Openreach slashes price charged for FTTP on small new developments
We reported on the situation for new build premises back on 12th October, revealing that for the first time we are seeing over half of new homes benefiting from full fibre. Fast forward two weeks and we now have Openreach saying that for developments of under 30 premises it will be reducing the price it charges developers by 75% to encourage more of them to elect for a full fibre deployment rather than a slow ADSL/ADSL2+ service or VDSL2.
Our existing offer already provides huge benefits to both buyers and builders alike, but we wanted to go further and make sure everybody moving into a new build property can enjoy the advantages of Fibre-to-the-Premises broadband.
The UK’s is a world leader in digital infrastructure and services today, but as the digital revolution continues at an ever increasing pace, and our demand for data grows, we need to make sure this country stays ahead of the curve by building fast, reliable networks that cater for all the activities we’ll want to do online in the decades ahead.
Our new offer provides a low cost option to housebuilders and we hope it will help encourage the adoption of this future-proof technology across smaller developments so that no-one’s left behind.
We fully support the government’s intention to make full fibre broadband mandatory on all new builds and we’re working closely with DCMS (Dept for Digital, Culture, Media & Sport) and housebuilders on how best to deliver thisKim Mears, MD Strategic Infrastructure Development
The reduction will kick in for new developments registered from 1st November and does not affect larger 30 plus developments where FTTP was offered for free to developers when registering with Openreach.
Openreach estimates that there is potential for 40,000 premises across 5,000 developments each year that could benefit from installing full fibre as default. For those moving into a fibre only development there are Fibre Voice Access options for those that don't actually want broadband.
The Openreach press release also shares some stats on the success of the free FTTP for larger developments, where for more than 80% of the plots registered with Openreach they are making full fibre available. For those wondering why our stats are not showing 80% FTTP or better, the reason is that developers need to register with Openreach and there is a long timeline associated with new developments so a good number of those plots being moved into in 2018 may actually have been registered with Openreach before the increased emphasis on FTTP in 2016.
Given the change in the FTTP footprint for new builds in the last quarter we look forward to seeing how things change when we get the next new batch of postcodes due in late November/early December 2018. It will take around another month to sift through and figure out what services all the postcodes have and don't have so if keen to see what has changed expect us to publish a summary in January 2019. There will be an interim update at the end of November, since we do spot things like a postcode introduced in 2017 now showing FTTP availability and people moving in i.e. the absolute figures are changing weekly.
There is competition for delivery FTTP to new build homes with providers like Virgin Media, Hyperoptic, GTC, OFNL all competing and making various offers to developers.