One Small Step for Ofcom on UK Fibre

IanFogg | April 17, 2008, 01:32 PM

Ofcom has just announced a consultation into 'Next Generation Fibre for New Builds'.

Key points here, many have been missed by the press coverage:

• This is just a consultation, not a decision on how to regulate such networks.
• Looking at green field housing developments is the easiest regulatory aspect of fibre for Ofcom to consider, but it only covers a fraction of total households. For new build developments, there are no existing LLU operators using the copper telephone network that fibre would bypass, and no existing HFC cable networks (i.e. VirginMedia) that will lose catastrophic value when overbuilt by (true) fibre.
• Again, as ever, the UK is slow to the party with fibre. France, Sweden, Netherlands, Japan, even the US, as well as the rest, are and will remain, far ahead.
• The real reason for doing this consultation now, is the very small difference in cost for laying new copper vs fibre for green field sites, and not a business case on the revenue side (which is problematic). Additionally, there seems to be little real enthusiasm on Ofcom's part to assist with accelerating fibre builds by laying down clear ground rules for operators.
• Without an Ofcom statement on its fibre regulatory approach -- a consultation isn't sufficient -- it is impossible for an operator to create a solid fibre broadband business case.
• For the immediate future, UK residents will need to move house to receive fibre, for example to Ebbsfleet.
• When they happen, fibre broadband roll outs will inevitably lead to a new digital divide.
• For all the talk of fibre here, the UK's incumbent is astonishingly still to roll out ADSL2+ over copper.