SUB LOOP UNBUNDLING

OPPORTUNITIES& CHALLENGES

Background

• Small computer services company – David Lewis• LLU Telecoms Consultancy - Mark Melluish• Initial Plan to unbundle UK’s smallest county – Rutland• Delved further into SLU – to solve specific problem (Lyddington)• Observer ran small article on Lyddington 5th May 2009 – picked up by BBC Radio 4‘Today’ & Chris Evans Radio 2 ‘Drivetime’• Resulted in enquiries from across UK

Main Elements in SLU for Rural Communities

• Rural demand –niche opportunity• Capital cost of deployment: cabinet, power, backhaul, connection fees. Highly variable.• Running cost –viability threshold• Local service & support• Presence of PCP & accuracy of PCP data• Planning permission• Technical/regulatory issues

• PCP – Primary Connection Point• 90+k PCP’s in UK• All passive – no mains power• Various sizes• Some need upgrade

SLU – SUB LOOP UNBUNDLING

LYDDINGTON - WHERE?

LYDDINGTON - WHERE?

First Trial Customer – Location, location, location

• 5km from exchange• 2.3km from PCP• Past Speeds ADSL = 0Mbs - 0.3Mbps Maximum• New Speeds VDSL = 12Mbs -15Mbps (trial)• Number ported into VoIP• Streaming iPlayer demonstrated

First Trial Customer - A Room with a View

First Trial Customer – Screenshot of Download Speeds

SLU Fiscal Viability

Costs• Capital outlay (Lyddington) £45k (Lyddington raised £37k)• Running cost: backhaul, power, MPF rental <£20/monthRevenue• Revenue from line rental and broadband• Revenue from calls• Revenue from data e.g. streaming video: 2.5Mbps 4hrs/day = 136GB/month • Revenue from computer services• Revenue from key business: leased-line emulation• Future possibilities: FTTH, ANFP exemption

Challenges

• Capital outlay: Lyddington <£250/premises• ( Digital Britain report: up to £1750/premises )

• Galvanising local support• Openreach network -ECCs• Openreach PCP data• Openreach connection charge• Openreach disconnection charge• Openreach procedures• PCPs –none, many• Power supply• Cabinet aesthetics• Technical/regulatory /planning issues