BTwatch
This release
: #304
April 2019: 62pp
Releases/year: 10+
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EXECUTIVE BRIEF

GROUP

Innovation: BT trumpets opening of quantum network link for tests [p.6]

  • Key partnerships for quantum leap
  • Staying ahead of the bad guys

BT working with IIIT-D in India to develop optical networks and quantum security solutions [p.8]

Nework: BT banks on Nokia's silicon to boost backbone capacity [p.9]

  • McRae sings Nokia's praises -- and of BT's developmental role
  • McRae's enthusiasm for fellow travellers

BT improves national network's timing in preparation for 5G [p.12]

  • More ADVA-wins in BT projects

Competitors: BT plans to move resources closer to cloud's edge and customers [p.15]

  • Edge technology to foster new markets
  • Experimenting at the edge
  • Where's the money in edge and 5G?

Transformation plans: Transformation plans heat up under Prospect resistance [p.18]

  • …as CWU reaches deal on BTFS outsourcing plan
  • And finally, some good news for BT staff

Jansen prepares to kick-off in public [p.22]

Corporate responsibility: More BT Italia allegations trickle through [p.20]

  • Reuters links post-fallout management to Italian woes

People [p.23]

  • Table: People movement highlights

CONSUMER

BT Sport: BT Sport to produce Amazon's Premier League content [p.26]

BBC wins new FA deal; no word on BT Sport yet [p.27]

  • BT Sport expected to pay for women's football in future

ESN: ESN said to offer in-building gains over Airwave [p.29]

Expanding vendor ecosystem

  • PAC keeps seeking accountability for “failure” as audit looms

Advertising: CityFibre loses 'fake fibre' judicial review [p.32]

Networks: Allera fights back on rural roaming coverage [p.33]

Channel: Reports claim EE approved new Dixons Carphone terms [p.34]

Suppliers: BT upgrades performance management across contact centres [p.35]

ENTERPRISE

Management Update: Enterprise sets out to prove its worth [p.37]

  • McQuade a steady hand at the helm
  • Sims' six priorities

Strategy: Enterprise key numbers [p.39]

  • Table

Enterprise partners highlighted, Cisco to the fore [p.39]

  • Maltarp on slimming down and building meaningful relationships
  • Declining voice the main headwind…
  • ... IP voice a key element of recovery
  • Is SD-WAN a trap, or a gold mine?
  • Public sector comeback

Ireland: Offloading BT Ireland on BT horizon [p.43]

  • Ofcom launches probe into BT's conduct in NI PSSN tender

GLOBAL SERVICES

BT Security: QiO signs for BT security services [p.46]

Contracts: BT wins £5.1m NATO deal for support services [p.47]

Partners: Cloudreach and BT link for hybrid options [p.48]

OPENREACH

Fibre: Ofcom lays groundwork for fibre acceleration [p.50]

  • Giving altnets tools to fight, and Openreach freedom to race
  • Altnets told to toughen up

Regulation: Ofcom's fibre growth approach [p.52]

  • End-users may feel short-term pain

Competitors: Sky shopping around for fibre, as Openreach competition intensifies [p.54]

Fibre: Openreach FTTP rollout reaches 20,000 premises per week [p.55]

FURTHER READING

INDEX

A

ADTRAN 56

ADVA Optical Networking 6, 7, 11, 12, 13, 14, 57

 - Oscilloquartz 12, 13

Advertising Standards Authority 32, 58

Alphabet

 - Google 16, 19, 48

 - YouTube 27

Amazon 16, 26, 48, 58

 - Amazon Web Services 48

AnalogFolk 32

AstraZeneca 23

Atos 23

AT&T 53

Avaya, Inc. 37, 39, 40

B

Barclays 28, 58

Bigtincan 53

Blackstone 48

BlueSky 39

BoxNation 27

British Broadcasting Corporation (BBC) 27, 28, 58

Broadband Delivery UK (BDUK) 55

Broadband Forum 56

BroadSoft 37, 39, 40

BT Group 6, 9, 10, 13, 15, 16, 19, 20, 22, 32, 35, 38, 40, 43, 56, 58

 - BT Consumer 19, 23, 26, 32, 33, 35

  --  BT Mobile 23

  --  BT TV 26, 27

  --  Plusnet 32, 39, 58

 - BT Enterprise

  --  BT Business & Public Sector 14, 23, 37, 41

  --  BT Facilities Services 19, 57

  --  BT Ireland 38, 43, 44

  --  BT Local Business 39

  --  BT Northern Ireland 43

  --  BT Wholesale & Ventures 21, 37

  --  InLinkUK 44, 58

 - BT Global Services 8, 20, 24, 38, 40, 45, 46, 47, 48, 59

  --  BT Assure 46

  --  BT Germany 24

  --  BT Global Communications India 8

  --  BT Italia 20, 21

  --  BT Security 24, 40, 46, 59

 - BT Technology, Service and Operations

  --  Adastral Park 6, 8, 13

  --  Azure 16

  --  Innovation Martlesham 6, 8

 - EE 9, 10, 12, 23, 24, 29, 30, 31, 32, 33, 34, 35, 37, 39, 40, 41

  --  Emergency Services Network 29, 58

 - Executives

  --  Adams, Michelle 23

  --  Allera, Marc 33

  --  Barrett, Spencer 24

  --  Best, Steve 37, 42

  --  Cavill, Tim 24

  --  Chinni, Vinod 24

  --  Collis, Alasdair 23

  --  Cuevas, Maria 15

  --  Currer, Michael 23

  --  Daniels, Lisa 23

  --  Foster, Stephen 24

  --  Grimes, Georgia 24

  --  Guest, Richard 23

  --  Gupta, Ashish 24

  --  Hall, Stephen 23

  --  Hischer, Stefan 24

  --  Hum, Alex 23

  --  Jackson, Darren 23

  --  Kirkman, Matthew 55

  --  Lewin, Ryan 23

  --  Maltarp, Damien 37, 40

  --  McQuade, Gerry 37

  --  McRae, Neil 10, 13

  --  Morgan, Tristan 24

  --  Morgetroyd, Howard 23

  --  O Neill, Colm 37, 42

  --  Patel, Chet 24

  --  Pecorari, Maria Grazia 48

  --  Pedler, Stewart 23

  --  Pronk, Kees 24

  --  Raes, Stijn 24

  --  Reynolds, James 23

  --  Robinson, Nicola 23

  --  Sherman, Michael 32

  --  Sims, Chris 37, 39

  --  Sundaresan, Hari 14

  --  Sutherland, Graham 14

  --  Till, Simon 23

  --  Tomlinson, Mike 37

  --  Toombs, Samantha 23

  --  van Oers, Joris 24

  --  Vincent, Anthony 24

  --  Wain, Anthonie 24

  --  Wallage, Steve 23

  --  Watson, Howard 10

  --  Wightman, Bernadette 24

  --  Wigmore, Rachel 23

  --  Wilson, Peter 23

 - Ex-executives

  --  Patterson, Gavin 18

  --  Taylor, Max 24

 - Openreach 9, 13, 19, 22, 24, 43, 49, 50, 51, 52, 53, 54, 55, 56, 57, 59

C

Cambridge University 6, 13

CBRE Group 19

Cisco Systems, Inc. 11, 24, 37, 39, 40, 42

 - Meraki 40

CityFibre 32, 54

CK Hutchison

 - Three Group

  --  Three UK 33

Cloudreach 48, 59

Communications Workers Union 18, 19, 57

D

Dixons Carphone 34

E

eir 43, 58

Elecosoft 31

Emirates Airline 8, 27

Equinix 16

Ericsson 11

F

Facebook 32

Football Association 27, 28, 58

 - Football League 26

 - Premier League 26, 27, 58

G

Goldman Sachs 32

H

Halfords 23

HCL 23

High Court 32, 43, 58

Home Builders Federation 55

Home Office (UK) 29, 30, 31

House of Commons 31

 - Public Accounts Committee 31, 58

Huawei Technologies 10, 11

Hyperoptic 54

I

ID Quantique 6, 7

Independent Networks Cooperative Association (INCA) 55, 59

Indian Institute of Science 8

Intel 56

International Telecommunication Union 56

ISS 19

ITV 27, 58

K

Kingston Communications (KCOM) 14, 24

KPMG 24

L

Liberty Global 54

 - Virgin Media 14, 27, 53, 54, 59

M

Mavenir 13

Medallia 39

Mi Cloud 39, 40

Microsoft 16, 48

 - LinkedIn 21, 24

Motorola Solutions 30

 - Airwave 29, 31

N

National Audit Office 31

National Centre for Computing Education 19

NATO 47, 59

NFL 26

NICE 35, 58

Nokia 9, 10, 11, 56, 57

Northern Ireland Public Sector Shared Network 43

NTT 24

 - Dimension Data 24

O

Ofcom 14, 17, 22, 34, 43, 50, 51, 52, 54, 58, 59

Orange 16, 24

Orange Business Services 24

P

Pace Micro Technology 37

Phones4u 34

Q

QiO Technologies 46, 59

Quantum Communications Hub 6, 7

QuintessenceLabs 7, 57

R

Real Time Content 7

Renault 16

RingCentral 39, 40

Rolls-Royce plc 19

Royal KPN 24

S

Samsung 30

Sierra Wireless 30, 58

Sunset + Vine 26, 58

T

TalkTalk Telecom Group 53, 54, 59

 - FibreNation 53, 54

Tech Mahindra 7, 8

Technology

 - 5G 9, 11, 12, 13, 15, 16, 40, 44, 51, 57

 - Blockchain 17

 - Broadband 8, 9, 14, 23, 32, 40, 41, 51, 53, 54, 55, 56, 58, 59

 - Ethernet 9, 13, 14, 30, 44

 - Fibre 6, 9, 13, 22, 32, 40, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59

 - Fibre-to-the-cabinet (FTTC) 32, 55

 - Fibre-to-the-premises (FTTP) 9, 32, 50, 52, 53, 54, 55, 56, 57, 59

 - G.fast 54, 56, 59

 - G.mgfast 56

 - HD 27

 - ICT 8, 43, 44

 - Internet of Things 7, 16, 30, 46

 - IP 9, 10, 17, 37, 38, 39, 40, 41

 - LTE 29, 30

 - LTE-Advanced 30

 - PSTN 40

 - Quantum Key distribution 6, 7, 57

 - Unified Communications 40

 - Wi-Fi 30

Technology Strategy Board 46

Telefónica 24

 - O2 UK 33, 34

telent 30

ThoughtSpot 39

Transport for London

 - London Underground 30

Twitter 32

U

Ultimate Boxxer 27

University of Cambridge 6

V

Vodafone 24, 33, 34, 41, 43, 44

 - UK 24, 33, 34, 44

W

Walt Disney Company, The

 - ESPN 28

Westbase.io 30, 58

  • Ofcom is changing its approach to regulation to support an accelerated fibre rollout, creating an opportunity for Openreach to step on the gas.
  • Artificially-high superfast pricing is to be put in place for five years, to give altnets an opportunity for better margins as they grow.
  • Openreach will see considerable freedom on full-fibre pricing, and will be able to recoup investment costs across more services due to Ofcom’s new approach.
  • Openreach is expected to open up its infrastructure and dark fibre to give altnets the tools to compete more effectively.

Ofcom issued a consultation on its plans for future regulation of full and partial fibre services in the UK, featuring a two-tier proposal hoped to encourage broader and more intense fibre-to-the-premise (FTTP) deployment by Openreach, while also creating headroom for the UK’s fibre altnets to make an investment business case.

The proposed changes from Ofcom laid out in the Promoting Competition and Investment in Fibre Networks proposal document are due to come into effect from 2021, and apply for a five-year period (up from three years as part of efforts to offer longer-term certainty on pricing for the sector). Ofcom considers that the UK can be divided into two broad categories:

Areas where it considers that multiple competing fibre networks could be established. Approximately 70% of the population are based in potentially competitive areas.

Areas where it appears that only one credible network operator could be supported. Ofcom assumes that this is usually going to mean supporting Openreach. Within the final 30% there is a smaller subset, equating to around 5% of the population, that is likely to need deliberate state intervention to encourage investment.

Giving altnets tools to fight, and Openreach freedom to race

In setting out the regulated fibre investment plan, reference was made to Ofcom’s Physical Infrastructure Market Review, which is expected to lead to unrestricted access to Openreach ducts and poles being made available to altnets as a crucial element of creating an environment in which new entrants can expand in the market (BTwatch, #300).

In maintaining unrestricted duct and pole access, and planning for enforced access of Openreach dark fibre, the regulator appears to be giving altnets what it considers to be the tools they will need to compete with Openreach in providing next-generation services. Meanwhile Ofcom is also freeing up Openreach to invest and deploy fibre as it sees fit across most of the country, and making it easier for the BT business to make the level of return needed to bring full fibre to more remote or rural areas of the UK. At this stage of the consultation process it remains to be seen whether the proposed environment would provide a framework for a fair fight, but BTwatch suspects that BT will be happy with the plan. While not entirely giving the incumbent licence to accelerate FTTP by any means necessary, Ofcom certainly appears willing to risk the prospect of Openreach largely dominating in the provision of FTTP services in exchange for faster progress in reaching widespread full-fibre availability.

Altnets told to toughen up

Ofcom acknowledged that encouraging Openreach fibre investment could clash with altnet investment plans, and that there is a risk that the BT business will change its own rollout plans to counter the rollout plans of its emerging infrastructure rivals. While expressing some sympathy regarding this risk, the regulator noted that Openreach is producing a degree of mid-term visibility of its investment plans for fibre deployment.

The regulator also stated that Openreach deciding to respond and build in areas targeted by altnets would help create an environment where there are multiple networks offering competing services which helps support its goal of competition at infrastructure level. Ofcom further suggested that an assumption that a major rival such as Openreach could join the fray in their chosen markets should be factored in to any business plan adopted by an altnet.

The rest of this story, including the key changes the Ofcom proposals are currently expected to create in full, is available to subscribers in the April release of BTwatch.

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