Traffic plan 'will stall broadband'

Government plans to reduce traffic congestion will push up the price of broadband communications, claim telecoms suppliers.

Five companies including BT and Cable & Wireless have written to Transport Secretary Alistair Darling to express concern that the Traffic Management Bill, which includes plans to charge utility companies for digging up roads, will put a brake on the roll out of the UK's high speed infrastructure.

The Bill overestimates the amount of congestion caused by utilities' street works, and underestimates the positive impact of broadband roll out, say the telcos.

'We are not against trying to do something about congestion, ' said Tony Cox, head of public affairs at BT Wholesale.

'But the scale of street works' contribution to congestion is quite small, and the infrastructure we are installing will play a significant part in reducing the need for travel.'

The telecoms industry is part of the solution, not the problem, says Richard Sweet, head of regulation at Thus.

'Broadband infrastructure enables teleworking, distance learning and distance medicine - all things that decrease the need for road travel and alleviate congestion,' he said.

If the Bill goes ahead in its current form, suppliers' costs could rise by as much as 40 per cent, says Sweet.

'The cost of laying the connection is the main part of serving a new customer. We would have to pass the extra cost on to the customer because this is a competitive industry and we can't just absorb it ourselves,' he said.

A spokeswoman for the Department for Transport said: 'Broadband is widely available in urban areas and measures in the Bill aim to minimise disruption principally in those most-congested areas where cable networks are already in place. We do not expect the Bill to have a significant impact on the extension of broadband to rural areas.'