Ofcom and BT express doubts over need for faster broadband
Wednesday 05 December 2007
Independent regulators Ofcom and BT have both raised concerns over whether the push for faster broadband could be premature, according to reports from the BBC. Both lack of demand and the high upgrade costs of up to £15bn are the main concern for Ofcom and BT: "We need significant evidence that such a network is required and I don't think it exists yet," said Peter Philips, Ofcom's head of strategy. "We have to ask ourselves what would be the disadvantage if your investment comes later than others. Would be able to learn from the experiences in other countries."
So far only BT has offered funds for the new fibre network on new housing estates. "No-one would be more delighted if a commercial incentive emerged that enabled us to fibre the nation," said Peter McCarthy-Ward, BT's director of equivalence. However, recent talks with Ofcom has raised concerns with him over whether high-speed broadband demand exists in the UK. McCarthy revealed that any commitment to a fibre network would need to be backed by reassurances from Ofcom that it would be able to recoup its investment.
Talks of the super-fast broadband upgrade reached Westminster in recent months, with minister, Stephen Timms hosting a summit on the broadband issue and a debate forming on the Westminster eForum.
