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Author Topic: Openreach Needs Fiber Partners for UK Rollout, Says Chairman  (Read 2055 times)

WWWombat

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Openreach Needs Fiber Partners for UK Rollout, Says Chairman
« on: October 26, 2017, 03:34:23 PM »

Quote
Speaking at today's Broadband World Forum in Berlin, Openreach Chairman Mike McTighe said the "build it and they will come" approach that BT took with copper broadband would not work when it comes to fiber networks.

"We need a different relationship with customers to consider building a full fiber network."

"We need the industry… to get behind this and figure out collectively how to make it happen, and we need the government and Ofcom to play their part if we are to come up with a compelling investment case that we can take to shareholders. We cannot do this on our own."

http://www.ubb2020.com/author.asp?section_id=473&doc_id=737672&

Quote
But McTighe insisted that Openreach would need to be allowed to switch off its older copper networks as it rolls out fiber and warned of increases in wholesale charges.
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Bowdon

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Re: Openreach Needs Fiber Partners for UK Rollout, Says Chairman
« Reply #1 on: October 26, 2017, 07:42:21 PM »

https://www.ispreview.co.uk/index.php/2017/10/openreach-says-copper-will-run-steam-calls-fttp-support.html

Openreach Says “copper will run out of steam” and Calls for FTTP Support

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Openreach’s (BT) Chairman, Mike McTighe, has told the Broadband World Forum that “we are getting to the point where the copper will run out of steam” and there’s a need to focus on “full fibre” (FTTP/H), but he warned that this could only be done with ISP support and “increases in wholesale pricing.”

It is good to hear an OR boss calling for some focus on FTTP.
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WWWombat

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Re: Openreach Needs Fiber Partners for UK Rollout, Says Chairman
« Reply #2 on: October 27, 2017, 01:49:57 AM »

None of these statements are especially new, though. I recall Openreach said the same sort of things around the time their full-fibre consultation was put in place. (See el reg in August)

Their pitch is that co-operation is needed, not confrontation. And that cooperation includes turning copper off, and throwing away any ADSL-based assets.

Unfortunately, as is clear over in this thread, the current competition aren't even willing to engage "cooperation" mode for the worst-served 2% that would depend on the USO, or would make use of LR-VDSL.

If Openreach are going to find a partner, it will have to be someone not very invested in LLU. Or is willing (for the sake of 5G) to foresake their LLU assets. Would Vodafone count?

IMO ... Openreach might just be making the right noises, to keep Ofcom sweet (after Sharon's threat that they'll be measured on getting a non-BT deal). It is easy to make these "we need fibre, but need help" statemenets, only to end up with "no one wanted to help".
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niemand

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Re: Openreach Needs Fiber Partners for UK Rollout, Says Chairman
« Reply #3 on: October 27, 2017, 02:32:50 PM »

Indeed. This is for Ofcom's consumption more than anything else I imagine.

I'm aware of what they want from ISPs as far as partnership goes - they are looking for 'anchor tenants'. Operators that will commit to moving customers from copper-based solutions to FTTP, very much a 'Bring them and we will build it.' scenario where ISPs and Openreach agree something akin to FTTPoD deployments, but with native FTTP being sold, and operators migrate their customers served by the OLT ports off xDSL technologies and onto the FTTP. This time around, due in no small part to how effective LLU has been at taking market share from BT Wholesale, BT Retail would not be enough of an anchor tenant for Wholesale, and Wholesale in turn for Openreach. They need at least Wholesale and A N Other large provider on board.

Obviously the trouble is TalkTalk are still deploying ADSL. Sky are pretty attached to their copper assets too, Vodafone perhaps less so.

The choice for Ofcom is a simple one - do they keep pandering to LLU operators, it's them that are addicted to copper far more than Openreach are, or do they accept the need to follow the Japanese, and other, examples where every ISP and their dog is purchasing FTTP from NTT. In Japan indeed most are quite aware they are having their services delivered by NTT - they are paying NTT for the FTTP 'line rental' and a service provider charge on top.

Anyone else remember how late Sky and TalkTalk were to FTTC? Did everything they could to cause grief for Openreach and resisted offering it for the longest time to sweat their exchange-based MSANs. They've already essentially blocked LR-VDSL by complaining and lobbying Ofcom quite aggressively for fear of stranding their copper equipment.
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Chrysalis

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Re: Openreach Needs Fiber Partners for UK Rollout, Says Chairman
« Reply #4 on: October 28, 2017, 10:58:04 PM »

The thing is they wouldnt even be completley abandoning it.

The biggest cost of the LLU investment is the backhaul, with FTTC that backhaul is still utilised via a GEA link.The dslam itself is a small part of the cost, so with FTTC they still benefit from their backhaul investments, they dont need to spend the premium on BTw and have more flexibility as a result.

So why are they so attached? I can only assume its down to the rental costs of FTTC ports, they want the absolute minimum operational costs they get with ADSL, I think both companies dont seem to have a rosy future.

Talktalk has been struggling for years, and seem to have nothing to offer to change that.

Sky is heavily reliant on its EPL football and that market is heading for a bubble burst.

So I think neither company will voluntarily jump on board unless they were paid to do so.  This means ofcom needs a change of remit.  To promote investment instead of competition.
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WWWombat

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Re: Openreach Needs Fiber Partners for UK Rollout, Says Chairman
« Reply #5 on: November 02, 2017, 08:40:10 PM »

Does it need to be said that BT Wholesale have to abandon their ADSL hardware just as much as Sky/TT?
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