{"id":6913,"date":"2014-06-09T01:25:30","date_gmt":"2014-06-09T00:25:30","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=6913"},"modified":"2014-06-09T06:49:28","modified_gmt":"2014-06-09T05:49:28","slug":"interview-cityfibre-talk-1gbps-fttp-rollout-sky-talktalk-york","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2014\/06\/interview-cityfibre-talk-1gbps-fttp-rollout-sky-talktalk-york.html","title":{"rendered":"Interview – CityFibre Talk 1Gb FTTP Rollout with Sky Broadband and TalkTalk"},"content":{"rendered":"

The Director of Strategy and Policy at urban fibre optic developer CityFibre<\/a>, Mark Collins, has today revealed more to ISPreview.co.uk about their Joint Venture plans with Sky Broadband<\/a> and TalkTalk<\/a> to roll-out an “ultra-fast<\/em>” 1000Mbps capable Fibre-to-the-Premises (FTTP<\/a>\/H) broadband network for UK homes in three cities, starting with York.<\/p>\n

<\/p>\n

The past year has been very busy for CityFibre<\/a>, which has announced plans to deploy its fibre optic <\/strong>infrastructure into several new cities across the United Kingdom and recently raised millions in additional investment funding by floating onto the London Stock Exchange<\/strong> (here<\/a>).<\/p>\n

At present CityFibre has already built its own primary fibre optic networks in Bournemouth<\/strong> and York<\/strong> (here<\/a>), while they recently announced similar deployments in Peterborough<\/strong> (here<\/a>) and Coventry<\/strong> (here<\/a>). The operator also manages a variety of other networks and are busy considering future roll-out plans for a number of additional large towns and cities, such as Bath<\/strong> (here<\/a>).<\/p>\n

Until recently most of CityFibre’s fibre optic deployments, except its service in Bournemouth which was originally constructed by the i3 Group UK<\/strong>, have predominantly focused upon serving the public sector and businesses. But all that changed in April 2014 when CityFibre announced a bold new Joint Venture<\/strong> with Sky Broadband<\/a> and TalkTalk<\/a> (here<\/a>), which would adapt the operators network in York to deliver a 1Gbps<\/strong> fibre optic broadband service to thousands of homes across the city, before potentially expanding into two additional cities.<\/p>\n

A new company will be created to support the new service, which will make use of and extend CityFibre’s existing 103km long FTTP<\/a> network in the city, and the first customers are then expected to go live in 2015<\/strong>. The long-term plan is to make the new service available city-wide, although initially the roll-out will only focus upon 20,000 homes<\/strong> (representing about a quarter of the city) and is being supported by an investment of \u00a35m<\/strong> each from the two ISPs.<\/p>\n

But the new network faces many challenges, not least with the difficulty of attracting customers in a market where rival superfast broadband services from operators like BT<\/a> (FTTC<\/a>) and Virgin Media<\/a> (Cable DOCSIS<\/a> \/ FTTN) are already available. Questions have also been raised over the economic viability of the plan, with TalkTalk controversially suggesting that it might technically be cheaper to roll-out FTTP than hybrid-fibre FTTC. Suffice to say that ISPreview.co.uk were keen to learn more about the development and managed to put our questions to CityFibre’s Mark Collins<\/strong>.<\/p>\n

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

Q1. TalkTalk recently said that the economics of the joint approach to FTTP in York could prove highly attractive, with a combination of scale and low cost build technology delivering a \u201csignificantly lower cost per home passed\u201d than for the current FTTC infrastructure.<\/strong><\/p>\n

Meanwhile the reasons BT<\/a> are deploying FTTC is because they can reach tens of millions of homes and businesses for comparatively low cost, largely because they don\u2019t need to re-build or replace the costly \u201clast mile\u201d connection from cabinets and into homes.<\/strong><\/p>\n

Naturally there are ways to cut the cost of deploying FTTP, such as via micro-trenching (we note that the FTTP roll-out will use this) and using telegraph poles, but it would surely take a lot more than just those to make rolling out FTTP cheaper than FTTC; especially as you\u2019d still need to keep the old copper network running at the same time in order to support legacy users. Can you clarify where the other cost savings areas are?<\/strong><\/p>\n

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

CityFibre is building brand new, fit for purpose network that needs to constantly deliver cutting edge broadband technologies for at least the next century. In order to achieve this, our infrastructure must be built from scratch \u2013 simply reutilising existing, legacy networks will simply not measure up.<\/em><\/p>\n

By starting afresh, we have the advantage of being able to carefully plan this network\u2019s on going growth and the ability to consistently deploy new methodology and techniques as they are created. Practices such as micro-trenching means our infrastructure can be deployed effectively and efficiently but also seamlessly upgraded whenever required.<\/em><\/p>\n

What will ultimately be achieved is a tremendous example of shared infrastructure, where the benefits of multiple usage – whether that is for home or business broadband – are enormous. Not only does this shared ecosystem deliver unparalleled, real end-to-end fibre solutions but it reduces costs thanks to the number of involved stakeholders. Our new built pure fibre networks have very efficient operating costs, which also benefits to cost of using our networks.<\/em><\/p><\/blockquote>\n

Q2. The involvement of Sky Broadband and TalkTalk is extremely good news but isn\u2019t there a risk that this might create confusion with existing packages and availability if offered through the ISPs current websites, or will you only offer related FTTP broadband packages through the new company?<\/strong><\/p>\n

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

CityFibre will be responsible for managing the planning and construction of the fibre network and ensuring it runs smoothly at all times. All broadband services will be provided by TalkTalk and Sky directly.<\/em><\/p>\n

TalkTalk Consumer and TalkTalk Business will be selling a range of competing ultrafast services to their residential and business customers. TalkTalk Group will also build and manage the billing provisioning and assurance systems that will enable customers to connect to the network. Sky meanwhile will be predominantly focussed on selling a range of competing ultrafast services to their residential customers.<\/em><\/p>\n

Both companies are experts in targeted marketing and they will leverage their experience gained in localised promotion of unbundled DSL<\/a> services. This will ensure residents of York receive the full benefits this new network has to offer.<\/em><\/p><\/blockquote>\n

Q3. Some analysts have questioned why the focus is on York and not Bournemouth, where 20,000 premises are already passed by CityFibre\u2019s FTTP network?<\/strong><\/p>\n

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

All joint venture partners agree that, in order to most accurately assess the process of FTTH deployment and marketing, from start to finish, it would be best to start with a clean slate, rather than launch into a partially complete network in a city like Bournemouth.<\/em><\/p>\n

York is an ambitious digital city \u2013 it wants to become the Digital Infrastructure Capital of the North, and we are looking forward to working with York Council and other local interest groups in helping them make this a reality by giving them the UK\u2019s fastest broadband speeds.<\/em><\/p>\n

Given our existing investment in Bournemouth we would not rule out the possibility of the city being part of any of the joint venture\u2019s expansion plans in the future.<\/em><\/p><\/blockquote>\n


\nQ4. CityFibre\u2019s similar network in Bournemouth has struggled to be adopted, which appears to show that ISPs need to offer more than ultrafast speeds in order to compete effectively with established cable\/FTTC networks (we note that BT also has a little FTTP in York).<\/strong><\/p>\n

How will the service in York differentiate itself and overcome the problem of low uptake in an already competitive Next Generation Access (NGA) market area, especially considering that York \u2013 like Bournemouth – also has strong availability of rival cable and FTTC networks?<\/strong><\/p>\n

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

In Bournemouth, CityFibre\u2019s ISP service, Gigler, was established to showcase the benefits of fibre Gigabit to the home. CityFibre\u2019s intention has been to work with larger ISPs in the UK and as such we\u2019re delighted to be part of this joint venture with TalkTalk and Sky.<\/em><\/p>\n

We\u2019re confident that given the array of expertise possessed by all partners and the fact the FTTH infrastructure platform is cutting edge, will mean that the Gigabit speeds rolled out in York will be amongst the best in the world. Sky and TalkTalk together already serve 45% of all broadband customers in York, and we believe these customers will migrate to the superior platform quickly.<\/em><\/p>\n

There will of course be further service propositions incorporated into the network that will be announced in due course.<\/em><\/p><\/blockquote>\n

Q5. The current \u201ccity-wide\u201d roll-out plan for York talks about a commitment of \u00a35m each from Sky and TalkTalk. However the initial phase has so far only stated an expectation to reach 20,000 (premises passed) properties in 2015, although York is home to more than 80,000 premises in total.<\/strong><\/p>\n

Does the current investment cover the full \u201ccity-wide\u201d deployment or will more be needed in order to achieve that and is there any rough timescale for how long it might take to reach all 80,000?<\/strong><\/p>\n

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

The initial investment of \u00a35 million each from Sky and TalkTalk is for the first rollout of network services to homes in York. There will be second phase of investment to extend this rollout to further premises\u2019 in the city, which will be announced in due course.<\/em><\/p><\/blockquote>\n

Q6. The announcement said that another two cities are likely to see a deployment (we\u2019re guessing existing CityFibre network areas like Bournemouth and Peterborough). But when and how will you make the decision about where to go next, if anywhere (we assume the plan would not be expanded unless York is successful)? Is there a specific uptake target etc?<\/strong><\/p>\n

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

The model we are adopting mirrors the roll out of similar high speed, fibre optic services in the US by Google. That plan started with one city, subsequently expanded to three cities and Google recently announced plans to engage with over 30 more cities. We believe a similar approach can be adopted in the UK.<\/em><\/p>\n

York is the first city in our master plan and our initial intention is to expand to a further two more in the short term. The selection of these next two cities will be based on on-going engagement with local authorities and most importantly the enthusiasm they show to be part of our plans. Further details, including the steps we are taking in making this selection will be shared in due course.<\/em><\/p><\/blockquote>\n

Q7. If a customer wants to take the new service, roughly what will it cost to install and what would be involved in that process (will their garden or drive-way need to be dug up etc.)?<\/strong><\/p>\n

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

Customers who want to take advantage of these ultra-fast Gigabit speeds will require the installation of a state of the art fibre connection directly to their premises.<\/em><\/p>\n

Service propositions from both TalkTalk and Sky will be ultimately competing against each other and the details of each offering will be announced later in the year.<\/em><\/p>\n

Despite the fact York\u2019s new network will deliver a huge step change in in broadband capability, we expect both TalkTalk and Sky\u2019s offerings to be highly competitive prices that are very attractive to end users.<\/em><\/p><\/blockquote>\n

Q8. Many modern broadband routers would struggle to deliver the top speed of 1Gbps reliably, not least due to inferior wifi<\/a> performance. Even some of the best 802.11ac kit struggles when you actually ask it to do 1Gbps. Can you tell us anything about the hardware you expect to use in order to overcome this?<\/strong><\/p>\n

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

We are building fit for purpose fibre infrastructures that not only cater for today\u2019s bandwidth needs but also support the exponential growth of data usage. Looking at the rapid technological evolution that the world is experiencing \u2013 from smartphones to televisions and beyond \u2013 there will be a need for gigabit connectivity and the access technologies such as gigabit Wi-Fi will quickly catch up. The deployment of this end-to-end fibre network will be delivered over an 18 to 24 month period. we\u2019re confident that by the time this network is complete there will be adequate modem and router technology available to support it.<\/em><\/p><\/blockquote>\n

Q9. Can you reveal any-more about the staging of the planned roll-out? In other words, can you give us any idea of which areas in York will be the first to benefit and which will be the last as part of the first 20,000 premises?<\/strong><\/p>\n

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

Planning for network construction is currently underway and the precise roll out schedule will be determined as a result. All parties will work closely with the community to gauge the enthusiasm of York\u2019s community to ensure we maximise the benefits that this transformational infrastructure deployment will bring. We will continue to provide updates as our planning process evolves.<\/em><\/p><\/blockquote>\n

Q10. Finally, TalkTalk\u2019s CEO, Dido Harding, recently spoke of her aspiration to push the FTTP\/H network out to 10 million homes across the United Kingdom. At present the ISPs balance sheet might struggle to afford this, although over a 10-15 year period it could be viable (depending upon uptake).<\/strong><\/p>\n

However some suggest that it could be premature to speak of such things before the York deployment has been proven. So is this likely to become a real commitment or just something intended to ruffle Ofcom<\/a> and BT\u2019s feathers in the hope of securing a more favourable regulation of FTTC?<\/strong><\/p>\n

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

Given this deployment in York is the first by this joint venture it is in many ways a trial process with particular emphasis on testing and implementing scalability. Once our success in York has been measured, there is no doubt that the experience gained in the city will be past on to other cities, as we have previously made clear.<\/em><\/p>\n

Sky, TalkTalk and CityFibre are truly dedicated to being at the heart of connecting regional Britain and this is simply the first step on that journey, and all three organisations are in pristine financial health. Sky and TalkTalk have strong cash flows from their combined nine million broadband customers that can underpin long-term infrastructure financing, meaning that an FTTP\/H infrastructure can be rolled out with minimal impact to their balance sheets.<\/em><\/p>\n

From a regulatory point of view, it is important that Ofcom<\/a> supports a competitive market that delivers private investment in our broadband networks. Digital infrastructure competition will bring rewarding long terms benefits to the UK, and Ofcom must enable a regulatory environment to achieve this.<\/em><\/p><\/blockquote>\n

End.<\/p>\n

ISPreview.co.uk would just like to thank Mark Collins for being kind enough to engage with our questions and for offering some useful insights into the project. Developments like this, if successful, have the potential to shake-up the market and give BT some real competition at the critical infrastructure level, but such changes won’t happen overnight and usually form part of a much longer-term strategy that will ultimately be dependent upon uptake.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Director of Strategy and Policy at urban fibre optic developer CityFibre, Mark Collins, has today revealed more to ISPreview.co.uk about their Joint Venture plans with Sky Broadband and TalkTalk to roll-out an “ultra-fast” 1000Mbps capable Fibre-to-the-Premises (FTTP\/H) broadband network for UK homes in three cities, starting with York.<\/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":[418,52,65,56,66,74],"class_list":["post-6913","post","type-post","status-publish","format-standard","hentry","category-editorial_article","tag-cityfibre","tag-fibre-optic","tag-ftth","tag-fttp","tag-sky-broadband","tag-talktalk"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nInterview - CityFibre Talk 1Gb FTTP Rollout with Sky Broadband and TalkTalk - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Director of Strategy and Policy at urban fibre optic developer CityFibre, Mark Collins, has today revealed more to ISPreview.co.uk about their Joint\" \/>\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\/2014\/06\/interview-cityfibre-talk-1gbps-fttp-rollout-sky-talktalk-york.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2014\/06\/interview-cityfibre-talk-1gbps-fttp-rollout-sky-talktalk-york.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Interview - 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