Building a broadband ecosystem<br />Ivan Skenderoski, May 2011<br />
BT is making a major investment in fibre access <br />$4bn investment to roll-out fibre to two-thirds of UK premises by 20...
Our ‘mixed economy’ strategy<br />Exchanges<br />Homes/Businesses<br />ADSL 2+<br />80% UK coverage by 2012<br />Copper (A...
Successful delivery of Superfast Broadband is about more than just high headline speeds <br />Installed Base<br />Coverage...
Open access, competition and consumer choice<br />
CPs can participate across the fibre value chain <br />PIA<br />Physical <br />Infrastructure Access<br />GEA<br />Generic...
Licensing <br />Northern Ireland <br />Cornwall <br /><ul><li>£830m available from licence fee and DSO surplus
BT will make funds available should we be successful in securing some of these funds
BT estimates that this public funding if matched by private investment  could take coverage of fibre to around 90% UK prem...
Most ambitious rural broadband project in the world
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Mr. Ivan Skenderoski's presentation at QITCOM 2011


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Presentation: Building a broadband ecosystem

Mr. Ivan Skenderoski, principal consultant Middle East - BT (British Telecom Group)

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  • In the next 10 minutes I would like to give you a quick overview of some of the main building blocks that are underpinning our super fast broadband programme
  • Here it is the headline - BT is investing US4 bn for the roll out of fibre access to two thirds or 66% of the UK by 2015. We are quite unique at the size of the investment without any public funds support or regulatory regime that will protect the return on our investment. To achieve the 2015 target of 16 million premises passed we need to install more than 30K cabinets, enable more 1000 exchanges, lay down more than 50,000 km of fibre.But we are committed and we are doing it at remarkable pace – 80 to 100 K homes and offices every week. We are deploying the equivalent of the fibre network in Singapore every quarter.More than twice the pace of Deutsche Telecom, AT&amp;T, Verizon &amp; BelgacomThe two initial targets have been achieved – we have just passed the 5 million number and heading at the next target of 10mil by next year.
  • The headline speeds are things that are played around when talking about super fast broadband – but there is much more behind it to make it a success.Telecom service is a volume business so You need to have sufficient coverage You need to be able to create the economy of scale by opening your network so multiple providers could drive demandThe competition will then create products with prices that drive mass adoption.The take-up will be also dependent on your brand and whether you have the right marketing approach.And whilst doing all of this the balance between business and consumer take-up needs to be maintained.
  • Open access – published pricing, well defined interfaces, equal access policy.Our NGA deployment is competition ready from day 1 – currently 45 CPs are already onboard. BT has created a specific framework that underpins fair competition enabling customer choice and great value for money products to be available to the end users.The model starts with openreach which is the last mile network owner. An entity created to protect what was considered national asset and provide equivalence of service to all CPs in the UK. Openreach is the entity behind the current deployment of FTTC and FTTP in the UK.BT wholesale adds aggregation and core network wrap around the openrach service for CP that want to invest less in building their own networks and focus on service and marketing.The effect is vibrant RSP community that includes BT Retail offering great value and choice to the end customers (consumer and businesses).
  • BT provides great flexibility to communication providers (CPs) to chose the way they use our infrastructure and develop their network and service delivery.4 main products are available, 3 from BT Openreach and 1 from BT Wholesale1. PIA – Physical Infrastructure Access allows Communications Providers to rent access to our poles and ducts Products are now being made available on a trial basis – soft launch summer 2011Proposed pricing is competitive against European benchmarks2. SLU is a variation of the LLU product and provides you with access to a partial local loop – CPs can use BT’s last mile copper and install their own equipment at the cabinet point. SLU and PIA are both passive products.3. GEA is the active SFBB product offering for CP that want to interconnect at the exchange level. There are FTTC and FTTP variants of the product.4. WBC is the BT wholesale product to provide national broadband connectivity product with aggregation and transport services. CP take their traffic at specific 20 aggregation nodes at the BT core network.All interfaces are well defined with adequate service support and network QoS parameters.
  • Our business case at the moment stops at 66% as going further the cost raises significantly making the economic case for investment unsustainable – but we are trying various other means to push these boundaries and bridge the funding gap.Here are few examples of how we are partnering to reach the ‘final third’Northern Ireland NI has a couple of cities but is mostly rural In 2004 NI declared itself the first region in the UK with 100% broadband availability NI Executive is keeping up the pace with fibre with their “Next Generation Broadband Project” They want to get high speed broadband to 85% of businesses And they want ALL of those business to see an increase in the speeds they get so they set minimum speed requirements – at least 2Mbps in rural, minimum 10Mbps in urban.The BT &amp; DETI investment will be truly transformational: There’s an extremely small village called Lack – served by the local exchange 10km away Most people in the village are on dial up The cabinet that serves their village will be upgraded to provide them next generation speeds A businessman told us how he had to move his office to get broadband and he could now move back – a local software developer was simply ecstatic -- and a mother talked about how her children&apos;s could now do their GCSE coursework. BT could never justify investing in Lack’s cabinet – working in partnership with DETI we’re making it happen. Iwade BT and Iwade Parish Council have forged an innovative partnership to deliver super-fast fibre broadband to all 1,350 premises in the Kent village By finding additional funding to bridge the gap in BT’s commercial case for rolling out fibre to the village, the local County and Parish Councils have helped BT to put Iwade firmly on the UK’s fibre broadband map
  • We are also very active on the PR and marketing front – Infinity is the brand name behind BT retail SFBB product – we were running competition for individual communities to cast their votes online therefore expressing demand for the service.The results were remarkable.
  • We’re making great progress on this project and fulfilling the promises we’ve made.We’ve developed, re-developed and refined our systems and processes to enable us to deliver fibre faster. We’ve developed 12 new fibre deployment tools. We’re now rolling out at about 500 cabinets each week.And we’re investing massively in training to do this. We’ve doubled the number of apprentices we’re recruiting this year, and we have trained nearly 1.5k additional engineers in the art of managed fibre installs in the last 12 months, and we’ll continue to ramp this up next year.And we have said we’ll be rolling out 25% FTTP within that footprint, and we’ve got very successful trials of delivering FTTP already underway.The network we’re creating is competitive at every layer. Competition is at the heart of the success of the UK telecoms market, and at the heart of Britain’s success in embracing the internet. Competition brings choice, better services, and better prices for consumers. We have 21 service providers – not including BT wholesale, BT Retail or Plusnet – that use our fibre services to offer their fibre services, and Talk Talk have announced they’ll be launching next year which will take that number up to 22. BT Retail launched ‘BT Infinity’ in January 2010 which is one of the most keenly priced services on the market. We have removed the pricing barrier between copper and fibre – if you buy a broadband bundle from BT (from as little as £17.99 a month) and you’re in a fibre area, we’ll upgrade you from copper to fibre for free.
  • Mr. Ivan Skenderoski's presentation at QITCOM 2011

    1. 1. Building a broadband ecosystem<br />Ivan Skenderoski, May 2011<br />
    2. 2. BT is making a major investment in fibre access <br />$4bn investment to roll-out fibre to two-thirds of UK premises by 2015<br />No other company in the world is investing as much in fibre without either public sector support or a regulatory regime that allows the company to make far greater returns<br />Deploying at scale and pace<br />Installing +30,000 cabinets, enabling +1,000 exchanges, laying +50,000km of fibre, supported by23,000 engineers to over 16m premises by 2015<br />> 250 cabinets and 80,000 homes and offices enabled every week <br />ADSL enabled for 99% of all premises <br />2/3 premises passed by 2015<br />1.5m premises passed by summer 2010<br />5m premises passed by Spring <br />2011 <br />10m premises passed by2012<br />
    3. 3. Our ‘mixed economy’ strategy<br />Exchanges<br />Homes/Businesses<br />ADSL 2+<br />80% UK coverage by 2012<br />Copper (ADSL2+)Up to 24Mb/s downstream<br />Copper<br />Cabinet<br />FTTC<br />80 Mb/s downstream in 2012<br />Fibre to the cabinet (FTTC)Up to 40Mb/s downstream<br />Up to 15 Mb/s upstream<br />Copper<br />Fibre<br />FTTP<br />Trial of 1000Mbps downstream<br />400 Mbps upstream<br />Fibre to the premise (FTTP)Up to 100Mb/s downstream<br />Up to 30 Mb/s upstream<br />Fibre<br />
    4. 4. Successful delivery of Superfast Broadband is about more than just high headline speeds <br />Installed Base<br />Coverage<br />Trusted brand and marketing needed to drive take-up by consumers<br />Some suppliers target only urban areas then boast of speed on limited networks<br />Technical advances can further lift speeds beyond those currently envisaged<br />Need to drive business as well as consumer take-up<br />Balanced Scorecard<br />Competitive prices needed to drive take-up<br />Open network needed so multiple providers can drive consumer demand<br />
    5. 5. Open access, competition and consumer choice<br />
    6. 6. CPs can participate across the fibre value chain <br />PIA<br />Physical <br />Infrastructure Access<br />GEA<br />Generic Ethernet Access <br />SLU<br />Sub Loop Unbundling<br />WBC FTTC/FTTP<br />Wholesale Broadband Connect (fibre)<br />WBC FTTC/P<br />GEA<br />SLU<br />PIA<br />Openreach Handover Point<br />Core Network<br />Fibre<br />Underground ‘duct’ or overhead pole<br />New FTTC ‘active’ cabinet<br />
    7. 7. Licensing <br />Northern Ireland <br />Cornwall <br /><ul><li>£830m available from licence fee and DSO surplus
    8. 8. BT will make funds available should we be successful in securing some of these funds
    9. 9. BT estimates that this public funding if matched by private investment could take coverage of fibre to around 90% UK premises
    10. 10. Most ambitious rural broadband project in the world
    11. 11. EU contribution of £53.5m is unlocking a BT investment of £78.5m.
    12. 12. SFBB access up to 90 per cent of local businesses and homes by 2014.
    13. 13. An array of service providers offering competition and innovation
    14. 14. BT has pledged to invest £30m in the government’s Next Generation Broadband Project
    15. 15. FTTC technology to a majority of businesses with other fixed line solutions being used where appropriate
    16. 16. Wholesale level solution to ensure all Service Providers can access services at the same T&Cs and cost.
    17. 17. White label marketing campaign delivered prior to the enablement of an area to generate awareness of next generation broadband </li></ul>DETI objective: “increase the availability of next generation broadband speeds to 85% of businesses by 2011.”<br />Public private partnership to reach the ‘final third’<br />
    18. 18. 12 months ago, many of our customers hadn’t heard of ‘Superfast Broadband’ – now communities are competing for it<br />Race to Infinity has generated a consumer ‘buzz’<br /><ul><li>360k votes cast in a 3 month period (twice as many votes as the US campaign for 1 Gbps speeds)
    19. 19. Power of local, community-based marketing demonstrated
    20. 20. 1.07m visits to the website
    21. 21. 45% of voters did not opt out of marketing (providing 165k marketable records)
    22. 22. Pre-registration on for planned SFBB exchanges increased by 70% throughout the race
    23. 23. 10 exchanges won the competition and will receive SFBB by 2012</li></li></ul><li>BT is keeping its promises<br /> Circa 5 mil million premises already passed <br /> More than 9 million premises announced so far<br /> An additional 41 market towns announced for 2011/12 deployment<br />FTTP customer trials underway in Milton Keynes and London, commercial services launching late 2011<br />Over 360,000 votes cast in Race to Infinity campaign with 10 winning areas <br /> 45 external service providers are selling or trialling SFBB<br />145k BT Infinity installations in first year - ~ 6k sales a week<br />
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