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Blogs > Quocirca

Putting more fibre in the UK broadband diet

Rob Bamforth By: Rob Bamforth, Principal Analyst, Quocirca
Published: 31st October 2008
Copyright Quocirca © 2008
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While some parts of UK government think it's time restaurants printed the number of calories against each item on the menu, there is another pressing dietary issue to address—the lack of fibre in the broadband diet. And with the current emphasis on the economy, there appears to be some appetite for spending our way out of recession, so it would be great if this would alleviate some of the squeeze on broadband.

The challenges faced in the UK are not unique, as described in the recent government backed review by Francesco Caio, but despite local loop unbundling, "21st century" network developments by former incumbent BT, and constructive noises by regulator Ofcom, the UK internet infrastructure is in need of significant investment, as outlined in Quocirca's recent report, "Superhighway at the crossroads".

Several estimates put the figure for providing a fibre broadband infrastructure to all premises at around £15bn, or about a part share in a bank or former building society. That's still a large amount of money and really only BT has the scale to do the whole thing, although Virgin Media, as a result of the aggregation of the cable industry through the years, also has significant domestic reach, the majority of which is already fibre. So far, Ofcom has recently attempted to encourage broader investment, and BT has chipped in with a pledge to spend £1.5bn on next-generation fibre.

So what more could be done to feed a more piecemeal approach? Are there lower cost alternatives?

The Caio review suggested looking to reduce cost in the civil engineering—digging up the roads—and one route for that is the current sewer system. Already much used in London as conduits for data, voice and video copper and fibre cabling, it would appear that these are an already proven solution for keeping the cost down. However, not all of these existing "bit" pipes are suitable, in particular in the domestic environment where the pipes are smaller and have other pressing purposes. Still, it might help a little, especially for business connections.

There is also dark fibre to be exploited. Companies such as Geo have perhaps the most significant fibre rich network in the UK. It's based on the latest optical technology, and thanks to Geo's original rich parentage, Hutchison Whampoa, enjoyed a substantial upfront investment. This capacity can now be offered to ISPs, telcos and integrators who want to build and run their own new networks.

Finally, there are economies to be made in the exploitation of the fibres themselves, through the systems that handle the optics. Companies such as Ekinops, who are wringing more out of each fibre by using software-programmable single-chip optics controllers, offering smarter error correction and supporting multiple protocols over one fibre. This means longer distances without amplification, fewer fibres to deliver the same performance and the ability to flexibly adapt to different standards, and their proprietary derivatives.

This can lead to cost savings not only in the hardware used, but can also allow for lower grade fibre to be rolled out and used as effectively as other better quality deployments. It also allows for more incremental approaches so that companies can "pay as they grow", encouraging smaller players into making investments in fibre.

Government and Ofcom should try not to make a big meal out of the UK fibre investment required, just do more to identify core ingredients, work with industry giants such as the BTs of this world to create some recipes that others can follow and outline a menu of options to encourage more diners.

Despite some reservations from Ofcom, Caio and members of the UK government about the value or need for high-speed network services, adopting the right approach would unblock the system, encourage investment and lead to the development of the digital infrastructure necessary for a competitive economy.

If the problem is too big to eat all at once, take smaller mouthfuls, ideally with plenty of fibre.

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