Regulating an ultra-fast broadband network—Posted on November 28, 2007
The Broadband Stakeholder Group’s warning in April 2007, that the government had just two years to encourage private-sector investment to prevent the UK from falling behind the likes of the US, Germany and Japan, was a direct challenge to Ofcom. So when Ofcom published its September consultation on the matter, it made for interesting reading. Not only did it go a long way to open up the conversation as to how we go about doing this, it also injected some economic thinking into the debate. With an estimated price tag of £15bn to roll out ultra-fast broadband network across the UK, it’s important to get the timing right. Rolling out too late could hold back economic development, but rolling out too early before there is real demand would also be economically wasteful – and premature public subsidy could distort competition. These are important considerations and it was good to see them getting the kind of national attention they deserve.
Putting money and timing to one side however, there does need to be a degree of regulatory certainty to bring to life the broadband network that the UK will eventually need to stay competitive. Ofcom’s premise that our national infrastructure will need upgrading makes perfect sense. From Lerwick to Lewisham, businesses and homes the length and breadth of the country stand to benefit from such a development, so it is vital that we start talking about how to regulate this in the future.
I fully support the regulatory discourse and while the consultation itself does not provide regulatory certainty, it is a step in the right direction. However, we shouldn’t lose sight of the fact that businesses can already get high-quality broadband services. THUS’s next-generation network has been operational since 1999 and businesses of all sizes, including the likes of GCap Media and GNER, are benefiting from faster and more efficient networking resources. On a personal level, it makes my working day a great deal more efficient and the ability to video-conference colleagues from home adds a nice human touch to my day! From a UK perspective, high-quality broadband is less of an issue for businesses since the main driver is likely to be entertainment services for the home.
The UK already has one of the highest penetrations of multi-channel digital TV and we also have high availability of first generation broadband and high levels of customer satisfaction. Demand for bandwidth intensive applications is growing and now is the time to start talking about practical ways to achieve this.
Richard Sweet - Director of Government Affairs