Alternative UK Fibre ISPs Support Common Wholesale Platform Idea

Research from the Independent Networks Co-operative Association (INCA) has claimed that 88.7% of the UK’s challenger alternative broadband network (AltNet) providers would support the creation of a common platform, through which they could provide wholesale services to third-party providers.

Earlier this year INCA and Point Topic estimated that 15.73 million premises could be reached via alternative “full fibre” (FTTP) networks by the end of 2025 (here), although this was based more on future roll-out aspirations and so should be taken with a pinch of salt (interestingly today’s report uses a lower figure of 11 million). Likewise, we don’t yet know how much overbuild between networks will impact the overall level of UK coverage.

One problem with having so many AltNet ISPs (Summary of Full Fibre Build Progress) is that it makes the market more confusing for consumers, which is something that INCA’s new suggestion might improve. The creation of a Common Wholesale Platform (CWP) would, they say, enable altnets to attract ISPs to their networks by “aggregating the large volume of customers they could potentially reach.”

INCA is thus now supporting the development of a CWP, which would enable groups of independent wholesale network providers to “combine together and offer a real competitive alternative to the limited number of large players which currently dominate the market.” The aim is to make it as simple as possible for ISPs to deliver their services over challenger networks, thus helping to foster credible competition and consumer choice.

Malcolm Corbett, INCA CEO, said:

“For some time, it has been presumed that challenger independent providers do not have the scale to attract major brands like TalkTalk and Sky Broadband. However, that is changing rapidly and our research shows that the operators are keen to work together on a wholesale platform that can bridge the gap in the market.”

INCA’s survey also revealed that only 43% of the independent broadband sector is aware of the date when changes come into force governing how consumers switch between broadband providers. Ofcom are expected to lay out the timetable in September 2020 for a new Gaining Provider Led (GPL) switching process, which will simplify the way that consumers can switch services and include alternative networks (although it’ll be awhile before this is actually implemented).

The survey itself was carried out this summer 2020 as a response to a call from Ofcom to have greater visibility of the industry’s view on establishing a CWP, although what form that will take remains to be seen. Bringing together so many rivals in order to establish a common platform tends to be like trying to herd cats due to all of the different models, network types and investment strategies involved, but being able to confirm that an interest does exist is an important first step.

We should point out that different forms of aggregated wholesale platform have been tried before, such as via FluidOne’s Service Exchange Platform (SEP), although this didn’t really touch the consumer side of that equation (at least not in quite the same way that INCA seem to be envisaging). As ever with these things, everything will depend upon the detail. In theory you could even bring fixed wireless networks and other platforms into the fold.