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BSG "Pipe Dreams?" Report

BSG Pipe Dreams report The BSG recently published their "Pipe Dreams?" report, investigating the need for high-speed broadband access and the UK's progress.

There is already a pent-up demand for far higher speed access to deliver a much rich mix of content, including video. Our current telecommunications network can only support a proportion of this performance for upto 50% of the UK population. Rural and poorer urban areas will be left behind - again.

It is estimated that it will require and investment of about £10bn to build this 21st century access network - but at the moment there are few signs that this will happen in the UK any time soon, while rapid progress is being made across Europe.

CBN board members provided input to the BSG's body of research and we welcome this valuable addition to the NextGen debate. 

The full report can be downloaded from the BSG website

 
Latest from CBN
It's been an exciting time at CBN since Christmas as work has started in earnest on the Independent Networks Cooperative Association (INCA).  A key part of Digital Britain, INCA will bring together networks from across the UK to jointly purchase and sell services.  A key barrier for many networks is accessing the sorts of services their customers want, from telehealth to video on demand.  INCA takes a massive step forward in making this sort of co-operation a reality.
 
INCA was a CBN concept, which we have promoted and nurtured to the point where it was backed by the Government last Christmas.  INCA’s long term future will be as a completely separate entity, but in the meantime, members of the CBN team have been seconded to get the ball rolling.  New organisations find the first few months the most challenging, so CBN’s support is critical to its future success and that of the increasing number of networks who will rely on INCA for services.
 
At the same time, we are working with Advantage West Midlands on their Next Generation Strategy and feeding into the Valuation Office consultation on community networks.
 
CBN Autumn Newsletter

Download CBN's latest newsletter to find out about developments in open next generation networks in the UK and how the UK's community broadband experience is making an impact in Africa. 

 icon CBN Newsletter - Autumn 2007 (444.69 KB)

 
Rating the future

There have been growing rumours that the government is planning to introduce a tax on wireless broadband. A well reasoned blog on the subject can be found here .

At the moment, telecoms ducts – the pipes telephone cables pass through to reach homes and businesses - are essentially treated as offices and are therefore subject to business rates. The premise of the blog is that the Government is planning to extend the rates rules to wireless networks as well as wired ones.

For around a third of rural homes and businesses, broadband competition is yet to arrive – the only broadband offerings are resold BT Wholesale packages. In contrast, customers in London can typically expect around 8 competitors to BT using ADSL plus a variety of cable and wireless broadband offerings.

Around a one in five rural homes and businesses fall below the Government’s “universal service commitment” of 2Mbps, while many urban homes are able to receive services up to, and sometimes over, 50Mbps.

In hard to reach rural areas, the only broadband providers are often small, community run wireless projects – projects like South Witham in Lincolnshire.

Stephen Timms, the Minister responsible for implementing Digital Britain, writing in The Telegraph, laid out plans to provide funds to rural areas to ensure they reach the minimum broadband levels today, and will not be left behind as urban areas start to enjoy next generation broadband. However, in reply to a question, the Department for Business, Innovation and Skills confirmed that rating wireless broadband is indeed something the Government have had in the pipeline for some time so that, in their words, wireless networks are treated in an equivalent way to fixed networks.

Adding business rates to wireless broadband isn’t going to raise large sums from highly profitable publicly quoted companies, cherry picking highly profitable areas – but it will add a burden to organisations prepared to deliver a community solution where no-one else has. Some of these rural areas may even lose their only source of broadband as a result of this proposal.

Funding made available through Digital Britain will be drawn back to central Government by the Valuations Office Agency.

Rather than extending the rating rules on telecommunications, something unique to the UK, CBN would like politicians to consider an alternative approach aimed at genuinely encouraging diversity and investment in Britain’s rural areas.

Currently, charities are automatically given rate relief, and social enterprises may qualify at the Local Authority's discretion. If the Government were to consider guidelines which would allow community-owned broadband networks to automatically qualify for rate relief if they had a charter which ensured the benefit and profits were retained for the community, then diversity and investment in rural areas could be seen to have been encouraged.

As fibre-optic networks tend to create natural local monopolies, the rules may need to ensure only wholesale open networks qualify if they are to meet existing competition requirements. However, INCA is working hard to make sure that diverse services can be made available to all areas, regardless of their size and remoteness. Service competition in rural areas is to be welcomed and encouraged too!

Such guidelines should be cost neutral to Government coffers because so long as the current rules remain, investment in broadband will be heavily reduced. If, however, the networks become useful for delivering public services in rural areas, then they may actually become a useful tool in reducing public expenditure, especially for health and education.

Local authorities, communities and Government agencies can work together to help reduce the cost of delivering public services in rural areas – but only if the infrastructure is there.

 
NGA Scenarios revisited

In the early part of 2008 CBN did some thinking around scenarios for successful next generation broadband deployment and how they may play out in the UK. This resulted in a short "think piece" being written in June of last year suggesting three possible scenarios, marking the birth of the "patchwork quilt" concept that makes a virtue out of a fragmenting market, and led to CBN's work on the INCA framework and the JON concept.

With the emergence of the COTS discussion forum, we have republished this piece here to aid the debate for those new to the concepts.

For information about INCA and the JON concept, contact us here.

 
A BETting chance?

The Digital Britain process recommended a “universal service commitment” of 2Mbps – that where it was reasonable, every household and business in Britain should reasonably expect at least 2 Mbps broadband.

BT’s initial response to this is something they call “Broadband Enabling Technology” or BET. So what is BET, and it is a useful addition to the kitbag of rural communities trying to receive broadband?

This paper takes a look at the implications of the BET, but if you want to skip straight to a one line synopsis, it is difficult to see how BT’s BET can be anything but a cynical attempt to delay investments in realistic solutions to rural broadband problems.

To find out why BET justifies such strong conclusion and to understand a little more about its potential role, if any, in a rural broadband toolkit, download the CBN whitepaper.

icon BT BETting on the future (501.63 KB) 
 
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