In today’s fast-paced digital landscape, access to high-speed internet is no longer a luxury; it’s a necessity, which is why the fibre optic internet market stands as a critical infrastructure backbone and is attracting huge investment and political support. Yet, amidst the continuing expansion and evolution of fibre optic networks, the need for further regulation has become increasingly apparent. Pulse Fibre advocates for regulatory intervention to ensure a more stable, efficient and equitable fibre optic market place.
Recent data shows that in the Essex town of Braintree five different Fibre-to-the-Premises (FTTP) networks have overbuilt each other. However, the wider picture of the UK is considerably different, with only 62.7% of the United Kingdom having FTTP availability.
The UK FTTP roll-out has consistently failed to meet government targets (85% availability by 2025) as a result of these concentrated deployments. Appropriate regulation would guide FTTP networks into new locations, progressing the UK infrastructure upgrade.
Building parallel passive fibre infrastructures increases cost and disruption for little additional economic benefit.
Overbuilding
High levels of overbuilding does not come without risk for both consumers and companies. It results in more operators targeting the same limited customer base, which is not helped by the fact that most network operators are already suffering from rising costs and lower revenues due to aggressive, larger competitors in the market as seen as a result with Equinox 2. In fact, it is not uncommon for the industry to witness smaller network providers setting out a large amount of capital to lay fibre cables, to then not be chosen by the customer, resulting in a lack of revenue and eventually going bust.
The separation of network providers and service providers avoids resource duplication and increases efficiency in fibre network deployment and maintenance.
Aside from cost, the lack of market regulation also has negative impacts on the customer experience, and wider issue of sustainability. If the market were subject to higher regulatory standards, we would predict to see less infrastructure being installed where existing full-fibre broadband is already available. This would result in a number of improvements, including less roadworks and disruptions where the internet is installed, and of course a drastic reduction in the carbon emissions associated with construction works.
Benefits of Regulation
The UK’s energy market is a good example of the benefits of market regulation. The National Grid is the vital hub that provides all of our energy companies. As a consumer, we still have the choice when it comes to who supplies our home. It would be inconceivable if every time a homeowner chose a different energy company, they went through the large undertaking of installing new gas pipes underneath our roads each time, so why is this not the case for internet providers?
Market regulation plays a crucial role in ensuring a level playing field for the industry, by reducing the risk of dominant companies engaging in anti-competitive practices such as predatory pricing or market segmentation. By implementing additional regulations, innovation and investment can be encouraged from a diverse range of providers.
Separating ISP’s and NSP’s fosters competition, leading to lower prices and improved services. As well as encouraging investment in fibre network infrastructure by reducing the financial risk and burden on operators. This can lead to more widespread deployment of fibre networks, benefiting customers and the economy as a whole. It will also help to bridge the digital divide, lessening the gap between those who have access to high-speed internet and those that do not, ensuring everyone has access to essential digital services and opportunities.
Consumer interests will also be protected by market regulation, as in the absence of oversight, larger providers may prioritise profit over service quality, leading to unreliable connections. Regulation can establish minimum standards for reliability, speed and customer support, as well as ensure transparent pricing practices.
Market regulation is indispensable for ensuring the continued growth and success of the fibre optic broadband industry. By promoting fair competition, protecting consumer interests and fostering innovation, regulators can create a vibrant, healthier and more sustainable broadband ecosystem that benefits everyone. As we look to the future of connectivity, effective market regulation will be essential in realising the full potential of fibre optic broadband to transform lives and drive economic growth.