Are ISPs the problem or the solution to getting broader broadband?

We need fast broadband, and we need it everywhere. But is it harder to do with one company controlling a third of the market?

One of the most exciting things about growing a business in the 21st Century is that thanks to the Internet, you have the ability to reach an infinite audience. In the UK we're particularly good at it. We generate 8 per cent of our GDP, £120 billion, through the Internet.

But of course, to start a business on the Internet, you need have to have access to it first. That's why the Lords Communications Committee report into the Government's plans for Superfast Broadband has struck a chord with so many. Current Government plans are to install 25Mbps high speed broadband across 90 per cent of the UK and a minimum of 2Mbps broadband for everyone by 2015. They hope to achieve this through the Broadband Delivery UK (BDUK) Project. But the Committee's report argues that Government is too focussed on speed, and it needs to change its focus from a 'high-speed' network to a 'high-spec' network. A core part of the concern is the affect the project, and the way it has been run, will have on competition in broadband provision.

According to Ofcom's figures the market is currently split between four key players BT (29.3 per cent), Virgin Media (20.2 per cent), TalkTalk (18.5 per cent), Sky (17.9 per cent) and the rest split up between smaller providers (14.2 per cent). But there are concerns, both at home and from the European Commission, that the BDUK project will serve to exacerbate BT's dominance in the market. Currently only BT is the only provider that has successfully bid for regional funding as part of BDUK, with the nine other interested parties withdrawing due to concerns over costs and the complication involved in providing fibre connections.

The problem of providing ensuring competition in the broadband market is by no means easy, particularly with the historical position of BT. Many other countries across the world are coming face to face with the sheer cost required to invest in this technology, versus the need for competition. As suggested by the Lords report there are a number of changes that could be made to the BDUK project to improve this, including potential open access fibre-optic hubs and public money only being awarded should be dependent on installing fibre to a local level rather than to the cabinet. They also propose "fibre hubs", which would allow neighbourhoods who set up their own networks to retain control rather than being required to hand ownership to BT and could connect the BT exchanges at a set price.

Apart from changes to the BDUK project there are other measures that could be taken to encourage competition that do not involve additional funding to the BDUK project. Ofcom has done good work in getting BT to reduce the cost of wholesale broadband and allow other ISPs access to its local exchanges in areas where BT is the sole provider, and ideally the cost would be reduced further. The Government can also, in light of its goals to deliver a better broadband, reconsider its decision from 2010 to scrap the review into the fibre tax which disadvantages other providers who must pay per metre of "dark fibre" to be lit.

Providing good competition to allow consumer choice is not just important for levels of service, speed and reliability as there are a number of wider issues that mean competition is increasingly important. Running parallel to the discussion over investment in broadband infrastructure we have the net neutrality debate. After many months of discussion ISPs have recently signed up to a voluntary “Open Internet Code of Practice”, which commits to them to providing full and open internet access and not block access to legal services which are bandwidth heavy, such as iPlayer or 4OD in the name of traffic management.

Most of the ISPs operating in the UK have signed up, including the dominant provider BT. Unfortunately Virgin Media, the second largest provider have not, citing issues with the wording of the code. The implementation of a voluntary code of practice relies upon consumers having real choice in their broadband connection, and the option to leave their provider if they do not comply with the code. Were the BDUK project to endanger future prospects for increased competition this would undermine the provision of an open internet.

And increasingly ISPs are being asked to take on more and more issues. While we want them to focus on providing us the best provision ISPs are currently being asked to look into; enforcing the Digital Economy Act and policing Internet users through a system of reports and warning letters; cooperate with the Government consultation looking into implementing 'default on' blocks for adult content; cooperate with the Home Office plans as part of the Communications Data Bill; and all while trying to put into place a better network for their customers who pay them for reliable access and good speeds.

We need to ensure that the UK has good enough Internet infrastructure to support our ambitions and not only compete with Europe, but with the world. The Government needs to decide where ISPs priorities should lie and consider whether it truly wants a broadband network fit for the future.

Sara Kelly is the Policy and Development Manager for the Coalition for a Digital Economy.

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For 19 minutes, I thought I had won the lottery

The agonising minutes spent figuring out my mistake paired beautifully with hard, low wisdom tooth throbs.

Nineteen minutes ago, I was a millionaire. In my head, I’d bought a house and grillz that say “I’m fine now thanks”, in diamonds. I’d had my wisdom tooth (which I’ve been waiting months for the NHS to pull the hell out of my skull) removed privately. Drunk on sudden wealth, I’d considered emailing everyone who’s ever wronged me a picture of my arse. There I was, a rich woman wondering how to take a butt selfie. Life was magnificent.

Now I’m lying face-down on my bed. I’m wearing a grease-stained t-shirt and my room smells of cheese. I hear a “grrrrk” as my cat jumps onto the bed. He walks around on my back for a bit, then settles down, reinstating my place in the food chain: sub-cat. My phone rings. I fumble around for it with all the zeal of a slug with ME. Limply, I hold it to my ear.

“Hi,” I say.

“You haven’t won anything, have you” says my dad. It isn’t a question.

“I have not.”

“Ah. Never mind then eh?”

I make a sound that’s just pained vowels. It isn’t a groan. A groan is too human. This is pure animal.

“What? Stop mumbling, I can’t hear you.”

“I’m lying on my face,” I mumble.

“Well sit up then.”

“Can’t. The cat’s on my back.”

In my defence, the National Lottery website is confusing. Plus, I play the lottery once a year max. The chain of events which led me to believe, for nineteen otherworldly minutes, that I’d won £1 million in the EuroMillions can only be described as a Kafkaesque loop of ineptitude. It is both difficult and boring to explain. I bought a EuroMillions ticket, online, on a whim. Yeah, I suffer from whims. While checking the results, I took a couple of wrong turns that led me to a page that said, “you have winning matches in one draw”. Apparently something called a “millionaire maker code” had just won me a million quid.

A

Million

Quid.

I stared at the words and numbers for a solid minute. The lingering odour of the cheese omelette I’d just eaten was, all of a sudden, so much less tragic. I once slammed a finger in a door, and the pain was so intense that I nearly passed out. This, right now, was a fun version of that finger-in-door light-headedness. It was like being punched by good. Sure, there was a level on which I knew I’d made a mistake; that this could not be. People don’t just win £1 million. Well they do, but I don’t. It’s the sort of thing that happens to people called Pauline, from Wrexham. I am not Pauline from Wrexham. God I wish I was Pauline from Wrexham.

Even so, I started spending money in my head. Suddenly, London property was affordable. It’s incredible how quickly you can shrug off everyone else’s housing crisis woe, when you think you have £1m. No wonder rich people vote Conservative. I was imaginary rich for nineteen minutes (I know it was nineteen minutes because the National Lottery website kindly times how much of your life you’ve wasted on it) and turned at least 40 per cent evil.

But, in need of a second opinion on whether or not I was – evil or not - rich, I phoned my dad.

“This is going to sound weird,” I said, “but I think I’ve won £1 million.”

“You haven’t won £1 million,” he said. There was a decided lack of anything resembling excitement in his voice. It was like speaking to an accountant tired of explaining pyramid schemes to financial Don Quixotes.

“No!” I said, “I entered the EuroMillions and I checked my results and this thing has come up saying I’ve won something but it’s really confusing and…”

Saying it out loud (and my how articulately) clinched it: my enemies were not going to be looking at butt selfies any time soon. The agonising minutes spent figuring out my mistake paired beautifully with hard, low wisdom tooth throbs.

“Call me back in a few minutes,” I told my dad, halfway though the world’s saddest equation.

Now here I am, below a cat, trying to explain my stupidity and failing, due to stupidity.  

 

“If it’s any consolation,” my dad says, “I thought about it, and I’m pretty sure winning the lottery would’ve ruined your life.”

“No,” I say, cheese omelette-scented breath warming my face, “it would’ve made my life insanely good.”

I feel the cat purr. I can relate. For nineteen minutes, I was happy too. 

Eleanor Margolis is a freelance journalist, whose "Lez Miserable" column appears weekly on the New Statesman website.