Monthly Archives - March 2008

In a previous post I explored what the topics of discussion would be at the government’s Convergence Think Tank, and suggested that next generation access (NGA) would probably be a key secondary issue to public service broadcasting (PSB).

At the seminar yesterday, NGA was indeed discussed. It was interesting to see, particularly for someone fairly new to the debate, the level of interest and desire for NGA among the broadcasting world.

This isn’t surprising, of course, as it opens up a lot of avenues for them, but I was struck by one presenter’s firm conclusion that the PSB debate was the wrong focus for the future of the industry, and that superfast broadband was the most important next step. His view wasn’t necessarily shared by all in the room, but he wasn’t the only presenter to mention the importance of NGA.

Broadcasters aren’t the only industry who see benefit in NGA, and are clamouring for greater bandwidth. A key issue, though, is how will it be paid for. There is demand from industries and consumers, but is there a willingness to pay? This is a big question, and currently there is little hard evidence for investors to go on that suggest a return for their money would be likely.

The BSG’s ongoing research into the economic and social value of NGA has drawn on emerging evidence from the US, where Verizon have subscribers paying a premium for faster access over fibre. But until more is known about consumer willingness to pay, the business case for NGA will be difficult to make.

Peter Shearman, Policy Manager, BSG

STL, with their Telco 2.0 project, have recently published a report on Future Broadband Business Models titled ‘Beyond Bundling: Growth Strategies for Fixed and Mobile Broadband‘.

The report provides significant food for thought for everyone in the broadband value chain. Fundamentally, the report suggests that Telcos need to adopt two-sided business models that make more use of assets they have which they currently don’t exploit. STL estimate that there could be as much as $250bn in these new business models.

STL are providing the opportunity for the industry to discuss these ideas, and others, at their next Telco 2.0 Executive Brainstorm. The 4th in the series, the event aims to draw together everyone in the value chain, from telcos and content providers to regulators and investors, to discuss the future of the industry and the shape of the market to come.

The BSG are supporting the event. For further information regarding the Telco 2.0 4th Executive Brainstorm, please visit the Telco 2.0 website.

STL Telco 2.0 report overview

Many of you will have noticed the adverts currently being run by a particular ISP, which focus on the superior speed of its fibre-based network.

This campaign taps in to the importance consumers appear to place on speed – as is demonstrated by a recent BBC Online readers’ debate about Next Generation Access.

However, while headline speeds are obviously important to consumers, particularly when they are not receiving what they feel they are paying for, download speed is not the only important characteristic of a broadband service. There are other characteristics of an NGA network that will provide value to users.

For example, although demand for faster downstream speed is uncertain, there is more certainty about the need for greater upstream speed given the increase in user-generated content. ADSL and ADSL2+ technologies, however, allow a median upstream speed of less than 1mbps. Users would almost certainly benefit from a greater upstream speed.

NGA is about more than just increased headline download speeds.

NGA is commonly now being defined by a set of attributes relating to, for example, improved quality of service, consistency of bandwidth across users and time, less interference, lower latency, and greater symmetry between upstream and downstream speeds. These characteristics, and others, would improve the Internet experience and provide value to users.

Faster downstream speeds are certainly not the only benefits from moving to an NGA network. It is important that the benefits of the other, less-discussed characteristics are captured in the debate, as these will make an important contribution to the enhanced user experience that NGA networks will provide.

Peter Shearman, Policy Manager, BSG

The Department for Communities and Local Government has released guidance on ‘Data Ducting Infrastructure for New Homes’.

The note provides guidance to housing developers who intend or who wish to consider the laying of ducting on development sites, and within dwellings, for the delivery of data services.

The practical guidance in this document aims to:

• give developers the opportunity to consider the installation of infrastructures within new developments and dwellings to support the later provision of data services by third parties
• reduce the risk of ‘non-standard infrastructures’ (for example using ad hoc ducting types and topologies) leading to future incompatibility issues within different developments.

The guidance is not technology or service specific, neither is it intended to promote any particular cabling type, wireless solution and network technology or data service. Rather it aims to be generic to enable developers to make their own informed choice of the infrastructure model that is best suited to their development.’

DCLG guidance on ‘Data Ducting Infrastructure for New Homes’

The government recently announced an independent review of next generation broadband, to be led by former Cable and Wireless CEO Francesco Caio.

The BSG welcomes the review. The terms of the review build on a number of the issues we highlighted in the Pipe Dreams report, and will complement ongoing work by the BSG.

We have long called for government to review such issues as the non-domestic rating of fibre, and are pleased that this and other issues are now being seriously examined.

While the review will not by itself bring about NGA in the UK, what the announcement has done is give momentum to the issue.

From the BSG’s perspective, what is important is that this momentum is made use of fully to create the right conditions for timely and efficient market investment in NGA.

Peter Shearman, Policy Manager, BSG