UKbroadbandoperators met
competitiveness minister, Stephen Timms, last week to discuss how
to increase investment in building faster next-generation broadband
networks in the UK.
Timms told the assembled companies that fast broadband was
essential to the UK's international competitiveness. "If we delay
in putting this new network into place it could be a barrier to the
future success of our economy," he said.
But commentators warned that building faster broadband networks
might only increase speeds in cities that are already well served,
leaving remote regions of the UK with a second-rate broadband
service.
Competitive disadvantage
They argued that unless telecoms watchdog
Ofcom introduces a minimum
broadband speed for businesses that all operators must deliver
nationwide, then companies in remote locations could be left at a
competitive disadvantage.
Antony Walker, chief executive of industry-government forum the
Broadband Stakeholder Group, said that there are still areas in the
UK where businesses have to pay high prices for broadband
connections that offer limited connection speeds compared to those
found in major cities.
Small and medium-sized business (SMBs) would be the first to
feel the pinch, unless fast broadband is offered universally across
the country. "SMBs are not concerned about competing with the
business down the road any more. They are competing with businesses
internationally, and broadband access enables this. It will not be
tolerable for long if they do not have equal access with
international competitors," said Walker.
The UK lags behind Japan, France, Korea and Sweden, which all
offer top access speeds above 20mbps as standard. According to the
Organisation for Economic Co-operation and Development, the highest
advertised UK speed is 24mbps, but this coverage is not
nationwide.
Minimum level of speed needed
MP Peter Luff, chair of the Business, Enterprise and Regulatory
Reform Select Committee, said that establishing a minimum
guaranteed level of speed, regardless of how far a business was
from an exchange, needed addressing before moving on to next
generation networks.
One problem is that the definition of "broadband", and therefore
broadband speeds, can vary from operator to operator.
Ian Fogg, research director of Jupiter Research, summarised the
findings of a broadband speed test using a BT business-grade line
of 8mbps. The actual speed delivered was much lower, he wrote in
his blog. In 10 separate tests, speeds reached just 29% of the
8mbps maximum possible.
Ed Richards, chief executive of Ofcom, said that the regulator
had a role to play in building up a robust regulatory framework
that would allow broadband operators to deploy fast broadband when
there is a clear business case for doing so.
But in areas where the business case for upgrading networks is
weak, intervention from the regulator might be needed, said
Fogg.
"Upgrading current broadband networks and deploying next
generation ones does not happen overnight. Even once they are ready
the benefits to UK businesses can take up to three years," he
said.
Are you satisfied with the speed and price of your business
broadband connection? Computer Weekly is investigating the
availability and cost of business broadband in different parts of
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