UK Rural Broadband Faces Political Limbo

The Conservative and Labour parties have very different policies on broadband, which could mean that rural broadband is not addressed until after the general election, despite promises for a universal service, experts have warned.

Labour’s policies are based on “industrial activism”, while Conservative policies are gradually coalescing towards “market activism”, said Antony Walker, the chief executive of the Broadband Stakeholder Group (BSG). “If there is a hung parliament, and no resolution to this, then that starts to raise questions.”

Labour is looking at the “nuts and bolts” and wants to take charge, worry about rural broadband up front, and invest directly, Walker told the Westminster eForum in London. This has led the party to propose a universal service obligation of 2Mbps broadband, and a 50p-a-month levy on broadband lines to pay for the Final Third project intended to connect up the last third of the population currently beyond broadband reach.

The Conservatives meanwhile have promised they will scrap the broadband tax if they are returned in next year’s General Election. The party is planning to loosen regulations, and allow the market to grow, and worry about rural broadband later, said Walker: “they hope the market will exceed expectations.”

Given the difference between these two policies, operators are effectively considering investing in a policy vacuum, said Walker, which could result in delays and lack of investment in further broadband coverage.

Despite this, he listed several actions that could be taken now to increase coverage, including pushing forward with the universal service commitment, and using money from the Digital Inclusion programme which is intended to encourage people to get online.

The government should also consider changing the way rates are charged on network infrastructure that operators such as BT build, he suggested.

Several participants at the conference were sceptical that wireless could provide in-fill for rural broadband coverage. Although this was suggested in Lord Carter’s Digital Britain report, operators including BT have since poured cold water on the idea.