Partnership imperative to sustain hyper-growth, highlights from VMB’s altnet assembly

At the end of June, Virgin Media Business Wholesale hosted a networking evening for UK altnets to share their ambitions and challenges, given the rapid expansion of gigabit-capable services in recent years.

The event provided a forum where fibre providers were able to explore the complexities around fibre and network infrastructure rollout, as well as find new ways that partnerships could be leveraged to achieve common goals.

Diego Tedesco, Wholesale Fixed Director at VMO2 Business, said: “We wanted to have a conversation with altnets on how we can jointly tackle the challenges ahead, given the rapid expansion of gigabit-capable services we’ve seen in recent years.

“We’ve been working with mobile operators to support 5G backhaul while providing backhaul to major UK and international fixed carriers. We want to share infrastructure, knowledge and resources with altnets to upgrade the UK.”

Creating the right environment for investment

One of the topics at the top of attendees’ minds was the fibre tax and what the end of business rate relief means for the industry.

Privately funded network expansion and upgrade programmes have helped drive new regional competition and connect more people to gigabit services.

“Altnets make up a hugely important part of the UK broadband landscape and are working hard to accelerate gigabit connectivity across the land - especially in less dense and often rural locations,” said David Burns, Chairman of the UK Wireless Internet Service Providers Association.

Attendees discussed the need to ensure the right environment exists to support privately funded network expansion and upgrade programmes – programmes which will bring gigabit broadband and 5G services to even more homes and businesses across the country.

VMB discussed its commitment, from partnerships with the public sector to discussions with policymakers and working with the Government to make sure enough fibre is put in the ground.

Investment in the UK itself is key, with the joint venture between Virgin Media and O2 pledging to invest £10bn over the next five years.

Network challenges

Another hot topic at the event was Openreach’s planned exchange closures. Many attendees raised concerns about the impact on long-term network planning and investment decisions which, as the Independent Networks Cooperative Association (INCA) recently highlighted, “almost inevitably affect all telecoms providers in the UK that use any Openreach services.”

Celebrating the growth achieved in recent years was high on the agenda, as service providers reflected on the progress made rolling out fibre across the country. But there was a desire for assurance from altnets looking to find partners they could trust when it came to backhauling their networks.

Will Rhodes, CMS Consultant of telecommunications equipment company Ciena said: “The FTTx marketplace is booming with new entrants coming into the market, vast investments being committed, and an exponential growth in the number of homes passed.

“This hyper-growth situation creates challenges for the altnets’ network delivery programs. They are often looking to share ducts and resources with third parties - which at face value should be efficient but often comes with hidden costs and complexities.

“It is imperative to partner with backhaul solution providers and technology vendors that are reliable, flexible, and committed to supporting the altnets on their growth trajectory through these and other challenges."