Private enterprise to fund broadband upgrade

Upgrading the UK’s broadband network to superfast fibre optic cables should be paid for by telecoms companies, a government-backed review has concluded.

The review into the future of British broadband, headed by former Cable & Wireless boss Francesco Caio, concluded that the government should not be ‘complacent’ about the country’s broadband network, but added that the case for taxpayers subsidising network upgrades is weak.

Instead, the billions of pounds needed for the upgrade should be paid for by broadband providers.

Government ministers understand that an up-to-date broadband network is integral to Britain’s economy, with many employees now choosing to work from home over their broadband connection.

However, Caio’s report said there is ‘little evidence’ that the UK’s economy will suffer in the short term if superfast broadband is not installed.

In the future, Caio concluded, superfast broadband will become a vital digital utility.

Virgin Media, currently the only provider to offer fibre optic broadband, responded positively to the report and said it shared Caio’s view that Broadband will provide the stimulus for the development of a dynamic and competitive industry.

By contrast, consumer groups were disappointed by the report’s conclusions.

A spokesperson for broadband comparison site ChooseISP.co.uk said leaving broadband investment to private enterprise would result in a haphazard network, with rural areas likely to lose out.