Rolling out Fibre Optic Broadband

This week the China Daily newspaper is carrying a story that has been picked up by many international news agencies. The paper states that the Ministry of Industry and Information Technology is ordering all newly built residences to install fiber optic connections in any city or county “where a public fiber optic telecom network is available.”

An ambitious project, particularly when put alongside the government’s hopes that 40 million families will be connected by fibre optic technology by 2015. These kinds of goals and regulations may seem impossible to those of us that live in the old world, but I would not be too sceptical about their interests and possibilities in China.

Here in the US we are a long long way from even getting broadband to large swathes of the country. The National Broadband map is a great source of information about how well connected we are, the maps are interactive and offer loads of information. Broadband coverage in general gets thinner on the ground as you move West, with much of the rural West and mid West still showing very little access. If you look at the map of fibre optic to home availability though you will see that we are talking about a very small number of providers and although it represents 17% of services it is extremely localized, with the vast majority of the country having no service.

Are you connected?

Internet cables

3.7% of the population have no high speed service at all, and although this seems like a small percentage, in a country the size of the USA it represents (by my calculation) about 13 million people.

Some analysts here are asking if the China intervention might be another Sputnik moment. The launch of the Sputnik pushed the US into the space race, fuelling investment and technological breakthrough. The question is whether the same will happen here.

If you are interested in how the world is connected, this article in the Global Finance magazine offers a table that shows the percentages of internet users divided into different countries. Some show a recent explosion is use, Albania going from 1% to 50% in 10 years, some are at above 90%, and some show little growth and remain in the 20’s or 30’s.

Given the importance for business the upgrading of existing infrastructure is of political interest. Both the US and UK governments have made broadband speed and distribution improvement a named priority. The UK government is putting in 530 million Pounds to roll out high speed internet to rural areas and in the US government has a similar plan, once more fueled by recent bad press about the quality of services offered across the country.

The Indian government is also pushing broadband extension. In a recent report increase in GDP is directly linked to broadband access, with failures on the parts of telecom companies blamed for losses in earnings and growth. India is expected to be the largest internet base on the planet by 2015, moving to above 300 million users and overtaking the US. With an extremely technology savvy society and better and wider infrastructure this must represent a great opportunity to the country.

So politics plays an important role in creating infrastructure. In an article last year on the innovation Excellence blog I wrote about how the FIFA World Cup had lead to the introduction of fibre optic technology to Africa (with a few hiccups) so large international events also play a part in creating infrastructure and generating opportunities.

So how good are the providers where you are?

Are broadband speeds on the rise?

Many providers will be increasing their broadband speeds from 100Mbps to 120Mbps at the start of 2012, with an estimated completion date in mid-2013. The increase will be really good for customers in the UK, who are looking for faster internet speeds for both personal and business use. Faster speeds could boost the economy, as well as change the way households and businesses use the internet.

Giving access to a super-fast internet is all part of building a newer and improved economy in the UK. The government alone has set goals to expand broadband speeds within the next three years. By the end of 2015, investors predict fibre optic broadband will be available to two-thirds of the UK. Many providers are doing their part to support the economy, understanding that the internet is such an essential part of the everyday lives of their consumers. People are using the web to assist them in every aspect of their lives these days, so having a fast and reliable internet connection is important now more than ever.

Investors will be bringing even faster speeds to the UK. It is thought that around 300Mbps speeds will become available in limited locations within the next few years. Currently, many providers are trying to keep up with these investors by doubling their speeds, allowing customers to upgrade from 10 Mbps to 20Mbps. Those who subscribe to their highest speeds of 30Mbps will be upgraded to 60Mbps. Some providers aim to roll out the changes free of charge, so customers may be pleasantly surprised by the change in their broadband speed! Users will be able to benefit from streaming television, movies and music twice as fast as before.

An example of some optical fibre internet cablesThe increase is good news for the UK, which currently ranks somewhere between 10th and 40th globally in terms of average broadband speeds – depending upon where you get your figures. Once upgrades are complete, the average UK broadband speed could increase to around 16.46Mbps, a massive download speed increase!

Consumers will be gaining this speed boost at the most opportune time, since the highly popular Netflix, this week launched its service in the UK. Such services require high bandwidth speeds and will undoubtedly attract large numbers of costumers, all of whom will need super-fast internet to watch their favourite movies and television shows.