Q6 - In your view, is the new coalition governments policy towards "super-fast" Next Generation Access (NGA) broadband deployment an improvement over the previous Labour government's plan of action (please explain your answer)?
Answer:
My sense is that our new coalition government are still developing their plans and whilst the early signs are that they have a greater ambition, the detail remains to be seen.
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Big Versus Small
Q7 - How is it that a major operator like BT can quote huge sums of money to bring basic broadband into small rural 'not spot' villages and yet a tiny niche ISP can often deliver a "super-fast" solution to the same place for a similar amount or significantly less. Practically speaking, what makes the difference in cost, why are smaller operators able to do such costly things for less than the big boys?
Answer:
There are a number of reasons for the seeming dichotomy in costs.
First and foremost BT is required, by its statutory obligations, to deliver a carrier class solution that will support the full range of regulatory services. This is not the case for niche ISPs, and the reality is that for customers suffering from dial-up speeds they can probably live with a service that goes up and down, because when it is up it is better than the existing service, and the BT service is still there as a back-up.
BT would also argue the cost is invariably in the dig whereas niche ISPs will use alternative delivery options.
Q8 - Given that smaller operators can often appear to deploy "super-fast" broadband for less than their larger rivals, do you feel that the UK government risks wasting public money by potentially ploughing it into subsidising larger operators who could end up costing more and delivering less to broadband 'slow spots' and rural areas?
Answer:
The answer is dependent upon the quality and durability of service that is required. What I would say is that all operators should have to meet the same standards. I would also contend that the government would do well to require operators such as BT, Sky and Talk Talk to invest a percentage of their spend in urban services, say 50%, into rural broadband which would rapidly resolve the rural challenge.
Q9 - Is there a risk that some communities, which could benefit from a niche NGA broadband solution supplied by a smaller operator, could still lose out due to some of those same small ISP platforms being closed to rival providers and thus restricting competition into a small local monopoly?
Answer:
I think it is a given that where rural communities have a niche service provided then there will be the risk of a natural dominance occurring.
