Structural separation offers the potential for significant value creation, but the risks and complexity of carving out deeply interconnected businesses are great as well. While the jury is still out on whether it will become a more widely adopted business model, success depends on a close understanding of the market and regulatory environment, a comprehensive change-management plan, and an investment case that recognizes that separation is a long-term play that requires considerable ramp-up time and downside protection for ServCo businesses.
Openreach decides to connect more new builds on the house
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As part of its commitment to the build-out of fibre broadband across the UK, the provider has announced that UK developers building smaller new sites of just 20 or more properties are now eligible to have full-fibre connectivity built across their sites at no cost when they register with Openreach.
To date, 99% of plots on development sites of 30 or more homes have registered for FTTP and, since launching in 2016, Openreach has connected 354,000 new-build homes with full-fibre technology. In its current financial year, the company has built full-fibre to 125,000 new-build premises, reaching about 3,500 new premises with full-fibre every week, and says it is on target to reach 175,000 by the end of the current fiscal year in April 2020.
The new small and home office (SoHo) product promises speeds of at least 100Mbps, enhanced reliability, free installation, and dedicated support in 26 towns and UK cities, with connectivity delivered via either the Openreach or CityFibre networks. Coverage will expand to more locations in the coming months.
> Openreach connects six million homes and businesses to full fibre (opens in new tab)> Openreach adds 98 more exchanges to digital migration plans (opens in new tab)> BT says it'll let Openreach go it alone on FTTP rollout (opens in new tab)
Thousands more new-build homes are in line for a broadband boost as Openreach extends the reach of its scheme offering Fibre-to-the-Premises (FTTP) installation free of charge for new housing developments.Developers building smaller new sites of just 20 or more properties are now eligible to have full fibre connectivity built across their sites at no cost when they register with Openreach.[1]
According to a London School of Economics & Political Science study of British homebuyers, a good broadband connection now tops off-street parking and access to local amenities as one of the vital deciding factors for people buying a new house. The study also finds that one in ten buyers have walked away from properties with poor internet connection and that broadband is generally connected even before gas. Home owners in London are willing to pay up to 3 per cent above the market price for properties in areas offering very fast broadband speeds.
We are rebuilding our house and would like to prepare for Frontier internet. Should we have our builder lay the interior cable since access post-dry wall will be more difficult. If so, what are the wire specs?
Your site says there is fiber available to my residence. Are you able to connect to coax cable or does it have to be Ethernet? I had Concast cable in the past and the coax cable is still present from an exterior box into the house.
The latest H1 2022 report into the broadband coverage of new build UK homes reveals that 99.03% of houses constructed during the first half of 2022 were connected to a gigabit-capable network (using full fibre FTTP and Hybrid Fibre Coax), which falls slightly to 98.03% when only looking at FTTP.
That's not entirely true. The cost of adding new wiring after building a house is way, way higher than the cost of adding it during construction. Dropping some dark fiber into the wall while you're pulling coax and phone lines and power wires results in a cost that is not much more than the cost of the materials, because you're doing it all at once, using existing holes, and doing it while the walls are still open. Drilling extra holes and taking down part of the ceiling and snaking it in weird ways through the walls takes way more time, and thus has much higher labor costs.
Infrastructure here is not built out but available. We're talking about conduits blank outlets and building entries for fibre connection. i.e. the rule is in place to prevent a situation where someone installing a gigabit connection would result in half their house being demolished to run cabling. During construction that adds about double digit cost to the building. Retrofit it comes into the thousands for cutting up walls, burring services, replastering, repainting, etc.
There are a few things to note in this. Firstly any development of two or more homes in the UK can get a full fibre connection from Openreach for the same price that they would have in the past provided a copper connection. In fact in these circumstances in 2022 Openreach will *only* provide a full fibre connection. So for 99.999% of all houses built it makes *zero* difference.
I had FTTC for several years for my broadband and was paying about 20 per month (about $24) to rent the copper connection to my house. I few months ago I switched over to FTTP and while there was a 100 installation fee there is strangely no "fibre rental charge". The cost of my broadband went up slightly, but I'm still saving north of 200 per year for a faster connection (115/20 Mbit - up to 1Gbit if I pay more).
Not really. If you are building two or more houses then Openreach (for those not in the UK the main legacy incumbent) will provide a fibre connection for the same price that it would have provided the old copper based telephone line. In fact they won't provide copper based telephone lines to new developments anymore. So it does not constrain the supply of new homes in any reasonable manner.
In 2009, BT announced that Openreach would connect 2.5 million British homes to the higher speed FTTP network service by 2012 and 25% of the UK.[7] In July 2010 Openreach signed an 800 million contract with ECI Telecom to help it service and create a fibre-optic network serving 18 million households in the UK.[8] The deal was the largest in ECI's history.[9] However, by the end of September 2015 only 250,000 homes were connected.[7] Instead, BT offered an "FTTP on Demand" product.[10] In 2017, Openreach proposed offering super-fast fibre broadband to 10 million homes by 2025, using fibre to the premises (FTTP) technology.[9]
In January 2016, a cross-party report by the British Infrastructure Group of MPs, working from data from the Office for National Statistics, found that around 5.7 million broadband customers in the UK had internet connections that did not reach Ofcom's acceptable minimum speed of 10Mbit/s. Around 3.5 million of the customers affected lived in rural areas.[25] The Digital Economy Act 2017 originally included a proposal for a legal right to a minimum download speed but this was dropped before the bill became law.[26] The government subsequently made a proposal for a universal service obligation (USO) granting remote households the right to request broadband speeds of at least 10Mbit/s. This was countered by an offer made by BT for Openreach to provide the infrastructure for 99% of UK premises to receive download speeds of at least 10Mbit/s by 2020, at a total cost of between 450 million and 600 million.[9]
The service and connectivity that BT provides are more critical today than they ever have been in our lifetime. During this national and global crisis, our priorities are the safety of our colleagues and ensuring that our customers, particularly those that are vulnerable, stay connected. Within the last week or so we focused on implementing a range of initiatives and additional services for our most vulnerable customers and we are pleased to support these sector-wide commitments.
As a provider of services people are relying on now more than ever, we are committed to keeping our customers connected throughout Covid-19 and determined in particular to support and protect vulnerable consumers and those who may become vulnerable as a result of it.
You can find out more about the benefits of an upgrade to Full Fibre broadband at www.openreach.com/fibre-broadband/ultrafast-full-fibre-broadband or by clicking on the link in the 'Other Websites' section of this page.
Berkeley's Chief Executive, Rob Perrins, says that owners expect it to be available from the day they move in and the company would risk losing buyers if new properties didn't offer high-speed connectivity.Berkeley is partnering with Openreach in a nationwide scheme to connect all sizeable new housing developments in the UK with 'full-fibre' Fibre-to-the-Premises technology (FTTP). Launched in February last year, the scheme was initially free for developments of 250 homes or more, then in May 2016 Openreach reduced it to 100 homes, and from November it was reduced further to just 30 homes.So far, Openreach has worked with developers to provide ultrafast broadband to more than 586,000 premises across 2,400 developments registered with Openreach to benefit from a free FTTP infrastructure, with many more expected to join over the coming months.This year, Berkeley Group has adopted 'full fibre' across almost every development it's building and will ensure that this technology is provided to all future homes, to meet increasing customer demands.Rob Perrins said: "For new home buyers, high speed broadband has almost become a given now - it is like the power steering on a car - no one asks whether the car they're buying has it anymore."If we weren't able to offer fibre, I think there would be the real prospect of some people walking away from property sales. It is definitely a factor in the decision making process for people buying new homes.""More and more people are consuming ever more bandwidth - with an increasing use of streaming music services, things like Netflix, Amazon Prime and other video content. And by installing FTTP or 'ultrafast' we can assure customers that they'll have capacity for their future needs. The fact that Openreach's network is open to competition is also a significant factor - people want a choice of broadband provider."Many developers, including Berkeley, are now taking the option of self-installing Openreach equipment to help cut out delays and ensure service provision for when customers move in.Kim Mears, managing director of Infrastructure Delivery at Openreach, added: "We're investing heavily in ultrafast broadband because we're committed to giving the UK a first class network, capable of delivering the very latest communication services for households and businesses."We know that people are passionate about the speed and reliability of the broadband service that their communication provider can offer them, and for some the availability of ultrafast speeds will strongly influence their decision on which new property to buy. 2ff7e9595c
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