Posted: 08th Feb, 2010 By: MarkJ
It's reported that BT and Ofcom are in discussions that could result in rival ISPs being given access to the UK operator’s fibre optic broadband ducts (underground tubes where fibre optic cable can be run). This would allow BT's competitors to deploy their own fibre optic cable infrastructure without having to dig up any roads, assuming that the costs and regulations were fair.
BT's CEO, Ian Livingston, told the Financial Times:"We told Ofcom last year we're willing to provide open access to our ducts . . . and we are working with them on how to achieve it. Although it's unlikely to be the silver bullet to get fibre to every home [ ED: 100Mbps FTTH ], open access to all ducts, not just ours, might help BT and others extend coverage and so we would like to see a future government support such a move."
Several ISPs, including TalkTalk and Sky Broadband UK, have expressed frustration at the lack of flexibility found in BT Wholesale's new 'up to' 40Mbps FTTC broadband products. That frustration is understandable because most unbundled ( LLU ) providers relish their ability to offer diverse packages that do not rely upon BT.
Sadly unbundled flexibility is easily lost within the confines of a standard wholesale product, which is presently the only way to get FTTC. One solution could be for the major broadband operators to invest in deploying their own fibre optic infrastructure. However, without access to BT's ducts, this could easily become very expensive in parts of the country where the only alternative would be to dig up roads.
The move might even save BT Wholesale having to make its products more competitive and thus less profitable. It could also be viewed as favourable by an incoming Conservative government. Suffice to say that BT is keep one foot on both sides of the fence, while still also offering support for Labour's 50p +vat per month fixed phone line next gen broadband tax.
UPDATE 12:20pmBT has kindly sent us a full copy of Ian Livingston's statement, which the FT did not publish.
Ian Livingston's full statement:
"We told Ofcom last year we're willing to provide open access to our ducts and poles and we are working with them on how to achieve it. Other companies already have access to our exchanges so we're relaxed about providing them with another form of access as well.
Although it's unlikely to be the silver bullet to get fibre to every home, open access to all ducts, not just ours, might help BT and others extend coverage and so we would like to see a future government support such a move
Duct access has been adopted in other countries but normally as the only way for companies to access an incumbent's network. There are plenty of existing ways in which companies can access BT's network and so its impact may be less dramatic in the UK. We will only know for sure once they are opened. BT is taking a considerable degree of commercial risk by rolling out fibre and it will be interesting to see if others are willing to join us."
The additional paragraph is quite interesting, especially since a number of operators are already rolling out FTTH fibre optic broadband networks even without access to BT's ducts. i3 Group in particular is busy in the cities of Bournemouth and Dundee.
It's also worth looking at this from another angle, one that could see BT being given access to any ducts owned by its rivals. That is surely a crucial point and one that could be difficult for smaller suppliers to manage. On the other hand, as per our earlier remark, it all comes down to money and regulation.