‘Super-fast’ broadband support call

Jul 17 2008 by Andrew Mernin, The Journal

TELECOMS giant BT has urged regional development agency One NorthEast and other public sector bodies to back its bid to bring “super-fast” broadband to the region.

Earlier this week BT announced £1.5bn plans to roll out super-fast broadband to as many as 10 million homes by 2012.

The proposed investment in fibre-based services will deliver top speeds of up to 100 Mb/s (megabits per second) with the potential for speeds of more than 1,000 Mb/s in the future.

BT described the move as a bold step but said the investment was dependent on a “supportive and enduring” regulatory environment.

And now the company has called on North East bodies to take action in support of the project as areas with strong public sector interest will benefit from the technology first.

BT said it would focus its investment in places where there was a strong public sector interest in partnering with BT and using the new services.

The investment is the largest of its kind ever seen in the UK and forms part of BT’s wider strategy of delivering next generation broadband services nationwide.

BT’s North East regional director Chris Sayers said: “The North East is already a tremendous broadband success story and this is a great opportunity for us to be on the front page of the next chapter of that story. BT is keen to invest further in the North East so it is important that the region’s public sector works with us to ensure the funds are directed to our region.

“We are keen to partner with people who share our vision for the next phase of the broadband revolution – and we look forward to discussing with our North East partners ways we might work together to ensure super-fast broadband is built when and where it is most needed.

“There is no predetermined single model, but we are keen to explore, for example, ways in which local demand can be created or stimulated to help shape and direct our investments. Our aim is that urban and rural areas alike will benefit from our investment so this is a big opportunity for all parts of the North East.

Meanwhile, One NorthEast last night said is was open to negotiations with BT over putting its weight behind the super-fast broadband plan.

One NorthEast head of business investment, Simon Goon, said: “One NorthEast has a proven track history of delivering large-scale broadband projects in partnership with BT. In 2005 the Agency invested £2m in upgrading 26 telephone exchanges, which brought broadband to the final few communities in the region and made the region the most broadband-connected in the country outside London.

“We welcome BT’s plans to improve the broadband service further and look forward to discussing this project with the company in more detail.”

According to BT chief executive Ian Livingston, both rural and urban areas will benefit from BT's super-fast broadband plan.

He said: "Our aim is that urban and rural areas alike will benefit from our investment.”

BT will make the service available on an equivalent basis to all communication providers.

Virgin Media this week pointed out it was already working on bringing 50Mbs broadband to 12 million homes between now and the middle of 2009.

BT said it planned discussions with regulator Ofcom to determine the framework it believes is necessary to enable the programme to progress. It wants to ensure that anyone who chooses to invest in fibre can earn a fair rate of return for their shareholders.

BT’s announcement comes amid growing demand for greater bandwidth from broadband providers and consumers, particularly among those who watch the BBC iPlayer service or download films.

Copper-based services already offer sufficient speed for services such as high-definition television, but fibre-optic-based networks will allow several such operations simultaneously.

The Broadband Stakeholder Group (BSG) welcomed today’s announcement and called on Ofcom to move quickly to create a regulatory framework that both enables large-scale investment and ensures effective competition.

BSG chief executive Antony Walker said: ``There has been a question mark hanging over the UK telecoms sector for the last 18 months about how we move to next generation broadband.

"Today’s announcement is by no means the whole answer - there are still questions about the regulatory framework and how we extend services to more rural areas - but it is a very significant step forward.”

Ofcom said it planned to publish further proposals on the regulatory framework for next generation access networks in September.

Ed Richards, Ofcom chief executive, said: ``Industry cannot achieve a move as significant as the launch of super-fast broadband on its own.

Ofcom has led the way in prompting a debate about the regulatory environment for super-fast broadband deployment.

``With this announcement industry will need further regulatory detail and that is exactly what Ofcom will provide.”

Business secretary John Hutton said: ``This investment by BT will mark a significant step forward for consumers and businesses in obtaining next generation broadband in the UK and is an excellent example of the market delivering the communications infrastructure Britain needs for long-term competitiveness and growth in the knowledge-based economy.”