UK broadband update April 2016
Ofcom – Broadband USO developments: Ofcom, having been commissioned by the Department for Culture, Media and Sport (DCMS) to provide technical analysis and recommendations on the proposed universal service obligation (USO) for broadband, launched a consultation on its design (also see last month’s update and further background here). The government’s ambition is to give everyone a right to a broadband connection with a download speed of 10Mbit/s on reasonable request; Ofcom agrees that this is currently an appropriate download speed for a broadband USO (further background here). Aspects considered by Ofcom’s consultation include the specification and scope of the USO, demand, cost, funding and review procedures. DCMS’s previous USO consultation has now closed; Ofcom’s consultation closes on 23 June 2016 (also see commentary from Out-Law). Ofcom will provide its final advice on the USO to Government by the end of 2016, with a progress report due in August.
Ofcom - Business Connectivity Market Review final statement: further to last month's update, Ofcom has published its final statement on its Business Connectivity Market Review following comments received from the European Commission. The Commission did not have serious doubts about the measures set out in Ofcom's draft statement. It asked Ofcom to consider imposing duct and pole access in non-competitive areas (Ofcom is not requiring access to BT’s ducts and poles in relation to the provision of leased line services over the current review period). The Commission also welcomed Ofcom’s intention to deregulate or impose lighter remedies in areas with infrastructure based competition and asked Ofcom to consider a similar imposition in other areas.
More on the broadband USO: the Telegraph, ISP Review and the Huffington Post reported on oral evidence given by Ed Vaizey MP, Minister of State for Culture and the Digital Economy to the House of Commons Culture, Media and Sport Committee inquiry Establishing world-class connectivity throughout the UK. He remarked that individuals and communities in the hardest to reach areas may have to contribute towards the cost of delivering the USO; the Country Land & Business Association called for compensation for all those who are denied access to 10Mbit/s speeds in its announcement of its response to the government’s USO consultation.
UK hits 90% superfast broadband coverage target: ThinkBroadband reported that, based on its analysis, the UK has now reached 90% superfast broadband coverage (based on speeds above 24Mbit/s). See commentaries from the BBC and Computer Weekly; also this month Openreach announced that its fibre network now passes 25 million UK premises. ThinkBroadband will continue to monitor progress towards 90% availability of 30Mbit/s and faster services as well as progress towards 95% coverage. A study of average broadband speeds in UK cities conducted by uSwitch found that Middlesbrough had the highest with 34.46Mbit/s while Hull was the lowest with 12.42Mbit/s. Ofcom recently published an update to the European Broadband Scorecard; this documents aspects of fixed and mobile broadband performance across other EU countries for the purpose of measuring and comparing the UK’s relative performance.
UK appoints first National Technology Adviser: the government announced the appointment of the UK’s first National Technology Adviser: “Building on his previous role as government Chief Technology Officer (CTO), Liam Maxwell’s new role will see him expand the government’s relationships with the digital and technology industry to boost the UK’s digital economy and provide world class public services for citizens.”
Broadband speed advertising: BBC News and the Telegraph reported on calls by the British Infrastructure Group, a cross-party group of 50 MPs, to address what it regards as misleading advertising of broadband speeds (more background on the group here). It is particularly concerned that providers of "up to" broadband services only have to prove that one in 10 customers could reach that level to remain within current advertising rules. The Advertising Standards Authority (ASA) signalled the need for change in the advertising of broadband prices in January; it will make new recommendations by 30 May 2016. (In the US, the Federal Communications Commission (FCC) announced “new broadband labels to provide consumers of mobile and fixed broadband Internet service with easy-to-understand information about price and performance.”)
Residential broadband increases in importance: research by Vodafone found that new homeowners in Britain see setting up their broadband service as a bigger priority than their gas or water supply when moving in. One in five respondents ranked broadband as their top priority utility to organise, with broadband also proving the second highest priority overall, beating water into 3rd place which received 13% of votes (electricity was the highest priority with 53%). Research by Hyperoptic found that anything less than 9Mbit/s would put a potential purchaser off a property and that people would spend 11% more for a property with 100Mbit/s broadband. Sixty-two percent of respondents regarded broadband as being of equal or more importance than an extra bedroom.
