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September 15, 2008

Government will not pay for broadband upgrade

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by David Allen

So much has been said about the upgrading of the UK broadband network and this is especially so when it comes to the amount of cash that is going to be needed to finance the fibre roll out across the UK.

In order to put their position in perspective the government instructed The Department for Business Enterprise and Regulatory Reform (BERR) to produce a report on the next generation of broadband technology.

The report was written in the main by former Cable and Wireless chief Francesco Caio, and his recommendations are that the government need not invest into the new technology, as the costs for this should be picked by the industry.

However the report did say that the government and the regulator Ofcom cannot just sit back on the sidelines either. They need to get involved but not in a financial way.

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