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Story URL: http://networks.silicon.com/broadband/0,39024661,39166756,00.htm

UK faces broadband deadline threat
Will we be ready for the next generation?

By Gemma Simpson

Published: Monday 16 April 2007

The digital divide could deepen further and the economy suffer unless the UK improves its plans for the next generation of broadband within the next two years.

If the UK fails to offer the same bandwidth as other countries, the pace of innovation in the economy could slow, according to a report from the Broadband Stakeholder Group (BSG) - a government advisory group on broadband and digital convergence.

The government has 12 to 24 months to develop and implement broadband policies to ensure a market-led transition to next-gen broadband - offering download speeds of 20Mbps or more - according to the Pipe Dreams? Prospects for next generation broadband deployment in the UK report.

Antony Walker, CEO of the BGS, told silicon.com it is likely there will be a similar range of benefits from the switch to faster broadband, as was seen from the move from narrowband to broadband.

The BSG's three main recommendations for a high-speed broadband Britain

♦  The industry needs to develop business models to more accurately reflect the costs involved in providing next-gen broadband.
♦  Ofcom needs to improve its regulatory framework for next generation broadband to balance investment incentives and competition to make the market work.
♦  The government must reduce some of the costs operators face when deploying next-gen networks and understand the implications of what will happen if the UK does not act now.

The report knocks ADSL2+ - which is run over copper-based networks - as a possible next-gen player because the download speed offered by the technology decreases the further the user is from the exchange.

Although wireless technologies will play a part, the move to super-broadband will require the deployment of optical fibre deeper into the local access network, either to the street cabinet or directly to the customer premises by fibre to the home (FTTH) technology, said the report.

The cost of providing FTTH to 90 per cent of UK households has been estimated at €14bn, according to figures from the Organisation for Economic Co-operation and Development.

But last week BT announced investment in its all-IP next generation network – known as 21CN - has knocked hopes of FTTH technology in the UK.

Walker added: "There isn't yet the right balance of incentives in the market, either commercial or policy or regulatory, that would make that a sensible decision for BT."