The UK’s move to next-generation networks will invariably create a 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 rollout of new networks will create discrepancies between geographical areas.

“In the short to medium term we’re going to see a bigger difference in broadband capability between different areas, with speeds ranging from 1Mbit/s to 100Mbit/s,” said BSG chief executive Antony Walker.

“As we go through this transition it is inevitable that a gap will open up. The question is how quickly ­ and to what extent ­ can we close it again.”

This week 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.

“We’re dealing with a completely new network here, but we have a regulatory framework based around access to the old one,” said Walker. “We need a different balance between incentives to invest, and safeguards to ensure competition.”
The important thing is to establish a firm regulatory strategy, said Walker.

“At some point we’re going to have to make some decisions about the best option to go with,” he said. “It feels as if there is too much on the table.”

Last week Plaid Cymru MP Hywel Williams launched an attack on the gap between urban and rural broadband speeds, as revealed in a recent Ofcom study. Williams called for a debate on digital equality, describing the current situation as “a considerable inconvenience” to rural families and businesses.

Commons leader Harriet Harman said she would draw the issue to the attention of business secretary John Hutton.