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Broadband Access
DigiWorld 2006: BT Rules Out FTTH
ADSL2+ to meet ‘foreseeable needs’
by Ken Wieland
Unlike its counterparts in the US and Japan, BT has no plans
to deploy FTTH on a nationwide basis.
“We’ll be launching ADSL2+ next year, which gives speeds of
up to 24Mbps and will comfortably support customers’
immediate needs, including IPTV,” said Paul Reynolds, CEO
of BT Wholesale, at the DigiWorld 2006 Summit held in
Montpellier. “I really don’t see a business case for widespread
FTTH. It is not immediately apparent where the incremental
revenue would come from that investment.”
Reynolds’ views seem to be in stark contrast to those of
France Telecom, which started a FTTH trial in Paris in January
2006 and currently has 100 customers.
“This trial shouldn’t be seen as a timid approach to FTTH,”
said Georges Penalver, executive director of the marketing
strategy group at France Telecom’s Technocentre. “Instead, it
shows our determination to go ahead. How to deploy the
FTTH architecture and what services will be offered over it,
however, are questions that are still being addressed.”
Penalver takes the view that customers themselves are
driving the need for ever-greater bandwidth. “In France,
around 15 per cent households have multi-equipment – TVs,
PCs, consoles and mobile phones – and that will increase to
50 per cent,” said Penalver. “Customers have shown their
intention to converge and we have to be able to offer more
and more attractive services when the bandwidth becomes
available.”
As for Reynolds, his focus is on transforming the UK
incumbent’s core network to an all-IP single platform – both
domestically and internationally – in the shape of its 21CN.
The first PSTN customers are scheduled to be transferred onto
the 21CN in the night of 27/28 November – a landmark
event. “We’re on time, on budget and ready to roll,” said
Reynolds.
Underpinning the strategic urgency of rolling out 21CN, less
than 12 per cent of BT Group’s revenue now comes from the
UK fixed-voice market. The 21CN is designed to speed up
time-to-market of new services, reduce opex (£1 bn savings
slated for BT’s 2008/09 financial year), and to improve the
customer experience.
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