By: MarkJ - 8 April, 2011 (8:22 AM) - Score: 2656 - Fixed Line Broadband
fluidata uk business ispThe Managing Director (MD) of UK business ISP Fluidata, Piers Daniell, has questioned the real motives behind this weeks earlier threat from several major ISPs to shun the governments superfast broadband pilots unless BT is forced to cut the proposed access prices for its cable ducts and telegraph poles.

The group of senior executives, which included representatives' from Virgin Media , TalkTalk , Geo , Vtesse Networks ( Vtesse Broadband ) and Fujitsu, demanded that the UK government intervene in order to prevent BT from setting its Physical Infrastructure Access (PIA) trial prices too high.

The letter, which was sent to the governments Communications Minister - Ed Vaizey - further warned that it would be difficult for rivals to offer competitive bids for any of the future Broadband Delivery UK (BDUK) pilots unless this problem was addressed.

However, BT claims that the actual pricing of its duct sharing product is 15% below the average and compares very favourably with similar solutions offered in other European markets (e.g. France, Spain, Portugal and Germany). That is, of course, BT's own figure. On the other hand, being below the average isn't necessarily equal to a good price level; the average itself could still potentially be too high.

Piers Daniell commented:

"The rural piece being supported by Government in the form of BDUK is to help build new networks across the country to support high speed internet access. These companies are using this as an excuse that BT has the commercial edge and hence there is no point bidding for these projects. One could argue however, that on the whole these businesses never have had such an appetite for low density populations and instead want access to BT ducts in urban areas where their networks need expansion.

In the case of Sky and TalkTalk being involved I think this is much more opportunistic rather than serious as neither has ever been directly involved in infrastructure apart from housing routers in exchanges as part of their LLU networks. Building out the last mile is certainly a different kettle of fish and something I can see companies such as theirs outsourcing going forward. That leaves the likes of Geo and Virgin who have their own networks and, from what I believe, give no access to BT to any of their own ducts or poles."

The situation understandably drew a furious response from BT, which echoed many of Daniell's points about a lack of real infrastructure development ambition. However, some of the letters signatories might argue that they are already very small and should not have to open their ducts up due to being at a significant competitive disadvantage.

BTOpenreach was forced to admit last month that "only one" customer had so far signed up to the terms and conditions of its cable duct and telegraph pole sharing trial (here). So far neither Ofcom nor the government have felt the need to step in and a delay to the process is beginning to look more likely.
Share: Slash., Stumble, Facebook, Digg, Blink, Reddit, Delicious, Diigo
Option: Link | Search

Comments: 6

asa logoMrJ
Posted: 8 April, 2011 - 9:55 AM
Link to comment

"15% below average"

Just saying average is open to abuse, it just depends exactly what average they mean (no pun intended).

Average could be the arithmetic mean, the median, the mode, or any other varient (http://en.wikipedia.org/wiki/Average#Types) - statistics always exist for promoting yourself in some shape or form...
asa logoTheLeveller
Posted: 8 April, 2011 - 11:38 AM
Link to comment

Piers Daniell had better check his facts before he speaks. BT avails itself to leased fibre from Geo and others to support its customer networks. This is something they have categorically said they would not do themselves (as it erodes their leased line business). BT and other infrastructure based companies have the same alterior motive of expending their networks in to non-viable rural and urban areas. Mr. Daniell needs to answer why he hasn't availed himself of the competitively priced BT Openreach wholesale services in these areas? I guess he is happy with a single incumbent dictating which markets he and the rest of the service provider / ISP community can enter.
asa logoBTSUCKS
Posted: 12 April, 2011 - 12:33 PM
Link to comment

QUOTE"However, BT claims that the actual pricing of its duct sharing product is 15% below the average and compares very favourably with similar solutions offered in other European markets (e.g. France, Spain, Portugal and Germany). That is, of course, BT's own figure. On the other hand, being below the average isn't necessarily equal to a good price level; the average itself could still potentially be too high."

LOL BT maths, the comedy never gets old.
asa logocyberdoyle
Posted: 13 April, 2011 - 5:56 PM
Link to comment

I think BT should give up its rural infrastructure to anyone who is prepared to deliver a decent service over it. Or what about a price for anywhere within 3km from an exchange and a price for duct/pole share greatly reduced for anywhere further than that? That will be a good way to help get everyone connected, giving the market a leveler playing field to play on. Take away the stupid VOA tax for the first 5 years of new fibre lays and the job will be done. Without costing the government a bloody bean. What you haven't had you won't miss, and the ROI on everyone having access will stimulate the digital economy, save NHS, Council and education costs. WinWin.
chris
asa logoPhilT
Posted: 13 April, 2011 - 6:02 PM
Link to comment

If you take away the rates for 5 years you are costing the Government a lot of beans, otherwise there would be no point taking away the rates ? £8 per home connected per year is not a deal breaker.
asa logoDavid Brunnen
Posted: 13 April, 2011 - 6:04 PM
Link to comment

See also the link to ECTA's call for copper switch-off plan.
http://www.groupe-intellex.com/editorials/7-cma-leaders/280-fujitsu-and-friends-vote-for-ftth.html



Generated in 0.61048 seconds.
DB queries: 8

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved (Terms, Privacy Policy, Links (.), Live Chat & Website Rules).