{"id":28071,"date":"2021-08-27T00:01:35","date_gmt":"2021-08-26T23:01:35","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=28071"},"modified":"2024-02-23T15:28:16","modified_gmt":"2024-02-23T15:28:16","slug":"openreachs-director-of-fibre-build-talks-scotlands-r100-rollout","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/08\/openreachs-director-of-fibre-build-talks-scotlands-r100-rollout.html","title":{"rendered":"Openreach’s Director of Fibre Build Talks Scotland’s R100 Rollout"},"content":{"rendered":"

Openreach<\/a>’s (BT<\/a>) Director of fibre build for the UK, Andrew Hepburn, has today helped ISPreview.co.uk to understand some of the challenges they face in extending Fibre-to-the-Premises (FTTP<\/a>) broadband across rural parts of Scotland under the \u00a3600m Reaching 100% (R100) project and how they’re overcoming them.<\/p>\n

At present some 95% of Scotland can already access a “superfast broadband<\/em>” (30Mbps+<\/strong>) network (here<\/a>) and the Scottish Government<\/a>’s new R100 programme was designed to extend this to as much of the final 5% as possible. Openreach<\/a> has since secured all three of the R100 contract LOTS for Scotland and the vast majority of that build, which is already underway, will involve the use of gigabit-capable FTTP<\/a> technology.<\/p>\n

NOTE:<\/strong> R100 is not an automatic upgrade, you still have to order related FTTC<\/a> and FTTP<\/a> services from a supporting Openreach<\/a> ISP (examples<\/a>).<\/div>\n

In terms of the three contracts – LOT 1<\/strong> (North Scotland and the Highlands<\/em>) is still being finalised, while LOT 2<\/strong> (Central Scotland<\/em>) will reach 32,200 premises (95.6% of those will be via FTTP, with the rest FTTC<\/a>) and LOT 3<\/strong> (Southern Scotland<\/em>) targets 20,700 premises (100% is FTTP). Combined, this should bring Scotland very close to universal coverage of superfast connectivity.<\/p>\n

We should highlight that there was, at one point, a fair bit more hybrid Fibre-to-the-Cabinet<\/strong> (FTTC<\/a> \/ VDSL2<\/a>) technology involved in the R100 rollout programme, but a recent funding boost from the UK Government’s \u00a35bn Project Gigabit<\/strong><\/a> scheme has since been used to convert more of LOT 2 to FTTP (here<\/a>).<\/p>\n

At this point we come to Andrew Hepburn<\/strong>, who was responsible for Openreach’s original Digital Scotland Superfast Broadband (final report<\/a>) build. After that, he became the operator’s lead negotiator for the R100 procurement and rollout, before later becoming the overall director of fibre build across the UK.<\/p>\n

Andrew, who also sits on the Openreach Scotland Board, originally studied engineering with management at Edinburgh\u2019s Napier University and started out as a graduate in the defence industry, before joining Openreach in 2007 to work on FTTP network design and deployment, then project management. Suffice to say, he knows a lot about what’s involved with delivering such a programme, especially across Scotland.<\/p>\n

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

1. Since last year Openreach (BT<\/a>) has secured all three of the R100 contracts for LOT 1 (North Scotland and the Highlands), LOT 2 (Central Scotland) and LOT 3 (Southern Scotland). The Scottish Government<\/a> has previously stated that the LOT 2 contract aimed to upgrade at least 47,000 premises, while LOT 3 would do 26,000 – both were due to be completed by the end of 2023 (LOT 2) and by summer 2024 (LOT 3).<\/strong><\/p>\n

At the time of writing, we don\u2019t yet have the final details on LOT 1, but the SG has stated that its rollout won\u2019t finish until the end of 2026. However, we\u2019re aware that greater than expected coverage by commercial deployments (not least via Openreach itself) is ever rising and this, as well as other factors, can sometimes result in the number of R100 premises targeted being reduced.<\/strong><\/p>\n

On top of that, we also note the recent agreement to swap some of the hybrid fibre FTTC (VDSL2<\/a>) areas under R100 in LOT 2 for full fibre FTTP as part of the UK Government\u2019s \u00a35bn Project Gigabit programme (LOT 1 also looks as if it might benefit from a similar swap in the near future). Can you tell us, based on the latest data, how many premises in each lot will benefit from the new network and what the FTTC vs FTTP split is for each LOT (either as a % or premises figure)?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

In the South of Scotland the R100 contract build will reach around 20,700 premises and all of them will get ultrafast full fibre, while in Central Scotland we\u2019ll reach around 32,200 premises with at least 95 per cent to be full fibre. Details for the North of Scotland are due to be published online later this summer and we\u2019re working incredibly hard to make sure that as much of that build as possible is full fibre \u2013 more on that soon. We do expect to increase the proportion beyond the 86 per cent that\u2019s already been indicated.<\/p><\/blockquote>\n

2. The Scottish Government<\/a> has already made a bunch of welcome changes (e.g. the 10-year relief on business rates for new fibre) to support the deployment of new FTTP infrastructure. Can you tell us any other areas where you think the SG could make changes that would help Openreach\u2019s deployment?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

Yes, the Scottish Government has been ahead of the game on rates relief and, before this year\u2019s parliamentary elections, the SNP Manifesto outlined their commitment to extend relief to 15 years, which will be good news for all network builders.<\/p>\n

There are a couple of reserved policy areas where more help is needed \u2013 and you won\u2019t be surprised to hear that wayleaves is one of them. There\u2019s a higher density of network on private land in Scotland than elsewhere in the UK, and access remains a daily headache.<\/p>\n

In one community, for example, 20 residents refusing access or not allowing work on their property affects 560 other homes and businesses. For R100 we need roughly one wayleave for every 15 premises \u2013 so that\u2019s 7,000 successful agreements!<\/p>\n

We\u2019d also like to make sure ultrafast full fibre comes as standard in new housebuilding sites in Scotland, in line with changes proposed in England. We understand the Scot Gov plans to match UKG proposals around implementation of \u201cup to a cost cap\u201d through building standards.<\/p>\n

We were also pleased that the SNP Manifesto included a pledge to update planning and building regulations so that digital connectivity is treated as an essential service and is standard in all new housing developments in the future. We\u2019re looking forward to seeing more detail on that.<\/p>\n

More broadly, we\u2019re always keen to explore further opportunities to streamline planning and roadworks policies across Scotland\u2019s local authority areas and roads authorities.<\/p>\n

We don\u2019t want a planned six-year guarantee to be introduced for road reinstatements in Scotland. It will slow down the build and mean thousands of households have to wait longer.<\/p><\/blockquote>\n

3. So far as we\u2019re aware, the R100 contract has only ever been expressed as being funded by investment from public sources, which is how they got to the \u00a3579m figure. Are BT<\/a> Group themselves putting any private investment toward the contract (how much?) and if not, why not, given that BT\/Openreach should benefit from the extra coverage?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

Yes, we are investing around \u00a350m in the R100 programme.<\/p>\n

The public intervention level is significantly higher than it was in the Digital Scotland programme, in which we invested \u00a3146 million, because the economics are much more challenging. We\u2019ll also be responsible for the long-term maintenance of the new network once the contract is completed.<\/p>\n

At the same time, we\u2019re investing hundreds of millions of pounds more in commercial full fibre deployment which will reach around 300 Scottish cities, towns and villages. And our commitment in more than 220 Scottish locations in the hard-to-reach \u2018final third\u2019 gives more clarity as to where public sector intervention will be required.<\/p>\n

(FYI but would need to be clarified by the Governments, the total public sector funding is currently c. \u00a3604.5m – \u00a3579m from the Scottish Government and \u00a325.5m from the UK Government (which includes the original \u00a321m and an additional \u00a34.5m announced to convert R100 premises from FTTC to FTTP in Central Scotland. Further additional funding may be added.)<\/p><\/blockquote>\n

4. Scotland is a country that is notorious for having some exceptionally challenging and remote rural terrain, as well as various island communities. What do you expect to be some of the hardest or most challenging parts of the R100 deployment to achieve and how will Openreach overcome them?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

All the R100 premises are in the final five per cent of Scotland, so they\u2019re already the hardest of the hard-to-reach. They\u2019re also incredibly dispersed, and we\u2019ll need huge amounts of cabling and civils works to reach them, working in what can be fairly inhospitable year-round weather. We need to build to lots of farms and little cottages \u2013 for example in an early build in the South of Scotland, more than 20 per cent of the premises were farms.<\/p>\n

Travel and getting people and equipment to the places we need them is another logistical challenge. One impact of the pandemic is that demand for staycations in remote and rural Scotland has made finding accommodation for our teams of network-builders even harder than usual. We also need space on ferries to take diggers and large machines to islands like Lismore and Fair Isle so we\u2019re looking at chartering boats and helicopters where they\u2019re the only answer.<\/p>\n

Another challenge is poles. They might not be suitable for certain areas due to sensitive landscapes and high winds, while anchoring poles and burying duct in rock isn\u2019t easy! One way around the duct issue is potentially narrow trenching, and we\u2019ll make use of all the tools in our arsenal to get around any obstacles. We have a strong focus on innovation and we\u2019re continually working with industry to adopt new techniques.<\/p>\n

The subsea part of R100 is also a big, logistically tough project in its own right \u2013 building new routes to 15 islands, negotiating a path through waters strewn with seabed hazards like wartime ordnance and sunken submarines. It\u2019s a fascinating project requiring a lot of expertise from our fantastic subsea colleagues and partners like Global Marine and Fugro.<\/p>\n

And then of course there\u2019s always the wayleaves hurdle \u2013 all those poles tucked away in back gardens and the many private roads we need to negotiate in the north. It\u2019ll certainly keep us busy.<\/p><\/blockquote>\n

5. Somewhat following on from the above question, are there any particular deployment methods or machines that you expect may see greater use in Scotland than other parts of the UK and why?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

Mole ploughs will be a mainstay for us \u2013 we\u2019ve used them throughout the successful Digital Scotland Superfast Broadband build and that will continue as they offer a fast and cost effective way to get new duct into soft verges and fields where there\u2019s no space at the side of the road. We\u2019re using a mini, remote-controlled mole plough to reach tight spaces.<\/p>\n

Subsea surveys are already under way in the North for the huge subsea build next summer and some of the sea and shore survey work is being done by plane using LiDAR (light detection and ranging) technology. It\u2019s like radar but uses laser rather than a radio signal and can penetrate both water and land. We\u2019re using it to examine the potential landing points of all routes and end-to-end for some of the shorter routes. Infrared isn\u2019t affected by cloud and other atmospheric conditions. It adds an additional layer to more traditional data gathering through beach geo-mapping and depth measurements.<\/p><\/blockquote>\n

6. What are Openreach\u2019s thoughts on the potential for the \u00a35bn Project Gigabit programme to benefit Scotland and fill any remaining gaps, which we assume will attract bids from the BT Group?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

R100 is a \u2018superfast\u2019 project, so it\u2019s focused on the last few per cent of places that don\u2019t already have a 30Mbps service \u2013 albeit the majority will now move straight to gigabit-capable full fibre infrastructure. However, building full fibre everywhere will be tough in Scotland because of the landscape and cost of reaching very dispersed communities. There will need to be a fast, effective plan for any premises not covered by existing programmes.<\/p>\n

It was good to see \u00a34.5m funding from the UK Government to flip some R100 premises from FTTC to FTTP in Central Scotland, with ongoing dialogue in relation to the North. Beyond that, it\u2019s primarily a question for the UK and Scottish Governments, but we are ready to look at procurement options. We have a strong track record on subsidised projects and we\u2019re already doing more than 6m of \u2018hard to reach\u2019 prems under our own steam, UK wide\u2026<\/p><\/blockquote>\n

Please flick over to page 2 for the final part of this interview..<\/p>\n

<\/p>\n

7. At the time of writing, there are around 90 alternative network providers that are building gigabit-capable fibre networks for consumers across the UK, including several that operate specifically in Scotland. How does Openreach approach such competition, particularly in remote rural areas, where viable economic models are much harder to achieve. Do you generally avoid them, or is it better to try and directly compete via overbuild?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

In honesty, we see very little investment by alternative network providers, including the bigger builders, in much of rural and remote Scotland because it\u2019s so difficult to make the numbers add up. So there\u2019s limited scope for extensive overbuild in those parts of Scotland where we\u2019re going to invest as part of our balanced build. With smaller alt-nets, the fact that we\u2019ve extended our backhaul capabilities means they have access to higher bandwidth to offer their own services and obviously our poles and ducts are open for business.<\/p>\n

There will be occasions where rural residents have access to more than one network \u2013 and that means more choice and more options, more in line with urban areas \u2013 which is great. And of course we\u2019ve announced c.300 locations across Scotland where we\u2019re going to build, which provides more clarity and certainty for everyone.<\/p><\/blockquote>\n

8. Speaking of gigabit networks and the eventual withdrawal of copper lines, which reflects a new migration process that starts once an exchange area reaches 75% coverage by FTTP. Even after R100 and Project Gigabit have completed, it seems likely that there might still be a few very remote areas that can only connect via copper lines.<\/strong><\/p>\n

Will Openreach commit to continuing to serve these areas until FTTP arrives (if ever), or does there come a point where maintaining the old copper lines for such few premises is no longer viable? If so, what will happen in such areas?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

The availability of copper products (LLU-MPF and SOTAP) won\u2019t be affected by the withdrawal of WLR products and closure of the PSTN at the end of 2025. These will continue to provide access for customers outside our fibre coverage areas.<\/p>\n

In stop sell exchange areas, premises enabled for full fibre will only be able to order a full fibre product from the point of stop sell (ie when 75% of an exchange has coverage), though there\u2019s an exception for FTTC-based 40\/10 products. Any premises not enabled for full fibre can continue to order copper-based products either until it becomes enabled for full fibre or, in the case of WLR products, until the national stop sell (September 2023) is triggered.<\/p>\n

Regarding copper product withdrawal in these exchange areas, we\u2019re working with Ofcom<\/a> to determine at what point regulation will move from copper-based products to fibre-based products \u2013 which is likely to be based on fibre coverage and take-up triggers. Ofcom<\/a> will hold further consultations on this.<\/p><\/blockquote>\n

9. Speaking of very remote rural areas, the BT Group recently signed an agreement with OneWeb<\/a> to explore how their constellation of Low Earth Orbit (LEO) satellites could be used to help deliver faster broadband speeds into such communities.<\/strong><\/p>\n

We\u2019re aware that there could be a number of different deployment scenarios for this, such as a satellite<\/a> fed wireless (WiFi<\/a> etc.) style network, or providing backhaul for FTTC\/P connectivity etc. What do you think is the most feasible approach when it comes to harnessing OneWeb<\/a>\u2019s platform for broadband delivery into a very remote rural community in Scotland, or should the focus be fibre?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

We\u2019re massive advocates of fibre first wherever it\u2019s practically and economically viable, but we\u2019ve always been clear that the challenges in some parts of Scotland are so significant that alternatives may need to be part of the answer.<\/p>\n

We\u2019re continually looking at new technologies that can help us go further and faster. We think LEO-sats have good potential as part of the innovation portfolio \u2013 particularly, for example, for useful applications like emergency services in remote glens where 4\/5G<\/a> isn\u2019t an option \u2013 and we\u2019ll be exploring this in more detail\u2026 watch this space!<\/p><\/blockquote>\n

10. Before concluding, I wanted to touch on the endlessly complicated issue of wayleaves and Physical Infrastructure Access (PIA) in Scotland. Some alternative network (altnet) providers, such as CityFibre<\/a>, have previously noted that many of Openreach\u2019s PIA assets (poles etc.) in Scotland are located on private land. As a result, altnets would require a wayleave of their own to access that infrastructure (i.e. essentially, multiple wayleaves to harness the same infrastructure, which is not an ideal solution and discourages use of PIA).<\/strong><\/p>\n

Realistically, we recognise that this may not be within Openreach\u2019s power to fully resolve itself (legal issues), but I wonder if there had been any progress made on finding a solution to this in order to help expand FTTP coverage north of the border?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

PIA is working well and uptake is continuing to grow significantly, although we\u2019re always looking to improve the service. The interaction between wayleaves and PIA is a complex, law of the land issue. It\u2019s important to be clear these are not our rights to give, but those of the owner of the private land. Like Openreach already does, all network operators need to work with landowners to find a way forward.<\/p><\/blockquote>\n

11. Finally, over the past couple of years there has been a lot of concern about a lack of skilled labour (experienced fibre engineers) in the UK market, which hasn\u2019t been helped by Brexit, COVID-19 or the rise in competitive network deployments – all seeking to rollout FTTP ever deeper into the market.<\/strong><\/p>\n

Openreach perhaps understands this challenge better than most as you\u2019re obviously home to a huge in-house engineering team, as well as working with various contractors. Have you witnessed any improvements on this front or does it remain a problem, and if so, what more needs to change in order to resolve it?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

Demand remains high for skilled labour and there\u2019s plenty of competition for people, so it\u2019s definitely a good time to be in this line of work! As the biggest network provider with the most ambitious build plans, we offer our build partners steady, sustainable work and revenue streams for the next several years.<\/p>\n

Around 700 people are working on our Scottish full fibre build in the supply chain currently, and our Scotland build partners \u2013 Morrison Telecom Services (MTS), Kier Utilities and KN Circet \u2013 are still growing.<\/p>\n

We\u2019ve invested hugely in training centres, including \u00a3500,000 in Scotland, as well as developing award-winning virtual training over the last few months, so we can skill up the next generation of fibre engineers ready for the future.<\/p>\n

Openreach offers trainees a fantastic, long term career path so, despite demand from elsewhere in the market, we still receive around 10 Scottish applications for every job we need to fill.<\/p><\/blockquote>\n

12. Anything else you\u2019d like to add?<\/strong><\/p>\n

Andrew’s Answer:<\/u><\/p>\n

It\u2019s good to get the chance to talk about Scotland and the specific engineering and practical challenges posed by the terrain. It\u2019s easy to forget the great strides the nation has made, with 95 per cent of households and businesses able to get a superfast service today, and we\u2019re committed to extending full fibre as widely as possible.<\/p>\n

It is absolutely vital that people adopt and move to the fibre services \u2013 both FTTC and FTTP \u2013 that are available to support Scotland\u2019s digital journey. Better connectivity enables big societal shifts like smart cities, the advancement of online public services, IoT and other incubating innovations in the future.<\/p>\n

R100 is a very complex and hugely important part of what I need to deliver for Scotland and the UK. It\u2019s close to my heart, as it will bring fantastic connectivity to those on the periphery who, for all the reasons discussed above, have had to wait the longest \u2013 and who, arguably, can potentially benefit most.<\/p>\n

Full fibre provides a social and economic boost which has the potential to address big issues like depopulation and help Scotland recover from the pandemic and ultimately, make it a better place to live and work where people have equal opportunities regardless of location. If that isn\u2019t a great reason to get to work in the morning, I don\u2019t know what is.<\/p><\/blockquote>\n

We’d just like to thank Andrew for taking the time to respond to our questions and being so informative in his replies. We look forward to monitoring R100’s progress over the next few years.<\/p>\n","protected":false},"excerpt":{"rendered":"

Openreach’s (BT) Director of fibre build for the UK, Andrew Hepburn, has today helped ISPreview.co.uk to understand some of the challenges they face in extending Fibre-to-the-Premises (FTTP) broadband across rural parts of Scotland under the \u00a3600m Reaching 100% (R100) project and how they’re overcoming them.<\/p>\n","protected":false},"author":1,"featured_media":28073,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[2716,1],"tags":[474,471,55,56,69,38,1997,89],"class_list":["post-28071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interviews","category-uk_isp_news","tag-bt","tag-bduk","tag-fttc","tag-fttp","tag-bt-openreach","tag-politics","tag-uk-gigabit-programme","tag-scotland"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach's Director of Fibre Build Talks Scotland's R100 Rollout - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Openreach's (BT) Director of fibre build for the UK, Andrew Hepburn, has today helped ISPreview.co.uk to understand some of the challenges they face in\" \/>\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\/2021\/08\/openreachs-director-of-fibre-build-talks-scotlands-r100-rollout.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/08\/openreachs-director-of-fibre-build-talks-scotlands-r100-rollout.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach's Director of Fibre Build Talks Scotland's R100 Rollout - 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