Britain is lagging behind most developed countries in the
development of its broadband infrastructure. The UK is 11th out of
13 in deployment of broadband in the Organisation for Economic
Co-operation and Development (OECD) area and will not rise above
seventh by 2005
The Government's e-envoy had promised that the UK would have the
cheapest and most widespread broadband access in the OECD by that
date, but insiders in the Broadband Stakeholders Group (BSG), which
is working with the e-commerce minister to draw up plans to achieve
a Broadband Britain say seventh is the best we can hope for. What
is more, last week's annual survey from the Communications
Management Association (CMA) said that 71% of those questioned
believed their businesses were being hampered by a lack of
broadband access. This has increased from 45% of respondents in
last year's survey.
But who is to blame? Some point the finger at BT, some at the
Government. BT says lack of demand is the key problem. And what are
the effects of UK plc's failure to provide itself with a fast
Internet infrastructure?
David Harrington of the CMA believes his organisation's findings
should cause alarm bells to ring in government. "The lack of
broadband access is inhibiting the expansion of e-business in the
UK where businesses are seeking to reach out to the end-user," said
Harrington.
Ian Foxley, IT director of Domino's Pizza, agreed. "Businesses are
inhibited by this situation, and people are limited in their access
to information. We are already using multi-platform ordering
capability, but there are offerings we could deliver to people if
broadband was more widespread," he said.
Tim Johnson, principal analyst at Ovum, lists the deleterious
effects of a continuing narrow-band UK. "Broadband is important for
an economy. It increases productivity - things could be done much
more quickly and techniques such as application service provision
could flower. "There are also a number of businesses which would
work if broadband was widespread, those using streaming media, for
example," he said.
Harrington blames BT. "I believe that ADSL (asymmetric digital
subscriber line) in the local loop will only be rolled out
according to BT's agenda. If I was at BT I would take every measure
to ensure the infrastructure is not rolled out until demand is
there. And that's what the survey shows is happening."
The telecoms giant has been widely viewed as dragging its heels on
providing access to exchanges for competitors who want to provide
ADSL services to homes on the "local loop" - the copper cable into
subscribers' homes.
BT resists such accusations. A spokesman said 1,000 exchanges, or
potentially 70% of Internet users, are now ADSL-enabled. "Access is
available, supply is there, but what hasn't happened is take-up.
"BT has reduced prices but it is still difficult to compete with
the cable operators," he said.
But the debate can clearly not remain at the level of
finger-pointing between players. Johnson is critical of Government
efforts so far. "We keep hearing that the Government is allocating
millions of pounds to various projects, but we never hear what has
been achieved and what exactly will be happening next."
He believes that the Government is all talk and no action. "Schemes
that consolidate demand, like the Government has promised, are a
good thing. But all we hear are announcements, never what's
actually happening."
Harrington said, "A strong response is needed from the Government
and Oftel. A forceful initiative with fiscal incentives to
stimulate supply and demand such as a requirement that all new
buildings be provided with fibre in the same way that they get gas,
electricity and water."
The DTI admits that it still faces challenges. A spokesman
highlighted last week's announcement of £30m of funds to stimulate
broadband and said that it will be consulting with infrastructure
and content providers via the BSG to plot the way forward. "We face
clear challenges but it is not just up to us," said the
spokesman.
Many observers cite the case of South Korea. There a small number
of telecoms companies have been working closely with the government
on a long-term commitment to achieving high levels of broadband
penetration in the economy.
And it would make economic sense for the Treasury, Harrington said.
He cites BSG studies which have calculated that the fiscal impact
of full, or even improved broadband access would yield a net
increase in taxation revenue.
Whatever the claims and counter-claims it is clear that no-one is
confident enough to say that the UK leads the world in the type of
high-speed network access that is essential for tomorrow's
economy.
Only a few are speaking out about what this may mean for the future
of UK plc. "Britain is in danger. We are lagging behind - but at
least at the moment no-one has got very far," said Johnson.
antony.adshead@rbi.co.uk