Full fibre reached 50% of premises in March, but take-up is only 9.6%
BroadbandUK has analysed data from Ofcom and found despite the UK Government’s push to deliver Project Gigabit, uptake isn’t matching the greater availability of full-fibre, gigabit-capable broadband.
The latest Connected Nations 2022 report by Ofcom, based on data collected in May 2022, shows a shift away from standard speed <30 Mbps to so-called superfast connections of 30-300 Mbps). There is less enthusiasm though for ultrafast/all fibre connections, that is above 300 Mbps.
What is Project Gigabit?
The UK Government’s Project Gigabit aims to connect 85% of the UK to gigabit-capable broadband by the end of 2025. Last winter, it said it had agreements with more than 200 suppliers to deliver gigabit-capable broadband to hard-to-reach areas across the UK.
Consumers and SMEs in rural areas can also apply for funding from the Gigabit Broadband Voucher Scheme to help them access gigabit-capable broadband. It has provided vouchers to over 37,000 properties across the UK.
Full-fibre availability
Earlier this year a statement by Ofcom’s Group Director of Network and Communications, Lindsay Fussell, announced full-fibre broadband is set to reach 50% of UK homes and businesses by March 2023 – a huge achievement given that the UK was only added to the FTTH Council Europe’s ranking of fibre penetration in 2019, having just managed to sneak over the 1% threshold and that was almost entirely due to the efforts of altnets while BT continued to squeeze everything it could out of its copper loop and xDSL.
No surprise that the BroadbandUK study identifies affordability as a major barrier to the adoption of Ultrafast broadband, which is more expensive than standard and superfast options. It also states, “Limited awareness among consumers about the benefits of Ultrafast connections and lower demand for faster speeds contribute to the slower adoption rate.”
Not so sure
Or maybe people are happy with the broadband they have and don’t feel the need to trade up? Or maybe lots of them think they’re already on full-fibre because they were sold connections as being fibre that were not all fibre, which Ofcom permitted.
And even if they would like to trade up, during the cost of living crisis, many UK broadband providers have hiked up prices way beyond the rate of inflation.
BroadbandUK recommends service provider prioritising affordability to encourage more households to opt for Ultrafast broadband and fostering competition among ISPs – although that of course tends to depend on wholesale pricing and that’s another whole can of worms, while network-based competition, as encouraged by Ofcom means people in cities might have two or more networks to choose from and those in rural areas one or none.
And finally, if people opt for ultrafast broadband at a special low rate during an introductory period, just how easy would it be for them to revert to a slower speed if they chose to?