Home
 » Editorial Article » 
Sponsored Links

ISP AB Internet Warns Against UK Wireless Tax and a Pure Fibre Optic Focus

Monday, Oct 7th, 2013 (6:40 am) - Score 3,316

Q2. Securing public funding for wireless based networks often appears to be an extremely challenging proposition, especially given how the Broadband Delivery UK and related EU frameworks tend to prefer fixed line solutions.

How were ABInternet able to do it and do you have any tips for other wireless providers that might seek a similar approach?

ANSWER:

It is true that even now, the powers that be do seem to focus very heavily on deployment on fixed line bearers, which can be frustrating for a company whose 50MB superfast wireless services are already being used by customers.

Indeed, it was only in the very early part of this year that the EU adjusted its view on ‘Wireless’ as a superfast bearer. Up until January, wireless was not considered to be capable of delivering a superfast service. It is now considered (and legislated as such) to be an effective mechanism for the delivery of an interim superfast solution.

This is not to say that all wireless based services are a cost effective or even appropriate method of delivering superfast services to remote areas. Cellular based solutions, WiFi (in any other capacity than a home router) and satellite technologies do sometimes get thrown into the same wireless ‘pot.’ So we need to be clear that Wireless to us means Fixed Wireless Access both in Point To Point or Point to Multipoint configuration.

In securing public funding for the Lincolnshire Project, we were fortunate to have a number of critical factors coming together at once:

1. The change of the legislative environment to support wireless at the European level.
2. In Lincolnshire County Council, having a forward thinking group of people who understood the benefit of and championed a creative solution
3. AB Internet having a solid provenance of already delivering, albeit elsewhere, exactly what was being asked for. This gave our solution credibility.

Wireless operators can become very blinkered in their thinking. I can say that with complete comfort, because sometimes we are all guilty as charged. But, for success, remember that the best solution is often a hybrid of bearers; focus on where you deliver value (in commercial as well as geographic terms) and let the network be driven my the market rather than by the technology.

Q3. The Valuation Office Agency (VOA) has begun a review of how its business rates (tax) can be applied to fixed wireless networks, which could result in a clarification of their existing guidelines that might potentially force some wireless ISPs to pay more than they do today. What are your thoughts on the current situation and this latest development?

ANSWER:

It’s all a question of scale. It’s probably fair to say that the VOA is only looking for some kind of ‘equitable balance’ here to mirror business rates that are already levied on large commercial masts. It’s also fair to say that in times of austerity, its easy to understand (and support) the right to seek additional revenues.

However, how could you elegantly and comprehensively define such a policy and make it equitable, balanced or even work?

– Does the VOA charge at the same rate as the large operators pay for aperture rental on commercial sites? This might be tenable for companies that can expect to derive significant revenues from such a mast, but in the case of many small WISP’s, they will simply fold, as the sustainable business model would be mortally wounded.

– Does the VOA charge on a ‘Pounds-per-PoP’ basis? In a wide area deployment, often, the two or three most remote customers are subsidised by the connections on the more populous PoP’s. Charging like this would penalise the lightly loaded PoP’s to the point where the WISP could say, “…you know what, let’s forget about the most remote people.” Widening the digital divide and undermining the fundamental power of wireless – remote reach.

– How is it policed? Where does it stop? (does every lamp-post with a commercial WiFi access point on it attract a charge?)

The VOA would be wise to look very carefully at the ethos behind licensing of the very technology that WISP’s love to use, namely, equipment that operates in the 5 GHz spectrum. To stimulate business growth in the UK, the licensing authorities pursued a ‘light licence’ policy of a token annual sum, facilitating the growth of a whole new sector and providing the means for cost effective connectivity in the most remote areas.

It is widely accepted now, even in the halls and corridors of the EU that wireless represents an extremely cost effective way of bringing superfast broadband services to the digitally disadvantaged in the most remote parts of the UK. A heavy handed approach or clumsy application of some new edict by the VOA will only result in one thing; the end user losing out and a whole segment of society being digitally ‘marooned’ for many years to come.

Q4. The government’s Broadband Delivery UK office recently confirmed that its original target, which aimed to make fixed line superfast broadband (25-30Mbps+) services available to 90% of the country by the end of 2015, would be missed; albeit only by a couple of percentage points.

General administrative slowness, legal challenges from BT/Virgin Media and complex competition delays with EU approval are often listed as being among the key reasons for this hold-up. What are your thoughts on these delays and how significant are they for the overall project?

ANSWER:

In our experience, it’s fair to say that all of the above have played a part in the delays. However, it’s also true that BDUK face a very difficult job. Whichever way they turn, they have to consider potential legal challenges from all corners, whether from the incumbent, the EU, the local council or the Alternative Service provider. In this kind of environment; it’s easy to see why progress has been ‘considered’ to say the least.

But its also fair that in having gained all this experience, BDUK should be able to move forward with speed in the next phase of the project.

Q5. The government has also revised its target and now aims to reach 95% of the country with a fixed line superfast broadband service by 2017 (99% by 2018 when mobile broadband and other wireless services are considered). Meanwhile Europe’s Digital Agenda still wants 100% to have access to superfast connectivity by 2020. Do you think the UK’s new target will be achievable or is it just a pre-election gimmick?

ANSWER:

It’s a bit unfair to say that it’s a pre-election gimmick; setting goals is an essential way of driving an initiative and measuring its success. In this sense the ‘somewhere between 95% and 99%’ approach that the UK government is taking is actually quite pragmatic. This, coupled with the increasing weight that wireless carries within government, actually makes for a credible figure, so long as the government chooses to seize the opportunity of engaging with Alternative Service Providers.

Delivering to that ‘last 1%’ via a FTTC solution is potentially going to cost as much as the whole of the rest of the project put together, and you could argue with some justification, that the virtually non-existent demand couldn’t justify such expenditure. So in some senses, the UK’s position is probably more realistic than the EU and its certainly a strong argument for the adoption of a Wireless solution for the most challenging areas.

Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and .
Search ISP News
Search ISP Listings
Search ISP Reviews

Comments are closed

Cheap BIG ISPs for 100Mbps+
Community Fibre UK ISP Logo
150Mbps
Gift: None
Virgin Media UK ISP Logo
Virgin Media £24.00
132Mbps
Gift: None
Shell Energy UK ISP Logo
Shell Energy £26.99
109Mbps
Gift: None
Plusnet UK ISP Logo
Plusnet £27.99
145Mbps
Gift: None
Zen Internet UK ISP Logo
Zen Internet £28.00 - 35.00
100Mbps
Gift: None
Large Availability | View All
Cheapest ISPs for 100Mbps+
Gigaclear UK ISP Logo
Gigaclear £15.00
150Mbps
Gift: None
YouFibre UK ISP Logo
YouFibre £19.99
150Mbps
Gift: None
Community Fibre UK ISP Logo
150Mbps
Gift: None
BeFibre UK ISP Logo
BeFibre £21.00
150Mbps
Gift: £25 Love2Shop Card
Hey! Broadband UK ISP Logo
150Mbps
Gift: None
Large Availability | View All
The Top 15 Category Tags
  1. FTTP (5473)
  2. BT (3505)
  3. Politics (2525)
  4. Openreach (2291)
  5. Business (2251)
  6. Building Digital UK (2234)
  7. FTTC (2041)
  8. Mobile Broadband (1961)
  9. Statistics (1780)
  10. 4G (1654)
  11. Virgin Media (1608)
  12. Ofcom Regulation (1451)
  13. Fibre Optic (1392)
  14. Wireless Internet (1386)
  15. FTTH (1381)

Helpful ISP Guides and Tips

Promotion
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact
Mastodon