Sean Williams - BT - BBWF 2011 Keynotes Day 2
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Transcript of Sean Williams - BT - BBWF 2011 Keynotes Day 2
BT’s Super-fast Broadband Programme
Presentation to the Broadband World Forum28th September 2011
Sean WilliamsGroup Director, Strategy, Policy and PortfolioBT Group plc
© British Telecommunications plc Slide 2
Introduction
Overview of BT’s superfast broadband (SFBB) programme in the UK
– What are we doing?
– Is it delivering on its promises?
– What do retail customers think of it?
– What do wholesale customers think of it?
– How far can we go in terms of SFBB coverage?
How will SFBB transform the bandwidth landscape in the UK?
How can we get SFBB out to rural areas?
What lessons have we learnt from our SFBB deployment?
© British Telecommunications plc Slide 3
BT is committed to succeeding in superfast broadband
Passing c.80,000 new premises per week1, over 5M passed, on course to pass 10M by 2012
Customer base rising fast
– More than 200,000 BT Infinity customers
The only SFBB deployment that makes proactive provision to wholesale customers a central part of the approach
– c.50 CPs selling or trialling services2
Potential to drive higher performance in SFBB by improving network capabilities
2/3 premises
passed by
end of
2015
Over 5m
premises
passed
currently
10m premises
passed by
2012
ADSL enabled
for c.99% of all
premises
Fibre roll out
£2.5bn investment to roll-out fibre to two-thirds of UK premises by 2015
– A radical transformation of the UK broadband network
– Among the fastest and largest commercial roll-outs in the world
Very positive marketing and pricing of the product at the retail level
– Fibre broadband has the same headline price as copper broadband
FTTC – Fibre To The Cabinet FTTP – Fibre To The Premise
1.5m premises
passed
summer
2010
1 Q4 and full-year results 2010/112 Q1 results 2011/12
© British Telecommunications plc Slide 4
Our deployment is a mix of FTTC and FTTP (and copper)
Fibre to the cabinet (FTTC)Up to 40Mbps downstreamUp to 15Mbps upstream
Fibre to the premise (FTTP)100Mbps+ downstream30Mbps+ upstream
Exchanges Homes/Businesses
Copper (ADSL2+)Up to 24Mbps downstreamUp to 2.5Mbps upstream
ADSL 2+90% UK coverage by
Spring 2013.
Large majority of our 2/3rd UK deployment.
Up to 80Mbps downstream in 2012.
The remainder of our 2/3rd UK deployment.1Gbps trials on-going.
Copper
CopperFibre
Fibre
Cabinet
SFBB deployment facts & figures
• Laying 50,000km of fibre• Enabling over 1000 exchange areas• 37,000 new cabinets; 200,000 new DPs
© British Telecommunications plc Slide 5
BT has driven awareness of superfast broadband through strong retail marketing and local engagement
The Race to Infinity campaign gave people up and down the country the chance to vote to bring fibre to their area
Over 365k votes cast over 3 months
Power of local, community-based marketing demonstrated
Each of the winning communities will be upgraded by early 2012
The “Race to Infinity” generated a consumer ‘buzz’ across the UK
BT Infinity is establishing itself as a consumer and a business brand
Copper-based broadband
Unlimited broadband & calls
Up to 20Mb download speed
Unlimited usage; anytime calls
BT Infinity superfast broadband
Unlimited broadband & calls
Up to 40Mb download speed
Unlimited usage; anytime calls
£28
Monthly cost
£28
© British Telecommunications plc Slide 6
Dat
a ra
te(M
bp
s)
Our technology has delivered on its promises and customers have reacted well to the service
The technology is delivering the bandwidth... ...that customers need for emerging applications
50% of eligible customers take SFBB on joining BT for broadband
58% extremely or very satisfied. Over 80% at least satisfied
80% see confirmed improvement in streaming/downloading content
Customers like the service
More consistent speed performance than copper broadband
Technology performance
© British Telecommunications plc Slide 7
Customers are very positive about superfast broadband
“Superfast broadband really is changing the way our family all work, live and play - already I can’t imagine how we managed without it.”The Trotter family, St Day, Cornwall
“Superfast broadband is proving to be a terrific advantage to our business... We are particularly interested in cloud computing, through which we will be able to take advantage of the kinds of applications previously only available to big business.”Steve Brown, partner, Advertees, a fashion and promotional screen-printing company, Blackwater, Cornwall
“I am utterly blown away by the technology! The speeds are breathtaking! ... Superfast broadband is changing the way we live, opening new doors, enriching our lives and saving us time and money”Les Goldman, near the village of Luxulyan, Cornwall
Quotes and images courtesy of the Superfast Cornwall programme [www.superfastcornwall.org]
“The speeds are staggering... a real game-changer... I am able to work more productively with superfast broadband and also work remotely, because the connection is so stable ... Superfast really does open up new ways of working.”Jonathan Davies, director, LinedUp, a creative digital studio, Camborne, Cornwall
Superfast Cornwall is a programme funded by the EU, BT and Cornwall Council, and managed by Cornwall Development Company, a local authority company controlled by Cornwall Council
© British Telecommunications plc Slide 8
We have built the network for open access, to support competition and consumer choice
© British Telecommunications plc Slide 9
95% MAP
Illustrative Footprint – Up to 90%
2/3 Footprint
Final Third
Intervention
We believe that public funding and additional private investment could bring SFBB to 90% of the UK
£830m has been pledged by the UK government: £530m in the life-time of this parliament; plus a further £300m in the subsequent parliament; administered by BDUK
The government’s aim is get to 90% coverage of every local administrative area
Central funding will lever in other public finance and private sector investment
BT is supporting BDUK to deliver the government’s goal
– Delivering publicly-funded deployments in Cornwall and Northern Ireland
– Major current bids in Wales and elsewhere– Extensive support for the BDUK processes– Provision of sub-loop unbundling and passive infrastructure
access– Provision of access network data to public bodies and other
bidders– Development of products for policy priorities –
e.g. community broadband solutions
© British Telecommunications plc Slide 10
Superfast broadband will transform the UK bandwidth landscape
Today, more than 99% of UK homes have access to copper broadband, and 70% up to 20Mbps
SFBB could get to 90% of UK homes and businesses
– Including potential public funding of up to £530m, possibly £300m more
– Secured by multiple fibre investors
– Also including further local authority, regional government and EU funding
Changes to the access network frequency plan will allow us to deliver up to 80Mbps on FTTC
We are testing vectoring / other technologies which has the potential to offer over 100Mbps on FTTC
Broadband
Superfast Broadband
20Mbps
90%
Note: * All UK, not including cable, including other wholesale fibre investors
UK broadband transformation*
© British Telecommunications plc Slide 11
We are evaluating several solutions to deal with slow speed spots
Many of the slowest lines could benefit from other broadband solutions to achieve near universal service coverage
BET (Broadband Extension Technology)
Wireless, for example we are considering solutions based on:
– 4G LTE (BT/Everything Everywhere trial)
– TV whitespace (BT trials in Cambridge and the Scottish Isle of Bute)
– Fixed wireless, e.g. BT iNet
– Satellite
67%
Two-thirds
Footprint
70% 80% 90%
Digital £0.8bn public funding + matching investment USC
Exchange
Cabinet
EndCustomer
OpenreachFTTP
Openreach BET
OpenreachBET
Communitysolutions
Satellite
Fixed Wireless
CommunityFibre
EndCustomer
OpenreachEAD
4G LTEBroadband
TV White Space
OpenreachFTTC
EndCustomer
Mobile Network
USC – Universal Service CommitmentEAD – Ethernet Access DirectLTE – Long-Term Evolution
BET – Broadband Extension Technology
CopperFibre
Community
solutions
© British Telecommunications plc Slide 12
Superfast broadband has taught us many important lessons
Complex supply chain needs to be carefully aligned to achieve rapid scale deployment
Volume is critical to the business case, so keen pricing and scale marketing opportunities in the retail market is important, and wholesale customers
FTTC lessons learnt FTTP lessons learnt
Plan and Build process for FTTP is much more complex than FTTC
New tools, techniques and processes needed for many of our engineers
Issues around blockage on underground duct final drops
Give focus to the design of the provisioning process for customers
Engagement with local planning authorities for speedy deployment
Simplified cabinet build process was key for volume ramp-up
Capacity of power supply companies is on critical path
Customer appointing and reappointing processes are critical
Managing customer speed and throughput experience is essential
© British Telecommunications plc Slide 13
Summary
£2.5Bn commitment for commercial fibre roll-out based on a mixed economy approach
Delivering on our promises
– Deploying at scale and pace (one of the fastest roll-outs globally)
– On track to pass 10m premises by 2012 and 2/3 of UK premises by the end of 2015
Constantly evolving our plans both commercially and technically to meet the needs of the market and responding to UK Government
Customer reaction? They love it!
Clear evolution paths (for FTTC and FTTP) identified which are being actively pursued
Innovative partnerships can enable us to reach the final third
– Success stories in Cornwall and Northern Ireland and more to come
Our model is based on open access, competition and customer choice
– Wholesale customers are an important contributor to our business case
© British Telecommunications plc Slide 14
Thank you