Monday, 10 September 2012
Nice move but no game-changer
Don’t
get me wrong: I’ve no wish to rain on anybody’s parade, least of all that of
the new Culture Secretary, Maria Miller.
The ‘swathe of red tape’ she plans to sweep away from the bureaucracy of
broadband deployment is truly welcome, has been widely
applauded and will no doubt lessen the pain for many of those intending to
lay fibre. I’m not even going to quibble
over the fact that the DCMS press release
which details the government’s intentions is riddled with phrases like ‘facilitate
discussions’, ‘broker a new deal’ and ‘review existing schemes’ – none of which
could be accused of excessive precision. No, the dissenting voice in my ear simply makes
the pedantic point that the overwhelming
challenge in constructing a broadband access network is the business investment
case, particularly since the asset deployed is both sunk (literally and metaphorically) and earns unusually slow pay-back. Other than at the margin, none of this is
changed by the DCMS announcement. So,
while a VM spokesperson is right to confirm that “steps like this will help support Virgin Media's on-going private
investment”, it unfortunately remains the case that the requirement for wholly
new infrastructure is essentially unaltered.
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