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UPD ISPs Welcome New Superfast UK Fibre Optic Broadband Network from Fujitsu

Posted: 18th Apr, 2011 By: MarkJ

Plans by Fujitsu, Virgin Media, Talk Talk and Cisco to build a new 1Gbps capable fibre optic broadband network ( FTTH ) that could reach 5 Million homes in rural areas (here), and act as an alternative to BT's own wholesale platform, have received strong support from a broad cross section of UK ISPs today.

Darren Farnden, Entanet UK's Head of Marketing, said:

"As several ISPReview readers have noted, there’s a lot of marketing fluff in the press release from Fujitsu and supporting comments from both Virgin and TalkTalk. What end users and potential wholesale customers will want to know as quickly as possible is the detail behind the plan. Nonetheless, it’s certainly good news to the Government’s 2Mbps Universal Service Commitment, while competition in the wholesale markets can be ‘useful’.

The two big ‘ifs’ though are Ofcom’s success or otherwise in imposing regulation on BT to provide duct and pole access reasonably and affordably; and how much of the Government’s BDUK office budget can be secured. There’s already much demand being placed on the Government fund so Fujitsu et al may need to dig even deeper into their own pockets."

The Director of AAISP UK, Adrian Kennard, simply said:

"We welcome any new open access networks. This could provide one of the first real alternatives to BT for these areas."

Nick Rawlings, Commercial and Marketing Director for PlusNet UK, said:

"Plusnet is committed to bringing good value broadband to all areas of the UK so, we welcome the announcement that other companies are interested in joining the upgrade to infrastructure. We would hope - as with any plans of this nature - that Plusnet can access any network on an equal playing field to competitors to ensure the end result is the truly best deal for the broadband customer."

A Sky Broadband Spokesperson added:

"It's encouraging that there's a dynamic environment for network investment. To ensure that consumers benefit from such investments it's important that there continues to be a regulatory environment which protects competition and choice. Therefore any future Government-subsidised networks should be accessible on fair and non-discriminatory terms."

Clearly some providers are concerned that the project has yet to be fully detailed, although most were keener to highlight a need for Fujitsu's network to be accessible and offered on an open and fair basis. The involvement of TalkTalk and Virgin Media might worry rival providers, which could fear that they won't get equal treatment.

However, Fujitsu clearly pledged that its network would "be truly open access to all ISPs", although it remains to be seen whether or not Virgin Media and TalkTalk will benefit from some degree of preferential treatment. In any case the new network has yet to even be built and is reliant upon the project getting its way via BT's Physical Infrastructure Access (PIA) pricing.

We expect to add more quotes this week, while the ISPA is still busy formulating its official position.

UPDATE 7:19am

Here's one from business ISP Fluidata UK.

The Managing Director of Fluidata, Piers Daniell, said:

"The cynic in me would also say this is much more of a Virgin bid than anything else as Fujitsu already look after most of their network already. But it makes sense to make the bid in Fujitsu’s name as they are perceived as being more independent as a network builder rather than Virgin as an operator.

I know it is unrelated but don’t forget how Virgin (Atlantic) was going to save ‘Concorde’ which was completely unfeasible but produced some good media comments and lots of goodwill towards the brand. If Virgin succeeds with this bid then they build a bigger network, if they fail, they will be known as the company that tried to help consumers against the might of BT. Not a bad marketing strategy.

In their press release they say they need to win the available £500m to make this a reality, which is unlikely given the fact that BDUK (government body) will distribute the money between the local authorities who will each award their allocation of the money locally. In this scenario it is highly unlikely Virgin, sorry Fujitsu, will win all the money and hence, from what they have said this proposal wouldn’t happen."

Daniell certainly makes some interesting comments and manages to chime in with much of the backroom style criticism that currently surrounds Fujitsu's plan. By now the government should also have a pretty good idea of where its first £530m (until 2015) is headed, although their budget will rise to £830m by 2017.

Still, Fujitsu's plan appears to have arrived a little late in order to benefit from lots of public funding, which means that it might not be able to proceed. It's also dependent upon BT's unfinished Physical Infrastructure Access (PIA) prices, an issue that could take awhile to resolve (here).

Fujitsu's network is a wonderful idea but for the time being, until something actually happens, many will continue to question its credibility. We certainly hope it isn't just a PR campaign and actually does turn into something solid. Adding lots of 'get out' clauses early on (i.e. "we'll do this but only if.." etc.) is never a good sign.

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