Broadband News

Will trickle down economics work for broadband?

Gigabit broadband is seen as such a must have now that we presume back in the 1970's and 1980's when a local authority switched stationery supplier this was also big news?

The Scottish Government has announced Gigabit connectivity for 57 public buildings in Aberdeen as part of a larger regional regeneration programme. It should be clear that with the £2 million cost spread between 57 buildings this is not your normal full fibre that you would expect as a home owner or local cafe (other small businesses too).

Upgrading 57 buildings in Aberdeen to Gigabit does not turn a city in a Gigabit one and it is still small fry compared to the measly 420 premises (residential and business) that have full fibre via the Openreach GEA-FTTP product set already. The key part to the picture is that Aberdeen is a CityFibre Gigabit city and it seems likely the £2 million spending announced today will mean the local council will become an anchor tennant on that network. 

The hope with the CityFibre roll-outs is that once one or more large anchor tennants are connected and a critcal mass of business customers that roll-outs will then take place to residential areas, like the trials in York and this news today means the recent Vodadone FTTH announcement might be relevant to Aberdeen.

To close it is all too often overlooked but full fibre business connectivity is generally available anywhere in the UK so long as the business has deep enough pockets which if in a city centre might be under £1,000 but could easily be in the £5,000 and more bracket for installation. The monthly costs for a full business connection are also higher snce when you buy a Gigabit of business connectivity that is not shared, or put another way you are paying for what would otherwise be shared with 400 to 1,200 residential customers.

Comments

Trickle down economics doesn't work for economics, so there is no reason to suggest it would work for broadband lol.

  • andrum992
  • 11 months ago

On the last paragraph, on "full fibre business connectivity"...

The availability of gigabit isn't restricted to city centres, or even cities. Certainly not just the "gigabit cities" of CityFibre's PR.

I just checked for here, a suburban location in a small English provincial town, and find I can get a gigabit fibre (with gigabit speed) installed for no up-front cost, and a monthly fee ranging up from £600pm.

  • WWWombat
  • 11 months ago

I think if I was to write Gigabit is available in small towns for no up front fee and £600/m that there would be a bigger avalanche of those who cannot get that price than those that can.

Now if a provider wants to state that is the case and can back it up, then that's a different matter.

  • andrew
  • thinkbroadband staff
  • 11 months ago

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