Rural Broadband Rollout Stalled by Infrastructure Costs, Regulator Faces Calls for Reform
Ofcom, the UK’s communications regulator, is facing mounting pressure to overhaul its pricing structure for broadband infrastructure access as disputes emerge between established providers and emerging competitors. The issues, centered around the cost of utilizing existing infrastructure like telegraph poles and underground ducts, threaten to slow the expansion of full-fibre broadband to rural communities across the United Kingdom.
The debate highlights a critical tension in the UK’s broadband landscape. While the government aims for nationwide gigabit-capable coverage, the economic realities of deploying infrastructure in sparsely populated areas are proving challenging. Alternative network companies (altnets) argue that the current system unfairly burdens them with costs, hindering their ability to compete with market leader Openreach.
Fibrus Calls for Pricing Overhaul
Rural broadband provider Fibrus is spearheading the call for change. The company, focused on bringing full-fibre broadband to homes and businesses across Northern Ireland and beyond, contends that Openreach’s pricing model is a significant obstacle. According to Fibrus, access to Openreach’s network of ducts is currently priced on a per-metre basis.
This metric disproportionately impacts rural builds, where the distance between properties is significantly greater than in urban areas. “Properties in rural areas are, on average, 200 metres away from their nearest neighbour compared to just 20 metres in urban areas,” the company stated. This translates to substantially higher costs for altnets serving rural customers.
“The current model is broken and it’s having a real impact on rural communities across the UK who can’t access fast, reliable broadband,” a senior official at Fibrus asserted. The company points to a striking statistic: despite serving just 0.3% of total UK broadband premises, Fibrus contributes 18% of Openreach’s physical infrastructure access (PIA) income – a figure they describe as “staggering.”
Fibrus is advocating for a shift to a per-connected-premise national pricing approach, aligning with the standard practice in the wholesale broadband market. This, they believe, would create a more equitable system and facilitate the rollout of full-fibre broadband in challenging locations. The company has formally presented this recommendation as part of Ofcom’s current Telecoms Access Review (TAR).
Brsk Fined for Installation Issues
While Fibrus lobbies for systemic change, another altnet, Brsk, is facing immediate consequences for regulatory breaches. On May 1st, 2022, Brsk notified the Birmingham City Highways Authority of its intention to deploy fibre broadband in the area, promising permit requests “in the not-too-distant future.”
However, on April 30th, 2024, Birmingham City’s Local Planning Authority filed a complaint with Ofcom, alleging that Brsk had installed numerous broadband poles without providing the required 28-day notification. Following an investigation, Ofcom determined that Brsk had indeed violated consultation requirements and imposed a fine totaling £20,000.
The Brsk case underscores the importance of adhering to proper procedures when deploying new infrastructure. It also highlights the potential for friction between altnets and local authorities as they seek to expand their networks.
The Digital Divide Persists
The contrasting situations of Fibrus and Brsk illustrate the complex challenges facing the UK’s broadband rollout. While 87% of non-rural properties now have access to gigabit-capable broadband, that figure drops to just 52% in rural areas. Closing this digital divide is seen as crucial for the UK’s economic competitiveness and social inclusion.
The outcome of Ofcom’s Telecoms Access Review will be pivotal. A failure to address the concerns raised by Fibrus and other altnets could further entrench Openreach’s dominance and delay the delivery of high-speed broadband to millions of rural residents and businesses. The future of rural connectivity in the UK hangs in the balance.
