But telecoms are likely to push for further change. “They want more freedom to have a more commercial relationship with content providers,” says Matthew Howett, founder of consultancy Assembly Research.
That could, he says, see “operators striking deals with games makers to prioritise a particular update or traffic”.
And streaming companies argue they already invest heavily in technology that stops their traffic overwhelming mobile and broadband networks. “Netflix invests millions in content delivery networks to get its traffic to you,” says Howett.
Better connectivity will remove 750,000 lorries off Britain’s roads
In a report published today, communications industry analyst Assembly showed that connectivity will play a huge part in the UK’s transition to carbon neutrality.
“The UK is rightly seen as having world leading ambition when it comes to addressing the climate crisis and achieving net zero,” Assembly’s principal analyst and founder Matthew Howett said. “The telecoms industry should be seen as a precious ally of the government given what connectivity can do for all verticals, but transport in particular.
“The pandemic has given us a glimpse of what is possible if we rely more on connectivity, it must now be central to our Covid-19 recovery and path to net zero.”
Squid Game’s success reopens debate over who should pay for rising internet traffic
We’ve not seen the widespread blocking or throttling of traffic that was feared,” says Matthew Howett, the founder of the telecoms consultancy Assembly.
“There is a stress testing of the rules going on,” Howett says. “The challenge is not a new one, it is about increasing margins and profitability for investors and they see revenue opportunities from those big content providers.”
Ofcom approves Openreach fibre price cuts, angering rivals
Matthew Howett, an industry analyst and founder of research firm Assembly, told the BBC some degree of consolidation in the industry now seemed certain.
"If that results in giving stability and scale to those alt-nets in their competitive battle with the larger incumbents then ultimately that can't be a bad thing for consumers," he said.
"A competitive fibre rollout is arguably Ofcom's flagship policy and so any early indications the Equinox offer is having a negative impact for consumers you would think would be met with intervention. It's a bit like a pair of scales that are precariously balanced - we'll need time to see where they settle."
Ofcom eyes break with Brussels rules to boost broadband firms
Can Adam Crozier help connect BT to a bright future?
“I think a major move back into building sports rights and the pay-TV business is a long shot,” says Matthew Howett, an analyst at Assembly Research. “With potential movement in the future ownership structure of parts of BT it would be an unwanted distraction to move the focus from core connectivity back to content.”
Brussels faces test of its will to tackle Big Tech
EE aims for 5G coverage everywhere in UK by 2028
In some remote locations, coverage will be "on demand" delivered by satellites.
"Affordability could remain a challenge with higher monthly rentals and considerable upfront costs. Subsidies could help bring those costs down," analyst Matthew Howett, founder of Assembly Research, told the BBC.
But Mr Howett said the expansion would help EE to position itself ahead of rivals - such as Virgin Media and O2 - among customers who value connectivity, whether rural or not.
"The importance of the network is only going to grow, particularly as more of the things we own and use become connected, and it's not just about the phone in our pockets.
"Whoever has the most advanced, widespread, secure and reliable network, is going to emerge the winner," he said.
BT sets sights on Elon Musk’s SpaceX after Oneweb satellite deal
“Satellite has long been touted as a solution to bringing broadband to the hardest to reach parts of the country, but has often failed to live up to expectations given costs and problems with latency,” said Matthew Howett, principal analyst at Assembly Research, who added that the lower orbit of Oneweb and Starlink’s satellites “should go some way to reducing problems of latency”.
“I wouldn’t be surprised to see partnerships emerge with others such as Starlink given BT and others will be looking for innovative ways to reach those remaining premises as part of their wider upgrade of the nation’s infrastructure.”
Elon Musk fights to rid rural Britain of sluggish broadband in battle with BT
Patrick Drahi - the cost-cutting billionaire who has swooped on BT
Matt Howett, founder of Assembly Research, says: “To me it looks like they can see the potential upside from the enhanced fibre roll-out that has yet to be fully reflected in the current share price.
“I'd say the lack of a seat on the board is a fairly good indicator for now that Drahi isn't looking to embark on a change of direction.”
Millions offered half price broadband from BT
Matt Howett, from analysts Assembly Research, added: "Recognising the need to be connected, and the financial hardship customers faced, many operators have taken steps to ensure access to vital services.
"We've really seen the sector step up and respond to the challenging circumstances many customers have found themselves in."
BT blows final whistle on sport as sale talks kick off
Fibre broadband revolution unleashed by pricing verdict
Facebook’s message to regulators
Analysts say Facebook’s actions in Australia are designed to send regulators worldwide a clear message: don’t touch the business model.
“It’s a conflict that is playing out in different ways, across multiple countries and I think what Facebook is doing is flexing its muscles, not only in Australia but also showing the rest of the world that it is prepared to take extreme measures if it's business model is threatened,” says Luca Schiavoni, Senior Analyst at Assembly Research.
“The message is: regulate us on things like privacy but please do not disrupt key elements of our business model”.
UK telcos have offered near £1 billion worth of Covid support
Huawei set for year of transition amid 'technological Cold War'
Matthew Howett, principal analyst at Assembly Research, said: “We’ve already seen something of a shift in that direction given the restrictions that they’ve faced by being unable to license the Android operating system from Google in the US.”
Howett added that global politics have had a “profound” impact on Huawei’s success, but the company seemingly remains resilient and observant of new business pathways despite the US’s “sustained attacks”.
The current political climate has “forced” Huawei to develop their own operating system, Harmony OS, which will be developed further throughout this year, Howett added.
Elon Musk's Starlink given green light in UK
One in four UK homes 'can access 1Gbps broadband'
£9bn bill for watered-down broadband pledge
"The slowing down of the full rollout of gigabit capable broadband will impact productivity and cost tens of thousands of jobs,” said Matthew Howett, the founder of Assembly Research.
“If the infrastructure is not there to make the UK an attractive place set up shop then we miss out. That's really what we don't get back. That's gone for good.”
