ISP investment in building fast broadband networks could stall
even though the UK economy would benefit from a full-fibre
roll-out, an influential advisory group warned today.
The Broadband Stakeholder Group report said the cost of building
an all-fibre network, which could deliver
speeds of 100mbps to homes and businesses, would reach £16bn,
but that the economic benefits to the UK would exceed this
figure.
However, the report said that ISP investment in building
networks could stall because there was uncertainty about how fast
providers would recoup their investment.
"There is still real uncertainty about the extent to which
investors will be able to realise enough of this value to justify
investment," said the report.
The report recommended that
providers, government and regulators work together to create
find a way to encourage investment in time or else the UK could
lose out.
"The UK cannot wait too long," said Antony Walker, CEO of the
Broadband Stakeholder Group. "If widespread
network deployment does not happen in the medium term - perhaps
three to five years - then this report suggests that the UK
could be losing out."