And it came to pass….

More evidence has emerged recently to vindicate critics of the government’s broadband investment strategy. First and as widely predicted, BT looks set to achieve a clean sweep of the funds made available through the BDUK procurement process.  As the House of Lords anticipated in its 'alternative vision' Report:

“There are clear competitive advantages in the market for infrastructure provision which accrue to those able to draw on economies of scale and scope. If unchallenged, these may result in the dominance of a single provider”. 

However, it appears that BT’s dominance in this process has now been both accepted and enshrined. According to a report in ISP Review, the Director of a major media research firm has warned that any UK cities which win government backing to boost their superfast broadband availability must pick “safe bet” BT to do the job or risk being left with “networks based on technologies that failed to keep pace with the wider market or devoid of popular service providers “. 

The related fear expressed by the House of Lords was that government dependence on BT’s own investment strategy, in particular its choice of FTTC as the principal superfast technology, could restrict service competition.  Again, ISP Review has picked up on this issue and reports that the same fears are now being voiced more widely:

‘At present the dominant form of superfast broadband delivery on BT’s national UK telecoms network is FTTC, which at best only offers a somewhat restrictive form of virtual unbundling known as VULA. Sadly this doesn’t provide the same level of price, direct control or flexibility as copper LLU services, which is technically difficult to achieve on fibre’. 

ISP Review goes on to record that ‘the CEO of budget ISP TalkTalk, Dido Harding, has warned a Westminster panel session that the UK government should “start to worry” about the lack of competition in the new market for fibre optic based superfast broadband services…Harding added that she had no idea whether TalkTalk was paying a good price for superfast broadband from BT.

"I simply don't know, but there's also no alternative," she said. "Over time, as we consume more of it, I should know and so should Ofcom."

 
So far, full marks to BT!