Nasstar at Connected Britain: Reflections on a Changing Landscape
In a rapidly evolving telecommunications landscape, connectivity is more crucial than ever for businesses across the UK. As of 2023, 97% of homes and businesses in Britain have access to superfast broadband, yet the demand for even faster, more reliable connectivity continues to surge. The advent of 5G, alongside the roll-out of full-fibre networks, is reshaping the way we connect, communicate, and collaborate.
Nasstar recently attended the UK’s biggest digital economy event, Connected Britain, to understand more about the nation’s digital transformation and where we can play our part. Rhys Lancaster, Consultancy and Service Delivery Director (Connectivity) at Nasstar, shares his thoughts on the event with us here.
Key trend: AltNets
Connected Britain is not an event I have attended before, but throughout the day, I found it extremely insightful to observe the evolving telecommunications landscape and the trends that will shape our future.
One of the key trends emerging is consolidation within alternative network providers (AltNets). These alternative networks have risen in popularity in response to the UK’s plan to provide over 15 million homes with gigabit capable broadband by the end of 2025. They essentially offer an alternative option to BT and the rest of the Openreach network, particularly in more local or rural locations.
Where there was once a proliferation of smaller players, we're starting to see the emergence of clear frontrunners. ITS, for example, stands out with a differentiated approach, focusing on providing connectivity to business parks across the nation. This strategy positions them uniquely in the market and is likely to support their continued growth.
CityFibre, one of Nasstar’s key partners, is also gaining momentum in this consolidation phase. Its large-scale fibre rollout and partnerships with major providers, including Nasstar, signals that CityFibre is set to be one of the key players in the long term.
Event highlight: Fibre connectivity in the UK
The highlight of the event for me was the keynote session featuring CxOs from CityFibre, Openreach, ITS, the UK Government, and VirginMediaO2’s subsidiary NexFibre. This session offered great insights into the dynamics shaping the fibre connectivity sector in the UK.
A particularly thought-provoking comment came from Greg Mesch, the CEO of CityFibre, who pointed out that for there to be meaningful competition, Openreach (BT) would have to lose market share. However, this is counter to BT’s publicly stated goal of maintaining its market share and dominance. This raises an interesting tension in the market that will need to be carefully navigated by all players, especially with regulatory oversight.
OFCOM’s role in ensuring fair pricing while fostering competition was also a focal point of discussion. The challenge for the regulator is to ensure that Openreach doesn’t drop prices to levels that could harm competition, only to later raise them once competitors have been squeezed out. Historically, OFCOM’s focus has been on opening up BT/KCOM's networks for wholesale access. Now, with new infrastructure players entering the market, its regulatory approach will need to change.
The future: Rhys’ prediction
Looking ahead, my prediction is that the UK will eventually consolidate down to three, or possibly four, primary fibre and data connectivity infrastructure providers. As a carrier-agnostic IT service provider, Nasstar is well-positioned to select the best partners for its clients, particularly critical national infrastructure customers. Nasstar will ensure that it partners with robust and stable players to mitigate the risks of working with smaller providers that could face financial challenges.
Overall, Connected Britain confirmed that the fibre market is undergoing significant shifts, of which we will need to remain at the forefront of. Nasstar’s strategy to remain flexible and selective with its partners, working closely with emerging players like Neos Networks and ITS, evolving and expanding partnerships with Cityfibre and VMO2, while maintaining strong relationships with Openreach, ensures it will continue to deliver the best outcomes for clients.
An important area of focus for Nasstar is the future of Secure Access Service Edge (SASE), which will further enhance its ability to secure connectivity across various networks. By integrating SASE into offerings, Nasstar can secure any type of connectivity through expertise with Fortinet and Cisco technologies. This approach will allow Nasstar to provide clients with the best of both worlds – optimal network performance paired with robust security, regardless of the underlying infrastructure. As SASE adoption accelerates, Nasstar is committed to building these capabilities to provide enhanced security and flexibility for its customers.
The journey of connectivity in Britain is undoubtedly complex, but at Connected Britain, it was clear that the path forward is filled with opportunity. As we navigate this changing landscape, we remain dedicated to aligning with the right partners to ensure sustained success and resilience in an ever-evolving digital world.
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