Ofcom is proposing to let BT set its own return on
investment targets for rolling out a fibre-based high-speed
broadband network to compensate for a "risky"
investment.
"Currently, there appears to be limited interest from
communication providers other than BT in investing in
fibre-to-the-cabinet infrastructure for super-fast broadband,"
Ofcom said in its consultation document.
Yet others are prepared to take the risk. Virgin Media CEO Neil
Berkett says his company has risked "hundreds of millions" to
upgrade its cable-TV-based network to 50mbps. And there is also no
shortage of city administrations and regional development agencies
prepared to invest in fibre networks.
Malcolm Corbett, CEO of the Community Broadband Network, told
the recent Communication Managers Association that he has around 20
local fibre projects at various stages of development, with the
first to light fibre a new build development in Glasgow, where
tenants moved in last month.
Corbett added: "We are working towards 250 projects and more,
but it will take a while."
Corbett says there is "no top-down business case" for a £30bn
project to run fibre to every home in the country. "However if you
turn the problem on its head, it equates to less than £1500 per
house or business. If the financing is spread over 20 years, it
becomes a much more do-able proposition.
"This is the basis for the projects we are working on: community
engagement to drive take up levels; long-term financing; and an
intelligent approach to local architecture to drive down costs.
Added together, this equates to projects that can aim for fttp,
offering 100mbps symmetric connections, on an open-access basis,
with no price premium for consumers."
A BT spokesman says the company will look to recover its
investment in three to five years. However, he says the fibre
cables that BT will install will have a working life of "at least
20 years".
He adds that BT has already installed around 10 million
kilometres of fibre.