BT’s ‘High Fibre’ Diet

BT’s declaration to supply super-fast fibre networks to 10 million homes by 2012 has caused much consternation and speculation in the telecoms sector.

A number of major players have backed BT’s incentive, but questioned its motives where market share is concerned.

Will your ISP adopt this new technology, or be left lagging behind? Here’s a round up of how four leading ISPs reacted to the prospect of superfast 100Mb networks, and described their level of participation in this movement.

O2 Broadband

O2 is tentatively considering the option of supplying 100Mb to homes via BT’s proposed fibre network, but needs concrete promises from BT before it gets the cheque book out.

An O2 spokesperson told ZDnet.co.uk the following:

“We need clear and unambiguous regulation in place before we start shelling out huge sums of money.”

Be Broadband

Be Broadband’s Oli White is similarly wary of a BT monopoly, but would be glad to hop on board given the necessary assurances.

He told BroadbandChoices:

“If BT follows the same model as we have in place now it will allow Be to offer more than 20meg broadband to far more than the existing 6% of the population. But if BT is allowed to take advantage of its monopolistic position and prevent ISPs like Be from delivering an exceptional service to customers, it will be a missed opportunity.”

Virgin Media

In terms of delivering super-fast broadband, Virgin Media has a two year head start on BT and will introduce a 50Mb service within the next few months.

Despite the ‘head to head’ nature of its relationship with BT, Virgin Media is, at the very least, backing BT’s intentions. A Virgin Media spokesperson had the following to say:

“We strongly support BT’s call for a stable regulatory environment that rewards both current and future investment. We will continue working closely with Ofcom and the government to achieve this.”

Sky

Sky went on the front foot by challenging Ofcom to maintain the competitive climate in the broadband sector. A Sky spokesman said:

“BT has much to offer but consumers will lose out if the right conditions are not in place to allow other providers to compete effectively.”

Ofcom replied by assuring Sky and other providers it will provide additional regulatory detail following BT’s announcement, based on providing the right incentives for operators to invest. Additionally, Ofcom pledged to publish a more detailed proposal for the regulatory framework in September.

 What’s the outlook for mobile broadband?

‘Lies, damned lies and statistics’, a famous phrase coined by Benjamin Disraeli and popularised by Mark Twain to describe how inaccurate arguments can be given undeserved credibility by the inclusion of some persuasive statistics.

Factor in such variables as perspective, motives and spin, and it leaves you wondering just who is telling the truth?

I’ve read two very different angles on the same story today, the take-up rate of mobile broadband services since their introduction to the market late last year.

According to Ofcom, the rapid take up of mobile broadband is likely to accelerate the introduction of super-fast broadband networks in the UK, which is great news. Promising mobile take-up figures will be used as the carrot on a stick to encourage fixed-line operators to invest in next generation infrastructure.

However, over at Point Topic, researchers are concerned by their findings from a mobile broadband survey. Only 3 million broadband users in the UK are free roaming (about 6% of all adults questioned in a mobile broadband survey), with Point Topic suggesting it is only the privileged minority (young, well paid, well educated) who are plugging in their dongles and using their broadband connection on the move.

Based on these relatively underwhelming figures, how can Ofcom use mobile broadband uptake as ammunition to persuade industry figureheads to invest in fibre?

Well, the answer is quite simple, and this is where the damned lies and statistics come in. Despite Point Topic’s research presenting a compelling argument for slow mobile broadband uptake, the mobile broadband sector has actually experienced a period of unprecedented growth since spring 2008.

A recent YouGov report predicts a third of all broadband users will be hooking up via dongles by 2012. Moreover, as ISPs get wise to the mobile broadband growth spurt, faster download speeds, cheaper connections and more freebies/incentives will be established and offered. Mobile broadband will really become a force against the landline when these developments become commonplace.

So both sides are telling the truth, it just depends on whether your cup is half full, or half empty.