Obstacles to broadband rollout are significant, says industry

Problems include lack of funding and issues around the sharing of utilities

Sharing utility companies' infrastructure could be key to superfast broadband rollout

The UK's commitment to roll out both universal broadband by 2015 and next-generation access by 2017 must surmount a number of obstacles before it can succeed, according to the industry.

There are three universal service commitment pilot schemes due this autumn, with the purpose of establishing a workable business model. The government has about £200m to run them.

However, there is some doubt as to whether this will be enough to carry out adequate pilots.

Speaking at its industry day at the Department for Business, Innovation and Skills (BIS), Adrian Kamellard, chief executive of Broadband Delivery UK (BDUK) – the organisation tasked with delivering these three critical projects – said: "This money is for capital costs only. We won't be able to stump up the money for any operational cost deficiencies."

"But it is important that we make any systems we roll out as upgradeable and future-proof as possible," he added.

Establishing a workable business model during these pilots will be essential to the success of universal rollout.

It is not just the money that is of concern. BDUK says that sharing private and public networks as well as utilities such as electricity, sewerage and water pipes is also necessary.

There are potential problems around sharing arrangements as well, and BDUK outlines a number of them in its discussion paper Broadband Deployment and Sharing Other Utilities Infrastructure.

It cites likely co-ordination failures where health and safety issues prevent electricity utilities sharing their telegraph poles; and regulatory failures, where price regulation may provide a disincentive for companies to seek to provide access to their infrastructure due to insufficient returns.

The pilot project locations will be announced later in the year and the procurement process will be finalised in the autumn, with projects ready to start early next year.

At the industry day itself, BDUK had a suggestion box on the speakers' platform inviting key questions about the network rollouts.

Utility companies represented at the event included the Energy Networks Association, Electricity Northwest, Western Power and Yorkshire Water.

The event at BIS was based around BDUK's discussion paper and invited industry responses on the document by 16 September 2010.

After that date, BDUK and the government will consider the responses and how best to move forward.