Cover story
Cover story
Fibre is seen by its proponents as a driver of economic growth, but it faces regulatory and market dynamics challenges, with industry consolidation already under way.
The availability of full-fibre broadband almost everywhere will lay the foundations for productivity gains across the UK, according to UK regulator Ofcom, which has finalised plans for how it will enable further competition and investment in the sector. The announcement, which builds on its 2021 overhaul of how it regulates Openreach, sets out the rules the digital infrastructure provider must follow for the next five years, to see the full fibre rollout by a range of companies through its final phase. TURNAROUND. Nearly eight in 10( 78 %) of homes now have access to full-fibre broadband, up from less than a quarter five years ago, in a rapid turnaround that has seen the UK
10 EUROMEDIA
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Colin Mann takes an overview of the success and challenges for fibre rollout in Europe.
become one of the fastest builders of this infrastructure in Europe.
According to plans from the UK’ s broadband networks, with the right support, full fibre will reach almost 29 million properties by the end of 2027, equivalent to well over nine in 10.
“ We’ re creating the right conditions for final phase fibre rollout.” – Natalie Black, Ofcom
They say that with around a fifth of the country yet to get access to full fibre, every upgraded connection means a home or business can do more online. Whether that’ s a busy household where everyone can be online at the same time, a factory able to seamlessly track its orders and automate its machinery, or a digital start-up that can instantly test new versions of its app, better broadband helps put the UK on a path to higher productivity.
Ofcom’ s new rules also come as AI is rapidly transforming businesses across the country by radically cutting the amount of time needed to perform a range of tasks. As the technology requires a fast, reliable internet connection to work at scale, the full-fibre rollout will be vital for supporting productivity in every corner of the UK. MILESTONE. Ofcom’ s Group Director for Infrastructure and Connectivity, Natalie Black, said:“ Today marks a major milestone on the road to a better connected, more productive Britain. Five years ago, we put in place new rules to drive competition between networks and get them building full-fibre broadband, which now reaches nearly eight in 10 homes and offices across country.
But our mission isn’ t yet complete, and we’ re creating the right conditions for the fibre rollout in its final phase. Our review of the rules has been an extensive and complex undertaking given the nature of the market, and we appreciate the considered engagement from the sector.” FRAMEWORK. Since Ofcom introduced a new regulatory framework in 2021 to drive competition between different broadband networks, it says the fibre-rollout has been an infrastructure success story.
The regulator states: The vast majority of the UK( 87 %) now has access to a Gigabitcapable network, and full-fibre coverage stands at 78 %, compared with just 6 % in 2018. With industry investing billions each year bringing better broadband to communities up and down the country, the rollout is now reaching its end phase.
Looking ahead, the next frontier for fibre is customers taking it up, with more than half of those eligible for an upgrade yet to make the change. Every new sign-up helps connect the country and power up its productivity. STABILITY. Ofcom says its announcement comes as the broadband market is changing rapidly, and the framework of its regulation will stay in place to provide stability and certainty.
It claims people have more choice between broadband providers than ever before- around three quarters have access to at least two networks, and nearly a third of the country can choose between three. This has meant ever better services at attractive prices.
But Openreach still has huge sway over the wholesale market and we’ re not at a point where we can remove regulation entirely. Ofcom wants to see competition continue to develop and is therefore maintaining rules around its discounts and deals that it says could stifle investment and the development of sustainable competition.
When Ofcom considers these rules, its approach will continue to be evidence-based and take into account the state of the market through expert analysis. As competition develops, there may be future scenarios in which it can relax its position on Openreach offers. To provide greater clarity, Ofcom has issued new guidance that explains how it