back to article 'Tech' City hasn't got proper broadband and it's like BT doesn't CARE

An MP has told Parliament she was left "shocked and surprised" by BT's response that it was "not commercially viable" to improve broadband access for one of 38 Tech City businesses petitioning for more reliable speeds. In May, 38 businesses from Tech City signed a petition complaining about the slow, unreliable broadband in …

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  1. dogged

    > wholesale installation charge for our 1Gbps service falling by 46 per cent to only £54,000 per installation to cite just one example. Now please excuse us while we claim another government subsidy to extend our double-Olympic sized money pool.

    Hey BT. Fixed that for you.

    1. Alan Brown Silver badge

      Only £54k? That must be an area with competition.

      Because we wanted diversity, BT tacked £220k on their most recent quote for us.

  2. Steve K

    Revenue !=Profit...

    > But Thornberry said: "We need to look hard at BT’s arguments. Is it necessary for state aid to subsidise BT? After all, Openreach generates £5bn of revenue each year."

    I think she is confusing Revenue and Profit here. Whilst I don't doubt that BT Openreach are making a profit on that £5bn of revenue, here statement on its own does not follow.

    1. hplasm
      Stop

      Re: Revenue !=Profit...

      Indeed. Should have stopped after "Is it necessary for state aid to subsidise BT?"

      1. Tom 7

        Re: Revenue !=Profit...

        But in these days you can run at a loss for tax purposes and still buy up large parts of the tropics and boats to cruise there.

    2. tony72

      Re: Revenue !=Profit...

      She said revenue, so I think it's fair to say she meant revenue, she will have used that instead of profit because it's a bigger number, not because she doesn't know the difference. Politics, like marketing, always goes for the biggest number that's vaguely relevant.

      Can't be bothered digging further for the current figure, but the first Google result says that Openreach made 711million euros profit off of 5.2billion euros revenue in 2013, which is a pretty decent ratio.

      1. Anonymous Coward
        Anonymous Coward

        Re: Revenue !=Profit...

        "Openreach made 711million euros profit off of 5.2billion euros revenue in 2013, which is a pretty decent ratio"

        It's a bloody marvellous ratio for a de facto monopoly.

  3. Anonymous Coward
    FAIL

    Well that was well thought out.

    Build a tech hub at a site with shit comms.

    Nothing like a bit of forward planning there.

    1. Anonymous Coward
      Anonymous Coward

      Re: Well that was well thought out.

      That's what comes of using the overcrowded rat infested shithole of London to do business in.

      1. Anonymous Coward
        Anonymous Coward

        Re: Well that was well thought out.

        Especially when most of the IT industry isn't even in London. There is still plenty of Cambridgeshire, Wiltshire, Oxfordshire, and that's just places with well known universities and motorways back to London for the sales bods.

        1. Anonymous Coward
          Anonymous Coward

          Re: Well that was well thought out.

          "most of the IT industry isn't even in London"

          Yeah, but when you're a Presentation Layer Person, London's the only place to be.

  4. Anonymous Coward
    Anonymous Coward

    We had to wait something like 9 months for fibre due to duct congestion - despite being 100 yards from the exchange and intervention from the CEO of Openreach IIRC. Absolutely incompetent.

    1. Anonymous Coward
      Anonymous Coward

      I have a FTTP mini cab on the telephone pole that is outside my house, it has been there for months. We are still waiting for any sign that fibre broadband will be available any time soon.

    2. chris 17 Silver badge

      if you knew what you where talking about you'd understand why it took so long. i'd be pretty pissed if some telco yanked my fibre to give to you because of congestion. to uncongest they need to re route which requires planning and potential outages to customers that might not be in your geographic location but some where on the ring that services your cab/exchange. providing reliable comms is not as easy as just plugging a cable in, the reliability comes from careful methodical planning & despite the fashion for bashing BT, considering the traffic they transit for essentially all uk ISP's (yes even VM) the system on a whole is very reliable and resilient.

      If these guys wanted faster internet access they should have ponied up for a proper business dedicated internet connection (MPLS over something service) instead of relying on a cheap as chips residential or small business broadband connection.

      If you want a resilient connection go dual carrier with diverse routes. It costs a fortune, requires careful methodical planning & you'll need some skilled network engineers to ensure it runs smoothly all of which costs.

      1. BongoJoe

        To be fair it would be right to assume that If these guys wanted faster internet access then they should look for premises in a TechHub.

        1. Roland6 Silver badge

          Re: @BongoJoe

          "To be fair it would be right to assume that..." the owners of a 'TechHub' ensure that it has the necessary services to support their claims. Me thinks the various business owners who located in London's 'TechHub' actually have a case against the owners for misrepresentation...

          Hence what is interesting about this case isn't that individual businesses within the TechHub are complaining, is the total lack of any comment from the TechHub's owners/operators.

  5. Anonymous Coward
    Anonymous Coward

    > But Thornberry said: "We need

    This is the same person who's council signed an outsourcing deal on it's benefit service to ITNet and then tried to evict people because the council fell behind paying itself housing benefits for them.

    And who's hosing stock is deteriorating fast due to a 30 year PFI deal with Partners

    Hey Emily, sort out your existing problems before the "Shoreditch spoilt rich kids" issues

    1. McToo

      Good ol' Emily

      Commercial viability - probably not a phrase that the vacuous tub of lard is familiar with.

      Trying to get back onto the front bench?

      Sort out existing problems? Nah, that's too difficult, better go for a nice soundbite to release to the press. Maybe 'weird Ed' will forgive me for being a hypocritical champagne socialist.

      Emily! Look! It's a white van, with a cross of St. George on it!

      1. LucreLout

        Re: Good ol' Emily

        Emily! Look! It's a white van, with a cross of St. George on it!

        Wait... THIS is the same vaccuous empty suited trougher responsible for that? FFS. Labour needs to take a good long hard look at itself and make some changes.

        No more political dynasties, no more ex-union leaders, no more career politicians, and abso-feckin-loutely no more lawyers!! You're supposed to be the party for the people, and you'll only be able to regain that by becoming the party OF the people, which, you're an awful long way away from being.

  6. Truth4u

    THE INTERNET IS TUBES

    And if those tubes are filled, the internet is going to be delayed!

    I'm with BT on this one.

    1. Alister

      Re: THE INTERNET IS TUBES

      I'm with BT on this one.

      I'm not. BT has lots and lots more tubes, it just won't let anyone play with them.

      1. Roland6 Silver badge

        Re: THE INTERNET IS TUBES @Alister

        "I'm not. BT has lots and lots more tubes, "

        Your forgetting the shortage of tubes in central London, is the main reason why COLT was such a success, as they were able to identify a set of forgotten 'tubes' which could be re-used for telecoms...

    2. This post has been deleted by its author

  7. LazyLazyman

    Financially viable.

    So there is a choice for these businesses, but it's not financially viable, but they say it is for BT... Ok...

    Never take the governments shilling, you will either be bankrupt and labeled incompetent or make money and labeled a thief and incompetent.

  8. William Boyle

    BT in GB and AT&T in the US

    Neither of these giants of the telecom industry have any interest in providing better service. They want to suck out every penny they can from existing infrastructure and accounts. The only way to force the issue is to remove their lucrative subsidies from the government and penalize them when they don't work on improving the infrastructure and speed of service to the premises.

    1. Lysenko

      Re: BT in GB and AT&T in the US

      @William

      "They want to suck out every penny they can from existing infrastructure and accounts. The only way to force the issue is to remove their lucrative subsidies from the government and penalize them when they don't work on improving the infrastructure and speed of service to the premises."

      Basic infrastructure with a natural monopoly (you can't have 56 different companies tearing up roads and hanging spaghetti from poles) should never have been privatised in the first place. Unfortunately, with the exception of roads, Politicos live in some bizarre alternate universe where private monopolies are a good thing (rail, water, gas, electricity).

      Re-nationalise OpenReach and run it on a not for profit" basis. The GPO put in half the sub surface trunking at public expense anyway. No need for debating special subsidies or handing out £3000 grants to companies (as a pass through subsidy to OR) who happen to be based in one of 22 marginal constituencies special priority areas.

      1. chris 17 Silver badge

        Re: BT in GB and AT&T in the US

        i agree in principle but openreach staffed by civil servants would be an absolute joke. the unions would be all over it (after BT managed to rid itself of that infection), wanting to hold us all to ransom, there would be no innovation and no drive to cut costs anywhere.

        1. Lysenko

          Re: BT in GB and AT&T in the US

          @Chris

          I agree. It is a tough call. I've been a "Civil Servant" (MoD and DoE) and I've seen that sort of thing first hand. However there are also pockets of damn fine efficiency to be found. For all its faults, British Rail still did a better job than Network Rail and the laughably useless train operating companies and the Highways Agency isn't the total disaster I would expect with Virgin and Stagecoach in charge of roads.

          The situation now is you have OpenReach playing for profit AND delivering the sort of customer hostile arrogance that characterises the Civil Service at its absolute worst. Simply getting a coverage map of upgraded cabinets in an area we were working in required escalating the query to Whitehall! (we were working for a government department). Contacting OR as a regular business, they wouldn't even answer the damn phone, just played a recorded message telling us to ask BT. Naturally BT didn't know and OR wouldn't tell them either (I was on the conference call). Getting anything done ended up requiring the involvement of a G5 Civil Servant anyway (that's Deputy Director level - about equivalent to a Brigadier in the Army).

        2. This post has been deleted by its author

      2. Anonymous Coward
        Anonymous Coward

        Re: BT in GB and AT&T in the US

        "Basic infrastructure with a natural monopoly (you can't have 56 different companies tearing up roads and hanging spaghetti from poles) "

        That's not quite true in large cities. There are alternate last mile networks - the density of potential customers makes it economically viable for a non-incumbent to install their own spaghetti. That's true globally - there's likely to be last mile competition in large cities wherever they are.

        The issue here seems to be that the company mentioned doesn't want any of the high speed business services available from whoever serves the building and instead wants a domestic, consumer service to be delivered to a business district.

        From the City of London's own website;

        "If you are sourcing a new or additional telecommunications circuit, you will need to find information about tier 1 telecommunications operators or “telcos” in your area. The City is served by 13 telcos each with its own fibre optic network deployed in the ground."

    2. Bluenose

      Re: BT in GB and AT&T in the US

      Of course they want to suck every penny out of the infrastructure, it cost them (or in BT's case the British taxpayer) hundreds of millions if not billions of pounds to implement that infrastructure and will now cost billions to upgrade it. The whole purpose of capitalism is to maximise the return from an investment in order to earn a profit and create the capital needed for future investments. Dumping an infrastructure before it has paid for itself or created the capital to replace it is a dumb idea.

      In fact it is almost as dumb as a politician demanding that BT provide a service to their constituents. Why should BT have to be told what to do, if it believes it can maximise its profits by providing services elsewhere then that is its right as a private (although shareholder owned) company. If the politician really wants to be able to dictate where business invests its cash and seeks its profits then nationalise the company so that you have the right to make that demand.

  9. batfastad
    FAIL

    Infrastructure

    Considering the tax-payer is giving BT a decent amount of dosh for the FTTC roll-out (apparently ASA rules they can call this "fibre") I presume the tax-payer will then own all this infrastructure and will charge BT Openreach Whoever PLC for using it in the future to recoup the investment. Wait, what?

    However in this case I sort of agree with BT. Decent commercial business-grade connections are available throughout central London from many suppliers. If you're a hip startup with no cash, no product to speak of, no sales to speak of and shopping in the residential market, then you have to wait your turn like any other residents. What, hardly any residents in your area?

    There are lots of other small businesses and humans you know, outside of lucky lucky London. I live in London with sh*t ADSL and sh*t ADSL is all I need.

    I would make the same argument I made about the 'lympics. If anywhere needs the cash spending on infrastructure it's definitely not London. Regardless of what some oik London politician says, in London.

  10. Tom Wood

    Business class...

    We're a SME (about 60 staff) based in Yorkshire. We recently moved buildings into our own office and had our own fibre installed (100 Mbit symmetric). No doubt this cost a fair chunk of money, but if you want a business class service you can get one if you pay for it.

    This might not be affordable for smaller businesses but if decent connectivity is important to you then I'm sure you'd make sure it was available (e.g. in a shared office facility) before signing a lease?

    1. cs94njw

      Re: Business class...

      2.5 minute video taking 9 hours? Even a 2 Mbps line would cope with that.

      So BT isn't even providing that much speed to an average customer?

      Is 2.5 minutes of video a high bandwidth usage customer?

      1. Martin an gof Silver badge
        Boffin

        Re: Business class...

        2.5 minute video taking 9 hours? Even a 2 Mbps line would cope with that.

        Uplink speeds on typical domestic ADSL2+ range from 500kbps to 1500kbps - note that uplink speeds are slower than downlink speeds, and this is a "film production company" so it'll presumably be high quality video intended for a client.

        It'd have to be a client that really cared about quality and couldn't wait for the post to arrive next day though :-)

        500kbps for 9 hours = 15.8Mbits total

        15.8Mbits / 150 seconds = 105Mbps average video bitrate, which is a bit high, even for Apple ProRes (note, a standard "HD" camera will record at no more than 24Mbps), though I did once receive a video from a production company; 14 seconds totalling about 1Gbyte, or 660Mbps!

        Ho hum.

        M.

        1. Roland6 Silver badge

          Re: Business class...

          >2.5 minute video taking 9 hours?

          Probably Ultra HD (3840x2160) (aka 4K) or DCI-4K (4096 x 2160 - the movie projection industry standard)...

          Hence professional video work - which implies the company was seduced by the idea of being based at the TechHub rather than taking a hard-nosed business decision and overlooked the comm's problems; or perhaps they were young and hip and thought they would save money on not having to use a courier to carry a tape across London.

          1. billse10

            Re: Business class...

            "Hence professional video work - which implies the company was seduced by the idea of being based at the TechHub rather than taking a hard-nosed business decision and overlooked the comm's problems; or perhaps they were young and hip and thought they would save money on not having to use a courier to carry a tape across London."

            Does sound like they made a decision, aren't too happy with how it panned out, and now some MP is trying to get free publicity off the back of it (rather than actually doing anything).

        2. Jamie Jones Silver badge
          Happy

          Re: Business class...

          "500kbps for 9 hours = 15.8Mbits total

          15.8Mbits / 150 seconds = 105Mbps "

          Of course, where you say "15.8Mbits" you mean 15.8Gbits!

  11. Longrod_von_Hugendong

    We cannot spare the money to hook you up...

    We just spent £12 billion quid on a mobile operator, although we sold the one we had and want it back now.

    sorry, looks like you are shit outta luck today.

    1. Doctor Syntax Silver badge

      Re: We cannot spare the money to hook you up...

      "although we sold the one we had"

      Not even that. It was demerged as a separate company, AFAIK because BT didn't like the amount of money paid in the spectrum auction.

      In fact, I wonder what it actually cost BT to do that. Staff TUPEed into O2 at the time would have been in the BT pension scheme. Presumably there would have been a pension scheme with equivalent benefits set up for O2. If the BT scheme hadn't been in deficit it would have been a straight transfer of the appropriate proportion of funds from the BT scheme to the O2 scheme. But as the BT scheme has been in deficit for years did BT have to add in extra to make up for the shortfall?

      1. Matthew 3

        Re: We cannot spare the money to hook you up...

        Speaking as someone who has been TUPE'd, you don't get 'equivalent benefits'. You get the same basic terms of employment, the same basic salary, and length-of-service treatment. But anything above that (sharesave, pension etc.) is out of scope. You get what the new firm chooses to give you.

        BT probably saved a small fortune.

  12. kingwahwah

    BT need their money to gain a monopoly...

    ...on TV Sports so they can hold the UK to Ransom again. £1.2 Billion on football alone.

    It's time to completely split Openreach from the rest of BT Group. BT Retail would suddenly have to compete fairly against the rest and not have £1.2b+ in spare change . I'm having 120 broadband lines fitted over the summer by Openreach, BT Retail have nothing to do with it.

    1. Alan Brown Silver badge

      Re: BT need their money to gain a monopoly...

      "BT Retail would suddenly have to compete fairly against the rest and not have £1.2b+ in spare change "

      BT Openreach is required to treat all players fairly and equally - but not to make it easy for them to deal with it.

      BT Wholesale is not obligated to make a profit when selling to BT retail.

      I'll keep pointing to the NZ experience. After several decades of monopoly abuse following on from privatising post office telecoms, NZ looked closely at the Openreach setup in the UK - and forced Telecom NZ to demerge its lines operations. The transformation of the lines side (Chorus NZ) after having been released from the shackles of the incumbent's determined anticompetitive behaviour is nothing short of startling.

  13. Tom 38

    Sympathetic - to a point

    The cited case is of a "hi tech firm"* in the most connected part of the country, doing things with digital media, who decided "Wow, this place is awesome to set up our business, it's cheap, there's a trendy barrista on the corner and we're only yards away from the Spread Eagle!"

    They didn't take in to account highly available network connectivity, or they would have chosen somewhere where they could get cheap connectivity.

    Another option, if you make your money in digital media, is to, y'know, fucking pay for a leased line like the rest of us. Available throughout London for less than a monkey a month, probably less than they spend on coffee.

    * They most assuredly are not, they are a hipster "digital agency".

    1. jason 7

      Re: Sympathetic - to a point

      Yeah if I was buying a house one of the first things I would ask when taking a look is to run a speedtest.net run from their broadband.

      I come across a lot of folks that have bought barn conversions out in the wilds of North Norfolk and then moan to me that they decided to buy a £850,000 property 4 miles from the nearest exchange and didn't bother to think about broadband.

      Satellite it is then! They can afford it, I saw a nice oil powered Aga in the kitchen there!

      1. Roland6 Silver badge

        Re: Sympathetic - to a point

        >I saw a nice oil powered Aga in the kitchen there!

        Another example of not thinking or asking the right questions. The ONLY Aga worth having is an original solid fuel one! Yes kits were available to convert them to oil but these could be ripped out and the Aga returned to solid fuel - an important consideration when living out in the wilds and potentially having lots of coppiced wood available.

        1. jason 7

          Re: Sympathetic - to a point

          I call them the 'more money than sense' crowd. Plus those oil fired Agas are a real treat in the summer when they still keep throwing out the heat.

          We worked out how much the oil ones cost to run and to be honest I'm surprised they are still legal.

  14. localzuk Silver badge

    The whole point - encourage new businesses

    Thing is, the whole point of providing cheap, fast internet is to allow small businesses to start up and grow. I know in some areas you can get 100Mbps symmetric leased lines for, what, £4k pa, but those costs are very variable. Where I am, those prices jump up to £12.7k pa, and 12 months ago they would've been £19k pa.

    Saying to a startup "pay ££££" is not exactly encouraging them is it? Saying "move to somewhere cheaper" is also not very encouraging - they might be based where the talent is. They might be based where their partners are etc...

    No, what they actually need is access to cheap, fast, internet connectivity. Subsidies may be necessary to kick-start the availability in the area, but the outcome will be greater tax income for the government and improvements in the local and national economies.

    1. chris 17 Silver badge

      Re: The whole point - encourage new businesses

      ~2004 the national organisation i was working for was paying £2.5k amortised per month per site for 256 -> 512 kbs atm leased lines across ~20 sites. Its expensive complicated stuff and costs. If you want the cheaper broadband but the isp has no capacity it'll cost them to add capacity which may not be economically viable for broadband but could be for a business leased line. I'm sure the company in question would take the same approach to any of their customers where the cost of doing the work would exceed the rate they could charge for it.

    2. Roland6 Silver badge

      Re: The whole point - encourage new businesses

      "Thing is, the whole point of providing cheap, fast internet is to allow small businesses to start up and grow."

      That is easily achieved by the owners of a TechHub, contracting for business grade circuits and then offering access to tenants - it's just another office service, companies such as Regus know all about this.

      "I know in some areas you can get 100Mbps symmetric leased lines for, what, £4k pa, but those costs are very variable."

      Not had to get involved in the details for a while, but from memory the price of a leased line is based on an initial premium plus some variable amount determined by line length.

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