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Hull ISP KC Warns of UK Two Tier Fibre Optic Broadband Deployment in 2012

Posted: 05th Jan, 2012 By: MarkJ
Hull ISP kc LogoThe Director of Consumer Services at KC (KCOM Group Plc), an incumbent phone and broadband provider for Hull and East Riding (Yorkshire), has released a list of his own top 4 predictions for the UK broadband and internet market in 2012; but most of them appear to already be happening.

Top of Nick Thompson's list is a prediction that the different fibre strategies from big ISPs ( FTTC vs. FTTH ) could result in the emergence of a 'two-tier fibre deployment'. This references the difference between slower copper / VDSL2 based FTTC (Fibre-to-the-Cabinet) technology and true ultrafast fibre optic connectivity through FTTH / FTTP (Fibre-to-the-Home).
1. Two Tier fibre – fttc vs. ftth

Fibre has been the story of 2011 and with many ISPs announcing their latest fibre plans and the government making funding available for superfast broadband in rural areas, 2012 looks set to be a critical year for developing the UK’s broadband infrastructure. Despite the hype, it will realistically be at least the end of 2012 before we see any sort of real difference overall and a lot longer before universal 2Mbps is a reality.

This time last year many consumers were concerned about the issue of net neutrality and the establishment of a “two-tier internet”, but with different fibre strategies from big ISPs (FTTC vs. FTTH) we could see the emergence of ‘two-tier fibre deployment’, as with FTTC deployment, those who live over 1.5kms away from their closest exchange may see little improvement to their download speeds.


2. Continued pressures on bandwidth

The rise of streaming media in 2011 and the popularity of services like Spotify has resulted in a shift in consumer broadband considerations from being solely concerned with speed and price, to also factoring in reliability of connections. With Netflix due to hit the UK in early 2012, growing demand for bandwidth will have the potential to cause frustration.

A recent study by uSwitch Tech found during peak periods the UK’s average internet download speeds are some 35 per cent slower than in quieter periods of the day. The rise of tablets, smartphones and mobile devices contributes yet further to the surging demand for high speed, reliable connections. Demand for mobile internet may also lead to the introduction of widespread meshed WIFI zones, with the idea that you’ll be able to walk seamlessly from zone to zone with no disruption to internet access.


3. A change in audience

2011 saw the rise of older surfers taking to the waves as reports revealed UK web users over the age of 60 are amongst the people most frequently online. Whilst the older generation remain hesitant to adopt new internet technologies and devices that are driving demand for superfast broadband, silver surfers’ skills are becoming more sophisticated.

The majority now use the internet for online banking and shopping, as well more data hungry programmes like Skype, which is adding to the demand for more bandwidth. As the UK becomes an increasingly aging population, we may see a shift as older surfers continue to grow in number, and the internet becomes ever more mainstream for all.


4. Growing divide between broadband ‘haves’ and ‘have-nots’

The announcement last year that the government has delayed its target date to deliver at least 2Mbps broadband to all British homes will continue to frustrate those living in more remote parts of the UK in 2012. This, coupled with an additional £100m of government funding to set up 14 ‘super connected’ cities will cause yet further discontent amongst the broadband ‘have-nots’.

Despite the welcome Community Rural Broadband Fund of £20m pledged in the Chancellor’s Autumn statement, most ISPs are continuing to focus their efforts on urban centres, which largely already enjoy decent broadband speeds, instead of undertaking the more challenging role of making 2Mbps+ broadband access a reality for all.

KC is however on track to deliver universal 2Mbps across its disproportionately rural network in 2012, well within the government’s original deadline. Already 95% of households on its network receive download speeds in excess of this, with the vast majority of these having access to much faster speeds. At the same time, KC’s rolling out fibre at speeds of 100Mbps in parts of its network with no public funds required.
Most of Thompson's "predictions" are already happening and some, such as no.2 and no.3, have effectively been occurring ever since the internet itself was first born (i.e. safe bets). Likewise the digital divide referenced in no.4 has arguably been growing since 'up to' 8Mbps ADSL MAX technology surfaced in 2006.

Prediction no.1 is thus the only one with any specific attachment to 2012 as it could easily reference the fight between BT's FTTC dominated rollout of superfast broadband and Fujtisu's plans to reach 5 million UK rural homes and businesses with 1Gbps capable FTTH. The latter of which might finally get underway (out of trial) this year.
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