The world is not enough

Forgive the James Bond reference but I’ve been re-reading the DCMS rhetoric on the planned Communications Bill and I’m left a little saddened by the lack of ambition for the UK’s broadband infrastructure.  In his open letter to launch the current Comms review, Jeremy Hunt set out the government’s policy position as follows:

“Our approach is a combination of targeted financial support with £530 million available up to 2015 to support broadband rollout and regulatory and policy interventions aimed at reducing barriers to private investment in superfast broadband networks”.

So what does that mean in practice?  Some understandable local excitement about micro projects for new access hubs?  Yes.  Some tentative steps to open BT’s passive infrastructure (ducts and poles) to third parties?  Yes.  A co-ordinated plan to give the UK ‘the best broadband network in Europe’?  No way…

This is not meant to belittle the Government initiatives: they are worthwhile attempts to address pockets of demand for broadband that the private sector currently sees as unviable.  But the problem with any demand-driven model of infrastructure provision is that it is not forward looking.  It seems incredible that broadband traffic, probably the highest growth sector in the world – and universally acknowledged as the lifeblood of the digital economy – still relies on such a ‘catch-up’ investment strategy.  As with any ‘road-building’ plan, future demand for bandwidth is almost certain to exceed current expectations, so it’s no good dimensioning broadband networks for today’s needs.  Surely the time has come to develop a business model that encourages speculative investment in broadband capacity, thus putting the UK ahead of the digital demand curve…?

Question 9 of the DCMS consultation asks the following: “Is the current mix of regulation, competition and Government intervention right to stimulate investment in communications networks?”  Responses were due in by June 30^th; let’s hope that somebody pointed out that the current regime is not enough.