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UK trails on super-fast broadband

2009-12-12 11:57:35

The UK is trailing when it comes to next-generation access, new figures show.

According to the Organisation for Economic Co-operation and Development (OECD),

the UK is placed 21st out of 30 in terms of speed.

That puts it below countries such as Greece, Portugal and Spain.

The report suggests that countries that invest in fibre networks are likely to

see the best economic returns in other areas.

When it comes to broadband penetration, the UK is doing OK - placed 13th out of

the 30 OECD members.

But most of these subscribers still access broadband via so-called DSL (Digital

Subscriber Line) rather than via fibre.

Overall, nearly one in 10 OECD subscribers currently accesses the internet over

fibre.

In Japan and Korea, most people do; it is also growing fast in Sweden, Denmark,

Norway and the US.

The report finds that many governments are subsidising the rollout of new

broadband networks.

FASTEST BROADBAND NATIONS

Japan - top advertised speed 1Gbps

Finland - 110Mbps

Sweden - 100Mbps

Korea - 100Mbps

Iceland - 100Mbps

France - 100Mbps

Denmark - 100Mbps

Netherlands - 60Mbps

United States - 50Mbps

Spain - 50Mbps

It concludes that such subsidies are justified because of the benefits

broadband can make in four key sectors of the economy - electricity, health,

education and transportation.

"If you cut 1% off the costs of education, electricity, health and transport

you would more than pay for a fibre network," said Taylor Reynolds of the

technology division of the OECD.

"That is the type of thinking required by countries considering rolling out

next-generation networks," he said.

Broadband tax

With the UK's broadband population standing at nearly 18 million, take-up of

the technology is good but there are concerns about how quickly the UK is

rolling out super-fast services.

The government wants to see super-fast broadband available to 90% of the

country by the end of 2017.

Superfast broadband is generally regarded as speeds of 50Mbps (megabits per

second) or above.

Currently BT has plans to offer a mixture of fibre technologies to around 40%

of the country and Virgin Media has made cable broadband - capable of speeds of

around 50Mbps - available to half of UK homes.

The government has announced a 6 a year tax on fixed-line phones to raise

funds for the 30% of the country that it estimates won't get super-fast

broadband via existing commercial broadband plans.

It hopes to raise around 170m a year through the levy, although the

Conservatives have vowed to scrap the tax if they win the next election.