BT says that its fibre rollout will be completed by 2012
BT and Virgin Media clash over broadband rollouts
/v3-uk/news/1944128/bt-virgin-media-clash-broadband-rollouts
27 Nov 2009, Dan Worth , V3
BT has defended its decision to spend £1.5bn on fibre rollouts for next-generation broadband networks in areas already covered by Virgin Media.
Tim O'Sullivan, director of public affairs at BT, said he found it " surprising that anyone would suggest that spending £1.5bn on new fibre in the current climate was 'disappointing'".
O'Sullivan was responding to comments from the floor at yesterday's Future of Broadband in the UK eForum event, which described BT's proposed rollout as " defensive" and "disappointing" by trying to compete with Virgin Media's existing infrastructure.
"We are working to ensure that the UK is in a position of strength in the world of high-speed broadband with this commitment to financing the installation of next-generation access to broadband," said O'Sullivan.
Jon James, executive director of broadband at Virgin Media, countered this statement, saying that the people who should be disappointed with the proposed investment are BT's shareholders.
"We already offer high-speed broadband in the areas BT is proposing to move into, and have the capability to introduce speeds in excess of 50Mbit/s for the future as well," James said.
BT is planning to roll out the new fibre to 40 per cent of the population by 2012, around 10 million homes, and to achieve 75 per cent of this target by the spring of 2011.
However, O'Sullivan did admit that there is currently "no commercial case beyond 40 per cent", as the cost of rolling out fibre-to-the-home (FTTH) or fibre-to-the-cabinet (FTTC) rises steeply once levels of 60 or 70 per cent are considered.
Matt Yardley, a partner at research firm Analysys Mason, also talking at the event, underlined these concerns by outlining the cost implications for a nationwide rollout.
"Installing FTTH for two-thirds of the population would cost around £10bn, but to reach the final third it could rise to around £28bn. Similarly, for FTTC it would rise from £2bn at 40 per cent to £5bn for a nationwide rollout," he said.
© Incisive Media Investments Limited 2010, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Do you agree?
disgraceful to replicate...
If Virgin are already providing access then it is disgraceful for BT to replicate when so many areas are underserved, and there are so many who can't even get basic connectivity. BT should do the job they are charged with, which is providing a broadband connection to everyone. They should roll out their fibre somewhere else and help more people. I really think someone should make them do this, as broadband is a utility, and many people in Lancs are still on dial up. Despite being connected to a DSL enabled exchange, they can't get broadband. Bringing fibre into rural areas may not be as profitable, but at least they would have the satisfaction of doing a job well. I can't see the point in replication. At all.
Posted by cyberdoyle, 28 Nov 2009
equality
very hypocritical of virgin to criticize BT for duplicating services, when virgin do exactly the same to British Airways. Why don't Virgin allow BT to compete over their "digital routes", are they afraid of competition.
Posted by stuart gorham, 08 Feb 2010
WHY
some people already in cabled areas where bt are going dont have virgin in place due to the face ntl were lazy and could not be bothered to finish the job off i know bt and virgin are not the best at some point but at least bt are willing to do the job and finish not like virgin who will not put there money where there mouth is and complete the work ntl could never do!
Posted by steven jenkins, 20 Feb 2010