Posts Tagged ‘Virgin’

Freshtel leaves Tesco in lurch

Thursday, April 15th, 2010

Tesco has been using Freshtel as the underlying provider of its VoIP service. Unfortunately the Australian VoIP company announced in March that it was closing its UK operations – something to do with an operating loss of $1.25m.

Tesco service is now apparently scheduled to be shut down on the 27th April. Nobody knows how many customers are affected but the Tesco was aggressively marketing the service for some considerable time so it could be quite a few.

The biggest problem is that Freshtel, being an Australian company and moreover  not being an ITSPA (Internet Telephony Service Providers Association) member, did not have any porting arrangements with anyone in the UK. Ofcom are looking into it but time is short.

I understand that Tesco is talking to both Virgin Media and Cable and Wireless to try and find a solution.  If one of them already hosts the Freshtel number range that could be an easy way out.

The situation is however further complicated by the fact that Tesco not only used low cost equipment at the customer premises but it is also locked to the Tesco service so that changing the VoIP service information for a new service provider is not easy or straightforward.

The whole subject of number portability is still an issue in the UK. Large service providers (BT, C&W et al) have no incentive to make it easy.  They are the likely losers in the portability game.

Although on the face of it these service providers do say that they are willing to engage with other ITSPs in the interest of the customer the reality is that as large organisations they are a) staffed by teams of lawyers who have their jobs/reputations/companies to protect and b) often reluctant to deal with very small organisations who could go bust at any time and leave them with liabilites. These are actually quite understandable problems for large companies.

Dealing with a member of ITSPA notionally does mean that porting to other companies should be relatively easy but it is still early days and the system is not yet necessarily smooth. ITSPA has been campaigning for a standard porting contract to be made available for everyone in the industry to use.  This almost certainly won’t interest the big boys but it could at least make setting up porting arrangents generally easier for everyone else. I’ll report back as I see progress being made here.

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O2Be and the ever growing complexity of the broadband landscape

Monday, October 5th, 2009

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 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 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 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.

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Initial take on Digital Britain Report

Tuesday, June 16th, 2009

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 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.

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Virgin agrees anti-piracy music deal

Monday, June 15th, 2009

Virgin has announced a deal with record label Universal that will provide unlimited access to the company’s music catalogue for a fixed monthly fee.  The level of this fee is as yet unnanounced but is reckoned to be the equivalent to the cost of two albums. The service will be available by Christmas 09.

The biggest aspect of this news is that Virgin has also undertaken to attempt to tackle the problem of online music piracy with the ulitmate disconnection a potential penalty for persistent offenders.  This appears to be a big step forward and is likely timed in advance of the Digital Britain report, delayed now until later this week.

This deal is likely to bring pressure to bear on other large consumer ISPs.  It does remain to be seen how the removal of broadband service from persistent pirates (to put it poetically) is handled.  This has been the one aspect of the debate that has had ISPs up in arms. They don’t want to be seen to be doing the police’s job.

The Virgin paid for model is of course different to the We7 advertising funded service discussed last week. The whole area is of a great deal of interest to many people.  My We7 posts get more hits than any other published item on this blog.  Helped no doubt by the fact that I have been giving away free We7 promotional codes :-) .

If you want one let me know. I got a fresh batch in recently.

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Ethernet in the First Mile – EFM

Thursday, June 4th, 2009

I’m happy to say that Ethernet in the First Mile is starting to get customers excited. EFM?  Yet another !”£#@ acronym do I hear you say?

Yes and actually EFM is quite an exciting proposition in 21CN enabled exchanges around the country. That’s around 600 now with notionally 1,100 by the time BT has finished the rollout.

EFM is a copper based Ethernet service to the customer, capable of carrying high bandwidth connections without the need for fibre into the customer premises. It provides “up to” 10Mbps (<3km from the exchange).

The beauty of the technology is that it bundles up to 5 copper pairs from the exchange to the premises to attain the bandwidth throughput. If any of these pairs “go down” then the service will rate adjust to a lower speed based on the remaining circuits rather than failing completely.

Whilst customers don’t necessarily get the reliability and uptime of a fibre leased the EFM circuits are considerably cheaper with much faster installation lead times (and don’t get me wrong – I’m not saying EFM is unreliable – it’s basically the same as ADSL).

What’s more we can incorporate EFM connections into an MPLS VPN/PWAN.  EFM gives businesses far more flexibility in the type of circuits they can build into a network design.

It does strike me that anyone thinking of getting into the ISP business these days is onto a loser.  Timico has its own direct connection to BT for EFM.  This is in addition to circuits for SDH, framestream, Ethernet, SDSL/ADSL, ADSL2+ and 3G (wireless). 

We also have direct connectivity with BT Wholesale, BT Openreach, Telewest/NTL/Virgin (whatever you are used to calling them), Global Crossing, Claranet, Tiscali (ahem) and Cable and Wireless, notwithstanding our links to transit providers and peering exchanges such as LINX.

I’m not saying that the situation is different to what it was like 5 years ago when Timico started. At that time our decision was to buy Atlas Internet to get into the game and since then we have added two further acquisitions.  The complexities and the scale required to be competitive have however changed.

Our first BT central pipe (ie wholesale ADSL connection) was a single 34Mbps link.  Now we are into multiple 622Mbps and multiple Gigabit fibre.  These represent large cost commitments that new entrants should balk at or at least recognise that they would have to have very deep pockets.

Note 1  !”£#@  = “bloomin”

Note 2 apologies to friend and blog reader Dan Ellin who has made some comments on Facebook regarding the number and incomprehensibility of acronyms in this industry :-)

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interview with Sebastien Lahtinen of thinkbroadband

Monday, April 27th, 2009

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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ASA upholds BT complaint about Virgin

Wednesday, July 2nd, 2008

Virgin has been told off by the Advertising Standards Agency for not telling the truth regarding the speed of its broadband service. Its the consumer versus business ISP proposition again. Virgin didn’t tell users that it caps some users at peak times. I’m sure that Virgin will “get them back” sometime soon :-) .

Full story is available on the BBC website.

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Who pays for Next Generation Broadband?

Monday, June 23rd, 2008

Interesting enough debate at the Waldorf Astoria hotel in London today with the latest Telecommunications Executive Networking bash. The subject was NGN broadband and specifically who is going to pay for it.

 

The debate was prompted by the BT position that the UK regulator OFCOM does not allow the company to make return on investment to justify spending money on an NGN network.

 

Panelists included Andrew Heaney from Carphone Warehouse, Kip Meek from the Broadband Stakeholders’ Group and David Campbell, Director of NGA at Openreach. It is actually a complex and highly politically charged subject when you take into consideration that BT (Openreach) has Universal Service Obligations.

 

In short the assembled masses, the great and the good of the UK Telecommunications industry, concluded that they wanted an NGN network to be privately funded.

 

A few interesting points came out of the meeting. Of the two hundred or more attendees the majority of them were equipment vendors. There can’t have been more than ten or fifteen hands up from ISPs. I’d have thought that the ISP community would have been more interested than this turnout suggests. Perhaps this is because there are few (if any) ISPs who could afford even to consider investing £12 billion in a high speed broadband network. No one is going to be able to do it alone.

 

There seemed also to me to be a level of ignorance as to why a high speed (100Mbps) network might be wanted. What applications would drive this they were asking?  In my experience at Timico once people get given higher speed access they find ways of using it. The move from 2Mbps ADSL to 8Mbps (up to J ) ADSL Max prompted a large increase in average usage per tail.

 

Andrew Heaney could see that a NGN would be required but that this wasn’t going to be for some time to come. He intimated that he would be looking to begin looking at such a network in a 2 – 4 year timeframe. He also suggested that traffic was doubling every two years. This is slightly slower growth than others in the industry are forecasting.

 

Whilst the chicken and the egg come into this calculation to some extent my rough back of a beer mat calculation goes like this.  Traffic doubling every 2 years is the same as being given double the download bandwidth in the same timeframe. On this basis the arrival in 2008 of (up to) 24Mbps  should prompt the need for 48 Mbps in 2010 and 96Mbps in 2012. This isn’t particularly scientific but it does provide a rough guide to the way that market demand could go.

 

There isn’t a plan on the table today for 96Mbps but 50Mbps is available now from Virgin. If anything would be geared to make the board of BT press the investment button for NGN it would be seeing their market share going to Virgin.

 

Practically everyone in the room said they would be prepared to pay the additional £8 a month for NGN broadband that the £12bn investment is supposed to mean. Of course this is easy for a room full of well paid company directors to decide, The Openreach position is that the value in the market has disappeared and that consumers have been lead to expect faster broadband for less money.

 

We shall see. Interesting times ahead.

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Heaviest Virgin Media downloaders face new daytime go-slow

Friday, May 30th, 2008

This is an article reproduced from The Register.

It is basically a perfect advertisment as to why people should use a quality ISP as opposed to a “pile it high sell it cheap” operator. Timico’s policy is that “we don’t throttle….. we just ask users to pay a usage based surcharge if they choose to use a lot of our bandwidth….SIMPLE!”

If business users chose to go with an ISP who operates the type of policy outlined by Virgin below then they are going to get a non optimal experience.

the story goes

Virgin Media will double the number of hours it throttles the bandwidth of customers who hammer its network day and night, changes to its traffic management policy have revealed.

The tightened regime means that between 10am and 3pm subscribers to its “M”, “L” and “XL” packages will have their connection throttled for five hours if they download more than their full speed ration.

The decision follows recent regional testing of extended restrictions in London and the North West. Previously the brakes were only slammed on for five hours if limits were exceeded at any point between 4pm and 9pm.

Now, “M” customers who bust 900MB during the day will have their theoretical maximum download halved from 2Mbit/s to 1Mbit/s. “L” and “XL” users’ usual headline speeds of 10MBit/s and 20MBit/s will be slowed by three quarters if they break daytime download limits of 2400MB and 6000MB respectively.

The download thresholds for the daytime throttling period are double those of the evening period, which also restricts uploads. We’ve reproduced Virgin Media’s explanatory table below:

Virgin Media says that at current levels of demand, one per cent of its 3.8 million customers will be affected by the new daytime restrictions. In the evening, when ISP networks are under most strain, traffic limits are aimed at the top five per cent heaviest users.

A spokesman said the new rules are necessary to ensure quality of service for the majority. The move will nevertheless anger some who have been tricked into believing that “unlimited” broadband actually exists by years of crummy marketing by the ISP industry.

The cable monopoly, created by the merger of NTL and Telewest in 2006, is currently working to boost its top speed to 50MBit/s as part of its strategy to put broadband at the centre of its quadruple-play offering. recent trials to ramp Virgin Media’s 10Gbit/s backhaul to 40GBit/s in support of the upgrade were successful. ®

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