Consultation on Next Generation Broadband Fund
Today the government launched a consultation to decide how money from the Next Generation Fund should be spent. The 50p levy on all telephone lines is the source of the funds and is expected to raise around £175m a year, with £1 billion of this to be used by the government to help provide super-fast broadband to 90% of the country by 2017. It is estimated that without the use of the fund, next generation broadband, currently available to 50% of the population, would only reach 70% of the country.
According to Lord Mandelson, Business Secretary, “This investment is about bringing the future of broadband to areas of the country that would otherwise miss out. We cannot underestimate the opportunities this will bring for homes and businesses which is why we are taking action to make sure everyone benefits.
“Already the market is delivering superfast internet speeds of 50Mbps to half the country but we cannot be certain that it will reach the communities that are not currently served, which is why we are putting in an extra £1billion to support the market.
“By upgrading our networks we will put the UK at the fore of rapidly developing technologies which will bring jobs, boost business potential and grow our digital economy.”
The government is evaluating different Next Generation Access (NGA) technologies, including Fibre to the Cabinet, Fibre to the Home, Satellite, WiMAX and Long Term Evolution, which may be viable options. Right now, it is uncertain when things like Long Term Evolution will be available, so fixed line solutions seem like the best option in the short term.
The government are also intending that where money is provided, it should be used to fund an ‘open access’ network. This would of course mean that it would work in a similar way to existing fixed-line broadband from BT where providers can sell their own broadband services over the BT deployed network, helping to give consumers a choice and produce some competition to the market.
The consultation can be read in full on the Department for Business Innovation & Skills website, and is open for responses until 01/04/10.