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Every community in the UK will gain access to super-fast broadband by 2015
under plans outlined today.
The private sector is to deliver broadband to two thirds of the UK. Other,
mainly rural, areas will receive public funds to build a "digital hub" with a
fibre optic internet connection.
Ministers say they aim for the UK to have Europe's best broadband network.
"The reason we want to do this is very simple -- it's about jobs," says Culture
Secretary Jeremy Hunt.
Speaking to the Today Programme he said the government had a key role in
"catalysing investment by the private sector" in broadband. Mr Hunt cited the
example of South Korea which has high speed broadband throughout the nation and
which was "90%" paid for by private firms.
The government has earmarked 830m for the scheme, with some of this money
coming from funds given to the BBC to pay for the switch to digital TV.
Mr Hunt said the strategy would give the country Europe's best broadband
network by 2015 and will be central to economic growth and the delivery of
future public services, dependent on quick, reliable access to the internet.
Explaining why the government had abandoned the plans of the former
administration that promised 2 megabits per second broadband for all by 2012,
he said: "It's silly to hang your hat on a speed like two meg when the game is
changing the whole time.
He added: "What we've said is that just giving people two meg is not enough,
what people use the internet for is changing the whole time."
A recent study by the regulator Ofcom revealed that fewer than 1% of UK homes
have a super-fast broadband connection, considered to be at least 24Mbps.
However, the government does not define the minimum speed it hopes super-fast
services will achieve.
"In order to determine what constitutes 'the best' network in Europe, we will
adopt a scorecard which will focus on four headline indicators: speed,
coverage, price and choice," the strategy says.
"These will be made up of a number of composite measures rather than a single
factor such as headline download speed."
Difficult-to-reach areas
Much of the detail of the government's broadband strategy has previously been
announced, including how it will be funded and the coalition's desire to see
everyone able to access broadband with speeds of at least 2Mbps by 2015.
Analysis
Rory Cellan-Jones Technology correspondent, BBC News
The coalition started with two challenges - how to get a minimum level of
broadband to everyone and how to make sure that parts of Britain didn't get
left out as super-fast networks rolled out. Ministers have decided to roll the
two tasks together into one; the aim is that those who have missed out so far
will leapfrog straight from dial-up to the superfast era.
The onus will be on local authorities to work with community groups and big
businesses to work out how to build the digital hub in each place. There's
plenty of scope for disagreement there, as rival firms and different
technologies bid for the limited pool of cash.
So how does this compare with what the last government was planning? In one way
it's less ambitious - the 2012 target for universal coverage has been put back
to 2015; in another way more, with a bold target of Europe's best broadband by
then.
And how will that be measured? By performance on price, choice, coverage and
speed. Britain does well right now on the first three, but is way down Europe's
speed league. Getting to the top of the table in five years won't be easy - the
likes of Sweden and the Netherlands aren't just going to stand still.
Labour promised the same minimum speed for everyone by 2012.
But the coalition says that it will now roll together its drive for universal
access with its strategy to deliver super-fast broadband.
At the heart of this is a plan to create a "digital hub" in every community by
2015.
"Our goal today is very simple: to deliver a fibre point in every community in
the UK by the end of this parliament," Mr Hunt is expected to say when he
delivers a speech outlining the strategy at the London headquarters of computer
giant Microsoft.
Communities and local operators would then be expected to take on the
responsibility for extending the network to individual homes.
The coalition has earmarked 50m of the 830m to pay for trials - particularly
in difficult-to-reach areas - to see how it can ensure that super-fast fibre
optic broadband reaches these communities in the timescale.
These new trials will run alongside projects in North Yorkshire, Herefordshire,
Cumbria and the Highlands and Islands, announced earlier this year.
"We will be inviting local bodies and devolved administrations right across the
UK to propose new testing projects in April of next year, with a view to making
a final selection in May," Mr Hunt will say.
In his speech, Mr Hunt will also confirm that the government will sell off
parts of the spectrum in 2011 that could be used for mobile broadband services.
Back aches
The strategy was welcomed by the Independent Networks Cooperative Association
(Inca), a group of community broadband schemes.
"It is great that the government has taken up the 'digital village pump' idea
that has been put forward by a number of broadband champions," said Malcolm
Corbett, CEO of Inca.
"This could go a long way to tackling one of the big problems with all rural
broadband services - the costs of backhaul - the connection from the community
to the internet.
"However, more needs to be done and the strategy misses some obvious
opportunities, not least the way that business rates are levied on fibre."
The current regime of levies on fibre installations has been a major bone of
contention, with smaller firms claiming they are discriminated against compared
to giants BT and Virgin Media.
Inca's view was echoed by Trefor Davies, CTO of communications firm Timico.
"The problem with this is that it is effectively handing the cash to BT because
the fibre tax system will make BT the only company able to offer a competitive
backhaul," he said.
Both called on government to address the levies and also to ensure that smaller
firms had "viable" access to existing infrastructure - such as BT's ducts and
poles - that would be used to carry their services.
Without this, they said, small firms would be at "a competitive disadvantage"
compared to BT when bidding to provide services.
Mr Hunt said that BT had signaled that it will match the government's 830m of
funding if it is awarded the contract to provide the infrastructure for the
community hubs.
The firm said that if it was to "win funds on that scale" it would be able to
provide fibre to 90% of the UK.
Under current plans, its fibre will extend to 66% of the UK, although only a
quarter of this would be the faster Fibre-To-The-Home (FTTH) technology.
The rest is the slower Fibre-To-The-Cabinet (FTTC), similar to the government's
"digital hub" plans, which does not guarantee a super-fast fibre connection all
the way to a person's home.