UK 47th in World Broadband Speed

According to THIS 2020 research the UK has dropped to 47th in the world ranking of broadband speed tests.

Here are a few examples of countries who have faster average broadband speeds than the UK;

Latvia, Lithuania, Romania, Slovenia with Aland Islands, Hungary and Aruba more than doubling the UK's average speed!

Now, I know I have written before that it is not all about speed.  Stability and network quality are arguably more important but there's the thing; Our Broadband duopoly is not fit for purpose.

We essentially have two dominant providers - BT (Openreach) and Virgin Media.  BT Openreach provides the wholesale market on which most broadband providers sit and so the speed is held back by their investment policies.

The be fair to Virgin they probably skew that average as their Docsis (Data Over Cable Service Interface Specification) technology already delivers up to 350/36Mb/s and they have plans for faster.

Ofcom's own report which is slow in itself as the latest data is 2018 shows us the same basic issues.  You can find it HERE.

In the Ofcom report you will see some of my previous points such as issues with Contention where are busy times even Virgin customers are only getting 76% of what they pay for.

BT Openreach are still basically selling us technology which was deployed in 2008. ADSL2 or ADSL2+ Those close to the Exchange can receive up to 22Mbps download.  In 2019 just under half of all broadband connections in the uk still use ADSL / ADSL2+ despite a faster option being available to 95% of them.

Although Fibre to the Cabinet (FttC) technology is widely available BT's investment has been lackluster.  For example, I live 100m from our Exchange but the FttC service is "full" and BT have no plans to expand it.  They have a whole building right behind it but they limited the circuits.  I know some users who live closer but can only get 1Mb/s download!!!

Yes, to some they provide up to 80/20Mb/s FttC service but this is their top product.  Even if everybody in the UK had it that would only take us to position 17 in the world just ahead of Bermuda!

BOTH BT and Virgin are milking their investments for all they can get.  Virgin has adopted a gradual price hike strategy where they nudge the price up by about £4 per month and they do this twice a year.  Yes it's only £4 but it's £96 a year and that is 100% margin.

New Independent Providers and Community Fibre

This strategy is creating and allowing a niche where new independent provides can capitalise. There are new providers such as Truespeed who are making long term investments to Fibre to the Premises (FttP).

There are also community groups who are forming not for profits and building their own FttP projects.

Both offer a long term payback.  It seems incredible to me that our dopoly allows their market to erode and decay but I guess is that are so focussed on the margin that is the best way for them to deliver value to their shareholders.

My only problem is how long it takes the new providers to fill the void. I think they can beat the big providers of service and speed but they cant afford to be in all places at once.  That certainly is frustrating if you live in a place which is close but your community has not reached the levels required to make the build viable.

UK's Competitive Disadvantage

To me the real issue here is what this does to our international competitiveness. Many of the countries I have listed above understand that if they are to compete in a knowledge based global economy they rely on good communications.