OFTEL: Redefine Broadband (04 May 2003)

Oftel Market Review Consultation

Oftel have published a market review consultation document: Review of the Wholesale Broadband Access Market dated 28th April 2003. This is a wide ranging document looking at the complete market in the UK for Broadband services. However, within it the Director General of Telecommunications chooses to redefine what BroadBand actually means.

The new definition is:

"Asymmetric broadband internet access has a number of characteristics that individually or as a group distinguish it as a higher quality service than narrowband internet access:

• it provides higher speeds, in excess of 256kbit/s downstream capacity;

• it offers an always-on service, or at least has an ability to establish rapidly a connection to the internet;

• it allows use of the exchange line for voice telephony and internet access at the same time; and

• it allows content delivery which is not practical on narrowband internet access such as real time video content."

The significant change from the previous definition is the speed, previously quoted as "in excess of 128kpbs". When the last definition was formed by Oftel, in June 2002 the main asymetrical internet service download speeds were 128kpbs and 512kpbs (asymetric means that upload and download speeds can differ). Therefore, according to Oftel, for some time the base ntl service may not in fact have been broadband, although oddly Oftel do, and will continue to, count the base ntl service in statistics of how many BB subscribers exist.

The Oftel consultation now states:

"The Director currently considers that a speed distinction of greater than 256kbit/s for broadband internet access services captures the relevant demand side distinction for UK broadband internet access services. This is because the higher speeds of broadband internet access allow different existing and future content to be delivered which is not available at a reasonable quality on narrowband internet access. An example of such a service is the delivery of streaming video which allows video clips to be viewed over the internet such as real time news and sports coverage, movie trailers etc. In general, this type of content requires around 300kbit/s or above. However, it is difficult to define a precise speed given swift technological changes which may allow these services to be delivered over lower speeds in the future."

So where does this leave ntl, with their "upgraded" 150kpbs service? Tiscali also offer a 256kpbs service, which will now fall outside this new definition. If this definition stands, AntiCap consider's they should no longer promote these services as Broadband, in any way, shape or form.

It is only recently that the ASA ruled against ntl advertising their 128kpbs service as "high speed broadband". The ASA did admit to some confusion over the different standards that exist.

To confuse however, Oftel retain a different definition which they use in their regular "Internet & Broadband Briefs". This is a much weakened statement, and does include 128kpbs services as broadband. It is intended to promote higher statistics so that Oftel: "supports the Government’s targets; to ensure that everyone who wants it has access to the Internet by 2005; and to have the most extensive and competitive broadband market in the G7 by 2005."

This dual definition is misleading and confusing. If it continues, what is or is not broadband? ntl, and others may have justification to claim "foul", if they are pursued by the Advertising Standards Authority (yet again). AntiCap considers the lower threshold must be removed from definitions and thus statistics. A new definition of "midband" access anyone?

The consultation closes in early July. Oftel hope that when complete, the final Directive that evolves from the consultation will have a lifespan of 1.5 - 2 years.