Feeds

Competitive broadband could add £22bn to UK economy

BIG idea takes off

  • alert
  • submit to reddit

Business security measures using SSL

The widespread take-up of broadband could give the UK economy a £22 billion shot in the arm, according to research published today.

The centre for economics and business research (cebr) found that UK productivity could rise by 2.5 per cent by 2015 - the equivalent of workers toiling for an extra hour each week.

Not only would people benefit, cebr reckons that government borrowing would be down by £13 billion by 2015 through lower public sector spending and extra tax revenues from a faster growing economy.

However, there is an "if". And that "if" is that the UK will only reap these economic benefits "if" there is greater competition, greater wholesale competition within the UK's broadband market.

The research was commissioned by the Broadband Industry Group (BIG) a new lobby group made up of Brightview, Cable & Wireless, Centrica Telecommunications, Energis, Freeserve and Tiscali.

BIG has been formed to campaign for greater competition in the UK broadband market through BT cutting the wholesale cost of broadband.

Said Energis boss John Pluthero: "If we want an innovative, dynamic broadband market delivering huge economic benefit to the UK, genuine wholesale competition is needed.

"The time for action is now. We look forward to working together with Ofcom and other operators, including BT, to make this happen."

Earlier this month David Edmonds, head of soon-to-disappear telecoms regulator, Oftel, indicated that there is little need for further regulatory interference to force down the wholesale cost of broadband.

The regulator is due to publish next month the findings of its latest review into high speed Net access in the UK. Oftel is concerned that any further cuts to wholesale prices would dissuade BT from investing further in broadband. And it also believes that further cuts in wholesale charges for ADSL would also make it even more difficult for operators to introduce other technologies - such as satellite or wireless - into the marketplace.

It seems Oftel is happy with the current state of the broadband market. Whether its successor - Ofcom - shares this assessment of the UK's broadband market remains to be seen. ®

Related Stories

Oftel unlikely to demand broadband cost cuts - report
BIG idea calls for BB competition

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.