Sky rule out own FTTP network

Shocker - Sky are fine with £1.4 billion a year on football rights, roughly equivalent to BT's entire FTTC CapEx spend, but draw the line at building their own network preferring to wholesale BT.

Link.

Jeremy Darroch, chief executive, ruled out plans to build its own national fibre network in Britain despite Ofcom�s attempts to tempt other broadband companies to invest in infrastructure to compete with BT�s Openreach unit. Sky told Ofcom, the telecoms regulator, as part of a submission this year that it had been �exploring in detail the possibility of investing in last mile fibre networks� to compete with Openreach but Mr Darroch said that the company was more comfortable as a wholesaler of Openreach�s fibre.

Never saw that one coming.

Perhaps now they'll settle down with their whinging about Openreach's slow FTTP roll out now they hopefully understand the costs and timescales involved.

Presumably down to risk and return. Competing in the last mile is generally not simple (otherwise you would think Virgin would be aiming for 100% coverage as they already have the tools and staff to deliver the last mile).

So, they have analysed all of the cost and can see it is very expensive with a very low long term ROI with potentially very negative returns in the first few years. I would guess they would be basing their analysis on the charges BT levies for supply of services to them and others along with their own experience of customer service and take up.

Will this make them, and potentially others such as TalkTalk, realise that BT (Openreach) and not making a massive profit on supplying the service and that there are some very very high costs involved. And then to stop whingeing to OFCOM every few weeks about another BT/BTOR rip off which is rarely proven - and all it does is push up BT costs which are then ultimately put back on the FTTC/P projects.


As the old saying goes "Put up or shut up"

Everyone must be wrong as I thought everyone in the telecoms and tech industry drove around in a Tesla Model X and spent their time at Gatsby parties

cant blame them, its financial suicide to build a network against the current incumbent, I would be the same, ok to invest as stakeholder of openreach, otherwise no no.

if you wanted them to invest should have voted for openreach split. Its as if you want it both ways.

In reply to a post by lee111s:

Never saw that one coming.

Perhaps now they'll settle down with their whinging about Openreach's slow FTTP roll out now they hopefully understand the costs and timescales involved.

It should be mentioned that the costs Sky were facing were considerably higher than those Openreach face.

In reply to a post by MHC:

So, they have analysed all of the cost and can see it is very expensive with a very low long term ROI with potentially very negative returns in the first few years. I would guess they would be basing their analysis on the charges BT levies for supply of services to them and others along with their own experience of customer service and take up.

Will this make them, and potentially others such as TalkTalk, realise that BT (Openreach) and not making a massive profit on supplying the service and that there are some very very high costs involved. And then to stop whingeing to OFCOM every few weeks about another BT/BTOR rip off which is rarely proven - and all it does is push up BT costs which are then ultimately put back on the FTTC/P projects.


As the old saying goes "Put up or shut up"

I kinda agree although again it should be noted that the costs to Openreach of deploying FTTP are considerably lower than those Sky or anyone else face. Putting fibre in existing ducts is somewhat cheaper than having to build new ducts unless you go out of your way to make it expensive.

Sky aren't fans of long term investment on the whole anyway.

Others who are should show their faces shortly.

Is the Openreach price for duct sharing prohibitive?

In reply to a post by RobertoS:

Is the Openreach price for duct sharing prohibitive?

Presumably there's cheaper pricing coming as part of the upcoming Ofcom agreement. But Sky have ruled out FTTP without even seeing any potential new prices.

That Sky's intentions are thus is not a surprise to me.

That Sky are sounding, somewhat, sympathetic or understanding towards BTW is very surprising - at least while there is still an advantage to be gained from ongoing bombast.

Does this tell us that the behind-the-scenes work for BT to reach an agreement with their CPs over Ofcom's strategy (such as changes to the management structure of Openreach) have borne fruit?

Or ...

In reply to a post by Ignitionnet:

Sky aren't fans of long term investment on the whole anyway.

Perhaps they felt the need to publicly reassure their own investors that, no, they're not daft enough to use their money that way.

The article implied enough problems with short-term investment, especially in Germany. I wonder how DT's approach with VDSL2+vectoring affects the TV market over there.

Or ...

In reply to a post by Ignitionnet:

Others who are should show their faces shortly.

Perhaps they've reach an agreement with "A N Other" over wholesaling that product, and this niceness with BT is a red herring.

I'd love a Tesla .. but then we'd be arguing about wholesale electricity costs right ?

Very well said MHC.