Government Signals Fibre Broadband Intent

The government has signalled the importance of a next generation network in the UK with a pledge to force water and electricity companies to open their ducting, as well as slamming the previous government’s commitment to a “paltry 2Mbps” universal net speed.

Speaking at The Hospital Club in London, Culture Secretary Jeremy Hunt set out the government’s vision for providing the UK with superfast broadband, but did not reveal anything new about how it would be funded.

UK In The Slow Lane

“We are now ranked 33rd in the world when it comes to broadband speed, with an average that is nearly 5 times slower than South Korea’s,” said Hunt. “Some of our biggest creative companies – including the world’s largest advertising agency WPP – have chosen to relocate abroad.”

He then outlined how the government wants to go about ensuring a fibre rollout, and said businesses are telling him that access to fast, reliable broadband is increasingly essential to their competitive success.

“But in this country, the legacy was – in the same timescale – a commitment to a paltry 2 Mbps universal connection,” he added. “Necessary, of course, but pitifully unambitious compared to a Korean goal 500 times faster.”

Hunt said it was a scandal that nearly 3 million households still cannot access 2 Mbps broadband speeds, and less than one percent of the country is able to access the Internet using modern fibre optic technology – compared to an OECD average of around 10 percent.

“Some people ask why we need these speeds when the iPlayer can manage on less than one Mpbs. They are missing the point,” he said. “Superfast broadband is not simply about doing the same things faster. It’s about doing totally new things – creating a platform on which a whole generation of new businesses can thrive.”

He pointed out that the Federation of Small Businesses has estimated that a superfast network could add £18 billion to GDP and create 60,000 jobs.

Hunt also believes that it is not only businesses that will benefit from next generation broadband, but it will also open up new opportunities to improve public services such as education and healthcare.

The Rural Divide

The Labour Party, when in government, sought to fund fibre rollout in rural areas with a broadband tax, which would have seen every household with a landline pay an extra 50p per month on fixed phone lines. However the plan was heavily criticised by members of the industry, many of whom said the government’s figures didn’t add up, and it was scrapped shortly before the election.

The Conservative Party believes that the market should drive the investment and it was clear that this position has not changed.

“Of course there are significant costs involved, and wherever possible the market should lead the way, which is why we warmly welcome BT’s announcement to invest a further £1 billion in upgrading its network to reach two-thirds of the population is very welcome,” said Hunt.

However, Hunt said he was aware that the government must ensure this does not open up a new digital divide between the economically attractive urban areas and “rural communities where superfast broadband may never be viable.”

Despite damning the 2Mbps minimum broadband speed, Hunt said that the government will use a proportion of the underspend on digital switchover to fund this.

He also announced three “market testing projects” that will bring superfast broadband to rural and hard-to-reach areas. Broadband Delivery UK (the organisation responsible for these policies) will hold an industry event on 15th July to provide further details on these.

Hunt also sought to address the big obstable to laying more fibre – the cost of digging up the roads.

“We said in our Coalition Agreement that we will require BT and other infrastructure providers to allow the use of their assets to deliver superfast broadband.” He also welcomed Ofcom’s proposals to open up access to BT’s ducts and telegraph poles to promote further investment – and the positive and constructive attitude BT has shown to this development.

He also threatened to bring in legislation to force other infrastructure providers, such as electricity and water companies, to open up their ducts as well.

“Our goal is simple: within this parliament we want Britain to have the best superfast broadband network in Europe.”

BT Response

“BT is keen to roll out fibre broadband to as many homes as possible,” said BT in a statement to eWEEK Europe UK. “Today’s announcement is therefore welcome as it sets out a timetable for helping the final third of the UK get fibre.”

“BT is investing billions of pounds to get fibre to two thirds of the UK without government support but the commercial case in rural areas is far more challenging. That’s why a degree of support is required,” it added. “This support has the potential to trigger further private sector investment and so BT will engage with the government on its plans. In particular, it is important for customers that funding should only be made available to companies who allow others to access their networks on fair and equal terms.”