{"id":20795,"date":"2020-01-21T00:01:35","date_gmt":"2020-01-21T00:01:35","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=20795"},"modified":"2020-01-21T06:36:42","modified_gmt":"2020-01-21T06:36:42","slug":"examining-bt-groups-uk-single-rural-full-fibre-network-idea","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/01\/examining-bt-groups-uk-single-rural-full-fibre-network-idea.html","title":{"rendered":"A Look at BT Group’s UK Single Rural Full Fibre Network Idea"},"content":{"rendered":"

The CEO of BT<\/a> Group, Philip Jansen, has proposed a new framework, which could see builders of “full fibre<\/em>” (FTTP<\/a>) broadband ISP networks working together in the final 20-30% of hardest to reach premises to maximise coverage, such as by avoiding overbuild in areas that can’t support multiple networks and sharing access.<\/p>\n

On the surface it sounds like a fair idea, which BT<\/a> said would be “fully transparent<\/em>” and could be mediated by Ofcom<\/a> so that rivals can share their roll-out plans in confidence. Essentially, you’d have a deal where rivals agree to co-operate and avoid overlapping each other’s “full fibre<\/em>” networks in the final 20-30% of hardest to reach UK premises (co-build, reciprocal build or a shared network – e.g. giving each player their own local network monopoly, albeit with an obligation to offer wholesale access).<\/p>\n

NOTE:<\/strong> We think this idea has more merit in the final 10%, as the proposed final 20-30% would still include some commercially viable areas.<\/div>\n

However at present there are rules designed to protect competition, which also prevent price fixing and the creation of cartels. Such rules are likely to be an impediment to the aforementioned proposal as there would need to be some agreement on prices, standards of access (wholesale), regulation etc. Nevertheless the argument is that something similar is already being done by UK mobile operators via the \u00a31bn Shared Rural Network<\/a> (SRN).<\/p>\n

On the other hand the economics, build challenges and time-scales of building FTTP<\/a> down every single street vs building a fibre-fed mobile mast that can cover a wide area are significantly different, and so too are their respective markets, regulation and competition considerations.<\/p>\n

At present lots of ISPs are deploying full fibre and with some very different kit\/models, while there are only four primary mobile networks and they tend to adopt broadly similar kit\/models. It’s easier to bring four big, but similar, networks together than 50-100 smaller ones with different approaches (like herding cats).<\/p>\n

Meanwhile Openreach<\/a> (BT<\/a>) would of course like nothing better than to have less regulatory baggage, or for their rivals to suffer some of the same baggage.<\/p>\n

Digging Deeper<\/strong><\/span><\/h3>\n

Alternative networks often build closed full fibre platforms (except when using public funding, although the wholesale offers from altnets in those cases can very) as a means of protecting their investment and the higher level of risk they’re taking as smaller players. Put another way, enticing them to become more open access and to share their deployment plans will be difficult without a bigger carrot to dangle (some altnet ISPs have in the past complained that Openreach<\/a> turned up in the same areas only after they had first revealed their own roll-out plans).<\/p>\n

Questions might also be raised over the issue of creating a different pricing standard for urban and rural areas, although this arguably already exists because it costs more to build in rural areas and often – but not always (e.g. B4RN<\/a>) – that’s reflected in the regulation and price you pay for a new service.<\/p>\n

Equally some may argue that by implementing a rule to protect local monopolies you’d also hinder competition, even if the chance of that competition happening in such areas is minimal. On this point we can’t help but wonder how the new shared rural fibre group of operators would treat those networks that choose not to join their club.<\/p>\n

Suffice to say that reaching any kind of truly mutually beneficial arrangement between operators would be difficult. Implementing all of this would also take a lot of time and consultation, although in fairness it will probably be late 2021 before the Government’s own framework for their \u00a35bn “gigabit<\/em>” broadband roll-out plan is ready to come out of the oven (here<\/a>) – time enough, perhaps, to come up with a deal.<\/p>\n

At the same time we must not forget that BT usually speaks from a position of vested interest, just as all operators tend to do, which is illuminated by Jansen’s perhaps unworkable suggestion that the Government should make investing in rural areas a condition of being allowed to build “full fibre<\/em>” in cities. Obviously this is targeted to hurt rivals like Cityfibre<\/a>, Community Fibre, Hyperoptic<\/a> and even Virgin Media<\/a>, which are urban builders.<\/p>\n

As it stands the Telegraph<\/a>‘s (paywall) piece from last week doesn’t offer much detail and so we can only speculate. Nevertheless BT’s idea is interesting and worth some consideration, but we suspect that there might ultimately end up being too many devils in the detail for this one to attract wide support from within the industry.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CEO of BT Group, Philip Jansen, has proposed a new framework, which could see builders of “full fibre” (FTTP) broadband ISP networks working together in the final 20-30% of hardest to reach premises to maximise coverage, such as by avoiding overbuild in areas that can’t support multiple networks and sharing access.<\/p>\n","protected":false},"author":1,"featured_media":20796,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,65,56,36,69,38],"class_list":["post-20795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt","tag-ftth","tag-fttp","tag-ofcom-regulation","tag-bt-openreach","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nA Look at BT Group's UK Single Rural Full Fibre Network Idea - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The CEO of BT Group, Philip Jansen, has proposed a new framework, which could see builders of "full fibre" (FTTP) broadband ISP networks working together\" \/>\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\/01\/examining-bt-groups-uk-single-rural-full-fibre-network-idea.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Look at BT Group's UK Single Rural Full Fibre Network Idea - 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