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BT's Openreach: we don't have a fibre monopoly

By Nicole Kobie

Posted on 1 Nov 2012 at 16:25

The head of BT's Openreach has "categorically denied" the ISP has a monopoly, and claimed it's not BT's fault that it's winning government funding.

TalkTalk's CEO Dido Harding earlier this week referred to Liv Garfield, the head of infrastructure arm Openreach, as a "lovely monopolist" - an accusation that comes as BT continues to win the bulk of funding via the government's Broadband Delivery UK project, designed to boost rural networks.

In a conference call with journalists following BT's quarterly results, Garfield first welcomed the compliment - "My customer thinks I'm lovely!" - but then strongly denied BT was a monopoly, given Virgin Media's reach.

I categorically refute the monopoly debate

"On fibre I categorically can’t be a monopoly when I’m about 40% of the country, [and] there is a cable provider with a larger footprint which covers many of the same areas, so there’s choice in the market,” she said. "I categorically refute the monopoly debate."

She added that, via its wholesale system, BT's network is open to "everyone" and it's "perfectly happy" for rival ISPs to use its ducts and poles - although that systemappeared to require some prodding from Ofcom.

However, Garfield would like to see regulatory action in one area of competition in the broadband market: how the power gets to cabinets.

"Basically, if there was a monopoly right now in the world of fibre, I’d debate that it was in the UK Power Network space," she said, referring to the company that manages all UK power delivery. "UK Power Networks are the only people who can power cabinets."

BT will go in and lay infrastructure, and then as one of the final steps get the quote back from the power company. She said the price can jump from the expected couple of thousands of pounds to £25,000, leaving the cabinet "non-commercially viable".

That has affected "tens and tens" of cabinets, she said, suggesting regulation may be needed to solve the problem.

Update: A spokesperson for UK Power Network said the company "is not the only company which can provide the services required to power BT's broadband cabinets.

"As part of our commitment to competition, Ofgem has recently approved our request to enable any suitably accredited independent connection providers to carry out the live jointing of services to mains, which had previously not been open to competition. BT is but one of a large number of customers that are able to benefit from these arrangements - all elements of this work are open to full competition."

BDUK bids

Alongside its quarterly results, BT revealed it was moving up its rollout of fibre, saying two-thirds of the country would be covered by early 2014.

For the final third, mainly in rural areas, BT has been winning the bulk of government funds to supply fibre - with its only other approved rival, Fujitsu, stepping out of the running in some areas.

Garfield said it's not BT's fault it keeps winning bids, adding the company doesn't expect to win them all. "This is business. It’s a complete choice for companies to decide to bid. And it’s a choice for every buyer to decide who to buy,” she said, noting BT didn't win early rural broadband projects in South Yorkshire or North Wales.

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User comments

BT, you still don't get it, do you?

950,000 customers for Infinity out of a claimed 12 million potential customers.

Dammit, BT. The "low hanging fruit" for take up of faster internet connections isn't in the urban areas. They are already well served by ADSL+ and the like.

We on the outskirts of urban areas would dearly love 15 or even 20Mbps, never mind 80Mbps, but we are ignored and left to deal with speeds that won't even allow iPlayer streaming.

By jontym123 on 2 Nov 2012

No point going to BT

What is the point of BT providing broad band as their fair usage policy prevents you from actually using the service.

At least with other operators they may use traffic shaping but they don't disconnect you for actually using your bandwidth.

As for Virgin making them not a monopoly, last time I checked Virgin weren't gifted their infrastructure they had to create it themselves.

I would rather see subsidies going Virgin's way so that they can achieve 100% coverage.

By Ulfarus on 2 Nov 2012

@ Ulfarus

Virgin only have to apply like everyone else. and full fill the conditions such as sharing their networks which I believe Virgin does not want to do. So it is Virgins own fault if they don't get the grants.

By curiousclive on 3 Nov 2012

Monopoly

'exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.'

Hope this helps Liz. and, from where most of us sit, there is nothing beautiful about this monopoly... £530m + Connected cities £150m + £m's that are being given by local authorities, all going to BT

Why is it, that when this country eventually decides to roll out 4g services, spectrum is divided up and auctioned off. yet when this country needed a decent fixed line service it is gifted to one company and to make it a little sweeter, here a billion or so £'s as well.

if anyone from DCMS can be bothered to stop patting BT on the back for one minute. take a close look at some of the 'Exchange' conversions, try Hardingston if they need an example, but there are plenty more, maybe then Maria or Ed will understand our frustration and recognise that in the majority of this country BT has a monopoly. a monopoly is should not have, and by the demonstration of its behaviour does not deserve....

By andy493 on 3 Nov 2012