{"id":23400,"date":"2020-08-03T09:12:56","date_gmt":"2020-08-03T08:12:56","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=23400"},"modified":"2020-08-03T14:18:57","modified_gmt":"2020-08-03T13:18:57","slug":"openreach-warns-of-car-crash-for-uk-govs-5bn-gigabit-rollout","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/08\/openreach-warns-of-car-crash-for-uk-govs-5bn-gigabit-rollout.html","title":{"rendered":"Openreach Warns of Car Crash for UK Gov’s \u00a35bn Gigabit Rollout"},"content":{"rendered":"

The CEO of Openreach<\/a> (BT<\/a>), Clive Selley, has warned that the UK Government’s proposed framework for how it intends to invest \u00a35bn in order to ensure that “every home<\/em>” can access gigabit-capable broadband (1Gbps+) by the end of 2025 is so complicated that it risks being turned into a “bureaucratic car crash<\/em>.” Delays likely.<\/p>\n

At present over 22% of UK premises can access a “gigabit-capable<\/em>” broadband service (here<\/a>) and it’s hoped that private investment will help to push this up to 70-80% over the next few years. As such the Government’s \u00a35bn investment is being targeted toward the final 20% of hardest to reach (mostly) rural premises via a mix of different technology types (e.g. FTTP<\/a>, DOCSIS<\/a> 3.1, Fixed Wireless \/ 5G<\/a> etc.).<\/p>\n

NOTE:<\/strong> In this case the final 20% equates to around 6 million UK premises.<\/div>\n

In reality it’s no secret that few people within the industry expect the Government to achieve universal coverage by the end of 2025, which is perhaps one reason why the political language has recently appeared to be watered down (here<\/a>). As Matt Warman MP<\/strong> said last month: “we will work as hard as we possibly can to go as far as we possibly can by 2025<\/em>.” We also haven’t forgotten when 2025 was a “full fibre<\/em>” only target, before that got watered down too (here<\/a>).<\/p>\n

Last month we revealed a rough layout for how the Government’s (DCMS) Building Digital UK<\/a> team are proposing to invest that \u00a35bn (here<\/a>). One element that stuck out was the way in which the BDUK team intend to split areas up into “bundles<\/em>” of c.3,300 premises<\/strong> for procurement (categorised to identify the areas\u2019 most in need and to also factor the cost of delivery via 11 different models).<\/p>\n

On the one hand this may be more accessible to smaller alternative network (AltNet) operators, while on the other hand Openreach<\/a> has been calling for bigger bundles (ensures economies of scale) and longer-term contracts. Certainly any process that involves potentially thousands of different LOTS across the UK is going to be complex (complexity also tends to add cost and delays) and Openreach<\/a> aren’t happy.<\/p>\n

Clive Selley, Openreach CEO, said (Telegraph<\/a> – paywall):<\/strong><\/p>\n

“The early chatter has been talk of 1,200 or 1,400 lots … and that is just a bureaucratic car crash. For a big player, we want two or three contracts with a big price tag.”<\/p><\/blockquote>\n

Openreach is also concerned that it can take them 2 years to train up new engineers. Selley added that to build to an additional 3 million homes (with FTTP<\/a>) beyond their current plan would require the recruitment of a further 7,500 engineers: “I have training capacity for 4,000 per annum, so we\u2019d rather get going on Monday, not Monday 2021<\/em>.”<\/p>\n

In fairness it is possible to give a fibre engineer adequate skills in about 12 months (i.e. they don’t all need to reach the expert level to be competent in core tasks), but even that is still a long time and operators often don’t make forward hire decisions until they know investment will actually be coming their way (i.e. until contracts have been awarded). In other words, getting the framework ready is only part of the challenge.<\/p>\n

On top of that the Government may not wish to see BT<\/a> scoop up all of the contracts like they did in Phase 1 of the BDUK “superfast broadband<\/em>” programme some years ago, which attracted a fair bit of criticism. But weighing against that is the fact that the earlier scheme did largely achieve its targets and not many major infrastructure projects can make such a claim.<\/p>\n

At this point it’s often also forgotten that the Government’s 2018 Future Telecoms Infrastructure Review<\/a> (FTIR) indicated that a large-scale “full fibre<\/em>” deployment to cover the final 10% of premises would eventually require some \u00a33bn to \u00a35bn of public investment. The Government’s commitment of \u00a35bn might thus be considered under-funding as it targets the final 20%, but much will thus depend upon the balance of technology choice.<\/p>\n

All of this is before we consider the on-going delays to Ofcom<\/a>’s next 5G<\/a> mobile spectrum auction. Admittedly we have our doubts about how much of a role 5G<\/a> itself will actually play in the \u00a35bn programme because the nature of mobile in rural areas (i.e. using lower frequencies to cover a wider area) doesn’t exactly make it easy to deliver speeds of 1Gbps. You also still need to feed those masts with fibre or more limited Microwave links.<\/p>\n

Nevertheless, if we assume that 5G will play a role then the recent decision to ban Huawei<\/strong> won’t help. Both Vodafone<\/a> and Three UK<\/a> have already called upon Ofcom<\/a> to scrap their future auction and adopt a different model (they want spectrum to be allocated at a price agreed between the networks themselves – and pigs may fly), while O2<\/a> has launched a legal challenge (here<\/a>). But changing the rules yet again (they already did it once for the Shared Rural Network) would also add significant delays.<\/p>\n

We await BDUK’s final framework and Ofcom<\/a>’s future 5G auction with great interest.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CEO of Openreach (BT), Clive Selley, has warned that the UK Government’s proposed framework for how it intends to invest \u00a35bn in order to ensure that “every home” can access gigabit-capable broadband (1Gbps+) by the end of 2025 is so complicated that it risks being turned into a “bureaucratic car crash.” Delays likely.<\/p>\n","protected":false},"author":1,"featured_media":23402,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,471,56,69,38],"class_list":["post-23400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt","tag-bduk","tag-fttp","tag-bt-openreach","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach Warns of Car Crash for UK Gov's \u00a35bn Gigabit Rollout - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The CEO of Openreach (BT), Clive Selley, has warned that the UK Government's proposed framework for how it intends to invest \u00a35bn in order to ensure that\" \/>\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\/08\/openreach-warns-of-car-crash-for-uk-govs-5bn-gigabit-rollout.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach Warns of Car Crash for UK Gov's \u00a35bn Gigabit Rollout - 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