BDUK Framework update


Since I wrote about the impending BDUK procurement framework, there seems to have been a little movement which I think it right to acknowledge.

I wrote that a source told me that the framework would require revenues of at least £40m in each of the last two years – in the “final draft” I understand is due for publication tomorrow (Thursday 30th June) this has been reduced to £20m, and it includes the following paragraph:

“In line with the Coalition Government’s policy on supplier diversity, DCMS is designing the framework agreement to maximise opportunities for Small and Medium Enterprises (SMEs) to form part of framework suppliers’ supply chains for projects where appropriate”

Does that mean SME’s and the bulk of the industry currently building and operating networks will be able to join? Almost certainly not!

There is just a four week window proposed in which companies can form partnerships and consortia, leaving the smaller, specialist companies that are already busy building networks very little time to negotiate the terms any sub-contracting agreement – most probably with a much larger company that has far less experience of building networks than they do.

In theory, excluded companies could club together to form a consortium of fantastic expertise BUT if the consortium isn’t formally incorporated then each member has to demonstrate the same requirements as if they has applied individually. Which in addition to requiring at least £20m in revenues, I understand may also require that you have delivered services to at least 30,000 premises excluding back-haul (so that’s major names like Geo and Vtesse probably disqualified).

So unless something radical happens in the next 24 hours, assume that the Government won’t be supporting the nascent NGA industry:

“The framework agreement is expected to be the procurement vehicle for the majority of local broadband projects once they have been allocated BDUK funding. There may be a small number oflocal broadband projects that do not use the framework agreement and this will be agreed with BDUK.”

It would seem that the best we can hope is that the contracts BDUK let won’t simply roll over the much more creative, ambitious and forward thinking projects that are already under-way from the bulk of the industry this process appears to be excluding.

Yesterday I wrote about the hopes and ambitions of Chipping Norton in David Cameron’s constituency. This framework may well turn out to be a significant threat to actions like theirs. The gap between policy and action is now becoming a chasm.

(I’ll let others tell you how “superfast” appears to redefined, making it easier to achieve)

Let’s hope the next coming hours see a serious re-think!

NGA closer to home


Over the past six months or so I’ve been sitting on Oxfordshire’s Broadband Working Group considering how we might make the best of our broadband landscape. Oxfordshire is the most rural county in the South East, making it challenging for broadband, yet it also generates many more high-technology start-ups than most – not an easy balance to achieve, especially when you realise that, unlike Cambridge with its science parks, many of these small business that will lead the UK out of our economic woes are as likely to appear in converted barns in Cotswold villages as they are in the  dreaming spires.

The process, similar to many up and down the country, has taken the County Council into new territory and has required much scratching of heads, but it now feels like the group is close to a strategy which is ambitious both for the public sector and our economy,  making the most of the county’s resources; not the least of which is smart people. Hopefully the draft strategy will soon be published and you can judge for yourself but at the moment I’d have to say that if the council leadership approve the last draft I saw then they will be one of the council’s to watch.

While this was going on at a county level, communities were beginning to come together to work out what they wanted to do – when broadband was being deployed the first time around the county spawned more than its fair share of broadband programmes and networks. Blewbury, a village with long standing broadband problems, was one of the first to put its head above the parapet this time, winning the “Race to Infinity “, shortly followed by Chipping Norton and its hinterland.

At Oxfordshire’s recent Digital Summit, the County Council’s Deputy Leader David Robertson gave his support to projects that build on the government’s ‘’ ideals, and the Chipping Norton ambition certainly embodies that. “Chippy” has looked at its options and decided, for economic and social reasons, that while FttC  may fix the town’s problems for the time being, it won’t help many of the villages that rely on the town, and that ploughing ahead on its own would make a marginal business case for investing in the surrounding area impossible.

Take the small village of Chadlington in the Wychwood Forest and just outside Chippy – it has its own small telephone exchange but all the homes and businesses (including the Prime Minister’s) are connected straight to the exchange – there are no cabinets in Chadlington so FttC is not really an option. And rather than condemn villages like Chadlington to a broadband wilderness, the group is looking to install optic network all the way to every home and business across the entire hinterland.

The group are also being both innovative and realistic when it comes to investment. This is a major project in a hard to reach area, and any funding from BDUK is like to amount to no more than perhaps 5% of the sum needed. They recognise that a venture such as this needs all the stakeholders to help in anyway they can, not just the telecoms industry and the public sector, but also local people and businesses. So the group is looking at how their plans for  a wholesale open access network can be owned and financed in part by the local community.

The group has already attracted financial support from the INCA’s Big Society Broadband Fund to carry out the initial feasibility study – some of their findings will soon appear in the Knowledgebase. They are now looking to gain wider public support and, in partnership with the City, raise community investment for the project.

Led by an old friend of mine who lives in the town, Neil Homer is a social entrepreneur with an urban and rural planning strategy background, the contributors to the project draw on the wide range of sage expertise you find in villages in this part of the world, including my old colleagues from Oxfordshire Rural Broadband  who delivered the first generation of broadband to west Oxfordshire (the group cut his broadband teeth on when he was an MP-in-waiting).

This is the big society writ large, and very different from the pioneering projects in Alston and Wray – this isn’t a community that would find it easy to dig trenches but they bring a whole lot of other things to the party which make next generation broadband possible.

With a County Council preparing what I hope will be an ambitious strategy for the county and the likes of Chipping Norton taking a lead, it feels like Oxfordshire may be something of a waking broadband giant. Fingers crossed!

Transition Chipping Norton is hosting a public meeting on 6th July at 7:30 in the Town Hall to explain to the communities in and around the town just how they can benefit and how they can get involved.

Localism, innovation – and national frameworks?


I think it was Cisco’s John Chambers that once said that big companies can’t innovate, as he refocussed a large part of their R&D budget to nurturing and developing partnerships with small companies that could. Today we are seeing a similar trend in the pharmaceutical industry, where large internal research labs are being replaced by smaller external research companies.

And it is smaller, more nimble companies that are developing innovative business approaches, technologies, and service delivery models in broadband; not just in the UK but across Europe. Heavy Reading predicted that around 60% of European connections would be delivered by non-incumbents, with the largest sector being local municipal networks led by smart, small-scale innovators.

While the pattern in the UK is a little different, we too are seeing innovation growing just as it has across the continent, but these companies need space and support to develop in order that their impact can be felt, their promise can be assessed, and for the main industry players to construct partnerships or acquire the best of them. So with this in mind, the Government’s policies for supporting SMEs in public procurement exercises and the wider agenda are both smart and well timed if the UK is to genuinely deliver “Europe’s best superfast broadband market by 2015″.

Few sensible people would argue with the policy – but there appears to be growing concern over the implementation.

The announcement of BDUK’s intention to procure a national framework seems to have simultaneously divided the industry and undermined the Government’s policy objective. Having spoken to industry players that say they’ve seen drafts of the procurement plan, they tell me that it will require revenues of at least £40m generated in at least the last two consecutive years, excluding not just SME’s but many of the established players in the industry as well.

Nobody doubts that delivering such an ambitious plan will be very hard, but side-lining the most nimble, innovative players won’t make it any easier.

Let’s hope the rumours and grumblings are ill-founded!

Mixed Ambitions


Or why this isn’t an IT project.

Last year, when announced the BDUK competitions, I commented at the time that it felt like ambition was back on the agenda.

A year on, is really beginning to play out – or perhaps more accurately, a developing understanding of what it might mean is beginning to grow  as local authorities construct their broadband strategies. This process has created a space for communities, the public sector and the telecoms industry to have a dialogue.

As with any organic and new process, progress is far from uniform – in some places communities are developing a stronger voice; in other the local authority is taking a stronger lead; and some parts of the industry have been more receptive than others. In some areas progress has been rapid, and in others painfully slow.

If there is a criticism of the new localism agenda, it is this.

Local authorities have spent more than a decade increasingly micro-managed. There has been little reason to consider risks in their corporate strategy as they were largely told by how and what to prioritise. There has been little reason to open a dialogue with local communities because there was little scope to adapt to their needs.

Localism has put this process sharply in reverse – local authorities now need to consider their appetite for risk and to match it with their communities ambitions and needs – yet these skills no longer come easily to many councils. This isn’t a criticism of councillors or council officials – its simply a reality.

In fact, to their credit, many councils have risen to the challenge – at times it may be faltering but nevertheless localism is happening and I suspect it feels rather liberating.

But in some areas it has proved harder – the tools with which to form a dialogue with communities have been harder to muster, and the risk associated with taking risks has been too difficult to contemplate.

A common theme among these areas is that they typically draft in the IT department to lead their bid, assuming that developing a broadband strategy is a technology process which can be developed from the centre and in isolation using their specialists. Its not!

  • Broadband plans are about the local economy and competitiveness,
  • Broadband plans are about how local services are delivered,
  • Broadband plans are about people and businesses.

Local authorities who hand their broadband strategy over to their IT department will ultimately be as disappointed as if they had handed teaching or social work over to them.

IT is an enabler that helps to solve real world issues; broadband is just a tool they might use that cuts across every possible policy area. The strategic basis of a broadband plan must be in the hands of people who deal with those real world issues.

Look to . Ed is a multi-faceted person but he’s not a technologist, he doesn’t surround himself with geeks, and yet he fully understands the impact a good broadband strategy will have on the creative industries and media, rural areas and the wider economy.

has seen the benefits of localism and the impact broadband could have on his rural constituency without resulting to a discussion on bits, bytes and symmetry.

The certain disappointment of not following their lead may be hard, expensive and slow to rectify as well.

If neighbouring areas solve this problem better then rate-paying businesses will begin to migrate, making the rural areas a place to retire to rather than grow a business.

If businesses migrate, younger people will migrate to find the work.

And an area with relatively poor infrastructure means even elderly people will slowly migrate as the services which would keep them in touch with their families and allow them to stay in their homes longer won’t be there.

The risk associated with avoiding risks is much higher than developing a measured appetite that allows local ambitions to be met.

Being ambitious for your locality is the less risky path to tread.

An observation on British broadband #2


One of my long-term predictions has been that Internet Service Providers will ultimately disappear as we know them today.

They were a necessary middle-man when we were trying coax our voice-grade network into the internet-era; dial-up internet evolved from banks of modems providing access to bulletin boards and mail hosts to an interconnected inter-net.

Now we are moving towards a network purpose designed for data that treats voice as just another service, there is something of an assumption that ISPs as we have come to know them will remain an important part of the supply chain – the necessary link between retail customers and the telecommunications core.

We can see that evidenced in the EU’s assumption that open access networks will provide multiple layers of competition, and the initial focus of Ofcom’s work began with a replacement for level 2 services which form the basis of today’s ISP services (in fact it doesn’t feel like they’ve moved much beyond level 2 access).

But its worth remembering what happened in the UK when the regulator mandated access to the first-mile copper network, the so called local loop; ISPs rushed to compete at an infrastructure level, not on a virtualised network but using  real networks. It suggests the industries preferred competitive battle-ground and the regulators may not be exactly the same.

In the days of dial-up modems, your ISP provided transit from their network to the internet, your email address and web-space. Today, most people prefer Gmail and consider Facebook their web hosts, leaving ISP’s as little more than resellers of internet transit. No wonder they seeks areas to differentiate!

Returning to today’s next generation transition, there has been a clear reluctance among ISPs to engage and commit to next generation developments. While much of the debate has been on the cost and complexity of creating new software interfaces to manage layer 2 Active Line Access (ALA – what BT calls GEA) services, lying behind this , I suspect, is a deeper preference to find a realistic substitute for local loop unbundling, where ISPs can retain their ability to compete using physical and not virtual networks.

If this is true, then perhaps it should not have been a surprise that the first formal, unequivocal request from a service provider to next generation network builders was for physical network access – Virgin’s offer to use a wavelength to extend their coverage to new areas where a full -to-the-premises network exists.

Physical network control provides greater scope to form the service layer in your own image – to differentiate the customer experience, matching it your brand and aims.

While the arguments from the rest of the service provider  for not joining the next generation party have focussed on the complexity of software system interconnection, this is really a facet of the cost and complexity of administering virtual networks – physical network interconnection is typically a much simpler process with fewer variables.

So was the work on ALA a waste?

Absolutely and unequivocally no!

A smart and flexible layer 2 framework is what will release the – the operators. While service providers appear to want to move down the network stack, their place will be filled by application and content providers. The capabilities of a smart will unleash the creativity of social media companies, application developers and the content delivery companies.

ALA should be promoted to Sony and Google as much, if more than, to TalkTalk and Plusnet.

Am I bothered that some next generation networks appear vertically integrated? If their intentions are monopolistic, then very much so. If however, they are creating a platform for services and using ALA to actively encourage new service delivery models, then I’m less concerned – in many ways I suspect they will become the pioneers of a new internet era.

So what is the impact of all this?

If internet service provision does move further towards physical network provisioning, then we need to understand one key message: Who ever lights the service owns the customers and controls their access to the digital world. This is the true root of the debate.

While it is true that whoever builds the passive cabling has a natural geographical monopoly, whoever lights the service has a natural monopoly over people and businesses. That is one of the key strengths of ALA – it breaks the chains, putting control over the digital experience in the hands of customers and the services they value.

In this regard, it perhaps matters less about having a choice over who lights the service but much more important about how they light it. Getting this right will move the internet message away from bits and bytes and towards stuff that matters to us – the services we value.

So for Ofcom, two messages should be very clear:

  1. More progress needs to be made on passive infrastructure access. Its not just about ducts and polls but a passive version of ALA – a consistent framework that allows today’s ISPs to unbundle cables and reinforce their apparent desire to deliver real networks, not virtual.
  2. ALA is a brilliant mechanism but only if its purpose and opportunities are made clear. Whoever lights the cables, should be using ALA, and a new level of service competition should be created where multiple content providers are able to take advantage of the intelligence built into ALA. Ofcom needs to put its long arms around the totality of its remit, and not treat broadband and different in some way to TV or content.

If we can get this right, the UK could become the first country to break the chains of the net neutrality debate and in the process create an exciting platform for the next wave of creative industries and social media. And we will have put to bed one of the key reasons the major ISPs aren’t fully engaging with this future.

What’s super about the injunction?


Fast becoming the national centre for new media, Manchester stands to gain the most from the move by companies like Twitter to the UK. Yet it is allegedly a Mancunian footballer that is doing his damnedest to make the UK the last place on earth you’d think of locating a social media company.

The sad irony of the super-injunction fiasco is that if Twitter decide not to move to the UK because of a Mancunian footballer’s alleged immaturity to face up to his own actions, it may be the Mancunian economy that pays the price in the longer term.

Enough said.

An observation on British broadband #1


Some key announcements have been made in the last couple of weeks or so and its worth considering what they may mean for broadband in the UK – I don’t know why it took me so long but the conclusion is quite startling!

Firstly, we are seeing a host of new models and investment announcements which are making the final third – the most rural parts of the UK – a viable and exciting place to invest in -optic broadband – providing you have the logistics and business model sorted. Fujitsu, Rutland Telecom, NextGenUs and Jendens – jointly and severally – all making headway in their own distinctive way.

Secondly, BT has announced it expects to be lifting VDSL speeds using existing phone lines under its Infinity investment from “up to 40 Mbps” to northwards of “up to 80 Mbps” in the relatively short term. In their word – VDSL is a technology in its infancy and they expect to see considerable improvements as it matures. The combination of Fibre to the Cabinet (FttC) and VDSL is an architecture which really works best in more urban areas with diminishing returns as it tends towards more rural areas.

So the natural conclusion of these two shifts is that rural areas should become the place where fibre all the way to the doorstep dominates first – and urban areas will remain on copper for much longer but with services that keep in touch with their lucky bucolic friends.

Not something I expected to say out loud!

An observation on Ireland


At a conference this week I saw a slide which provided a league table of countries according to some measure of broadband, and it showed Ireland as being some places ahead of the UK – albeit with both languishing in the lower ranks. Mmmm I thought – doesn’t really tally with my by experiences. When over in Dublin recently I managed to upset over a comment I made on Twitter – thankfully no super injunction in place so it went no further!

Eircom’s current adverts promote “next generation broadband” but when you look at the detail its “up to 8 Mbps” – Ireland’s next generation broadband is the same speed as the UK has had for quite a few years on the surface of it (except its a lot more expensive!). So how do Eircom justify the monika “next generation”?

Eircom have invested in their core network and to overcome congestion they’ve added traffic shaping and quality of service techniques – this is their “next generation”.

This got me thinking about how different people in different places and cultures view things. In Ireland Eircom is presenting a heavily shaped network as a bonus – as next generation – yet the same action in America would have called people onto the streets waving placards decrying the end of and the imposition on their human rights.

I’ve not seen what regime they’ve employed to reduce congestion – given its a finite pipe, if something is protected, something else must be squeezed so somebodies traffic isn’t as good as it once was. Whether this matters, technically, is unclear – its perfectly possible to demote email and ftp traffic, where response times are measured in minutes, to provide a better browsing and real-time experience, where response times are measured in milliseconds. But if they’ve unilaterally demoted Skype and VoIP to protect voice revenues then its bad – very bad – or demoted P2P simply because they’ve made the sweeping assumption that all peer-to-peer traffic is illegal music downloading then its stupid and bad.

Whether this matters ethically is a different matter. That Americans come onto the streets and the British grumble into their cornflakes (in our own reserved way that’s quit a statement!) suggests that at a minimum its deeply questionable. Moves towards transparency in the UK would mean that Eircom would at least have to make it clear were they delivering services in Britain – a move in the right direction at least – and perhaps Eircom should consider putting a clear statement on their adverts and website about the precise nature of their shaping – what works well and what is being degraded.

The motive behind Eircom’s move is the lack of investment they’ve been able to make in recent years – Eircom’s really is a sad case study in a privatisation process gone wrong. Hopefully things will begin to improve as they restructure under new ownership but there is a question about whether its too late – the effort they will need to put in to catch-up will be immense.

During my trip I also saw lots of white vans working behalf of UPC, the main operator in Ireland. They were everywhere, ripping out old, low-grade coax and installing what looked to me to be some of the highest gauge coax I’ve ever seen being installed for domestic TV. After many years of mediocre  services, Ireland is starting to see an investment which should put that behind them. Coax of that gauge means UPC appear to be taking few chances that any customer will experience anything other than the advertised broadband speed and over time I’d expect that to rise northwards of 100 Mbps – only a to the home (not cabinet or curb) infrastructure could compete (if Eircom were investing).

The implications of these two snapshots is intriguing. Could we soon see an incumbent telephone company relegated to the position of lowest-common denominator, catch-all service while the cable operator snaffles the premium top-spot? For UPC that can be nothing but good – lots of high-revenue, low cost customers in leafy Dublin 4 and beyond.

For Eircom that should be the warning they need – if the story is allowed to play out to its natural conclusion, they will be left with the high-cost, low revenue customers in the rural west of Ireland – the farms isolated at the far end of a grass-topped boreen. The loss of net neutrality isn’t a substitute for investment in the access network.

The (broadband) world is changing


I’ve just finished a week of very different conferences and workshops which have led me to a what feels like an exciting conclusion – the broadband world in recent weeks has shifted.

My evidence? On Friday CPEND, a partnership in rural North Dorset, hosted an event to report the findings of their broadband study. There have been many similar events over the years, looking into the nature and possible solutions to rural broadband problems. But this was very different.

The event hosted in Blandford Forum’s community hall was well attended by local people, parish and district politicians, with local MP Bob Walter putting his full support behind the work – very good to see but not something that shakes the world. However, attending in equal number were senior industry figures – people who make the decisions about where, when and how to invest in broadband.

This has been building since the autumn when hosted his blockbuster event in Cumbria, but the Blandford event wasn’t promoted as a  major headline grabbing affair – it was an event organized by a local group that had done some deep research and difficult thinking – not the sort of thing a year ago would have attracted key industry names like Alcatel-Lucent, Ericsson and Geo.

All three events this week – Jenden’s investment workshop, NextGen roadshow, and the CPEND event – showed how the three essential stakeholders (industry, public sector and community) have now found the langage and the common ground on which to engage with each other in a way I’ve not seen before – a constructive dialogue has begun, exploring how all three can work together in a common cause.

Almost entirely absent from these events were the unreasonable, one-sided demands from communities expecting someone to fix the problem for them, or the rather superior pronouncement from industry dismissing any solution other the one they had in mind, or the rather dull and unambitious public sector statements.

The last few years, since first generation broadband became established and mainstream, have been something of a roller-coaster ride but at the moment I’d have to say I’m more optimistic that we’ll solve this – together – than at any time.

Why Sony needs the British


Sony’s well reported problems with the PlayStation Network are costing the company dear – but there is a solution to hand!

When the UK approached next generation broadband it could never have been accused of rushing at it – we’ve taken our time, analysed every possibility and then thought about it a bit more. Something that has frustrated just about everyone but it sometimes feels like we’re just built that way.

The up-side of this is that we will be deploying one of the best thought out networks anywhere in the world, and one of the things that sets us aside is ALA – Active Line Access – the method of connecting service providers with customers.

How does this help Sony?

Today the Playstation Network is a network of people – at a technology layer its just a bunch of servers open to the public internet no different to any website. In an ALA world, the PSN could become a real network – a private tunnel between Sony’s servers in Sony’s data-centres and gamers across the UK.

  • It would no longer be open to the public internet so less hackable
  • It could be quality assured – latency and jitter controlled – making game play seamless and trouble-free while solving any worries
  • DRM type issues would be privately managed without getting in the way of customers enjoyment.

In an ALA world, Internet Service Providers are arguably the least interesting of a range of possible parallel service providers – providers of health, education, media and gaming – in fact, the only limit is our .

So Sony could do a lot worse than talk to British network strategists – we may be little slower to act than some but we’re very good!

By the way – the same advice is offered to Google, Spotify, Last.fm, Skype, Amazon and its , Xbox Live, . . . . .



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