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BT: television is key to nationwide fibre broadband

By Barry Collins

Posted on 3 Sep 2010 at 08:00

Britain won't get universal fibre broadband until people are watching television over the internet, according to a BT executive.

BT currently plans to roll out fibre to around two thirds of the country by 2015. But the country's biggest telco says it can't afford to reach the final third unless it can generate extra revenue from additional media services such as pay-TV, video-on-demand and gaming.

When viewers use their broadband to consume TV on their TV set... that's when we'll see broadband penetration go from around 70% to 90%

"The two thirds [fibre] coverage is not the limit of our aspirations, but we can only add to that by selling more services over the broadband network," said Sean Williams, managing director of strategy, portfolio, legal and regulatory services at BT Retail, speaking at a Westminster eForum.

BT is one of the partners in Project Canvas, a coalition of broadcasters and telcos that plans to deliver internet television via set-top boxes. Canvas will deliver Freeview television alongside revenue generating video-on-demand.

"When viewers use their broadband to consume TV on their TV set... that's when we'll see broadband penetration go from around 70% to 90%," Williams predicted. "In that context, pay-TV is very important."

Canvas opposition

Project Canvas has met with stern opposition from Britain's existing pay-TV providers - namely Virgin Media and Sky - who have complained to regulator Ofcom that the service is anti-competitive.

Williams accused the TV companies of sour grapes. "It's time the pay-TV operators stopped their campaign to kill off Canvas," he argued. "It's just an anti-competitive initiative to prevent pay-TV competition in the UK."

However, BSkyB's director of policy and public affairs, David Wheeldon, was in no mood for conciliation. Railing against Ofcom's recent decision to force Sky to sell its Sports channels to providers such as BT for a knock-down price, he complained that "the creative side of the industry" was being used to "subsidise BT’s broadband".

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User comments

Chicken and Egg

Television is the key to nationwide fibre broadband? Surely fibre broadband is the key to television over the net.

By FeaseyK on 3 Sep 2010

What a nonsense

Couldn't agree with you more, FeaseyK. For those who have a slow broadband connection like mine (under 1Mb) television over the net is not an option. Fibre has to happen sooner or later - just get it done, BT.

By gpmfitzgerald on 3 Sep 2010

What Choice?

Its the lack of choice that irritates me. There is not even LLU equipment at my exchange yet let alone the option of fibre. I have no choice except to go along with BT so we end up moving at their pace. The consumer needs more choice even if that means paying a premium to install equipment. And, no, I don't agree that fibre rollout should be subsidized by taxation - this is something that needs to be market led. We just need the choice.
More annoyingly, if I lived a few hundred yards away from where I am now, I could connect to the Virgin Media network - but they have stopped laying cable themselves!

By alanmort on 3 Sep 2010

Yes, I totally agree with the other posters above.

I can't even stream Youtube on my PC due to my 512 kbps broadband (the best I can get.) There are literally no affordable or viable alternatives for where I live. It's been this way for the last five years and the situation reeks of stagnation.

Given pronouncements like the one above from Mr Williams, I have zero faith that it will improve any time soon.

By Mr_Flynn on 3 Sep 2010

Satellites

What about broadband beemed into the whole country via satelitte.If it's good enough for Freesat then it's good enough for all of us.One or two satellites in geostationary orbit above the UK should do it to reach everybody.

By Jaberwocky on 3 Sep 2010

@Jaberwocky: Last time I checked, the little black dish on my wall didnt transmit anything and so you'll still need to have a decent submission network.

By Fraz_pro on 3 Sep 2010

There is the tech for SatPhones, and I'm certain that could be used to carry internet comms.

But it doesn't come cheap.

A £15 per month subscription rate isn't going to get high technology companies drooling at your business for SatBroadBand. Not for now at least.

By matbailie on 3 Sep 2010

You are all missing the point. He is not talking about watching Youtube clips on your PC. He is talking about delivering your television service to your actual television set via fibre broadband. As an alternative to cable, satellite and freeview. It's about supply and demand. Once this type of TV service is available it will drive the demand for super fast broadband to the home. That is what he is saying.

By juzilla on 6 Sep 2010

From the podcast

Listened to the "heated" debate on this week's podcast. The national mandate vs. Private interest bit was probably more interesting as it really can be traced back to the privatisation of BT.

Had the then government separated the operations from the infrastructure we may not be in quite the confusing state we are today with regulators and vested parties.

The infrastructure is arguably a national strategic asset which underpins communications and commercial activities more generally.

Disposing of it to a private business meant ceding control of said asset so having national targets for broadband access, etc., without the control (authority and money) seems wishful thinking.

I know the split would not have made BT as attractive an investment but think of the waste and consumer irritation the current arrangements have caused.

Were the infrastructure (backbone and wire to homes/businesses) in state ownership the market for both telcos, broadband would be a level playing field (regulator's role would be more straightforward) as the companies would need services to differentiate themselves rather than illusionary speeds.

The government would then be able to set the targets in a more meaningful manner and actually be responsible for delivery.

Sadly we are not in that position and consequently we must continue to endure confusion because of a lack of strategic thinking in the past.

By Higgs on 9 Sep 2010

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