Monday, 23 August 2010

Sewer Broadband Plan Scrapped

The UK’s sewers might not be your first thought when it comes to super fast broadband networks, but in Bournemouth, it did hold out the hope for a bright new internet and telecommunications future.

But not anymore. Wessex Water has reportedly pulled out of a project giving access to their sewers to fibre optics company i3 Group. They had planned to install a "super-fast" 100Mbps Fibre-to-the-Home ( FTTH ) fibre optic broadband ISP network around the city of Bournemouth.

As we have pointed out in various Callagenix blogs, unless the UK starts installing a meaningful superfast broadband network, the country will lag behind others in the future of digital communications and this could have unfortunate ramifications for the long term economic recovery.

On the face of it, using an existing network such as sewers makes great business and practical sense. Sewers are a major physical portal which already run underneath all cities, towns and villages in the UK. Using such a ready-made network would seem a great idea.

But there’s more to it that. Some clue as to why the project didn’t get off the drawing books is contained within the Wessex Water explanation.

Ian Drury, a spokesman for the water company, said:
“The reason the project in Bournemouth didn't move forward was because there were contractual problems. The technology methodology didn't work for us, nor did the reward for placing the cables in the sewers.

“We would certainly look at other proposals should they arise, if the terms and conditions are right for us. We haven't ruled out putting fibre-optic cables in sewers.”

So there we have it. Sewers are being used in other cities, so the technology can’t be a deal-breaker.

One suspects that it comes down to the usual problem, money. In boom times, many company directors are willing to take on grandiose long term contracts that have beneficial returns decades ahead. But when times get tough, those same directors are well aware that their investors are breathing down their necks inspecting every deal and wanting shareholder value above all else. To take on a project which could see valuable investment literally poured down the drain if things go wrong, is just too risky at the moment.

The possible more tenacious i3 Group has arguably more to gain from the deal and according to reports in the media, is a little frustrated about Wessex Water’s decision. i3 Group rightly points out that unless the UK gets a proper fibre-optic network, the current copper network is going to limit crucial broadband speed expansion.

And as the local newspaper in Bournemouth wryly points out, that much to the dismay of the City’s residents, if the cables can’t be laid in the sewer network, then roads and pavements will be continually dug-up for years to come.

But the solution may be around the corner. Ofcom, the regulator with some teeth, is pushing for legislation that forces infra-structure providers to make their networks available to such companies as i3 Group.

A brave new future is then still perhaps just around the corner. But they had better crack on!

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