Progress of Project Gigabit—the UK government and national internet service providers’ pledge to provide ultrafast broadband coverage to 85% of the UK by 2025—is at a critical stage, suggests a new report conducted by procurement specialist Altnets in partnership with the Internet Service Providers’ Association (ISPA).
Challenges for the telecom sector
The 2024 Telecoms procurement research report covers the various challenges and opportunities that exist in the sector for ISPs. These include the potential procurement pitfalls that stand between them and successfully delivering on the promises of Project Gigabit.
The fibre industry procurement strategies have shaped Project Gigabit’s successes and been complicit in its setbacks, the report argues.
So far, the report notes, progress towards the UK government’s coverage goals has been encouraging. During January 2024, gigabit coverage across the UK finally hit 80%.
The digital divide threatens one fifth of Britons
However, Project Gigabit’s next challenge: ensuring 99% coverage by 2023, presents a greater challenges. Failure would leave almost a fifth of the nation waiting for a gigabit-ready connection.
Most of these residents are located in rural areas. In the countryside, connections are more challenging to build, presenting logistical and procurement challenges.
In England, only about 40% of rural premises are gigabit capable, with lower numbers still in Scotland and Wales.
“As we’ve seen over the last few years, when the supply chain is stretched and demand outstrips availability and capacity, those companies who don’t undertake proactive engagement with their supply chain usually suffer the most.”
2024 Telecoms Procurement Research Report
Considering the speed and scope of the work remaining, the traditional just-in-time procurement approach is no longer viable. According to the report, UK telecoms need a more resilience-focused approach to procurement.
“During ‘normal’ times the detrimental effects of [just-in-time] procurement tend to be minimised or masked by broad availability,” write the report’s authors. “However, as we’ve seen over the last few years, when the supply chain is stretched and demand outstrips availability and capacity, those companies who don’t undertake proactive engagement with their supply chain usually suffer the most.”
This is especially true in rural areas, where the majority of the most taxing remaining work is located.
The report’s authors argue that, “rural connectivity can require a diverse portfolio of deployment technologies, therefore procurement teams need to have relationships with a wide and equally diverse group of manufacturers and suppliers to meet the needs of the network builds.”
The UK’s telecom sector can still achieve its Project Gigabit ambitions. However, the industry will need to prioritise supplier diversity and resilience over pure cost-containment to do so. This shift will be especially critical during the final, most challenging stages of the infrastructure buildout.
