{"id":37005,"date":"2024-05-25T00:01:13","date_gmt":"2024-05-24T23:01:13","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=37005"},"modified":"2024-05-16T11:38:34","modified_gmt":"2024-05-16T10:38:34","slug":"vorboss-ceo-tim-creswick-talks-ofcom-regulation-ai-and-broadband-vouchers","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/05\/vorboss-ceo-tim-creswick-talks-ofcom-regulation-ai-and-broadband-vouchers.html","title":{"rendered":"Vorboss CEO Tim Creswick Talks Ofcom Regulation, AI and Broadband Vouchers"},"content":{"rendered":"

In a new interview the CEO of London-focused business ISP Vorboss<\/a>, Timothy Creswick, has spoken to ISPreview about the progress they’ve made with their 100Gbps full fibre network roll-out, as well as their future plans, market consolidation, gigabit broadband vouchers for urban areas and Ofcom<\/a>’s market regulation.<\/p>\n

Just to recap. Vorboss has spent the past four years deploying 500km of their own dedicated point-to-point fibre across Central London (covering most of zones 1 and 2), which we’re told is enough to potentially connect all commercial buildings in the area to their direct internet access and Ethernet network.<\/p>\n

NOTE:<\/strong> Vorboss is backed by an investment of \u00a3300m from Fern Trading, which has separately consolidated several other alternative networks (Giganet, Jurassic Fibre and Swish Fibre into AllPoints Fibre).<\/div>\n

The goal of this new infrastructure has been to make speeds of up to an eye-watering 100Gbps<\/strong> (Gigabits per second) both available to local businesses in the city centre and at an affordable price. “In the not too distant future, a 100Gbps line will be the norm<\/em>” for businesses that don’t want to share capacity, said Tim, while discussing what firms will need a bit further down the line.<\/p>\n

Naturally, there are always those who might view such speeds as being unnecessary, but such views quickly go out of date as demand moves ever forward – particularly as this is for business connectivity and Vorboss has no plans to cater for consumers.<\/p>\n

“I\u2019m a believer in Nielsen\u2019s law of internet bandwidth \u2013 put simply, that high-end bandwidth need grows by 50% per year … [and AI applications, including remote computing in general, are a huge driver for that.] The latest GPT-4o update is a good example of why bandwidth will only increase<\/em>,” added Tim.<\/p>\n

The deployment phase of this new network is now largely complete, which has resulted in the operator shifting their teams to focus on customer connections. “Demand for our service is significant, and growing<\/em>,” said Tim, although they’ve yet to commit to a future expansion. “We might expand outside of central London in time, but that will only happen where we\u2019re confident that customers need our service<\/em>.”<\/p>\n

Tim also shared some rare industry praise for the current direction being taken by the UK telecoms regulator, Ofcom<\/a>, which he views as “working well<\/em>” and helping to have “cultivated billions in private investment and injected competition into a market structure historically dominated by an incumbent<\/em>.”<\/p>\n

Ofcom<\/a> recently fired the starting gun on their next major Telecoms Access Review 2026<\/strong> (here<\/a>), which will look to make changes that promote competition and investment in gigabit broadband and business connectivity. Tim said he wants to see the regulator continue with its efforts to “protect the competition that is emerging<\/em>” and cautions them against softening their controls of BT<\/a> and Openreach<\/a>, due to the risk of the incumbent “leveraging [their] dominance to deter further investment in its competitors<\/em>.” Typically, as markets become more competitive, then regulatory controls on incumbents may soften.<\/p>\n

The full interview below also delves into a number of other areas, such as whether or not the Government (BDUK) are right to extend their Gigabit Broadband Voucher Scheme<\/a> (GBVS) to include homes and businesses in poorly served urban areas.<\/p>\n

The GBVS currently tends to primarily focus on poorly serve rural communities, although Tim cautions against extending this to urban areas because “subsidy interventions can have unintended consequences and can crowd out private investment<\/em>.” BDUK are currently experimenting with just such a change (here<\/a>), although it will initially be focused on areas that commercial investment has generally chosen to avoid.<\/p>\n

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

1. First things first, I’ve always wanted to know where that name ‘Vorboss’ comes from? It’s certainly fairly original, at least so far as network operators go.<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

I was a one-man-band consultancy doing software design for local businesses in Exeter back in 2006, and thinking what I should call the company. I wanted something unique. I had hundreds of words in my head and kept coming back to Vorboss \u2013 it sounded different and intriguing, and there were zero hits for it on the internet.<\/p><\/blockquote>\n

2. Can you give us a nice progress update on your network build, coverage and whether you’re seeing the sort of take-up desired for this kind of development to be sustainable?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

Our network is live across central London, covering most of zones 1 and 2. We\u2019re very targeted at where there\u2019s clear customer demand for high capacity, reliable, dedicated bandwidth. In that sense we\u2019re different to many other \u2018altnets\u2019 \u2013 we don\u2019t have any appetite for network expansion just for the sake of it.<\/p>\n

Our technicians are increasingly focused on customer connections, rather than network build.<\/p>\n

Demand for our service is significant, and growing. I see two main drivers for this \u2013 reliability and bandwidth. On reliability, we see a lot of demand from business sectors that are particularly sensitive to outages and so prioritise resilience, dedicated bandwidth and time to fix faults should they ever occur.<\/p>\n

And bandwidth demand continues to grow. The majority of London businesses are on 1Gbps or less today, and as their need grows \u2013 driven by cloud adoption or increased reliance on AI, for instance \u2013 they\u2019ll move to 10Gbps plans, and beyond.<\/p>\n

The confidence in that future was the basis for building this network, and it\u2019s materialising. We\u2019re investing in 60 new account manager positions this year to handle the increasing demand for our services.<\/p><\/blockquote>\n

3. Clearly, central London has so far been the key focus for Vorboss, but can you tell us anything about your future expansion plans and whether the network will grow outside those central areas, such as into other parts of London or perhaps even different cities?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

London is our focus and it\u2019s where we see the demand for the type of network architecture and service we deliver. We might expand outside of central London in time, but that will only happen where we\u2019re confident that customers need our service. Critically though, we will never sacrifice the service we offer.<\/p>\n

Our customers choose us because of how we build and support the network. We don\u2019t use contractors, so we have full control over network quality. The customer service function is in-house and sits with the networks team, so the customer is always in touch with the people who operate the network. And our fleet is positioned so that we can be on site anywhere on our network within minutes. We will only expand the network if we can maintain this approach to quality and resilience. And for customers with additional offices outside of London, we also provide ISP services over other networks, in the UK and globally.<\/p><\/blockquote>\n

4. Vorboss is backed by Fern Trading, which also supports other full fibre operators that are currently being consolidated into a single wholesale network – Giganet, Jurassic Fibre, Swish Fibre and AllPoints Fibre. Given that those operators tend to service business customers too, as well as homes, then wouldn’t there have been some logic in including Vorboss into that consolidation, or is it just too much of a different focus and network design?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

We are a very different business and network to the others in the Fern family. At a high level, the rest of the group is building and selling PON-based broadband connectivity to consumers and small businesses. That\u2019s a very different architecture and product \u2013 and consequently a different business model. Keeping Vorboss separate from the consolidation into AllPoints Fibre makes sense.<\/p><\/blockquote>\n

5. Speaking of consumer connectivity. You’re obviously very firmly focused on the business connectivity side of the market, but is there any thought or ambition to perhaps expanding out to serve consumers (homes) too – either directly or via some other approach?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

No. It\u2019s possible to imagine a world where consumers might require the kind of connectivity we provide, but I don\u2019t think that will be in the short to medium term. We\u2019re specialists in connecting demanding business customers across a wide variety of sectors. That\u2019s what our account management teams, field teams, commercial teams, and the network itself have all been built for. The shift to a consumer approach is too big, and wouldn\u2019t deliver a return on the changes needed.<\/p><\/blockquote>\n

The interview continues on Page 2..<\/p>\n

<\/p>\n

6. One of the changes taking place in the current market is the merging landscapes of FTTP<\/a> style Passive Optical Networks (PON) and Leased Lines. In the past if you wanted a high capacity and dedicated fibre optic line then the only option was an Ethernet (leased line) solution, but FTTP<\/a> makes multi-gigabit speeds much more accessible and narrows the gap between the two approaches. Not to mention middle ground solutions like Ethernet over FTTP<\/a> (EoFTTP).<\/strong><\/p>\n

Naturally, Vorboss has a clear interest in this area, and I wondered what your views are on how this may develop over the coming years?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

We\u2019re watching that technology evolution, but there\u2019s little doubt for me that PON cannot match the same levels of resilience and service reliability we\u2019re capable of with a Direct Internet architecture.<\/p>\n

I think the architectures remain materially different.<\/p>\n

Headline download speeds might be similar in theory, but we\u2019ve seen both Openreach<\/a> and Nexfibre<\/a> publicly talking down their capability to deliver 25G and 50G PON at scale in any reasonable timeframe.<\/p>\n

We are seeing increasing demand for seamless and highly reliable connectivity, especially at peak times. Direct Internet gives a much higher resilience to the overall network asset. In the not too distant future, a 100Gbps line will be the norm \u2013 and businesses that need that connectivity won\u2019t want to be sharing it.<\/p><\/blockquote>\n

7. At present, it seems as if you can’t turn a news page without somebody mentioning Artificial Intelligence (AI), as well as other advancements like quantum cryptography. What are your views on how you see these developments influencing your own network, particularly in terms of bandwidth demands and network management?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

I\u2019m a believer in Nielsen\u2019s law of internet bandwidth \u2013 put simply, that high-end bandwidth need grows by 50% per year. AI applications require a huge amount of data in order to give a usable experience, especially when the use case is real time.<\/p>\n

The latest GPT-4o update is a good example of why bandwidth will only increase, with more focus on analytics of images, video and voice, including real-time translation.<\/p>\n

But bandwidth growth is less about AI specifically, and more about the reality that we\u2019re using more remote computing in everything we do \u2013 often not even a conscious choice we make, but rather the result of the way our devices are configured.<\/p>\n

That\u2019s true whether we\u2019re working on a Word document, driving a Tesla, or dictating a voice note to our iPhones.<\/p>\n

We\u2019ve built our network to cater for Nielsen\u2019s law, and we\u2019re confident we can stay ahead of \u2013 and capitalize on \u2013 the demand.<\/p><\/blockquote>\n

8. Ofcom are just starting the process of research for their next major wholesale focused Telecoms Access Review 2026 (TAR), which will cover the 2026 to 2031 period. Such reviews often look at what regulatory changes may be needed to help boost network coverage, investment and competition in both the UK’s full fibre broadband (e.g. FTTP) and business connectivity (e.g. Ethernet \/ Leased Lines) markets.<\/strong><\/p>\n

For example, the last review delivered changes to Openreach<\/a>’s copper line pricing, Dark Fibre Access, new Quality of Service (QoS) targets and regulation of Fibre-to-the-Premises (FTTP) based broadband lines. What kind of core changes would you like to see the regulator make in their next review, and why?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

The approach that Ofcom has taken since the last market review in 2021 is working well; it has cultivated billions in private investment and injected competition into a market structure historically dominated by an incumbent. Ofcom pitched the conclusions of the WFTMR as establishing a 10-year framework. We would then welcome the continuation of the steady and predictable regulatory environment that we currently have, especially given the macro-economic environment of a high cost of capital and low economic growth.<\/p>\n

If Ofcom is to alter anything, I would welcome measures that protect the competition that is emerging, or equip business customers to benefit from it.<\/p>\n

With that in mind, in its TAR statement, Ofcom is right to keep its focus on monitoring BT<\/a> and Openreach\u2019s dominance; the job of creating a truly competitive market is far from done. Despite increasing network-level competition, BT<\/a> Group still holds substantial market share in both consumer and business services. Any softening of regulatory controls risks opening the door to BT leveraging that dominance to deter further investment in its competitors.<\/p>\n

As for what could be done to help customers benefit from increased competition, we have asked Ofcom to consider the extension of its currently consumer-centric fixed line automatic compensation scheme to business connectivity. We\u2019ve commissioned research that has shown that businesses have very little faith in compensation claims, and that compensation overall remains an area of high dissatisfaction for them. The auto-comp scheme has been a success for consumers, pushing service providers to improve quality, while giving customers reassurance that compensation is real and tangible. We think the same benefits would be realised for businesses. It would force an uplift in network performance, and in turn drive a much-needed economic boost. We have shared our research with Ofcom and have since introduced automatic compensation for our own customers.<\/p>\n

We\u2019re actively engaged in other parts of Ofcom\u2019s work, too. We\u2019re a proud member of Ofcom\u2019s Women In Tech initiative, having joined in 2023. More than a third of our technicians are women, and we have ambitious commitments to make that 50\/50 in 2027. Encouraging and welcoming diversity \u2013 be that gender, ethnicity, or socio-economic background \u2013 is an important part of our company culture. Our training academy means we can give people from any background a start in a career in telecoms. And our policies and benefits are designed to help them grow and develop, with a focus on quality at every step.<\/p><\/blockquote>\n

9. One of the big stories of 2023 and 2024 has been the rising cost of network build and the difficulty of attracting fresh investment while interest rates remain high. Many network operators have been impacted by these challenges, which in some cases has resulted in job losses and a slower roll-out, as well as a rise in consolidation between networks.<\/strong><\/p>\n

How has Vorboss been coping with these challenges, and what are your views on the growing drive toward market consolidation?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

I wouldn\u2019t be alone in saying that consolidation in some form is inevitable. But I don\u2019t think this will rapidly reduce the number of operators to a small set of larger players. With the cost of capital so high by comparison to when many networks secured investment, things are going to get difficult for the networks that don\u2019t have the revenue base to recover the cost of capital. Merging two networks with low take up doesn\u2019t solve the problem.<\/p>\n

I should add that the business connectivity market is more mature than WLA\/residential. In our market, channel partners and intermediaries are much more familiar with navigating a multi network landscape. Combining that with a much higher average revenue per customer, enterprise focused networks face different commercial incentives and challenges to the residential altnets. The relationship with the customer and meeting their specific, often bespoke needs is the priority \u2013 and that\u2019s what we\u2019re good at. The far higher number of customers required in a residential altnet model doesn\u2019t gel with that approach. That\u2019s a big part of why we don\u2019t have a mixed residential\/business model.<\/p>\n

Also, I think we\u2019re going to see enterprise demand for higher capacity, reliable and resilient connectivity significantly increase. A lot of network operators aren\u2019t geared up for that today, and capital being harder to secure will only increase the challenge of upgrading network infrastructure to match \u2013 let alone exceed \u2013 demand.<\/p><\/blockquote>\n

10. Some years ago the Government offered a Broadband Connection Voucher scheme that was, unlike the current schemes (that focus on rural properties), also available to businesses in many urban areas to help them upgrade their internet connections. Do you think the re-introduction of something like this might help to tackle some of the slowspots and notspots that can still remain in dense urban areas?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

Whilst it might seem counter-intuitive, I\u2019m against the idea of providing subsidy in areas where there isn\u2019t clear evidence that a commercial solution can\u2019t work. Of course, anything that reduces the cost for customers to buy your service is attractive, but subsidy interventions can have unintended consequences and can crowd out private investment.<\/p>\n

I would much rather see support for businesses in navigating quality of service in their choice of internet provider. In consumer broadband we have Ofcom complaint figures, automatic compensation and annual best tariff notifications. These all help inform customer choice and drive service providers to continually improve. Let\u2019s use the same tools to help business customers, and drive higher standards of business internet.<\/p><\/blockquote>\n

11. Finally, where you do think Vorboss will be in 5 or 10 years time?<\/strong><\/p>\n

Tim said:<\/u><\/p>\n

In five years\u2019 time, London enterprise demand for high capacity internet access will have outstripped what\u2019s offered by the majority of players in the market. At the same time, security, reliability, and quality of service will have become more important to businesses than headline download speeds.<\/p>\n

That\u2019s the future that we\u2019re predicting, and it\u2019s a future that we\u2019ve designed Vorboss to excel in. We will be uniquely placed to meet that demand.<\/p>\n

The network we\u2019ve built is inherently scalable in capacity, so we will be able to evolve our service offering to always be at the cutting edge. We\u2019ll still be focused on connecting London\u2019s business community, and we\u2019ll still be pushing for new standards in connectivity and quality.<\/p><\/blockquote>\n

We’d just like to send our thanks to Timothy for taking time out from his busy schedule to share his thoughts with us on the future of his business and wider market.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a new interview the CEO of London-focused business ISP Vorboss, Timothy Creswick, has spoken to ISPreview about the progress they’ve made with their 100Gbps full fibre network roll-out, as well as their future plans, market consolidation, gigabit broadband vouchers for urban areas and Ofcom’s market regulation.<\/p>\n","protected":false},"author":1,"featured_media":38102,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[2716,1],"tags":[478,52,56],"class_list":["post-37005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interviews","category-uk_isp_news","tag-ethernet","tag-fibre-optic","tag-fttp"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/112498558932848171","error":""},"yoast_head":"\nVorboss CEO Tim Creswick Talks Ofcom Regulation, AI and Broadband Vouchers - ISPreview UK<\/title>\n<meta name=\"description\" content=\"In a new interview the CEO of London-focused business ISP Vorboss, Timothy Creswick, has spoken to ISPreview about the progress they've made with their\" \/>\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\/2024\/05\/vorboss-ceo-tim-creswick-talks-ofcom-regulation-ai-and-broadband-vouchers.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2024\/05\/vorboss-ceo-tim-creswick-talks-ofcom-regulation-ai-and-broadband-vouchers.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vorboss CEO Tim Creswick Talks Ofcom Regulation, AI and Broadband Vouchers - 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