Local government key to next generation broadband roll out
Local government is going to be the lynchpin to rolling out future generation broadband networks, according to BT. It believes that local authorities are the key to unlocking pent-up demand for faster connections to hospitals, libraries, government offices and schools which will, in turn, make investing billions in fibre more attractive.
Following on from this month’s Caio report which reassured central government that it should not feel obliged to co-fund a fibre roll out to boost connection speeds across the country, BT is adopting a grass-roots local strategy.
Hence BT top brass recently spoke to the Welsh Assembly about how regional government could help create the demand for 50mbps or 100mbps services which would make it worthwhile for BT, or another supplier, to roll out fibre to those areas.
A BT spokesman confirmed for SamKnows that local authorities are now, and always were, a central part of its roll-out strategy.
“We actually never argued that central government should pay for a roll out of fibre,” he confirmed.
“We simply want the right legislative regime to make investing attractive. Local and regional governments, however, are going to be crucial. They can take the message to their hospitals about telemedicine advances and talk to schools, libraries and colleges about the benefits of faster services for the public and students.
“We’re realistic enough to see that for someone already with broadband, there’s not a compelling reason for a 100mbps connection right now, so we see local government spreading the word to the public sector as well as helping businesses see the benefits as crucial to creating demand.”
In effect the spokesman predicts the roll out of fibre will be very similar to first generation broadband where BT was compelled to connect schools and libraries which then created demand in the local area around a network which was already in place. This strategy to connect local government buildings and business areas, with local government as a partner, and possibly contributing to the cost of the roll out, now seems BT’s clear strategy going forward.
The main potential stumbling point has been the legislative regime which will oversee the roll out of next generation broadband. Ofcom today published a very conciliatory document outlining its views on future regulation in which it noted the need to keep next generation lines open to competition, yet still provide a regime that would allow network builders to charge sufficiently to recoup their costs.
The document even went as far as suggesting Ofcom could help ISPs and network builders by promoting a better public perception of behavioural targeting. This controversial advertising tool stores information about a web user so more apt adverts can be served, allowing the site to charge more per lead.
The technology has yet to make it from site to ISP level, although this could happen over the next few weeks as BT is due to trial controversial technology from Phorm, which the government approved, so long as it remains an opt-in only service and all data is anonymised. Through Phorm, BT is hoping to track participating subscribers, without storing personal data, and so take a cut from the extra revenue accompanying better targeted advertising. It will be reassuring for BT as well as other ISPs considering behavioural targeting (Virgin Media and Carphone Warehouse are interested in trialling Phorm also).
BT also recently received positive news from the EU which declared that all future generation networks should be open to competitors, a decision which BT welcomes.
“We’ve always argued for this, it’s exactly what we have already in the broadband market in the UK,” he says. “Whereas we offer open access in the UK, though, other EU countries are more protective, particularly Germany and France. It means their operators can come to the UK and get access to our market but we cannot go there and do the same. So we welcome the EU decision.”
So, Ofcom is making reassuring noises about funding and the EU is striving to open up telecoms networks, leaving BT now with the job of pushing local governments to promote, and perhaps co-fund, next generation fibre rolls outs in their area.
Tags: Broadband Fibre, BT, government, OFCOM
