BT and Virgin Media challenge Birmingham’s Broadband deployment

BBC News are reporting that incumbent high speed broadband providers BT and Virgin Media have launched a legal challenge to Birmingham City Council’s proposed independant Superfast Broadband Network.

The city has successfully applied for EU state aid to build network into underserved areas of the city, aligned with the Council’s regeneration plans for those areas. Virgin contest that it is “overbuilding” on their existing network footprint, and as such is unnecessary, effectively using EU subsidy to attack their revenue stream.

Broadband campaigner Chris Conder, one of the people behind the B4RN project, says that this is a case of VM and BT trying to close the stable door after the horse has bolted.

It’s going to be an interesting and important test case.

Regional Broadband, the Lords Select Committee and Google Fibre in the UK

Some of you may be aware of the Google Fibre project which is an experimental project to  build a high-speed FTTH network to the communities in Kansas City. They chose Kansas City from a number of different communities who responded to Google’s “beauty contest” for this pilot, because they had to pick just one and felt that it would have the greatest effect and be the best community to work with.

Like many other Community Broadband projects, Google point out that what the large incumbent telcos sell as “high speed internet” is seldom “high speed” at all, and is commonly sub 4Mb/sec. Google estimate that during the pilot, the cost of works for lighting up each subscriber premises may be as much as $8000 – though this is cheaper than the £10000 that it’s rumoured to cost to deploy high speed broadband to a rural subscriber in the UK.

So, this got me thinking, what could Google potentially bring to the UK with a similar sort of project?

It strikes me that one of the ways that Google could help the most is by facilitating the existing community benefit-based FTTC/FTTH groups to build networks in their communities, which right now can be frustrated by lack of access to public money from the super-fast broadband deployment fund (aka BDUK).

A significant amount of BDUK money is going to BT as the incumbent, or needs complex joint-venture constructs (such as Digital Region – though that was not a BDUK-funded project), because these organisations firstly have whole departments dedicated to handling the paperwork required to bid for the public funding, and secondly because they have a sufficiently high turnover to bid for a sufficient amount of public money to deliver the project. These are hurdles to community led companies, who will most likely just drown in the paperwork to bid for the funding, may not have all the necessary expertise either on staff or under contract, and likely don’t have the necessary turnover to support the application for the funding.

Meanwhile, the House of Lords Communications Select Commitee have issued this request for evidence (.pdf) in respect of an inquiry into whether the Government’s Super-fast Broadband strategy (and the BDUK funding) is going to be able to repair “digital divides” (and prevent new ones), deliver enough bandwidth where it’s needed, provide enough of a competitive market place in broadband delivery (such as a competitive wholesale fibre market), and generally “do enough”.

Could this be where Google enters stage left? As opposed to running the project in it’s entirety, they partner up – managing things such as the funding bid process on behalf of the communities, possibly acting as some sort of guarantor in place of turnover, as well as providing technical knowhow and leveraging their buying power and contacts?

This would at least give an alternative route to super-fast broadband. Right now, BT are winning a lot of the County Council led regional/rural fast broadband deployment projects, sometimes because they are the only organisation able to submit a compliant bid.

It remains to be seen if the money will benefit the real not-spots, or just prop-up otherwise marginal BT FTTC roll outs. Don’t get me wrong, I’ve no axe to grind with BT, but is the current situation, with little or no competition, ultimately beneficial to the communities that the awarded funding is purporting to benefit?

This is certainly one of the questions the House of Lords enquiry is looking to answer.

Regional Broadband – The Hidden Danger of Uber-projects

It was revealed this week that Digital Region, the centrally funded (to the tune of £90m – mostly public money) superfast broadband initiative in South Yorkshire is facing tough times, in particular a £9.2m loss on a revenue of only £167k (which only just pays the last CEO’s £100k salary – they are currently seeking a new CEO, one assumes to manage a turnaround).

The Yorkshire Post article goes on to explain another £4m of public funds have been ringfenced as a “security”, and that the four participating councils, already under budget pressure from Central Government austerity, may need to as much as £500k per year to secure the operations of Digital Region if the loan can’t be repaid. Is that throwing good money after bad, or is the situation redeemable?

This highlights my belief that these large centrally funded uber-projects contain a more significant risk of failure, and not of delivering the right product. The larger organisations that are able to bid and win such projects can come with higher overheads compared to the smaller community projects such as those serving areas with poor existing broadband service, who have a relatively captive and supportive market, and benefit from a tighter focus – for instance Rutland Telecom’s pioneering FTTC with unbundled sub-loop in Lyddington, which is using the same basic FTTC tech as DR is using, but on a smaller scale and in relative isolation.

The larger scale of the Digital Region deployment obviously needed a much bigger income to support the aggressive build and provisioning costs, along with what looks like a complex structure, and now that revenue hasn’t been realised. As can be seen on the DR website, and highlighted on the ThinkBroadband article, very few ISPs use the DR infrastructure to deliver service and is maybe one of the reasons they aren’t making their targets.

You have to ask yourself why this is? Continue reading “Regional Broadband – The Hidden Danger of Uber-projects”

Broadband Blindness in North America

B4RN‘s Chris Conder tweeted this interesting ~30 minute video from a producer in Sacramento, CA, on the limitations experienced on broadband in the US, and how the large telcos appear to be failing rural communities, and that deployments of their fastest products tend to be only available in “boutique” (usually high income) areas.

It highlighted how the large telcos found it hard to invest in deploying high speed broadband to sparse communities because of the conflict between affordably delivering a service and paying a shareholder dividend.

The video also spoke to some local community broadband companies in the US who, like B4RN are going their own way, and investing in their own future.

Good quality internet access is starting to become as essential to modern life as a stable electrical supply or safe, drinkable tap water. It’s becoming more of a utility and less of a consumer product.

Rural DIY Broadband: B4RN Launches

A few months ago, I’d blogged about B4RN, a community-led rural ultra-fast broadband project in my home county of Lancashire.

Today, they are holding a launch event in Lancaster to signify that they have reached their target number of interested parties who have committed to sign up for the service, and to announce they will be issuing shares in the organisation. I know the folks from ThinkBroadband are at the launch today, so expect to see some reporting from them shortly.

It’s heartening to look at this sea of raised hands from the community meeting – so many people putting their faith in their own community’s ability to organise and do this for themselves, rather than waiting for a centrally funded project that might not help them.

This is great news. I’d said before that DIY was the most realistic option for some of these regional communities. Fantastic stuff.

Broadband to your Barn

…or, “a different kind of social networking”

There’s been some good reporting recently on the B4RN (Broadband For the Rural North) initiative, which aims to deploy a fibre broadband infrastructure to over 1300 properties in a rural area of my native Lancashire, which would otherwise almost certainly fall into the 10% of fast broadband have-nots by 2017.

If the build was left to a commercial entity which needed to pay dividends to it’s investors, it would be very difficult for the plan to pass the litmus test, because of the high overheads involved in a large company, and the need to make profit.

So, how does B4RN differ from initiatives such as Yorkshire’s Digital Region, or Connecting Devon and Somerset?

Well, for one thing, it’s a smaller project. The second one is that it seems to be less reliant on public funding.

Continue reading “Broadband to your Barn”