A new national fibre optic network could fuel demand for
bandwidth-hungry applications such as
videoconferencing, VoIP and internet television, which struggle
to run efficiently on existing copper-based broadband
infrastructure.
BT is investing £1.5bn in a
fibre optic network that will deliver download speeds of
100mbps to UK broadband users. The move follows increasing
competition, particularly from
Virgin Media, which plans to introduce a 50mbps broadband
service in September.
BT aims to put 10 million homes on the fibre network by 2012. To
control costs, the network will be built in two parts. One million
new-build homes will receive the fibre network directly. For the
remaining nine million residents BT plans to replace the copper
cabling that connects kerbside cabinets in streets to the local BT
exchange with fibre optic cabling.
There is one important caveat. BT will build the network only
where there is demonstrable demand from broadband users.
BT says it will work with regional development agencies and
local authorities to identify demand. This could mean the network
is limited to areas with large populations of broadband users.
David Harrington, head of regulation at Communications
Management Association (CMA) warns that BT may simply not have a
business driver to connect less populated regions. But for those
people who can get it, fibre will enable new internet
applications.
Peter Scargill, chairman of the national IT committee at the
Federation of Small Business welcomes BT's fibre optic network
plan. "Today small businesses use multiple computers - and
increasingly, VoIP phones and services such as Skype - all of which
need some of the available bandwidth. As more of these services
become attractive to use, we will need more bandwidth."
Bandwidth-hungry video applications would also benefit, says
Carl Bate, UK chief technology officer at professional services
firm Capgemini. "The BT fibre optic network presents some
intriguing possibilities for major corporates and government
departments to mass-enable a new generation of teleworkers," he
says.
People will inevitably find a use for the extra bandwidth
promised on BT's fibre optic network. Videoconferencing,
video-based training and teleworking could all benefit from faster
bandwidth.
Advertising agencies and media companies are already pushing the
limits of today's available bandwidth. Jeremy Beale, head of
knowledge economy at the Confederation of British Industry, urges
retailers to look at how they too can utilise faster broadband to
sell value added services.
Richard Steel, chairman of local government IT managers group
Socitim, is one local government IT director keen to see what BT
can offer. "In the past, we have had some issues because network
companies only want to invest in areas where there is quick
payback, which tend not to be those we need them in."
Since BT is only building the network where there will be
customer demand, some UK broadband users may find they are
second-class citizens on the next-generation UK internet, denied
access to BT's fast fibre optic network because their location is
regarded as not commercially viable for connection.
According to the latest research from the Broadband Stakeholders
Group, copper wiring, used in ADSL2+, can offer internet users a
data upload speed of only 0.7mbps, even though the downlink can
transfer data up to 24mbps.
"This means that some applications like the BBC iPlayer [for
downloading TV programmes] need to be written to support lower
bandwidth. Fibre supports 20mbps in both directions," says Antony
Walker, chief executive of the Broadband Stakeholders Group.