Scoping the market for business communications - WIK · Scoping the market for business...
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Tanuja Randery President – BTGS Strategy Scoping the market for business communications
Transcript of Scoping the market for business communications - WIK · Scoping the market for business...
Tanuja Randery President – BTGS Strategy
Scoping the market for business communications
© British Telecommunications plc 2
Business connectivity needs are truly pan European
Flexible connectivity solutions – responding to clients’ needs wherever they need to go
Ethernet
xDSL
Internet based access
3rd party network
Reach In Network to Network Interface (NNI)
Optical
Leased Line Access
City Fibre Networks
VSAT & Wireless
Multiple quality tiers and suppliers
• Fibre
• Ethernet – GigE
• SONET/SDH
• CFN
• Leased line • Ethernet • DSL Premium • NNI • VSAT
• Leased line
• Ethernet
• Private (DSL)
• DSL Plus
• NNI
• Low contention
• Limited E2E control
• DSL Private
• Cable
• Wireless
• DSL Standard
• HVPN
• High contention
• No E2E control
• HVPN
• CPA/ public VPN
• Cable
• Wireless
Site profiles Premium full service Plus medium COS capable
Standard lower no COS
R&D
Campus/ HQ
Cloud
Manufacturing
Data centre
Distribution
Branch office
Manufacturing
Retail
Home office
Back-up
Branch office
Access – focusing on the right demarcation between types of accesses
Focus on performance
Focus on price
Focus on reach
Ethernet – fibre
Ethernet – copper
Private circuits
VDSL/ GPON (Super fast)
ADSL 2+ ADSL
Microwave
Wi-Fi
3G/ 4G/ LTE
Satellite
Ban
dw
idth
increase
Dedicated (private)
Shared (private shared)
Wireless
The analysts are telling us…
Selection criteria for Network Service Providers
When selecting a network service provider, which are the most important factors in making a decision?
Source: WE Enterprise Communication Survey 2014 – IDC
0 10 20 30 40 50 60 70
A broad service portfolio (incl. IT services)
Ability to provide mobile and fixed
Cloud service strategy
Vertical or industry expertise
Contract flexibility
Technology innovation
Geographical coverage
Quality of service and support
Pricing
(% of respondents)
Pricing and coverage are fundamental requirements for our customers
BT EU MPLS access circuits EU MPLS access circuits by type
0
5.000
10.000
15.000
20.000
25.000
DSL LL Ethernet
FY12/13 FY13/14 FY14/15
0
20
40
60
80
100
<=2MB 2-50MB 50-155MB Over 155MB
Ethernet LL
Relationship and trends between access types
Regulatory response to pan-EU Wholesale Ethernet requirements
Regulated Ethernet Available
Issues
Austria Partially Significant geographic segmentation
Belgium No Carrier grade Ethernet not available; delay with implementation of market review
Czech Partially Bandwidth capped at 2Mbs
France Partially Bandwidth capped at 1Gbs; Concerns about national coverage
Germany Partially Bandwidth capped at 150Mbs
Hungary Partially Bandwidth capped at 2Mbs
Italy Partially Extreme prices, weak SLAs and slow provisioning
Luxembourg No Referred to European Court of Justice for delay in undertaking market review
Netherlands Partially Weak SLAs
Spain Partially High prices, weak SLAs and slow provisioning
UK Yes
Sweden Partially Weak SLAs
Price variation of Wholesale Fibre Ethernet access
Incumbent Reference Offer Ethernet leased line charges – local access 5km 24 months
0
500
1000
1500
2000
2500
3000
3500
10M 100M 1G 10 G
Mo
nth
ly c
ost
€
€
€
€
€
€
€
Business grade SLAs – real and effective?
Provisioning timescales (Oct 2014)
0
20
40
60
80
100
120
140
Minimum on-net Maximum (requiring fibre build)
Wo
rkin
g d
ays
Fault repair times
0
5
10
15
20
25
30
Standard EnhancedH
ou
rs f
rom
rep
ort
Penalties as % monthly rental for provisioning beyond committed date
0
200
400
600
800
1000
1200
5 working days 10 working days
% m
on
thly
ren
tal
Focus on: performance, price and reach to deliver a competitive pan EU corporate market
Demand for corporate services is truly pan-European.
National regulators should treat Broadband and fixed Ethernet technologies as complementary as they meet different demand requirements, especially at higher bandwidths. Focus on performance, price and reach.
Regulation for performance sites should not be capped by bandwidth as this artificially segments the market (and competitive conditions) with little regard to actual competitive infrastructure in the local geography.
xDSL based ‘price’ sites should be delivered with business grade functionality and SLAs but not otherwise be ‘gold plated’ as this reduces end customer benefits.
Critically, ensure more uniform outcome of regulatory decisions.
