK Equities, said: “They obviously have been clear that they don’t want to do it, but that doesn’t mean it can’t be done.”
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