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Author Topic: Joe Garners thoughts .....  (Read 1815 times)

Black Sheep

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Joe Garners thoughts .....
« on: September 15, 2015, 07:17:08 AM »

Regarding hiving off OR.

The Daily Telegraph, Monday 14 September 2015

‘A huge mistake if Openreach were spun off as an independent company'
Openreach, Britain’s biggest digital infrastructure operator, is 10 years old this month. In 2005, Thefacebook (as it was called then) was only available to students in some US universities. YouTube had launched, but Twitter hadn’t yet hatched. Facebook alone now has more users than the entire internet did then.
The year 2005 was also when broadband reached more than half of British households. The typical speed then was one megabit per second, which meant it took longer to download a film than to watch it.
Openreach was established to build and maintain the network of fibres, wires and cables that connects homes and businesses to phone, broadband, data and TV services in Britain.
Openreach provides a level-playing field by giving equal access to its network, which means that over 500 communication providers, such as Talk Talk, Sky, and Vodafone among others, can buy the same services as BT’s retail arm, for exactly the same price. This gives consumers and businesses a wide range of choice.
And in the decade we have existed, the digital landscape has changed dramatically.

More people, spend more time, online and consume more data than ever before. Over 40 million Brits now use the internet every day. We spend more than 20 hours a week online, more than twice 10 years ago. As a result, demand for data has more than doubled since 2012 and we are seeing a 62pc rise per user, per year.
Given the pace of change, it’s only right that the telecoms regulator, Ofcom, has decided to look at what Britain needs in the digital space in future. Its Digital Communications Review needs to ensure that regulations are fit for the next decade.
Ofcom’s first decade as telecoms regulator has, on any measure, been a great success. Its practical approach to regulation created a vibrant and competitive communications market that has benefited individuals, businesses and the wider economy.
This fact is in danger of being lost, amid the chatter and commotion of the review, much of it targeted at Openreach. BT’s competitors want Openreach to be spun off as an independent company. In my view, this would be a huge mistake.
Britain has gained, and will continue to gain from Openreach as a part of BT – benefiting from more investment, more coverage and more speed.

On investment, BT provides us with ready access to capital. BT’s capital allowed us to meet the rapidly rising demand for internet services by rolling out superfast broadband which is, incidentally, 20 times faster than in 2005 and half the price.
Our fibre roll-out might look like an obvious investment today, but it didn’t in 2009. Who other than BT would have had the courage to invest £2.5bn in superfast broadband when no one else was interested? Our fibre build has been massive and, with demand for new connections rising by 75pc since 2011, it’s true that sometimes we (and our customers) have felt the strain.
Since I joined Openreach 18 months ago, getting our service on track has been my number one focus and I’m pleased to report that we are now delivering on time more often and fixing faults quicker. We’ve invested in hiring 3,000 new engineers and last year we exceeded every one of our regulator’s tough new service targets. We’ve halved complaints in the last 18 months.
The pay-off is that Britain has the lowest landline, broadband and superfast broadband prices among major economies, and our coverage and take-up is ahead of all other major EU countries.

Openreach’s fibre broadband now reaches over 23 million homes and businesses – 10 million more than any other provider. We’re totally committed to helping the Government reach its target of 95pc superfast availability by the end of 2017.
The Internet of Things is going to wire up our houses, businesses and communities in ways we can’t even guess at. Google driverless cars have been tested for two million miles without causing a single accident and could be on sale by 2020. Robotic surgery is already being regularly used in cancer operations at places like the Royal Marsden in London. Fast, robust internet could help make driverless cars and telesurgery an everyday reality.

More demand means the next leap needs to be from superfast to ultrafast. Fortunately, researchers at BT’s world-class Adastral Park campus in Suffolk have been working on the next big innovation, a technology called “G.fast” that’s being trialled in Cambridgeshire, Tyne and Wear and Wales.
Properties using “G.fast” enjoy speeds of 330 megabits per second – 15 times faster than today’s average and cutting the time to download a film from minutes to seconds.
Innovation like this is testament to the fact that the industry structure continues to deliver. BT Group gives Openreach stability, a nationwide strategy, capital and – crucially – access to some of the world’s most important telecoms research and development. With BT’s financial muscle underpinning us, we expect to put ultrafast within reach of the majority of homes in Britain in under 10 years.

In 2005, all the buzz was about the new Star Wars film; England winning the Ashes was a DVD best-seller; and Coronation Street was the most-watched TV programme, so not everything changes. But we will need to keep rolling out state-of-the-art infrastructure to stay a leader in the digital world.
I believe that, as a functionally separate part of BT Group, as today, Openreach is best placed to deliver the cutting edge developments needed.
Openreach offers Britain the best of both worlds: access to the capital, knowledge and expertise of the group, underpinning a nationwide network infrastructure accessible at the same price to all comers.
This has delivered the vibrant and competitive market consumers and businesses want. It has delivered superfast broadband in the last five years, and will deliver ultrafast in the next 10.

As part of BT, Openreach will deliver more investment, more coverage, more speed.
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Weaver

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Re: Joe Garners thoughts .....
« Reply #1 on: September 15, 2015, 08:00:32 AM »

Hiving off Openreach would be very disruptive, just politically motivated.

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kitz

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Re: Joe Garners thoughts .....
« Reply #2 on: September 18, 2015, 06:31:40 PM »

Thank you for sharing.   For those interested the original article can be read here

Quote
Hiving off Openreach would be very disruptive

This I agree with,  I dont see how it would make things better.  The grass isnt always greener on the other side.   I can understand why the likes of Sky & TT are calling for it though.   I do believe it would cause a lot of red tape, slow progress and make investment by Openreach far more difficult.
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guest

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Re: Joe Garners thoughts .....
« Reply #3 on: September 18, 2015, 08:30:36 PM »

I think the converse would be true kitz and much more investment would happen.

In NZ (where BT don't want you to look) the equivalent of Openreach has so much (new) business it can barely cope. The equivalent retail incumbent is dying a death due to complacency & high prices.

I honestly think that if Openreach/BTW were "set free" from the retail monolith that is BT then they'd be one of the top 5 "technology/infrastructure" suppliers in Europe - on every metric.

Sky are investing serious money with TT on "spades in ground" infrastructure now - do you not think they'd much rather do that with Openreach if Openreach wasn't driven by BT Group objectives (football/TV)?

We'll see but the current situation is not tenable for much longer.

Edit : its worth noting that the Telegraph article by a Sky exec is true - Openreach's overall capital expenditure has not increased significantly in the last 5 years when viewed in terms of revenue. Go figure.
« Last Edit: September 18, 2015, 08:34:30 PM by rizla »
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GigabitEthernet

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Re: Joe Garners thoughts .....
« Reply #4 on: September 18, 2015, 08:32:41 PM »

I seriously think we would all have FTTP right now if Openreach had been split off in the early 2000s.
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guest

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Re: Joe Garners thoughts .....
« Reply #5 on: September 18, 2015, 08:41:33 PM »

I seriously think we would all have FTTP right now if Openreach had been split off in the early 2000s.

I don't but we wouldn't be looking at the lunacy which is a widescale g.fast node rollout.
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