{"id":4216,"date":"2013-11-04T01:50:40","date_gmt":"2013-11-04T00:50:40","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=4216"},"modified":"2013-10-21T07:54:02","modified_gmt":"2013-10-21T06:54:02","slug":"uk-fttp-isp-gigaclear-calls-predictable-useful-bduk-contract","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2013\/11\/uk-fttp-isp-gigaclear-calls-predictable-useful-bduk-contract.html","title":{"rendered":"UK Fibre ISP Gigaclear Calls for More Predictable and Useful BDUK Contract"},"content":{"rendered":"

Gigaclear<\/a>, which specialises in deploying ultrafast 1Gbps capable fibre optic (FTTP<\/a>) networks into rural areas around the United Kingdom, has told ISPreview.co.uk as part of our exclusive interview that the Government needs to create a more “predictable and useful<\/em>” Broadband Delivery UK<\/a> (BDUK) scheme that allows more than just BT<\/a> to bid for contracts.<\/p>\n

<\/p>\n

The ISP also criticised BT<\/a> and local authorities for\u00a0failing to publish useful details about expected service speeds and coverage under the BDUK roll-out, which it claims has left communities to “pretty much guess what the impact will be<\/em>” and whether or not “they get an FTTC<\/a> enabled cabinet<\/em>” from BT<\/a>.<\/p>\n

The culture secretary, Maria Miller<\/strong>, recently threatened to withhold \u00a3250m<\/strong> of extra rural superfast broadband funding from local authorities unless they published the data, which would help smaller ISPs (altnets) to access \u00a320m of RCBF funding (here<\/a>). But so far most have only published vague information that often lacks the necessary detail or is too ambiguous to be of much use.<\/p>\n

Never the less Gigaclear<\/a>, which\u00a0is also\u00a0the parent company of Rutland Telecom (here<\/a>), believes that its alternative model of a privately funded\u00a0rural fibre optic broadband deployment is working and claims that 400 communities<\/strong> have now requested its service; though they acknowledge that this figure could fall once BDUK\/BT’s roll-out plan becomes clearer.<\/p>\n

Naturally ISPreview.co.uk wanted to know more about how Gigaclear<\/a> has been able to deploy its FTTP<\/a> network into sparse rural areas and their wider viewpoint on the Broadband Delivery UK<\/a> (BDUK) scheme. Luckily we’ve been able to extract a few answers from the providers Sales and Marketing Director, Joe Frost<\/strong>.<\/p>\n

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

Q1. Gigaclear is one of the very few ISPs (altnets) to be rolling out a true ultrafast Fibre-to-the-Home (FTTH<\/a>\/P) style fibre optic broadband network into rural areas. How has Gigaclear been able to achieve this, especially when many others appear to struggle with the economics and technical challenges?<\/strong><\/p>\n

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

Gigaclear has created a business model that works for us, our investors and our customers. We have now proven with the networks already in place that it\u2019s possible to install a new ultrafast fibre to the premises network in rural communities and make that network deliver a positive return on investment after just 5 years. <\/em><\/p>\n

Our network being pure fibre is extremely reliable, its performance does not vary with distance or the weather. It does not touching or rely on any of the existing copper infrastructure, but has direct connectivity to the national fibre backbone provided by other major UK carriers. <\/em><\/p>\n

The fibres we install underground are designed to last for 50 years and are capable of almost unlimited bandwidth by just changing the equipment in our cabinet and at the customer premises delivering a future proofed network to the community. Gigaclear works directly with its contractors who have significant experience at performing these installations and so we minimise our overheads in building these networks.<\/em><\/p><\/blockquote>\n

Q2. 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\/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

The key issue for residents and businesses based in rural locations are that they know they need better broadband that is faster and more reliable, yet they still do not know what they may receive or when. The lack of knowledge is holding up investment, customer recruitment and progress in rural communities. <\/em><\/p>\n

The Government\u2019s goal of improving broadband is of course commendable and essential, but the BDUK program appears to have fundamental challenges: there is only one provider (BT) that is able to \u2018win\u2019 the contracts and the contract itself has some challenges in that here we are near the end of 2013 and almost no one is aware of what they will get or when. When county councils are asked, almost all of them are unable to provide any answers that have any detail in terms of coverage and speed. <\/em><\/p>\n

The actual deliverable from this massive investment is also currently unquantifiable, with communities left to pretty much guess what the impact will be, when and if they get an FTTC<\/a> enabled cabinet in their community. With BT still in the process of evaluating its infrastructure in each county before it can tell the county councils what it can do, where, and how much money they will need to perform the upgrade, then the delays appear likely to be set to increase.<\/em><\/p><\/blockquote>\n

<\/p>\n

Q3. Similarly 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). <\/strong><\/p>\n

Not forgetting that Europe\u2019s Digital Agenda also wants 100% to have access to superfast connectivity by 2020. Do you think this new target will be achievable or is it just a pre-general election gimmick?<\/strong><\/p>\n

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

This target is again commendable and essential, and given cross-party support, is unlikely to be politically motivated. However we believe that it has the best chance of being achieved with additional competition. BDUK need to create a more predictable and useful contract that more than one supplier is interested in bidding for, and can win. Many question the durability of solutions based on additional investment in the old copper\/aluminium infrastructure when its life is limited already. <\/em><\/p>\n

Is this really going to get the UK to a position where it leads the way in communications infrastructure, a key enabler for economic growth and development? Faster progress towards a national FTTP<\/a> roll-out will be needed to hit the EU targets.<\/em><\/p><\/blockquote>\n

Q4. 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 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

Despite BT\u2019s evidence to the Public Accounts Committee, the evidence so far suggests that this pressure is yet to have the desired effect. How many counties have been allowed to publish their speed and coverage maps to date, which would identify where RCBF grants could be applied for? So the answer is no, this is not the end of the problem. <\/em><\/p>\n

What is needed to help the final 10% is action to ensure that they are aware sooner rather than later what they may get, when, and what their alternatives are. I am sure the county councils would be delighted to be able to obtain infrastructure upgrades for the entire county. But until they are able to recognise what still needs to be done, and are therefore able to seek new solutions, this is not going to be solved quickly.<\/em><\/p><\/blockquote>\n

Q5. Has Gigaclear itself suffered any problems as a direct result of the RCBF funding situation and or pressure from BT through the Broadband Delivery UK (BDUK) scheme?<\/strong><\/p>\n

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

In all the communities we are working in, the communities tell us that they have had representatives from BT telling them that they do not need to talk to another provider. This has led to confusion in the minds of local communities as to what their choices really are and as a result delays our projects. The sooner the detailed county plans are allowed to be published the better for rural communities, business parks, and for competition in this market.<\/em><\/p><\/blockquote>\n

<\/p>\n

Q6. Gigaclear recently added Fluidata\u2019s Service Exchange Platform to its network, which in theory should give some homes and businesses (i.e. those covered by your fibre platform) access to a much larger selection of ISPs.<\/strong><\/p>\n

Can you tell us a little more about how this works from a customer\u2019s perspective. For example, can somebody order Sky Broadband<\/a>\u2019s \u00a310 a month unlimited ADSL2+ service or the same sort of product from TalkTalk<\/a> and if so then how does that work over your fibre infrastructure?<\/strong><\/p>\n

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

The partnership with Fluidata allows us to more easily bring additional ISP\u2019s onto our network. Fluidata acts as a wholesale gateway for ISP\u2019s to sell their services over carriers networks. For Gigaclear that means that we publish our products and services at wholesale prices (as other wholesale networks do) to these other ISP\u2019s together with our actual and planned coverage areas. Customers of these ISP\u2019s, when entering their post code can see what choices of services are available at their property. <\/em><\/p>\n

The Fluidata partnership allows this process to happen transparently so that the customer need not know who the actual infrastructure provider is, they just know there is a choice of services, fibre and copper based, and what they will cost. As Fluidata expand their ISP relationships and we expand our footprint, we expect more ISPs to offer service using our network infrastructure.<\/em><\/p><\/blockquote>\n

Q7. 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 their installation costs. Do you think this is the best use for that money?<\/strong><\/p>\n

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

If you accept the argument that funds from general taxation should be distributed to enable businesses to get access to better broadband, then Vouchers are a sensible method to use in areas where competitive infrastructure providers already operate.<\/em><\/p><\/blockquote>\n

Q8. Finally, reports last year suggested that Gigaclear had held discussions with 150 rural communities about expanding the reach of your fibre optic network into their respective areas. What\u2019s the current situation and how far do you see Gigaclear expanding its fibre network in the future, especially given the growing pressure from BT and BDUK funding?<\/strong><\/p>\n

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

Our pipeline of communities showing interest in our service is constantly growing, we have some 400 now requesting our presence. As and when the county plans evolve we will see some of those communities not require our services, and we expect to see more approaching us when they become aware of what, if any upgrade they are to see and when. Many, but not all of the communities we are engaged with are outside the BDUK intervention areas, we expect to have 30 networks in operation by the end of next year.<\/em><\/p>\n

It is important to note that communities still have a choice \u2013 they don\u2019t have to take the county\/BDUK upgrade plan if they don\u2019t think it will make sufficient impact to the community or its businesses, perhaps due to a lack of cabinets or their location being between rather than within the communities they serve. Gigaclear and other altnets will happily work with communities and business parks where there is quantifiable demand for better broadband. When Gigaclear builds a network using its own funds, the county is able to then remove that area from their BDUK funded intervention plan and reallocate the subsidy elsewhere in the county. This then becomes a win for the community or business park and a win for the county.<\/em><\/p><\/blockquote>\n

End.<\/p>\n

Thanks to Joe for taking the time out to help with our interview.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gigaclear, which specialises in deploying ultrafast 1Gbps capable fibre optic (FTTP) networks into rural areas around the United Kingdom, has told ISPreview.co.uk as part of our exclusive interview that the Government needs to create a more “predictable and useful” Broadband Delivery UK (BDUK) scheme that allows more than just BT to bid for contracts.<\/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":[471,52,65,56,416],"class_list":["post-4216","post","type-post","status-publish","format-standard","hentry","category-editorial_article","tag-bduk","tag-fibre-optic","tag-ftth","tag-fttp","tag-gigaclear"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nUK Fibre ISP Gigaclear Calls for More Predictable and Useful BDUK Contract - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Gigaclear, which specialises in deploying ultrafast 1Gbps capable fibre optic (FTTP) networks into rural areas around the United Kingdom, has told\" \/>\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\/11\/uk-fttp-isp-gigaclear-calls-predictable-useful-bduk-contract.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2013\/11\/uk-fttp-isp-gigaclear-calls-predictable-useful-bduk-contract.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK Fibre ISP Gigaclear Calls for More Predictable and Useful BDUK Contract - 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