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Author Topic: BT to make ‘double-digit return’ on £12bn broadband roll-out  (Read 733 times)

gt94sss2

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Quote
BT will this week be given the green light to make a double-digit rate of return on a £12 billion investment in full-fibre broadband, in a key verdict by the telecoms watchdog.

Ofcom is poised to say on Thursday that the former state monopoly’s Openreach division will be able to make a “fair” return on its work to connect 20 million homes to super-fast internet.

However, BT and the regulator have also been in conflict over the length of time that BT will enjoy that promise. In a speech last December, Ofcom boss Melanie Dawes said it would not impose price controls on full-fibre broadband for 11 years. BT has been pushing for 20 years, arguing that its investors need to make 10 to 12 per cent over the lifetime of the project. Ofcom’s review will be scrutinised closely for the length of its assurances.

The pledge on a “fair” return is likely to be welcomed by the government, which wants 85 per cent of homes connected to gigabit-capable broadband by 2025.

However, it will be a blow to companies that use Openreach’s network, such as TalkTalk, which have argued that it will mean higher prices for consumers.
Ofcom is set to be handed new powers to intervene if it sees anti-competitive behaviour by Openreach. BT will have to ask permission to challenge the “altnets”, such as CityFibre, in some areas. Also, Ofcom will have longer to scrutinise changes to commercial terms by BT and decide whether they would deter competition.

The outcome of the review comes a fortnight after news of the resignation of BT chairman Jan du Plessis.

From https://www.thetimes.co.uk/article/bt-to-make-double-digit-return-on-12bn-broadband-roll-out-bxhs5k3q9/
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meritez

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #1 on: March 14, 2021, 07:23:28 PM »

Tomorrow talktalk is no longer on the London Stock Exchange: https://www.business-live.co.uk/retail-consumer/11bn-takeover-talktalk-clears-final-20040645

Interesting times we are in regarding broadband
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Chrysalis

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #3 on: March 18, 2021, 03:29:56 PM »

In my opinion this is good news, price controls we have seen the CPs abuse their position and not pass on the savings to consumers so in reality its only served to cripple openreach.
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meritez

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #4 on: April 01, 2021, 02:13:10 PM »

Almost like Ofcom handed out blank cheques to Openreach and asked them fill in the figures themselves:

Quote
Openreach has said it will raise the cost of installing and delivering certain “legacy” wholesale products, including FTTC and copper, in order to spread the cost of the ongoing full-fibre rollout.
https://www.theregister.com/2021/04/01/openreach_hikes_cost_of_legacy/

Cost of line rental, adsl and fttc is going up for everyone so that the few can have FTTP installed:
https://www.ispreview.co.uk/index.php/2021/03/openreach-uk-raise-copper-line-prices-to-fuel-full-fibre-rollout.html

Pricing for wholesale is here: https://www.openreach.co.uk/orpg/home/products/pricing/loadPricingNotifications.do
to save you clicking, El Reg have listed:

Quote
Published yesterday, the new pricing saw the cost of obtaining a WLR (Wholesale Line Rental, used by third-party ISPs to provide phone and broadband service) jump by 35 per cent (or £10.93) from £31.22 to £42.15.

Openreach has also said it will charge more for ongoing WLR connections, with the price of basic line rental increasing by £4.28 from £92.44 to £96.72 per annum. Premium line rental will increase by £4.32 from £114 to £118.32.

Openreach has also raised the cost of renting a copper MPF LLU line (used for both phone and broadband connections), which will rise by 79p from £85.38 to £86.16 per annum. New MPF LLU connections have increased by 22p, from £24.79 to £25.01.

Installing SOGEA FTTC (Single Order Generic Ethernet Access, or put simply, broadband without the option of added phone line) connections have risen by 60p from £83 to £83.60. FTTC installs with an added phone connection will rise by 43p from £46.84 to £47.27 irrespective of speed.

Line rental is a different story, and the yearly wholesale cost of a basic 18Mbps/2Mbps FTTC connection has increased by 48p (from £48 to £48.48), and the fastest 330Mbps/50Mbps lines seeing a £2.68 hike (from £179.88 to £181.56).

ISPReview have stated that an 80/20 FTTC will cost a Communication Provider an extra £1.68 a year:
Quote
For example, the annual rental on various FTTC speeds has gone up by between £0.48 to £1.68 (+vat) and it’s a similar story for installation services, migrations and various other products etc.

Looks like this pricing comes in from July 2021  :-\



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CarlT

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #5 on: April 01, 2021, 05:19:53 PM »

FTTP is also going up and remains more expensive than copper equivalents?

SOGEA 0.5/0.5 Mbit/s   7, 8   01/07/2021      93.12
SOGEA 40/10 Mbit/s   9   01/07/2021      146.79
SOGEA 55/10 Mbit/s   10   01/07/2021      187.68
SOGEA 80/20 Mbit/s   11   01/07/2021      206.40
SOGEA 160/30 Mbit/s   12   01/07/2021      225.12
SOGEA 330/50 Mbit/s   13   01/07/2021      267.48

Up to 0.5Mbit/s / 0.5Mbit/s   note 9, 10   01/07/2021      93.12
Up to 40Mbit/s / 10Mbit/s   note 7   01/07/2021      167.11
Up to 40Mbit/s / 10Mbit/s where GEA FTTC 40/10 is not available   note 7   01/07/2021      167.11
Up to 55Mbit/s / 10Mbit/s      01/07/2021      203.40
Up to 80Mbit/s / 20Mbit/s      01/07/2021      209.28
Up to 330Mbit/s / 50Mbit/s      01/07/2021      294.12

Is 2/3rds of the country 'the few'? Most of the rises are on WLR which Openreach want shot of anyway and will be closing - CPs can migrate customers to SoGEA and VoIP - same as most new provisions via FTTC/P right now.

WLR is a legacy product gratefully forgotten - Openreach shouldn't be running decades-old POTS switches in 2021 let alone 2031.
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meritez

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #6 on: April 01, 2021, 07:44:53 PM »

@CarlT,

FTTC and SOGEA are copper legacy products though, you would not migrate from copper to copper, you need to go straight to FTTP.

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CarlT

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #7 on: April 02, 2021, 11:43:48 AM »

You would if you were a service provider not wanting to pay higher WLR charges.
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meritez

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #8 on: April 02, 2021, 02:59:20 PM »

You would if you were a service provider not wanting to pay higher WLR charges.

So the customers who can't get FTTC need to upgrade to FTTC?

Surely openreach should be installing FTTP there and not SOGEA or FTTC.
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CarlT

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #9 on: April 02, 2021, 03:09:40 PM »

Sorry, I'm lost. I was merely making the point that FTTP remains more expensive that the copper equivalents in nearly every case and it's unfair to describe the Openreach FTTP deployment as being for 'few'.

EDIT: SoGEA is just broadband without the phoneline - various providers use it now in combination with VoIP and I'm sure more will come. https://www.btwholesale.com/products-and-services/data/sogea.html

Regarding where there's no FTTC available SoTAP - https://www.openreach.co.uk/cpportal/products/copper/sotap or MPF LLU - https://www.openreach.co.uk/cpportal/products/copper/mpf-smpf - both avoid WLR.
« Last Edit: April 02, 2021, 03:23:58 PM by CarlT »
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Bowdon

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Re: BT to make ‘double-digit return’ on £12bn broadband roll-out
« Reply #10 on: April 05, 2021, 11:41:15 AM »

I don't mind paying a little extra if it helps the rollout of FTTP services quicker.

I think if someone is still on ADSL products, or gets a very low speed FTTC connection, as long as they aren't a gamer, maybe they should look around for 4G or 5G mobile coverage. If there is some mobile coverage it might work out being more cost effective to use mobile broadband.
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