Britain lagging behind on broadband speeds
October 2, 2007 at 9:33 am
Stephen Timms, the Government’s Minister for Competitiveness, this week stressed that the UK is continuing to fall behind global competitors on the issue of next generation broadband. While Virgin Media is just beginning to trial 50MB broadband in some parts of the South East of the country, for example, other EU nations are offering speeds of up to 100MB. Ministers want to bring together key broadband industry stakeholders to discuss how the gap can be bridged, and to limit the impact on the UK economy.
The minister is keen to work together with The Broadband Stakeholder Group (BSG), which advises the Government on broadband issues, to make next generation broadband a reality in Britain. The BSG believes clear broadband infrastructure targets must be set to ensure the UK doesn’t fall behind its economic competitors. Earlier in the year, the organisation warned that, without investment, the digital divide between Britain and the rest of the world would deepen.
So why are we falling behind Europe? The UK is simply not matching the level of investment which other governments are making. As Stephen Timms pointed out, “Other countries are starting to invest in new, fibre based infrastructure, delivering considerably higher bandwidth than is available in the UK today.”
The sums involved are certainly substantial. “Fibre To The Home” (FTTH) uses a Fibre Optic rather than traditional copper wire to bring broadband, digital TV and telephone to the home. FTTH offers faster speeds (up to 100MB) and greater bandwidth. Across the channel it’s catching on rapidly – in Paris it costs just 45 Euro (£30) a month for the FTTH internet connection, 51-channel TV and unlimited phone calls. And the Mayor of Paris believes the capital will soon reap the financial rewards of infrastructure investment. Widespread super-fast broadband could make Paris Europe’s leading digital city, and therefore an attractive place for businesses to locate.
UK-wide installation of FTTH would cost an estimated £10-£15 billion. The crux of the issue is how to resolve this funding shortfall. The Government is keen to find out what role the private sector could play, and whether regulatory changes might be necessary to create a better environment for business, and to encourage investment by telecoms companies in next generation broadband infrastructure.
The BSG’s Chairman, Kip Meek, emphasised the importance of finding the money: “If we want to see the UK stay ahead amongst the international leaders in broadband, we must find a way to encourage timely and efficient investment.”
