Trickle down economics will the same thing work for broadband?

Will trickle down economics work for broadband?

Gigabit broadband is seen as such a must have now that we presume back in the 1970’s and 1980’s when a local authority switched stationery supplier this was also big news? The Scottish Government has announced Gigabit connectivity for 57 public buildings[1] in Aberdeen as part of a larger regional regeneration programme. It should be clear that with the GBP2 million cost spread between 57 buildings this is not your normal full fibre that you would expect as a home owner or local cafe (other small businesses too).

Upgrading 57 buildings in Aberdeen to Gigabit does not turn a city in a Gigabit one and it is still small fry compared to the measly 420 premises (residential and business) that have full fibre via the Openreach GEA-FTTP product set already. The key part to the picture is that Aberdeen is a CityFibre Gigabit city and it seems likely the GBP2 million spending announced today will mean the local council will become an anchor tennant on that network. The hope with the CityFibre roll-outs is that once one or more large anchor tennants are connected and a critcal mass of business customers that roll-outs will then take place to residential areas, like the trials in York and this news today means the recent Vodadone FTTH announcement might be relevant to Aberdeen.

To close it is all too often overlooked but full fibre business connectivity is generally available anywhere in the UK so long as the business has deep enough pockets which if in a city centre might be under GBP1,000 but could easily be in the GBP5,000 and more bracket for installation.

The monthly costs for a full business connection are also higher snce when you buy a Gigabit of business connectivity that is not shared, or put another way you are paying for what would otherwise be shared with 400 to 1,200 residential customers.


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