Why no other ISP comes to Hull
KC have made a number of strategic choices.
1. The first 1Km of wire from the exchange is normally 0.5mm sq. Kc have chosen to use 0.3mm sq. Remember the problems they had with KIT - the wire size played a part in the problems... The key point here is that the DSLAMs in the exchange for connecting the ADSL are much more expensive for 0.3mm cable.
2. KC have installed about 9 times for exchanges than would be used in a BT area. The ISP would have to haul fiber to something like 30 exchanges rather than the 2 or 3 in BT land.
The combination of these 2 mean that a prospective ISP would have to spend 9 times more on kit which is more expensive and more back haul links to get to 350,000 prospective customers.
Ofcom have very little to say on the matter other than KC do not run a monoploy. This is quite true; any other telco, ISP etc can come into this area; but when they are dependent (or dig the road up) on using the local copper circuit and find it is not compatible with what they have and then to be faced with 9 times more cost to "buy in to Hull", then you can see the problem.
I had heard rumours that the Karoo Infrastructure was creaking, but nothing specific.
In the light of the recent layoffs fuelled by cost savings, one might suggest too much cost cutting left KC in a position without a spare, resilience or diverse networks...