{"id":22539,"date":"2020-06-04T15:00:38","date_gmt":"2020-06-04T14:00:38","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=22539"},"modified":"2020-06-03T09:21:35","modified_gmt":"2020-06-03T08:21:35","slug":"report-reveals-the-barriers-to-uk-gigabit-broadband-adoption","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/06\/report-reveals-the-barriers-to-uk-gigabit-broadband-adoption.html","title":{"rendered":"Report Reveals the Barriers to UK Gigabit Broadband Adoption"},"content":{"rendered":"

The Broadband Stakeholder Group<\/a>, which is a think-tank that advises the UK Government, has today published a new report from WIK to help highlight some of the barriers that remain (other than coverage) to getting customers to adopt “gigabit-capable<\/em>” broadband ISP connections ahead of the copper switch-off.<\/p>\n

At present nearly 97% of the United Kingdom should be able to access a fixed “superfast broadband<\/em>” network (download speeds of 24Mbps+), although over the past few years the Government has gradually switched its focus to fostering “full fibre<\/em>” (FTTP<\/a>) and other “gigabit-capable<\/em>” (1000Mbps+) networks that currently only cover around 20% of premises.<\/p>\n

Most of the “gigabit<\/em>” class coverage that exists today comes from Fibre-to-the-Premises<\/strong> (FTTP<\/a>) based infrastructure from multiple operators (Summary of Full Fibre Progress<\/strong><\/a>) and also Virgin Media<\/a>’s hybrid fibre DOCSIS<\/a> network (Virgin’s D3.1 upgrade will enable 1Gbps+ download speeds to half of all homes by the end of 2021).<\/p>\n

On top of all these existing deployments, the Government has also committed \u00a35bn to help ensure that every UK home can access a gigabit capable connection by the end of 2025 (here<\/a>), which will primarily target the final 20% of premises (i.e. the hardest to reach rural and some sub-urban areas) where pure commercial investment models tend to fail.<\/p>\n

The current focus on deployment is all very well, but it’s also important to consider the other side of this coin – adoption by consumers.<\/p>\n

Seeking Gigabit Adoption<\/strong><\/span><\/h3>\n

Attracting take-up of gigabit services is vital in order to support the investment that operators are making. At this point we’re also assuming that any future framework under the Government’s \u00a35bn investment will probably involve an element of clawback (i.e. public money being returned by operators as take-up rises), which may be similar to the one seen under the Building Digital UK<\/a> contracts that helped to boost “superfast<\/em>” cover beyond 95% and is continuing to do so today.<\/p>\n

Clare MacNamara, CEO of BSG, said:<\/strong><\/p>\n

“No gigabit nation was built in a day, but several, like Sweden, have largely been achieved in the course of a decade, with favourable demand-side conditions a critical factor. As the UK seeks to leverage its position as an evolved digital nation, and deployment of new digital infrastructure accelerates, we need to aim for a similar level of fibre adoption to international competitors so that consumers and businesses benefit from the investments being made.<\/p>\n

Now is the time to grasp the opportunity to build on the constructive collaboration achieved between industry, government and the regulator. During this national crisis we must implement these recommendations to speed up our recovery and so that we create the conditions needed to bring consumers and businesses with us towards a fibre-enabled UK.”<\/p><\/blockquote>\n

On the surface it may seem like a simple matter of “build it, and they will come<\/em>.” Indeed full fibre networks seem to do quite a good job at organically growing take-up, which is partly down to the significant step change they bring in performance and reliability. The chart below, which is from a separate report by Analysys Mason, is certainly showing some promise.<\/p>\n

NOTE:<\/strong> It’s best to judge take-up by only looking at areas that completed their roll-out around 1-2 years ago (a lot of FTTP<\/a> operators target 20-25%+ take-up), otherwise the overall pace of build may dilute the figure.<\/div>\n

\"analysys_mason_uk_full_fibre_fttp_progress_2020\"<\/p>\n

However, despite those positive signs, attracting take-up remains a slow and complicated process due to various obstacles. For example, consumers may be discouraged by the higher prices of a new service or any loss of existing functionality (e.g. copper extension sockets won’t work with FTTP as calls are made via VoIP and such lines won’t work in a power cut without a battery backup). Meanwhile others might not even desire a faster service (e.g. users with only basic needs).<\/p>\n

The rising number of gigabit-capable alternative network (AltNet) ISPs also make the market much more confusing for consumers and some people may not even be aware that they can access a faster connection. On top of that you also have the more predictable problems, such as people being tied to long contracts with their existing ISP, which could hamper their ability to switch, or simply being fearful of switching in general.<\/p>\n

Lest we forget that gigabit broadband somewhat lacks a “killer application<\/em>,” although admittedly the ability to transfer data so quickly does make everything feel much more seamless. Indeed people are often attracted just as much by the idea (marketing) of 1Gbps, perhaps even more so than the reality of its practical benefits.<\/p>\n

One issue here is that you’d struggle to take advantage of a full 1Gbps+ connection today as most internet services simply can’t run that fast and hardware limits often get in the way. For example, even those 1G LAN ports on your router can’t individually hit 1000Mbps due to limitations of their design (960-970Mbps is closer to the real max) and slow WiFi<\/a> is another issue, although the addition of the 6GHz band in the future may help.<\/p>\n

Looking to the future<\/strong><\/span><\/h3>\n

Openreach<\/a> (BT<\/a>) currently has the biggest job here because of their massive legacy copper network and they’re only just starting the transition to FTTP (here<\/a>). The current process will give consumers a few years to make a natural migration (supported by messaging and adverts from ISPs), although eventually some users may need to be forcibly switched (this needs to be handled very carefully).<\/p>\n

Openreach<\/a> expects to switch-off their old analogue telephone (PSTN) services in favour an all-IP (e.g. VoIP) platform by the end of 2025 (here<\/a>), which is a process that has already started with existing copper networks adopting IP solutions via SOGEA (here<\/a>). However it will take years longer, through a phased approach, to fully withdraw the old physical copper line network itself (Openreach<\/a> will start this process once 75% of an exchange area can access FTTP).<\/p>\n

The new report from WIK – ‘Moving to a fibre-enabled UK: International experiences on barriers to gigabit adoption<\/em><\/a>‘ – essentially looks at how other countries (i.e. France, Germany, Italy and Sweden) have handled the various challenges involved with growing take-up and makes a series of recommendations for the UK. WIK also did a related report for the FTTH<\/a> Council Europe last year (here<\/a>).<\/p>\n

The research found differences in approaches and some commonalities. Across the board it found that there isn\u2019t always a direct correlation between the pervasiveness of gigabit networks and the pace of consumer and business adoption. The latter may have more to do with attractiveness of alternatives, such as FTTC<\/a>, which may be perceived to be adequate.<\/p>\n

The above is particularly true in markets when triple-play (i.e. bundles of broadband, TV and phone) is offered at the same price on lower-speed networks, such as in France and Italy. Conversely, where there are currently only low speed broadband offerings, as in many rural areas, migration on to high speed gigabit services becomes an attractive proposition, particularly when well-marketed in those localities. “There is evidence of this in Germany and France as well as in the UK<\/em>,” said WIK.<\/p>\n

Overall WIK has identified four broad areas where the BSG believe there could be useful lessons for the UK.<\/p>\n

WIK’s Four Recommendations<\/strong><\/span><\/p>\n

1. Address advertising and customer communications to improve consumer and business understanding of the benefits of gigabit broadband – and ability to distinguish between the broadband networks available to them.<\/strong><\/p>\n

The UK Government and Ofcom<\/a> could consider developing and adopting a labelling system that enables consumers to make informed purchasing decisions, including by allowing them to better compare services they are contemplating. Options pursued in other countries include labelling systems based on “traffic lights.”<\/p>\n

The Government could also consider providing funding to local authorities to support the marketing of gigabit broadband which is being deployed through Government aid programmes.<\/p>\n

2. Incentivise take-up of new gigabit broadband connections and address issues of affordability for businesses and consumers.<\/strong><\/p>\n

Building on previous experience, the Government could consider expanding on its existing voucher schemes. Besides extending schemes which subsidise the cost of new connections, the Government could consider whether there may be value in schemes which incentivise customers to upgrade to gigabit-capable broadband lines in areas where such lines have been deployed.<\/p>\n

Such support could be universal, or, if desired, could be targeted towards those facing specific challenges with affordability or groups which risk being left behind. Vouchers to support the provision of gigabit connectivity for public institutions including schools and hospitals could also be considered.<\/p>\n

3. Leverage digitisation to support the economy and society in a post COVID-19 era.<\/strong><\/p>\n

The Government could consider revitalising and refocusing initiatives around the digitisation of industry and public services to leverage lessons from the coronavirus experience. Such initiatives could support and extend the potential for remote working, delivery of healthcare and education services, as well as supporting businesses in utilising new technologies such as AI and robotics to aid production and increase efficiency.<\/p>\n

Support could for example include funding for central as well as local Government to support the delivery of remote healthcare, social care and monitoring, and innovation vouchers for SMEs to support their purchase of consulting and training services to adapt to the use of new technologies.<\/p>\n

In this context, the Government could also highlight, for example through a national marketing campaign, how gigabit broadband connections could support SMEs in pursuing flexible working and implementing digital solutions and could potentially consider a voucher scheme for this purpose. Tax incentives could also be explored.<\/p>\n

4. Facilitate eventual switch-off of the legacy copper network by securing buy-in from all relevant broadband industry stakeholders.<\/strong><\/p>\n

Ofcom<\/a> and Government together with industry, could consider what role if any, could be played by co-investment, in the context of ongoing discussions on migration to fibre networks and switch-off of copper networks.<\/p>\n

Consideration is also needed, through industry dialogue supported by Government, of how migration to gigabit networks and switch-off of the copper network can be achieved in areas where fibre has been deployed by alternative investors or where there are competing networks.<\/p>\n

Government, together with Ofcom<\/a>, could also consider whether any additional measures may be needed to support the deployment of 5G<\/a> fixed wireless access, especially in the most remote areas. A holistic solution will be needed across the different operators and technologies present to achieve nationwide copper switch-off.<\/p><\/blockquote>\n

We’d add to the above that Ofcom could also do more to require that network builders share their existing coverage data, particularly Openreach and Virgin Media<\/a>, in order to make it easier for third-parties like ISPreview.co.uk to build more effective broadband coverage checkers that work across multiple networks. At present trying to get any progress on this front is often akin to hitting your head against a brick wall and the industry would benefit from a clear standard.<\/p>\n

At the same time we shouldn’t forget that building gigabit-capable networks isn’t just about achieving the top speed, it’s also about creating a network that will last for decades to come and give people greater reliability and performance from whatever speed they choose. Consumers are generally happiest when they get what they pay for, as opposed to today where for many areas achieving what is advertised by an ISP can be rather more challenging.<\/p>\n

Overall WIK’s report provides quite a good summary of the challenges, even if they are issues that regular readers of ISPreview.co.uk will have seen repeated on these pages more than a few times before over the past few years. Finally, credits to Thinkbroadband<\/a> for the most recent broadband statistics.<\/p>\n

Greg Mesch, CEO of CityFibre<\/a>, said:<\/strong><\/p>\n

“Delivering the Government\u2019s goal of nationwide rollout of full fibre by 2025 has never been more important. As CityFibre<\/a> and others invest billions to future proof the digital connectivity that increasingly supports our lives and businesses, it\u2019s essential that consumers are able to easily choose and switch to these new networks. This timely report outlines the steps required to enable consumers to benefit from the rollout, including the need for clearer broadband advertising. We look forward to working with industry colleagues, Government and Ofcom to deliver them.”<\/p><\/blockquote>\n

Catherine Colloms, Director of Corporate Affairs and Brand at Openreach, said:<\/strong><\/p>\n

“We know that new, ultrafast and ultra-reliable broadband can help the UK bounce back more quickly from the Covid-19 crisis. Our new network\u2019s going to boost productivity, slash carbon emissions, and level-up our rural and local economies \u2013 and that\u2019s why we\u2019re aiming to reach 20 million UK homes and businesses with full fibre by the mid-to-late 2020s. But all that won\u2019t happen from Openreach building it alone. It is vital that the industry and Government work together to drive faster deployment and rapid adoption, making sure everyone can reap the benefits of full fibre broadband as soon as possible.”<\/p><\/blockquote>\n

Lucy Thomas, Corporate Affairs Director at TalkTalk<\/a>, said:<\/strong><\/p>\n

“Now more than ever, the whole country needs fast, reliable connectivity, so the race to deliver a full fibre Britain is on. These findings make clear that two things are vital to making it happen: cost, so that consumers and businesses can afford the product and are not priced out; and communications \u2013 so that people understand all the benefits it brings. By learning the lessons from Europe and elsewhere, we can incentivise take-up and ensure that the full advantages of full fibre are available and affordable for everyone. So it\u2019s down to industry, the Government and regulators to take this on board.”<\/p><\/blockquote>\n

Andrew Wileman, Director of Regulatory Affairs – Virgin Media<\/a>, said:<\/strong><\/p>\n

“The importance of connectivity to our lives has never been more apparent than it is right now. Next-generation connectivity has the ability to turbocharge the nation\u2019s economic recovery and Virgin Media is making significant progress to bring gigabit broadband to more than half of the country by the end of 2021. Take up is vital, which is why we welcome the recommendations in the report and urge Government, regulators and industry to come together to explore how they can help drive adoption in this vibrant market.”<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The Broadband Stakeholder Group, which is a think-tank that advises the UK Government, has today published a new report from WIK to help highlight some of the barriers that remain (other than coverage) to getting customers to adopt “gigabit-capable” broadband ISP connections ahead of the copper switch-off.<\/p>\n","protected":false},"author":1,"featured_media":22544,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[471,419,55,65,56,69,38,34,475],"class_list":["post-22539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bduk","tag-docsis3-1","tag-fttc","tag-ftth","tag-fttp","tag-bt-openreach","tag-politics","tag-statistics","tag-virgin-media"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nReport Reveals the Barriers to UK Gigabit Broadband Adoption - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Broadband Stakeholder Group, which is a think-tank that advises the UK Government, has today published a new report from WIK to help highlight some of\" \/>\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\/06\/report-reveals-the-barriers-to-uk-gigabit-broadband-adoption.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Report Reveals the Barriers to UK Gigabit Broadband Adoption - 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