• Insatiable demand for fibre broadband services presents a massive opportunity for alternative network operators (altnets)…
• … but ‘unrealistic’ SLAs are causing problems for altnet operation managers
• Problems compounded by inbuilt operational inefficiencies and little control over day-to-day workflow data
• Yet again, digital transformation is put forward as the key to success

The UK’s broadband services market is an attractive sector for alternative network operators (altnets) which, between them, have attracted billions of pounds of investments during the past five or so years that have been pumped into building out competitive fibre access network infrastructure, but developing and maintaining a healthy business is providing those altnets with a challenge that’s even greater than getting their fibre lines deployed, according to a new report. 

The scores of fibre-to-the-premises (FTTP) altnets that are still going concerns across the UK are, from a market competition perspective, mainly battling against Openreach, the quasi-autonomous wholesale fixed access network division of national operator BT Group: One of Openreach’s prime weapons is its sheer scale. In presenting its most recent financial results (for the first half of its current fiscal year), BT congratulated itself on the progress Openreach is making with the deployment of its FTTP network, which now passes 16 million UK premises, about half of the country and is more than halfway towards the target of 25 million premises passed by the end of 2026. In an effort to ensure it actually achieves that target, Openreach has upped its rollout objective for the current year to 4.2 million additional premises passed. 

On the costs front, BT is at a distinct advantage over its altnet competitors as all its further fibre deployments will be paid for from “within the existing capex [capital expenditure] envelope driven by build-cost efficiencies”. It has taken a long time for fixed fibre broadband momentum to grow in the UK, but BT now has significant scale in the FTTP market, a reality that will worry many of the UK’s altnets as they try to stay afloat in a very competitive and demanding market.

A new report, Altnets: Industry Insights, published by field service management specialist Totalmobile, analyses the pressures that the UK’s independent FTTP altnets are facing, both in terms of the overall market and the operational efficiencies that will be required if the UK sector is to reach the government’s stated target of achieving 99% fibre broadband coverage by 2030. 

The demand for fast, reliable broadband access services is insatiable and as the new fibre-optic cables are installed across the UK, the altnets find themselves in the position of having to satisfy burgeoning public interest, ensure subscriber satisfaction and develop a profitable business whilst, simultaneously, collecting and making use of the huge swathes of the network performance data necessary to support their efforts. 

As you might expect from a field service management specialist, the Totalmobile report suggests that “field operational management tools will play a crucial role as they streamline the planning and execution of FTTP installations, ensuring that resources are optimally allocated and work orders are completed on time and within budget. They also enhance visibility across the installation process, allowing providers to track progress in real-time, anticipate and address potential issues, and keep customers informed at every step.” Thus, the report adds, “it is apparent that strategic technology partners are essential in empowering major fibre providers to transform how they deliver services.”

Totalmobile interviewed 100 senior managers working in operational delivery for UK telco infrastructure and fibre delivery. That is a statistically significant number and the conclusion to their responses is that all are “very concerned about achieving the delivery infrastructure and workforce management SLAs (service level agreements)” to ensure success over the next three years. Another concern is the requirement that they must reduce their carbon footprint and contribute to the global decarbonisation effort, even as they struggle to meet demand. The report further reveals that 53% of respondents say they find it difficult to maintain day-to-day control over their all-important field operations.

Altnet operational management is reactive rather than proactive 

The senior operations managers surveyed identified the three biggest challenges they currently face as: Unrealistic SLAs; achieving a ‘first-time fix’; and services being put under immediate and sustained pressure by too much demand. More than 60% said that the level of demand for fast broadband service is at, or above, the point of overwhelming the altnets as they struggle to install cables as quickly as they can in the face of SLAs they know they may well be unable to honour. 

Matters are made worse by the pressures to make a first-time fix for every installation with skilled engineering personnel at a premium and a workforce stretched to the limits. It could be said that such problems might be construed as a consequence of success but, while there seems to be no foreseeable relief from the runaway demand, operational models are beginning to buckle under the strain with the result that potential (or extant) customers could churn away, regulatory penalties might well accrue and reputations (and brands) be tarnished, perhaps to the point of rusting away altogether. 

Many expect altnets to embrace digital transformation with open arms but, surprisingly, close to 60% of respondents to the Totalmobile survey admitted that the technologies they are working with are incapable of managing the complexities of today’s operational demands and requirements. For example, 53% of respondents said they have insufficient control over day-to-day workflow data and are, therefore, constantly reactive, rather than proactive, in managing deadlines and field operations. They need automated real-time data and predictive analytics but too many are fumbling about in a fog of delayed and dated information because they lack the ability to track progress or contact their customers in real time. 

Another worry is that because of the pressures of ESG (environmental, social and governance) targets, operational managers are expected to cut and minimise “unnecessary” site visits to reduce carbon emissions. More than 38% of respondents to the survey said senior executives, at board level or just below, regard ESG targets as fundamental indicators of their performance and compliance and push the rest of the organisation to prioritise them. 

One of the key solutions for the altnets is the use of field operational management tools in streamlining the planning and execution of FTTP installations – and that is where strategic technology partnerships come in. They can empower fibre providers to transform the ways in which they deliver services by providing them with the products and services to rationalise and modernise the entire field service delivery process by improving the visibility of work progress and accurately capturing dynamic data to aid informed decision-making. Similarly, engineers at the muddy/dusty coalface also need access to real-time information: Many of them are also working in comparative data darkness.

Essentially, all respondents agreed that, if they are to succeed, altnets must have robust but flexible innovation strategies that can quickly adapt to the introduction of new technologies and cope with shifts in the market. That means investment in technology is paramount. Such strategies assume even greater importance when 66% of those interviewed said they believe that the market will become even more complicated and challenging over the next three years. 

Rob Gilbert, managing director of commercial and infrastructure at Totalmobile, commented: “The research makes it clear – altnets are facing unprecedented pressures. Whether it’s managing workforce demand, delivering customer satisfaction, or hitting sustainability goals, the only way forward is through digital transformation. Fibre providers need to invest in technology now or risk being left behind as the market continues to evolve.”

– Martyn Warwick, Editor in Chief, TelecomTV