The UK's move to next-generation networks will invariably create a new digital divide, according to advisory body the Broadband Stakeholder Group (BSG).

The overall benefits of faster internet access will outweigh the estimated £16bn cost of connecting 80 per cent of the UK's homes, said the BSG. However, the roll-out of new networks will create discrepancies between different geographical areas.
A firm strategy must be developed now to counter this potential problem, said Anthony Walker, chief executive of the group.

"Even though we are at the beginning of this transition, we need to be vigilant about the risk of persistent new digital divides opening up," he said.

"By testing out models of intervention now, the UK will be better prepared to intervene efficiently and effectively if it needs to in the future."

Today the BSG published two reports focusing on the social benefits of faster broadband, and the potential role of public sector intervention in securing the deployment of new networks.

While faster broadband will bring widespread benefits to the country, the BSG is recommending a focus on creating a supportive regulatory environment, rather than early investment from operators.

"It is tempting to jump in feet-first but it matters more to do this right than to do it now," said Walker. "There is a lot of uncertainty about issues on both the demand and supply side and much that we can learn from experience elsewhere without adverse affects in the short-term."

"On the other hand, the UK can’t wait too long. If widespread network deployment didn’t happen in the medium term – perhaps three to five years – then this report suggests that the UK could be losing out."