UK broadband infrastructure may fall short in future

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Unless uncertainties surrounding next-generation broadband are resolved within two years, UK competitiveness may suffer and the digital divide widen, warns a report published today by the Broadband Stakeholder Group (BSG).

The UK's broadband infrastructure may be unable meet the future needs of intensive internet users and content providers, according to the government's advisory group on broadband and digital convergence.

The BSG is concerned that the market will not deliver the ever-increasing bandwidth that users and content providers expect. At the same time, other countries are deploying networks that provide much higher access speeds than the the UK.

"There seems to be little prospect for the widespread deployment of next-generation broadband in the UK at present," the BSG said.

"Although the benefits to the economy - including improved productivity and innovation - could be significant, it remains extremely difficult for operators to justify the multi-billion pound investments required."

BSG makes several recommendations in the report, calling on the government to ensure that UK broadband coverage and performance remains in the top 25 per cent of OECD nations and to provide public sector financing: "it is highly likely that public sector support will be required" it notes.

Ofcom should establish a regulatory approach that achieves the right balance of incentives and competition that will encourage the industry to invest in next-generation networks, claims the report.

It also says that Ofcom should begin monitoring the demand for bandwidth both in the UK and internationally and make the resultant data publicly available.

In addition, the BSG urges the whole industry to explore alternative commercial models capable of supporting the necessary network investment.

Solutions need to be found that align the interests of operators with content and service providers and consumers whilst mitigating concerns about blocking or degrading third party applications and services, the report says.

"Broadband is key to the UK economy and has a critical impact on many people's daily lives," said BSG chairman Kip Meek.

"We have a limited window of opportunity: if steps are not taken within the next year to prepare for next-generation broadband, then we my well find ourselves in a position where it is too late to catch up."

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