The government is to review the future of the UK’s broadband infrastructure
as part of plans to ensure the speedy rollout of super-high-speed networks.
The independent study, to be led by Francisco Caio, the former chief
executive of Cable & Wireless, will report
to chancellor Alistair Darling in the autumn.
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“High-speed broadband is vital for the growth of Britain’s creative
industries, which
already contribute some £60bn to the UK economy,” said competitiveness minister
Shriti Vadera.
“We need to prepare the way for the UK to adopt groundbreaking new
technologies.”
Potential hurdles include high costs and a perceived lack of demand.
Suppliers already have strategies. BT is
committed to high-speed fibre links for all new housing development. And
Virgin Media plans for 50Mbit/s
connections later this year.
But deployment will be harder than with first-generation services, said
Antony Walker, chief executive of the
Broadband Stakeholder Group (BSG).
“Most of the market was surprised at how fast broadband services were rolled
out, but that is unlikely to happen this time because the scale of investment is
so much bigger,” said Walker.
“If Virgin does widely deploy its networks, it might create competitive
pressure, but beyond the higher-density areas, the business case becomes a lot
harder.”
A BSG report considering possible funding structures for direct government
involvement will be published later this year.
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