{"id":12552,"date":"2016-11-21T01:37:52","date_gmt":"2016-11-21T00:37:52","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=12552"},"modified":"2016-11-21T08:19:58","modified_gmt":"2016-11-21T08:19:58","slug":"call-flow-boss-regulation-needed-protect-altnet-broadband-isps","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2016\/11\/call-flow-boss-regulation-needed-protect-altnet-broadband-isps.html","title":{"rendered":"Call Flow Boss – Regulation Needed to Protect AltNet Broadband ISPs"},"content":{"rendered":"

The Managing Director and Founder of broadband ISP Call Flow Solutions<\/a>, Andy Conibere, has told ISPreview.co.uk that the future could be “very bright<\/em>“, provided regulation is introduced to protect alternative networks from being “unfairly squeezed out by the dominant suppliers<\/em>” (BT<\/a>, Virgin Media<\/a> etc.).<\/p>\n

<\/p>\n

Call Flow probably isn’t as much of a household name as similar AltNet ISPs, such as Hyperoptic<\/a> or Gigaclear<\/a>, but they should be. The ISP started life in 2002 by serving customers in Kent<\/strong> and over the past fifteen years they’ve expanded to reach homes and businesses in parts of East Sussex<\/strong>, Hampshire<\/strong> and Berkshire<\/strong> (Southern England).<\/p>\n

On top of that they’ve also taken part in one of the Government’s rural broadband pilots for Hampshire (here<\/a>) and have won part of a Broadband Delivery UK<\/a> contract for Berkshire (here<\/a>). As an ISP they claim to build “cost effective<\/em>” superfast and ultrafast broadband networks in areas that the “Big 2” (BTOpenreach and Virgin Media<\/a>) deem “commercially unviable<\/em>” (i.e. the ‘final 5%’), yet it is important to note that this includes both rural and urban networks (their latest roll-out was in central Windsor).<\/p>\n

In keeping with that Call Flow operates a hybrid engineering model, which applies to both their core\/backhaul side as well as the distribution (“last mile<\/em>“) part of the network. In other words they deploy the best option for the job, which could involve Fixed Wireless Access<\/strong> (FWA), Fibre-to-the-Premise<\/strong> (FTTP<\/a>) and \/ or Sub Loop Unbundling (SLU) based Fibre-to-the-Cabinet<\/strong> (FTTC<\/a> \/ VDSL2<\/a>).<\/p>\n

Call Flow are also one the few ISPs to have made extensive use of the Physical Infrastructure Access<\/strong> (PIA) product (i.e. sharing BT<\/a>’s cable ducts and poles) and they’re already hopeful that Ofcom<\/a>’s new Strategic Review improvements (e.g. Cable Duct and Pole Access<\/a> and Dark Fibre<\/a>) will help to foster their plans for a “rapid network expansion<\/em>“.<\/p>\n

“[We are] planning to deploy proportionally more FTTP<\/a> in the future<\/em>,” said Andy Conibere<\/strong> in our exclusive interview. However Andy cautions that this will only happen if Ofcom<\/a>’s changes are “implemented quickly and efficiently … [but] I remain to be convinced that this will be achieved in the near term based on current experience<\/em>.”<\/p>\n

Andy, who use to work for BT<\/a>, has also called for new “regulation around dominant providers<\/em>” that could prevent big operators’ (e.g. Openreach<\/a>) from overbuilding ultrafast networks, such as those being built by smaller AltNets like Call Flow. But applying this to purely commercial deployments (e.g. Virgin), as well as those that use state aid, could present some competition issues.<\/p>\n

The Interview<\/strong><\/span><\/h3>\n

1. Can you tell us a bit about the history of Call Flow, such as how you came into existence and what you do differently from the rest of the market?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

I established Call Flow about fifteen years ago, after spending the first 18 years of my working life in BT. Starting from an apprentice, most of my time at BT was spent in senior management positions building and maintaining networks. Obviously this is where I gained most of my network knowledge, which is proving invaluable now \u2013 especially when it comes to Sub Loop Unbundling (SLU aka FTTC<\/a>), PIA (sharing BT\u2019s ducts and poles) and deploying new underground and overhead infrastructure.<\/p>\n

We have been deploying \u2018alt-net\u2019 broadband networks for over 13 years, initially starting as a WISP. Recognising the limits of FWA radio, we initially started deploying wired networks (copper and fibre) as expensive \u2018in-fill\u2019 to radio. However, as our expertise has grown, we have completely swapped this around and now view radio as an \u2018in-fill\u2019 to wired networks. This has been largely market lead, where there is a general preference for wired over wireless. This is mainly due to certainty of supply, connection speed and confidence in upgrade paths. As a rule of thumb we aim to keep radio to less than 20% of any network deployment, and being reserved for just the sparsest and most expensive to reach premises.<\/p>\n

There is still a lot of BTO network that we can unbundle cost effectively and deliver FTTC<\/a> to where BTO have not. As these opportunities are forecast to decrease, we are planning to deploy proportionally more FTTP<\/a> in the future.<\/p>\n

For any given area, be it urban or rural, we will usually deploy a mixture of FTTC, FTTP and radio (FWA) solutions. The mix varies depending on local topography, but the network leverages a common backhaul. This means we can achieve the highest possible coverage rate, with the majority being wired, at a cost that is much lower than most other single technology methods i.e. for that high coverage rate.<\/p>\n

We build our core connecting network in a given area using a combination of PIA, digging in our own fibre as new-build, deploying new telegraph poles and where appropriate radio links to multi gigabit capacity.<\/p>\n

Call Flow were involved in the initial trials and deployment of PIA since its first introduction around five years ago. Since then we have been actively taking advantage of this product, in isolation, until the last year or so. We view PIA as being an essential part of our toolkit to rapidly build cost effective networks in both rural and urban areas.<\/p><\/blockquote>\n

2. We note that Call Flow has deployed a number of its own hybrid-fibre and wireless broadband networks, not least with its win of a state aid supported contract in rural Berkshire and your Broadband Delivery UK<\/a> pilot scheme in rural Hampshire (England).<\/strong><\/p>\n

Can you tell us a bit about the technology that you\u2019ve deployed in Berkshire and Hampshire and what those projects have achieved?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

These two networks are quite different in terms of technology and build method \u2018mix\u2019, reflecting their different topographies and challenges.<\/p>\n

Berkshire was very urban, including central Windsor. This project was almost entirely FTTC, with Call Flow unbundling 11 BTO street cabinets, including one directly opposite Windsor Castle. We opted for the majority of our cabling to take advantage of PIA as putting up new poles and digging pavements around the Queen\u2019s 90th birthday celebrations would have met with a wall of opposition!<\/p>\n

We have also agreed with the appropriate industry bodies to undertake a trial of BTO deploying new cabinets so we can unbundle copper that is too far from an existing DSLAM\/cabinet for standard FTTC to work. BTO already deploy many such cabinets themselves, and term them CuRe cabinets \u2013 for copper rearrangement. We figure that if we can do FTTC to cabinets that BTO have decided not to, then there must be a case for us to also be able to request deployment of CuRe cabinets i.e. where it does not make sense for BTO, but does for us.<\/p>\n

In Berkshire we are trying to deploy one such trial cabinet, and hope to have this live by the end of the year. We believe that there is no reason why this trial (with another cabinet being deployed in Kent) could be unsuccessful, and as such will be keen to get this established as a new product that BTO offer. It could be thought of as similar to Fibre To The Remote Node (FTTrN), but being something that Communications Providers (alt-nets) other than BTO can deploy.<\/p>\n

Hampshire was a fantastic example of our hybrid model, being a full combination of FTTC (Sub Loop Unbundling), FTTP and radio (FWA). Our interconnecting network was made up of many kilometres of PIA (both ducts and poles), newly dug fibre across fields, new poles and finally several km of gigabit radio links. The initial project area was designated as being part of \u2018the final 5%\u2019 and we were able to demonstrate a c.96% coverage rate (which would be the equivalent of covering 99.8% of the UK) for costs way below those that were typically being quoted.<\/p><\/blockquote>\n

<\/p>\n

3. As an alternative network builder yourself you\u2019ll no doubt be aware that one of this year\u2019s biggest talking points was Ofcom<\/a>\u2019s Strategic Review, which at the time of writing has still chosen not to split BT from control of their network access division (Openreach<\/a>).<\/strong><\/p>\n

Instead Ofcom called for changes in the market (e.g. opening up BT\u2019s Dark Fibre network and improving access to their Cable Duct\/Pole infrastructure), which they hope will give rivals greater access to BT\u2019s national infrastructure and thus boost alternative networks.<\/strong><\/p>\n

What are your thoughts on the Strategic Review (e.g. do you expect to benefit from the new approach), particularly in regards to what it got right and what it could have done better?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

Structural separation will take years to achieve and the benefits to be realised. Competition at a network level is essential if the UK is to see significantly faster broadband speeds across a high proportion of the UK \u2013 as demonstrated in Virgin service areas. For us, the absolute key is to ensure that the schemes mentioned of Dark Fibre and Enhanced Duct\/Pole share (PIA) are implemented quickly and efficiently. We additionally believe that increased access to Openreach<\/a> copper sub loop (beyond street cabinets) is essential to increase speeds and coverage beyond what BT are likely to do.<\/p>\n

The biggest change, bar none, will be access to BT\u2019s duct and pole infrastructure on an equivalent basis to that Openreach enjoy. To achieve this needs really clear targets to be set to demonstrate such equivalence has been achieved in practice. Having been the UK\u2019s main player on PIA over the past five years, I remain to be convinced that this will be achieved in the near term based on current experience. Having worked for BT for 18 years, I fully understand the natural reservation to let anyone near their network and the temptation to drag their feet. As such, very clear and decisive leadership is needed to make this a success and achieve Ofcom\u2019s stated goals.<\/p><\/blockquote>\n

4. Given the progress referenced above, what are your expectations for future contract wins and general network expansion into new areas over the next few years? Especially given that the Broadband Delivery UK<\/a> programme and new EU State Aid agreement appear to be looking towards alternative networks.<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

Alternative network providers have had their work cut out to get established and become credible alternatives. For alt-nets who have been able to demonstrate their capability on significant projects, the near future looks very bright.<\/p>\n

In addition to EU State Aid changes, there are ongoing important changes to planning, regulation and availability of funding that mean we will be able to scale rapidly by leveraging the flexibility these changes offer. We are expecting to win further significant projects in the \u2018final 5%\u2019 as well as deploying some commercial networks. As such I anticipate, and am looking forward to, rapid network expansion.<\/p>\n

Obviously it will be interesting to see if BT choose to participate in the upcoming procurements and compete with the alt-nets.<\/p><\/blockquote>\n

5. Another one of this year\u2019s biggest events was the Brexit vote to leave the European Union. What are your thoughts on the outcome of the referendum and how leaving the EU in a couple of years\u2019 time might impact your service, if at all?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

It is too early to say how Brexit is likely to impact our service and the broader UK broadband situation. My current guess, no more, is that there is unlikely to be any significant change and that supply will continue to lag slightly behind demand in broadband markets, especially in the hard to reach areas.<\/p><\/blockquote>\n

6. Virgin Media<\/a> recently committed to ensure that 2 million UK premises are reached by their network using ultrafast Fibre-to-the-Premise (FTTP) technology and BT have similarly pledged to cover 2 million premises. On top of that both are also working to expand their 300Mbps capable DOCSIS<\/a> and G.fast<\/a> hybrid-fibre networks to many millions more.<\/strong><\/p>\n

Do you think that this is the right approach for the UK broadband market and, in respect to the growing roll-out of FTTP\/H\/B technologies, is it enough or does something else need to happen in the market to help improve connectivity further?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

It\u2019s interesting to see that Virgin are once again building significant networks and I am sure they will come up against some interesting challenges as all civil engineering projects encounter. Sticking to circa \u00a3750\/premise might prove a challenge in my opinion. It is totally understandable that both Virgin and BT will leverage their existing networks as much as they can to retain, or gain, market share. Anyone would do the same if it were their money. Ultimately the market has to be commercially lead like this.<\/p>\n

This approach will, yet again, widen the ultrafast gulf between the \u2018haves and have nots\u2019, dependent on where you live in relation to either Virgin or a BT cabinet. I don\u2019t see us doing a BDUK \u2018round 2\u2019 to lift the new low speed areas of say 10Mbps or 30Mbps to 300Mbps. However, now that viable alt-nets exist, I see them (us) building into this \u2018demand created\u2019 space \u2013 and that the technology used will increasingly be FTTP. If alt-nets do well with filling the current \u2018final 5%\u2019 with superfast broadband, they should be able to leverage their networks to fill in a lot of the newly created ultrafast gaps without recourse to public or community funding. This is PROVIDED they have a degree of certainty that they are not going to be overbuilt by a dominant player trying to squeeze them out as suggested has happened in some forums. As such, I favour some type of regulation around dominant providers stating their (lack of) expansion plans for the \u2018difficult areas\u2019 in the future.<\/p>\n

I believe that, largely, there is only space for two competing network operators in one geography \u2013 three at a real push. This is a challenge for some of the current larger
\ncontent\/mobile players in the market who do not have a significant network of their own, and I am curious how this will play out in the next few years.<\/p>\n

So in short, I think that the two main suppliers leveraging their networks for ultrafast speeds is a good thing provided alt-nets are able to fill in the \u2018ultrafast gaps\u2019 created without being unfairly squeezed out by the dominant suppliers.<\/p><\/blockquote>\n

7. The Government has proposed a new 10Mbps Universal Service Obligation, which is likely to focus most of its effort upon the final 3% of UK premises that won\u2019t be covered by a superfast broadband network via the Broadband Delivery UK programme.<\/strong><\/p>\n

At present it\u2019s not known what sort of technology and performance criteria (e.g. latency, upload speeds, affordability, usage allowances etc.) will be set for the USO. If you could design the USO, what criteria would you set to ensure that a good quality connection is constantly maintained to all of those covered?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

I think I will pass on this question. I have no opinion.<\/p><\/blockquote>\n

8. The UK Advertising Standards Authority<\/a> is taking another look at how broadband speeds are advertised by ISPs. The current guidelines require, among other things, that the headline speed being promoted must be achievable by at least 10% of an ISP\u2019s customers and that all speed claims are preceded with an \u201cup to\u201d qualifier.<\/strong><\/p>\n

However the Government\u2019s Digital Economy Minister, Ed Vaizey MP, and various other MPs have suggested that \u201cat least 75% of people should be getting the speeds that the broadband providers are advertising.\u201d A survey of our readers would seem to agree that a figure of 75% or 50% might be acceptable.<\/strong><\/p>\n

Speaking as an ISP, what are your thoughts on this proposal and how would you change the way that broadband speeds are advertised in order to make such promotions more accurate and reflective?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

I think the current advertising scheme is OK, BUT that prospective consumers should be able to easily access a postcode checker i.e. to give them an indication of what speeds they should expect for their premise before ordering – and possibly as part of the ordering process. Where the actual speeds are less than, say, 20% of the provided pre-order estimate, the customer should be able to switch without any quibble.<\/p><\/blockquote>\n

9. This year will most likely see the new Investigatory Powers Bill become an Act. The new law will force ISPs into logging a much bigger slice of your customers Internet activity, irrespective of whether or not you’re suspected of a crime. What are your views on this legislation?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

Any such legislation should be proportionate to the size of the ISP. Imagine the impact such legislation would have on a community ISP looking at kit cost of several or hundreds of thousands of pounds to comply with legislation. The cost to implement any regulated scheme should ultimately cost roughly the same per customer per ISP. This would obviously lead to tiered legislative requirements. Failure to do this will mean that smaller alt-nets\/ISP will either become unviable (and hence impact innovation and broadband coverage), or they will have to pass the costs directly onto their customers.<\/p><\/blockquote>\n

10. Finally, the Government have hinted that some of those in the final 3% of the UK (i.e. the premises unlikely to be reached through the Broadband Delivery UK programme) may have to put up with a Satellite<\/a> service or slow fixed line for the foreseeable future. What are your thoughts on Satellite<\/a> connectivity as an option?<\/strong><\/p>\n

ANSWER:<\/u><\/p>\n

The majority of feedback I have on satellite<\/a> broadband is negatively biased i.e. users would prefer a fast fixed or terrestrial based solution if they had the choice. I think the market, especially alt-nets, will narrow the gap to less than 3% without direct funding from communities. However, this may require some differential pricing that is competitive with satellite services \u2013 similar to a community having no gas paying a premium for oil.<\/p>\n

Again, flexible and efficient alt-nets operating in the final 5% through public subsidy will help narrow the gap in the medium term as commercial extensions to public schemes. The investment case for alt-nets is more compelling than for the dominant market players, who have less incentive to invest i.e. due to already having the customer revenue albeit at slow speeds.<\/p>\n

As the new speed gap will soon be based on ultrafast rather than superfast speeds, satellite will remain an option of last resort. With the speed gap increasing, this is also likely to encourage very remote communities to fund their own ultrafast \u2018future proofed\u2019 networks \u2013 narrowing the 3% gap even further.<\/p>\n

As such, I think the drivers in the market will narrow the gap to closer 1% in the medium term, with satellite remaining the choice of last resort.<\/p><\/blockquote>\n

We’d just like to say a big thankyou to Andy Conibere for both agreeing to take part in our interview and offering some very insightful answers.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Managing Director and Founder of broadband ISP Call Flow Solutions, Andy Conibere, has told ISPreview.co.uk that the future could be “very bright“, provided regulation is introduced to protect alternative networks from being “unfairly squeezed out by the dominant suppliers” (BT, Virgin Media etc.).<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[6],"tags":[471,55,56,38,476],"class_list":["post-12552","post","type-post","status-publish","format-standard","hentry","category-editorial_article","tag-bduk","tag-fttc","tag-fttp","tag-politics","tag-wifi"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nCall Flow Boss - Regulation Needed to Protect AltNet Broadband ISPs - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Managing Director and Founder of broadband ISP Call Flow Solutions, Andy Conibere, has told ISPreview.co.uk that the future could be "very bright",\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2016\/11\/call-flow-boss-regulation-needed-protect-altnet-broadband-isps.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2016\/11\/call-flow-boss-regulation-needed-protect-altnet-broadband-isps.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Call Flow Boss - 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