Google proposes $4.4 trillion clean energy plan
Google says its proposal would yield a net saving of $1 trillion by 2030 and slash U.S. carbon dioxide emissions by 48 percent
By James Niccolai, IDG News Service
October 02, 2008
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exploring technology, society, culture
[ Smart grids - energy, IT, comms ]
Grid Week 2008 | A realization is emerging that a new view of energy, beyond oil, coal and other fossil-based fuels, will result in decentralized components of the electricity grid, a far cry from the central generation and structured system of the past. A smart information network for the electric grid is seen as necessary to manage and automate this new world.GridWeek is focused on this vision. (...)
Keynote Speakers and Conference Tracks Announced for GridWeek 2008
GridWeek 2008 is where U.S. electricity grid thought leaders will explore the smart grid's role in delivering sustainable energy. Energy policy makers and members of public utility and information technology industries will examine smart grid successes, role in carbon reduction, alternative distributed generation, and the implementation of the Energy Act of 2007. With speeches and other sessions about enabling energy and utility efficiencies, IT and grid interoperability, new business models, and energy security, GridWeek, produced by Clasma Events Inc., is the event to outline smart grid possibilities and expectations as the U.S. electricity system moves into the 21st century.
How can we achieve the nirvana of being a world leader in superfast broadband? A recently published report by ex-Cable & Wireless chief executive Francisco Caio contained a wealth of practical proposals, but came out against government intervention on the grounds that the market solutions had so far delivered well. But today's report by Ofcom, while commending the success of the market, sensibly points out that it needed public intervention to get 99% internet capability and that if theBroadband Stakeholder Group is confident it could deliver broadband to two-thirds of the UK that would still leave a third without it, thereby aggravating the digital divide.
Broadband companies are asking the government for a stable regime so that they can plan without fear of government intervention. That is understandable but it would be a foolhardy government that decided not to intervene especially if the oncoming recession proves so deep that broadband providers start cutting back. The government has provided a lifeline to financial companies and it may find that it needs to intervene in a Keynesian counter-cyclical way to invest in superfast broadband during a recession in the knowledge that it will give Britain a competitive advantage afterwards. With the shrinking of the financial sector it becomes all the more vital to back Britain's creative industries, whose medium is the internet (...)
The European Commission | Brussels, 18th September 2008 | Broadband: Commission consults on regulatory strategy to promote high-speed Next Generation Access networks in Europe
The European Commission has launched a public consultation on the regulatory principles to be applied by EU Member States to Next Generation Access broadband networks (NGA). NGA optical fibre-based networks enable bitrates several times higher than those currently available on traditional copper wire networks. NGAs are required to deliver high-definition content (such as high definition television) and interactive applications. The objective of a common regulatory framework for NGA is to foster a consistent treatment of operators in the EU and thereby ensure the necessary regulatory predictability to invest. The Commission is consulting on the basis of a draft Recommendation, addressed to the regulators in the 27 EU Member States and suggesting definitions for harmonized categories of regulated services, access conditions, rates of return and appropriate risk premiums. The public consultation will be open until 14th November 2008. The Commission will then finalise the Recommendation in the light of comments received and formally adopt it in 2009.
EU Competition Commissioner Neelie Kroes said: "The deployment of new fibre-networks will shape the competitive conditions of the future. We need an appropriate framework to give European companies fair access to the new networks. We want national rules that will not only encourage the necessary substantial investment in fibre investment but also strengthen broadband competition."
"For consumers, whether private or business, to benefit from the competitive provision of services over optical fibre, it is vital that the Commission provides the regulatory guidance the market needs", said Viviane Reding, EU Telecoms Commissioner. "We want to reduce the scope for divergences of regulatory approaches across Europe, in the interest of legal certainty. Uncoordinated or even contradictory action of national regulators as regards Next Generation Networks could seriously damage competition and undermine Europe's single market. We propose in particular that project-specific risk premiums should be applied, so that competition can flourish while those who invest are rewarded in line with the risks they have incurred."
The deployment of NGA is indispensable to deliver new broadband services to European consumers. While a number of operators, both incumbents and alternative operators, have launched large-scale rollouts of new broadband infrastructure in a number of Member States, Europe appears to be still lagging behind other economies, notably the United States and Japan.
The Commission is committed to ensuring that the transition to NGA takes place in a consistent, efficient and timely manner. To this end, it is consulting on the regulatory principles it considers the most appropriate to foster investment in NGAs, while at the same time strengthening competition.
(...)
EU Considers Strategies for Promoting Next Generation Access Networks | 19 Sept
The European Commission has launched a public consultation on the regulatory principles to be applied by EU Member States to Next Generation Access broadband networks (NGA). Specifically, the EC is seeking proposals on a common regulatory strategy best suited to promote the rollout of fiber-based access networks. There are 229 million copper lines in the EU, compared to slightly more than 1 million fiber connections. Analysts forecast a further EUR 20 billion spending on NGA by 2011.
cnet.com | Last modified: September 23, 2008 8:30 AM PDT | The Android era begins Tuesday | roundup T-Mobile's unveiling of the first phone powered by Google's Android software will be only the beginning of a long effort to rewrite the rules of the mobile communications industry.
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ft.com | Android is set to take on smartphone market | By Paul Taylor in New York and Andrew Parker in London| Published: September 23 2008 03:00 | Last updated: September 23 2008 03:00
When Apple launched the iPhone 14 months ago it shook up the market for so-called smartphone handsets. The technology company highlighted the true potential of what has become known as the wireless internet - accessing internet-based services and content using a mobile phone rather than a personal computer.
(...) Today, Google is hoping to break the mould by unveiling the first smartphone running a fully "open" operating system, called Android.
The open format means that software developers can, free of charge, devise mobile internet services that run on the phone.
Made by Taiwan's HTC and called the G1, the Android smartphone is expected to be the first of many. Google sees these handsets as an integral part of its strategy to position itself as the mobile search and advertising market leader.
Google and many technology analysts believe the mobile internet - and the advertising revenues associated with it - could eventually eclipse the fixed-line internet. They argue the online advertising market has grown quickly in part because consumers were able to purchase PCs from multiple manufacturers, and then cheaply and easily hook them up to the internet so as to access content and services from a wide range of suppliers.
But there are only about 1bn PCs in the world, compared with 3bn mobile phones, so the advertising market on the wireless internet has huge potential.
Google's mobile strategy could have serious implications for at least three sets of players - handset makers, software companies responsible for smartphone operating systems and mobile operators.
In addition to HTC, Samsung and LG Electronics, two of the big five handset makers, are expected to launch Android-powered smartphones early next year. This will put extra pressure on Nokia, the world's largest mobile maker, whose smartphones run on the rival Symbian operating system.
Nokia responded to the threat posed by Android in June. It announced plans to take control of Symbian and make its operating system available to other handset makers on an open source basis, in a similar way to what Google is doing with Android.
Apple's move to enable software developers to create new applications for the iPhone and make them available through its iTunes "App Store" looks to be a step in the same direction as Google. More than 3,000 software applications can be found in the App store, launched in July. Google plans to emulate these arrangements - users of the G1 phone will be able to download applications from the company's website.
Some of the mobile operators feel uneasy about Google, and Nokia, getting into mobile internet services.
This is because the operators were hoping to provide the services themselves - and capture the associated revenues.
Consultation published: 23|09|2008
Consultation closes: 02|12|2008
The IEEE working group that is putting the finishing touches on the 802.11n 100Mbps wireless LAN standard is about to launch a new project, for a 1Gbps WLAN standard.
That would mean gigabit Wi-Fi.
With broadband penetration progressing rapidly, one must think ahead to the next stage, where broadband transmission rates of over 1Gbps on the consumer level will likely be the driver of major changes in ICT, mass media, and consumer electronics.
bbc.co.uk | No aid for next-gen network firms | Friday, 12 September 2008 |
15 September 2008
The Communications Management Association (CMA) - speaking for its UK business broadband user membership - has welcomed the government's Caio report on Next Generation Broadband and supports the proposal that telecoms and internet companies should finance a new broadband infrastructure.
According to David Harrington, regulatory forum leader at the CMA, "Not only does the report endorse the need for broadband as a major enhancer of enterprise and creator of wealth, but it also emphasises that Ofcom (supported by government) must assume leadership in the process.
"The CMA believes that in rejecting the case for an immediate injection of government subsidy, but recommending an immediate start on policy initiatives (and their associated planning), this will encourage and facilitate national broadband coverage, thus echoing CMA's long-term stance.
"CMA especially welcomes Mr Caio's positive approach to the issues. He identifies four main areas where government action is needed to support investment, further defined as ten initiatives, or specific and detailed actions, such as creating an overall framework and implementation path, accelerating the release of spectrum, resolving the long-running saga of unfair business rates on infrastructure, making new buildings fibre-friendly and ways of reducing civil works costs.
"All of these things have been addressed or protested by CMA over the last few years and we are therefore delighted to see them reflected by Mr Caio. We sense that at long last the UK is off and running on the broadband track and we now await Ofcom's Statement on NGA together the government's response to the report."
register.co.uk |Enterprises throw caution to the wind in 802.11n rush| Standards bodies far behind the WLAN adoption curve.By Faultline 13th September 2008 17:48 GMT
The wireless industry changes at the speed of light and so do the attitudes of its customers. Five years ago, amid the intense nervousness of enterprises about adopting pre-standard fast Wi-Fi standards or insecure - Wi-Fi at all - who would have predicted the carefree abandonment with which corporates are now embracing pre-standard 802.11n?
Yet survey after survey indicates that the corporate world is adopting the 100Mbps-plus wireless technology, once assumed to appeal mainly to consumers in the home media networks market, eagerly and casting aside the usual conservatism about systems that are not yet fully standardized.
This in turn indicates how irrelevant traditional standards making processes are becoming, in a world where the need to gain even a slight edge in price/performance, and therefore efficiency and competitive edge, trump the old worries about technology dead ends and long term investment risks. In the enterprise, as in the home, technology is becoming cheap, disposable and something that must be installed today, before the moment is lost. (...)

The quality of broadband internet access in some European countries, including the UK, Italy and Spain, is inadequate for running current web applications, a study has shown.
In a worldwide survey by Oxford University and Cisco, the high-speed internet access of some developed economies of western Europe, as well as Canada and Australia, was outperformed by Russia and several emerging economies of eastern Europe.
(...)
Fernando Gil de Bernabé, director at Cisco, said the performance of some countries was surprising. “But we are looking at quality, not penetration. Some countries have leapfrogged others by laying fibre rather than trying to upgrade copper lines.” he added.
The only country to have broadband quality that was considered adequate for future internet applications, such as high-definition video and large file-sharing, was Japan.
The study also found a high correlation between broadband quality and a country’s ranking as a knowledge economy.
The highest ranked countries in Europe were Sweden and the Netherlands, which were second and third respectively behind Japan. Korea, which has a the world’s highest broadband penetration rate of 94 per cent, was ranked fifth
This August marks the anniversary of a key milestone in optics and telecommunications. It has been 50 years since the publication in Physical Review of the scientific paper that described the concept and design of one of the greatest modern inventions — the laser.
The ideas in "Infrared and optical masers" by Arthur Schawlow and Charles Townes of Bell Telephone Labs, as it was then known, underpin the core technology in all of today's fibre-optic networks, although it wasn't until glass fibres with very low loss appeared that laser-based communication became a valid alternative to copper wires.
To mark the 40th anniversary of the laser, Lucent Technologies, the parent company of Bell Labs, issued a press release and threw a party in honour of scientists who had made significant contributions to the development of the laser. This time around, not only did the event pass without comment, but it turns out that Alcatel-Lucent is pulling out of basic physics and semiconductor research altogether.
Nature reported the news initially, which was picked up by Wired in this stunning but rather sad photo story. Read it and weep, as Bell Labs becomes just another corporate R&D division, with a view confined to research that is aligned with product development.
In April 2007 the BSG released its 'Pipe Dreams?' report on prospects for next generation broadband in the UK. The report crystallised the key issues facing UK government and industry as we move towards next generation broadband in the UK, and made a series of recommendations.
The BSG has since been focused on implementing these recommendations, working with stakeholders to develop further insight into the issues the report raised in order to create an evidence base for public and regulatory policy-making.
The next generation broadband work programme has four workstreams:
The UK could reap significant social and economic value from the wide-spread deployment of next generation broadband, according to a new report that studies how to weigh up the costs and benefits, from the Broadband Stakeholder Group (BSG), the government’s leading advisory group on broadband and digital convergence.
By looking at the potential private value (value accruing to commercial investors and consumers) and the wider economic and social value, the BSG has found that the long-term benefits to the UK associated with the wide-scale deployment could outweigh the cost of deployment, which could be as much as £16bn (to reach 80 per cent of UK homes).
However, the report does not conclude that operators should invest now. There is still real uncertainty about the extent to which investors will be able to realise enough of this value to justify investment. The BSG believes that in the short-term, there are unlikely to be significant costs associated with delaying deployment and there may actually be considerable value in waiting for a limited period in order for more information to emerge, before investing.
But the value in waiting will diminish over time and the report recommends that commercial providers, government and regulators continue to work to create an environment that is conducive to timely and efficient investment.
Antony Walker, CEO of the Broadband Stakeholder Group explains: “Next generation broadband has the potential to transform the way we do things as individuals, businesses and as a nation as a whole. It is tempting to jump in feet-first but it matters more to do this right than to do it now. There is a lot of uncertainty about issues on both the demand and supply side and much that we can learn from experience elsewhere without adverse affects in the short-term. On the other hand, the UK can’t wait too long. If widespread network deployment didn’t happen in the medium term (perhaps three to five years), then this report suggests that the UK could be losing out.
The report also warns that it will take longer to deploy next generation broadband than it took to deploy the current generation and that some areas might be beyond the reach of market forces. Communities and individuals that remain beyond the reach of commercial deployment in the long-term will be disadvantaged. Close attention must therefore be paid to the emergence of a new digital divide.
The report follows the BSG’s Pipe Dreams report published in April last year which said the UK needs to start preparing for next generation broadband by 2009. The current report, along with another on models for public sector intervention in the deployment of next generation broadband, will be launched at the BSG’s conference: Beyond Pipe Dreams in London on Monday 9 June.
The BSG report ‘A Framework for Evaluating the Value of Next Generation Broadband’ develops a framework for undertaking a cost-benefit analysis of next generation broadband,
and provides estimates for the costs and benefits highlighted by the framework. The report
carries forward Recommendation 1 from the BSG’s April 2007 report ‘Pipe Dreams?
Prospects for Next Generation Broadband in the UK’. The report was developed with
contributions from economists and others from government, industry, academia and the
regulator. The research was undertaken by Plum Consulting on behalf of the Broadband Stakeholder Group, with support from BERR and the Ofcom Consumer Panel.
[3]
June 17, 2008
(...) our 2008 Conference ‘Beyond Pipe Dreams?’. (...)
First of all, the conference itself produced a lively and informed debate, with representatives from a wide variety of sectors and a range of speakers including Francesco Caio, head of the governemnt’s review of broadband. To view the presentations from the event see www.broadbanduk.org/beyondpipedreams.
The first of the two reports that we launched at the conference was ‘A Framework for Evaluating the Value of Next Generation Broadband‘. This report examines the incremental economic and social value of next generation broadband over current broadband provision in the UK.
The second report was ‘Models for efficient and effective public sector intervention in next generation broadband access networks‘. This report studies next generation broadband interventions across the world, and first generation interventions in the UK, to determine good practice for interventions in the UK.
(...)
Nearly twenty years ago, if a predecessor of mine had been standing on this stage, a key issue for debate would have been whether substantial investment in a wholly new fixed network could be justified and whether investors could make an adequate return on what was seen as a risky investment.
He would have been saying that in an environment remarkably similar to today:-
Then, it was the roll out of cable- bringing TV and telephony over one network for the first time, an event which was in many ways the pre-cursor to convergence.
Today we are at an equally critical juncture in the development of our markets, and those developments are taking place against a remarkably similar set of external factors to the early 1990s: rapid technological development, political uncertainty and at a time of economic slowdown.
And while 20 years ago those choices and challenges posed a real examination at the time for everyone involved, in contrast to today, they seem tame:
In that context, what I want to do today is consider how we carry the success of the last two decades in our communications markets forward into the post switchover digital era.
I want to ask what we need to do to continue taking risks, to keep innovating – so that the UK can stay at the forefront of an increasingly competitive global economy.
The questions at the heart of this are, of course, about:
Most of this will be determined by businesses and consumers – but as the regulator we also have a role to play, particularly at a time when economic uncertainty and new investment across a wide range of areas are happening simultaneously.
At Ofcom, everything we do flows from our duties set for us by parliament- to further the interests of citizens and consumers.
In building on these core purposes, let me today set out five areas where the regulator has a critical role to play:-
So in fixed, the big issue is addressing the roll-out of super-fast next generation fixed fibre networks in the UK.
Super-fast broadband is crucial to the UK’s future. These next generation networks form part of the critical infrastructure of the country’s economy and will be central to the way we live our lives in the future.
Super-fast next generation broadband will come to change our perception of communications radically. Alongside mobile broadband, it will, in time, have a similar impact on our society and economy as first generation of broadband.
Not just in information and entertainment, but in how businesses and consumers organise themselves and interact and, increasingly, in aspects of our lifestyles such as healthcare.
It will affect distribution, services, content, devices and competition.
Here as much as anywhere we need to ensure that there is a healthy environment for investment – which can support, in turn, competition and innovation.
Our position is clear. Ofcom favours a regulatory environment for the next generation of networks and access that both allows and encourages operators to make risky investments, to innovate for the benefit of consumers and, if the risks pay off, for the benefit of their shareholders too.
We are very clear that if operators are going to make investments in new infrastructure, investment that is inherently more risky than developing the existing infrastructure, then they need to know that the regulatory framework will allow them to make and keep a rate of return that is commensurate with the risks they are taking.
And they need a time horizon that gives them a degree of assurance for a realistic period in the future; that they know for example that the regulator will not suddenly change the rules of the game to reduce the returns just as the rewards for the risk start to flow in.
We want investment in a competitive environment. It is encouraging that cable is now talking about seriously rolling out their next generation high bandwidth product at the end of the summer. The emerging success and rapid take-up of mobile broadband will provide a further spur to the fixed line operators to upgrade to next generation high bandwidth products to differentiate themselves competitively to consumers.
In the fixed line environment there is a range of possible approaches to enable a competitive environment. At the deepest infrastructure layer, we are exploring the possibility of duct access, which is already being implemented in a number of other European countries.
At the next level, sub-loop unbundling, or fibre to the street cabinet, has advanced to the point of meaningful trials.
But these deep infrastructure forms of competition will focus on dense metropolitan areas; and the physics means that there is likely to be room - literally - for a very limited number of competitors.
So while a lot of the emphasis elsewhere in Europe has been on ducts and SLU, we also want to focus on a successful wholesale route to competition; what we call active line access- a good wholesale product family that allows other providers to innovate and differentiate well above that which is associated with a simple resale model.
Perhaps because of the strength of current generation broadband competition in the UK, the debate on next generation access has taken some time to ignite in this country.
Ofcom first surfaced the issue in our Telecommunications Strategic Review. It received little engagement at the time as operators were, understandably, focused on the near term opportunity offered by current generation LLU. Since then we have published two further documents discussing the regulatory challenges posed by next generation access networks, with, it has to be said, very limited reaction or interest until very recently.
Over the last few weeks there has been a step change in the level of interest and engagement on NGA issues from a range of companies and organisations.
This is excellent news and a development that I very much welcome. Now we have meaningful engagement, the time is right to change gear in our determination to address regulatory and other issues of practical implementation.
We need to bring industry together to debate and resolve some critical issues. Ofcom will provide an important forum for debating and resolving these key issues with industry.
That is why I have today written to leading CEOs across the communications sector to initiate a concerted dialogue on the key issues. Ofcom will host the first of a series of working sessions focused on practical action and resolution of areas of uncertainty as soon as possible.
(...)
BT unveiled plans on Tuesday to roll out a new UK fixed-line network offering broadband speeds five times quicker than those currently available.
The former fixed-line telephone monopoly, is to spend £1.5bn on a fibre-based network covering 10m homes that will mostly enable download speeds of 40 megabits per second, compared with the existing 8 Mbps industry benchmark.
BT has been spurred into action by Virgin Media, the cable television company, which plans to offer speeds of up to 50 Mbps to 12m homes by next summer.
Virgin Media will have a head start on BT, because the phone company will not start deployment of its super-fast broadband network until 2009-10. It is hoping to run the network past 10m homes by 2012.
BT has also been under pressure to commit funds to a super-fast network by the government, which is concerned that otherwise UK competitiveness could be damaged. Countries ranging from Japan to the US have already begun to install fibre networks.
(...)
Matt Yardley, Partner at Analysys Mason, Comments on BT's
Large-Scale Fibre Investment
LONDON--(Business Wire)--
At last, BT has decided to invest in fibre on a large scale. This
is great news for the UK, and will remove some of the awkward
questions about why are we languishing behind many other nations in
the provision of high-speed broadband. BT's announcement is primarily
about VDSL/FTTC, with some limited FTTH. Financially, this is a
sensible step for BT, and should not preclude a move to more
widespread FTTH in the longer term.
In our view, the total investment of GBP 1.5 billion for 10
million homes looks reasonable, although the press release states roll
out "...to as many as 10 million homes by 2012", so actual coverage
may be lower. The Broadband Stakeholder Group (BSG) is currently
investigating the costs of FTTC and FTTH on a national basis, and
importantly, how costs vary with geography.
There are two other aspects of the announcement that are worth
mentioning.
First, it is not yet clear what BT's statement on the role of
regulation and fair return on investment will mean in practice. BT
appears to be asking for more symmetric regulation, whereby other
fibre operators will also be required to wholesale their services.
Ofcom is expected to provide details of its proposals for regulating
NGA in September this year. It will be fascinating to see to what
extent, if any, Viviane Reding's recent comments on a 'risk premium'
for NGA investments factor into Ofcom's thinking.
Second, we expect there will be greater emphasis than envisaged on
the issues associated with sub-loop unbundling (SLU). This will now be
a very important consideration for alternative operators' future
strategies. To date, SLU charges have not been the subject of as much
regulatory scrutiny as LLU charges. This is now likely to change.
However, it is not clear to what extent BT will be promoting a generic
Ethernet access product (as being developed for the Ebbsfleet FTTH
deployment) over VDSL/FTTC.
The reference to iPlayer is also interesting, especially as many
of the issues around delivery of video services relate to backhaul,
not access networks. Lower charges from exchanges to core network will
be good news for local loop unbundlers, but it is far from clear how
bitstream-based ISPs, which still support a large part of the
broadband user base in the UK, will be affected. It is possible that
the gap between the LLU and bitstream cost base will get wider.
Finally, BT's announcement suggests both urban and rural areas
will benefit. This may be true in the long term, although it seems
unlikely that there will be significant rural deployment for the GBP
1.5 billion figure indicated. This raises a wider public policy
question: What about the remaining 60% of homes?
BT states it wants to work with local and regional bodies to focus
investment, which makes sense. It is also consistent with
recommendations in our report for the BSG on public sector
intervention in next generation broadband. However, there may be an
even greater role for the public sector in stimulating investment
beyond the initial 40% coverage, and almost certainly a larger role
for the public sector, compared with what happened with the initial
roll-out of first generation broadband.
Comment by Matt Yardley, Partner at Analysys Mason.
[ ]
(...)
Update: My good pal, Dave Burstein, who writes the influential newsletter DSL Prime, wrote in to point out why the news is spin. “There is nothing in the announcement that wasn’t discussed by Christopher Bland with Andrew Parker a year ago,” he wrote. Dave tracks the industry closely, so I’m not surprised he found the “spin” in the news. He also pointed out that by 2012, less than 1 million will be on fiber, and mostly new fiber.
And Andrew Odlyzko, the authority on broadband and networks, in an email to me noted that the incremental 100 million pounds in capital expenditure increase for this promised network upgrade is a mere 3 percent, and even that is contingent on regulatory relief from Ofcom.
[ ]Q: Is this investment dependent on Ofcom creating a new regulatory framework?
A: 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.
The news that BT is willing to ignore the credit crunch and invest some £1.5 billion - including £1 billion of new money - in a national fibre-optic broadband service should be a boost to businesses and consumers alike.
(...)
“The question now is what happens to investments from alternative providers in DSL services in the local loop,” said Pete Nuthall, analyst for European telecoms at research firm Forrester. “There is little incentive [for them] to continue their expansion plans. They might want to look at saving money by using wholesale services from BT.”
Delivering on demand
A further question is whether Ofcom and BT will be able to agree an acceptable regulatory framework that will, in the words of BT chief executive Ian Livingston, “make sure that anyone who chooses to invest in fibre can earn a fair rate of return for their shareholders”.
Ofcom has already welcomed BT’s announcement, but the regulator will have to strike a balance between allowing BT a sufficient profit margin to roll out its new network and ensuring that other ISPs are not driven out of the market by fibre.
“Local loop unbundling is a big issue for Ofcom,” said Anthony Walker, chief executive of the Broadband Stakeholder Group. “There is a debate that has to happen across the industry.” Options, he suggested, might include sub-loop unbundling, where rival service providers run broadband connections from BT’s fibre cabinets, rather than from exchanges, to businesses or homes.
But in the short to mid term BT’s moves could also have another, paradoxical effect: that of increasing the broadband divide. “In the shorter term there could be more variation (in internet access). The challenge is narrowing that down,” said Walker.
[ ]
The Broadband Stakeholder Group – The UK government’s leading advisory group on broadband has responded to BT’s announcement that it is to invest £1.5 billion in making next generation, fibre-optic broadband available to up 10 million homes by 2012.
The group are welcoming the announcement as it had already aired its views that a scheme like this was vital for the development of the UK’s industry. In April 2007 the BSG independent advisory group published a ‘Pipe Dreams Report’ in which it was stated that there was a two-year window to “create the right environment for next generation deployment in the UK”.
Commenting on BT’s announcement, Antony Walker, CEO of the BSG said “There has been a question mark hanging over the UK telecoms sector for the last 18 months about how we move to next generation broadband. Today’s announcement is by no means the whole answer, there are still questions about the regulatory framework and how we extend services to more rural areas, but it is a very significant step forward.” Walker also said that he hoped that Ofcom could “move quickly to create a regulatory framework that both enables large-scale investment and ensures effective competition”.
The BSG sees the new proposed development from BT as being so important it is claiming it to be the start of Web 3.0.
[ ]
BSG| BSG welcomes BT announcement on next generation broadband
The BSG welcomes today’s announcement from BT that it plans to invest £1.5 billion in making next generation broadband available to up to 10 million homes by 2012.
In April 2007, the BSG, - the UK’s leading independent advisory group on broadband - published its Pipe Dreams Report that stated that there was a two-year window to create the right environment for next generation broadband deployment in the UK.
Commenting on the announcement, Antony Walker, CEO of the BSG said “There has been a question mark hanging over the UK telecoms sector for the last 18 months about how we move to next generation broadband. Today’s announcement is by no means the whole answer, there are still questions about the regulatory framework and how we extend services to more rural areas, but it is a very significant step forward”.
BT’s announcement comes in response to increasing competition from cable and new mobile broadband services and growing demand for bandwidth from consumers. Walker described it as “a positive sign that the transition to next generation broadband can be market-led. The key question now will be whether Ofcom can move quickly to create a regulatory framework that both enables large-scale investment and ensures effective competition”.
The BSG believes that the move to next generation broadband will be at least as important as the move from narrowband to broadband. “It will bring about a revolution in the capability and quality of services and will enable the next big development of the internet. You could think of it as the catalyst for web 3.0”.
[ ]
fibrevolution blog | Posted on August 26, 2008 | BT's Superfast Broadband: Call or Bluff?
My first paper as a Yankee Group NGA analyst was published during my holiday. It's entitled BT's Superfast Broadband: Call or Bluff? It was written in collaboration with my colleague Camille Mendler and it analyses BT's July NGA announcement. If your company is a Yankee Group customer, you can access this piece on our webiste or through your internal market intelligence contacts.
If you're not, time to lobby the right people!
BT is at last moving on fibre. This is of interest because BT don’t own a cellular network, and their current residential copper access network is functionally separated — a very ‘Telco 2.0’ horizontal model. Is it possible to make money on new network builds without complete vertical integration and a monopoly on services?
We dig into the numbers, and work out whether BT’s shareholders should be concerned, or delighted. (...)