Nexfibre Extend FTTP Broadband to 15k Premises in High Wycombe and Marlow

Network operator nexfibre, which shares some of their parentage with UK broadband ISP partner Virgin Media (O2), has today announced that they expect to cover 15,000 premises in the neighbouring Buckinghamshire (England) towns of High Wycombe and Marlow via their new wholesale accessible 2Gbps Fibre-to-the-Premises (FTTP) network.

The deployments reflect somewhat of an extension for Virgin Media, which already covers a sizeable amount of both locations. In addition, the towns also have some sizeable but patchy FTTP coverage via a mix of different operators, such as Openreach, Swish Fibre (All Points Fibre), OFNL, Hyperoptic, CityFibre, Trooli and others.

NOTE: Virgin Media is the only ISP on nexfibre’s network via an “exclusive partnership” (here), but they’re planning to add more providers in the future (here). Virgin’s own network will shortly also open up to wholesale via NetCo (here).

Nexfibre has already covered over 1 million premises across the UK with their new full fibre network, and they’re currently in the process of investing another £1bn during 2024, which should enable them to cover an additional 1 million UK premises (on top of their existing footprint).

Just for some context. Telefónica, Liberty Global and InfraVia Capital Partners originally setup the new £4.5bn nexfibre joint venture in 2022 (here), which aims to deploy an open access fibre network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT currently served by Virgin Media’s network of 16m+ premises. The funding reflects £3.3bn of fully underwritten financing and up to £1.4bn in equity commitments.

Nvdia and Ooredoo launch data centre deal 

News 

The partnership is Nvidia’s first large-scale entry to the Middle Eastern market 

Nvidia and Ooredoo have partnered in a deal to deploy “thousands” of Nvidia’s GPUs (graphic processing units) in 26 data centres in five countries (Qatar, Kuwait, Oman, Algeria, Tunisia, and the Maldives). 

The value of the deal has not been disclosed, but it marks Nvidia’s first large-scale entry into the Middle East. 

The Qatari operator has become an Nvidia Cloud Partner, meaning that is “developing an AI-ready platform powered by NVIDIA’s full-stack innovation across systems, software, and services.” It also means that Ooredoo will be the first company in the MENA region whose clients will have access Nvidia’s AI and graphics processing technology, said the companies. 

“Implementing NVIDIA’s full-stack platform for accelerated computing and generative AI, Ooredoo is equipped to be at the forefront of the AI revolution in MENA, driving digitalisation and innovation as the leading digital infrastructure provider in the region. Working with NVIDIA, we aim to meet the significantly growing demand for accelerated computing infrastructure to support advanced AI models,” said Aziz Aluthman Fakhroo, Group CEO at Ooredoo in the announcement’s press release. 

“As a trusted regional telecommunications provider, Ooredoo Group combines deep enterprise and consumer relationships with the ability to invest in and deploy AI infrastructure and services,” Ronnie Vasishta, Senior Vice President of Telecom, NVIDIA. 

“By providing NVIDIA’s full-stack AI computing platform to customers, Ooredoo will help make it easier for their customers to deploy generative AI applications and services,” he continued. 

Recently, The US has imposed restrictions on the sale of advanced semiconductors to certain Middle Eastern nations, motivated by concerns that these high-tech chips could end up in the hands of China. These chips, which are critical for advanced computing and military applications, have become a focal point in the technological and geopolitical rivalry between the US and China. 

This deal, however, is compliant with the latest US impositions. It is A100 and H100 chips that are the focus of the restrictions, not GPUs. 

“As a telecom operator, dealing with very stringent regulation is business as usual. We are used to dealing with regulators and government authorities, whether they’re local or international,” said Fakhroo when speaking to CNBC. 

“We are working very closely with the different regulators and with Nvidia to see all the required approvals and to provide all the guarantees required,” he continued. 

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Also in the news:
Telefónica and Nokia sign agreement to boost adoption of network APIs
Orange mulls selling its stake in Mauritius Telecom
Ericsson Mobility Report: 5G driving change in service providers’ FWA strategies

Rural UK ISP Wessex Internet Wins at National Countryside Alliance Awards

After winning the Rural Enterprise category for the South West region of the 2024 Countryside Alliance Awards earlier this year (here), alternative rural broadband provider Wessex Internet has today announced that they’ve just won the same category at the national awards too.

The Countryside Alliance Awards, which are now in their 17th year, exist to help recognise businesses that go the extra mile within their communities, such as by supporting the local economy and championing local goods and services. Wessex Internet was initially nominated anonymously by their customers, before later topping a public vote to win the earlier award in the South West. The national award was then chosen by a panel of judges.

NOTE: Wessex Internet is backed by majority shareholder abrdn and in late 2023 secured £35m of additional funding, including a Senior Debt Facility from Triodos Bank (here). The operator is deploying a full fibre (FTTP) gigabit broadband network across rural parts of Dorset, Wiltshire, Hampshire and Somerset in England.

The operator’s existing network footprint is currently said to cover “tens of thousands of homes” (some of this may include their old fixed wireless network too), while their business plan targets an “additional” 150,000 premises by 2027 through a combination of subsidised and unsubsidised capital investment. The ISP has also secured four Project Gigabit contracts from the UK Government to help connect 36,000 premises to their FTTP network.

Prices for their full fibre packages start at £29 per month for a 100Mbps (15Mbps upload) tier on a 12-month term, but this only comes with a meagre 100GB data allowance (£44 for unlimited), and you’ll have to pay £49 (one-off) for activation. By comparison, their top unlimited usage plan will give 900Mbps (450Mbps upload) for £79 per month, which is fairly expensive by today’s standards, albeit still good if nobody else can supply FTTP.

Hector Gibson Fleming, CEO at Wessex Internet, said:

“I’m absolutely over the moon that we have been recognised as Rural Enterprise champion at the 2024 Countryside Alliance Awards. This is a huge testament to the history of the business, the hard work of all of our people, and because we have stayed true to our values since forming as a small company to help our neighbours to now serving rural communities across Dorset, Somerset, Wiltshire and Hampshire.

It was particularly heartening for the judges to recognise not only the impact we make directly on the rural economy as a growing company and local employer, but more widely that the ultrafast broadband we provide enables other rural businesses to thrive and allows people living in the countryside to enjoy a higher quality of life.

Whether by enabling remote and hybrid working for professionals, keeping businesses connected to their customers, helping families to keep in touch with loved ones, or simply enabling people to enjoy the range of entertainment and essential services available online, we are determined to bridge the digital divide.”

The event itself was held at the House of Lords in London yesterday (Tuesday 25 June).

Isle of Wight ISP WightFibre Grows Broadband Customers to 21,000

Network operator and broadband ISP WightFibre, which is building a gigabit speed Fibre-to-the-Premises (FTTP) network across the Isle of Wight – just off the South Coast of Hampshire (England), has today revealed that they’ve managed to grow their take-up to 21,000 customers (30% market share).

The operator has already spent over £80m (Dec 2023) – rising to £110m by 2030 – to cover around 80% of the island (70,000 premises) with their new full fibre network (i.e. the ‘Gigabit Island‘ project), which should increase to 86% (74k) of the island by the end of 2024, then 90% by the end of 2025 and 98% by 2027 (c.82,000 premises).

NOTE: Infracapital-backed WightFibre is running a bit behind schedule and previously aimed to cover c.78,000 premises (96%) by the end of 2023. But this is the reality of building FTTP networks and shouldn’t distract from the otherwise excellent progress that continues to be made.

The Government’s (Building Digital UK) Gigabit Broadband Voucher Scheme (GBVS) has also helped to fuel some of their progress in the hardest to reach areas, with over £3.1m in vouchers claimed to date. We should add that WightFibre’s network is roughly 85% built in their own underground ducting, with less than 15% using Openreach’s existing cable ducts and poles (PIA).

John Irvine, CEO of WightFibre, said:

“Our growing customer base and unwavering loyalty speak volumes. We’re not just a provider, we’re rapidly becoming woven into the very fabric of the Isle of Wight. WightFibre’s secret sauce? Localness. It’s what sets us apart, allowing us to deliver exceptional service at competitive prices.”

Andy Matthews, Head of Greenfield at Infracapital, said:

“As WightFibre nears its completion on the Island, we are very pleased with the progress. This is a real success story and the connectivity will bring social inclusion, jobs and many wider benefits to its communities”.

The news represents good progress, even if it is taking a bit longer than originally expected to build, and we’d expect their market share to increase in the future. The main challenge to this will be coming from Openreach (BT), which has already invested £4.5m to cover 15,000 premises across the Isle of Wight (here) and is expected to reach around 45,000 premises by 2026.

Otherwise, WightFibre’s packages start at £28.95 per month for a 150Mbps (symmetric) package, rising to £41.00 for 900Mbps. A social tariff of £19.95 for 100Mbps is available to customers in receipt of means tested benefits, and speeds of 10Gbps are available to business customers.

Ericsson Mobility Report: 5G driving change in service providers’ FWA strategies

Press Release

5G enabling growing numbers of FWA service providers to offer speed-based tariff plans
5G subscriptions forecast close to 5.6 billion by the end of 2029
Mobile data traffic expected to grow by 20 percent annually through the end of 2029

Fixed Wireless Access (FWA) continues to grow in strength as a 5G use case for communications service providers (CSPs) globally with a sharp increase over the past year in the number of CSPs offering the service. The details, alongside Ericsson’s latest mobile industry forecasts, regional breakdowns and customer case studies, feature in the June 2024 Ericsson (NASDAQ: ERIC) Mobility Report.

Of the CSPs sampled for the Ericsson study (310 globally), 241 offered FWA services as of April 2024. Of these, 128 – about 53 percent – included a 5G FWA offering. This is a twelve-point increase on the corresponding period in 2023 – a growth of 29 percent.

The speed, data handling and low latency capabilities of 5G FWA also increase the attractiveness of speed-based FWA tariff plans to CSPs – with downlink and uplink data parameters – similar to cable or fiber offerings.

This has helped to drive an almost 50 percent growth in the number of service providers offering 5G FWA speed-based tariffs in the past year – with 40 percent of all FWA CSPs now doing so. FWA is currently second only to enhanced Mobile Broadband (eMBB) as a 5G use case.

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: ”The June 2024 Ericsson Mobility Report shows continued strong uptake of 5G subscriptions. Enhanced Mobile Broadband and Fixed Wireless Access are the leading use cases, with signs that 5G capabilities are influencing service providers’ Fixed Wireless Access offerings. The report also highlights the need for increased deployment of 5G Standalone technology to fully realize the potential of 5G.”

About 300 CSPs globally now offer 5G services, of which about 50 have launched 5G Standalone (5G SA).

On subscriptions, 5G continues to grow in all regions. About 160 million 5G subscriptions were added globally in the first three months of 2024 – bringing the total to more than 1.7 billion. Almost 600 million new subscriptions are expected in 2024 as a whole.

Researchers estimate that 5G subscriptions will be close to 5.6 billion by the end of 2029 – with global 5G population coverage beyond mainland China set to double from 40 percent at the end of 2023 to 80 percent by the end of 2029.

5G is expected to account for about 60 percent of all mobile subscriptions by the end of 2029.

Regionally, North America is forecast to have the highest penetration by the end of 2029, with 90 percent (or 430 million) of subscriptions expected to be 5G.

In India, 5G subscriptions are expected to grow from 119 million at the end of 2023 (about ten percent of all mobile subscriptions in the country) to about 840 million (65 percent of all subscriptions) by the end of 2029.

On user experience, statistics from a leading service provider reveal 97 percent of all user activities on 5G mid-band achieved a time-to-content of less than 1.5 seconds, compared to 67 percent on 5G low-band and 38 percent on 4G (all bands).

5G mid-band population coverage outside of mainland China has reached 35 percent. North America and India have made rapid deployments, topping 85 and 90 percent mid-band coverage respectively.

Year-on-year mobile network data traffic has been adjusted downwards by Ericsson Mobility Report researchers compared to the November 2023 report. This is due to changes in the underlying data, such as lower numbers reported by regulators and service providers in populous markets for the second half of 2023.

Mobile network data traffic grew 25 percent year-on-year between the end of March 2023 and the end of March 2024, driven primarily by subscriber migration to later generations and data-intense services, such as video.

Mobile data traffic is forecast to grow with a compound annual growth rate of about 20 percent through the end of 2029. About a quarter of all mobile network data was handled by 5G by the end of 2023. This is forecast to grow to about 75 percent by the end of 2029.

The 40-page June 2024 Ericsson Mobility report includes four case study articles:

How the NorthStar 5G network inspires innovation (with Telia and AstaZero, Sweden. About autonomous vehicle connectivity.)
Taking 5G connectivity underground (with Rogers, Canada. About 5G subway connectivity in Toronto.)
Enhancing customer experiences with 5G (with Bharti Airtel, India. About Airtel’s 5G strategic priorities and actions.)
Building a high-performing programmable network (With AT&T, USA. About AT&T’s programmable network ambitions)

 

Ericsson will host an Ericsson Mobility Report webinar at 9.00 (CEST) and at 18.00 (CEST) on Wednesday, June 26. To join please register via this link.

Read the full June 2024 Ericsson Mobility Report via this link.

Based on unique Ericsson and partner network insights, the Ericsson Mobility Report has been the key industry reference for network data, performance, statistics, and forecasts since its launch in 2011.

UK ISP Association Sets Out Telecoms Priorities for Next Government

The Internet Services Providers’ Association (ISPA), which is a trade body that represents UK broadband ISPs and related comms providers, has today set out the key strategic priorities and actionable policies that it thinks the next UK Government will need to focus on in order to continue the work of “transforming the nation’s digital infrastructure”.

Unless you’ve been living under a particularly large rock, or in an entirely different country, then you probably already know that the United Kingdom is about to go through a General Election on 4th July 2024. As things stand, the polls appear to be indicating that a change of Government is likely to be the outcome, which could naturally have an impact upon policies and approaches to digital infrastructure.

NOTE: See our telecoms focused summaries of the 2024 manifestos from the Conservatives (here), Labour (here), Liberal Democrats (here), SNP (here) and Plaid Cymru (here). We haven’t yet covered the Green Party, Sinn Fein or Reform UK as they didn’t respond to our emails and their manifestos made no mention of broadband or mobile.

The looming election has already seen various internet providers and related organisations setting out what they think the next government, whatever form it may take, should be focusing upon. For example, BT’s CEO has called for improvements to planning policy (here) and Mobile UK, which represents mobile operators (Three UK, Vodafone, O2 and EE), has echoed some similar points (here).

Today it’s the turn of the ISPA and their 2024 policy roadmap – ‘Delivering Digital Britain‘, which sets out three of the key areas that they think the next government should focus on. Once again planning and related measures, like flexi permits, seem to be top of the list.

The UK ISPAs 3 Policy Priorities

➤ Recognise telecoms infrastructure rollout as a cross-governmental priority.

Fixed, mobile and wireless connectivity rollout is strategically important to digitisation and long-term economic growth, yet too oen progress is impeded by a lack of coordination between Government departments, with misaligned priorities across DSIT, DfT and DLUHC.

The next Government must integrate fixed and mobile rollout into cross-governmental policy by developing a clear and ambitious overarching strategy for the sector that brings together network build, skills, investment, take up, regulation and services, led by a suitably senior digital minister within DSIT, with a key focus on policy development and rapid delivery.

➤ Provide an immediate speed boost to rollout by fully embracing flexi permits and cancelling plans for street works charging.

Streetworks remain a key barrier to fixed and mobile connectivity rollout. Despite being widely supported by the sector, flexi permits – designated areas rather than individual roads can be combined into one permit for streetworks – have so far only been rolled out on a limited trial basis. Initial trials have shown the huge potential for reducing administrative burdens and disruption for communities.

The implementation of flexi permits would see considerably faster rollout with less disruption for local residents, and substantial carbon saving in the deployment of gigabit broadband. Government should urgently adopt this ready-made solution by moving to national trials or full adoption, alongside cancelling plans to progress the Fines and Lane Rental Surplus Funds consultation, which will only impede efforts to connect the final 30%.

➤ Commit to ensuring an efficient and proven infrastructure planning framework.

Around one third of the UK still needs to be upgraded, mostly in harder to connect areas where government funding will play a bigger role. The new Government should commit to a supportive planning framework that makes rollout faster and more efficient, removing rather than adding barriers.

This includes extending permitted development rights for all broadband infrastructure, including containerised exchanges. These, along with cabinets and poles, are all crucial building blocks of the success of fibre rollout in the UK. The sector has formed a working group to address localised public concerns in relation to the siting of new infrastructure, but it’s vital that existing permitted developments rights are strengthened and maintained in order to ensure that public and private funded rollout can continue at pace.

In addition, the government should use the breathing room offered by the election and consult with all relevant sectors before reintroducing plans to put the National Underground Asset Register (NUAR) on a statutory footing to ensure that NUAR is fit for purpose, proportionate and can fully deliver on expectations.

The sector also needs urgent confirmation from the government that regulations surrounding telegraph pole coating in England and Wales are aligned with Northern Ireland and the European Union, in order to provide greater supply chain certainty for the sector’s suppliers operating across all three areas.

Steve Leighton, Chair of the ISPA, said:

“We are excited to unveil ‘Delivering Digital Britain,’ our 2024 roadmap which outlines crucial steps for the next government to ensure that our members can continue to deliver the infrastructure and services that will help to unlock digital opportunities and drive economic growth across the country.”

The industry naturally wants to see anything that will make the job of deploying new broadband and mobile networks easier and cheaper, which is something that many consumers could also get behind. Similarly, some changes, like flexi-permits, seem likely to be less contentious than others, such as anything that might soften planning a bit too much.

The last point above is key because over the past couple of years there’s been a strong movement against the deployment of new poles for broadband. At the same time, mobile networks operators have long struggled with similar opposition to new mast sites. The issues around new poles have already grown to become somewhat of a political issue (here and here), which has seen a good number of cross-party MPs echo related complaints and the government move to propose greater oversight / clearer guidance.

Suffice to say that the next government probably won’t have as much political freedom to make life too much easier on the planning front. But at the same time, if they go in the opposite direction and impose new restrictions, then that could risk seriously damaging the current coverage targets for gigabit-capable broadband and 4G/5G mobile services – this might end up disproportionately impacting those in the hardest to reach (rural) areas.

Oxfordshire UK’s GigaHubs Full Fibre Build Connects 180 Sites

The Oxfordshire County Council (OCC) and Neos Networks have revealed that their ongoing £7.25m “GigaHubs” project has now connected 180 public sector sites (schools, hospitals etc.) to a new gigabit-capable full fibre broadband network. But the work won’t complete until they reach the contracted 193 sites, later this year.

Neos Networks hold the contract for this, but they’re also partly acting as an aggregator, bringing together several connectivity suppliers — including Openreach, Virgin Media (Business) and alternative network ISP Gigaclear — to help build, manage and operate the new infrastructure. Once complete, it is expected to have rolled out over 1,500 km of new fibre, laying the foundations for a “smart county“.

The project, which is part of the GigaHubs (formerly Local Full Fibre Networks) scheme under the UK Government’s £5bn Project Gigabit programme, first began in 2021 (here) and has so far achieved most of its delivery milestones. Funding for the 20-year deal included a £5m investment from Oxfordshire County Council (OCC), around £2m from Project Gigabit and £250k from the Local Enterprise Partnership.

The initial project, delivered by the end of 2023, saw 175 GP practices, schools, libraries and community centres connected to full fibre. However, once deployed, Neos was engaged to extend connectivity to a further 18 rural sites in the county that were previously only connected via copper-based services, which is why the roll-out has not yet fully completed.

Craig Bower, Digital Infrastructure Consultant at the Council, said:

“Partnering with Neos has been instrumental in our journey towards a smarter Oxfordshire. By leveraging their high-capacity fibre solutions and expertise as a network aggregator, we’ve streamlined our networks and paved the way for a plethora of smart use-cases we’re currently exploring. This was by no means your typical supplier-buyer relationship and we’ve developed a deep and consultative working relationship with Neos throughout the process.”

David Bruce, CRO at Neos Networks, said:

“We’re delighted to see Oxford’s GigaHubs project start to bear fruit and that residents, businesses and tourists across the county can now access fast, reliable connectivity across so many of the most important spheres of public life. Oxfordshire’s clarity of vision and commitment to enhancing connectivity for both the unconnected and industry alike should be a model for other local authorities up and down the country to follow.”

In addition, as part of this, Neos Networks has provided £20,000 to an initiative purchasing new IT equipment for the council’s public libraries. The IT equipment can be used by staff and residents, enabling the connected hubs to become key pillars of community activity.

The new fibre isn’t just about serving public sector sites, since the new footprint of rural infrastructure that it creates can also help to incentivise other broadband operators to connect surrounding homes and businesses to faster speeds (usually requires a separate private investment). This seems to have played a role in Gigaclear’s Project Gigabit contract win in the county during late 2023 (here).

Alternative Broadband ISP Brsk Adds UK Support via WhatsApp

Alternative network operator and UK ISP Brsk, which covers 552,000 premises (536k RFS) in England via their full fibre network and is in the process of being merged into Netomnia (here), has today become one of the first internet providers to introduce real-time customer support via WhatsApp.

Despite today’s announcement claiming that Brsk are “the first [in the industry] to introduce real-time customer support via WhatsApp,” it’s worth noting that they’re actually not the first. In fact, a number of internet providers, such as OneCom and Yayzi, already provide this feature and it’s also used in businesses across various other sectors. But it’s still a very useful feature to have.

NOTE: The operator’s FTTP network serves parts of West Yorkshire, Lancashire, Greater Manchester, Cheshire, and the West Midlands (Birmingham and The Black Country).

The provider’s new WhatsApp support channel is currently part of a pilot project with a “select group of customers“, although Brsk are planning a phased roll-out as they refine the service. “Early feedback has been positive, indicating increased customer satisfaction and engagement,” said the provider.

At present the channel is being managed by customer support agents, albeit supplemented by AI tools that learn and optimise response strategies (i.e. the idea being to surpass the capabilities of traditional chatbots, although AI solutions aren’t universally loved by all consumers).

Kirsten Eddey, Chief Customer Officer for brsk, said:

“Introducing WhatsApp support is a significant step in our commitment to exceptional customer service. We aim to make broadband support as effortless and effective as possible because our customers deserve nothing less.”

The important thing to take away from all this is that Brsk are adding an additional, but optional, channel for support and not taking anything away. In that sense, whatever you may think about the use of AI, it’s still a positive to have another choice about how you engage with the ISP.

Vodafone Adopt Simpler UK Mobile and Broadband Price Rise Policy

Mobile network operator and broadband ISP Vodafone UK is preparing to introduce a simpler pricing policy, which will replace their old inflation-linked approach to annual price hikes with one that simplifies things (i.e. by expressing future annual increases using a clear figure in pounds and pence).

The change is designed to reflect Ofcom’s recent move to BAN broadband ISPs and mobile operators from doing mid-contract price hikes that are linked to confusing inflation and percentage-based changes (here). For example, Vodafone’s current approach is to notify customers that their “monthly price will increase each April, by the Consumer Price Index rate of inflation published in January of that year + 3.9%.”

Ofcom’s change was never designed to stop mid-contract hikes completely (it’s more about making future package pricing clearer and simpler), but it did require providers to tell customers precisely what any future price increases would be when they sign up (“in pounds and pence“), which rules out changes linked to unknown future inflation values or percentages. BT has already adopted this approach (here) and others will follow.

Vodafone now appears to be planning something similar for introduction from 2nd July 2024 (i.e. this is when the policy will be introduced, not the price rise itself). Under this approach, the operator will seek to raise their monthly prices by £3 for home broadband and £1 for mobile on 1st April every year. People on social tariffs, as well as anybody registered as financially vulnerable, are not affected by the price rise.

A Spokesperson for Vodafone told ISPreview:

“It’s important to us that our customers have a clear and certain understanding of their bills throughout the length of their contracts, so we are moving away from inflation linked price rises from 2 July 2024 for our consumer customers and some small business customers.

In line with Ofcom’s consultation, before a customer takes out a new contract or re-contracts with us – from 2 July 2024, they will be told exactly what their contract will cost in pounds and pence, and when that price rise will occur.

For example, customers taking out a contract in August 2024, will see their bill adjusted in April 2025, and then in April 2026 by a set amount. Plans will increase from £1 a month on mobile and £3 a month for broadband customers. There will be no increases for customers registered as financially vulnerable or those on social tariffs.

Note: Customers purchasing through Curry’s will have a phased transition to the new pricing model.”

However, we understand that both out-of-contract and out-of-bundle charges may continue to increase by the old inflation method, which is because these aren’t covered by Ofcom’s change. At present there is no change for those on Vodafone’s Pay As You Go (PAYG) plans. Vodafone has informed ISPreview that they’ll have a more detailed blog up on this change later this morning, but it wasn’t yet live at the time of writing (we’ll update again later).

FarrPoint Study Claims EE’s 4G Gives Economic Boost to UK Rural Areas

A new study conducted by technical consultancy firm FarrPoint, which was commissioned by UK telecoms operator EE (BT), has claimed that deploying 4G mobile (mobile broadband) networks can deliver social and economic benefits, worth between £249,000 and £6.9m, to different types of rural communities over 15 years.

The new study – ‘Rural 4G connectivity: Analysing the community benefits of mobile investment‘ – appears partly intended to help highlight EE’s efforts in building more than 300 new rural mobile masts and upgrading over 1,500 existing sites across the UK in the past 5 years – costing hundreds of millions of pounds.

Much of this has supported EE’s effort under the wider £1bn industry-led Shared Rural Network (SRN) project, which aims to extend geographic 4G coverage (aggregate) to 95% of the UK by the end of 2025 – falling to 84% when only considering the areas where you’ll be able to take 4G from all providers. Not to mention the 50 isolated communities that they and others helped as part of the Scottish 4G Infill (S4GI) project (here).

At the start of this year EE reported that they had already become the first – and so far, only – mobile operator to report having achieved the SRN’s first target for Partial Not-Spot (PNS) areas (i.e. areas that receive coverage from at least one operator, but not all), which required that their 4G service must cover 88% of the UK’s landmass (here). Ofcom has yet to officially confirm this.

NOTE: The overall target varies between regions, thus 4G cover from at least one operator is expected to reach 98% in England, 91% in Scotland, 95% in Wales and 98% in N.Ireland. But this falls to 90% in England, 74% in Scotland, 80% in Wales and 85% in N.Ireland when looking at coverage from all MNOs combined.

According to FarrPoint’s new analysis, there is a “significant positive economic impact in every rural community that received 4G coverage from EE“, although this does vary between locations. For example, at two of the sites (Mallaig and Melton Mowbray), the scale of the social and economic benefits to the local community considerably outweighs the cost of the network investment (c. £553,000 per rural mast on average).

Just to be clear, that figure of £553k reflects the total from an average infrastructure cost of £207,000 and average operation & management costs of £32,000 per year, which have been used to give an overall present value of investment in each mast site over the 15-year period.

However, the same is not true of the masts in Dunseverick and Trawsfynydd, where the cost for EE to build and maintain its 4G service is higher. This is largely because the lower population density of these locations – or presence of other networks – means less people use the individual masts. But locals are still expected to “reap substantial benefits” and such sites only represent a “small proportion of EE’s entire mobile network“.

In terms of how the benefits are all derived, they mostly base their figures on past reports from other studies and assumptions about improvements, such as in terms of greater flexible working, time savings, less travel, innovation, an increased labour force, tourism (e.g. helping visitors to shop, book/find local restaurants and navigate etc.), IoT solutions and so forth.

Greg McCall, Chief Networks Officer at BT Group, said:

“Every rural community can benefit from modern mobile connectivity. This report provides evidence of how it is helping local businesses grow, supporting rural employment opportunities, and enabling more people to experience the benefits of the digital economy. That’s why we’re proud to have delivered on the coverage targets we committed to, helping to close the digital divide and ensure that the benefits of 4G connectivity are more widely felt in every corner of the UK.”

Overall this is quite a useful report and one where the case studies aren’t only accentuating the positives. Put another way, EE and FarrPoint aren’t afraid of showing the reality for some remote communities, which can make it hard for network operators to make viable economic models for new mast sites.

At the same time, gauging the economic impacts of improving 4G connectivity is notoriously difficult, not least because most businesses and consumers won’t be starting from a point of zero existing connectivity (fixed line broadband may already be present) and issues of coverage, band choice and so forth can vary a lot. Equally, not everybody will fully harness 4G once it is available.

However, few people would disagree that there does tend to be a strong positive relationship between 4G/5G investment and growth, although figures like those predicted in the above report should probably still be taken with a pinch of salt.