Archive for July 2014
Shoreditch MP Meg Hillier is to hold a Broadband Roundtable at 10am on 31 July at Perseverance Works in Shoreditch, the heart of London’s TechCity district, to discuss the “embarrassing” availability of broadband in central business districts, never mind rural areas.
So far 422 suppliers have registered to service the government’s £150m Urban Broadband Fund, which funds the SuperConnected Cities scheme. Some 149 have have provided quotations, and 90 have won business, says DCMS.
By the end of May the cities had issued 1008 vouchers in 14 months. The fixed/wireless connectivity split was 77/23 per cent, and the average speed per connection went from 11.2Mbps to 70.3Mbps for downloads.
According to Hillier’s blurb, “Broadband is a national embarrassment and action is urgently needed. Government grants of £3,000 have been added in, but that is like a sticking plaster on a broken arm. Businesses are moving out of the area because they simply cannot access high speeds.”
The cities in the SCC programme are Aberdeen, Belfast, Birmingham, Bradford, Brighton and Hove, Bristol, Cambridge, Cardiff, Coventry, Derby, Derry/Londonderry, Edinburgh, Leeds, London, Manchester, Newcastle, Newport, Oxford, Perth, Portsmouth, Salford, and York.
DCMS says it will provide a city by city breakdown “this summer”, but declines to say how much money has been paid out so far or to whom. However, Virgin Media tops a DCMS table of suppliers to whom vouchers have been issued (see below).
BT, which Ofcom says has an effective monopoly on wholesale fixed line access despite Virgin Media’s efforts, declines to say how many vouchers it has won. Its Openreach division is likely to be a big winner anyway. This is because smaller operators like Hyperoptic and TalkTalk rent ducts and lines from Openreach, even as BT’s Business division competes with them at a retail level.
So does 1,008 vouchers issued in 14 months represent success or failure? To be fair, it’s probably too soon to tell, but there’s not much time left – DCMS says the money dries up in March 2015.
It’s appropriate that Perseverance Works (PW) is the venue. Helped by former BDUK consultant Mike Kiely, the firm has just contracted Fibre Options to supply a 16Gbps link into the premises which houses around 90 businesses.
As landlord, PW will own the network. Each tenant will be able to use the government vouchers to order a connection running at up to 1Gbps. Fibre Options will do the provisioning and billing.
It took more than a year to negotiate the deal because the usual suspects were not prepared to consider an aggregated customer base – they wanted to sell a long-term leased line service that most tenants neither wanted nor could afford. PW eventually went to tender, which Fibre Options won.
PW spokesman Paul King says he sees “no reason” why PW’s approach should not be replicated by business parks across the country. Members of INCA are currently targeting business parks, most of which have been neglected in BT’s NGA roll-out.
The details again: 10:00-11:00, Thursday 31 July, 2014 at Eastside Educational Trust, Suite 16, Perseverance Works, 37 Hackney Road, E2 7NX. To book a place call Meg Hiller’s office at 0207 219 5325.
ISPs cash in on voucher scheme
|1||Virgin Media Business|
|5||Unitel One Source Ltd|
|9||Venus Business Communications|
|13||Unique Network Solutions|
|14||Qubic Group Plc|
We don’t normally move away from broadband, but this is a worthy exception because it bears on the kind of society that access to broadband opens up.
Last April the European Court of Justice struck down the Data Retention Directive . This is the basic European legislation that allows governments to implement legislation that enables them to collect, store and share communications data. The ECJ said it was too broad and there were too few safeguards to protect against abuse of the privilege.
This meant that the UK’s mass surveillance of its citizens’ communications lacked a legal basis. The Home Office told ISPs (which ones is secret) to continue to collect, store and share this data on demand with up to tens of thousands of public sector workers under the RIPA law. Privacy groups started court proceedings against the ISPs.
The government last week introduced primary legislation it said would restore its powers, nothing more. Now legal academics have challenged that view.
Paul Bernal, a professor at East Anglia, has published an open letter to MPs and lords calling for considered debate of the Data Retention and Investigatory Powers Bill (DRIP) and a halt to the “emergency” rush to turn the bill into law tomorrow.
“In fact, the Bill proposes to extend investigatory powers considerably, increasing the British government’s capabilities to access both communications data and content. The legislation goes far beyond simply authorising data retention in the UK. In fact, DRIP attempts to extend the territorial reach of the British interception powers, expanding the UK’s ability to mandate the interception of communications content across the globe. It introduces powers that are not only completely novel in the United Kingdom, they are some of the first of their kind globally.”
If passed the bill will give legal cover to the mass surveillance activities of GCHQ and the NSA exposed by the Snowden revelations.
Most European countries have either not implemented the Data Retention Directive (Germany decided it breached their constitution) or have struck down their enabling legislation to comply with the ECJ’s decision.
Bell Labs, which more or less invented the communications network business, has just given a new lease of life to copper network. In theory.
Its researchers have achieved speeds of 10Gbps over a pair of twisted copper lines in the lab. They have also got them to deliver 1Gbps symmetrical broadband, again in the lab.
That sounds like BT (in fact pretty much all incumbent telcos) is justified in pursuing its fully-depreciated investment in copper wires instead of switching to cheaper to operate fibre.
But the good engineers at Bell Labs also published a number of caveats.This is short distance technology. “The XG-FAST technology can deliver 1Gbps symmetrical services over 70m (for the cable being tested). This was achieved using a frequency range of 350MHz. Signals at higher frequencies were completely attenuated after 70m.”
So that’s it; 70m is the distance limit for gigabit copper.
But there’s more. “In practical situations, other significant factors that can influence actual speeds (not taken into account during these tests but which have been studied extensively elsewhere) include the quality and thickness of the copper cable and cross-talk between adjacent cables (which can be removed by vectoring),” they say.
They also published this handy guide for operators who are trying to match the exponentiating demand for bandwidth against their budgets for switching to fibre. It makes a trenchant leave-behind when you discuss the provision of high speed broadband with your local councillors and MPs as we approach the upcoming elections.
During testing, Bell Labs showed that
Maximum aggregate speed
|G.fast phase 1*||
|G.fast phase 2*||
|Bell Labs XG-FAST**||
2Gbps (1Gbps symmetrical)
|Bell Labs XG-FAST with bonding***||
10Gbps (two pairs)
* Industry standard specifications. G.fast allows for upload and download speeds to be configured by the operator.
** In a laboratory, reproducing real-world conditions of distance and copper quality.
*** Laboratory conditions.
Ofcom is obliged to not disclose the costing information that it gets from BT, which can be different from that which BT discloses in its regulatory financial statements. The Value Office Agency, which sets business rates taxes, does not disclose its financial model, or disaggregate BT’s products, so an important component of BT’s regulated prices is opaque.
Besides, BT sometimes changes the basis of its costs, as in “A6.47 BT has moved from an absolute valuation to a methodology based on indexing capital expenditure by RPI.”
This leave plenty to argue about. Sky and TalkTalk in particular are fighting a running battle with Ofcom over its assessment of the effect of business rates on BT’s prices for unbundled local loop lines (LLU). The debate forms part of Ofcom’s consultation on the fixed access market, which goes into excruciating detail, complete with triple negatives, on the business rates issue in Annexure 26.
The result of the debate is material to the two ISPs, which are the biggest exploiters of local loop unbundling. According to the Office of Telecommunications Adjudicator, by the end of May there were 9.3 million unbundled lines, and 5.68 million lines on Wholesale Line Rental (WLR).
The ISPs contend that BT receives a rebate on business rates due to LLU that amounts to an estimated cash value of £23/y per line. The rebate covers BT’s loss of profits due to the alienation of the full earning potential of the lines. The VOA and Ofcom consider those putative profits to arise mainly from “downstream” products from Openreach.
BT still makes money from renting out the lines, and besides any “lost profit” is at best a guess. Further, the business rates tax is a tax on assets, not profits. The ISPs believe whole of the rebate should be applied to the price BT charges for the line. Instead only 15p is. They say this leaves BT with net income from the rebate of more than £20/y/ULL. Put another way, this means the ISPs are paying around £180m/y in unjustified costs, which BT can then apply to subsidise downstream products.
They allege that Ofcom ignores this income from the rebate in assessing Openreach’s assets to price LLU. They allege that the resultant prices for LLU are higher than they should be, and that BT’s downstream products benefit from an illegal subsidy. They argue that since BT’s rebate is based on profits, not assets; if Ofcom disagrees, it should get the VOA to change the basis of its rating of BT, and not simply pass the extra costs on to the LLU operators.
Another issue that confuses matters is that Ofcom uses a theoretical all-copper network model for its sums. This disregards the thousands of kilometres of fibre BT has installed in the past five years. Fibre is cheaper to run than copper. TalkTalk’s plea for Ofcom to simply consider the outcomes produced in the market fell on deaf ears.
Ofcom has dismissed the ISPs’ objections, but it did go back to BT for more data about its costs. “We have also carried out a PWNRC (profit weighted net replacement cost) calculation using data on BT’s assets which are more detailed than those published in the RFS…In the light of this, we do not now consider that BT’s 2011/12 allocation of cumulo [business rates] costs to MPF and WLR services is reasonable.
“An allocation which is in line… would result in a reduction in the cumulo costs attributed to WLR rentals from £3.31 to between £2.80 and £2.98 in 2012/13 and a reduction in the cumulo costs attributed to MPF rentals from £3.16 to between £2.68 and £2.85 in 2012/13. We have reflected this reduced allocation in our charge controls,” Ofcom said in the annex.
Ofcom has now published the new LLU charge control decision. It comes into effect on 1 July.
Sky and TalkTalk did not respond to requests for comment.