By Gemma Simpson, 16 April 2007 11:36
NEWS
The digital divide could deepen further and the economy suffer unless the UK improves its plans for the next generation of broadband within the next two years.
If the UK fails to offer the same bandwidth as other countries, the pace of innovation in the economy could slow, according to a report from the Broadband Stakeholder Group (BSG) - a government advisory group on broadband and digital convergence.
The government has 12 to 24 months to develop and implement broadband policies to ensure a market-led transition to next-gen broadband - offering download speeds of 20Mbps or more - according to the Pipe Dreams? Prospects for next generation broadband deployment in the UK report.
Antony Walker, CEO of the BGS, told silicon.com it is likely there will be a similar range of benefits from the switch to faster broadband, as was seen from the move from narrowband to broadband.
The BSG's three main recommendations for a high-speed broadband Britain
♦ The industry needs to develop business models to more accurately reflect the costs involved in providing next-gen broadband.
♦ Ofcom needs to improve its regulatory framework for next generation broadband to balance investment incentives and competition to make the market work.
♦ The government must reduce some of the costs operators face when deploying next-gen networks and understand the implications of what will happen if the UK does not act now.
The report knocks ADSL2+ - which is run over copper-based networks - as a possible next-gen player because the download speed offered by the technology decreases the further the user is from the exchange.
Although wireless technologies will play a part, the move to super-broadband will require the deployment of optical fibre deeper into the local access network, either to the street cabinet or directly to the customer premises by fibre to the home (FTTH) technology, said the report.
The cost of providing FTTH to 90 per cent of UK households has been estimated at €14bn, according to figures from the Organisation for Economic Co-operation and Development.
But last week BT announced investment in its all-IP next generation network – known as 21CN - has knocked hopes of FTTH technology in the UK.
Walker added: "There isn't yet the right balance of incentives in the market, either commercial or policy or regulatory, that would make that a sensible decision for BT."
Comments
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1. Jon Pennycook
Once again, a broadband article that ignores cable, but only mentions DSL and fibre. Cable broadband has fibre to the street cabinet already, and is not reliant on BT's infrastructure.
2. anonymous
A bargain compared with misguided government IT projects?
Hmmmm.... a mere €14bn?? When compared with the probable cost and highly doubtful benefit of, for example, the government's ill-conceived ID card scheme how about something original such as investing in infrastructure that might well improve our overall position as a country rather than wasting money on a scheme whose only outcome will be a more restrictive and managed society?
3. Tim, Oxford
Don't forget that many people live too far from an exchange to get anywhere near 8 Mbs. I live in a built up area in a city and get less than 1 Mbs download (using BT's own speed check)!
4. Alan Lewis
Once again... change planning laws such that on green/brownfield developments, fibre must be laid along with the current essential utillity services. The cost of doing so is less than 1/10th the cost of laying afterwards.
I've been banging this drum for years, but no-one wants to know.
It doesn't take a lot to change planning laws...
5. Marc Wilson
Cable is fine:
(1) if you can get it.
We're in a rural location- though on a major road, not exactly the boonies- and there's no cable and no prospect of any. Hell, we don't even get mains gas;
(2) if the suppliers didn't have a (IME) deserved reputation for cluelessness and poor customer service. We had no TV service for five weeks at a previous address while NTL faffed about- I certainly wouldn't trust them with anything *important*.
No- we need fibre to the home, and we need it soon, before we become a third-world country. The problem is that no commecial organisation will do this when they can postpone it by making us pay more for less, and the government have washed their hands of anything that smells like infrastructure.