The need for ultrafast broadband is ever-growing. Telecoms giant, BT will be making a huge investment in their network over the next three years, in a bid to stave off an attack on its Openreach division.
The investment will be ploughed into providing ultrafast internet services, via both broadband and its 4g mobile network, which was acquired from EE. They are aiming to ensure 10-12 million premises receive their ultrafast fibre broadband by 2020. Coverage for their 4g services for mobiles will also be improved, ensuring faster connectivity across the country.
The majority of the homes reached with BT’s ultrafast broadband over the next three years will still only be receiving a fibre connection through BT’s G Fast network, which utilises FTTC technology rather than the considerably faster FTTH/FTTP system. FTTC uses fibre optic cables to the cabinet on the street. The connection from the cabinet to the home is then carried along traditional copper cabling, which slows down the speed. The further away the premises is from the cabinet, the more the speed will be impacted.
BT say 2 million homes will be receiving fibre direct to their home. This is however, a very small percentage of the UK population, with the majority of these being to new housing developments, high streets and business parks.
Competitor, Sky feel BT’s promises have ‘limited ambition’ and have renewed calls to see Openreach split from BT.
Sky’s chief financial officer, Andrew Griffith has said, “This limited ambition has been dragged out of BT by the threat of regulatory action, demonstrating once again why an independent Openreach, free to raise its own long-term capital, is the best way for the UK to get the fibre network it needs.”
Gavin Patterson, chief executive of BT, said the investment was subject to “regulatory certainty”
BT have been in dispute with regulatory body, Ofcom over the future of their Openreach division, which manages fixed line and broadband services across the UK for BT and other providers. Ofcom’s review of Britain’s digital market earlier this year, didn’t quite manage to enforce a separation but they have said BT needs to ‘guarantee greater independence and autonomy of Openreach in the future.’
It has been rumoured that BT are willing to give Openreach more freedom, but they draw the line at any form of legal separation.
The money will also help BT to reach their promise of providing 95% of the UK with 4g mobile signal by 2020.
The investment in the 4g network, which will also provide the emergency services with a fast and reliable voice and data connection in rural areas, will be welcomed in said areas which are always last on the list when it comes to faster connectivity. Critics have slammed the fact that they may be the only 4g provider in many rural areas though, reducing competition and choice.
BT’s position in the market is strong at the moment. Their acquisition of EE has positioned them at the forefront of TV and communications in the UK. Shares are up by more than 3 percent as their consumer business has shown the highest growth.