Posts Tagged ‘Broadband’

Telecom staff strike may affect broadband maintenance

Thursday, June 3rd, 2010

Plans by workers at BT (British Telecom) to strike in protest at massive bonuses awarded to the company’s managers and over a two per cent pay rise offer could affect broadband maintenance and troubleshooting services, according to industry observers.

Thousands of BT staff who are members of the Communication Workers Union (CWU) are to be asked to support walk-outs in protest at the bonus awards and a two per cent pay increase offer to its members. If the staff vote in favour of a strike, maintenance of millions of broadband lines could be hit.

“There are definitely going to be potential issues with maintenance. It’s (the strike) definitely going to affect day-to-day maintenance and problem resolution, Edd Dawson, editor of broadband information and comparison website broadband.co.uk, said.

“If it turns into a prolonged strike then it could very well affect the roll out of the next-generation broadband.”

The CWU represents nearly 60,000 BT staff.

A union official said: “This is about fairness. We don’t mind senior executives getting bonuses, but we want all staff to share in the success of the company. Striking is a last resort and not something to be taken lightly.”

Dramatic UK growth forecast for superfast broadband

Thursday, May 27th, 2010

New broadband forecasts for the UK are good news for broadband operators and service providers.

The total number of broadband lines is now expected to be 25.1million by the end of 2014, almost a million more than earlier estimates, according to online trends experts PointTopic.

It says that, while the increase is not huge, it will help to improve the business case for broadband, and particularly for investment in superfast broadband using next generation access.

The short-term forecasts have also been increased. The actual total of lines in use at the end of 2009 was 80,000 higher than forecast, at 18.37million. The forecast for the end of this year has subsequently been increased to 19.79million, from 19.58million.

A major feature of the longer-term forecasts is the dramatic growth projected for superfast broadband, mainly based on fibre to the cabinet or premises (FTTx). Contrary to much opinion, Point Topic is projecting a boom in FTTx similar to what happened with BT’s DSL broadband services in the mid-2000s.

“We believe that FTTx will echo the development of DSL in the UK,” says Tim Johnson, Chief Analyst at Point Topic.

“People with dial-up internet access converted to broadband in their millions in the boom years. We forecast that superfast broadband will do the same around the middle of this coming decade.”

The number of DSL lines grew from 550,000 to 12.3 million between 2003 and 2007. Point Topic now expects that next-generation FTTx broadband will do something similar, with 12 million lines by the end of 2016.

“The difference from the noughties is that we think there will be a quicker run-up this time,” says Johnson. “While it took DSL three years to get from almost nothing to half a million, we expect that FTTx will cover similar ground in only two years.”

Key factors on the other side of the balance are that FTTx demands much more new investment than DSL and superfast broadband is not yet fully proven as a must-have service for ordinary homes.

“We think these barriers will be swept aside as user demand for bandwidth and a quality experience spirals upwards,” says Johnson.

Low-income school pupils to be offered free wireless broadband

Monday, March 1st, 2010

Pupils at a school in Bury, Greater Manchester, are pioneering a new scheme offering them free wireless broadband access to help them with their learning, and to introduce them to social media.

The innovation, at Broad Oak Sports College, is the first of its kind, and has been welcomed by school and local council officials.

The school and Bury Council had between them met the £140,000 cost of setting up and running the project.

Mark Sanders, chief executive of Bury Council, said: “The project is all about bridging the digital divide so that young people in poorer areas don’t fall behind.”

The project will entail setting up nine wireless hotspots around the school and the surrounding area. Initially, the first part of the project to go live offered the fast internet service to 120 homes.

In order to keep the network secure, passwords will be given to school pupils for their and their families’ use.

This is a different method of extending broadband network use to that proposed by the British government. It is looking at giving families on low incomes free laptop computers and broadband access, paid for by ‘Home Access Grants’.

British MPs call plans to fund high-speed broadband provision unfair

Tuesday, February 23rd, 2010

British Government plans for a tax on fixed telephone lines to pay for the infrastructure to increase broadband speeds in areas with poor access is unfair and unwise, according to a committee of UK Members of Parliament.

The Business Innovation and Skills committee supported the objectives of government’s ‘Digital Britain’ white paper whose main objective was to provide universal broadband access by 2012.

But it said plans to impose a 50 pence a month levy on all copper phone lines, which could raise up to GBP175 million to introduce faster broadband to areas where it would not be commercially viable for private investment, would be a regressive and poorly targeted tax, according to Reuters news agency.

At the same time, the government should appoint a full-time minister with the task of encouraging private investment in its broadband plans, the MPs suggested.

“In times of great stringency in public expenditure, digital inclusion, not next generation access, should be the priority for expenditure,” committee chairman Peter Luff said in the report.

“The market can be helped to deliver greater levels of high speed access without significant increases in public expenditure.”

The committee argued that a 50 pence monthly charge on fixed telephone lines placed “a disproportionate cost on a majority who will not, or are unable to, reap the benefits of that charge.”

Some government funding may be necessary at some stage, but it called the idea that authorities should intervene more widely “unwise.”

The committee also said the government’s proposals for a universal service commitment of 2Mbps should be considered a minimum standard to be available permanently, and to all users, under normal circumstances.

Mobile broadband speeds still disappointing consumers

Thursday, February 11th, 2010

Average mobile broadband speeds for users in the UK stood at just over 1Mb in 2009 – despite providers advertising ever-faster top speeds.

New research from more than 6,000 mobile broadband speed tests showed that average speeds rose by just 0.2Mb during 2009, even though many ISPs boosted their advertised top speed from 3.6Mb to 7.2Mb.

“Despite a continued failing to meet customer expectations and a history of complaints, the mobile broadband industry continues to use unrealistic speed claims as one of its main sales techniques,” said researchers at Broadbandchoices.co.uk.

Although most mobile broadband providers now advertise top speeds of up to 7.2Mb – a speed which dongles are capable of achieving in theory – some parts of the UK are still on a maximum of up to 1.8Mb, and few providers can even deliver that.

Vodafone Mobile Broadband (www.Vodafone.co.uk) is capable of the fastest theoretical speeds at up to 14.4Mb, but even when the ISP announced the development in August last year, it warned customers that they would only receive typical speeds of between 1Mb and 4Mb, even in the fastest areas.

Michael Phillips, Broadbandchoices.co.uk product director, said: “A number of different factors affect mobile broadband speeds, from buildings and trees blocking your signal to how many people are on the network or how far you are from your local mobile phone mast.

“Even though speeds are advertised as ‘up to’, mobile broadband providers need to do more to ensure that consumers know it is almost impossible to reach speeds of 7.2Mb – or even 3.6Mb in some parts of the country.”

O2 Mobile Broadband has recently been trialling Long Term Evolution (LTE), a new 4G mobile broadband technology that allows far faster speeds. It is theoretically capable of speeds of 150Mb and over, but delivered around 8Mb in recent real-world trials.

News home

iPad brings capacity worries for US broadband network

Monday, February 8th, 2010

American business and technology experts are voicing fears that the widespread arrival of Apple's iPad device could threaten the country's national infrastructure, as it might not be able to cope with greater demand from device users.

Information Week has reported that government officials have already voiced such concerns, and quotes Phil Bellaria, the director of scenario planning for the federal government’s Omnibus Broadband initiative as saying: “With the iPad pointing to even greater demand for mobile broadband on the horizon, we must ensure that network congestion doesn’t choke off a service that consumers clearly find so appealing or frustrate mobile broadband’s ability to keep us competitive in the global broadband economy.”

With just one company, AT&T, licensed to provide network services for the iPhone and now, the iPad, Bellaria believes that the US could experience a repeat of the scenario of the mid-1990s, when AOL first launched unlimited dial-up broadband services.

In his Information Week blog, Ed Hansberry recalls: “I had a number of friends and co-workers that were unable to get online for days at a time, and even when they could get on, they risked being knocked off during their session.”

And although he is hopeful that AT&T will this time be better equipped to cope, he believes that the company could alienate subscribers if they do experience problems with their broadband service: “I don’t see a national crisis in the making, but I can see frustration levels grow for current AT&T subscribers as precious bandwidth has to be shared with another device that will likely demand more data per device than the iPhone does.”

UK lags behind Europe in internet connection stakes

Tuesday, January 26th, 2010

Finland has topped the charts when it comes to internet access, leaving countries including the UK in its wake.

Eurostat, the official European statistics office, found every company in Finland with 10 or more employees has some form of connection to the internet, closely followed by Slovakia with its 98 per cent connection rate.

The UK fell below the European average of 93 per cent however, with 91 per cent of firms having a connection.

The UK did manage to beat the European average in terms of broadband connection though – 85 per cent, compared to the European average of 82 per cent.

A report released in December 2009 showed the UK has also fallen behind in terms of connection speeds. In response the government has said it wants to see super-fast broadband available to 90 per cent of the country by the end of 2017.

Plans to cut illegal file sharing could cost consumers £500m

Tuesday, December 29th, 2009

Government plans to slash the number of people illegally sharing copyrighted material online could cost consumers up to £500million.

As part of the Digital Economy Bill due to be passed through parliament in the coming months, Labour is intent on reducing the amount of people using peer-2-peer technology to illegally share films and music.

A new report released by the Department for Business, Innovation and Skills, has now revealed the bill could end up costing consumers between £290million and £500million if internet service providers (ISPs) pass on the new charges they face in full. ISPs estimate the cost of receiving broadband would increase by around £25 per household.

Under the Digital Economy Bill, ISPs would have to send out a warning letter to people caught infringing copyright. It’s estimated this would cost around £1.40 per offender.

 The Government has said the effect of the bill on low income consumers could be that they “stop consuming digital content altogether rather than purchase it”, while as many as 40,000 households may find the new prices too expensive and cancel their internet subscriptions.

The report says the plan could generate an extra £1.7billion in revenue for the entertainment industry over the next decade, leading to an extra £350million in VAT for the Government.

A report by The Times newspaper said ISPs are calling on the music and film industries to help to cover the cost.

Charles Dunstone, chief executive of Carphone Warehouse, whose subsidiary TalkTalk is the biggest consumer provider of broadband, said: “Broadband consumers shouldn’t have to bail out the music industry. If they really think it’s worth spending vast sums of money on these measures then they should be footing the bill, not the consumer.”

A spokesman for the Department for Business, Innovation and Skills said the overall benefits to the country far outweigh the costs.

Tech-savvy UK consumers held back by broadband speeds

Thursday, December 17th, 2009

UK consumers are among the most tech-savvy in the world according to a new report by telecoms watchdog, Ofcom.

The survey compared Britain’s use of digital technology with 11 other major economies including France, Germany, Ireland and the USA, and the four fast growing economies of Brazil, India, Russia and China.

It found Britain has the highest proportion of homes with digital television (88 per cent), and that last year we sent 83 billion text messages – more than any other country with the exception of the United States which sent ten times as many.

When it comes to accessing social networking sites such as Facebook through mobile phones, the UK has built up a considerable lead over other countries. According to Ofcom, in the third quarter of this year, 30.9 per cent of UK mobile web users accessed social networking sites on their phones, compared to 16.1 per cent in Italy and just 12.8 per cent in Germany.

The report also looked at the take-up, availability, price and use of Broadband, and in this area Britain didn’t fare as well.

Although the UK had the second highest uptake of broadband lines in the five years to 2008, the speed at which consumers can connect to the internet is not impressive when compared to other countries.

By the end of 2008, only 10 per cent of UK broadband users could achieve a headline speed above 8 megabits per second (Mbps). That compares unfavourably with countries such as France, where 26 per cent of users can connect at those speeds and the Netherlands where the figure is 37 per cent. 

Figures released by the Organisation for Economic Co-operation and Development (OECD) earlier this month revealed the UK is placed 21st out of 30 countries when it comes to broadband speeds. The UK government has said it wants to see super-fast broadband (generally regarded as speeds of 50Mbps or above) available to 90 per cent of the country by the end of 2017.

Governments urged to get up to speed on super-fast broadband

Monday, December 14th, 2009

The UK is trailing when it comes to access to next-generation broadband, new figures show.

According to the Organisation for Economic Co-operation and Development (OECD), the UK is placed 21st out of 30 in terms of speed – below countries such as Greece and Portugal.

A report issued following an OECD conference on “empowering e-consumers”, held in Washington, USA in early December 2009, suggests that investment by governments in fibre-optic networks is likely to bring greater economic returns in other areas.

When it comes to broadband penetration, the UK is in mid-table – placed 13th out of the 30 OECD members.

But most of these subscribers still access broadband via so-called DSL (Digital Subscriber Line) rather than via fibre-optics, according to a BBC report.

Overall, nearly one in 10 OECD subscribers currently accesses the internet in this more advanced way, including a majority of users in Japan and Korea, with fast growth also being seen in the United States and Scandinavia.

Japanese internet users enjoy access speeds almost ten times faster than nearly all of their competitors, and 20 times faster than typical speeds in the US, according to figures in the report.

The quickest adopters are being actively helped by support from their governments, the OECD report finds.

It concludes that such subsidies are justified because of the benefits broadband can make in four key sectors of the economy – electricity, health, education and transportation.

“If you cut one per cent off the costs of education, electricity, health and transport you would more than pay for a fibre network,” said Taylor Reynolds of the technology division of the OECD.

“That is the type of thinking required by countries considering rolling out next-generation networks,” he added.

With the UK’s broadband population standing at nearly 18 million, take-up of the technology is good but there are concerns about how quickly the UK is rolling out super-fast services.

The government wants to see super-fast broadband available to 90 per cent of the country by the end of 2017.

Superfast broadband is generally regarded as speeds of 50Mbps (megabits per second) or above.

Currently the UK’s phone system operator and major infrastructure owner, British Telecom, plans to offer a mixture of fibre technologies to around 40 per cent of the country, while Virgin Media has made cable broadband – capable of speeds of around 50Mbps – available to half of UK homes.

The UK government has announced a £6 a year tax on fixed-line phones to raise funds for the 30 per cent of the country that it estimates won’t get super-fast broadband under existing commercial broadband plans.

It hopes to raise around £170m a year through the levy, although the Conservatives have vowed to scrap the tax if they win the next election.