In the UK we seem to be lagging behind some Western countries in internet connections beyond FTTC. FTTP/FTTB seems to have been the growth strategy for almost a decade now in Nordic countries and many others as well.
Then I thought about Hull. I just checked their progress from Thinkbroadband maps and I must say I am impressed how they have managed to go from nothing to past 75% in only a couple of years. Hyperoptic and Gigaclear seem to have a massive installation backlog, and they are growing fast. Virgin had to scale down a bit their ambitions in project lightning due to internal problems, but the project is still there. Today we have read about OR plans to install FTTP to three million premises, but their plan had several caveats attached.
In Nordic countries the business model resembles KC. There are local telcos that build infrastructure and act as ISPs. This is what Hyperoptic, Virgin and others do as well. It seems to me that this model seems to lead to more investment than the split model where OR manages infrastructure and ISPs do whatever they do.
OR blames lack of money; their share is the line rental only. But ISPs do not exactly seem to be gold mines either. So where does the money go?
How much of our monthly fees go to the "technical" part of operations, and how much is wasted on advertising and attracting new customers with gift cards etc. When I think about advertising I see I have a hunch it might be a lot. It is impossible to go anywhere in London without seeing ads from OR network based ISPs. Open your telly and there is more. Every web site even remotely related to technology carries ads from ISPs.
How much are we throwing away because of the business model where customers are expected to change their OR infrastructure based ISPs yearly? As there is no technical difference between them, an ISP that does not take part in the advertisement and gift card race will be out of business, so they all must be shovelling money to this just to keep up - without any significant, permanent growth in customer base. This month operator X hoovers customers from the others, next month it will be Y doing the same, getting back from X more or less the same amount they lost a month ago.
Or am I completely wrong and this is just a minor expense on ISP budgets?
Edited by hvis42 (Thu 01-Feb-18 11:16:52)