Broadband News
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100Mbit/s for majority of UK by 2017 is a Conservative estimate
01 Feb 2010 | 23.36 Europe/London
The Conservative Party's been unveiling it's digital ambitions, aimed at turning what they're calling "one of the slowest countries in the developed world for broadband" into "world beaters."
The Tories say they want super-fast broadband within reach of the "majority" of the UK by 2017 - and that they're not going to rely on the Government's infamous "broadband tax" to do it. If they were to win the next general election, their next-generation connection speed target would be between 50Mbit/s and 100Mbit/s. And they'd use part of the BBC's licence fee in order to make it happen.
"You know, you look at countries like South Korea, Singapore - they are way ahead of us," says Shadow Chancellor George Osbourne. "So the next Conservative government is going to aim to have a 100 megabit broadband to a majority of the population by 2017. In the 19th century we built the railways; in the 20th century we built the motorways. In the 21st century, let's build the super-fast broadband network. That will create hundreds of thousands of jobs for Britain." (The railways-broadband analogy has worked for US President Barrack Obama, so why not for another blue party?)
Of course, the standard bearers of Digital Britain are already looking toward giving ninety per cent of the country super-fast broadband by 2017. To that, the plan is to utilise a measure that's enshrined in the Digital Economy Bill going through Parliament at the moment: the monthly tax of 50 pence on all fixed lines; they say that would bring in around £175 million a year. While Tory policy strongly echoes that of the Government - leading at least one Labour politician to declare they're "playing catch-up" - this means there's still a big difference in how they're going to fund it.
The Conservatives claim that by drawing on the portion of the licence free currently set aside for the Digital Switchover would allow them to raise £1.3 billion over a five year period. Labour MPs want to use that cash to help subsidise local televised news coverage.
But using the licence fee to fund Britain's broadband boom isn't the Conservative policymakers' ideal scenario: they'd much rather the market handle it instead. "If there are some parts of the country where the market can't get to," Osbourne continues "I think the best way to deliver this is by breaking up the British Telecom monopoly at the moment - which holds back companies like Carphone Warehouse or Virgin. First of all, [let's see] if we can have the market delivering that super-fast broadband to the country."
The Tories are talking about ending "BT's local loop monopoly" - which, technically, has already happened. However, communications regulator Ofcom suggested last year that granting BT's rivals access to its ducts could cut down on how expensive it'll be to expand the UK's fibre-optic networks. The Conservatives could also force the firm to sell on its "dark fibre" (i.e. unused cables) to other ISPs - or even allow these competitors to use BT's telegraph poles for overhead cabling.
“If Britain’s digital and creative industries are to become world beaters they must have a proper communications infrastructure,” says Jeremy Hunt, the shadow culture secretary. “We are currently one of the slowest countries in the developed world for broadband. These regulatory changes will create the right conditions for sustainable growth and ensure that the digital sector plays a leading role in a competitive, balanced economy."
BT has issued a statement in response to the Tories plans, tentatively saying that it looks forward to "engaging with politicians from every party" when it comes to building a digital Britain. "We are glad a consensus is emerging among the parties that public-sector stimulus is needed, even if there isn't yet a consensus on how it should be delivered," the company said. "We are open to discussing any measures that will help, rather than hinder, the availability of super-fast broadband and look forward to hearing from others as to how duct sharing can have a positive effect."
Meanwhile TalkTalk, not known for being timid, didn't pull any punches: "We think they have got it right," said Andrew Heaney, Executive Director of Strategy and Regulation. "Competition has the power to transform markets. We’ve already seen that with local loop unbundling (LLU), the process which allows operators other than BT to provide broadband and phone services. LLU was the catalyst for much better and cheaper phone and broadband service."
"Now the Tories want to continue this successful approach. This is the right thing to do," he continues. "Giving other operators the chance to invest in new technology is the only way to supercharge our way to super-fast broadband. By allowing operators like TalkTalk to invest we can innovate like never before, giving people much faster broadband services and a richer internet experience." But TalkTalk would say that, wouldn't it?
My way or the railway
The Tories say they want super-fast broadband within reach of the "majority" of the UK by 2017 - and that they're not going to rely on the Government's infamous "broadband tax" to do it. If they were to win the next general election, their next-generation connection speed target would be between 50Mbit/s and 100Mbit/s. And they'd use part of the BBC's licence fee in order to make it happen.
"You know, you look at countries like South Korea, Singapore - they are way ahead of us," says Shadow Chancellor George Osbourne. "So the next Conservative government is going to aim to have a 100 megabit broadband to a majority of the population by 2017. In the 19th century we built the railways; in the 20th century we built the motorways. In the 21st century, let's build the super-fast broadband network. That will create hundreds of thousands of jobs for Britain." (The railways-broadband analogy has worked for US President Barrack Obama, so why not for another blue party?)
Of course, the standard bearers of Digital Britain are already looking toward giving ninety per cent of the country super-fast broadband by 2017. To that, the plan is to utilise a measure that's enshrined in the Digital Economy Bill going through Parliament at the moment: the monthly tax of 50 pence on all fixed lines; they say that would bring in around £175 million a year. While Tory policy strongly echoes that of the Government - leading at least one Labour politician to declare they're "playing catch-up" - this means there's still a big difference in how they're going to fund it.
The Conservatives claim that by drawing on the portion of the licence free currently set aside for the Digital Switchover would allow them to raise £1.3 billion over a five year period. Labour MPs want to use that cash to help subsidise local televised news coverage.
Monopoly: BT edition
But using the licence fee to fund Britain's broadband boom isn't the Conservative policymakers' ideal scenario: they'd much rather the market handle it instead. "If there are some parts of the country where the market can't get to," Osbourne continues "I think the best way to deliver this is by breaking up the British Telecom monopoly at the moment - which holds back companies like Carphone Warehouse or Virgin. First of all, [let's see] if we can have the market delivering that super-fast broadband to the country."
The Tories are talking about ending "BT's local loop monopoly" - which, technically, has already happened. However, communications regulator Ofcom suggested last year that granting BT's rivals access to its ducts could cut down on how expensive it'll be to expand the UK's fibre-optic networks. The Conservatives could also force the firm to sell on its "dark fibre" (i.e. unused cables) to other ISPs - or even allow these competitors to use BT's telegraph poles for overhead cabling.
“If Britain’s digital and creative industries are to become world beaters they must have a proper communications infrastructure,” says Jeremy Hunt, the shadow culture secretary. “We are currently one of the slowest countries in the developed world for broadband. These regulatory changes will create the right conditions for sustainable growth and ensure that the digital sector plays a leading role in a competitive, balanced economy."
The market talks back
BT has issued a statement in response to the Tories plans, tentatively saying that it looks forward to "engaging with politicians from every party" when it comes to building a digital Britain. "We are glad a consensus is emerging among the parties that public-sector stimulus is needed, even if there isn't yet a consensus on how it should be delivered," the company said. "We are open to discussing any measures that will help, rather than hinder, the availability of super-fast broadband and look forward to hearing from others as to how duct sharing can have a positive effect."
Meanwhile TalkTalk, not known for being timid, didn't pull any punches: "We think they have got it right," said Andrew Heaney, Executive Director of Strategy and Regulation. "Competition has the power to transform markets. We’ve already seen that with local loop unbundling (LLU), the process which allows operators other than BT to provide broadband and phone services. LLU was the catalyst for much better and cheaper phone and broadband service."
"Now the Tories want to continue this successful approach. This is the right thing to do," he continues. "Giving other operators the chance to invest in new technology is the only way to supercharge our way to super-fast broadband. By allowing operators like TalkTalk to invest we can innovate like never before, giving people much faster broadband services and a richer internet experience." But TalkTalk would say that, wouldn't it?
Only when we stop BT's control over the Infrastructure will we see a decent fight for value and speed! Screw VDSL lets get FTTH.
02 Feb 2010 | 17.08 Europe/London