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Britain’s Gigabit: $40-$80/month
Written by Dave Burstein   
Tuesday, 23 October 2012 13:59

Bournemouth 3

Gigler/CityFibre in Bournemouth matches Google’s price
21,000 homes in England are being offered a true gigabit down, 500 megabit up, low ping fiber connection at a price similar to Google’s in Kansas City. £25/month ($40) has an 80 gigabyte cap, best thought of as an hour or two a day of HD video. £35/month ($56) has a 250 gigabyte cap, enough to watch most of prime time. £50/month ($80) is unlimited. Install is £50.
   Greg Mesch’s CityFibre intends to cover the whole city of Bournemouth by the end of this year and is working in York as well. They manage 30,000 kilometers of fiber for private and government groups. CityFibre emerged after the financial collapse of i3 Group and now is building again.
I recently reviewed fiber economics at http://fastnetnews.com/fiber-news/175-d/4835-fiber-economics-quick-and-dirtywhere I concluded that in medium density areas the cost is about $1,000/home passed. Per home served that becomes $1,000 (nearly everyone) to $4,000 (25% take rate). That gets you to an easy gig today and an easy 10 gig in 2-5 years.  CityFibre tells me their costs "are considerably lower due to the high density of homes in the areas in which we deploy and the fact that we are using a PON architecture and not point to point."

   In general, the direct return from residential fiber buils is something like a decade away, too much for private companies. So going for fiber only makes sense for a company which can capture major externalities or other revenues. Google's a perfect example of externalities. What's good for the Internet is good for Google ad sales. CityFibre is aggressively marketing to Local Authority/Government, business and mobile. Gigler is already planning to sell voice. The $50 fiber business plan is still unproven but I’m getting more optimistic as additional revenue sources prove out. 

   If externalities are significant, then it becomes sensible government policy to overcome the corporate reluctance. A social investment can look to a 10-20 year payoff. Impacts of better broadband are usually overstated but I believe non-nil. I'm convinced just giving out money like our broadband stimulus is beyond the power of the U.S. government to do efficiently, and I suppose that's true elsewhere. Nationalization and direct government investment has problems as well. But I'm pretty sure that long term loans bringing down the cost of capital are natural here, preferably to entities with enough skin in the game to make sure the money isn't wasted.

Here’s the announcement.

One of the world’s fastest home broadband connections launches in Bournemouth

Gigler offers ‘superfast broadband for all’ and customers simply pay for what they use
4th October 2012 – Gigler, a new broadband provider specialising in the next generation of pure fibre broadband services, has today launched superfast 1000 Megabit services to 21,000 homes in Bournemouth connected to the UK’s largest fibre to the home network. Unlike other so called ‘fibre’ broadband service providers which use copper or cable from the street cabinet to your home, Gigler uses a pure fibre-optic connection, meaning they can deliver customers a truly incredible and future-proofed broadband experience.
Gigler is like no other service on the UK market as its product, ‘Gigler Fibre Broadband’ offers up to 1Gigabit per second download (1000 Megabits) which is 100 times faster than the UK’s average speed, and up to 500Megabit per second upload which is 200 times faster than the UK’s average speed. This is as fast as the fastest home connections anywhere else in the world.
Waiting for catch up TV programmes to ‘buffer’ will be a thing of the past and these speeds mean that it will take you under 40 seconds to download an HD film; and under five minutes to upload the entire English language content of Wikipedia!
Adam Troman, general manager at Gigler said: “The way we use the web is changing – and fast. People are downloading and uploading content to the Internet more than ever before and connecting to it using lots of devices such as laptops, tablets, the TV and smartphones, all using their share of bandwidth at the same time. This is only going to increase over time.
“Whether it’s streaming HD movies, watching Smart TV, video-calling with friends and family, sharing huge files or online gaming, Gigler’s pure fibre gigabit broadband has the power needed to handle it all in a flash. This unique service will transform the way we communicate with each other and revolutionise the way we access the things we love online.
“We’ve trialled the service with over one-hundred Bournemouth residents over the last six months and the feedback has been fantastic – they ‘love’ the consistency and reliability of the service, regardless of the time they’re online and describe the speeds as ‘eye-wateringly fast’.
“Gigler believes that everyone should be entitled to the same superfast gigabit speed, every time they use the Internet, regardless of their budget. Gigler’s fairer pricing structure is based on usage rather than speed, meaning customers are not forced to accept lower quality for a cheaper price. Instead, customers simply select the usage package to suit their needs. There are three packages to choose from, starting from £25 per month. We’re so sure people will love the Gigler service that we are also offering a six-month, no quibble, money-back guarantee.”
Gigler is currently available to 21,000 homes in Bournemouth. Customers should go to www.gigler.co.uk to check availability, sign up for the UK's fastest broadband or register their interest.
Gigler is looking to expand into new areas and is asking residents not currently in the catchment area to register their interest so that they can roll out network to areas of the town with the biggest demand.
For more information on Gigler and to sign-up to the new service, please or visit www.gigler.co.uk
Media contact
Deborah Simcock
Bell Pottinger
M. 07810 834548
e. cityfibre@insightmkt.com
About Gigler
Gigler is a new Internet Service Provider, starting in Bournemouth, of a new breed of fibre optic broadband service. Believing that everyone should enjoy the best possible broadband service whenever they use the web, Gigler has launched just one exciting product. Gigler Fibre Broadband offers up to 1Gigabit per second download (100x UK average) and up to 500Mbps upload (200x UK average), as well as less than 5ms latency. (+3x better than UK average). For more information on Gigler’s services visit www.gigler.co.uk
About CityFibre
In Bournemouth, CityFibre owns the largest FTTH project in the UK. With over 21,000 homes in marketing now, the network enables service providers to deliver unprecedented superfast broadband with speeds of up to one gigabit per second.
CityFibre (www.cityfibre.com) is one of the UK’s leading fibre optic infrastructure providers. By building dedicated private fibre networks for the public and private sectors, we empower data-hungry users throughout the country, by unleashing unlimited speeds on future-proofed technology.
Our transformational fibre infrastructure projects comprise point-to-point connections, metro rings and Fibre-to-the-Premises networks that make possible Next Generation Access and gigabit level services direct to local authorities, businesses and homes.
CityFibre manages over 100 private fibre projects and seven separate metropolitan fibre rings under long-term contracts with local authorities, police forces, healthcare organisations and universities. With almost 30,000km of fibre in the ground, connecting more than 350 sites and data centres across the UK, we are the country’s largest independent provider of fibre in secondary cities.