Minister of State for Competitiveness Stephen Timms has called a
summit on public sector intervention in the broadband market,
saying that other countries are laying down fibre networks which
outstrip the UK's current infrastructure.
"Today we face a new challenge. Other countries are starting to
invest in new, fibre based infrastructure, delivering considerably
higher bandwidth than is available in the UK today," he said.
Timms said that the Government must look at getting involved in
the market for broadband infrastructure if that is what is needed
to prevent the UK lagging behind.
"I see it as one of my highest personal priorities that we have
a high performance telecommunications infrastructure in every part
of the country, enabling us to compete successfully on a global
basis," he said. "That is why I have decided to chair a high level
summit later this year to consider the circumstances that might
trigger public sector intervention, the form that intervention
might take and at what level it might sensibly take place."
The UK is not as advanced as European neighbours when it comes
to the sophistication of the 'last mile' of telecoms networks, the
link between homes and telephone exchanges. Other European
countries are actively looking into replacing copper lines with
fibre optic ones, but little such activity is evident in the
UK.
Government intervention would not have to be as severe as
actually paying for work to be done. One way it could affect the
market for broadband, say observers, would be to help make civil
engineering cheaper to undertake to lower the cost of laying
cables, or allowing fibre to run in municipal civil
infrastructure.
"Other countries are investing in higher speed broadband and the
UK isn't," said Kip Meek, chairman of the Broadband Stakeholder
Group (BSG), a group of industrial advisors to the Government on
the issue of broadband.
"If we want to see the UK stay ahead amongst the international
leaders in broadband, we must find a way to encourage timely and
efficient investment. We're not looking to government for all of
the solutions, but we are looking for ministerial leadership," said
Meek.
The BSG warned earlier this year that lags in broadband
infrastructure building would not only cause the country to fall
behind international competitors for inward investment and economic
growth, but would widen the domestic digital divide.
The body called for public sector intervention in the broadband
market "where persistent market failure is likely to occur".
