The Highlands and Islands reputation for “shouting out” for broadband could put it in good stead for the roll out of superfast 100Mb/s fibre-based broadband. For BT has stated that it will invest first in areas where demand is strongest and where there is public sector interest in partnering with and using the new BT services.
Urging the Scottish government and other public sector bodies to grasp a unique opportunity to bring super-fast broadband to Scotland, BT today said its £1.5 billion investment would benefit up to 10 million UK homes by 2012. And it will be those areas showing the greatest eagerness to use the new services which will benefit first.
The investment – the largest of its kind ever seen in the UK – forms part of BT’s wider strategy of delivering next generation broadband services nationwide. Much of the UK is already set to receive advanced new copper-based broadband services of up to 24Mb/s – up to three times the headline speeds currently available for most homes and businesses.
Brendan Dick, director of BT Scotland, said: “Scotland is already a tremendous broadband success story and this is a great opportunity for the nation to be on the front page of the next chapter.
“BT is keen to invest further in Scotland so today I am urging the Scottish public sector to work with us to ensure the funds are directed to our country.
“We want to partner with people who share our vision for the next phase of the broadband revolution – and we look forward to discussing with our Scottish partners ways we might work together to ensure super-fast broadband is built when and where it is most needed.”
At the moment there is no predetermined single model, but BT are keen to explore, for example, ways in which local demand can be created or stimulated to help shape and direct our investments. Their aim is that urban and rural areas alike will benefit from our investment so this is a big opportunity for all parts of Scotland.
Mr Dick added: “Scotland has a clear agenda for economic growth and today's announcement has huge potential to enhance its capabilities and help the Scottish Government deliver its five strategic objectives.
“Broadband has already boosted our economy and is an essential part of people’s lives. We now want to make a step-change in broadband provision that will offer faster speeds than ever before. This is a bold step by BT – and we need others to be just as bold.”
Fibre-based broadband will initially offer a range of speeds up to 100Mb/s with the potential for speeds of up to 1000Mb/s in the future.
More than 99 per cent of Scottish homes and businesses have access to ADSL broadband and figures from BT Wholesale show that eight of the top 10 ADSL take-up areas in the UK are in Scotland, with Shetland leading the way on more than 60 per cent. Across all broadband networks, take-up in Scotland is 53 per cent, according to Ofcom’s latest Nations and Regions communications market report.
A supportive and enduring regulatory environment is essential, say BT, if their investment is to take place. Given this, BT will be discussing with Ofcom the conditions they feel are necessary to enable the programme. These include removing current barriers to investment and making sure that anyone who chooses to invest in fibre can earn a fair rate of return for their shareholders.
Super-fast, fibre-based broadband will give customers enough speed to run multiple bandwidth-hungry applications. So, for example, some members of a family could be watching different high definition movies while others were gaming or working on complex graphics or video projects. The new services will also offer substantially improved “upstream” speeds allowing customers to post videos, use hi-definition video conferencing and enjoy interactive hi-definition gaming to the full.
Across the UK, BT already provides fibre to the premises of more than 120,000 businesses, and has deployed more than 10 million kilometres of fibre in the network.
BT Questions and Answers on fibre broadband
What will be delivered? Fibre-to-the-premise (FTTP) or fibre-to-the-cabinet (FTTC)?
BT will deliver both though the exact split will be driven by the interest shown by government and regional and local authorities. FTTP deployment will be focused primarily on new build sites such as Ebbsfleet and the Olympic Village whilst FTTC will be more prevalent elsewhere.
What speeds will be delivered and where?
FTTP will deliver headline speeds of up to 100Mb whilst FTTC will initially deliver speeds of up to 40Mb though we are investigating technologies that can increase those speeds to more than 60Mb. In addition to the new fibre-based services, copper-based ADSL2+ will deliver nationwide speeds of up to 24Mb. Recent tests show the majority of ADSL2+ customers should enjoy speeds of around 10Mb or above with many getting substantially higher speeds. The technology is also improving all the time.
Which areas will benefit first from this investment?
BT will work with Government and regional and local authorities on the roll out plans. The public sector can help ensure there is demand for fibre and BT look forward to working to ensure the roll-out is demand-driven. BT’s aim is that both urban and rural areas will be able to benefit.
Will fibre only be available in large cities as has happened in other countries?
No. Our aim is that fibre will be widely available and not just in the major cities – unlike in some countries. Its precise deployment will depend on the engagement of government and regional and local authorities but there is no reason why it should not be available in a variety of environments.
Will the UK be in a stronger position after this deployment?
Yes. This plan will deliver some of the fastest speeds in the world to a far larger percentage of the population than in some other countries where fibre services are largely confined to major cities.
What will happen to those parts of the UK who won’t have access to fibre?
Those areas will have access to copper-based ADSL2+, a service offering speeds of up to 24Mb. This will be sufficient for services such as Hi-Definition TV. BT will roll out fibre beyond this plan if there is sufficient demand and it can make an adequate return on its investment.
If ADSL2+ offers sufficient speed to enjoy new services, why invest in fibre?
Copper-based ADSL2+ will offer sufficient speed for services including HDTV but fibre will allow people to enjoy several such services simultaneously. It is important everyone is bold in ensuring there is sufficient capacity for future services.
Is this investment dependent on Ofcom creating a new regulatory framework?
Yes. The right regulatory environment is vital for anyone seeking to invest. The funds required are extremely large and companies need confidence that risk-taking can be appropriately rewarded, BT point out.
Will BT exclude other companies in the way companies have in other countries?
No. BT is totally committed to a wholesale market and so will make its services available on an equivalent basis to all communications providers.
Does BT believe that other next generation networks should also be open?
Yes. BT’s “firm belief” is that all next generation networks in the UK should be open as this approach will boost competition and consumers and businesses will benefit.
What are BT’s plans post this investment?
BT will review its plans on a constant basis. If there is adequate demand and interest for fibre-based broadband and BT can make an adequate return, the plans would be extended.
Will fibre-based services be more expensive?
It is likely they will be at the wholesale level but the prices that consumers and businesses will pay will be determined by the market and not just BT.
Are “next generation broadband” and “super-fast broadband” the same thing?
No. “Next generation broadband” refers to the family of new services that BT will offer. These include fibre-based “super-fast” services – such as FTTP and FTTC – as well as advanced copper-based fast services such as ADSL2+.
Is this a good time to invest given the current “credit crunch”?
It is important, BT say, that they invest for the long-term. “This is a bold step that will ensure businesses and consumers have all the speed they require in the foreseeable future,” they state.
Are BT taking action to reduce the congestion caused by services such as the BBC’s iPlayer?
Yes. BT has made it much cheaper for companies to buy extra capacity on the “backhaul” pipes that link exchanges to the core network. This move should ensure Internet congestion is minimised. BT will also invest significant funds in improving core network capacity. Both measures should ensure customers on BT’s network will enjoy a higher quality of service than those on cable networks where contention and internet congestion has been more of an issue.
How can public sector bodies register their interest?
BT's regional teams will be contacting regional partners over the coming days.
Is there a deadline for public sector bodies to register their interest?
There is no formal deadline, but clearly as time passes BT say their investment will become increasingly committed and the capacity to take on more will be correspondingly reduced.
How will BT judge the merits of the expressions of interest it receives?
This is a commercial deployment so the options most attractive to BT will be those where risk or cost are most reduced. BT are open to suggestions from regional partners and happy to discuss, for example, models of deployment against committed demand, demand generation partnership or contributions to build costs (subject to State Aid rules).
