{"id":14737,"date":"2017-11-06T00:01:42","date_gmt":"2017-11-06T00:01:42","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=14737"},"modified":"2017-11-06T06:08:41","modified_gmt":"2017-11-06T06:08:41","slug":"ceo-isp-luminet-says-uk-focus-universal-gigabit-broadband","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2017\/11\/ceo-isp-luminet-says-uk-focus-universal-gigabit-broadband.html","title":{"rendered":"CEO of ISP Luminet Says UK Should Focus on Universal Gigabit Broadband"},"content":{"rendered":"

The CEO of Luminet<\/a>, Sasha Williamson, has told ISPreview.co.uk as part of our new interview that the United Kingdom should focus on deploying Gigabit capable broadband networks “nationwide<\/em>” and that the plan for a 10Mbps minimum download speed (USO) is “laughable in this digital age<\/em>.”<\/p>\n

Sasha founded the business in 2004, although it first started life under a very different name (Urban Wimax<\/strong>) and initially only focused on supplying independent fixed wireless broadband services to UK businesses. Since then they’ve expanded their products (e.g. fibre optic technologies), acquired the the Vital Group for \u00a32.15m (this ultimately lead to the Luminet re-brand in 2015) and even won the ISPA<\/a>’s 2017 Best Wireless award (here<\/a>).<\/p>\n

Today Luminet describes itself as being an “intelligent managed services provider<\/em>“, which delivers Connectivity, Communications, Computing and Security services to businesses. Sasha himself is thus no stranger to the industry and he’s also worked with Primus, Worldcom and GTT, as well as in bulk purchasing for major European telecoms users, among other things.<\/p>\n

Suffice to say that we were keen to know Sasha’s views on the current market and he certainly doesn’t beat around the bush. Sasha is keen to see Ofcom<\/a> “rip up the rulebook and take a completely fresh view<\/em>” on market regulation, which he says needs to reduce bureaucracy and support smaller telcos against a “monopoly incumbent<\/em>” (BT<\/a>).<\/p>\n

In an ideal world Luminet’s founder would like to see the Government fostering a “nationwide rollout<\/em>” of Gigabit (1Gbps+) capable broadband networks, which could be supported by de-regulation and easier access to capital so as to “stimulate altnet competition.<\/em>” The government has already announced an investment of several hundred million pounds for such networks (here<\/a>) and Sasha views this is “a step in the right direction<\/em>.”<\/p>\n

However at the same time he also warns that the Government’s plan to introduce a “legally binding<\/em>” 10Mbps Universal Service Obligation<\/strong> for broadband was “laughable in this digital age<\/em>” and he criticised connectivity in London for being “behind other metropolis\u2019s in terms of its connectivity<\/em>” (note: around 96%+ of London can access 24Mbps+ “superfast broadband,<\/em>” but a lot of EU cities are re-focusing on FTTP<\/a>\/H).<\/p>\n

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

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

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

Luminet was founded by a management team and myself, which had extensive experience within the telecommunications and IT industries \u2013 we had held key executive and technical roles in companies like Telewest, ETT, CitiGroup, Orange and BT<\/a>.<\/p>\n

The growth financing we received from Santander in 2015 enabled us to accelerate our growth and develop our new product portfolio. As well as our own fibre network and completely independent Fixed Wireless Access infrastructure, we have a host of value-added OTT services. Because we have multi-millions of capital into infrastructure with the world\u2019s top technology companies, we can leverage the capability to our customers\u2019 and partners\u2019 advantage.<\/p>\n

We have experienced phenomenal growth in recent years \u2013 our average revenue growth rate is 24% per annum and EBITDA has grown 16% YoY (Year on Year) to circa \u00a31.1 million.<\/p><\/blockquote>\n

2. Luminet has made a name for itself in the business connectivity market, not least by building some increasingly sophisticated fibre optic and fixed wireless broadband networks.\u2028\u2028 Will any of the changes proposed through Ofcom<\/a>’s recent Strategic Review, which forced Openreach<\/a> to become a “legally separate” company from BT<\/a> and opened up more of their network to rivals, be of benefit to your ISP or do you think the regulator could have gone further?<\/strong><\/p>\n

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

It\u2019s always good to see a market incumbent that has become a monopoly to separate \u2013 but how fast this will happen is uncertain. The regulator should have addressed the problem sooner. Opening the network will benefit consumers and ISPs in the long term. In the short term I cannot see any immediate benefits, but it should open up strategic opportunities in the future.<\/p><\/blockquote>\n

3. Last year it was announced that Luminet and CCS had partnered and planned to roll-out a new small cell backhaul and enterprise network across London (here<\/a>). Can you tell us more about this network (how fast is it etc.) and how much progress you’ve made since the announcement?<\/strong><\/p>\n

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

We collaborated to develop a small cell backhaul and enterprise network across London, to enable enterprises to receive up to 1Gbps Internet access and provide mobile operators with readily available wireless backhaul for their small cell deployments.<\/p>\n

We designed it to be the first self-organising networks in a Tier One global city, and by adopting a neutral host strategy we would give mobile operators a way to scale with the on-going increase in mobile data demand in urban areas.<\/p><\/blockquote>\n

4. What are the biggest challenges that you\u2019ve faced with building the new small cell network in a dense urban environment like London (i.e. in terms of engineering, network design or regulation etc.) and is it something that Luminet intend to build in other cities around the UK?<\/strong><\/p>\n

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

We have subsequently put this on hold as we review strategic options and build our indirect channel on our existing core and wireless networks, which have got 80% capacity.<\/p><\/blockquote>\n

5. At the time of writing Openreach<\/a> (BT) currently aims to roll-out their new 330Mbps capable ultrafast G.fast<\/a> broadband service to 10 million UK homes and businesses by 2020, which is a hybrid fibre and copper technology. What are your thoughts on this approach and do you see G.fast<\/a> as being a threat to your own SME focused business services?<\/strong><\/p>\n

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

Our focus is the Capital as that is where we have our 400Sqkm network. In London there are many connectivity issues that won\u2019t be solved via G.Fast<\/a> technology. This is illustrated by the Connect Westminster Scheme, the newly launched Connected Voucher Scheme that helps cover up to \u00a32000 towards a SMEs one-off connection charge within Westminster and the West End Partnership area.<\/p>\n

We have an unparalleled insight into the London SME market and flexible product set to meet and exceed the connectivity needs of local businesses. For example, our Fibre-Air service is a 10Mbps to 1Gbps Clear Channel Wireless service delivered over the air and can be installed in 10 working days. This service is ideal for businesses to replace leased line wired services or those who cannot be served with a leased line wired service, require a quick installation or truly diverse connection.<\/p><\/blockquote>\n

Continued on the next page..<\/p>\n

<\/p>\n

6. Elsewhere Virgin Media<\/a> has committed to ensure that over 2 million UK premises are reached by their network using ultrafast Fibre-to-the-Premise (FTTP<\/a>) technology and Openreach<\/a> (BT) have similarly pledged to cover 2 million premises by 2020 (they’re also consulting on the possibility of doing 10 million premises by around 2025). \u2028<\/strong><\/p>\n

We\u2019re seeing a lot of similar deployments by smaller operators, such as Gigaclear<\/a>, Hyperoptic<\/a>, IFNL, Cityfibre<\/a> and of course Luminet has some of its own fibre optic infrastructure. Do you think that rolling out FTTP<\/a>\/H\/B is the best way forward for the UK broadband market and why?<\/strong><\/p>\n

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

FTTP still requires digging up the last mile, as well as combating the sticky issue of navigating wayleaves. I agree that the focus should be on gigabit capable broadband technologies, which we provide \u2013 as does FTTP \u2013 but we have a long way to go as London is way behind other metropolis\u2019s in terms of its connectivity.<\/p>\n

Just this week Matt Hancock agreed that connectivity issues need to be addressed to allow London SMEs to flourish: “Digital connectivity is front and centre for London\u2019s economic growth and a key priority for the government. Small businesses are key drivers of the economy, job creation and innovation. London can\u2019t do without them and they must get the full support that they deserve<\/em>.”<\/p><\/blockquote>\n

7. The Government has recently committed several hundred million pounds of additional public funding to help stimulate alternative network providers to expand their “full fibre<\/em>” (FTTP\/H) broadband networks. Do you think this is good enough or should the Government be doing a lot more and, if so, what would you do or change?<\/strong><\/p>\n

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

Supporting and enabling full fibre will require billions \u2013 the existing fund is just a drop in the ocean, but I suppose it\u2019s a small step in the right direction. What altnets really need is the right environment and better last mile access technologies to compete.<\/p><\/blockquote>\n

8. Some industry analysts and mobile operators have suggested that future 5G<\/a> Mobile technology could end up replacing fixed lines as our primary source of broadband connectivity to the internet.<\/strong><\/p>\n

How feasible do you think such claims are, particularly given the traffic management restrictions, limited spectrum, data caps and rural reception problems that plague today’s 4G<\/a> mobile services?<\/strong><\/p>\n

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

In an ideal world 5G<\/a> for consumers could be a primary source of connectivity, but I don\u2019t think it will be the case for business. This will always need to be a mix of fixed and wireless technologies.<\/p>\n

In practice it will be hard to implement because the user cases, economic dynamics and payback has not been worked out. Before you even look at capacity hotspots\/ notspots you have to go back to basics and get agreement on industry standardisation, regulation, network splicing, times and sites.<\/p>\n

For example, the City of London says it will need 50,000 sites for 5G<\/a> \u2013 this will need alignment across property, legal and technology sectors. The use cases and economics for operators is far from being proven and they need to improve and upgrade 4G<\/a> before this path to 5G can evolve and become deliverable with economic certainty.<\/p><\/blockquote>\n

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

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

The ongoing certainty on what Brexit actually means is very unhelpful for industry \u2013 it softens decision-making and deters businesses from coming to London. The drop in the pound also affects purchasing equipment.<\/p><\/blockquote>\n

10. If you had the power to change existing laws and Ofcom<\/a> regulation, what key changes would you make in order to help boost your own business and \/or expand the coverage of future broadband services in general?<\/strong><\/p>\n

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

Rip up the rulebook and take a completely fresh view, with an onus on reducing bureaucracy and supporting smaller telcos. The telecoms market was deregulated 15 years, but 90% of UK telecoms market is still owned by monopoly incumbent. How can this be a competitive environment?<\/p><\/blockquote>\n

11. Finally, the Government has proposed a new 10Mbps Universal Service Obligation, which is likely to focus most of its efforts upon the final 2-3% of UK premises that won\u2019t be covered by a superfast broadband network via the Broadband Delivery UK<\/a> programme (here<\/a>). <\/strong><\/p>\n

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

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

A 10Mbps USO is laughable in this digital age. Gigabit needs to be the focus \u2013 and the strategy must be aligned to a nationwide rollout. We need to look beyond a lobbying giant that wants to sweat its copper assets. De-regulation is needed, as we have seen in the past, a \u2018voluntary\u2019 commitment works for the shareholders, but not the national interest for a competitive market. However access to capital is also a barrier to stimulate altnet competition.<\/p><\/blockquote>\n

ISPreview.co.uk would just like to thanks to Sasha for taking time out of his busy schedule to answer some of our questions.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CEO of Luminet, Sasha Williamson, has told ISPreview.co.uk as part of our new interview that the United Kingdom should focus on deploying Gigabit capable broadband networks “nationwide” and that the plan for a 10Mbps minimum download speed (USO) is “laughable in this digital age.”<\/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":[472,52,65,56,38,537,476],"class_list":["post-14737","post","type-post","status-publish","format-standard","hentry","category-editorial_article","tag-business","tag-fibre-optic","tag-ftth","tag-fttp","tag-politics","tag-uso","tag-wifi"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nCEO of ISP Luminet Says UK Should Focus on Universal Gigabit Broadband - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The CEO of Luminet, Sasha Williamson, has told ISPreview.co.uk as part of our new interview that the United Kingdom should focus on deploying Gigabit\" \/>\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\/2017\/11\/ceo-isp-luminet-says-uk-focus-universal-gigabit-broadband.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2017\/11\/ceo-isp-luminet-says-uk-focus-universal-gigabit-broadband.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CEO of ISP Luminet Says UK Should Focus on Universal Gigabit Broadband - 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