{"id":16089,"date":"2018-05-26T00:01:19","date_gmt":"2018-05-25T23:01:19","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=16089"},"modified":"2024-02-23T15:21:07","modified_gmt":"2024-02-23T15:21:07","slug":"truespeed-ceo-we-hope-to-reach-200000-uk-premises-with-fttp","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2018\/05\/truespeed-ceo-we-hope-to-reach-200000-uk-premises-with-fttp.html","title":{"rendered":"Truespeed CEO – We Hope to Reach 200,000 UK Premises with FTTP"},"content":{"rendered":"

The co-founder and CEO of UK ISP Truespeed Communications<\/a>, Evan Wienburg, has told ISPreview.co.uk – as part of our new interview – that their “full fibre<\/em>” (FTTP<\/a>) broadband network in South West England has already covered 3,000 rural premises and they aspire to hit 200,000 by 2025.<\/p>\n

According to Evan, the motivation for setting up Truespeed<\/a> in 2015 came from seeing the opportunity to build a “lasting and vitally important broadband infrastructure in rural parts of South West England<\/em>,” which he says is an area that has become “infamous for being poorly served<\/em>.”<\/p>\n

Indeed the regional state aid supported Connecting Devon and Somerset<\/a> programme has certainly had plenty of challenges (example<\/a>). One of the reasons for this is due to the rural nature of the region, where building any kind of Gigabit capable Fibre-to-the-Premises<\/strong> (FTTP<\/a>) network tends to be very slow and expensive.<\/p>\n

Nevertheless Truespeed<\/a>’s demand-driven model (i.e. 30% of a community must commit before they build) appears to have taken a leaf out of Gigaclear<\/a>’s book. As a result they were initially able to create enough commercial interest to fund deployments to several villages in the Chew Valley<\/strong> (e.g. Priston, Compton Dando, Stanton Drew and Stanton Wick).<\/p>\n

The effort clearly worked because last year the ISP secured a huge investment of \u00a375 million<\/strong> from Aviva Investors to help expand their network (here<\/a>), which is a considerable sum for such a young provider and helps to demonstrate how much appetite there is for putting money into optical fibre.<\/p>\n

As it stands Truespeed<\/a>’s network has already reached 3,000 premises and they expect to cover over 12,000 by the end of this summer 2018. “Money can no longer be cited when building business cases against the delivery of ultrafast networks. The demand is there and the appetite for investment is too. The best thing the government can do is to encourage private investors to build these networks, and ensure that regulatory practices are in place to allow investment to flourish<\/em>,” said Evan.<\/p>\n

Going forward Evan said their goal is to have 75,000 properties connected by 2021, “so we\u2019re looking to have around 1,800 properties passed every month for the next 5 or 6 years. Come 2025, we\u2019d like to see 200,000 properties connected<\/em>.” Naturally we were keen to know more and Evan has kindly agreed to answer some of our questions.<\/p>\n

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

1. Truespeed is one of the most recent entrants into the country\u2019s growing market for full fibre (FTTP<\/a>\/H) alternative network providers. On top of that you\u2019re also one of the few commercial operators that seem to be making a business model out of connecting up rural villages (mostly in South West England), which are usually some of the most expensive areas to tackle.<\/strong><\/p>\n

All of this work was underlined by last year\u2019s announcement of a significant \u00a375m investment into the ISP. How have you managed to attract so much investment so quickly toward such a challenging delivery area, what\u2019s the secret?<\/strong><\/p>\n

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

There\u2019s huge demand from businesses and consumers across the UK for essential future-proofed internet infrastructure and services, which has boosted investors\u2019 confidence. Key to attracting the investment was to identify ways of making the delivery areas less challenging, and finding a business model that supports infrastructure delivery in a way that doesn\u2019t make the resultant service cost-prohibitive for customers.<\/p>\n

We\u2019ve solved this by changing traditional building methodologies and management to be able to consistently deliver to cost and on spec.<\/p>\n

Investors can see a business model that results in a service that is faster, more effective and lower cost, without impacting on profitability. The only missing ingredient is guaranteeing that the demand will be there from day one, and we\u2019ve solved this \u2013 reassuring our investors in the process \u2013 by creating a demand-driven model. If 30% of a community wants our service and signs up, then we\u2019ll move in and deliver the infrastructure.<\/p><\/blockquote>\n

2. Last year we initially heard it stated that Truespeed were aiming to deliver 75,000 premises passed with FTTP and later in that same year I saw one of your INCA slides put the aspiration at a very specific 103,000 premises. Can you tell us roughly how many premises you reach today and what do you aspire to reach in the future (ideally mentioning over what sort of timescale)?<\/strong><\/p>\n

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

Our stated aim is to pass 75,000 households and businesses within South West England by 2021. There are more properties that we\u2019ve identified as viable targets and so if there\u2019s an opportunity to go faster, than we\u2019ll look to take it. But if we deliver 75,000 properties then both ourselves and our investors will be very happy, not to mention the hundreds of thousands of people whose lives will be transformed by access to full-fibre broadband.<\/p>\n

Currently we have passed 3k properties and by the end of the summer we will have passed over 12k properties which are in build now. We\u2019re working on an additional 120 communities and will continue to add then to the delivery. Government initiatives like the Gigabit Voucher Scheme can make a massive difference to accelerating the process too, which is why we\u2019re so happy to be one of the core delivery partners to the scheme, and the only provider that has been able to deliver the scheme for both businesses and residential properties.<\/p><\/blockquote>\n

3. Your fibre optic network appears to be building into some rural areas that can already access a hybrid fibre FTTC<\/a> (VDSL2<\/a>) broadband service, such as via Openreach<\/a>\u2019s platform. Does doing this make it harder to attract customers in those areas to your network?<\/strong><\/p>\n

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

No, for two reasons. Firstly, in these rural areas we tend to come in at a fraction of the cost of Openreach<\/a>, and with a commitment to roll out the service faster. Secondly, we deliver a far superior full fibre infrastructure that can future-proof local economies for many years to come.<\/p>\n

Once customers understand that not all fibre connectivity is created equal, it\u2019s an easy sell. There is, however, a difficulty in educating customers about the differences, given that so many fibre broadband providers are able to get away with making dubious or inaccurate advertising claims.<\/p><\/blockquote>\n

4. Another ISP that follows a similar model to your one, Gigaclear<\/a>, has recently secured a number of large state aid supported contracts to help expand FTTP into rural communities around various counties in England. Do Truespeed have any serious plans to bid on similar contracts in the future and if not, why not?<\/strong><\/p>\n

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

We\u2019re proud of the fact that we\u2019ve been able to achieve such strong progress in delivering FTTP to the South West without Government subsidies, because it demonstrates the viability of our business model. However that\u2019s not to say that we wouldn\u2019t bid for contracts in the future that aligned with our stated rollout aims.<\/p>\n

What\u2019s important is that BDUK and local bodies ensure they are clear on the differences in product quality when setting up these tenders, so that they\u2019re evaluating bids based on the ability to serve long-term community needs.<\/p><\/blockquote>\n

5. Earlier we touched briefly on the challenging costs of deploying into rural communities. What sort of payback period (years) do you envisage for your own deployments and how much take-up in each area do you usually target?<\/strong><\/p>\n

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

If we get 30% of the community signed up then we move in and start delivering the infrastructure. What we\u2019ve found is that as word gets around, this figure tends to increase significantly and we\u2019ll often end up serving the majority of the community. Our customers sign up to an initial 18 month contract with us. After that we aim to keep every last one of them happy with our service so that there\u2019s no reason for them to look elsewhere.<\/p><\/blockquote>\n

6. From 23rd May 2018 the Advertising Standards Authority<\/a> (ASA) will be requiring all broadband ISPs to advertise \u201caverage<\/em>\u201d speeds (the median measured at peak time) for their headline packages. Are you adopting this change and what are your thoughts on it (i.e. is their method a good approach)?<\/strong><\/p>\n

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

No. We don\u2019t have an average speed as we don\u2019t need one. The speed we advertise is the speed that we deliver. We don\u2019t suffer from network contention issues: our Active Ethernet network provides a full fibre service that guarantees our customers a minimum speed of 200Mbps at any time, just like what some might know as a leased line, but for a fraction of the cost.<\/p>\n

For the wider market, though, this is certainly a step in the right direction in terms of transparency. For too long, some ISPs have bamboozled customers with glossy ads promoting their \u2018fibre\u2019 broadband services, without ever having to provide clarity, or educate on what \u2018average speed\u2019 really means.<\/p>\n

It\u2019s crucial that customers have the tools and information at their disposal to make more informed choices about broadband providers and packages, and aren\u2019t left with a sub-standard service because of unrealistic promotional promises.<\/p><\/blockquote>\n

Continued on page 2..<\/p>\n

<\/p>\n

7. Speaking of the ASA, Cityfibre<\/a> recently announced that they were seeking a Judicial Review of the watchdog\u2019s decision not to clamp down on ISPs that advertised slow hybrid fibre (FTTC<\/a> \/ VDSL2<\/a> \/ Cable etc.) services as \u201cfibre<\/em>\u201d, \u201cfibre broadband<\/em>\u201d or \u201cfibre optic broadband<\/em>\u201d etc.<\/strong><\/p>\n

Cityfibre<\/a> described the ASA\u2019s reasoning as being \u201cfundamentally flawed<\/em>\u201d and to quote their CEO, Greg Mesch: \u201cThe time has come to do away with \u2018fake fibre\u2019. The ASA\u2019s short-sighted decision to allow yesterday\u2019s copper-based infrastructure to masquerade as the future-proof full fibre networks of tomorrow is a clear failure in its duty<\/em>.\u201d<\/strong><\/p>\n

No doubt you also have a viewpoint on this matter and what you think needs to change, if anything?<\/strong><\/p>\n

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

We fully support CityFibre<\/a>\u2019s decision to seek a Judicial Review. The ASA has wantonly ignored the independent research and government recommendations on the matter, and seems to have based its decision on the fact that the general public don\u2019t know what the term \u2018fibre’ means. Surely the correct response would have been to require broadband providers to be transparent about their services – and help to educate everyone on what exactly they are buying?<\/p>\n

I\u2019d like to see continued pressure on the ASA to revise their regulations. If the UK is to move towards a more transparent, equitable and future-proofed digital economy, proper labelling and disclosure around broadband services is vital.<\/p><\/blockquote>\n

8. Staying with the topic of how service speeds are advertised. Earlier this year Ofcom<\/a> announced that they would revise their Voluntary Code of Practice for broadband speeds in order to make it easier for consumers to exit their contract without penalty when performance falls below expectations (due to be enforced from 1st March 2019).<\/strong><\/p>\n

As part of this change signatory ISPs will be required to provide more details about their download and upload speeds via their personal estimate for subscribers. The revised estimates must also reflect the impact of network contention during busy peak-times (8-10pm for residential customers and 12-2pm for businesses).<\/strong><\/p>\n

The code has also been extended to cover Cable and FTTH<\/a>\/P providers, albeit with a less aggressive requirement for the minimum guaranteed performance. We note that your ISP has not joined the scheme. Have you ever considered joining and what is currently holding you back?<\/strong><\/p>\n

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

The Voluntary Code of Practice is to stop ISPs from over-promising and under-delivering. We don\u2019t struggle with peak-time network contention because we\u2019re an active ethernet provider, not a broadband provider. This code is really for broadband providers, although we may consider joining at some point.<\/p>\n

If you\u2019re signed up to the Voluntary Code of Practice it\u2019s because you\u2019re expecting people to get less than what they\u2019re paying for. But we can guarantee the speed being paid for is the speed our customers get direct to their router. We\u2019re not contenders at the edge so it doesn\u2019t matter if everyone is at home and online at the same time – we can guarantee they\u2019ll always get the same speed at the router.<\/p><\/blockquote>\n

9. Over the past year a multitude of providers have announced plans to significantly invest in major expansions of \u201cfull fibre<\/em>\u201d (FTTH<\/a>\/P) ultrafast broadband infrastructure, which have been partly fuelled by Ofcom<\/a>\u2019s changes to regulation (e.g. easier access to Openreach<\/a>\u2019s cable ducts and a revised electronic comms code) and the Government\u2019s support via various funds, as well as a 5 year business rates holiday.<\/strong><\/p>\n

Meanwhile the government has also launched a new consultation, which seeks to understand what kind of future investment and support may be required to help boost FTTP\/H and 5G<\/a> Mobile services. In your opinion, what more must the Government and Ofcom<\/a> do to further improve the coverage of such services?<\/strong><\/p>\n

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

The government don\u2019t need to do anything radically new, but what they must do is ensure the incumbent is not abusing its monopoly. Any government funding must be invested where it\u2019s needed, not just where commercially viable interventions are in place or newly announced. The open market should be allowed to deal with this, and step in to put pressure on OpenReach.<\/p>\n

Money can no longer be cited when building business cases against the delivery of ultrafast networks. The demand is there and the appetite for investment is too. The best thing the government can do is to encourage private investors to build these networks, and ensure that regulatory practices are in place to allow investment to flourish where it\u2019s needed, rather than where it\u2019s most commercially viable.<\/p>\n

Ofcom should continue to support the truth, and help demystify what full fibre, and the associated jargon and technologies, actually mean for individuals, communities and economies. Most people are still confused, and current advertising from part-fibre ISPs touting their \u2018fibre\u2019 broadband services only serves to exacerbate the situation.<\/p><\/blockquote>\n

10. With so many ISPs planning to deploy FTTH<\/a>\/P connectivity into urban areas, the prospect of a significant overbuild will rise. In some areas we might potentially see a choice of several FTTH\/P providers, which is good for consumer choice but might not improve overall coverage and may frustrate locals if their streets are being dug up multiple times by different operators.<\/strong><\/p>\n

What approach do you think should be taken to this or is it more a matter for natural competition and potentially even future market consolidation to sort out?<\/strong><\/p>\n

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

The over-arching goal here is to provide future-proofed connectivity to last generations and, through this, transform local economies to drive growth and improve lives. If there are multiple broadband providers going after a specific urban area, then it\u2019s fine to let market economics take care of it, but hopefully without too much overbuilding, and so long as the different solutions being offered support the long-term objective.<\/p>\n

That\u2019s why the issue with misleading advertising is so pertinent. It encourages the selling of inferior products to consumers and businesses that may not know there\u2019s a better, future-proofed choice available. Create a fair and level playing field for competition, and there shouldn\u2019t be an issue, as the providers with the best business model will win through.<\/p>\n

Where I\u2019m less inclined to promote free competition is where taxpayers\u2019 money is involved. Across the whole country, we have to find ways to avoid any scenarios where Government subsidies are effectively being used to overbuild areas that are already being served by the private sector. The priority should be ensuring full-fibre broadband is a right and not a privilege, and that means using taxpayers\u2019 money first and foremost to connect areas that are not yet being properly served.<\/p><\/blockquote>\n

11. Ofcom will introduce a new voluntary Automatic Compensation system from early 2019, which will force UK ISPs to compensate consumers (cash or bill credits) for a total loss of broadband connectivity (e.g. when an outage lasts longer than 2 working days). Compensation will also be paid for missed engineer appointments and delayed service installs \/ activations.<\/strong><\/p>\n

At present only the largest providers have signed-up to the scheme and smaller operators, such as your own, have not joined. What are your thoughts on the usefulness of this scheme and is it something you would consider joining?<\/strong><\/p>\n

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

Yes we have considered joining. We are passionate about trying to keep our customers connected and happy. The reality is that, on the rare occasion that there is an outage, our customers are generally reconnected within a matter of hours rather than days. Our standard SLA for residential customers is four days, but we negotiate SLAs of as little as four hours for some business customers, for example.<\/p><\/blockquote>\n

12. Finally, where do you expect Truespeed to be come 2025?<\/strong><\/p>\n

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

Our goal is to have 75,000 properties connected by 2021 so we\u2019re looking to have around 1,800 properties passed every month for the next 5 or 6 years. Come 2025, we\u2019d like to see 200,000 properties connected.<\/p>\n

We want to ensure that broadband connectivity is future-proofed for generations to come, and that comes from empowering communities to understand what they are getting so that they can make more informed decisions on their digital future.<\/p><\/blockquote>\n

End.<\/p>\n

We’d like to thank Evan for taking time out of his busy schedule for this interview.<\/p>\n","protected":false},"excerpt":{"rendered":"

The co-founder and CEO of UK ISP Truespeed Communications, Evan Wienburg, has told ISPreview.co.uk – as part of our new interview – that their “full fibre” (FTTP) broadband network in South West England has already covered 3,000 rural premises and they aspire to hit 200,000 by 2025.<\/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":[2716,1],"tags":[438,52,65,56,451,445,439,436],"class_list":["post-16089","post","type-post","status-publish","format-standard","hentry","category-interviews","category-uk_isp_news","tag-devon","tag-fibre-optic","tag-ftth","tag-fttp","tag-gloucestershire","tag-herefordshire","tag-somerset","tag-wiltshire"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nTruespeed CEO - We Hope to Reach 200,000 UK Premises with FTTP - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The co-founder and CEO of UK ISP Truespeed Communications, Evan Wienburg, has told ISPreview.co.uk - 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