This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/technology/7610692.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
UK prepares for faster broadband No aid for next-gen network firms
(about 5 hours later)
The government is to unveil findings from a long-awaited review of the UK's broadband services. There is no need to use public money to bankroll next-generation broadband in the UK, says a report.
They will help decide if firms should get subsidies to lay higher-speed cables for homes and businesses. The six-month long review of the UK's readiness for high-speed net access said the case for government intervention was "weak".
Industry estimates have put a minimum £5.1bn price tag on fitting the UK for next-generation broadband. The review said there were "promising signs" that the market was already delivering high-speed broadband.
That service would boost the speed of connections linking homes and businesses to the net to 100 Megabits per second (Mbps) and beyond. But, it said, the government must oversee initiatives that will smooth the route to high-speed access.
Capital cost fears Speed boost
In the UK the average speed of high-speed fixed line net access is 3-4 Mbps - depending on where people live. Telecoms firms aim to boost speeds by replacing ageing copper cables with fibre and use light to carry data. "There is little evidence that in the short term the UK is going to suffer from the lack of an extensive next generation access network," said review author Francesco Caio as he unveiled his conclusions.
However, the capital cost of such a national re-wiring programme could prove prohibitive. Rather than hand over public money to telecoms firms that will be laying fibre-optic cables to homes and businesses, Mr Caio said the government should ensure the regulatory regime encourages firms to take the financial risks themselves.
The cost of stringing fibre cables to every home and business could cost £28.8bn, according to a report from the Broadband Stakeholder's Group (BSG). Next-generation broadband would boost the speed of connections to 100 Megabits per second (Mbps) and beyond.
The cheapest option would be taking fibre to the street cabinets that connect homes and businesses to telephone exchanges. But, said the BSG report, even this could cost £5.1bn. In the UK the average speed of high-speed fixed line net access is 3-4 Mbps - but this fluctuates widely depending on where people live. Telecoms firms will boost speeds by replacing ageing copper cables with fibre that use light to carry data.
The BBC has been told that the report says there is no case for the UK government to provide cash subsidies to telecoms firms in order to accelerate the deployment of fibre. The cost of putting in a basic next-generation broadband is likely to top £5bn according to analysis by the Broadband Stakeholder's Group. Laying cables to every home and business could push costs to £28bn.Laws prohibit using overhead cables for next-generation networks.
BT commitment Mr Caio said BT's plan to spend £1.5bn on laying fibre and Virgin's plans to improve its network were "promising signs" that the UK was on track to update its broadband infrastructure.
It is also believed to stop short of recommending big changes to the UK's regulatory regime to ensure firms invest in fibre. However, a report from net firm Cisco suggests that the UK's net infrastructure is already falling short of what users want to do with it. Cisco drew up a net quality index which looked at whether the infrastructure was reliable enough to become the bedrock for existing or future web-based services and applications.
Telecoms giant BT has already said it would invest £1.5bn to upgrade its network and put 40% of UK homes within reach of next generation broadband by 2012. In addition Virgin is investing in its network to boost speeds to subscribers. "Notably the UK, Spain and Italy didn't cut that threshold, even for today's applications," said Fernando Gil de Bernabe, a spokesman for Cisco.
The report, written by former Cable and Wireless boss Francesco Caio, is believed to call on the government to keep an eye on the development of next-generation broadband. The government's role in next-generation broadband should be to support local groups keen to signal their interest in getting high-speed access. It should also relax rules that stop high-speed access being offered via overhead and work with building firms to ensure all new build homes have next-generation access.
The review was kicked off on 22 February 2008 by Business and Competitiveness Minister Shriti Vadera.
It aimed to find out what the government should do to ensure next generation broadband technology does get rolled out in the UK in a timely fashion.
The review was tasked with discovering what, if any, barriers existed that would stop firms taking on the financial risk of investing in the technology.
The government said it would respond to the review and its recommendations in "due course".