Cable merger revives telecom sector calls for access to network
 

From MediaGuardian:

Quote:

NTL is facing a regulatory dispute with telecoms operators over access to its network following confirmation yesterday of a $6bn (£3.3bn ) deal to acquire rival Telewest and create a new force in the UK cable industry.

Should NTL be forced to open thier networks - would it be a good or bad thing?

Should a company who spent all that money creating thier own network be forced to let others use it?

Even in BT's Case companies like bulldog have to crete thier own netowrk (ie add thier own equipment to the exchanges) whould any of these potential customers have to supply any of thier own equipment? Does AOL have any of thier own equpment or do they just pay for bandwith and connection?

Whould 3rd parties have to maintain the part of the network that thier customer is on?Would it be BB or could they offer TV and Phone?

Re: Cable merger revives telecom sector calls for access to network
 

It could be said that AOL's deal is the equivalent of the BT IPStream service, where ISPs install none of their own equipment besides routers / NAS equipment and receive customer traffic from BT.

Networks are however shared in the US by operators installing their own uBR equipment and having their own downstream and upstream frequencies, could be tricky to manage. In addition to this I don't really see that the cable operators could be described as having SMP due to BT's dominance still in wholesale provision.

If NTL / Telewest were ordered to open up their networks how would it be done? Operators own equipment or would they be forced to offer a wholesale service, and do NTL not already offer a wholesale service, but haven't really had many takers, which kinda proves the point most are happy using BTWholesale.

Re: Cable merger revives telecom sector calls for access to network
 

Wont happen.

Re: Cable merger revives telecom sector calls for access to network
 

If OFCOM force it to happen, then it will have to happen. Logistically sounds much more complex than BT's lines though.

Re: Cable merger revives telecom sector calls for access to network
 

I agree, the differance is, BT's network was built with Public Money, when it was the Post Office Hence BT's need to go ahead with 21C! to escape LLU.
Why should it happen?? Bulldog had a network, but chose to sell it to ntl!!

Re: Cable merger revives telecom sector calls for access to network
 

Competition is nearly always a good thing. It reduces complacancy, makes companies work harder to keep customers and makes them develop better products. Compare this to ntl's telephone service: the costs of perifery items such as caller display, itemised billing and connection charges have skyrocketed on a percentage increase scale. This is becuase ntl are complacent that few customers will go through the hassle of switching to a completely different line in their house, or in my case having to have a new line installed by BT.

I don't know how it would work in the case of television, but I guess that a company like Homechoice would love to have access to TV customers with huge video on demand-capable pipes running right into their houses.

With internet, this is the jewel in ntl's crown. They have developed a product that works pretty well most of the time - but as with their TV and phone products, they have not developed the service - instead relying on huge speed increases that the majority of day to day users will never need.

This should be opened up in the same way as BT have been forced to open their networks up.

Although BT's network was originally funded by tax £'s, it would be reasonable to argue now that the complete network would have been largely replaced or refreshed since it was privatised. Certainly this is the case with BT's broadband product, where the equipement in every exchange in the country was paid for with their own money, not public money. So, IMHO, it is no different to expect ntl to open up their internet product to competition too.


I think it would be fair to ntl to plan for this in the same way that BT had to gradually give away it's stranglehold on the monopoly. Initially ISPs rented the connection to the customer - now (where it is prudent to do so) some ISPs are starting to place their own equipment in exchanges. A similarly phased plan for ntl would be a good idea.

Saying all of this is fine - but of course we need to remember that OFCOM's chairman is non other than Stephen Carter, ex-CEO of ntl - and already some of OFCOMs decisions have been seen to be quite favourable to ntl and Telewest whilst penalising competitors - so I hold very little hope in OFCOM producing a fair and balanced report and taking into account anything to do with customer choice.

Instead, I predict their report will favour maintaining the monopoly for all three products of the new CableCo. Mark my words!

Re: Cable merger revives telecom sector calls for access to network
 

This is a bit of an old argument these days, now we have digital exchanges in all areas (i'm sure some were using pulse dialing when it was privatised) and the building of the VoIP 21st century network it is highly arguable that all that is left of the BT network that was inhereted is the buildings and ducts the equpment is housed in / runs thru.

Re: Cable merger revives telecom sector calls for access to network
 

If it was opened up, vast sums of taxpayers money would be needed to effectively buy ownership of the network from ntl - it was built with private money, it cannot simply be taken away from the people who put the money in with no recompense. If that were to happen, private investment in telecomms networks would cease overnight.

I am tired enough of seeing taxpayers money thrown at BT without seeing it thrown at ntl as well.

Re: Cable merger revives telecom sector calls for access to network
 

Which is the most expensive to replicate.

It is the laying of the ducts and construction of the civils network that is most expensive.

When BT upgraded and continue to upgrade, all they have to do is pull the old cable out and new cable in, of the civils network they inherited and plug in the new kit either end.

NTL/TW had to construct all of their network from scratch blah,blah,blah

Re: Cable merger revives telecom sector calls for access to network
 

This is not nationalisation, it is forcing access, at which point UKCable has the right to charge a fair rate for that access, no taxpayer money involved, if Bulldog want to use cable access as well as ADSL access they have to pay for usage or for equipment in exchanges in the same way they pay BT.
Where? The only example I can think of is Highlands BB, a public service requrement where little alternative is available. I would prefer the govt paid this money to BT to get ADSL over the existing copper than paid NTL more £ÃÆ ’‚£Ãà¢Ã¢â€šÂ¬Ã…¡Ãƒâ€šÃ‚£ to dig up the road to ChrisT's house to offer him cable BB.

Re: Cable merger revives telecom sector calls for access to network
 

True.

Laying duct in the public highway is MEGA expensive!!! Our company pay out multi millions to our contractors every year just to excavate foot paths and lay ducting. It often costs more than the jointing and terminating of the cables.

Re: Cable merger revives telecom sector calls for access to network
 

I could see this coming and I hope it happens to be honest, the uk needs competition on its cable network, I can understand the need for this to compete with sky but make no mistake this is now a frightening situation on broadband ntl are the big company (above BT) for broadband now.
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The exchange upgrades to support ADSL were not done with public money tho, or do you think enabling over 95% of the country only cost pennies?
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Wow that explains a lot why ofcom has stayed of cable's back then, hopefully if ofcom do nothing the office of fair trading might step in.

Re: Cable merger revives telecom sector calls for access to network
 

I think I have miss something!. What I was saying about Bulldog (Cable and Wirless in Disguise!) is that they had a network, but chose to sell it to ntl. Then they have the neck to complain BT are slow to do LLU. I think its a bit of a cheek really!

Re: Cable merger revives telecom sector calls for access to network
 

The other reason could be that with ntl/TW already struggling to compete with BT/Sky, any change that costs ntl/TW time and money isn't going to help healthy competition. I've no doubt that, if ntl/TW get into a good financial state, they'll be forced to open up (essentially as BT has done). Until then, no chance. Anyway, it's technically bloody difficult.

On the other hand, there's no chance that Sky will be forced to give up its monopolies on football etc. or allow other organisations to use its satellites, unless the EU force them. Mr. Tony is too much Mr. Rupert's little friend.

Re: Cable merger revives telecom sector calls for access to network
 

It was pretty difficult for BT too, as well as financially dangerous, which is why they ran interference and delaying tactics for many years before being forced into action.

Just becuase a company is not financially sound (which is very much a situation of their own making) is not a reason to not regulate.

You should bear in mind that Sky does in fact open up its network to competitors, technically. They are very cheeky in the way they do it, by charging astronomical amount of money for using their conditional access module, which then prevents anyone from doing it, but it is technically possible to run competing services on the Sky platform.

Re: Cable merger revives telecom sector calls for access to network
 

Hmm - not sure that counts, as presumably all Sky have to do if one of their client companies gets really competitive is hike the price or pull the scheme. The key is regulatory control to prevent such anti-competitive measures.

The only reason to regulate is to *increase* competition, if the effect is to reduce competition by making ntl/TW spend a fortune opening their network, it has the opposite effect. That, to my mind, is a perfectly sound reason not to regulate. You don't find people clamouring for Scottish crofters or East End allotment holders to open up their land for free access.

Oh, and BT, compared to ntl/TW, have had the great benefit of being the incumbent monopoly telephone provider, makes profits in nine figures every year, didn't go bust building its network, wasn't saddled by debt and has a colossal income. If ntl/TW get to being remotely in the same position, go ahead and open it up (it's more people who'll employ me for a start :) ).

Re: Cable merger revives telecom sector calls for access to network
 

Found this out from a friend in the us but not researched it.

But according to him cable companies in the us just do broadband and tv and not phone so it isnt triple play. The big difference that this make's is cable isp's have to make sure that their service is better since it is so much easier for customers to move to dsl as the phone line is already in place, whilst here many customer's wont move simply because of the hassle involved and other restrictions. US also has opened up cable networks with competition between cable isp's, the result is they have better packages offered and very few have caps.

Re: Cable merger revives telecom sector calls for access to network
 

However they are now offering tripleplay by providing what they brand as "digital telephone" which is VoIP telephone so now you can ditch the telephone line and just have a cable line connected to your house and a full triple play service.
The CATV service is opened up in that you have multiple VOD channels, the menus look the same, they just have the providers logo in the corner so you have a TCM VOD, TimeWarner VOD, etc.
BB is opened up so you can get multiple providers of BB on the cable network, but only the network owner currently can offer triple play pricing

Re: Cable merger revives telecom sector calls for access to network
 

If they are forced into that will network expansion increase?

How much does NTL's network increase in a year anyway? Will
Telewest and NTL joining makes any difference?
Around where I live there is no expansion as far as i can tell even
on new builds even when the cable network is surrounding it.
Yet you can always get BT... why is that?
Everyone i know who has a choice between DSL and NTL choose
NTL for broadband.

Re: Cable merger revives telecom sector calls for access to network
 

Its not something that will bankrupt NTL, the competitors will have to pay NTL a price which NTL will choose for the ability to use NTL's network, it will just mean their will be reseller's of NTL's services.

Re: Cable merger revives telecom sector calls for access to network
 

To be fair, this would have to be a price open to challenge by the operators. Private monopolies are Bad Things, as are private companies having sole control over any segment of a market.*

Hmm - sounds like the same technology with different branding. Not true competition at all, which implies the same company having control over the cost of everything from billing through to the cable into your house. This is the limitation everyone who's tried to add competition to a network has eventually hit - the mark of the wise man is that one who's realised this early enough.

* This is a core point of what isn't becoming widely known as BBKingism.

Re: Cable merger revives telecom sector calls for access to network
 

If that company then folds as a result of regulating that market, then, regardless of whose fault it is, the amount of competition in the market is reduced, which is against the point of regulating the market.

If I understand Satellite Technology correctly, Sky actually have no control who broadcasts on Astra satellites (and, therefore, can broadcast to Sky dishes). They do have (and exercise) control over who appears on the EPG, and in their packages. In this way, TBH, they open their platform as much as NTL do the DTV platform. In short, with both platforms, anyone with access to the right facilities, people and cash can set up their own channel on either of the two platforms.
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AOL already do this, so obviously, NTL are willing for other companies to access their network given the right price.

Re: Cable merger revives telecom sector calls for access to network
 

Yes, the billing will appear on the same bill, the pricing does differ per VoD stream, so TCM has a cheaper movies than the just out of Cinema Vod stream and in the middle is the HBO streams.

At the moment on the NTL platform they would all be bundled into one large channel 0 though.