New EU Broadband Rules Put BT FTTC Project In Peril

Last week the European Commission (EC) outlined rules to govern the widespread deployment of high-speed broadband infrastructure. Overall this represents a positive development in providing clearer guidelines for Ofcom that should also trickle down to the consumer and businesses. However, it seems that there will be a number of knock-on effects, one of which may result in BT having to completely rethink its fibre rollout.

As a result of the broadband deployment timeframe proposed by the EC’s rules, BT’s original plans are no longer viable. In addition, the coalition government may find it needs to perform a u-turn on its basic broadband for all policy.

The minimum requirement of 30Mbps for all citizens by 2020 and the fact that 50 percent of all premises must have 100 Mbps in the same time frame are both incompatible with BT’s current plans. The majority of BT’s fibre roll out concentrates on FTTC, with only around 20 – 25 percent of the planned 66 percent coverage being genuine FTTP.

This means it would fail to meet basic requirements as FTTC still uses copper from the street cabinet and is based on rate adaptive VDSL2 which, in BT’s implementation, can vary from 15Mbps to 40Mbps depending on line length. Ofcom will more than likely be forced to regulate on this, as it has to take account of the EC’s recommendations and is required to justify any departure from them.

BT should begin to modify its plans now rather than waiting for potential regulation changes from Ofcom. The company’s NGA roll out has been pretty ambitious so far and could be made to comply with new obligations if amendments are made. For example, changing the ratio of FTTP to FTTC, plus increasing and bringing forward the amount of planned FTTP could have a dramatic effect.

Another issue stemming from the EC’s recommendations may include forcing a government policy change. The decision to postpone the Universal Service Obligation of 2Mbps for all to 2015 would mean, depending on the definition of ‘basic broadband’, missing the requirement to provide basic broadband for all by 2013.

One subject that has not been given much attention in these recommendations is the effect of contended (bandwidth sharing) networks. This leaves a number of questions unanswered and may lead to UK NGA Broadband non-compliance during times of high activity.

Recent events, including the World Cup and the general election, resulted in throughput dropping to only a few kilobits per second – a long way from the latest EC requirement for 30Mbps. Contention is a big issue and EC guidance needs to be given regarding how it will determine if speed requirements have been met. For example, will service providers be able to put forward misleading figures like those recently released by Virgin showing an average over an entire day and night? If contention is going to enter the discussion, some clarity on how and at what time it is to be measured would be useful.

Since joining Viatel, Steve has completely revamped the connectivity offering, creating one of the most comprehensive business broadband portfolios available in the market today. In the quickly developing world of Internet access, Steve works hard to ensure Viatel can provide market leading solutions, including Shared & Dedicated Broadband, Bonded DSL, and ADSL2+ and has worked closely with BT on the recent and ongoing UK FTTC/P trials. Bringing over a decade of industry knowledge to the company, Steve has held many senior product development and management positions within key IT and telecoms companies, including five years at Netcom prior to the Viatel takeover.

  • cyberdoyle

    haha, about time someone wrote about this, well done!

    We all need fibre to the home, and no more copper bottlenecks.

    If we are to compete in the digital economy we need an information superhighway that is fit for purpose, and BT need sorting out. All they want to do is protect the copper cabal and screw the golden goose to lay a golden egg big enough to pay back their pension deficit. It will never happen, the goose is dying of copper poisoning.

    chris

  • Nice one Steve!

    Cheers

    Neil

  • Somerset

    cyberdoyle continues to say everywhere that BT wants to keep a copper network. But BT say:

    http://business.timesonline.co.uk/tol/business/in

    BT’s key concern is that it is not forced to continue maintaining its old copper network when new fibre infrastructure has been built, hence doubling its operating costs.