Gaining volume through wholesale

Unlike the FTTP drives set by Verizon and other traditional telcos that are centered on a vertically-integrated retail play, BT through Openreach is instead offering its service on a wholesale basis.   

BT 21CN cardiffIn the UK, Whitley said that BT's wholesale approach is what's making him so confident they'll be able to hit their deployment goals of bringing "super fast broadband" to two-thirds of the country. What's more, they're doing it all without any government funding.

"Part of the reason we believe we can do that is essentially by offering [FTTX services] on a wholesale basis to all players' right from the start we're hoping we'll get that critical take up element," Whitley said. "It won't just be our own retail customers that are driving volume, but hopefully we'll have a great product out there and the retail customers of big players like Sky, Carphone Warehouse and the 300 other service providers will be driving volume on this superfast broadband platform that Openreach is deploying."

But the ultimate hope for BT and its FTTX drive is that they will be able to provide UK customers an equivalent experience that they saw with ADSL-based broadband.

"What we're hoping is it's the mechanism by which we'll be able get the first benefits of the first generation of broadband: customer choice, competition and low prices," Whitley. "We're trying really hard to make sure that those benefits which flowed from the competitive model in the UK flow to the next-generation of broadband."

Gaining volume through wholesale
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