{"id":4214,"date":"2013-10-07T06:40:55","date_gmt":"2013-10-07T05:40:55","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=4214"},"modified":"2013-10-07T06:43:19","modified_gmt":"2013-10-07T05:43:19","slug":"uk-isp-ab-internet-warns-voa-wireless-tax-pure-fibre-focus","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2013\/10\/uk-isp-ab-internet-warns-voa-wireless-tax-pure-fibre-focus.html","title":{"rendered":"ISP AB Internet Warns Against UK Wireless Tax and a Pure Fibre Optic Focus"},"content":{"rendered":"

AB Internet<\/a>\u00a0has told ISPreview.co.uk, as part of\u00a0our exclusive\u00a0interview, that the Valuation Office Agency’s\u00a0review of how its business rates\u00a0can be applied to fixed wireless networks could result in a “whole segment of society<\/em>” being “digitally marooned<\/em>“. The\u00a0ISP also warned against an “all roads must lead to fibre<\/em>” approach to broadband.<\/p>\n

<\/p>\n

The ISP, which describes itself as a next-generation fixed wireless provider that can offer speeds from 2Mbps to 1Gbps, currently serves 10,000+ users<\/strong> across various parts of the United Kingdom (i.e. Wales, Lincolnshire and parts of Scotland)\u00a0and usually focuses on the\u00a0more challenging\u00a0locations (e.g. rural areas).<\/p>\n

Most recently AB Internet has also been in the news after it won a major new \u00a3300,000\u00a0project<\/strong> to deploy a 50Mbps<\/strong> capable wireless broadband network on the rural East Coast of Lincolnshire<\/strong> (England), which\u00a0has already connected its first customers (here<\/a>).<\/p>\n

On top of that\u00a0they’ve\u00a0now announced plans to expand by offering a new range of fixed line fibre optic and copper based business connectivity services via over 3,500 exchanges<\/strong> across the country. As a result ISPreview.co.uk was keen to learn more about AB Internet’s experience and their perspective on broadband provision in the UK as a smaller wireless ISP. Thankfully AB’s Sales & Marketing Director, Neil Tucker<\/strong>, was happy to help out.<\/p>\n

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

Q1. Earlier this year AB Internet won a competitive tender process, run by Lincolnshire County Council and funded by \u00a3300k from the ERDF (Europe), to help it roll-out a 50Mbps capable superfast broadband service into two rural areas and several villages on the east coast of Lincolnshire in England. Since then the first customers have now gone live. Can you tell us a little more about this project and why it\u2019s needed?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

Lincolnshire County Council was a real trailblazer here. Long before other UK councils, they understood that if they were to help successfully deliver superfast services to the most challenging parts of the county (the second largest in the UK) they would need to champion a creative solution. Subsequently LCC published a tender in the Spring of 2012, for the creation of a Superfast Pilot Project. Bidders were asked to offer Superfast Network proposals for any one of three \u2018intervention areas\u2019 that were already known to have significant connectivity problems.<\/em><\/p>\n

AB Internet proposed an extension of its existing national Fixed Wireless Access network, to include not just one, but two of the areas of special interest. These are the areas that surround Ingoldmells and Boston in Eastern Lincolnshire and will have ubiquitous coverage of our Essential Broadband Service, from 2MB to 50MB<\/em><\/p>\n

Of the 10 or so proposed sites, we have currently rolled out 3. One of these is possibly the most unusual location we have ever used for a Point of Presence, it\u2019s on top of a roller coaster! Not only does this ride at Fantasy Island give a commanding view of the surrounding area, but in the attraction, we have a very supportive local customer and business partner, who until this point only had 0.5MB, so for them, a 50MB service is transforming their business.<\/em><\/p>\n

The feedback from our new customers is simply awesome and it\u2019s really fantastic for us to be part of something that literally changes lives. Overnight, people have gone from<\/em><\/p><\/blockquote>\n

<\/p>\n

Q2. Securing public funding for wireless based networks often appears to be an extremely challenging proposition, especially given how the Broadband Delivery UK<\/a> and related EU frameworks tend to prefer fixed line solutions. <\/strong><\/p>\n

How were ABInternet able to do it and do you have any tips for other wireless providers that might seek a similar approach?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

It is true that even now, the powers that be do seem to focus very heavily on deployment on fixed line bearers, which can be frustrating for a company whose 50MB superfast wireless services are already being used by customers.<\/em><\/p>\n

Indeed, it was only in the very early part of this year that the EU adjusted its view on \u2018Wireless\u2019 as a superfast bearer. Up until January, wireless was not considered to be capable of delivering a superfast service. It is now considered (and legislated as such) to be an effective mechanism for the delivery of an interim superfast solution.<\/em><\/p>\n

This is not to say that all wireless based services are a cost effective or even appropriate method of delivering superfast services to remote areas. Cellular based solutions, WiFi<\/a> (in any other capacity than a home router) and satellite<\/a> technologies do sometimes get thrown into the same wireless \u2018pot.\u2019 So we need to be clear that Wireless to us means Fixed Wireless Access both in Point To Point or Point to Multipoint configuration.<\/em><\/p>\n

In securing public funding for the Lincolnshire Project, we were fortunate to have a number of critical factors coming together at once:<\/em><\/p>\n

1. The change of the legislative environment to support wireless at the European level.<\/em>
\n 2. In Lincolnshire County Council, having a forward thinking group of people who understood the benefit of and championed a creative solution<\/em>
\n 3. AB Internet having a solid provenance of already delivering, albeit elsewhere, exactly what was being asked for. This gave our solution credibility.<\/em><\/p><\/blockquote>\n

Wireless operators can become very blinkered in their thinking. I can say that with complete comfort, because sometimes we are all guilty as charged. But, for success, remember that the best solution is often a hybrid of bearers; focus on where you deliver value (in commercial as well as geographic terms) and let the network be driven my the market rather than by the technology.<\/em><\/p><\/blockquote>\n

Q3. The Valuation Office Agency (VOA) has begun a review of how its business rates (tax) can be applied to fixed wireless networks, which could result in a clarification of their existing guidelines that might potentially force some wireless ISPs to pay more than they do today. What are your thoughts on the current situation and this latest development?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

It\u2019s all a question of scale. It\u2019s probably fair to say that the VOA is only looking for some kind of \u2018equitable balance\u2019 here to mirror business rates that are already levied on large commercial masts. It\u2019s also fair to say that in times of austerity, its easy to understand (and support) the right to seek additional revenues.<\/em><\/p>\n

However, how could you elegantly and comprehensively define such a policy and make it equitable, balanced or even work?<\/em><\/p>\n

– Does the VOA charge at the same rate as the large operators pay for aperture rental on commercial sites? This might be tenable for companies that can expect to derive significant revenues from such a mast, but in the case of many small WISP\u2019s, they will simply fold, as the sustainable business model would be mortally wounded.<\/em><\/p>\n

– Does the VOA charge on a \u2018Pounds-per-PoP\u2019 basis? In a wide area deployment, often, the two or three most remote customers are subsidised by the connections on the more populous PoP\u2019s. Charging like this would penalise the lightly loaded PoP\u2019s to the point where the WISP could say, \u201c\u2026you know what, let\u2019s forget about the most remote people.\u201d Widening the digital divide and undermining the fundamental power of wireless \u2013 remote reach.<\/em><\/p>\n

– How is it policed? Where does it stop? (does every lamp-post with a commercial WiFi<\/a> access point on it attract a charge?)<\/em><\/p><\/blockquote>\n

The VOA would be wise to look very carefully at the ethos behind licensing of the very technology that WISP\u2019s love to use, namely, equipment that operates in the 5 GHz spectrum. To stimulate business growth in the UK, the licensing authorities pursued a \u2018light licence\u2019 policy of a token annual sum, facilitating the growth of a whole new sector and providing the means for cost effective connectivity in the most remote areas.<\/em><\/p>\n

It is widely accepted now, even in the halls and corridors of the EU that wireless represents an extremely cost effective way of bringing superfast broadband services to the digitally disadvantaged in the most remote parts of the UK. A heavy handed approach or clumsy application of some new edict by the VOA will only result in one thing; the end user losing out and a whole segment of society being digitally \u2018marooned\u2019 for many years to come.<\/em><\/p><\/blockquote>\n

Q4. The government\u2019s Broadband Delivery UK<\/a> office recently confirmed that its original target, which aimed to make fixed line superfast broadband (25-30Mbps+) services available to 90% of the country by the end of 2015, would be missed; albeit only by a couple of percentage points.<\/strong><\/p>\n

General administrative slowness, legal challenges from BT<\/a>\/Virgin Media<\/a> and complex competition delays with EU approval are often listed as being among the key reasons for this hold-up. What are your thoughts on these delays and how significant are they for the overall project?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

In our experience, it\u2019s fair to say that all of the above have played a part in the delays. However, it\u2019s also true that BDUK face a very difficult job. Whichever way they turn, they have to consider potential legal challenges from all corners, whether from the incumbent, the EU, the local council or the Alternative Service provider. In this kind of environment; it\u2019s easy to see why progress has been \u2018considered\u2019 to say the least.<\/em><\/p>\n

But its also fair that in having gained all this experience, BDUK should be able to move forward with speed in the next phase of the project.<\/em><\/p><\/blockquote>\n

Q5. The government has also revised its target and now aims to reach 95% of the country with a fixed line superfast broadband service by 2017 (99% by 2018 when mobile broadband and other wireless services are considered). Meanwhile Europe\u2019s Digital Agenda still wants 100% to have access to superfast connectivity by 2020. Do you think the UK\u2019s new target will be achievable or is it just a pre-election gimmick?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

It\u2019s a bit unfair to say that it\u2019s a pre-election gimmick; setting goals is an essential way of driving an initiative and measuring its success. In this sense the \u2018somewhere between 95% and 99%\u2019 approach that the UK government is taking is actually quite pragmatic. This, coupled with the increasing weight that wireless carries within government, actually makes for a credible figure, so long as the government chooses to seize the opportunity of engaging with Alternative Service Providers.<\/em><\/p>\n

Delivering to that \u2018last 1%\u2019 via a FTTC<\/a> solution is potentially going to cost as much as the whole of the rest of the project put together, and you could argue with some justification, that the virtually non-existent demand couldn\u2019t justify such expenditure. So in some senses, the UK\u2019s position is probably more realistic than the EU and its certainly a strong argument for the adoption of a Wireless solution for the most challenging areas.<\/em><\/p><\/blockquote>\n

<\/p>\n

Q6. The government was recently forced by EU competition concerns to scrap the broadband infrastructure aspect of its \u00a3150m Urban Broadband Fund for 22 cities around the UK. Instead this has been replaced by a voucher scheme that helps businesses connect to superfast broadband by covering the installation cost. <\/strong><\/p>\n

Do you think this is the best use for that money?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

There\u2019s always an argument to say that money can be spent better elsewhere, but if we fail to invest in leading edge connectivity, where would we sit on the national stage in 10 years time? Failure to invest in our cities would be catastrophic.<\/em><\/p>\n

As for the voucher scheme, frankly, it\u2019s something pretty reasonable that has come out of this whole troubled process. Think of it this way; it\u2019s analogous to the Welsh Government<\/a>\u2019s successful Broadband Support Scheme, where a fund of up to \u00a31000 per house was made available to get connected. This was great for the small WISP\u2019s who could now compete on equal terms with the big players and more importantly, the end user had more choice than just Hobson\u2019s\u2026<\/em><\/p>\n

So, in the same way, the voucher scheme will give businesses choice in their own destiny, fund the growth of a super connected access layer for future companies to benefit from and will encourage a whole new competitive environment.<\/em><\/p><\/blockquote>\n

Q7. So far much of the approach to deploying faster broadband in the UK has focused on hybrid-fibre services like BT<\/a>\u2019s FTTC<\/a> (VDSL2<\/a>) and improving Virgin Media<\/a>\u2019s cable (DOCSIS<\/a>\/EuroDOCSIS) platform. <\/strong><\/p>\n

Many regard the above as being the most affordable and quickest way to deploy faster connectivity (i.e. reusing some of the existing infrastructure). Future advancements like G.Fast<\/a>, Vectoring, FTTdp and DOCSIS3.1 could also extend the performance even further.<\/strong><\/p>\n

But others maintain that we should instead be looking further towards the future, with an eye on longer term investment, by bringing true fibre optic lines to every home and business (FTTH<\/a>\/P). What are your thoughts on this debate and does it unfairly overlook the potential contribution of wireless providers?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

This pervasive attitude of \u2018all roads must lead to fibre\u2019 does sometimes amaze and frustrate me in equal measure, especially since it\u2019s at the cost of alternative technologies and so, to the disadvantage of the end user.<\/em><\/p>\n

The customer doesn\u2019t generally know (or care) how the service comes in through the front door and the singular agenda of effecting it solely through fibre, is only in the best interests of the incumbent and of trenching tool manufacturers! So we have to be realistic and realise that on a national scale, the future has got to be a hybrid of all of the above.<\/em><\/p>\n

Unfortunately, it is quite common for governmental decision makers to fall into the same trap and consider that wireless only serves the population best as \u2018\u2026an interim measure.\u2019 They should perhaps engage with WISP\u2019s and hardware manufacturers who are already deploying superfast services and are currently trialling the next generation of Point-to-Multipoint Wireless equipment; capable of delivering multi-gigabit speeds to the customer premises.<\/em><\/p>\n

And as for the \u2018questionable\u2019 longevity of a wireless broadband service, well, that\u2019s a bit like saying \u201cTV antennas, they\u2019ll never last\u2026\u201d.<\/em><\/p><\/blockquote>\n

Q8. One of the biggest problems for smaller rural ISPs (altnets) this year has been the struggle to get funding grants released from the \u00a320m Rural Community Broadband Fund, which is partly because BT<\/a> and local authorities have preferred not to reveal which areas they intend to cover as part of the BDUK scheme (at least not all at once).<\/strong><\/p>\n

Thankfully pressure from the central government has nudged local authorities to engage on this issue. Do you think this will be the end of the problem and, given that the EU still expects 100% superfast coverage by 2020, what more could be done to help the final 5-10%?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

In theory, it will help the issue, but it will certainly not be an end to the matter. Who\u2019s to say that there won\u2019t be challenges by the incumbent when it comes to (a) publishing what could be deemed to be commercially sensitive information (which does ignore the fact that the public purse contributed to it) and (b) Challenging the decisions over what constitutes a last 5% intervention area, where there may be some overlap from phase one areas and if there are any associated state aid issues.<\/em><\/p>\n

If one word could sum up the best way for local authorities to deal with the last 5%-10% it would be \u2018Robustness\u2019; both in terms of its interaction with the incumbent (who has already done very well out of the first phase!) and also in the way it investigates all possible bearer types as a potential solution for the end goal.<\/em><\/p><\/blockquote>\n

Q9. Finally, what kind of things can we expect from AB Internet in the future?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

Well, of course, we\u2019re continuing to expand our network across the UK, but our real focus over the next few months will be forging ahead on the Lincolnshire Superfast Broadband Pilots Project. This is not solely for commercial reasons, but we really want to create a beacon for Superfast Delivery by wireless; something that will make the national decision makers sit up and say, \u201c\u2026it is possible to have a successful and sustainable superfast wireless broadband network, look what these guys from AB Internet did it in Lincolnshire\u201d<\/em><\/p>\n

And, mirroring my comments above about a hybrid network, I am also pleased to announce that, effective of an agreement that was signed last week, AB Internet is now able to offer a range of fibre and copper based business connectivity services in over 3,500 exchanges across the UK. Adding Fibre and EFM connectivity to our portfolio means we now have an absolutely awesome range of products that can be offered to all corners of the UK.<\/em><\/p>\n

It\u2019s a really exciting time to be part of the AB Team.<\/em><\/p><\/blockquote>\n

Thanks to Neil Tucker for kindly taking time out to answer our questions.<\/p>\n

End.<\/p>\n","protected":false},"excerpt":{"rendered":"

AB Internet\u00a0has told ISPreview.co.uk, as part of\u00a0our exclusive\u00a0interview, that the Valuation Office Agency’s\u00a0review of how its business rates\u00a0can be applied to fixed wireless networks could result in a “whole segment of society” being “digitally marooned“. The\u00a0ISP also warned against an “all roads must lead to fibre” approach to broadband.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[6],"tags":[471,38,476],"class_list":["post-4214","post","type-post","status-publish","format-standard","hentry","category-editorial_article","tag-bduk","tag-politics","tag-wifi"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nISP AB Internet Warns Against UK Wireless Tax and a Pure Fibre Optic Focus - ISPreview UK<\/title>\n<meta name=\"description\" content=\"AB Internet\u00a0has told ISPreview.co.uk, as part of\u00a0our exclusive\u00a0interview, that the Valuation Office Agency's\u00a0review of how its business rates\u00a0can be\" \/>\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\/2013\/10\/uk-isp-ab-internet-warns-voa-wireless-tax-pure-fibre-focus.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2013\/10\/uk-isp-ab-internet-warns-voa-wireless-tax-pure-fibre-focus.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ISP AB Internet Warns Against UK Wireless Tax and a Pure Fibre Optic Focus - 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