Kitz ADSL Broadband Information
adsl spacer  
Support this site
Home Broadband ISPs Tech Routers Wiki Forum
 
     
   Compare ISP   Rate your ISP
   Glossary   Glossary
 
Please login or register.

Login with username, password and session length
Advanced search  

News:

Author Topic: Barclays Hit BT Share Price Over Wholesale Fibre Optic Competition  (Read 1243 times)

Bowdon

  • Content Team
  • Kitizen
  • *
  • Posts: 2395

https://www.ispreview.co.uk/index.php/2018/05/barclays-hit-bt-share-price-over-wholesale-fibre-optic-competition.html

Quote
Barclays has cut its rating on BT from “overweight” to “equal weight” and reduced their price target on shares by 20% to 280p. The broker reasons that BT’s network access division (Openreach) is coming under pressure in the UK wholesale market from rival “full fibre” (FTTP/H) broadband ISPs.

Readers of ISPreview.co.uk will no doubt already be familiar with the changing structure of the United Kingdom’s fixed line broadband market, which over the past year has seen a growing variety of alternative network providers (AltNets) announce major investments in new fibre optic networks.

At present only around 4% of the UK (1.2 million premises) can access a Gigabit capable Fibre-to-the-Premises (FTTP) style broadband network. However it remains to be seen precisely how many of the big commitments by AltNet ISPs will turn into actual networks or merely end up overbuilding existing networks. Nevertheless the level of investment involved shows that there is serious weight behind almost all of the projects.

Quote
    Barclays Statement

    “We see ‘wholesale-only’ providers potentially shifting the risk-reward profile for FTTH investment in Europe, principally in markets such as the UK and Germany where there is a heavy reliance on the incumbent for wholesale access, and a lack of existing FTTH infrastructure … an acceleration of FTTH investment looks to us all but inevitable.”

An interesting statement and I think reflects the current situation. Hopefully that will change as the BT/OR investment takes off.

The market seems to be a battlefield at the moment with the AltNet's running forward while OR are starting to move. I guess we'll see the true position of all the networks in a couple of years time.

It's mentioned in the ispreview article about a danger of overbuild. I think this is purely an academic point at the moment as in the same article it says only 4% of the UK can access FTTP. I don't think we'll know if overbuild is a problem until we get to at least 20%.
Logged
BT Full Fibre 500 - Smart Hub 2

waltergmw

  • Kitizen
  • ****
  • Posts: 2776
Re: Barclays Hit BT Share Price Over Wholesale Fibre Optic Competition
« Reply #1 on: May 04, 2018, 11:10:17 PM »

@ Bowden,

I suspect statistics are of reduced value particularly in Rural areas.
B4RN don't attempt to compete with BT in the larger conurbations when D side distances are ofter quite short.
It's an entirely different story in sparser more rural locations where BT are virtually ignored by B4RN as their price / performance curve renders them uncompetitive.
Furthermore the rural communities have suffered for so long which encourages their community spirit to "just Do It" themselves.
As a shareholder there won't be many who would opt for any service other than B4RNs.
Network topology doesn't help BT either as many smaller exchanges had EO lines but are now equipped with cabinets close-by the exchanges such as in Silverdale and Ingleton leaving a significant number of lines far too long for VDSL.
Another example is the village of Cockerham with a PCP and FTTC fed from the Forton exchange but a large number of lines within a few hundred of metres of the Forton PCP are EO lines all the way from the Galgate exchange.

That said the whole of the B4RN area now equating to the size of the M25 ring but only has a few thousand long-distance properties.

Kind regards,
Walter



Logged

niemand

  • Kitizen
  • ****
  • Posts: 1836
Re: Barclays Hit BT Share Price Over Wholesale Fibre Optic Competition
« Reply #2 on: May 05, 2018, 03:16:27 PM »

BT tend to lose money in rural areas so all pretty irrelevant as far as the finance people go. BT would I imagine be delighted to be rid of long rural loops.
Logged
 

anything