Importance Score: 75 / 100 🔴
Openreach Seeks Streamlined Permits to Accelerate UK Fibre Broadband Rollout
Efforts to enhance the UK’s digital infrastructure could face hurdles as the sight of an Openreach van often sparks concerns about potential traffic disruptions. However, the company’s chief executive is advocating for measures to expedite fibre optic cable installations, aiming to deliver faster internet speeds to millions of homes across Britain.
Openreach CEO Urges Government to Ease Roadwork Regulations
Clive Selley, Chief Executive of Openreach, a subsidiary of BT Group, has called upon the government to simplify the process of digging up roads for laying fibre optic cables. He argues that the current system is inefficient and costly, impacting both Openreach and taxpayers.
‘Flexi-Permits’ Proposal to Streamline Planning Permissions
Selley proposes the introduction of ‘flexi-permits,’ which would enable Openreach to secure planning consent for multiple streets simultaneously, rather than requiring individual approvals from local councils for each road.
Addressing Council Workload and Boosting Efficiency
“We operate in streets, pavements, and roads, seeking permission approximately 300,000 times annually,” Selley stated from Openreach headquarters. “Councils are facing budget and staffing constraints, leading to a substantial administrative burden.”
He elaborated that flexi-permits would allow Openreach to group adjacent streets into ‘clusters,’ obtaining approval for these blocks collectively. “Accelerating this process would not only lessen the workload but also expedite our network construction and reduce costs for councils. It’s a mutually beneficial solution without requiring taxpayer funds.”
Opposition to Relaxing Roadwork Rules
However, Selley’s proposals face opposition, including from Conservative Member of Parliament Mark Francois, who is advocating for stricter roadwork regulations in Parliament.
Francois told The Mail on Sunday, “Openreach displays remarkable audacity. They’ve had ample time to deploy fibre networks and should have completed the task by now. Why should motorists endure further frustrating delays due to Openreach’s inefficiency?”
Push for Access to Apartment Blocks
Undeterred, Selley is also urging ministers to facilitate Openreach’s access to apartment buildings, a process currently hindered by the need for landlord permissions, some of whom are based overseas.
Addressing Landlord Permissions in Multi-Dwelling Units
“Many apartment blocks in London have owners with addresses registered to PO Boxes in locations like the British Virgin Islands, making communication and permission acquisition challenging,” Selley explained.
Linking Fibre Broadband to Renters’ Rights
Selley suggests incorporating the right to fibre broadband into the Renters’ Rights Bill, currently under parliamentary consideration. He highlighted the bill’s provisions, stating, “The legislation grants the right to own a pet, but not the right to fibre broadband access.”
Openreach Expansion Plans and Targets
These comments coincide with Openreach’s intensified plans to expand its fibre network to encompass 25 million homes and businesses by the close of the following year, an increase from the current 18 million.
Milestone One and Future Expansion Goals
This target represents what Selley terms ‘milestone one’ of Openreach’s fibre broadband expansion. The subsequent objective is to reach 30 million premises by the end of the decade. This expansion initiative has been Selley’s primary focus since assuming leadership of Openreach in 2016.
Focus on Rural and Remote Areas
The next phase will concentrate on more challenging-to-reach rural locations, which Selley anticipates will be a “gradual process” and “more intricate.” This includes extending fibre internet connectivity to remote Scottish islands, with Openreach deploying drones for transporting essential equipment from the mainland.
Fibre Broadband’s Role in Economic Revitalisation
Selley contends that extending fibre broadband to underserved rural regions could contribute to resolving the UK’s productivity challenges and revitalising efforts to ‘level up’ areas outside of London.
Unlocking Potential in Underserved Regions
“Providing rural areas with access to fibre broadband empowers residents to work remotely, operate businesses, pursue remote education, and access news and information services,” he stated. “This can be transformative.”
Rising Customer Demand and Network Competition
This network expansion occurs amidst a surge in customer subscriptions to BT contracts utilizing Openreach’s fibre network, reaching a record high of 6 million in the last quarter of the previous year. Competitors such as Virgin Media O2 and CityFibre also provide fibre networks.
Investment and Cost Recovery Strategies
However, this undertaking is financially demanding, with the initial 25 million connections requiring a £15 billion investment, which has weighed on BT’s stock valuation.
Copper Cable Sales as a Revenue Stream
Openreach partially offsets these costs through avenues like selling recovered copper cables, replaced by superior fibre broadband infrastructure.
Selley estimates annual revenue from copper cable sales to be approximately £20 million. However, he acknowledges this as “not significant” compared to the multi-billion-pound network investment.
BT’s Broader Cost-Cutting Measures
Despite wider cost-reduction initiatives within BT, including potential job reductions, Openreach’s broadband expansion plans remain ongoing.
Efficiency Gains in Fibre Network Expansion
Selley maintains optimism amid workforce reductions, noting, “Fibre expansion teams are enhancing their efficiency, enabling us to achieve more with fewer personnel compared to previous years.”
Selley’s Future at Openreach
While dedicated to achieving the 25 million milestone, Selley paused when questioned about his continued leadership for the subsequent expansion phase.
Focus on Milestone Completion and Board Decisions
“My priority is ensuring we reach this crucial milestone. The Openreach board will then determine the future direction. I am committed to Openreach’s best interests and will collaborate with the board on the path forward.”
Fibre Network Coverage by Competitors
Virgin Media O2 reported reaching over 18.3 million premises with its network by the end of last year, while Cityfibre’s network extended to over 4.1 million.
Network Overlap and Resource Utilisation
The availability of multiple fibre networks for households has led to criticism regarding potential resource duplication and increased roadworks due to overlapping infrastructure development.