Mr. Ivan Skenderoski's presentation at QITCOM 2011
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Transcript of Mr. Ivan Skenderoski's presentation at QITCOM 2011
1© British Telecommunications plc
© British Telecommunications plc
Building a broadband ecosystem
Ivan Skenderoski, May 2011
2© British Telecommunications plc
BT is making a major investment in fibre access
• $4bn investment to roll-out fibre to two-thirds of UK premises by 2015
– No other company in the world is investing as much in fibre without either public sector support or a regulatory regime that allows the company to make far greater returns
• Deploying at scale and pace– Installing +30,000 cabinets, enabling +1,000 exchanges, laying +50,000km of fibre,
supported by 23,000 engineers to over 16m premises by 2015
– > 250 cabinets and 80,000 homes and offices enabled every week
2/3 premises passed by 2015
5m premises passed by Spring 2011
1.5m premises passed by summer 2010
10m premises passed by2012
ADSL enabled for 99% of all premises
3© British Telecommunications plc
Our ‘mixed economy’ strategy
Fibre to the cabinet (FTTC)Up to 40Mb/s downstreamUp to 15 Mb/s upstream
Fibre to the premise (FTTP)Up to 100Mb/s downstreamUp to 30 Mb/s upstream
Exchanges Homes/Businesses
Copper (ADSL2+)Up to 24Mb/s downstream
ADSL 2+80% UK coverage by
2012
FTTC80 Mb/s downstream in
2012
FTTPTrial of 1000Mbps
downstream400 Mbps upstream
Copper
CopperFibre
Fibre
Cabinet
4© British Telecommunications plc
Balanced Scorecard
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11
1014 16 19
26
Service Providers
BT Virgin Rutland Vtesse0
10
20
30
40
50
60Speed
Upload
Download
Mbp
s
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11
1850 2009 2423
40075120
SME Sales
Open network needed so multiple providers can drive consumer demand
Some suppliers target only urban areas then
boast of speed on limited networks
Need to drive business as well as consumer take-up
BT Virgin Rutland Vtesse
£0 £0
£75
£50
£18£25
£30 £33
Consumer PriceUpfront Connection Monthly cost
Successful delivery of Superfast Broadband is about more than just high headline speeds
Installed Base
01/09/0
9
01/11/0
9
01/01/1
0
01/03/1
0
01/05/1
0
01/07/1
0
01/09/1
0
01/11/1
0
01/01/1
1
01/03/1
1
01/05/1
1
01/07/1
1
01/09/1
1
01/11/1
1
01/01/1
2
01/03/1
2
050000
100000150000200000250000300000350000400000
Virgin Media XXL Vtesse & Rutland
BT Infinity
Coverage
Technical advances can further lift speeds
beyond those currently envisaged
Trusted brand and marketing needed to drive take-up by
consumers
Competitive prices needed to drive
take-up
5© British Telecommunications plc
Open access, competition and consumer choice
6© British Telecommunications plc
Openreach Handover
Point
Fibre
Underground ‘duct’ or overhead pole
New FTTC ‘active’ cabinet
PIA
SLU
GEA
WBC FTTC/P
PIAPhysical
Infrastructure Access
SLUSub Loop
Unbundling
GEAGeneric Ethernet
Access
WBC FTTC/FTTPWholesale Broadband
Connect (fibre)
Core Network
CPs can participate across the fibre value chain
7© British Telecommunications plc
• BT has pledged to invest £30m in the government’s Next Generation Broadband Project
• FTTC technology to a majority of businesses with other fixed line solutions being used where appropriate
• Wholesale level solution to ensure all Service Providers can access services at the same T&Cs and cost.
• White label marketing campaign delivered prior to the enablement of an area to generate awareness of next generation broadband
DETI objective: “increase the availability of next
generation broadband speeds to 85% of
businesses by 2011.”
Northern Ireland
• Most ambitious rural broadband project in the world
• EU contribution of £53.5m is unlocking a BT investment of £78.5m.
• SFBB access up to 90 per cent of local businesses and homes by 2014.
• An array of service providers offering competition and innovation
Cornwall
Public private partnership to reach the ‘final third’
• £830m available from licence fee and DSO surplus
• BT will make funds available should we be successful in securing some of these funds
• BT estimates that this public funding if matched by private investment could take coverage of fibre to around 90% UK premises
Licensing
8© British Telecommunications plc
12 months ago, many of our customers hadn’t heard of ‘Superfast Broadband’ – now communities are competing for it
Race to Infinity has generated a consumer ‘buzz’
360k votes cast in a 3 month period (twice as many votes as the US campaign for 1 Gbps speeds)
Power of local, community-based marketing demonstrated
1.07m visits to the website 45% of voters did not opt out of
marketing (providing 165k marketable records)
Pre-registration on bt.com for planned SFBB exchanges increased by 70% throughout the race
10 exchanges won the competition and will receive SFBB by 2012
9© British Telecommunications plc
Over 360,000 votes cast in Race to Infinity campaign with 10 winning areas
BT is keeping its promises
145k BT Infinity installations in first year - ~ 6k sales a week
More than 9 million premises announced so far
Circa 5 mil million premises already passed
45 external service providers are selling or trialling SFBB
FTTP customer trials underway in Milton Keynes and London, commercial services launching late 2011
An additional 41 market towns announced for 2011/12 deployment
10© British Telecommunications plc