Common sense challenge for Cotswold Broadband roll-out
Nice to see that Broadway Partners’ affiliate company Cotswolds Broadband has received funding commitments for £1.6m from West Oxfordshire District Council to make superfast broadband available to every home and business in the hardest to reach areas of West Oxfordshire, some 4,000 premises.
BT’s £25m county-wide project with the Oxfordshire County Council would have left 2,000 premises without access to high speed services. The new deal will address that shortfall.
The district council will supply a loan, BDUK is expected to chip in a grant, and private investors will match the funds so raised. Broadway Partners’ Adrian Wooster, late of BDUK, says this is the first time a a public private partnership has been set up for a UK rural broadband project.
The network will be mainly fibre to the premises (FTTP). It will offer open access to attract multiple ISPs and a richer choice of service offerings, and could backhaul 4G mobile in the area.
It’s an interesting approach, and one contrary to BT’s. BT’s approach has been to optimise the delivery of next generation broadband to rural area for its shareholders. Cotswold Broadband (and B4RN and all the other FTTP projects) are about optimising for the users.
According to a TED talk that I can no longer find, the maths insists that the optimal solution to a problem like delivering superfast broadband to rural areas optimises for one or the many. You can’t do both
So, as BT is beholden to its shareholders, it’s rational for it to do the least it can for the money it is given. In practical terms, that means making minimal investment in its network for as long as possible and persuading everyone that this is as good as it gets for the money, and besides they don’t need more.
In optimising for users Cotswold Broadband has to use a variety of technologies to connect the 4,000-odd premises to be cost-effective.
Assuming BDUK chips in £400k and the investors match the public sector money with their own £2m, what can Cotswold Broadband buy for £1000/premises? It’s already said most will get FTTP; if it can persuade a cellco or two, 4G mobile broadband is possibility. It could also consider microwave in E-band, Carrier Wi-Fi or and upcoming free to air WiGig wireless access, which is all becoming cheaper, and is more flexible to apply than fixed lines like copper and fibre. Over time it could use spare cash from wireless customers to extend the fibre where there is a demand.
Of course, these technology options are also available to BT, but the fact that Cotswold’s deal exists suggests BT has had no interest in supplying the area, presumably because of cost. Besides, using the new tech would involve it getting into new technologies. Going through the learning curve would sub-optimise its return on capital employed, so logically it won’t. The best it can do, logically, is to become an ISP on the Cotswold Broadband network.
Having behaved rationally so far, let’s see if BT’s common sense will prevail.