The whole broadband industry in this country is currently going through huge changes, changes that could have huge impact on many aspects of the British society. And not just Britain, but most of the world too is seeing similar changes.
2005 will be noted as the start of faster broadband. At the beginning of the year most people were on 512kbps or 1Mbps connections and by the end of the year 2Mb is now the standard (where possible) and we'll be seeing people on speeds up to 8Mbps and the start of up to 24Mbps.
It won't then be long into 2006 before the faster speeds start to become the norm and it's at that point that things start to get really interesting.
As Chesterfield says for most the increase in speeds probably isn't going increase usage by the same factor. For most people the increase in speeds will mean two things, one they can do the same things they do now quicker and two, they can take advantage of the emerging products and services.
The announcement of Apple's tie up with US TV network ABC is just the start of many similar types of service. The BBC in this country have a trial of their Integrated Media Player as well as multicast. Other companies are looking at similar types of service, the movie companies are looking at video on demand services for example.
VoIP services are just starting to take off, we recently launched phase 2 of PlusTalk, SIP phones are becoming available in the shops, router manufactures are creating products with phone support.
These are the type of services that will become mass market services that go hand in hand with the faster broadband connections.
Faster broadband that with the changes in technology will spread to an ever widening audience. DSL Max is going to cover thousands of exchanges and be available to millions of people, LLU is growing to every more exchanges, ADSL2+ will see even faster speeds, VDSL with the Fibre to the Cabinet trials will see the copper run shortened and the faster speeds become available to even more people.
Behind the scenes at BT they have invested heavily upgrading their exchanges and the backhaul capacity to allow for the faster speeds. The money to pay for this investment has largely come from the fees they charge the ISP's for central pipes on CBC and UBC. Once the upgrade programme is complete they will be able to see the prices reduce for central pipes. This is one of the ways services such as the above will be able to grow.
Secondary to that is LLU, with a different cost mechanism the economies of scale with multiple ISP's using an LLU platform will bring benefits again to allow for the types of service like IPTV.
An finally the building of a managed broadband platform. WIthout proper management of the traffic and usage a service can easily be allowed to be affected by a tiny minority. Without any kind of checks on the network, just 20 customers maxing their connections 24/7 could fill a £400k per year central pipe. That sort of usage just can't be allowed, that type of usage threatens every other application and every other customer.
As we've seen most of the industry is moving away from this type of model, moving away from the "all you can eat P2P". We are only part way down the Yellow Brick Road, it may be bumpy for some, there may be missing bricks, and there may be flying monkeys, we may meet a Scarecrow, Tinman or Lion, some people may take the red brick road and that's fine, but we'll get to Oz, we'll get the faster broadband services, we'll get the applications and services and build a platform for the future. Who knows we may even meet the wizard