Carter urged to consider "frequency for fibre" swap

Nesta proposes a radio spectrum swap for UK-wide optical fibre investment

Investment and lobbying group the National Endowment for Science, Technology and the Arts (Nesta) has put forward a radical proposal calling on the government to give radio spectrum worth £5bn to telecoms firms for free, in return for private sector investment in optical fibre broadband networks.

"We have to go much further, particularly during recessionary times. Unless we invest in super-fast broadband, the UK will lose a critical opportunity," said Nesta chief executive Jonathan Kestenbaum.

"In exchange for a major government asset, the telecoms industry would need to rapidly deliver nationwide access to super-fast broadband and provide free basic broadband where appropriate to those on low-income support."

Nesta's 'spectrum for speed' swap is being touted in advance of Lord Stephen Carter's interim Digital Britain review on universal broadband provision, due later this month.

The proposal comes after a recent speech by Lord Carter hinting that the government could rethink its decision about leaving the majority of investment for a UK optical fibre rollout to the private sector.

Kestenbaum said that Nesta's proposal for free broadband for low-income families would prevent "cutting off large swathes of communities from economic and social development. We cannot let this recession lead to further erosion and social exclusion. Our 'spectrum for speed' swap delivers both."

Currently there are three sets of prime radio spectrum in the 2GHz region very suitable for new mobile communications technologies, such as WiMax, due to be auctioned off by regulator Ofcom.

But the decision to award was put back due to litigation from mobile operators T-Mobile and O2, which Ofcom said may not be heard until January or February next year.