Government launches next-gen broadband review

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The government has launched an independent review into how the UK will turn next generation broadband networks from fantasy to reality.

Announced on Friday the review aims to look at potential barriers and what the government can do to help ease the transition to such high-speed broadband given that it is now recognised that such connectivity is critical to the country's future economic success. It will be led by Lehman Brothers' Francesco Caio, former chief executive of Cable & Wireless.

"The way we will do business, access many government services, as well as information and entertainment, will change beyond recognition over our lifetime. New technologies will push the boundaries of today's communications infrastructure," said Shriti Vadera, business and competitiveness minister, in a statement.

"We must be ready to respond to future technological developments, which will place unprecedented challenges for our communications networks over the coming decade. That is why we need to look ahead to the future now," Vadera said. "We need to prepare the way for the UK to adopt groundbreaking new technologies to ensure that we do not get left behind - competitively or technologically. We must not be in a situation where our creativity and growth of our businesses are stifled by inadequate communications and regulatory frameworks."

In addition to considering possible barriers to new models of investment, the review will also look at the potential to minimise the cost of private sector investment, including whether or not there is a role for the public sector to play.

Furthermore, Ofcom's role and whether it needs new powers to establish effective regulation in this area to provide "regulatory certainty for investors and sufficiently incentivise new investment in high speed access".

In parallel with the review, the government is asking the Broadband Stakeholder Group (BSG), which outlined nine key areas for next generation broadband action in its Pipe Dreams report published last April, to examine the economics surrounding the deployment of fibre.

"This is the right announcement at the right time. The BSG has stressed the importance of building an evidence base that permits more informed decision-making on the various policy, commercial and regulatory issues. The review addresses some of the BSG's central concerns about next generation broadband and we'll be fully engaged to support its work," said Kip Meek, the BSG's chairman.

He added: "There are several positive signs that the UK's transition to next generation broadband is underway. However the scale of investment required is an order of magnitude greater than the investment that enabled the shift from narrowband to broadband. Government must play its part in creating the right framework to enable timely and efficient investment."

In the autumn, the results of the review will be fed to and digested by the Secretary of State for Business, Enterprise and Regulatory Reform (BERR) and the Chancellor of the Exchequer.

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