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broadband Business internet

Talk with TalkTalk Technology Chairman Neil McArthur

Very enjoyable chat with Neil McArthur, Chairman of Talk Talk Technology Group. Neil was one of the original team at Opal before they were bought by Carphone Warehouse and is the architect of the CPW Next Gen network.

I was very impressed with their broadband technology network, a dual 400Gig ring that comes with all the MPLS bells and whistles. I have to say that having seen it they have the potential to be a real force to be reckoned with.

They have come from a long way behind the incumbent and have made great strides from the days of the launch of the CPW LLU play, six months or so before it was actually ready.

They could potentially, given a level playing field with BT Openreach, become a real competitor to BT Wholesale. My position up until now has been that the only game in town is going to be BT with potentially a broadband technology competitor made up of Virgin and ANO.

It makes me think that the complete spin off of BT Openreach from the parent Group is essential to ensure this level playing field. The regulator could concentrate on ensuring fair play the local loop and let the battle happen at the wholesale network level, in the business market at least. It does make me suspicious of BT’s efforts to keep Openreach in house.

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broadband Business internet

Parliament TV Digital Britain Stitch Up

Representatives of BT, Vtesse, The TalkTalk Group, and Avanti Communications appeared before an AdHoc Committee of the Department of Business, Innovation and Skills yesterday.

The guests appeared to support the 2Mbps target for Broadband Universal Service and moreover kept repeating the phrase Universal Service “Commitment” as opposed to Universal Service “Obligation”. As readers will be aware Digital Britain Minister Stephen Timms has already reaffirmed that USO is where the Government is at. The panelists may have had their own agenda here or not keeping up with the times.

I also hear “we don’t need faster broadband today”, “we should let the free market decide”, “it is very difficult to say what people will do with higher speeds”, “it wouldn’t be public money well spent”.

In my mind there is a significant level of “heads in the sand” here. Yesterday I was looking at HD TV streaming speed requirements and 17Mbps seemed to be the requirement for the BBC’s output. Multiply that by the number of family members wanting to watch in their own rooms…  There are no doubt codecs (MPEG4) that support good quality at lower speeds.  However the point is that 2Mpbs doesn’t cut it.

UK plc needs to get more aggressive in the global internet game.  The video evidence is available here.  I didn’t watch all 2 hours so there could, I guess, be some revelations after the 40 minutes mark that you might like to hear for yourselves.

Categories
broadband Business internet voip

Digital Britain FTTC Broadband – The Truth

I spent this afternoon at the Muswell Hill telephone exchange! I’d not been into one before and it must be said it felt like walking into an old high school. A pre-war building that echoed to my footsteps…The most noticeable thing walking in was a constant clicking sound. TDM switching still alive and kicking!! Eerie.

The purpose of my visit was to test the FTTC broadband line. I had a gaggle of BT engineers in tow to watch. I don’t think I was the first in but I was certainly an early adopter.

The results were exciting. We used a number of speed test engines and saw between 22Mbps and 42Mbps download speed. There was also a 172Mbps which was clearly an aberration. I’ll not name the website that gave us that one! The BT Wholesale line checker suggested that we should be able to get a speed of 38.5Mbps.

The uplink was a consistent 1.8Mbps or so – we were clearly not running off the 5Meg version.

I performed a number of tests including video streaming and Voice over IP. Both were stunningly successful. I didn’t expect any problems – the VoIP had plenty of bandwidth and was clear as a bell.

For the video I ran a couple of iPlayer sessions in parallel. The full screen performance was great. With hindsight I should have seen how many I could run to determine the maximum – a consumer household simulation.

The photos below show two video streams running plus a full screen shot of a BBC wildlife programme. Excuse the caption – I had some photos of me making VoIP calls over FTTC but they mucked up the formatting of the post so I deleted them.

Few points in finishing off:
The current BT Openreach strategy is to provide the VDSL2 modem for the Communications Provider to hook up to with an Ethernet Router. This should ensure better interoperability with the MSAN – an issue with different routers in the regular ADSL game.

Speeds will get better during the course of the 10 day training period. BT has seen 30 – 35Meg reasonably consistently after this period though there is not enough trial data to yet be able to quote a “typical” speed. It will be dependent on average distance from the exchange.

Note our range of 22 – 42 Mbps was based on being 4 feet from the cabinet – so there is definitely some bedding down to do there.

I make no apologies for the size of the images – they were just screenprints – I resized them but left them unoptimised for the web so if some of them take a little time to load that’s why.

Note also that whilst FTTC broadband is still a trial apparently the local BT shop in Muswell Hill is selling connections as if there was no tomorrow.  Hopefully they are making their customers aware that it is a trial 🙂

two video streams running off BBC iPlayer over FTTC
two video streams running off BBC iPlayer over FTTC

insect screenprint off BBC iPlayer over FTTC

Categories
broadband Business

Broadband Stakeholder Group Not Very Helpful

Established in 2001 as a cross-sector government advisory group, the Broadband Stakeholder Group has only disappointed.

Catching up on my reading this morning I note that the Broadband Stakeholder Group sees the Government’s Next Generation Fund (ie the 50p tax on analogue lines) as a “Forward looking, innovative and proportionate proposal that will benefit all”.

I also note in the Extended Play version of it’s press release on the subject that “The BSG was established as a cross-sector government advisory group in 2001 to help the UK lead the G7 in broadband penetration and connectivity.”For reference this is what the G7 broadband leadership league table looks like today according to the Oxford University Said Business School report. The numbers are the position in the broadband leadership league table,

japan 2
usa 15
Canada 17
france 18
uk 25
germany 27
italy 38

Whilst I think we need such an organisation as the Broadband Stakeholder Group I guess the question I am asking is whether it is really doing UK PLC any favours. By it’s own measures of success it is not succeeding. The BSG needs to be more forthright in its advice to Government.

Categories
broadband Business internet mobile connectivity

O2Be and the Ever-Growing Complexity of the Broadband Service Landscape

Met with O2/Be last week to discuss their LLU broadband play. O2 has been winning awards for their consumer broadband service. They have an ADSL2+ solution that already supports Annex M.

For the uninitiated Annex M allows a service provider to trade some downloading speed on a broadband service in exchange for a faster (up to 2.5Mpbs!?) upload.

O2/Be have unbundled around 1,240 exchanges and so have one of the largest LLU footprints in the UK. They also claim to have 500,000 customers so in understanding the options for the provision of broadband service in the UK they are one of the companies that need looking at.

A complex web is being woven in the UK broadband landscape. Clearly O2 is serious. When they bought Be the LLU estate numbered no more than 30 or so exchanges. A lot of cash has been expended to turn it into the figure it is today.

O2 is telling the world it wants a seat at the table and is willing to put up a stake. It does have a different approach to Carphone Warehouse, the leading LLU player in terms of size, in that it only offers the broadband connectivity. Currently O2 relies on Openreach for the underlying analogue line.

Having looked at the economics of LLU myself it makes a lot more sense if you are taking the voice path as well as the ADSL. There are other benefits with LLU in that an ISP can tailor its own services and thus offer a differentiation in a crowded market. It still needs subscriber numbers to make it pay and at the consumer end it is unlikely that the service provider will want to offer too many variants – simplicity of broadband service means lower costs to sell, provision and support.

This brings me on to another point and that is that BT is now introducing FTTC which at 40Mbps down and 5Mbps up blows all the LLU operators ADSL2+ offerings out of the water, at least in terms of speed. There are then only two players in the game – BT and Virgin with their cable proposition. Other players will have to line up behind one of these two as a wholesale customer and note that Virgin does not yet have a wholesale proposition.

Now FTTC is in its early days of rollout but the footprint is likely to be the same Market 3 footprint as the unbundled exchanges, ie the densely populated parts of the country that make business sense.

So I think for the moment that LLU players have a market window that is probably no more than two years for their unbundled services. Two years will scream past, if the past five at Timico are anything to go by.

Coming back to O2/Be their play thus far has been very much into the consumer market. They look to be a solid player and I have heard good things about them from peers in the ISP community. Their sortie into the business market is through an L2TP play with relative newcomer Fluidata. I have nothing to say against Fluidata, not having worked with them but they are small and O2, if it is serious at the wholesale, game will want to do it in-house.

What their long term strategy is though is a difficult one to call. Owned by Telefonica they should have the deep pockets to play. Play what though? When there are likely to be only two players and one of them is BT then you either have to be satisfied with being a reseller of BT or Virgin or you buy one of them. I can’t see the regulator letting O2 buy BT, it would be ironic if they did.

They might let them buy Virgin though.  And then where does that leave Vodafone, a business that is only dabbling in broadband at the moment…

The UK communications industry has never been as exciting a place to be as it is now. Any informed comment/feedback to this post will be read with interest.

Categories
broadband Business internet

Britain is 25th in Oxford University Global Broadband League Table

Britain is 25th in the global broadband league table according to a Cisco sponsored study performed by Oxford University’s Said Business School. This was one of the headlines that woke me up whilst listening to BBC Radio 4 this morning.

That in itself should be a spur for the UK to get its act together. For the BBC interview, however, Oxford University could have fielded someone  a little more conversant in the issues. The study itself, seen online,  looks to be purely factual but University don Alastair Nicholson seemed to to think that this lowly ranking was not a problem and that our broadband network was perfectly suited to our present needs.

Although this initially incensed me I’ve calmed down now.  Alastair Nicholson, as an academic overseer of some MBA students,  probably has little exposure to the dynamics of a high technology fuelled economy.  He didn’t do the country a favour though by suggesting that the hype surrounding the Digital Britain debate was partly pride and not driven by the absolute need to have faster and more ubiquitous broadband.

He is just wrong. This is extremely short sighted. Build the motorway and the traffic will come. The act of building this information superhighway will create the jobs that will help to dig our way out of recession.

Categories
broadband Business Regs

#digitalbritain Under the Aegis of BCS – The Chartered Institute for IT

It’s worth taking a look at this blog post at media140.org. It contains part of a talk given by @cyberdoyle, a regular commenter on trefor.net at a session on #digitalbritain at the Royal Society organised by BCS – The Chartered Institute for IT . @cyberdoyle quite rightly maintains that the BET solution for broadband over long copper lines is inadequate.

The real point that is being hugely missed by Government and which I have mentioned more than once is that 2Mbps is totally inadequate as a speed for a Universal Service Obligation for broadband. Others quote 40Mbps or more as being where it should be. I believe we should be pitching for 1Gbps. If this is not achievable short term then if we lay the national corporate fibre infrastructure then it will be doable sooner rather than later by upgrading the equipment at either end of the fibre.

Categories
broadband End User

Who Ate All the (Broadband Fibre Optic) Pies?

Reading the news online before breakfast this (Saturday) morning I came across the PIEMAN project in Ireland. PIEMAN, or The Photonic Integrated Extended Metro and Access Network, is an EC funded project researching new broadband fibre optic technology.

The project potentially promises broadband fibre connectivity over distances of up to 100km in a single hop.  This would be a huge advance over today’s 25km (ish) for an ethernet circuit. I’d guess we turn down business on a weekly basis, because the customer’s site is too far from the nearest POP for a connection to be economically viable.

PIEMAN also introduces the idea of low cost 10Gbps connectivity, with many more users able to share the same broadband fibre. This makes the Government target of 90% penetration of 40Meg by 2017 seem very tame.

Categories
broadband Business internet online safety piracy Regs

UK Government Efforts ISP Regulation Gets Opposition from Unexpected Sources

There has been a lot in the press recently regarding Government plans to regulate the ISP industry. ISPs have been vociferous where they consider that this regulation is unnecessary and adds cost burdens that will have to be borne by consumers.

Quite pleasingly other industries which the Government is likely to think would be the beneficiaries of the legislation have also come out against it.

For example the high profile “three strikes” approach to Music Piracy whereby persistent file-sharers have their broadband cut off is attracting a lot of opposition from the music industry itself. The BBC reports:

Radiohead guitarist Ed O’Brien, a member of the Featured Artists’ Coalition (FAC), said: “It’s going to start a war which they’ll never win.”

Feargal Sharkey’s UK Music allegedly has a war chest of up to £20 million a year to lobby Government on the subject of ISP regulation. This FAC stance seems to be clear disagreement within that industry.

The leak in the Independent this week that the Queen’s Speech currently is planned to propose mandatory blocking of consumer broadband connections for child abuse images has also created a bit of a stir.

The vast majority of consumer broadband connections already have such screening and it seems that the Government is trying to make political capital out of a subject which everyone will of course support in principle.

The issue is how much effort and money will it take to cover the last few consumers not already “protected” particularly as it is smaller ISPs who are most likely to be affected. This is particularly relevant considering that all we are not talking about stopping hard core child abusers who already know how to get around the blocking.

The Register has come out with an interview on this subject with Jim Gamble, Chief Executive of the Child Exploitation and Online Protection Centre (CEOP), and effectively the UK’s leading investigator of online child abuse who has come out against legislation in this area.

There is potentially a lot more regulation in the pipeline. Somewhere in a Government office near you someone is plotting to gain more control ever our every day lives. It is at least nice to see that there are people out there with some common sense who are willing to stick their hands up and say “this is not right”.

Categories
broadband End User

What Type of Traffic Uses Up Broadband Bandwidth?

It is interesting to see the mix of traffic on the Timico ADSL network and thus what is taking up the broadband bandwidth usage. As a B2B ISP the profile will be dramatically different to that of a consumer provider.

For example the amount of bit torrent traffic is fairly low at around 6%. This compares with up to 40% sometimes seen on residential ADSLs. There are legitimate business uses of P2P but it does suggest that a few customers are hitting it hard. The nature of P2P is that it will hog all available bandwidth which actually makes it a highly efficient protocol for transferring large amounts of data. In fact the 6% of P2P traffic on the Timico could well be largely down to half a dozen ADSL2+ customers hitting it hard which represents a tiny proportion of our customer base.

The usual business type applications such as email and VPN are apparent on the chart but the biggest driver is clearly simple web browsing. No great messages here regarding bandwidth growth.

There are however some hidden gotchas. This chart was a snapshot over one working day sometime recently. It does not, for example cover the Ashes cricket matches where video streaming saw a huge growth as people at work tuned in on Skyplayer. How many business managers knew that their staff were watching the TV all day instead of working?  It is costing them twice – in the salaried time spent watching the cricket and in the cost of the bandwidth.

Also it is daytime usage and does not cover night time where a significant amount of file transfer traffic takes place. We do see a small rise in P2P in the evenings –  Timico provides thousands of corporate homeworker ADSLs. However the overall bandwidth falls significantly for us after 5 o’clock which is the exact opposite to what is seen in the consumer world. It will be interesting to periodically track the changes in usage and look at where the trend takes us over time.

traffictypes

Categories
broadband Business

Broadband Types: ADSL versus FTTC versus FTTP

As we begin to discuss the merits of broadband types — Fibre To The Cabinet and Fibre To The Premises compared with ADSL — there are a few points worth noting.

First of all there is the speed of the connection. ADSL2+ offers “up to 24Mbps”, FTTC “up to 40Mbps” and FTTP, which has no copper in the loop, is initially 100Mbps with an upgrade path to 1Gbps. I’m not predicting when any reader will have access to these services but those are the numbers. Also the 100M should not need the “up to” inverted commas.

Speed apart the biggest win for me is likely to be in the reliability of the service. Copper based broadband connections are very prone to service interruption due to water and electrical storms.

Believe it or not fault rates do actually go up during summer heatwaves and the thunderstorms that these unbearable periods of British summer weather tend to attract:-). Fibre does not care about water or electromagnetic interference.

Fibre bandwidth delivery is also not dependant on distance in the way that copper based ADSL is. So the overall customer experience is likely to be much improved as we move to FTTP.

BT are assuming that more of their NGA rollouts are going to be FTTC. I think that once FTTP is readily available it will supersede it’s partly copper based sibling. Uses for the bandwidth are going to come along in their droves.

Categories
broadband Business ofcom

The Demise of Fixed Broadband

A lively time is being had today at the BT Wholesale ISP Forum. The ISP world is fast moving and with so many changes going on – the move from ADSL Max to 21CN, the introduction of Fibre To The Cabinet, Ethernet in the First Mile – there are always lots of things to talk about.

We had a market presentation given by John Kiernan of the BT Market Research department.  This was largely a regurgitation of this year’s Ofcom Market Report but he also spoke about the move away from fixed broadband to mobile broadband. During the debate from the floor someone mentioned that at the Broadband World Forum in Paris yesterday the talk (presumably by the wireless network operators) was that  wireless broadband was expected to kill off fixed broadband by 2012.

I can’t see this happening in the UK anytime soon although I’m sure that wireless broadband is going to have a big part to play – I use it myself on the move.  Consumers especially are getting more and more tied in to bundles that include their fixed line, TV and broadband. Also fibre brings the potential to provide much faster speeds than are being discussed with wireless broadband (and I know that someone will now tell me you can get Gigabit wireless).

What does concern me is the increase in the pollution of the airwaves which will come with more and more wireless.  I realise we are told it is safe but…

Categories
broadband Business ofcom

BSG (Broadband Stakeholders Group) Heads North to Talk COTS (Commercial, Operational and Technical Standards)

I suspect this post title is gobbledegook to some readers. I’m continually having to learn new acronyms myself.

COTS in this case stands for Commercial, Operational and Technical Standards for Independent Local Open Access Networks. It is the latest initiative by the Broadband Stakeholders Group to promote a standard approach to the delivery of the plethora of ad hoc networks that are going to be springing up in the UK in the wake of Digital Britain.

This is to be applauded and on Thursday 3rd of September the BSG is visiting Hull to hold a town hall meeting (it is literally in Hull Town Hall) with the citizens of the North who have felt very much left out of the debate on how to make rural broadband a reality.

The day is split into a colloquium in the morning with the actual COTS meeting starting at 1.30. The COTS agenda is still fluid but an outline is shown below.

COTS Project overview (BSG, 15-20 minutes)

Stakeholder panel (5 mins each)
Ofcom
KCOM – Guy Jarvis,
Fibrestream – Lindsey Annison
INCA – TBC

Discussion – topics

General discussion on the concept

Are we on the right track? Right objective, right diagnosis of the issues?

The scope of the work

Are the three elements right? Should we focus on particular issues? Anything else we should consider?

Initial thoughts on requirements

What do participants need a solution to be able to do?

Thoughts on the commercial, operational and technical requirements

Views on solutions

Blue sky thoughts, to put ideas forward

Views on the process

Any issues with how we plan to take this forward?

Thoughts on the steering group

Views on membership/composition

Role/remit, how it should operate

The meeting is free to attend. I’d go myself but have a prior appointment in London. I’m sure Lindsay Annison will provide me with some feedback.

Categories
broadband Business internet

The European Commission has Issued its Digital Competitiveness Report

The European Commission is claiming the credit for increasing internet usage in Europe.  In its Digital Competitiveness Report, published a few days ago, it said “the number of regular internet users has increased from 43% in 2005 to 56% in 2008”. Apparently it is all down to it’s i2010 Strategy formulated in 2005.

Fair play to them, I say. Next time someone tells me that YouTube, Facebook, myspace, iPlayer et al are responsible for increased internet usage I will know how to respond 🙂

The report also goes on to say that “the market for mobile phones has exceeded 100% penetration — increasing from 84% of the EU population in 2004 to 119% in 2009. This makes Europe the world leader in mobile penetration, as the rates in the US and Japan are around 80%.

Consumers spend more time talking and texting at prices at least 34.5% less than in 2004, including a 70% drop in roaming charges since 2005.”

At least it is fair to give the EC the credit for the drop in roaming charges. It does amuse me, however, to think that you can have over 100% market penetration. I know this means people have two phones but it doesn’t quite sound right does it?

Categories
broadband Business internet Regs

Digital Britain Broadband Implementation Plan

Digital Britain publishes 18 headline projects, evokes thoughts of Russian WWI mobilisation plan.

You will all be interested to know that the Government has published its Digital Britain broadband implementation plan.  It’s a headline set of actions that reminds me of why I am not a civil servant.  It makes me think of the Russian mobilisation plan of the first world war for some reason.

Anyway, the Digital Britain broadband implementation plan contains 18 headline projects including a catch all called “Other Relevant Activity”.  Two of them are ones I have been commenting on relating to Next Generation Broadband and Illegal File Sharing.

I just noticed that the timeframe given for 90% penetration of Next Gen broadband access in the UK is 2017.  This is so far into the future in in internet terms as to not matter. I imagine they will have invented teleporting by then which would be ideal for rural dwellers but of course it won’t be availabe to them!  Meanwhile I can envisage a Government celebration party being held to celebrate the 90th percent being hit for what will by then be ultra slow broadband.

Also of interest is the presence of Martha Lane Fox on the Programme Board.

Categories
broadband Business

Post Office Tower

I have to extend my thanks to BT who were my hosts atop the BT Tower in London yesterday.  It was a beautiful afternoon with great visibility of all of London’s well known landmarks.

It is also a stunning place for corporate hospitality and the food was as good as you would find in any top restaurant. We took some important PWAN customers along and had a very useful working lunch. What’s more we had it for our own exclusive use!

Members of the public are not allowed up these days so one of the few ways you can get there is by becoming a Timico customer ! 🙂 . 

Special thanks go to Victoria Bradley at BT Wholesale who is a class apart as an account manager.

Categories
broadband Business internet Regs

Stephen Timms MP to Become the New Communications Minister

Stephen Timms brings significant telecommunications industry experience to his new Communications Minister role.

I understand that Rt Hon Stephen Timms MP is set to become the new Communications Minister, with responsibility for taking forward the recommendations of the Digital Britain broadband review. The position had been vacated when Lord Carter stepped down following the publication of the Review. It is likely that the role will change slightly, given that Mr Timms will sit jointly across the Department for Business and the Treasury, whereas Lord Carter’s position sat jointly across the Department for Business and the DCMS.

A former Internet Hero at the ISPAs, Stephen Timms brings significant experience to the role having worked in the telecommunications industry before entering Parliament and having previously served as a Minister with responsibility for e-Commerce at the DTI and BERR.

Whether the treasury connection will have any relevance remains to be seen.  I see one of the biggest challenges for this Government is going to be how it faces up to the need to invest massively in the Next Generation Access network (ie fibre).

Whilst I was on holiday I visited my in laws in Liverpool. Grandad had saved me an article from the local paper describing the outcry amongst Liverpudlian councillors when they found that BT’s initial £1,5m investment in Fibre To The Cabinet was not going to be gracing their fair city with it’s presence whilst favouring local rivals Manchester.  Nonsense I cried and reached for my BT FTTC broadband rollout map (never go anywhere without it).

To my surprise, he was right. All the dots identifying the initial (spring 2010) roll out sites come no closer than Altrincham. The good burghers of Liverpool should not feel that they have been singled out, because there will be huge swathes of the UK left out in the high speed broadband cold.  I don’t for a moment blame BT, although I’m sure that competition from Virgin will in due course give them a bit of a prod in the right direction.

This is why I say that the Government has a lot to do in this space, and why I wish Stephen Timms every success in his new role.

Categories
broadband Business

Broadband Network Traffic Peaks

I have occasionally written posts concerning the rise in internet traffic when there have been major world events.  Of course this included last week’s Wimbledon antics.

I thought it would be interesting for people to see an overlay in broadband network traffic week on week to see what a “normal” week would look like compared to a high traffic week.

The chart below shows last week’s Wimbledon peak traffic profile in the slightly lighter grey compared with the previous week’s.

wimbledon1

It’s a bit dark but if you click on the image a couple of times you should get a large enough view to see that when “our Andy” took to the court on Friday the traffic shot up by 30% compared to the same time last week.

The purple line at the botton represents an old low capacity 155Mbps BT Central pipe that is being decommissioned next month.  These older pipes struggle to cope with high network demand.  The 155 is being replaced with more 622 capacity.

Categories
broadband Business internet

Andy Murray Drives Broadband Network to a New High

Our broadband network usage hit a new high yesterday as Andy Murray wallopped Juan Carlos Ferrero in straight sets at Wimbledon.  The peak remained at a constant high between 4 and 5pm, at which point presumably everyone left the office and watched it at home because the network traffic dropped right off.

My understanding is that whilst an ISP’s network might well have been able to cope with the added traffic levels some problems were caused at  local exchange level where virtual paths were seeing congestion. The virtual path is the backhaul from exchange into the BT network and on to the internet, and in this case to the BBC website.

BT’s new 21CN network should be better placed to withstand this sort of traffic burst.

Expect another peak when “our Andy” plays in the semi final.  I feel as if I have known him all my life :-).

Categories
broadband Business internet ofcom

Initial Take on Digital Britain Report

2Mbps Universal Service Obligation by 2012.
This is the minimum that people need to get into the game. In the report the government recognizes that whilst much of the country will shortly be getting access to faster broadband (aka BT 40Mbps Fibre To The Cabinet or 50Mbps Virgin cable) a significant chunk won’t, which will exacerbate the Digital Divide.

The Government is therefore looking to promote/fund the extension of this Next Generation Access network into these “excluded” areas. I have been saying that 2Mbps is not enough and it is good that the Government clearly recognizes this.

The funding for the rural Next Gen broadband access is likely to come from a complex variety of sources. It includes a new tax levied of 50 pence on every copper phone line. I assume it includes Virgin cable connections to keep the playing field level. This will have to be passed on to customers so the immediate effect is a rise in the cost of broadband. It will also add to the overheads of the ISP which has to collect it.

The funding collected will be available on a competitive tender basis. I would expect the Government to somehow identify specific projects for funding and make the moneys available for competitive bids. Otherwise someone with BT with the massive resources available to put specific projects together would cream all the cash.

Music Piracy
Two things to say here. The Government recognizes that access to legal means of downloading music needs to improve which reinforces what the ISP industry has been saying (note the many blog posts on this subject).

Secondly the Government also wants a more graduated approach to punishing illegal downloaders. The three strikes and you are out approach has been replaced much to everyone’s relief.

We now appear to be looking at a scenario whereby the ISP would send a letter to the end user informing them that they have been identified as offenders. The next step would be to throttle the bandwidth available to users indulging in this activity or block P2P. The final resort would be legal action.

A cautionary note here. Most ISPs cannot easily block P2P. Only those big consumer players typically have the kit that can do it. Are we looking at the same scenario as the Data Retention Act where the Government only expects an ISP to follow the law only if specifically asked. In this case the ISP would have to be funded to do it.

There is also a fairly significant onus on Ofcom to make all this happen which is going to be an interesting play. I imagine it will take no small level of resource which probably doesn’t currently exist.

All in all I think this is a good report.  There were always going to be difficulties with putting together a document with such a wide remit and I’m sure that as we get time to digest it other questions will arise.  However Lord Carter should be able to move on to his fresh challenges with a reasonable sense of satisfaction.

Categories
broadband Business Regs

Digital Britain Final Report Delayed a Few Days

BERR on Friday issued a statement to say that the Digital Britain Final Report will not now be released on Tuesday as planned. Instead it is being presented to the Cabinet tomorrow and will be released later in the week.

There is also a meeting between Lord Carter and a few industry representatives tomorrow afternoon.  ISPA is being represented at that meeting so I will report back later.

There is a huge amount of expectation surrounding the publication of the Digital Britain report.  We think we know what is going to be in it but can’t be sure. However it turns out I’m sure it is going to spark a huge amount of debate.  Let’s enjoy the last few days of peace before it hits the street 🙂

Note the BERR statement isn’t actually a BERR statement. It is a Joint statement from Departments for Business, Innovation and Skills and Culture Media and Sport. I’m not politicaslly motivated but this does seem ridiculous. BISCMS ?!!! I could only just get my tongue around BERRRRRR.

Hot off the press – apparently the report will now be available on the DCMS website at 3.30 pm tomorrow.

Categories
broadband Business internet ofcom

Broadband Internet Access. Ofcom says 1 in 5 of Households Without Will Get It Within 6 Months

Ofcom says Broadband Internet Access is coming to 1 in 5 currently without it.

An Ofcom study suggests that 2 in 10 people without broadband internet access at home intend to get it within the next six months.  They say that 70% of us already have it (68% broadband internet, 2% narrowband!). So the 20% of the remaining 30% suggests that 6% of the whole population will rush to sign up in the next 6 months.

That’s a fairly significant number of people signing up for broadband internet access.  Being a bit of a sceptic sometimes I did read the report (exec summary anyway, me being an exec and all) to see whether I could believe it.

Actually, there is one simple metric that does tend to support the number:  growth in people with PCs at home. The chart below shows the growth in fixed, mobile, internet and PC use at home.  You can see that a significant 4 percent of people have a PC but not an internet connection. That together with a continued growth trend does suggest credibility.

Note the flat mobile growth and the gradual decline in fixed line.

ofcom broadband internet access

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broadband Business internet

BBC Claims BT is Throttling iPlayer

The BBC has an article online regarding the fact that BT is broadband throttling the iPlayer traffic of customers taking “Option1”.  Option1 appears to be BT’s cheapest broadband package at 8Mbps with a 10GB download limit.

I’m afraid that it is a fact of life that ISPs cannot afford to keep providing the services they do at the prices they do without some element of constraint over what consumers can download.

BT’s website does have a long list of caveats for its broadband service. They are quite open about the fact that they “network traffic manage” P2P and video streaming between their peak hours of 5pm and midnight although you might argue that the fair usage policy has become quite a complex one for people to understand.  Also whilst openly promoting the fact that users can watch online TV they fail to mention that only the lowest quality iPlayer setting is accommodated at these peak times.

The problem is about to get worse as higher speed 21CN connections become more prevalent and trials about to begin on 40Mbps services using Fibre To The Cabinet. Customers will expect to be able to get high quality video streaming  with these services.  Indeed video and likely HD video, will be one of the drivers for uptake of faster broadband.

Note whilst checking out the BT website I observed that the company sells its 10GB download limit as the equivalent of 2,500 music file downloads, 14 videos or 25 hours of streaming iPlayer a month.

This riles the music industry no end.  Does anyone believe that consumers download 2,500 “paid for” music files?  Is BT inadvertently helping to promote illegal P2P filesharing here?

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broadband Business internet

Broadband Fibre Farming Tails – The Happy Ending

Last episode from the broadband fibre network laying story that has gripped the nation (see earlier posts here and here if you missed them). I am pleased to say that it has a happy ending, and Wennington now has two more users connected by high speed link to it’s network. Shame about the 2Mps backhaul.

As I write, I understand that the Digital Britain Report has been completed and is awaiting publication on 15th June. I believe it has the 2Mbps USO clause in it, and also some support for Next Generation broadband access in rural areas. Whether this is new money or simply rebranded existing EU funding remains to be seen. Let’s hope this broadband fibre video story becomes a quaint historical note sooner rather than later.

Anyway here’s the video.

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broadband Business internet

Farmer Rolls Out First Rural Broadband Fibre Network as Digital Britain Takes Too Long

On the hills high above Wennington in Lancashire the local community is taking its internet destiny into its own hands and is laying broadband fibre.

The Wennington/Wray communities were no hopers when it came to the provision of ADSL so in 2005 they were awarded a £25k grant by the North West Development Agency to roll out a 2Mbps symmetrical mesh wifi network. The initial 12 users charged themselves £25 a month which provided a kitty for further expansion of the network to 22 endpoints.

They are now at the point where the remaining 30 homes/businesses are out of reach of wifi and the only way to get connected is by using fibre.  The YouTube video, hot off the press this morning (thanks to Lindsey Annison for that), shows the first cable run being laid.

This is initially an experiment to get to understand the costs involved before deciding when to add more locations to the network.

The network is a huge boost to the quality of life in the community allowing workers to stay put instead of commuting as far afield as Manchester and Edinburgh.

It is clear from the numbers here where the issue surrounding Universal Service Obligations being discussed in the Digital Britain Report reside. That initial £25k served 12 users –  just over £2k each – which realistically can never hold down a business case based on £25 a month. Being generous that probably would result in £1,500 Gross Margin pa which will never repay the initial investment.

There are problems for the community in increasing the size of their 2Mbps backhaul. A 100Mbps link to Lancaster would cost £76k to install with a £64k pa ongoing cost. This is almost an order of magnitude higher than the same connectivity in large metropolitan areas that would also have many more users at the end of the line.

It ain’t going to happen without Government assistance and I believe that it is key to the economy for UKplc to provide this. Now is the time to make it happen.

Find out more on the Wray village website with thanks to cyberdoyle for the info and  Fibrestream, Lucidos and Optech Fibres who have helped with this initial fibre project.

Check out the promo video of the initial project here.

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broadband Business

21CN trials successfully completed

Yesterday I signed off our ADSL2+ service for production. As one of a small number of ISPs selected by BT for the trials we have been careful not to rush too quickly into using the 21CN network. As it was new we felt it was important to make sure that the customer experience matched our own business quality requirements.

After a few hundred trial connections we have been getting more of a feel for the actual performance capabilities of the network.

ADSL2+ is marketed by some ISPs as a 24Mbps technology but in fact it is unlikely that customers will achieve such high connection speeds as the actual speed achieved is very dependent on the customer’s distance from the exchange and the quality of their line. Because of this, we are promoting our offering as an “up to 16Mbps” service. As with existing ADSL connections, users experience a range of speeds. The highest we have seen so far is 19Mbps so there is a chance that people could get a faster connection than advertised.

Transparency for business customers is very important, as is responsive and professional support. I am extremely proud of the technical service levels which we provide free of charge to customers. Timico operates exclusively in the UK with its own in-house staff, rather than outsourcing customer support functions to UK or overseas contractors.

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broadband Business internet ofcom

interview with Sebastien Lahtinen of thinkbroadband.com

Hard as it may be to believe ADSL has been around in the UK for 10 years or so. In this time we have seen big changes in the industry. Market penetration has reached 58% of households (Ofcom 2008 review) and we are onto our third generation of technology.

Sebastien Lahtinen is known to many as the driving force behind thinkbroadband.com and before that ADSLguide.org.uk. As such he has been at the heart of the UK broadband industry as both an observer and participant since its beginnings.

TD Seb, tell us a bit about how you got into the broadband industry and what inspired you to originally found ADSLguide.org.uk

SL Back in the late nineties I was looking to get onto a cable broadband service but my cable operator Nynex (which became C&W, then NTL and now Virgin Media) wasn’t offering the service in my area. I then heard about this ‘ADSL’ technology and that Demon Internet was running trials in some areas. Whilst I couldn’t get onto a trial myself, John Hunt, a good friend of mine who started the site up with me was able to do so.

I felt that that there was a need for somewhere impartial for users to go, to find out about this new emerging technology. Of course these days, the providers have perfected their support and provisioning systems so our role has slightly changed. We now have to serve a far wider, less technical, user base.

TD ADSLguide.org.uk morphed into thinkbroadband.com. This was mainly because adsl was no longer the only driving technology in this space. Has this made a difference to how the website is perceived/used.

SL There are still people that consider us as an ‘ADSL’ site but we’re working hard to cover other broadband technologies including cable and mobile broadband. Our staff obviously understand the development and background of ADSL technology far better, but we are trying to build relationships with non-ADSL providers so we can offer users the best advice no matter what technology they want to use.

TD What makes thinkbroadband different to all the other comparison sites that now exist?

SL We don’t regard our site as a ‘comparison’ site in that we set it up to provide users with information about broadband generally, not just as a way comparing service providers. You can see this by comparing our front page which is more about news than trying to get you to switch service provider. Obviously, the ability to find a suitable supplier is part of what we do, but it’s by no means the primary role of the site.

The majority of the broadband sites out there (with ourselves and ISPreview.co.uk being obvious exceptions), were set up when service providers started offering commission for websites which referred a customer to them. In fact, this is the business model on which they operate. Some of them even compare insurance, credit cards, etc. as well.

Obviously, we have costs too and we need to ensure we can pay for those big servers that run the speed tests and to employ staff who can help to improve our site, but the major difference between us and most other sites, is we set the site up for the community, rather than as a business, and most of us are still doing this part time alongside full time jobs which pay our salaries.

TD The site has become very popular and this must put strain on your infrastructure. How did you manage the growth?

SL Around the same sort of time in early summer of 2000, I co-founded a hosting business with Jeremy Ainsworth who also got involved in ADSLguide. In fact, our very first server dedicated to serving ADSLguide was a spare box Jeremy had available which we put into Telehouse. We kept throwing more resources at it as it grew.

Our forums too gained their own momentum and we started seeing load issues when Pipex users took over the forums following some heated discussions about their service. David Rickards of Pipex was kind enough to donate a new server to us which helped us grow the forums to the next phase.

We started providing speed tests, and much more and our infrastructure had to grow with that. This is still very important to us to ensure we can deliver the fastest and most reliable speed test services.

TD Since that time what are the milestones that stick in your mind that measure the development of broadband in the UK

SL I think the first key milestone was when BT introduced the ‘wires only’ install which meant you didn’t have to use the ‘Alcatel frog’ (or ‘stingray’ as some people call it) with drivers that didn’t always work and the setup fee dropped from £150 to £50 making the service more universally affordable.

The second milestone I believe was BT’s “Broadband Britain” campaign which encouraged communities to get involved in raising broadband take-up and getting virtually all the exchanged enabled.

The third was the introduction of rate-adaptive ADSL and what we now know as the ‘up to 8 meg’ services. Since then, many other providers have started pushing the speed boundaries with LLU and especially recently Virgin Media on its 50 meg service too.

I believe the next challenge will be bringing those who are currently outside of broadband coverage into the digital world.

TD We are now seeing the Government talking about Universal Service Obligation concerning the provision of 2Mbps broadband to all homes. Do you believe this is practical?

SL We do believe that a USO is absolutely necessary and that the level at which it is set should be reviewed regularly. Our current concern is more for those who cannot get any broadband service, than those who are stuck on say 1Mbps services, as this is a far more fundamental problem that needs to be dealt with as a matter of urgency. I could probably survive on a 1Mbps connection, but I can’t imagine living ‘without broadband’ at all.

We also have some doubts as to whether it is possible to simplify a USO as just “2Mbps downstream” service.  There are factors such as upstream speed, latency, jitter, etc. that could for example prevent access to next generation telephony service over the Internet which have the potential to revolutionise how we communicate. These don’t make as interesting a sound bite but they are still important.

TD As the internet becomes more important to our every day lives the Government is increasingly seen as becoming involved with decisions that affect the direction of the industry. Do you see this as good or bad and is it inevitable? What are your thoughts on the Digital Britain Report?

SL The Government has an important role in ensuring a regulatory environment which both fosters innovation and diversity of supply, but also protects those who may not have the resources or skills to protect themselves. However, it is important, that in achieving the latter, it does not stifle the former.

The Internet has developed in an environment with very minimal regulation and low barriers to entry, and it is these unique circumstances that have allowed it to develop so quickly. The Internet feeds on the concept of rapid innovation and improvement. One day you launch a brilliant new service; the next, your competitor has outdone you. It’s a bit like a car manufacturer being able to release a new updated model every week.

The way we think and use information since the evolution of the web has changed. We now combine information from different sources in new ways. This is only possible if those with an idea have the means and willingness to execute it. It does however mean re-thinking the way intellectual property rights are protected, both to preserve the incentive for those who work hard to benefit from their efforts, but also to allow for people to take advantage of new technologies without being criminalised.

In my view, the role of the Government is to encourage good practice and getting directly involved only where it is absolutely necessary to protect the interests of the country and its economy. So far, the UK Government has taken a ‘light touch’ approach which has helped us become a key capital at the heart of the Internet.

I suspect that Government will become more involved in the discussion about the future of the Internet as it is so fundamentally linked to the success of the country and the Digital Britain report is evidence of this. We also have to accept that there is a role for an entity to represent the interests of the minority who are unable to use the Internet for whatever reason. It is no longer sufficient for us to cover 99.9%; The Internet should be for everyone.

TD We now hear of talk of 1Gbps fibre to the home in Japan which doesn’t even appear on the long range radar here in the UK. How do you think the UK will fare in the international competitive stakes when it comes to internet technology.

SL The UK has a habit of comparing itself to other countries and being very negative about its position. The fact is, there is very little content on the Internet which can truly benefit from a 100Mbps let alone a 1Gbps connection today. Quite simply, the core Internet infrastructure can’t  cope with delivery this level of service on any scale at a price that most of us would be willing to pay.

I do however have concerns that we aren’t looking at a national fibre network more seriously. Whilst I accept that the needs of the next few years will be met by new ways to push more out of copper (both in ADSL and cable variants) and hybrid fibre-coax/copper solutions, sooner or later end-to-end fibre optic cabling will be needed and it is likely that this will require Government support by way of easing regulation or co-ordinating the efforts of communications providers to build an efficient and competitive network.

The reason fibre makes sense is because information travels along it at the speed of light so its capacity to deliver next generation services is far greater. The fibre optic cabling used to deliver 100Mbps or 1Gbps a decade ago is used to push multiple links of 10Gbps each today and 100Gbps in the not too distant future. It is a technology that is more future-proof than copper.

TD Finally would you care to make any predictions regarding the internet in the UK over the next year or two?

SL I think we will start seeing more new developments receiving next generation broadband services at up to 100Mbps in cities as the costs of linking these back to the data centres (the buildings where the ‘core’ of the Internet is based) is falling.

I also believe that the the much talked about convergence of technologies will start happening, initially with TV-on-demand services being delivered over the Internet to your set-top-box. Eventually (probably a few years later), I think Internet-connected fridges are likely to become more common.

TD Thanks very much for your time Seb.

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broadband Business internet

Advance notice of thinkbroadband interview

On Monday I will be posting an interview with Sebastien Lahtinen.  Seb is founder and CEO of thinkbroadband.com and has been commenting on broadband since its first introduction ten years ago. Look out for it because it should be an interesting read.

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broadband Business

21CN in Lincoln

BT’s rollout of 21CN exchanges continues and Lincoln is now up and running – hooray.

I can report that with my previous ADSLMaxPremium connection I was getting roughly 5Mbps.  I am now getting 10Mbps. At a guess I am 1km from the exchange.

In my book this is a worthwhile improvement.  If you live in Lincoln and want faster internet let me know.

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broadband Business internet ofcom

Cisco CEO John Chambers on Broadband

Hot on the trail of yesterday’s post on the Ofcom decision to waive regulations on the roll out of fibre to homes in the UK Cisco CEO John Chambers has written a guest post on Om Malik’s blog on a similar subject.

I had thought that the Obama stimulus package, which contains a substantial sum of money targeted at broadband roll out, was aimed at standard broadband speeds but it looks as if this is not correct.

It does make you wonder whether the government here in the UK will now look to subsidising the £29Bn it is estimated it will cost to get universal fibre coverage in this country.