Smaller broadband firms make connections to superfast future
ACCORDING to the latest Energy UK switching data, nearly five million people changed their energy supplier in 2016.
In December, the number of switches reached 449,921, up by 33% compared to December 2015. And 20% of those electricity switches in December were to a smaller supplier.
Following the shake-up of the broadband industry by Ofcom’s Connected Nations Report in December 2016, the trend of switching to a smaller independent supplier is now being mirrored in the broadband sector.
Smaller independent broadband providers, with their focus on customer service, have been hoovering up UK contracts to deliver broadband connections for hard-to-reach and rural areas.
Wireless broadband specialist Airband recently won the tender for the Superfast Cymru Infill Project contract from the Welsh Government to supply business premises in Cardiff, Newport and Swansea.
Initially, the Worcester-based firm is contracted to provide high-speed broadband to 2,000 businesses as part of an estimated £19m expansion to the original Welsh Government Superfast Cymru scheme.
“Poor broadband and low-speed problems are just as real for many out-of-town industrial parks as they are for rural farms and businesses,” said Airband founder and director Redmond Peel.
“In these areas, traditional fibre broadband deals are often slower and more restrictive – but it’s possible to bypass the fibre system and end up with some of the UK’s fastest broadband speeds,” he said.
Airband technical manager Jon Parkes said take-up of its south Wales scheme had been encouraging, with a notable cluster of firms from Baglan Energy Park in Port Talbot opting in.
“We have several business customers dotted across the south Wales area,” he said.
“Although the focus of the scheme was out-of-town businesses, we’ve also had opt-in from businesses in Cardiff city centre,” he added.
“Because fibre broadband connections are often supplying multiple premises, even some city-centre sites are unable to get high-speed internet – some have been struggling with speeds of around 8Mbs. We’ve been able to offer them 100Mbs, which they’re really pleased about, and then they start to tell neighbouring businesses, and the word is starting to spread.”
Using state-of-the-art wireless technology, Airband offers superfast broadband connection where fibre is not available. A signal is transmitted to a small radio receiver attached to the home or business. A cable is then run into the building, which connects to a router and completes the link in the same way as a typical fibre or ADSL connection.
In the broadband league tables, Wales fares quite well. The most recent Ofcom report showed that Wales has the best superfast broadband of all the devolved nations, with over eight out of 10 premises having access to superfast broadband – an increase of more than 50% compared to 2014 figures.
“Despite year-on-year improvement in broadband connectivity, there’s still some way to go before all businesses can access high-speed broadband,” explained Mr Peel.
“Providing better infrastructure and connectivity to Wales is a key part of the UK Government’s plan for growth. We know how crucial it is for business to have good-value, highspeed, quality broadband and we are proud to be part of helping make this happen.”
For many businesses across Wales, better broadband speeds can’t come quickly enough.
In June the Welsh Government released its consultation on the next stage of fast broadband release in Wales.
The consultation outlined the premises that cannot currently access superfast broadband and where telecommunications companies have no plans to reach in the next three years. Initially the consultation identified over 98,000 premises. The rollout will be backed by public sector funding of around £80m.
UK and Welsh government funding for rural broadband has mainly been deployed as grants or connection vouchers – with the majority of grant funding going towards BT. But, without strong enough competition, it has been difficult to guarantee value for money for the taxpayer.
Now, calls for greater scrutiny on the way public funding is deployed have opened up opportunities for loan funding and guarantees that can help lever in far more private capital.
And once again, it’s the independent suppliers who are stepping into the breach.
One way or another, connectivity is on the up.