As the UK government and internet service providers (ISP) community continue with the Project Gigabit programme that aims to bring ultrafast broadband coverage to 85% of the country by 2025, the industry is at a pivotal moment, with the key issues to be faced centred not so much around accessing the materials for buildout and installing infrastructure, but concerning connecting users and building a strong business case for investors to continue to support their work.
This is among the key findings of the 2024 Telecoms procurement research report, written by procurement specialist Altnets in partnership with the Internet Service Providers’ Association (ISPA). The report reviewed the current UK fibre-to-the-home (FTTH) sector and the progress of its deployment.
The authors suggest that UK fibre operators can ensure future commercial success built on robust network infrastructure by adopting procurement strategies that supplement in-house operational teams, such as the industry expertise available through supply chain consultants that offer fully managed services and advice.
They add that the longevity that persists beyond the completion of building full-fibre networks in the UK will not just be local social and economic benefits, but the development of national skillsets for deploying rapid utility and technology upgrades.
This, said IPSA and Altnets, could be vital to the UK’s future, as other network infrastructure renewal will be required over the coming decades. In addition, they say the fibre industry should be seen as the leading light for future infrastructure upgrades, with its approach having enabled the rapid deployment of an emerging technology and that this will result in shaping the UK as a leading technology nation in the world.
Importantly, the report stresses that the challenges faced when building full-fibre networks across a unified country with devolved national and local government structures, internal and external market pressures can only be overcome by organisations that value their supply chain.
The report also highlights the pivotal role of alternative network providers (altnets) in driving the pace of full-fibre availability in their regionalised build areas and technology innovation within the sector. Citing a May 2023 study from INCA, the Independent Networks Co-operative Association, Altnets and ISPA noted that altnets were on track to reach connection levels of 14.2 million of UK premises by the end of 2023, but build rates had slowed since this forecast was made, and there were challenges ahead for the altnet industry. Among these was uncertainly among investors regarding return on investment.
In addition, the report warns that hitting the Project Gigabit target requires a rapid delivery pace. It noted that due to the speed at which builds were being rolled out, design and surveying teams sometimes cannot provide accurate data to forecast for future material demand. Moreover, a lack of forecasting affects all levels of the supply chain, as, said the report, manufacturers do not fully understand future demand, and therefore cannot plan accurately.
Yet, in conclusion, the report says UK fibre operators can ensure future commercial success built on robust network infrastructure by adopting three key procurement strategies into their organisations: knowledge, pace and quality.
