i3 concerned over Next Generation Access fund

The Next Generation Access Fund now under consultation could be responsible for disincentivising the firms that can deliver universal broadband according to fibre optic infrastructure specialist, i3 Group.

The consultation, a result of the Digital Britain Report, was launched this month and is designed to get feedback on how the 50p levy on all fixed telephone lines will be utilised.

Elfed Thomas, CEO i3 Group comments: “This initiative could actually be responsible for driving innovation out of the UK.

“Other countries around the world are embracing next generation access and governments are supporting projects while the UK prevarication continues to lag behind through uncertainty.

“The proposed tax could result in the creation of an uncompetitive market for next generation services which will impact service providers and consumers alike.

“The initiative is also likely to disincentivise companies like ours from providing an infrastructure if the tax is levied on next generation fibre-optic connections as the cost of building networks becomes prohibitive against the yield they would provide.”

i3 Group has developed patented models and through its companies, Fibrecity Holdings and H2O Networks, is building low cost fibre networks for consumer and business use.

These models are already being implemented throughout the UK and internationally.

Mr Thomas continues: “One of the biggest questions we need to be answered is how will the estimated fund of £1 billion be used and will it be used constructively?

A lot of discussions are underway, but businesses and consumers need action now and the consultation needs to be quickly concluded.

“The Digital Britain Report did not go far enough to ensure the UK’s place as a leading digital economy – universal broadband of 2Mbps is inadequate, out dated and lacking in ambition.

I sincerely hope that this next level of consultation is brought to a swift conclusion so that the business of replacing the antiquated copper reliant networks takes effect rather than just debating it.”

Fibrecity Holdings is currently connecting homes in Bournemouth to its fibre optic network that will deliver 100Mbps connectivity and is committed to connecting 750,000 homes to fibre optic networks around the UK over the next two years.

i3 Group’s FS System utilises ready made ducts including the sewer system to lay the fibre optic cable which avoids costly road digs.

The Group’s methods mean that communications networks can be laid quickly and cost effectively and are a viable solution to the infrastructure that the UK requires to ensure universal broadband.

For more information of Fibrecity’s open access network please visit www.fibrecity.eu

Story link: i3 concerned over Next Generation Access fund