{"id":19365,"date":"2020-04-10T00:01:31","date_gmt":"2020-04-09T23:01:31","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=19365"},"modified":"2024-02-23T15:27:49","modified_gmt":"2024-02-23T15:27:49","slug":"wightfibre-ceo-the-challenge-of-bringing-fttp-to-an-island","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/04\/wightfibre-ceo-the-challenge-of-bringing-fttp-to-an-island.html","title":{"rendered":"WightFibre CEO – The Challenge of Bringing FTTP to an Island"},"content":{"rendered":"

In a new interview the CEO of ISP WightFibre<\/a>, John Irvine, has spoken to ISPreview about some of the challenges they’ve faced in deploying Fibre-to-the-Premises (FTTP<\/a>) broadband across the Isle of Wight (England), particularly obstacles created by the council, and their future hope of covering 71,000 premises by 2025.<\/p>\n

Until recently WightFibre<\/a> (formerly Wightcable until a rebrand and restructure in 2012) predominantly operated a limited Hybrid Fibre Coax<\/strong> (DOCSIS<\/a>) based network on the island, which was similar to Virgin Media<\/a>’s UK platform and covered around 13,000 homes<\/strong> (plus 4,000 homes already ducted) with their ultrafast broadband and phone services.<\/p>\n

NOTE:<\/strong> The Isle of Wight resides just off the south coast of Hampshire.<\/div>\n

However, the operator had long held an ambition of expanding to reach the rest of the island and that finally came to fruition in 2018, following a \u00a335m<\/strong> investment deal with Infracapital (here<\/a>). As part of that agreement the operator also changed their roll-out strategy to focus on a gigabit-capable full fibre network, which would both replace their existing HFC infrastructure and expand well beyond it.<\/p>\n

The initial target was to cover 53,000 homes (plus a few thousand businesses) by the end of 2021 and they’ve so far reached 15,000 homes (18th March 2020), with a target of 30,000 by the end of 2020 and 55,000 premises by the end of 2021 (a little short of their target – when businesses are included). But John Irvine now expects they can go beyond that to reach 66,000 premises by the end of 2022 and possibly 71,000 by 2025.<\/p>\n

Interesting Irvine said the decision to adopt FTTP<\/a> was aligned to the Government’s focus on full fibre at the time, which has since been diluted down to gigabit-capable and if they were to make that same decision today then they might well have upgraded to DOCSIS<\/a> 3.1 instead (Virgin Media<\/a> use that to achieve 1Gbps+). “This could have been done for a fraction of the cost of the upgrade to full-fibre and much more quickly<\/em>,” said the CEO.<\/p>\n

\"wightfibre<\/p>\n

Nevertheless Irvine remains happy with the decision to go with full fibre as it will deliver higher service levels and better speeds going forward, although the operator remains concerned that “local authorities are institutionally biased towards BT<\/a> Openreach<\/a><\/em>” and could try to overbuild them with state aid (a similar thing happened with the earlier BDUK funded deployment of slower FTTC<\/a> on the island).<\/p>\n

WightFibre<\/a> also faces a familiar obstacle from complicated and expensive wayleave (land access) agreements, as well as the fact that the council has chosen to hand control of the island’s road and footways to a private, profit making company (Island Roads).<\/p>\n

Irvine claims the new company are using their fibre roll-out as a “revenue generating opportunit<\/em>y” and resolving this is said to have cause some added costs, as well as delays. “It is certainly not seen as a strategic infrastructure project by anyone other than local politicians and the executive officers in the council<\/em>,” said Irvine.<\/p>\n

Despite such challenges WightFibre has made extremely good progress and, much as we reported in August 2019 (here<\/a>), the main bulk of their build is currently taking place with approximately 2-3,000 extra homes being reached per month. See below for further details in our extended interview with John.<\/p>\n

NOTE:<\/strong> John Irvine joined WightFibre in 2012 when it was still Wightcable. He has a long career in telecoms having spent 8 years at IBM, 10 years at BT<\/a> and 3 years at Verizon with spells in a number of start-ups including Truphone.<\/div>\n

The WightFibre Interview (John Irvine)<\/strong><\/span><\/h3>\n

Q1. Can you tell us how many premises passed you’ve achieved with your FTTP<\/a> deployment so far and whether you still expect to complete the rollout by the end of 2021?<\/strong><\/p>\n

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

WightFibre have 12,000 homes passed (as of 7th February 2020) and now rolling out at approximately 2-3,000 homes per month. We are on target for around 30,000 homes passed by end 2020 and 55,000 homes passed by the end of 2021, a little short of our initial target set in 2017. An additional 11,000 premises have been identified. We are planning to a total of 66,000 premised passed by the end of 2022.<\/p>\n

There are a further circa 5,000 homes which we cannot reach due to wayleave and Section 58 notice limitations. We expect to reach those premises in due course (by 2025) as Section 58 notices expire and wayleaves are given. This would give a total 71,000 homes passed.<\/p>\n

It is worth noting, at WightFibre, we define homes passed as homes ready for service and so, for example, we don\u2019t include MDUs in these numbers until they have been internally cabled.<\/p><\/blockquote>\n

Q2. The project’s current investment of \u00a335m, which we understand should benefit 53,000 homes (as well as a few thousand businesses), puts the per premises cost at somewhere around \u00a3580-\u00a3660. This seems about right for urban \/ suburban areas on the Isle of Wight but rural areas are predicted to be much more expensive for FTTP.<\/strong><\/p>\n

Ofcom<\/a> has suggested that reaching some remote rural areas could push the per premises cost up to \u00a32,500, while Openreach<\/a> believes that the final 10% of the UK might even hit \u00a34,000 via FTTP (here<\/a>). How much do WightFibre expect the per premises cost to rise for the more rural parts (e.g. around West Wight) and do you think it will be possible to raise enough investment to do every single one?<\/strong><\/p>\n

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

WightFibre had an existing 13,000 homes passed with our HFC network and a further 4,000 homes already ducted. The cost of upgrading these to full fibre is less than for new build network (because little civil engineering is required). For our initial deployment, therefore, the average cost per premise is lower.<\/p>\n

The bulk of the island\u2019s population (circa 58,000) are concentrated in the main towns and large villages which we would regard as urban. Another circa 10,000 are concentrated in smaller villages in hamlets which could be viewed as truly rural. A further circa 5,000 are \u2018extreme\u2019 rural. We are seeing CPP of less than \u00a31,000 per home passed for urban and rural. Only the extreme rural premises are exceeding this with some individual premises reaching costs of several \u00a310,000s.<\/p>\n

The additional 10,000 rural premises have only become economical because of BT<\/a> Openreach<\/a>\u2019s exchange to exchange Dark Fibre X<\/a> product which has recently been made available on the Isle of Wight. Without this the cost of trunk or backhaul connections to those small villages and hamlets would have made them uneconomical. This Dark X product is, as yet, unproven to us but BT Openreach are being quite supportive in our attempts to deploy this on the Isle of Wight.<\/p>\n

WightFibre is also making some expedient use of PIA (Physical Infrastructure Access) though this is expected to constitute less than 10% of our network measured by homes passed.<\/p><\/blockquote>\n

NOTE:<\/strong> PIA or Physical Infrastructure Access is a product that Openreach sells, which gives rival ISPs access to run their own fibre through existing cable ducts and poles.<\/div>\n

Q3. Can you tell us a bit more about the kit (e.g. XGS-PON or some other full fibre standard technology etc.) and the suppliers that you’ve chosen to work alongside for FTTP on the Isle of Wight and why you picked them?<\/strong><\/p>\n

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

WightFibre\u2019s network is a Point to Point network with multiple fibres deployed to each premise (although only one fibre will ever be in use for the foreseeable future).<\/p>\n

Our core network utilises Juniper equipment with connections from two head ends on the island to two data centres in London via SSE Telecom. Underwater connections to the mainland are diverse via an SSE owned cable and a BT owned cable.<\/p>\n

Our street network uses Keymile (now DZS Keymile) equipment, chosen for its\u2019 compatibility with our existing cabinets, high capacity and our long standing relationship with Keymile. Each Keymile MSAN is deployed with a pair of 10Gb trunk connections diversely routed (upgradeable to 2 x 20Gb with currently available Keymile equipment) so we believe this is a truly futureproof network deployment.<\/p>\n

Passive materials including the ODFs are sourced exclusively from Hexatronics.<\/p>\n

Street cabinets are from ICEE in Waterlooville including the electrical, battery backup and cooling elements designed and sourced in co-operation with Hexatronics.<\/p>\n

Network planning is outsourced to Flomatiks.<\/p><\/blockquote>\n

Flick over page 2 to finish reading this interview..<\/p>\n

<\/p>\n

Q4. Obviously WightFibre’s main competitor on the island is still Openreach (BT), which with the support of public funding – something that now seems like an at least partly wasted effort given WightFibre’s commercial project – has predominantly only deployed significantly slower FTTC<\/a> (VDSL2<\/a>) networks to consumers.<\/strong><\/p>\n

In order to make your investment work at its best we imagine that you must be seeking to take some of Openreach’s market share on the island. Have you seen much evidence for this in your FTTP initial areas or is it still too early to talk about solid take-up figures (both in general across the deployment and more specifically from Openreach’s coverage)?<\/strong><\/p>\n

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

WightFibre has been operating on the island since 2001. In our existing HFC cabled area of 13,000 premises we have over 40% market share. This is probably why BT have targeted our home town of Cowes for their first FTTP deployment on the island.<\/p>\n

We believe we can replicate this 40% market share as we extend our reach across the island, particularly as we are deploying a superior product.<\/p>\n

There is also an \u2018island\u2019 factor at play where islanders choose local island companies over large national companies when given a choice.<\/p><\/blockquote>\n

Q5. Are you concerned about the possible future prospect of Openreach also deploying FTTP across the Isle of Wight and if that were to happen then would WightFibre seek to make any big changes in order to combat them (prices, products etc.), or rely on what they’re already able to offer via the new full fibre network? We note that some FTTP providers have called upon Ofcom<\/a> and the Government to help protect their investments from the incumbent, particularly in rural areas.<\/strong><\/p>\n

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

Our business model expects BT to deploy FTTP throughout the island. It would be nice to think they will do this without state aid. All we ask of the regulator is a level playing field, something we did not have with the previous BDUK Rural Broadband products where state aid was given to BT to over build our HFC network.<\/p>\n

For the time being WightFibre has first mover advantage. WightFibre have demonstrated we can take market share from the big national providers and we see no reason why this cannot continue. We have a full triple play offering with our own business and residential voice service and a tv offering from Netgem tv.<\/p>\n

Our pricing is competitive and we expect it to remain so.<\/p><\/blockquote>\n

Q6. Has WightFibre ever considered making their network open access so that other ISPs can join and offer services or would this be too damaging to your significant private investment in FTTP? Are there other arguments against going open access?<\/strong><\/p>\n

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

WightFibre would be happy to make our network available to other ISPs but we would expect to do this on a case by case basis with other ISPs. Sky and TalkTalk<\/a> have both announced partnership programmes but the thresholds they have set for these programmes are currently set too high for WightFibre.<\/p>\n

This isn\u2019t quite open access. We would like to be able to choose to whom we make our network available.<\/p><\/blockquote>\n

Q7. The current Government has committed to an investment of \u00a35bn in order to help boost the roll-out of “gigabit-capable<\/em>” broadband (via 5G<\/a>, DOCSIS<\/a> or FTTP etc.) across the final 20% of hardest to reach premises, potentially reaching every home by the end of 2025.<\/strong><\/p>\n

Given that you have some experience of running a cable (DOCSIS network), what are your thoughts on this (e.g. how should it be handled, what regulatory changes do you think might be needed etc.) and do you have any concern about the Isle of Wight Council (IWC) potentially funnelling some of the money toward Openreach rather than yourselves (much like happened with the original Broadband Delivery UK<\/a> programme)?<\/strong><\/p>\n

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

It would have been nice if the government had stuck to its full-fibre to the home concept \u2013 the phrase \u2018gigabit capable\u2019 still requires definition. That said, for the very hardest to reach areas full FTTP will not be economic. In the Isle of Wight we estimate around the last 10% of premises will be uneconomic for FTTP.<\/p>\n

Thankfully the new DCMS Outside In programme will be contracted centrally via DCMS and local authorities will not be the final arbiter in awarding contracts. I do think local authorities are institutionally biased towards BT Openreach and there is a significant risk still that much of the Outside In funding will flow to BT Openreach.<\/p><\/blockquote>\n

Q8. Speaking of cable networks, Virgin Media<\/a> has recently started deploying DOCSIS 3.1 technology are delivering download speeds of over 1Gbps. Why did WightFibre ultimately choose to adopt FTTP instead of upgrading to DOCSIS 3.1?<\/strong><\/p>\n

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

At the time of WightFibre\u2019s original investment \u2013 full-fibre broadband was at the forefront of government strategy having been championed by Matt Hancock when he was Minister for Digital and subsequently DCMS. At that time, therefore, we made the decision to upgrade our HFC network to full-fibre to align with government strategy.<\/p>\n

If we were making this decision today and with the advent of \u2018gigabit capable\u2019 broadband as an acceptable alternative to full-fibre, we would probably chose to upgrade our HFC network to DOCSIS 3.1. This could have been done for a fraction of the cost of the upgrade to full-fibre and much more quickly.<\/p>\n

That said, the original decision is still sound. The inherent reliability of a full-fibre network versus that of a DOCSIS network means much higher service levels and speeds can ultimately be provided via full-fibre. In short, a full-fibre network has fewer \u2018moving parts\u2019 than a DOCIS network and so fewer points of failure. In addition, we have a single network to manage across the island rather than two.<\/p><\/blockquote>\n

Q9. The Isle of Wight is not part of the UK mainland but still faces many of the same obstacles, such as in its less economic rural areas. With that in mind, what have been your biggest challenges in the rollout so far and what sort of obstacles do you expect if or when trying to reach into the most remote locations?<\/strong><\/p>\n

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

The biggest obstacle to the roll out so far has been the Isle of Wight Council. The situation is more complex than usual in that a PFI handed control of the island\u2019s road and footways to a private, profit making company \u2013 Island Roads.<\/p>\n

The WightFibre Gigabit Island project is being used by middle managers in Island Roads and the Isle of Wight Council as a revenue generating opportunity. It is certainly not seen as a strategic infrastructure project by anyone other than local politicians and the executive officers in the council. WightFibre are working through these challenges but at increased cost and delay to the rollout.<\/p>\n

For the more remote areas we expect to use Openreach Dark X and PIA to minimise costs. For extreme remote areas we expect to use fixed wireless broadband \u2013 but we estimate using this solution only for between 1,000 and 3,000 very hard to reach premises.<\/p><\/blockquote>\n

Q10. Assuming all goes to plan and you eventually complete your FTTP roll-out then what comes next? For example, have you considered the possibility of expanding on to the mainland and would this be viable?<\/strong><\/p>\n

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

WightFibre has no plans to expand beyond the Isle of Wight.<\/p><\/blockquote>\n

Q11. Finally, what industry development or change are you most looking forward to over the next year?<\/strong><\/p>\n

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

WightFibre is looking forward to the release of DCMS Inside Out funding. We see this funding as key to achieving 100% premises coverage. WightFibre\u2019s aim is for the Isle of Wight to be the first rural area of the UK to have 100% gigabit capable coverage.<\/p><\/blockquote>\n

We’d just like to thank John for agreeing to take part in our interview and helping to provide a unique insight into WightFibre’s FTTP deployment on the Isle of Wight.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a new interview the CEO of ISP WightFibre, John Irvine, has spoken to ISPreview about some of the challenges they’ve faced in deploying Fibre-to-the-Premises (FTTP) broadband across the Isle of Wight (England), particularly obstacles created by the council, and their future hope of covering 71,000 premises by 2025.<\/p>\n","protected":false},"author":1,"featured_media":21184,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[2716,1],"tags":[419,65,56,431,38],"class_list":["post-19365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interviews","category-uk_isp_news","tag-docsis3-1","tag-ftth","tag-fttp","tag-hampshire","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nWightFibre CEO - The Challenge of Bringing FTTP to an Island - ISPreview UK<\/title>\n<meta name=\"description\" content=\"In a new interview the CEO of ISP WightFibre, John Irvine, has spoken to ISPreview about some of the challenges they've faced in deploying\" \/>\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\/2020\/04\/wightfibre-ceo-the-challenge-of-bringing-fttp-to-an-island.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/04\/wightfibre-ceo-the-challenge-of-bringing-fttp-to-an-island.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WightFibre CEO - 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