
Broadband ISP Ogi has today announced that their 10Gbps capable Fibre-to-the-Premises (FTTP) network is to be extended across more of Bridgend county, which will form part of their £200m Infracapital-backed project to cover 150,000 premises in rural parts of South Wales by 2025.
The provider, which by March 2023 had covered around 47,500 premises (up from 42,000 in January 2023) in Wales and recently expanded its future rollout plan (here), has already started work in the Bridgend towns of Maesteg and Porthcawl. But the good news today is that work has also started to extend their full fibre lines into Pencoed.
As usual, there is a bit of a catch to this. The town of Pencoed has already been heavily covered by Openreach’s rival FTTP network, although that will still be Ogi’s only gigabit-capable rival in the local market and, with a population of over 9,000, it might just be big enough to sustain both providers. But the lack of a first-mover advantage will probably make for an uphill battle.
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Ogi suggests that more than 10,000 homes and businesses in the area could benefit when the new network is switched on later this year, which suggests that they’ll be extending into the more rural areas that surround Pencoed too (the town itself is much smaller than that).
Ogi’s Chief Executive Officer, Ben Allwright, said:
“The big data age has arrived in Wales, and fast, dependable connectivity has never been more important. As we look to work in more flexible and hybrid ways, reliable connectivity is vital, and this digital upgrade in Pencoed will lay new foundations for Wales’s tech sector to thrive today, and long into the future.
Our homes and businesses continue to get smarter, and with the cost-of-living crisis affecting everything we do, we’re seeing more and more people looking to improve the quality of their connectivity for work, life and entertainment.”
Customers of the service can expect to pay from £30 per month for an unlimited service with downloads of 150Mbps (15Mbps upload) and an included wireless router on a 24-month term, which rises to £60 for their top 900Mbps (90Mbps upload) plan. New customers will also get six months FREE broadband and evening and weekend voice calling.
Ogi’s Current Rollout Plan
➤ Bridgend: Caerau, Cwmfelin, Garth, Llangynwyd, Maesteg^, Nantyffyllon, Pencoed^, Porthcawl^
➤ Caerphilly: Blackwood^, Cefn Fforest, Cefn Hengoed, Fleur-de-lis, Hengoed^, Pengam, Ystrad Mynach, Maesycymmer, Pontllanfraith, Tir-y-Berth, Woodfieldside.
➤ Monmouthshire: Abergavenny^, Caerwent, Caldicot^, Chepstow, Crick, Monmouth^, Portskewett, Rogiet, Sudbrook, Undy.
➤ Newport: Langstone, Llanvaches^, Underwood^.
➤ Pembrokeshire: Haverfordwest^, Johnston, Milford Haven^, Neyland^, Pembroke^, Pembroke Dock^.
➤ Rhondda Cynon Taf: Cymmer, Dinas, Llwyncelyn, Mount Pleasant, Porth^, Tonyrefail^*, Tonypandy^*, Trebanog, Trehafod, Ynyshir.
➤ Torfaen: Griffithstown, New Inn, Pantymoile, Penygarn, Pontypool^, Sebastopol, Trosnant, Wainfelin.
➤ Vale of Glamorgan: Dinas Powys^, Llantwit Major^, Rhoose^, St Athan.^Local Network Exchange
From the article it seems that Ogi are overbuilding Openreach FTTP. Then they’re giving away the service for six months, after incurring (guessed) costs of say £240 per property passed, and then say £25O per property connected (droplink, installation and router). At a very generously guessed 25% conversion, that’s about £1,200 invested capital per paying customer.
Heavily discounted offers certainly are effective to gain customers, unfortunately the average quality of customers from heavy discounting is poor – you attract a disproportionate volume of serial switchers who are never profitable, and drive churn later on, and that then needs high marketing spend to recover volume…it’s like running up a fast moving escalator (ask Virgin Media, who have never paid a penny in dividends from the operational side of their fixed line business in twenty odd years).
And starting from £30 a month, that’s not going to go far after taking off the operating costs Ogi will incur as a sub-scale ISP (I’d guess around £20 a month and upwards).
Alternative views on my guesstimates are welcome, but to be viable for the longer term you’ll need ROCE >10%, and even tweaking my figures I can’t see that occurring.
Amazing how poorly guarded these sites are in some of the stock photos
Patiently waiting for their network to go live in Porth.
Same here, I see what looks like some work on Glynfach road.
Getting closer now :