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Fibre mooted for next generation broadband
(26-09-07) - Ofcom has today published a consultation paper on the development of next generation broadband access in the UK.
Considering a variety of technologies for the provision of super-fast broadband up to 100Mb - already available in countries from France to Japan and the US - Ofcom’s Future Broadband report cited both Fibre-to-the-Home and Fibre-to-the-Cabinet as potential solutions.
However, Ed Richards, Ofcom CEO warned that because of the huge costs involved - estimated to be in the region of £10 billion to £15 billion for Fibre-to-the-Home for the whole of the UK - providers must not be expected to take unnecessary financial risks. “Next Generation Access offers tremendous new opportunities for UK business and consumers, and its potential impact on the economy is very significant,” he said.
But since “investment in next generation access will represent a substantial commercial risk,” he said, “the market should decide where and when it will be made. We want to ensure there are no barriers to investment and provide a clear regulatory environment which will help encourage investment.
“But we also want to ensure that the benefits of competition which consumers have enjoyed with current generation broadband can also be achieved as we move to higher speed next generation access,” he added.
Ofcom will be carrying out a consultation with industry stakeholders over the coming months to determine exactly how, when - and crucially - who should be investing in upgrading the UK’s broadband network.
Although Stephen Timms, minister for competitiveness, recently said that next generation broadband was “essential” to the UK, Ofcom seems to think that it is not something that requires immediate action since the current level of broadband services are adequate for coping with most consumer demands.
Michael Phillips, BroadbandChoices.co.uk product director, said: “Ntl came very close to going bust in 2002 after its massive investment in the cable network, so providers are right to be wary about investing in next generation access while the Government and Ofcom are still unsure of what we would do with speeds of up to 100Mb.
“However, while it is all well citing the UK’s current top speed of up to 24Mb, there are very few people getting anywhere near that. A fibre network - even just as far as the street cabinet - would go a long way to alleviating many customers’ current speed grievances.”
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