O2 CTO Talks Network Upgrades As Life Goes On After Failed Three Merger

5G and IoT

Of course, no conversation about the British telecoms industry in 2016 can be complete without reference to Ofcom’s review of the UK communications market and O’Reilly alludes to it when the discussion turns to the next generation of mobile networks: 5G.

O’Reilly wants more competition in dark fibre, an area where the likes of CityFibre are investing in, but the majority of which is controlled by BT Openreach. Dark fibre is essential for operators who need fast networks for mobile backhaul.

“We’re playing a role in 5G and were one of the partners at the 5GIC,” he says. “In terms of network, the technologically we have to upgrade our networks, but the UK’s infrastructure has to be fit for purpose. We don’t have the infrastructure we need to do it at scale [for 5G].”

“Without a dark fibre market in the UK, the fear is the UK will get left behind. Dark fibre is at the heart of the network for places like Japan.

“From 2020 beyond we have an opportunity. We need a dark fibre network that allows competition.

“There’s a chance we won’t be able to lead on 5G. As a leading economy that’s a risk.”

Brexit and O2 future

Of course there is one giant elephant in the room: Brexit. Research from the Economist Intelligence Unit (EIU) prior to the EU referendum suggested telecoms investment in infrastructure would decline thanks a predicted recession affecting consumer spending on communications.

O’Reilly says it’s far too early to predict what kind of impact Brexit will have and says O2’s coverage obligations mean it is unlikely to stop spending.

“I think the impact of Brexit is still being worked through by most people, not just businesses,” he says. “We’ve signed up to deliver 98 percent population coverage, it’s a licence agreement …  With smart metres we have a coverage obligation of 99.2 percent … Our plans are still on track. We’re in a good place from a coverage perspective.”

“From that point of view, I don’t see us taking our foot off the gas. We are committed to delivering our coverage obligation and building a customer centric network. Our results over the past 18 months prove this is a thriving business.”

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