Next-Gen broadband could boost economy

09/06/2008

The Broadband Stakeholder Group (BSG) has said the UK "could reap significant social and economic value from the wide spread deployment of next-generation broadband."

It says the benefits would outweigh the cost despite estimating that introducing technology such as fibre-to-the-cabinet and fibre-to-the-home to 80 per cent of the country could cost £16 billion.

But BT has refused to make a case for implementing the technology nationwide and the BSG concur that it may not yet be the right time for telecoms companies to act.

"There is still real uncertainty about the extent to which investors will be able to realise enough of this value to justify investment," it said.

"The BSG believes that in the short-term, there are unlikely to be significant costs associated with delaying deployment and there may actually be considerable value in waiting for a limited period in order for more information to emerge, before investing."

The government, though, warned telecoms companies not to wait too long after strong evidence that the UK is falling behind in terms of internet speeds.

A report last year claimed UK broadband was amongst the slowest in Europe.