Estimates from Assembly Research found the costs of such a delay [around 18 – 24 months] to the economy as being being between £4.5 billion and £6.8 billion, using the Government’s own figures on the economic benefits of 5G.
Worklife – The Papers
Huawei curbs force UK telecoms groups to review 5G plans
Matt Howett, an analyst with Assembly, said that although the Huawei decision is important for the UK industry, it could have a negative effect on the economy if telecoms companies end up having to delay the roll out of 5G networks in order to comply with the cap.
“This will cost the economy if there is a material delay on 5G rollouts,” he said.
Johnson risks Trump rift after approving 5G role for Huawei
Should Huawei be banned?
Is there a third way to Huawei?
UK Government decision expected on Huawei
Full-fibre broadband to reach more of the UK
Matthew Howett, founder of research firm Assembly, sympathised with Openreach's frustration over business rates.
"It's a barrier that the whole industry is behind removing. Currently in England the exemption only lasts for five years, and 10 years in Scotland, but for the operators the business case for rolling out fibre is over a much longer period, often over 15 years."
He also acknowledged that "broadband, while digital, can still be a very analogue and labour-intensive job to install".
"As much as 70% of the cost of rolling out broadband is in the civil works - the digging, manual labour and road closures that go with it. So, any innovations that reduce these costs will ultimately result in broadband being deployed faster, and to more people."
Three million homes have access to full-fibre broadband
"As end-of-term report cards go, this is probably about as good as you can hope for," said Matthew Howett, founder of Assembly Research.
"The leap in the availability of full-fibre shows just how serious operators are in making up for lost time and how, with the right regulatory and political environment, they can go even further.
"Next year will be crucial for determining what that pace of rollout looks like as Ofcom is due to set out the rules for how such networks will be regulated for the next five years."
BT shares jump as it dodges Labour nationalisation
US to discuss challenges posed by China, 5G with NATO allies
Free Internet Is Proposed in Britain. Is It Even Possible?
A Labour Party plan to provide government-sponsored broadband service has raised questions about how it would work, and who would pay for it.
No other country provides free government-run broadband service, said Matthew Howett, the founder and principal analyst at Assembly Research, a firm that studies telecommunications.
The prospects of several other companies that compete with Openreach and have pledged billions in investment for their own initiatives would be thrown into doubt after the debut of a free government-run service.
“They all would disappear,” Mr. Howett said. “There is no way consumers are going to be paying them if they can get it for free from the government.”
“Superfast is good enough for today,” Mr. Howett said. “But it’s not going to be good enough for the world we’re entering in the 2020s and 2030s.”
Labour's free broadband and BT renationalisation plan criticised
Will consumers reap the benefits of free broadband?
Matthew Howett, principal analyst at Assembly Research, said the “wheels would come off” the competitive market if it was replaced by a “bland public owned corporation selling standard connectivity”. That would hit innovation and investment in new services as it is hard to compete with free.
He also asked whether consumers would look forward to dealing with government customer services every time they had a problem with their WiFi. “No one says BT is perfect. It’s excruciating to deal with but dealing with the government would be like pulling teeth. It will be a nightmare,” he said.
Will fibre broadband be obsolete by 2030 - and what about 5G?
But full-fibre broadband, where ultra-fast optical cables carry data right into your home or office, is currently the "gold standard".
"There is no doubt that we need fibre connectivity, in particular all the way to the home. That's something everybody is on board with across the industry and political parties," said Matthew Howett, an analyst at Assembly Research.
However, the government plans to auction lower-frequency spectrum - freed up from the digital TV switchover - for 5G services.
"The 700MHz frequency band that will be auctioned is good at covering large rural areas," said Mr Howett. "Anything freed up from that switchover from analogue to digital TV means you can reach more people with fewer base stations."
How feasible is Labour's free broadband plan and part-nationalisation of BT?
Would nationalising broadband work?
Australia has tried to do this with its National Broadband Network and it has been branded one of the biggest infrastructure failures in its history. Set up in 2006, the government’s plan was to roll out full fibre to 93% of all premises, although over the years this was watered down to a “multi-technology mix” using different technologies offering varying levels of speed and service to consumers. “Only one other country in the world has come close to going down this route, Australia,” says Matthew Howett, the principal analyst at telecoms research firm Assembly. “And for a good reason – it’s hard, expensive and fraught with difficulty. Australia’s NBN is years late, massively overbudget and offering speeds and technology a fraction of the original political intention.”
Four reasons to fear Labour's plan to part-nationalise BT
At telecoms giant Telstra’s October AGM, chairman John Mullen claimed all Australians would have access to high-speed internet at a “fraction of the cost” if the government had not proceeded with the project.
Matthew Howett, principal analyst at Assembly Research, agrees: “Only one other country in the world has gone down this route, and for a good reason. It’s hard, expensive and fraught with difficulty. Australia’s NBN is years late, massively over budget and offering speeds and technology a fraction of the original political aim.”
Labour's free broadband plan sparks industry fears
Analysts warned that state control of Openreach could bankrupt rival cable providers such as Virgin Media, whose cable network covers half the UK, as well as TalkTalk and smaller challengers.
“What would the poin of their existence be?” said Matthew Howett, an analyst at Assembly. “They would fall away overnight. It would add to the lunacy.”
BT Openreach: Labour's British Broadband plan and what it could mean for you
Some commentators have argued that Openreach needs a shake-up regardless. Customer satisfaction is low and there have been long delays launching faster broadband in the UK. Only around 10pc of the UK has access to full-fibre despite years of promises.
Matthew Howett, the principal analyst at Assembly Research, pointed to a similar approach in Australia which has caused delays for customers.
“Only one other country in the world has come close to going down this route, and for a good reason – it’s hard, expensive and fraught with difficulty,” he said. “Australia’s NNB is years late, massively over budget and offering speeds and technology a fraction of the original political intention.”
