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Broadband Bulletin Issue 1 - November 2005


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If you have any information that you would like to contribute, contact: newsletter@bbwo.org.uk.
 
 
BBW News

The Broadband Wales Programme (BBW) is working hard to ensure that access to affordable broadband is a reality across Wales.
 
The multimillion pound Welsh Assembly Government initiative, established in July 2002, includes projects delivered with the support of partners from across the private, public and voluntary sector.
 
The Programme is committed to stimulating demand for broadband whilst encouraging further investment in the infrastructure. The aim is to enrich our lives, encourage growth and support the economic prosperity of the nation.
 
Following a strategic review the programme targets were updated in January 2005. 
 
BBWO monitors the progress made against each of BBW strategic targets and benchmarks the broadband market in Wales against other country markets..
 
Visit the BBWO website to read the BBW Strategy for 2005-2007 plus the latest quarterly review report www.bbwo.org.uk
 
Visit the Broadband Wales Programme website for information on the benefits that broadband can bring for you

Regional Innovative Broadband Support Project
First generation broadband services (between 512Kbps and 2Mbps downstream and between 256kbps and 512kbps upstream) are now widely available in the UK and Wales.
 
The Regional Innovative Broadband Support (RIBS) Project is designed to bring broadband to areas of Wales that still can not access broadband; including the 35 exchange areas deemed to be commercially 'unviable'.
 
The open procurement process began in June 2005 and included an advertisement in the Official Journal of the European Union (OJEU).  The Contract, to provide a broadband service, is to be awarded to the successful supplier and further details will be announced in a future bulletin.
 
Visit the BBWO website for further information www.bbwo.org.uk.

Broadband for Life Video
The Broadband Wales Programme has produced two broadcast-quality Broadband for Life videos. The videos highlight the benefits of broadband to consumers and businesses and, as such, are aimed at those unsure whether to subscribe to a broadband service. 
 
Both videos are available in DVD format and, along with the Broadband Made Simple series of booklets, are ideal for use in events and conferences.
 
Visit the Broadband for Life website to view online or download narrowband and broadband versions of the video www.broadbandforlife.com
 
To order copies, contact BBWO at

Get Smart: Get Broadband
The Broadband Wales Taskforce has been issued with Smart cars kitted out to demonstrate the benefits of broadband to people all around Wales.  They are on the road now.
 
Visit the Broadband for Life website for a list of dates and destinations www.broadbandforlife.com
 
Visit the BBWO for details of other events www.bbwo.org.uk
 
 
Broadband Initiatives

South of Scotland Broadband Pathfinder Project
Details of the South of Scotland Broadband Pathfinder Project have been published in the Official Journal of the European Union (OJEU).  The £27million project aims to provide schools, libraries and council offices with 8Mbps broadband.
 
The initiative is public sector funded and backed by Dumfries and Galloway Council and Scottish Borders Council. Contracts are expected to be awarded by mid 2006; with the network available in the targeted locations within two years.
 
Visit the Dumfries and Galloway Council website for more details
 
 
Regulatory Round-up

BT operational separation to herald a new regulatory approach from Ofcom
The Ofcom Board have accepted more than 230 legally-binding undertakings from the board of BT Group plc. The agreement will create a new regulatory approach to the access infrastructure operated by BT in the UK.
 
BT has formally established its new access services business, Openreach, which will be responsible for the "first mile" of wires that connects homes and businesses to BT exchanges across the UK.
 
Ofcom Chief Executive Stephen Carter said: "After a full year of detailed consultation, Ofcom has accepted BT's commitments. The new management of Openreach and the Equality of Access Board must now deliver - and be seen to deliver."
 
He added: "Ofcom is hopeful that this new approach to competition regulation will stimulate investment, innovation and sustainable growth in this critical industrial sector." 
 
Visit the Ofcom website for more details including the original report
www.ofcom.org.uk/

Openreach will "ensure allservice providers have equal access to local BT network"
 
Openreach will be operational from January 2006 and will be responsible for 120 million kilometres of copper cables.
 
The business will be managed by Steve Robertson who was previously with Colt Telecommunications before joining BT Wholesale in October 2002.
 
BT chief executive Ben Verwaayen announced: "This settlement is a defining moment for the industry and BT is totally committed to it. It offers a fresh start and means that companies will be able to focus entirely on their customers without being distracted by micro-regulation."
 
Visit the BT website for more details including the original report
 
 
Policy Piece

Image of Rt Hon Alun Michael
The Rt. Hon Alun Michael MP called on "business, civil society, governments and others to take forward the i2010 Strategy and to take it seriously"
 
As a keynote speaker at the i2010 UK conference in London on 6 September 2005, the Minister for Industry and the Regions spoke of the importance of identifying and agreeing on the actions required to deliver the i2010 objectives.
 
Rt Hon Alun Michael MP
 
The Labour and Co-operative MP for Cardiff South and Penarth was one of five keynote speakers, the others were Viviane Reding (European Commissioner for Information Society and Media), Dr Daeje Chin (Minister for Information and Communication, Republic of Korea), Arun Sarin (CEO, Vodafone) and Ben Verwaayen
(CEO, BT).
 
UK Presidency of the EU 2005 logoThe i2010 Strategy is intended to make Europe "the most competitive and dynamic knowledge-based economy in the world" by 2010.  The strategy is a response to the challenges faced by Europe in 2005, such as competition from the US and Asia.
 
The UK conference was the main ICT strategy event taking place during the UK's Presidency of the EU. The conference presented a key opportunity for governments and business from across the EU to actively contribute to defining the i2010 Strategy that will help the EU move forward.
 
The conference was attended by over 350 participants, representing all 25 EU countries as well as a number of other countries, including South Korea, Japan and Switzerland.
 
Over 40% of participants represented non-government interests.
 
Visit the DTI's i2010 website full transcripts of the key note speeches and the plenary and work stream sessions www.i2010.org.uk
 
 
Technology Trawl

The broadband market is dynamic and fast moving, and we are currently in a transition period where the focus is moving from the urban/rural divide that affected the availability of first generation broadband services, but which is increasingly less of a problem.
 
The next generation of broadband services are becoming available in the UK and we are seeing market consolidation as companies position themselves to offer faster broadband.
 
BT has also announced plans to replace its entire PSTN based network with an IP-based "21st Century" network beginning with 350,000 customer lines in Cardiff and the surrounding areas during the second half of 2006.
 
BT Group chief technology officer Matt Bross said: "This rollout will be the first time anywhere in the world that customers will have communications services provided over such a radical next generation network." 
 
Visit the BT Innovation website for more details www.btplc.com/Innovation

BT is commencing commercial trials in November 2005 of its ADSL broadband Max service which will deliver speeds of up to 8Mbps.  Service providers have been formally invited by BT Wholesale to take part in the trial which will take place in 25 exchanges across the UK.   
 
In Wales the trial exchanges are Llandaff, Llanishen, Radyr and Rhoose.
 
BT intends to roll-out this service UK-wide in the Spring of 2006.  This will allow ISPs to offer an 8Mbps service without the need to 'unbundle' the exchange. 
 
Visit the BT website for more details

Meanwhile, Local Loop Unbundling (LLU) has enabled Bulldog (part of Cable and Wireless) to offer up to 8Mbps broadband services in Cardiff and Wrexham since the summer of 2005.
 
Visit Bulldog's website for a full list of exchanges

Several companies are trialling services of up to 24Mbps in England using ADSL 2+. BBWO will report in future bulletins on any news of such services coming to Wales.  UK Online (part of Easynet) has been conducting 24Mbps trials since March 2005.
 
Visit the UK Online website for more details www.ukonline.net

Be Un Limited ("Be") are also taking registrations for 24Mbps services in England.
 
Visit the Be website for more details

One factor for the additional speed requirement is the desire to claim a stake in the fast growing 'triple play' space (TV, PC and telephone) ahead of analogue TV services being turned off from 2008.  
 
Digital TV can be accessed through satellite, cable, through an aerial (Freeview) and through a phone line.  Digital TV services through a phone line are not currently available in Wales.
 
Culture Secretary Tessa Jowell has announced that the digital switchover will take place in Wales in 2009.
 
Visit the Digital TV website for more details www.digitaluk.co.uk

British Sky Broadcasting (BSkyB) operate the Sky satellite platform which carries over 535 channels and has nearly 8 million subscribers in the UK and Ireland.  BSkyB announced on the 21st October a cash offer for internet provider Easynet.  This will enable them to offer additional internet and telephone services through the phone line, to make them a "triple play" business.
 
NTL and Telewest, the UK's cable companies, already offer "triple play" services. They have nearly 2.5 million broadband subscribers in the UK and have both launched Video On Demand services.  NTL operates in parts of Wales but Telewest does not.  A merger between the two companies has been announced for early 2006.
 
Visit the NTL/Telewest merger website ntltelewest.mergerannouncement.com

NTL has announced 10Mbps will become their standard speed for cable broadband customers by the end of 2006 - with speeds of up to 50Mbps possible for the future.
 
Visit the NTL website for more details

ZDNet UK have reported that Telewest is aiming to launch a 100Mbps service in 2007.
 
Visit the ZDNet website for more details news.zdnet.co.uk

Voice Over IP (VOIP) is increasingly available to broadband users in Wales from a range of companies including Microsoft, Google, BT, Pipex and Skype. 
 
Skype, a VOIP company, was recently acquired by Ebay for €2.1 billion.
 
Visit the Ebay website for full details investor.ebay.com
 
 
Market Watch

The Office of National Statistics (ONS) Internet Connectivity report shows that, by August 2005, broadband connections made up 55.7% of all internet connections in the UK with dial-up connections accounting for the remaining 44.3%.
 
Broadband connections overtook dial-up connections for the first time in May 2005.  The market share held by dial-up connections has declined since it peaked in February 2002 - as broadband has grown in popularity and availability.
 
Visit the ONS website for the full report www.statistics.gov.uk

Figures released by the Organisation for Economic Co-operation and Development (OECD) show that in June 2005 the UK was ranked in 13th place out of 30 member countries with 13.5 broadband subscribers per 100 inhabitants.
 
This is an improvement from December 2004 when the UK was ranked in 14th place with 10.5 broadband subscribers per 100 inhabitants chart.
 
Korea maintains its lead in OECD broadband penetration with 25.5 subscribers per 100 inhabitants.  The Netherlands is in second place at 22.5. 
 
Visit the OECD website for all the figures www.oecd.org

Similarly, the Ofcom Communications Market Quarterly Update reported that "broadband continues to be the lead story in the telecoms sector". The report showed that by June 2005 there were 8.1million broadband connections in the UK with market share split between cable companies (28%), BT DSL connections (25%) and BT's competitor DSL ISPs (47%).

Ofcom Communications Market Quarterly chart

Visit the Ofcom website for the update www.ofcom.org.uk

Point Topic's World Broadband Statistics for mid-2005 show that Europe is pushing to take over the leadership of broadband growth, with Russia and India also starting to make significant appearances on the broadband scene.
 
Visit the Broadband Stakeholder Group (BSG) website for more details