Monthly Archive for November, 2009

Market-led patchwork NGA


Recent events have, in many ways, brought the manifold strands of into a sharper focus: the INCA/COTS workshop at NextGen09, recent political speeches from the main parties, and various side meetings with players and commentators during the work towards INCA. The Sky/TalkTalk proposal to the COTS process, in this regard, has acted as a useful stake in the ground; something around which to consider the wider issues of so far as both BSG and INCA members are concerned. In summary, there is a sense that actually the question isn’t whether the proposal has added anything useful to the debate but about what that debate should be. So this paper explores the wider questions of what needs to be achieved to unlock , and how that may affect the COTS work.

Asking the right questions

There is no doubt that COTS members are framing many of the right concerns and issues but the strict sense of the process is attempting to resolve a set of lower order questions. Since this is in many ways a unique time in our industry, and we are all to some extent groping around for answers, it’s perhaps unsurprising but it feels a little like coffee growers deciding to resolve fundamental shifts in their commodity market by discussing the qualities of a new variety of coffee bean. Consider, for example, the key and very real concern of many around in the industry that a fragmenting market will contain sub-scale networks. The response however has been to consider industry standards, which doesn’t make the fragmented market go away, it simply means all the grains of rice will look the same but they still won’t be able to pick them up.

While it’s not possible to predict how much the market will fragment, we have to accept it will – already is – to some extent. And, in turn, this means it may not be possible for service providers to go to a single network operator for first-mile access to all customers wherever they are. A belief that this process may not accelerate is not preparing for the future properly, and the economy, shareholders and customers won’t be best served.

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My fibre tax manifesto


It seems the Queen’s Speech ushered in the  build-up to the general election, so its open season for manifestos. I blogged previously on the two main parties very different approaches to the UK’s broadband woes, and plan to leave it here for now at least. But one area which wasn’t covered by either speech at the NextGen09 conference was any detailed proposals surrounding business rates on telecoms ducts – so I’m offering all parties my suggestion of what they could have said.

Today all telecoms ducts are rated as if they were offices by the Valuations Office Agency (VOA), essentially levying a per metre tax on network operators which will eventually be passed on to customers in the form of higher costs. BT is alone in that it is sufficiently large to be able to negotiate a discount on its rates – a discount which many other operators feel is at the very least unfair and possibly constitutes an illegal state aid (court ruling pending). Aiden Paul, CEO of Vtesse, told the BIS Select Committee hearing on Digital Britain that the discount amounted to around £190m annually. So any proposal for rates reform needs to lay this issue to bed.

Secondly, the tax means that rural areas pay more per customer than their urban counter parts – homes and businesses are farther apart so a per metre tax will generate more income for the Government. Since the focus of any broadband policy will need to consider the “final third” – the mostly rural homes and businesses that are deemed uneconomic by traditional network operators – any reform will need to consider if the rates rules are contributing to the digital divide between urban and rural areas.

In the work CBN carried out with Samknows for Commission for Rural Communities (CRC) report “Mind the Gap”, I produced a map of the Ofcom Market classifications – the model Ofcom uses to measure infrastructure competition. The map clearly demonstrated the industry has no appetite for England’s leafy lanes, preferring to focus on urban areas. So the reform needs to at least understand this division.

Ofcom Market Classifications

Ofcom Market Classifications

The easy answer is to simply scrap the rates rules on telecoms ducts but in this economic climate that is unlikely to be smiled upon by a Chancellor of any political persuasion in the coming years.So the final constraint is that the reform should cost nothing or very close to it.

So my suggestion:

  • Offer 100% rates discount to any network operator that invests in Ofcom Market 1 areas – those areas where deregulation of broadband is yet to arrive.
  • Since this may be considered a form of state aid, the discount should only apply to open wholesale networks in accordance with European rulings, which means duct and dark fibre should be made easily available.
  • Where a network is mutually owned by a community as a social enterprise, and they have demonstrated reasonable attempts to offer open wholesale services but the market failed to respond, they should also be  afforded the same discount as recognition of market failure, even if that means they are essentially a localised vertically integrated operator. This could be based on the existing charity and social enterprise rules.

Since no-one is investing in rural areas, this reform will not cost anything but it will remove a barrier to investment. While there is no suggestion that the floodgates will open and every farmhouse will have a Gigabit connection by next Christmas, it is, I hope, a reasonable measure that attempts to rebalance a broken marketplace.

NGA Net-neutrality


The debate in the US surrounding net neutrality is fierce but for some reason it hasn’t really taken off as a dinner party debating subject on this side of the pond. With questions around our precious human rights, it seems odd we haven’t linked the way our access to the internet is controlled to freedom of speech and fundamental liberties as they have in the US; equally we are quick to complain about over charging and under delivery of almost anything but the British only (rightly) complain really about failed speed promises and notspots.

Next generation applications will of course mean we need more bandwidth, and in order to take a full and active role in modern society that bandwidth will need to be delivered widely and in many different forms. But bandwidth is not the only crucial measure of network performance that will be important – latency and jitter will also be critical, but so will the right to use the applications we choose as they begin to touch more and more of our everyday lives.

When I spoke at the NextGen09 conference yesterday I opened by reflecting on the different approaches taken by network strategists in the enterprise and telecoms worlds. An enterprise network architect always starts with a real world user requirement and as they develop that into a technical design they have to keep returning to that original requirement to make sure the user has the optimum experience. In the corporate world deep packet inspection and traffic shaping are seen as positive tools to ensure the optimum business experience.

In contrast, telecoms networks seem to be rarely designed by people who have to report to the users, and as a result deep packet inspection and traffic shaping are tools used to minimise the nuisance of pesky “revenue generating units”. Net neutrality is born out of a broken respect for customers.

Today net neutrality debate is centred on a simple argument – your chosen ISP monopolises your connection to the internet, and if they decide to control your legitimate use then you have a problem. Since most ISP’s behave in a broadly similar fashion, there is little you can do about it – migrating to another provider may improve things in one area but you’ll probably find something not performing as you’d like somewhere else. The original Samknows report into broadband performance, which led to the Ofcom performance report, highlighted many of the tricks the different UK ISP’s employ to limit the damaging effect of customers; traffic shaping so only web and email work properly, blocking or choking certain applications like the BBC’s iPlayer, etc.

But if you outlaw deep packet inspection and traffic shaping you may also be banning the tools which could optimise gaming experiences or ensure your healthcare applications don’t stop working because your kids start watching the iplayer in another room – throwing bandwidth at it won’t make this go away. A little over a decade ago Dave Isenberg wrote his seminal paper “Rise of the Stupid Network” as an antidote to overly complex carrier core networks which still prevail. At the time I didn’t quite agree with him, and I still don’t, but I was much more in favour of his than that of the opposition so have always kept my concerns largely to myself. My own feeling was that we should have respectfully dumb carrier core networks the just do what they’re told by intelligent edge networks under the control of users and their applications – but since we both feel that they core should be pretty dumb it didn’t seem worth raising a criticism to what was a brilliant piece of thinking.

So before we decide the express our distaste at today’s net neutrality injustice perhaps we really out to be doing something more constructive. We are finally making some progress towards next generation broadband in the UK – so how about making sure that the negative impacts of net neutrality are minimised, and some of the positive aspects are developed.

A few weeks ago I attended the NICC’s Ethernet Working Group’s meeting – this is the body formalising the Active Line Access standard which become our main Layer 2 access method for next generation networks, replacing the likes of PPPoA and L2TP that existing broadband systems use; this is a group of dedicated and brilliant network guru’s who meet to shape the way we use the internet. Essentially the next gen world will be composed of Ethernet virtual networks, and the large part of the debate at the meeting centred on how many VLAN’s should be made available to a single customer. Without going into the details of the debate, the proposal was that a minimum of four, and ideally at least 8, VLANs will need to be available for each and every customers.

Why is this important to net neutrality? Multiple VLAN’s means no customer will be forced to choose a single service provider who can monopolise their access to the IP world. While it isn’t a panacea, it paves the way for specialist content providers (health, gaming, video, etc) to take their own VLAN’s and use all the tricks used on enterprise networks to deliver an optimised customer experience; when you subscribe, you are knowingly buying into an optimised solution.

This just leaves the role of the “catch all” Internet service provider. The simplest answer would be to ensure vanilla internet transit, from customer to the server, is just that – plain and simple with nothing added. Implement a standardised set of qualities of service with clear descriptions which mean something to ordinary people but leave the allocation to customers and their applications. This doesn’t need to be complicated – a tick box in the Skype connection options so it tags packets with a suitable quality of service would work, as would a sensible default profile in customer routers which tags ftp and email as bulk traffic, clearing the fats lane for more sensitive applications.

Let move the debate on – and focus on how we want the next generation to work in everyone’s interest.

#NetNeutral

NextGen09 and the politics of broadband


It was interesting to hear quite contrasting speeches at the NextGen09 conference in Leeds this week from Ed Vaizey, Shadow Culture Minister, and Stephen Timms, the Treasury and Digital Britain Minister. Both are men who demonstrated an understanding of the issues and the urgency of finding a solution to the UK’s lack of investment in the future of broadband.

Perhaps the clearest difference between the two was surrounding funding and the role of the public bodies:

  • The current government approach, as laid out in the Digital Britain report, is to provide £200m of the Digital TV switch-over fund to ensuring a universal service commitment of 2Mbps, and then to apply a 50p levy on all fixed-line telephone contracts to raise up to £175m per year to fund next generation developments in what have become known as the “final third” – the areas of the country which the government and the mainstream industry deem commercially non-viable for broadband investments. These funds will be allocated by a new body – the Network Design and Procurement Group” which it was announced will now be formed in the new year rather than this Autumn as recommended in the Digital Britain report. So although we know how much money will be allocated to broadband, it will not be known until at least the new year how the money will be spent.
  • Ed Vaizey described a rather different approach should the Conservatives be elected next year. It is clear they don’t support the 50p tax but as we get ever closer to the election simply opposing government policy needs to be contrasted with the alternatives. Instead of a more top-down solution, Conservative plans centre on reforming local authority powers. In terms of broadband, central to this are plans to give councils more freedom to spend their income on local priorities, and to give them access to the bond markets so they can raise finance to invest locally. Where councils feel strongly enough that poor broadband is affecting their local economy, for example, a council could issue bonds and invest funds in a local fibre-optic broadband infrastructure.

It was interesting to consider what might have happened had Digital Britain taken this approach when the Bank of England announced the process of Quantitative Easing. Estimates for providing universal fibre-optic broadband vary but even the highest is in the order to £25-30bn – a small fraction of the total made available to the bond market by the Bank of England. Perhaps the UK would now be facing a new universal next generation broadband roll-out with massive new employment for everyone from civil engineers digging the road to photonics researchers. Sadly we will never find out; while the Conservatives support the idea of using bonds to raise finance for local infrastructure, they are less likely to support further QE should they be elected.

Without the new Network Design and Procurement Group in place, its impossible to contrast the two approaches sensibly, apart from saying that a Labour Government is taking a top-down centralist approach while a future Conservative Government would take a more market-led, local approach – hardly very surprising. If this new quango simply takes the money and hands it back to BT then it might have been more efficient to have simply told Ofcom to force BT to raise the cost of line rental by 50p and not introduce two public bodies to launder the proceeds. If, however, the funds are channelled to local projects then the differences between the two parties are more nuanced.

Its frustrating that despite the massive work that went into Digital Britain, we appear to have at least as clear a view of what a Conservative Government might do than of what the current Government has said it is doing.

Civic Trust leads to better broadband?


I was recently having an interesting but off-topic chat with a Professor of Geography at the end of a meeting on rural broadband. His interest was in the levels of civic trust and how it varies across Europe. The Professor described a league table of trust levels among the population and their relationship with the government. What immediately struck me was this table was almost identical to the league table of fibre deployments within the EU – with the UK well down the list.

In searching for a possible link, the train of thinking went along the lines of:

  • High trust levels typically require high-levels of engagement and communication, and that is most effective at community level.
  • As a result local decisions are more likely to reflect local priorities (economic and social), and that has typically required a sharper focus on broadband both as a priority of a people undergoing economic and social change and of the state who wishes to ensure communication levels remain high.
  • This in turn leads to a very flexible and dynamic infrastructure model, more able to adapt to regional trends.

So by contrast, the implication is that lower levels of civic trust are more likely to create lower levels of infrastructure investment, which is also more lilkely to be inflexible. While some cultures, notably South Korea, have successfully deployed a national broadband programme from the centre, this approach hasn’t been successful in Western cultures.

The European markets where high-levels of broadband investment have been realised are where local municipalities had more freedom from central government to take decisions that their communities asked of them. The higher levels of civic trust meant that the mayors and political leaders had the confidence of the the people, and were in touch with the local needs and aspirations.

With the flexibility to adapt at local levels to economic micro-climates, investments in major infrastructures were more likely to be effective and better supported.

At the end of this conversation, the feeling was that, as the economic drivers of European societies adjust to the current climate, lower levels of civic trust may lead to a slower and less agile economy.

So is this an argument, that if the UK is to improve its economic flexibility and invest in broadband, it needs to make progress in decentralising government?



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