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BT hits back at MP's "ponderous monopoly" jibe

Olivia Garfield

By Barry Collins

Posted on 19 May 2011 at 09:05

BT Openreach chief Olivia Garfield has denied accusations from MP David Davis that the company has turned into a "ponderous monopoly".

Davis penned a piece in yesterday's Times, suggesting the Government should take advantage of unemployed labour to build Britain's fibre broadband network, after claiming that the £25 billion required to build a nationwide fibre network was "more than the ponderous, monopolistic companies in this sector are willing to risk".

We have thousands of highly skilled engineers working on our fibre deployment

In a letter to the newspaper today, Garfield claims that Davis "paints an unnecessarily bleak picture of the UK broadband market".

"BT is not sitting still," Garfield insists, "which is why we are investing £2.5 billion on a new fibre-optic network that will deliver faster broadband to two thirds of UK homes."

She also counters Davis's accusations that Britain is falling behind other countries. "It may be the case that the UK is catching up with South Korea and Japan in terms of speed but the rollout of fibre in those countries has been helped by substantial government subsidies, regulatory freedoms and the high density of apartment blocks."

Finally, Garfield dismisses Davis's suggestion that laying fibre is low-skilled labour that could be performed by untrained jobseekers. "We have thousands of highly skilled engineers working on our fibre deployment, with our network being available to all broadband suppliers on an open wholesale basis."

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User comments

Quote: "BT is not sitting still," Garfield insists, "which is why we are investing £2.5 billion on a new fibre-optic network that will deliver faster broadband to two thirds of UK homes."

I know that I keep banging on about this so apologies, regular readers.

But as a resident in one of the other 'one third of homes' that just happen to be outside the urban area (i.e. in the sticks!) I can only look with jealousy at the broadband speeds British town dwellers obtain.

We country folk are definitely second class citizens when it comes to broadband and nobody with influence seems to give a damn that we are thus disenfranchied.

By jontym123 on 19 May 2011

Davis still not a technician

It doesn't surprise me at all that David Davis finds himself at odds with BT's technical experts. He is, after all, the person who described in PC Pro a few years back his solution to internet crime as being "have more policemen," misapplying a political solution to a technical problem.

When it comes to technology, the government should trust the experts. Where appropriate it should check up on them and make sure they get things done, but politicians should not second-guess engineers.

By storm311 on 19 May 2011

Tricky BT

They are certainly slick at keeping customers at a distance, making it as hard as possible to get help and assistance.

By JayGeEm on 19 May 2011

It

It sounded like a stupid idea - that somehow BT aren't good people to lay miles of fibre optic cable, that plumbing it together is somehow a low-to-zero skill job.

But at the same time as criticising the idea, I can't bring myself to defend BT. Because of the insanity of long term contracts my company is currently paying 10x the amount it might otherwise pay for our basic business broadband service from BT.

By revsorg on 19 May 2011

Get the unnemployed

Maybe they could get my wife to do this, at her last assessment she was described as being a liability to any future employer.
So methinks that will sink that idea, ooooppps.....

By roberttrebor on 19 May 2011

BT Laying new cable

Yes the rollout is progressing - in the areas where Virgin Media already has cables. Got a card from BT in Warwick only last week, Dont know where they got my name from, Have not been a BT customer for over 10 years.

By roberttrebor on 19 May 2011

BT is still a plc

And as a result they have shareholders to report to, just like any other company. So, like Virgin, but to a lesser extent, they are only going to want to lay fibre in areas where it's economically viable for them to do so. They have to keep the shareholders happy, otherwise they all sell up, the share price tumbles and suddenly BT don't have any cash to do a whole lot of anything. This would then leave other providers to have to pick up the slack, and obviously virgin have shown a loads of interest in laying fibre outside major urban areas.

By judas6003 on 19 May 2011

BT are untrustworthy

I lve 330 metres from the exchange but somehow BT have contived to destroy a solid 7/8 mb connection to

By harps on 19 May 2011

less than 1mb. Give government backing to competitors to make them raise their game

By harps on 19 May 2011

Is BT Broadband a "ponderous monopoly" ?

BT Openreach chief Olivia Garfield (Allegedly says)
[Quote]
"We have thousands of highly skilled engineers working on our fibre deployment, with our network being available to all broadband suppliers on an open wholesale basis."
[Unquote].

Olivia Garfield is implicit that BT will not want nor desire the interaction of third parties to roll out Broadband Fibre Optic Cable.
While the "BT network may be open to all Broadband Providers, it is at monopolistic hire rates {"open wholesale basis"} if there are no alternative NETWORK SUPPLIERS.

As one has to account for shares and dividends and PROFITS; these hire costs are therefore higher than if it were a Nationalised Infrastructure.

Reducing overall cost to users, by way of modernisation has the detrimental effect of cutting Profits. Thus dividends would suffer, as well as shares and it is in the company interest NOT to modernise.

Perhaps David Davis MP struck a lucky statistical combination; in part but for the moment he is logically proved correct!

By lenmontieth on 20 May 2011

@lenmontieth

Sorry for Double Post... Sticky "Submit Box" Problem

By lenmontieth on 20 May 2011

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