14 Jan 2009
Communications minister Lord Carter has hinted that the government could rethink its decision not to put significant funding behind an optical-fibre rollout in the UK to support next-generation broadband.
Speaking at a joint Westminster eForum and Westminster Media Forum seminar today, Carter acknowledged that the current economic crisis could adversely effect telecoms companies ability to raise funds to invest in high-speed network infrastructure.
"It is clear there are many other countries in the world taking a completely different view of the role of infrastructure as an essential part of an economy and the role of government in the provision of that infrastructure," he said.
Carter also implied that his forthcoming Digital Britain review will look at the need for universal broadband provision using a combination of fixed-line and mobile communications.
"Today we are way beyond the view that broadband is a niche product, it is an enabling and transformational service and therefore we have to look at how we can universalise it," he said.
Government strategy on broadband delivery by optical fibre was set out in Francesco Caio's report, produced last autumn. The report said that public money should not be used to fund an optical-fibre rollout, a view endorsed by Ofcom after its consultation into the issue, which also suggested the way forward is through private sector investment.
Profits warnings in the UK technology hardware and equipment sector, which rose by more than 60 per cent in the fourth quarter of 2008 could be a contributing factor, as could the drop in UK telecoms firms' share prices.
The UK cannot remain a world leader in terms of economic output and services without investment in communications infrastructure. It is certainly welcome news that Lord Carter infers the Government may re-consider its position and play a financial role in the roll out of the next generation network. The Government needs to play its part - next to education and healthcare investment - there can't be many other more important projects than ensuring the UK's population has broadband connection and best position the country for competing in the global economy.
The next generation network is not just about saving on call costs with VoIP. It will help the business community to continue to thrive with the provision of more secure and intelligent bandwidth that enables applications like video on demand, energy consumption monitoring, IPTV, VoWiFi and innovative medical devices.
Posted by: Martin Balaam 19 Jan 2009
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