The fiber “gold rush” in Great Britain is potentially a preview of what is in store for the U.S. in the coming years, according to Richard Sinclair MBE, Chief Operations Offers at Zzoomm PLC—an alt-net that has rolled out a full-fiber broadband network to over 100,000 homes. On this week’s episode of the Fiber Broadband Association’s Fiber for Breakfast series, Sinclair explored lessons learned on UK’s full-fiber journey that can applied to the U.S.’ mission to close the digital equity gap.
In 2019, the UK Prime Minister set an agenda to enable a minimum of 85% of the country to access full-fiber and gigabit-capable broadband by 2025. Large incumbents in the UK market developed their own strategies leveraging VDSL or DOCSIS upgrades that would allow them to hit gigabit speeds without the need for a full-fiber solution. In 2020, the UK exited the European Union during Brexit and the need to compete with the world increased overnight. “The UK needed to ensure that we had significant digital economy growth. I read that the government estimated that there was nearly £151 billion contributing to the UK economy from the digital sector, underscoring the importance of full-fiber coverage in the UK,” Sinclair explained.
That is when the UK fiber gold rush began and it separated the market into categories that include large incumbent networks and over 100 new alternative networks (alt-nets). The alt-nets have connected 12 million full fiber homes over the past five years and are now facing the next step in their evolution: buy or be bought.
Sinclair predicts there will be a significant amount of network acquisitions in the next decade, with either larger alt-nets purchasing the smaller alt-nets, or the large incumbents purchasing a number of the alt-nets. Either scenario drives considerable complexity into the broadband network due to the huge build differentiation and lack of plug and play capability across the networks and for in-house customer equipment. This complexity can be detrimental to the customer experience as well as investment value, and something Sinclair thinks the U.S. should take into consideration as it experiences its own fiber gold rush.
“What I think is an important take away is that the U.S. has an opportunity to maximize customer experience and the value that comes from infrastructure investments,” Sinclair offered. He urged that the development of a universal standard for network architecture principles could remove complexity and allow for more seamless business combination in the future. Networks that are easier to integrate will be more attractive and hold more value to investors, he added.
Sinclair also noted that these principles could drive a better customer experience in the long term. He said, “Imagine there is a network integration that makes the customer experience easier, where they inform and discuss with their neighbors how enjoyable their journey was moving to a different brand. I have absolutely no doubt that drives economics because customers beget customers.”
To learn more about Sinclair’s suggestions to increase U.S. broadband network value and customer experience, listen to the Fiber for Breakfast podcast.
This episode of Fiber for Breakfast is brought to you by our Platinum Sponsor Wesco.
