Broadband Bulletin Issue 14: December 2006
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Cardiff 2nd In UK Broadband
League
Research from Point Topic has shown that Cardiff is the
2nd most broadband place in the UK behind Swindon.
Swindon has an estimated broadband penetration of 59.8 per cent and
has been in pole position since December 2005 but recent growth has
seen Cardiff grow from 46.7% to 57.8% just 2 percentage points
behind Swindon.
Point Topic has reported that: "Swindon will start feeling the
pressure of the approaching competition despite good performance in
the first half of 2006. In the last report Cardiff occupied
15th place in the ranking, with a residential broadband
penetration rate of 46.7 per cent; at the end of June 2006 it had
moved up to the second position, with 57.8 per cent.
"The capital of Wales was the place chosen by BT for the
initial tests of its 21CN (21st Century Network), with 10 per cent
of the telco's subscribers base being moved to the new platform in
March 2007 and the rest in June 2007. The backing of the new
technology should be an extra incentive for the take-up of
broadband in the city."
No other Welsh locations are within the current top 15.
By the end of June 2006 less than half of the UK (40.4 percent) had
a broadband connection and some of the rural areas (particularly in
Northern Ireland, Wales and the East Midlands) had less
than one in three households had broadband access to the
Internet.
21st Century Network Migration Begins In Wick
On 28 November 2006, BT transferred the first customer lines
to its 21st Century Network (21CN) which is due to be
rolled out over Britain over the next few years.
The first customers were based in Wick, near Cardiff, and the
upgrade took place without the need for an engineer visit, new
telephone, or a new telephone number.
Paul Reynolds, chief executive of BT Wholesale and BT board
sponsor for the 21CN programme said, "Today marks a symbolic and
momentous occasion for BT, the communications industry and for the
UK as 21CN, over three years in the making, starts to become real
for customers. Alexander Graham Bell made the first telephone call
130 years ago – we are also making history with the first live UK
customer calls using a carrier class, all IP network."
"Still Can't Get
Broadband?"
There are 439 telephone exchanges in Wales, all have now been
ADSL enabled apart from Rhos and Llawhaden. All of the exchanges
enabled will be able to deliver ADSL Max services and be included
in any future national upgrade programmes such as ADSL 2. 33
were enabled under the Regional Innovative Broadband Support (RIBS)
programme.
If you already know you are in a broadband "not-spot" you can
assist us by registering your details on our Web site
www.bbwo.org.uk/not-spotsIn addition, you may want to ask your neighbours to see if
they are facing the same not-spot issues, and encourage them to
register their details onto the brokerage site, as the more
registrations that are collected in one area, the better the
business case and justification for doing the work.
Walesis the only country in the world that is
addressing not-spots at the same time as enabling its unviable
exchanges.
Feature: Orchard Davies Ltd
Case Study
Orchard Davies Ltd is a small accountancy practice,
specialising in providing tax and accountancy services, including
the filing of returns. They specialise in advising professional and
self-employed contractors in the media sector (producers,
technicians, etc.).
The single fee earner, Gareth Thomas, has tremendous
experience but is registered disabled, having poor eyesight.
Technology helps him to overcome this disability and the
availability of a broadband Internet connection enables him to use
specialist software for Web browsing when required.
Gareth has kept pace with technology, utilising a dial-up
connection initially, but moving then to ISDN, 512 Kbps Cable
broadband and then ADSL broadband, with 1Mbps, 2Mbps and now 8Mbps
connection speeds.
His use of the Internet has expanded with the increases in the
speed of his connection and he now makes far more effective use of
the Internet. This is both for business research and for the
on-line filing of tax, VAT and self assessment returns.
The Government has an agenda of pushing companies and
'technology aware' individuals into on-line filing of all financial
returns within the next 6 years, a process that has already
started. The availability of fast Internet access has been
the driver for the economies the Inland Revenue want to make, by
putting the onus for direct submission of information into their
systems on the user.
Large accountancy practices have had fast Internet access for
a number of years, normally through a leased line, while small
practices, such as Orchard Davies Ltd, have been unable to justify
the expense of a leased line. With the advent of broadband
small practices can now cost effectively access similar connection
speeds to the large companies and can make the on-line submissions
required without spending significant amounts of time sending
information through dial-up connections.
The availability of a broadband connection allowed Gareth to
reduce his costs and also to increase his profitable work by over
10% while he was renting office accommodation in Cardiff Bay.
He has subsequently moved into a converted garage at his house; a
move that could not have been contemplated without the availability
of broadband, which has provided another significant saving in his
overhead costs.
"The move to on-line filing, together with broadband
connectivity has changed the way I do business significantly.
I now spend time acting on behalf of my clients rather than chasing
errors in transmission of sensitive tax information. I have
been able to take on more clients and expand my business within the
time that I have available for work. Moving from a serviced
office into my converted garage has also resulted in cost savings,
a move I could not have contemplated without having broadband
available."
Orchard Davies can be found at
Feature: Red90 Ltd Case
Study
red90 is a limited company setup in 2003 by Martin Philips and
Stuart Bradley. The business produces corporate videos for a
variety of organisations including Barclays Bank, Pfizer, The
National Lottery, Tesco, Mencap and the NHS to name but a few.
Martin and Stuart's work has gained recognition having won numerous
awards and accolades over their time in the industry including the
APV Best Promotional Film Award 2001, Screening of Showreel at
Tokyo Film Festival 2002 and NTL Annual Awards Best TV Ad'
2002.
Martin Philips and Stuart Bradley,
Directors of Red90 Ltd.
Martin started work as a cameraman with a personal interest in
technology. His video production CV boasts big names such as the
BBC and NTL. He is now the Head of Production and works with more
of the technical aspects of editing work as well continuing his
camera work.
Stuart has been in radio, theatre, national television and
corporate video for almost 30 years. He is best known for
presenting programmes such as Playschool, Playdays and Caterpillar
Trail for the BBC. He now works as a writer, director and presenter
as well as being responsible the creative look of the
filming.
A good example of red90's streaming video work can be seen on
one of their Welsh clients website or on the red90 Web site . They
use the latest digital cameras and edit suites to provide videos
which can be distributed by DVD, CD-ROM, the Internet or VHS.
Videos can be short promotional films to much longer staff training
films. There is no average length for the video with short films
lasting around 30 seconds to longer productions taking over an
hour.
By incorporating broadband into their production of videos,
red90 have been able to streamline their working processes and
introduce a new product line - videos for streaming across the
Internet. By employing broadband to stream high quality video over
the Internet, clients can show their video to anyone in the world
without the cost of producing a batch of DVDs or the associated
packaging and delivery costs. Many of red90's clients now ask for
both DVDs and streamed video allowing customers to access it from
their Web site.
red90 have also cut down their production time by sending
rough edits of videos over broadband to the client. In the past, a
client would have to visit them in the edit suite to view and
discuss the video or have a rough edit posted to them which could
be time consuming. Now red90 can send video edits over the Internet
to clients across the world avoiding the client having to travel to
them or wait for the video edit to arrive in the post.
Utilising video conferencing, Martin and Stuart can hold
meetings with clients without having to leave their production
office. This incorporation of broadband into the production process
has reduced project time.
With the need for a state of the art production office, Martin
and Stuart decided to move from their old office located in Newport
to Pontypool. This decision was heavily influenced by the
increasing use of broadband to communicate and distribute work to
clients, and fewer meetings with clients taking place at their
offices. The use of email and teleconferencing has made setting up
a studio in a more remote location with good broadband connectivity
possible without damaging customer relationships.
red90 have an international client base and broadband has
helped speed up the process of client approval and therefore
project completion, as well as expanding their client base beyond
the UK and reducing the need to travel. Martin Phillips,
Director and Head of Production, red90, summarised the benefits of
broadband by saying:
"Without broadband, our client base would be
limited to British companies and our business could not function as
efficiently as it currently does. Not only has broadband saved us
time and money in terms of postage and travel, it has provided us
with extra sales revenue for clients requiring Internet streamed
videos along with DVDs "
EU and UK Consultations
Public
Media LiteracyTo cultivate and improve media literacy in the digital age,
the European Commission launches this EU-wide survey of best
practices, and will set out its findings and proposals in a
Communication in 2007. The questionnaire seeks the public's views
on media literacy and information about initiatives in commercial
communications, film and the online world.
Closes: 15 December 2006
Review
of the wholesale broadband access markets 2006/07Significant developments have taken place in the wholesale
broadband access markets since Ofcom concluded its previous review
in May 2004. Between May 2004 and October 2006, the total number of
broadband subscribers has increased from c.4 million to c.12
million.
At the same time, LLU has developed from a low volume niche
product to one that allows Communications Providers to bypass the
incumbent's wholesale offerings and to instead provide their own.
Increased competitive pressure, particularly from LLU, has resulted
in BT geographically de-averaging its wholesale broadband prices
and in providers offering retail prices and products that vary by
geography.
Ofcom has attempted to capture these developments in its
approach to reviewing the wholesale broadband access market and to
propose regulatory remedies that are appropriate to the prevailing
market conditions. This consultation document sets this approach
out in detail and Ofcom is keen to hear the views of all interested
parties.
Closes: 13 February 2007
Draft Annual Plan 2007/08
Closes: 20 February 2007
Award of available spectrum: 2500-2690 MHz, 2010-2025
MHz and 2290-2300 MHz
Closes: 9 March 2007
Self help TV relays and digital
switchover
The Home Office first introduced self helps relays in 1980, to
help small communities have access to analogue TV channels.
This consultation seeks to establish what interest exists in
providing digital self help relays following digital switchover and
also seeks views on the proposed licensing regime.
Closes: 1 January 2007
The future of FM and AM services and the alignment of
analogue and digital regulation
The Digital Radio Development Bureau (DRDB) forecasts that by
2010 half of all households will have DAB; digital radio via
television will be ubiquitous by 2012 and broadband Internet
take-up is growing rapidly allowing people to listen to streamed
radio services from all over the world.
Digital radio is taking an increasing share of radio listening
putting greater pressure on local analogue stations. These
and other challenges to the radio industry in this digital are the
subject of this consultation.
There is also the possibility of freeing up FM/AM spectrum for
other purposes.
Closes: 14 December 1006
Regulatory Round-up
Switching broadband provider
Ofcom has announced new rules intended to ensure that
customers are able to switch to a different broadband provider
quickly and easily. This follows a public consultation published in
August.
Ofcom's research reveals that while 83% of UK Internet users
who have switched provider found it easy to do so, a significant
minority have encountered problems.
Making switching easier
A Migration Authorisation Code (MAC) is a unique alphanumeric
reference that enables customers to switch broadband provider
smoothly and with minimal disruption
Without a MAC, customers can be left without broadband for
some time while the transfer is made. Previously, MACs formed part
of a voluntary code of practice supported by a number of broadband
providers. However, Ofcom is receiving an increasing number of
complaints from consumers who find it difficult to obtain a MAC
from their provider. Therefore, from 14 February 2007,
General Condition 22: Service Migrations will require broadband
providers to supply consumers with a MAC upon request and free of
charge.
Alternative sources of MAC codes
Some retail broadband providers have been unable to supply
their customers with MAC codes when they request them. This might
be because the wholesale provider that supplies the broadband
service refuses to hand over customer MACs until a contractual
dispute with the retail provider has been resolved.
The new rules will mean that all wholesale providers must
provide MAC codes to their customers – the retail broadband
providers - upon request, regardless of any dispute.
In other cases, consumers have been unable to contact their
provider to obtain a MAC code; when the retail provider has exited
the market, for example. To remedy this, Ofcom will continue to
work with industry to identify an alternative mechanism to release
MAC codes to consumers. It expects to consult on further proposals
to that effect next year.
Resolving broadband sign-up problems when moving house
More than half of all complaints made to Ofcom for any reason
between September 2005 and 2006 related to what is known as tag, or
marker, on the line. This refers to instances when consumers wish
to sign up to a new broadband service – after moving into a new
home, for example - but cannot because there is, or appears to be,
a pre-existing broadband connection already registered to that
telephone line in the name of a previous resident.
A more robust MAC process – as described above - will go some
way to relieving the problem. The new rules will also make it the
responsibility of all broadband providers to ensure that technical
and operational problems such as tag on line do not hinder
consumers' ability to switch.
Ofcom will continue to work with all broadband providers to
address the root causes of tag on line. BT has set up a telephone
helpdesk to support those with a marker on their line and will aim
to remove tags wherever possible, or offer consumers advice where
it is not able to remove the tag.
Unbundling Update
OTA Update for November 2006
The Office of the Telecommunications Adjudicator announced on
1 December 2006 that the number of unbundled lines in the UK
exceeded 1.1 million. Back in July 2004 the LLU industry, OTA
and BT jointly set a target for 1 million unbundled lines by the
end of 2006.
The OTA stated: "This is a major achievement for the LLUOs,
BT/Openreach, Ofcom and the OTA Team. Having passed this milestone,
continuing improvement and maintaining momentum is now the focus
for us all going forward. The Key issues are; the ongoing success
of the Service Improvement Plan; EMP stability and industry
adoption; and Migrations processes being fit for industrial use and
adopted by CPs."
The Telecommunications Adjudicator aims to facilitate swift
implementation of the processes necessary to enable competitors to
gain access to BT's local loop on an equivalent basis to that
enjoyed by BT's own businesses.
UK Unbundling League
|
Provider
|
Enabled
|
Source
|
|
Sky
|
632
|
|
|
C&W
|
626
|
|
|
O2 (Be)
|
399
|
|
|
The Carphone Warehouse
|
370
|
|
|
Orange
|
305
|
|
|
Tiscali
|
250
|
|
|
Homechoice
|
145
|
|
|
Pipex
|
51
|
|
|
Edge
|
21
|
|
|
Node4
|
4
|
|
|
Zen
|
4
|
|
Wales Unbundling League
|
Provider
|
Enabled
|
Source
|
|
Orange
|
12
|
|
|
C&W
|
9
|
|
|
Sky
|
6
|
|
|
Tiscali
|
4
|
|
Unbundling Targets and Pending
|
Provider
|
|
|
C&W
|
Target: 800 by 30/09/2006
|
|
The Carphone Warehouse (Talk Talk)
|
Pending: 1,045 (52 in Wales)
by 31/08/2006
|
|
O2 (Be)
|
Pending: 711 (23 in Wales)
by 31/12/2007
|
|
Pipex
|
Target: 100 by 31/12/2006
|
Market Data Analysis
Kingston Communications announced interim
results on 28 November showing that its broadband subscriber number
exceeds 140,000. This includes users of Eclipse Internet
which is available across the UK. Kingston states: "We have
begun taking wholesale unbundled local loop services from a third
party to help reduce our dependency on BT Wholesale as well as
reduce costs."
Orange owner France Telecom has announced
third quarter results which show it has grown its ADSL subscriber
numbers in the UK by almost 25 percent to 1.02 million.
Orange has 15 million active mobile phone users in the UK and
reports a strong growth in mobile broadband use: "Mobile Broadband
use, driven by new contract offers, rose sharply: at September 30,
2006 the Orange United Kingdom UMTS network had 728,000 customers,
up from 306,000 at December 31, 2005, with half of this growth
generated in the third quarter alone."
Tiscali announced third quarter results
showing that consolidation with Homechoice owner Video Networks
Limited (VNL) started in September. Tiscali now has 1.34
million ADSL users in the UK of which 263,000 are connected through
Tiscali's LLU network.
Tiscali expects its integration with VNL to be largely
concluded by December 2006 which will enable it to concentrate on
launching the Tiscali IPTV service in the new year.
Data sources:
Useful Links
Broadband Wales Programme
Visit the Broadband Wales Programme Web site for information
on the benefits that broadband can bring for you
www.wales.gov.uk/broadbandBroadband for Life
Other News and Events
RIBS "Not-spots" Registration Scheme
If you still can't get broadband after you have been informed
that your telephone exchange has been enabled, please register your
details at
www.bbwo.org.uk/not-spots
Details of when your exchange is due to be enabled can be
found at
The scheme is operated by BBWO on behalf of the Welsh Assembly
Government.
Please note every attempt is made to ensure figures published
in this newsletter are the most up to date and accurate figures
publicly available at time of going to press, however, exact
figures may vary.
Thank you for reading the
Broadband Bulletin from the Broadband Wales
Observatory (BBWO). This newsletter is published once a
month.
Researched by:
Edited by:
Rhys Gravell
Published by:
Broadband Wales
Observatory
eCommerce Innovation Centre
Cardiff University
Cardiff Business Technology Centre
Senghenydd Road
Cardiff CF24 4AY
Tel: 029 2064 7030
The Broadband Wales Observatory is managed by
the
eCommerce Innovation Centre
at Cardiff University on behalf of eWales at the Welsh
Assembly Government.