Why are VM not sharing the ducting ?

[Bu11seye]

I have recently discovered that Virgin Media, despite their claims to the contrary, is indeed able to utilize Openreach's ducting infrastructure. This revelation is a clear violation of OFCOM regulations, and it is essential that consumers are aware of the implications.

According to the OFCOM regulations, specifically Section 81 of the Communications Act 2003, all network operators must share physical infrastructure in order to promote fair competition and ensure efficient deployment of telecom services. This means that companies like Virgin Media should have access to the shared ducting infrastructure managed by Openreach.

The regulations require Openreach to provide reasonable access to its ducts, poles, and other infrastructure to other telecom operators. This principle of infrastructure sharing aims to eliminate unnecessary duplication and reduce the cost and time required for network deployment. By doing so, it encourages competition, leading to better services and competitive pricing for consumers.

Despite these regulations, Virgin Media has consistently claimed that it does not have access to the shared ducting infrastructure managed by Openreach. This not only misleads consumers but also creates an unfair advantage for Virgin Media, as they can avoid the costs and delays associated with installing their own infrastructure.

It is crucial to understand the implications of this violation. By not utilizing the shared ducting infrastructure, Virgin Media can potentially exclude certain areas or regions where they would have had access if they followed the regulations. This leads to a lack of choice for consumers and limits competition in the market, ultimately resulting in higher prices and poorer service quality.

Furthermore, the use of shared infrastructure is not a new requirement. These regulations have been in effect since the Communications Act 2003 was passed, meaning that for almost two decades, companies like Virgin Media have been obligated to share infrastructure with other operators. It is disheartening to see Virgin Media neglecting their responsibilities and hindering fair competition for their own benefit.

[nodrogd]

What many forget is that Virgin Media & its predecessors are CABLE FRANCHISE operators. These companies bid to service areas of the country that were split up into separate franchises similar to the way the ITV regions were franchised. The infrastructure used for these builds involves using HFC (Hybrid Fibre Coaxial) services. These are provided through a bonded coaxial cable & telephone cable that is four times the diameter (& weight) of a standard telephone line. Virgin’s infrastructure only connects to its own cable headends & telephone exchanges, not to BTs.

So there are your two reasons the infrastructure (a lot of which was installed prior to any duct sharing arrangements anyway) cannot be shared in its current form.

In order to duct share, both things have to change.

1) Virgin has to move the 95% of their network that is HFC onto full fibre. There is now a programme under way to install fibre cabinets & additional infrastructure to introduce XGS-PON services to all areas by 2028.

2) In so doing 1 above they are moving away from cable (DOCSIS) driven kit, so will cease to be a cable operator as far as OFCOM is concerned. There is a certain amount of “Red tape” that is involved in this move, most of which I cannot discuss here.

But suffice to say, this will remove any remaining barriers to VM using Openreach poles & ducts, & could lead to Openreach sharing VMs once all the HFC clutter that causes so many blockages & delays to VM installs is removed.

[Adduxi]

The bigger problem is who fixes things?  If a shared duct collapses who is responsible?  Similar with the poles, who replaces old ones that are deemed rotten and unsafe?  I can imagine a fault call being passed between VM and OR, as "oh that's not our problem ....."

[dnpark38]

Very interesting post.

The difference in cable is that why BT/OpenReach and City Cable can offer Sky and the other providers or is it just VM that wants to limit competition?

[Adduxi]

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@dnpark38 wrote:

<snip>   or is it just VM that wants to limit competition?

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Could be?  For many years, VM had a monopoly in my area as the "BT" lines were all DIG (Direct in Ground armoured cable).  It took a long time for Openreach to appear, and as there is no shared ducting with VM, they had to dig up the roads and footpaths to lay their own ducts.  If a shared policy was in place, VM would have had competition many years before this.

[nodrogd]

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@dnpark38 wrote:

Very interesting post.

The difference in cable is that why BT/OpenReach and City Cable can offer Sky and the other providers or is it just VM that wants to limit competition?

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VM is a cable operator. Their licence from OFCOM allows them to distribute TV & Broadband using RF technology (DVB-C/C2 TV & DOCSIS Broadband) to the areas where they hold an exclusive operating franchise. This can be either HFC (Hybrid Fibre Coaxial) or RFoG (Radio Frequency over Glass). So they are currently restricted to those franchised areas & cannot expand. In order to become a "standard" telecom operator, they have to give up the use of the RF spectrum they are currently licenced to use. Hence, they will then be treated the same as BT, Sky & the like.

[nodrogd]

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@Adduxi wrote:

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@dnpark38 wrote:

<snip>   or is it just VM that wants to limit competition?

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Could be?  For many years, VM had a monopoly in my area as the "BT" lines were all DIG (Direct in Ground armoured cable).  It took a long time for Openreach to appear, and as there is no shared ducting with VM, they had to dig up the roads and footpaths to lay their own ducts.  If a shared policy was in place, VM would have had competition many years before this.

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As said before, VMs infrastructure only goes back to their own headends. There is no interconnect with BT excluding a single interchange duct which connects it directly to VMs headend exchange. Also when you open most VM ducts you will find this (some are a lot worse):

Crowded VM chamber

[mda99das]

Some BT cabinets are like that.

I have just had community fibre install fibre over the pole on my road, and if I wanted fibre they are the only ones I can go to. If I wanted BT/ SKY then it would be VDSL. How come Virgin / BT / Sky etc cant use the fibre that community fibre have placed? 

[nodrogd]

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@mda99das wrote:

Some BT cabinets are like that.

I have just had community fibre install fibre over the pole on my road, and if I wanted fibre they are the only ones I can go to. If I wanted BT/ SKY then it would be VDSL. How come Virgin / BT / Sky etc cant use the fibre that community fibre have placed? 

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Because it only connects to their infrastructure. The distribution box at the top of the pole is theirs. When Openreach install fibre, they will also install their own distribution boxes at the top of the pole. In our town it’s Openreach & Hey!Broadband. The vast majority of operators will have to use Openreach infrastructure as there is just not enough space on the poles to accommodate them all.

[Roger_Gooner]

Ofcom forced Openreach to comply with Physical Infrastructure Access (PIA) in 2015 because Openreach was - and remains - the dominant player in the market. In contrast VM had 20% (if that) and so OFCOM decided not to force VM to share its network as this would not have a significant impact on prices or choice for consumers. However by the end of 2028 VM's entire network will be bigger and upgraded to be capable of providing XGS-PON, and OFCOM does review its decisions in the light of market changes.