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story category British Telecom Losing Its Fiber Phobia?
Who wants a Ferrari when a Ford will do? Plenty of people.
10:51AM Friday Nov 06 2009 by Karl Bode
tags: Fiber · business · world
In 2007, UK telco British Telecom called running fiber to the home "premature," instead opting to milk copper for a little longer. In 2008, they announced a widely lauded plan to invest in "fiber" (to the node), though the specifics weren't particularly impressive when you looked a little closer, and the "fiber to the press release" announcement was more about getting a regulatory back rub from the British Government. According to British Telecom's CEO, DSL is like driving a Ford and really -- who isn't perfectly happy driving a Ford?

British Telecom has shown all the telltale signs of the spoiled monopoly broadband providers you're familiar with, from whining when people actually use their product, to throttling 8Mbps connections to 896kbps without bothering to tell anyone. Like most incumbents with investors, they'd prefer to pocket significant profits rather than invest that money back into the network -- even if the move would keep them relevant for decades. Luckily, it seems that British Telecom may finally be getting over their fiber phobia as fiber prices drop:
BT has allocated approximately $2.47 billion for fiber-to-home deployments, but finds the lower costs will allow it to build far more than it had expected, using the same budget. Analysts at CSMG, for example, say that FTTH “pass and connect” costs are declining between six percent a year to 10 percent a year, in the U.S. market.
Apparently, that Ferrari is starting to look more reasonable. Still, the vast majority of British Telecom's customers are going to be on either vanilla DSL or VDSL for much of the decade. Just like in the States, BT doesn't want to fund deployment to more rural markets, leaving everybody wondering how exactly to fill in the gaps.

Related:
  1. Wednesday Evening Links
  2. Friday Evening Links
  3. BT Scales Back 'Fiber To The Press Release' Plans
  4. ISPs Shouldn't Pretend To Be Content Companies
  5. Wednesday Evening Links
  6. Australia Announces $31 Billion Fiber Network
  7. BT CEO On FTTH: 'Most People Are Happy With A Ford'
  8. Dig Your Own Fiber Trench, Save $400
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast


1 edit

Better analogy

»British Telecom Losing Its Fiber Phobia?
According to British Telecom's CEO, DSL is like driving a Ford and really -- who isn't perfectly happy driving a Ford?

Apparently, that Ferrari is starting to look more reasonable.
BT's CEO should have used a Jaguar(made in the UK) in his example instead of a Ferrari.

milnoc

join:2001-03-05
H2Z
·TekSavvy Solutions..

Re: Better analogy

There's also a big difference between, say, a Ford Model T and a Ford Focus RS.

Funny thing. Ford used to own Jaguar. Now it's owned by... Tata Motors of India!

Madness
A flea circus at a dog show.

join:2000-01-05
Quincy, MA

Re: Better analogy

What if it happened to be a Ford GT?

milnoc

join:2001-03-05
H2Z

Re: Better analogy

Then the Internet would break down for no explainable reason every couple of weeks.

(This is based on Jeremy Clarkson's personal experience.)
Selenia

join:2006-09-22
Pittsfield, MA
·Verizon Online DSL
·RoadRunner Cable

said by TKJunkMail See Profile :

»British Telecom Losing Its Fiber Phobia?
According to British Telecom's CEO, DSL is like driving a Ford and really -- who isn't perfectly happy driving a Ford?

Apparently, that Ferrari is starting to look more reasonable.
BT's CEO should have used a Jaguar(made in the UK) in his example instead of a Ferrari.
And at least Mercedes-Benz instead of Ford. Mercedes starts very cheap in the EU and at least the Benz is German, instead of American(thus supporting the EU).

oh_really

@co.uk

Back to the old days?

Are we returning to the 80s where BT wanted to fibre the country up, but Mrs. Thatcher, having just given those cable franchises out, stopped them? (the result being that great swathes of the country can't get cable).

As for "British Telecom has shown all the telltale signs of the spoiled monopoly broadband providers you're familiar with", at least they don't shape their wholesale products like a certain Canadian monopolist. Shame that OFCOM still insists on high BTw wholesale costs to make LLU look good. Fine for those blessed with it, not so fine for those of us who will never get it.
lovswr

join:2001-09-15
Stockbridge, GA

Just because

Actually our name is now officially just BT
--
lovswr = good hivswr = bad
EPS

join:2008-02-13
Hingham, MA

Re: Just because

So that makes you like at&t then, that doesn't really stand for anything anymore either.
Forums » British Telecom Losing Its Fiber Phobia?


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