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Survey finds consumers switching broadband to cut back cost
With the increase in VAT, UK citizens are finding the cheapest broadband deals in order save monthly household expenditures.
The survey finds that around 29 percent of the consumers are planning on switching to cheaper broadband deals in a bid to save money. The survey also reported that around 74 percent were contemplating cutting down on the entertainment sector.
The survey, conducted by insurance agency Allianz, believes that people are taking unnecessary risks by switching broadband providers.
Gareth McChesney of Allianz said: “When looking to make household cuts people will naturally prioritise what is important to them.”
Although the report also suggested that switching need not be triggered only by cost but could also involve faster speeds, reliable service and offers on bundles.
A survey by ISP Review revealed that though 35.8% believed they had low broadband speeds and 45% were unhappy with the services, only 31.3 per cent said yes to switching broadband provider, while 36% declined the initiative.
Telecom regulator Ofcom is bringing in ways to make the broadband move for consumers easier so as to increase competition in the market. Ofcom also reported that consumers seem to be unaware regarding the low speeds they receive and get misled by the advertising speeds.
The broadband providers promote their service with an ‘up to’ sign which does not convey the correct speeds.
VOA’s controvertial ‘Fibre Tax’ to be amended
The UK Government represented by Ed Vaizey, the Minister for Communications, Culture and the Creative Industries, met with UK’s Internet service providers in order to discuss the controversial fibre optic broadband tax.
The Valuation Office Agency levied the ‘Fibre Tax’ which is considered stifling by most of the Internet service providers in the country. According to the ISPs, the tax makes its economically unviable for telecom companies other then BT and Virgin Media to roll out super-fast next generation fibre optic broadband in the rural areas of the country.
The meeting which was initially supposed to be scheduled on 2nd December, 2010, was postponed to the current date due to inconvenient weather conditions. The meeting played host to a lively debate on non-domestic rating system for Next Generation Access and led to the proposition of the yearly £8 levy on residential 100Mbps FTTH broadband connections.
Rutland Telecom stated, “In principle we are in agreement with the proposed £8/year levy on residential FTTH connections. However we would welcome some form of differential ratings system which might stimulate investment in the Final Third – perhaps by lowering the rates on backhaul circuits for NGA networks in rural areas. It is clear that the VOA and BIS and the Broadband Minister are keen to see evidence from real examples before shaping policy in this way. To that end we will be looking at assisting the VOA by providing details from some of the feasibility studies we have undertaken.”
He further commented that the smaller ISPs were eagerly looking forward to BT’s decision to open up their ducts and poles broadband infrastructure to their rivals. But he also stated that BT’s proposed cost when combined with the non-domestic rates for new build NGA backhaul networks should not become a barrier for the ISPs, especially for rollout in rural areas. Rutland Telecom raised the possibility of negative rates to stimulate investment in rural fibre. Whilst not dismissed out of hand at the meeting, such a stimulus seems unlikley in the near future.
The meeting did not actually reach any fruitful conclusion and was only used for discussions.
Ofcom improves mobile broadband service in UK
The telecom regulator has given permission to the mobile operators to use the opened up 2G airwaves in order to offer 3G services.
The 2G airwaves were previously reserved for calling and texting only but will now be used to enhance 3G coverage which will lead to better speeds and mobile network reception all over UK.
Needless to say, both mobile broadband providers and their consumers are eagerly looking forward to the implementation of this order. Those living in the urban areas may already be benefitting from Ofcom’s decision and will be able to access 3G services, while those living in the rural areas will have to wait for some more days before the decision affects them positively.
With the improved broadband coverage, market analysts are recommending home broadband subscribers to also opt for mobile broadband packages in order to access the 3G services on the move.
Mobile network operators like 3 Mobile and Vodafone are offering some great value for money packages. Vodafone especially is offering a 3GB data allowance package for £5 per month, which is a drastic reduction from £15.
3 Mobile, on the other hand, is offering a 15GB monthly allowance for £20.99 per month. This mobile operator is the pick of the bunch with and excellent range of mobile broadband packages and mobile Wi-Fi hotspots spread all across UK. The packages can be usually subscribed for a period of 18 months.
Both the mobile broadband packages come accompanied with a dongle making a home broadband subscription quite unnecessary.
Analysts Predict 600,000 Super-Fast Broadband Connections in 2011
Keeping with their pledge of reaching all parts of UK with super-fast broadband network, analysts believe broadband providers will reach 600,000 connections this year.
PointTopic, the broadband statistics analyzer, has predicted that the telephone lines supporting the next generation broadband service will rise from 45,000 to 600,000 this year. This will be mostly brought about by the combined efforts of BT and the UK government.
Out of these, PointTopic explains, 3% of the telephone line will host broadband speeds reaching up to or more then 25Mbps. This will be done using BT’s 40Mbps FTTC networks or its 110Mbps FTTP networks.
Tim Johnson, the chief analyst at PointTopic, stated that BT has to prove to the government that their current investment is bearing fruit and that their future investment in broadband infrastructure is also necessary by reaching these incredible figures. He further added that the existence of the huge demand for such service and the subsequent availability of such technology have to be proved by the broadband provider for continued monetary blessings from the authorities that be.
Ofcom acts for Mobile broadband providers to increase speed
UK’s telecoms regulator, Ofcom, has freed up extra spectrum for use with 3G mobile broadband in order to allow mobile broadband providers to increase broadband speeds.
The spectrum was formerly used by 2G services for voice and text calls. Hence the mobile operators had had their hands tied with the limited amount of spectrum available so as to deliver optimum 3G data services the users craved.
The low spectrum availability led to poor broadband speeds and unreliable connections for mobile broadband users. This was especially affecting mobile broadband coverage in certain parts of the country.
“From today the airwaves used by mobile phone operators for 2G services, such as making phone calls and sending texts, will be available to provide 3G services, such as mobile internet browsing,” said Ofcom.
Ofcom also assured mobile broadband users that the action would invariably improve the quality of mobile broadband coverage allowing uniformity and consistency across most parts of the country, especially the rural bands.
Ofcom’s further assurance that the move would not distort the competition in the market that may lead to further action from the regulator is being eyed warily. Of course, if the taken decision is proven practically successful, then mobile broadband users may find more then a single point to rejoice in.
Rural parts of Scotland to receive faster broadband soon
In a view to bring super-fast broadband services to more rural parts of the country, the Clackmannanshire Council in Scotland was granted a sum of £200,000 from the Scottish Parliament.
This grant was offered by the Scottish government as part of the Rural Broadband Challenge Fund. The ‘ClacksMax’ bid will focus on the business ‘not-spot’ areas of the Fourth Valley using a pilot WiMAX wireless broadband solution which will deliver speeds of up to 20Mbps with a minimum speed of 2Mbps.
Peter Sunderland, Chair of the Forth Valley and Lomond LEADER Group, said: “The beauty of the solution is that it’s not limited just to businesses, householders in the surrounding communities will also benefit”.
The trial will cover the communities of Tillicoultry, Alva East, Alloa West, Bandeath, Throsk, South Alloa, Cambusbarron and parts of rural south west Stirling. Though the exact reach of the signal can only be determined after the placement of the equipment.
Councillor Eddie Carrick, portfolio holder for sustainability, added, “I’m delighted that our bid has been recognised as a strong one and that we’ve got the funding to take this forward. Clackmannanshire has a great transport infrastructure that puts it at the centre of Scottish business. Now we can build an electronic infrastructure to match that.”
The Scottish Parliament had only acknowledged 5 bids as valid among which was the pilot trial. The commissioning and purchase of equipment will start in the New Year and the service is expected to hit homes by spring 2011.
Forth Valley and Lomond, the Borders, the Outer Hebrides, Orkney and South Lanarkshire – all of which have ‘no-spots’ inaccessible to wifi – are set to benefit from funding.
3 million UK kids still don’t have web access, report states
According to a latest report on broadband coverage across UK, disturbingly it’s been found out that 3 million children across UK still cannot access Internet from their homes.
The report has been put together by an education charity, e-Learning Foundation, which revealed that more then 2 million households across UK have no broadband or dial-up network and further revealed that more then one million homes do not even have computers.
The survey was undertaken after the report from Government Family Spending Survey, which revealed that lower income group children were two and half times more likely to do without broadband or dial up connection than children from wealthier income groups. The Spending Survey and the e-learning report both ominously showcase the lack of participation from many families in UK.
Chief Executive Officer of the e-Learning Foundation, Valerie Thompson, stated that the survey importantly brought home the fact that many children in UK were still struggling with poverty and this lack of technology clearly caused disadvantages to the child as computer and the Internet were frequently utilized in homework, researching topics, independent learning and even while communicating with teachers and classmates. She further added that the knowledge attainment gap between the wealthier children and the impoverished ones would simply grow wider without any checks.
This month has already seen similar reports being filed by Joseph Rowntree Foundation (JRF) and the New Policy Institute with similar findings. According to the study more then 3.5 million kids in UK were still suffering from poverty. The Minimum Income Standard report seemed to suggest that computers with internet were considered as essential commodities in households with working-age adults but not in the pensioners’ home.
The JRF also reported on the 2.5 million UK citizens who remained unemployed as of mid-2010 which was slightly more than 2009. The unemployed, the ‘economically inactive’ but wanting work, or employed part-time and unable to find full-time work comprised of, in total, 6 million citizens of UK.
Report revealed that 1.6 million children were part of homes with no working adults and that around 2.1 million children were part of single working parent homes. This seemed a case in point for the lack of computer or internet access.
Ironically, services like banking, phones and utilities offer exclusively online discount offers which could otherwise have helped these families. The government too is adding to their woes by going more online friendly.
Broadband makes one in six people work from home on X’Mas Day, reveals report
Thanks to the spread of broadband and the ever increasing broadband speeds, statistics from ISP Demon Broadband reveals that one in six people in UK are forced to work from home on Christmas Day.
The research states that people are now spending nearly 10 hours each day is spent logging on to their work from home especially during their Christmas break.
According to Demon Broadband’s survey 86 per cent from a total of 568 customers revealed they would be working from home during the Christmas break due to broadband access. 61 per cent believed that it was unavoidable while 4 per cent revealed that they would be working for longer hours from home then they ever had from office.
Matt Cantwell, Head of Demon commented: “We’ve identified a growing trend for Brits to work from home even at the unlikeliest of times. As a nation we’re no longer restricted by set working hours and are often the most productive when working whenever and wherever suits us best.”
“It’s also clear that we’re increasingly dependent on technology to support our preference for flexible working. With tube strikes, winter illness and the ongoing snow chaos, remote working is no longer a ‘nice to have’, but a necessity.”
”We can see from our research that new technologies, such as mobile broadband deals, smartphones and faster internet connections, are allowing more people to work from home when they need to, helping them to manage their work/life balance. Whilst these technologies can mean we’re constantly connected they also give us the much needed flexibility to keep on top of our work without having to disrupt family life by leaving for the office.” added Cantwell.
200Mbps powerline broadband to trial in Liverpool
Liverpool is all set to try out the 200Mbps powerline broadband which will be offered to 1000 homes across the city.
The powerline technology involves accessing super fast next generation broadband speeds using existing power cables. The technology is considered powerful enough to deliver broadband Internet access to buildings along existing national grid power cables. The theory being that the broadband signals would be transported via the electricity grid at different wavelengths to electricity signals.
The PLC theory was mentioned five years ago by SSE Telecom, but since then has been plagued with regulatory and technical issues. The technology was considerably more challenging then the emerging copper based fibre technology currently in use which was also far cheaper. But the idea has been revived after the announcement of the ‘Britain’s Superfast Broadband Future’, last year according to which the government has vowed to offer super fast broadband speeds to all of UK by 2015.
The Dec 2010 Broadband Strategy has been quoted as saying: “3.14 An alternative option is powerline communications (PLC), which uses the electric power network for the transmission of broadband. In some cases, this may be the most effective method of delivering higher bandwidths, but we expect this to be fairly limited, primarily as the cost of deployment and providing services is relatively high. We are also mindful of the potential impact this may have on radio users, with interference a possibility at higher frequencies. This could include interference to broadcast radio, aeronautical radio and navigation services.”
The Broadband over Power Lines (BPL) technology, as it’s also called, was considered as dead as a dodo until the report in the Liverpool Daily Post which declared that the trials for the same will commence shortly. This report was accompanied with the report on Smart Meter installation which will soon be made a compulsion for all UK households. It allows users to see exactly how much electricity and gas they are using and relay the data to energy firms automatically. It has been assumed that this will also help save money to install the PLC technology.
Mark Knowles, a Low Carbon Economy Manager for The Mersey Partnership (TMP), said: “This is another option to deliver super fast broadband without having to dig up streets. Since July, things started happening with equipment being put in. We have 12 substations in that area that we have been working on in a fairly low key way to avoid cable thefts.”
The Liverpool City Council has decided to go ahead with the trials under the name Project SmartGrid which aims to install this in new build development from Plus Dane Homes, alongside the new smart meters. The project will be the combined effort of Scottish Power and Plus Dane Homes.
The project has its own set of issues from interfering radio signals to broadcasting air traffic communications. Hence though successful it has been questioned whether the technology could possibly be rolled out across UK.
LTE for UK rural broadband service tested by Arqiva and Alcatel-Lucent
Media services company, Arqiva, in partnership with Alcatel-Lucent has announced the launch of LTE trials reaching speeds of 50Mbps for mobile broadband service in the Preseli Mountains of West Wales.
The UK trial uses the 800MHz spectrum freed up by digital TV switchover with next generation mobile broadband speeds. The trial is very similar to the trials being conducted on Caradon Hill area of East Cornwall by Clear Mobitel.
The geographical significance of the Preseli Mountains is the fact that the population is sparse and fixed line broadband service becomes economically unviable for such regions by offering wholesale access to all ISPs. Hence the trails seek to demonstrate the economic viability of neutral-host wireless network which will offer a route to extending broadband coverage into ‘NotSpot’ areas. Shared infrastructure, combined with a single network interconnect, provides the service provider with a far more cost-effective means of accessing a potential market of up to 2 million households.
Steve Holebrook, MD of Arqiva’s Government, Mobile and Enterprise business, said: “Arqiva’s heritage in rolling-out projects of critical national infrastructure is matched by our long-standing commitment to providing solutions that are universal in their delivery. We firmly believe that the combination of LTE technology, the 800MHz spectrum and a neutral-host commercial model is the best way of providing rural communities with broadband quickly, efficiently, and cost-effectively.”
Arqiva believes that 10% of the UK households reside in areas that are unable to receive even 2Mbps broadband speed which is hinged on factors like poor home wiring, fixed line faults, ISP congestion and other similar factors. Therefore the media company belives LTE could be a more then adequate replacement for not just fixed line broadband but also Wi-Fi.
Satellite broadband has also been acknowledged as a valid option but its higher latency and exorbitant expenditure makes ISPs think twice. But since Arqiva’s consumer cost on trials has still not been calculated comparisons seem redundant.
