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Broadband Investment Could Help Save UK Economy
A report published by the London School of Economics has shown that an investment in broadband networks could help save the UK economy.
The report, part funded by IBM, highlighted that if £15 billion was to be invested into intelligent transport systems, broadband networks and a smart power grid, it could create more than 700,000 UK jobs.
Breaking it down to just the broadband sector, a £5 billion investment into the UK’s broadband networks could create more than 280,000 UK jobs. This means that Chancellor Alistair Darling promise in his budget to give £10 billion to the communication sector could result in the creation of around 560,000 UK jobs.
The London School of Economics also advised the Government to spend more on getting broadband connected to rural areas. Jonathan Liebenau, an LSE reader in Technology Management, said, “Our report shows that in this severe economic climate the right investment in ICT infrastructure would have a significant effect in creating jobs now and in stimulating productivity and innovation for the future.”
The report comes as millions of people are left out of work due to the UK’s worst recession since the war.
The report goes on to say, “Spurring investment in the UK’s infrastructure is an effective, immediate strategy to compensate for the downturn. However, while investments to improve the country’s traditional physical infrastructure such as roads, bridges and sewer systems, are necessary and important, investments in certain parts of the UK’s information and communication technology resources, or digital infrastructures, will have a greater positive impact on jobs, while at the same time laying the groundwork for sustained productivity and innovation.”
Government Urged To Go For 100Mb FTTH Broadband
The government has been urged by the i3 Group to commit to a 100Mbps fibre optic broadband to home network connection.
Since the Digital Britain Report was introduced back in January, the UK’s broadband speeds have been widely debated. With countries such as Japan already benefiting from speeds of around 100Mbps, it is feared that the UK will be left behind if it does not do something now to catch up.
The CEO of the i3 Group, Elfed Thomas, explained, “We are on the verge of a communications revolution in this country and the deployment of an infrastructure that will serve this nation for generations to come.”
Elfed continued, “For anyone to suggest that we let this opportunity pass with an “anything will do” attitude is scandulous. To say the public does not want 100Mbps is a smokescreen for the admission that BT is incapable of super fast broadband due to the limitations of its antiquated copper network.”
FTTH broadband is currently being installed by the i3 Group’s subsidiary “Fibrecity” in Bournemouth. There are 10 cities that are going to benefit from the network by 2010, but i3 says that there is no reason why other areas cannot also benefit.
Elfed also went on to explain that FTTH broadband can also be cost effective. He said, “Such low aspiration is an insult to UK plc, especially when we have a proven business model for fibre optic deployment which is already paying dividends for our customers and investors. With presence in Bournemouth and roll out starting in Dundee and South Ayrshire, we’re not simply chasing revenue by targeting the big cities like Manchester, Birmingham and London, as we want to see an inclusive, national rollout.”
Overall FTTH broadband definitely seems to be a potential answer when it comes to the cost effective implementation of a high speed broadband service. Japan uses an FTTH system and that is why it is currently the leading country in the world for broadband speeds.
Digital Britain Plan Could Increase Illegal Downloads
The Government has been warned that its Digital Britain plan could increase illegal downloads, with the music and film industry potentially being a thing of the past unless anti-piracy measures are introduced soon.
The warning follows a recent survey carried out by the Industry Trust where more than 30 directors of film and TV companies stated their concerns about the damage caused to their industries by piracy.
94% of them stated that if there wasn’t stronger support from the government, the damage caused may not be fixable.
The Industry Trust’s Director General, Liz Bale, recognises that the film and TV industries are not currently as affected by piracy as the music industry. However, she still feels that it is a wake up call for the government.
She said, “If the current framework hasn’t changed in five years, the UK industry will have become insignificant. This is a wake-up call for government as well as industry.”
Liz continued, “Digital Britain proposes creating a massive hub in the UK of innovative content creators and publishers, and net-savvy civilians backed up by digital literacy. But in opening the floodgates for business we need to make sure we are not enabling illegal businesses. We need to clear the undergrowth, in the governments own language.”
The worry over the rise in illegal downloads comes as new super-fast fibre optic broadband speeds are planned across many parts of the UK – potentially making it faster than ever for people to download movies and music illegally.
Broadband TV To Overtake Traditional TV
It is thought that broadband TV could soon overtake traditional TV as one of the main providers of TV programming.
The popularity of broadband TV has increased significantly over the past year due to its flexibility. As broadband speeds are increasing, it is now easier than ever to download movies and watch streaming video online.
New gadgets have also played a part in the popularity of watching streaming media online. The iPhone and newer iPods for example, enable users to watch movies and videos pretty much wherever they are.
Brian Turner, the executive editor of techwatch.co.uk explains, “Nowadays, internet protocol television services are becoming much more mainstream and home video entertainment systems repeatedly try and leverage the internet for a wider service offering.”
The recent Microsoft report known as “Europe Logs on: Internet Trends of Today & Tommorow” suggests that broadband TV will overtake traditional TV by June 2010. That is based on the current growth rate and popularity results in recent surveys.
Virgin Media are one company that knows just how popular broadband television has become. Their broadband TV on demand service is proving to be particularly successful.
They have also just finished testing how effective advertising through broadband TV is. The results found that consumer’s preferred the relevant ads that had been placed before and alongside their favourite programmes.
Overall broadband TV is definitely set to increase in popularity as faster broadband speeds are introduced. It would not be surprising to see broadband TV overtaking traditional TV by this time next year as on demand TV viewing becomes the norm.
Government May Help Fund Super Fast Broadband
At the Digital Britain summit in London, the Business Secretary, Lord Mandelson, has hinted that there may be Government funds available to help roll out super fast broadband across the UK.
With only half of the UK’s homes expected to have access to BT’s new super fast fibre optic broadband service by 2012, Lord Carter’s Digital Britain goal of full UK coverage currently looks unachievable – unless the Government intervenes.
Commenting on the possibility of Government funding, Lord Mandelson said, “Of course there is a possibility, but naturally enough not a certainty because I cannot pre-empt decisions taken by those above my pay grade.
Mandelson continued, “But let me say that I am a public investor where it is appropriate and right. I am not however somebody who believes in replacing market forces or displacing the private sector where they need to be in the lead and can do better than us in the government. So support, encourage, aid abet, even pump-prime here or there, is what we need to do as a government, but how and when are for others to decide.”
The Prime Minister, Gordon Brown, also stated at the summit that creating a universal service obligation for basic broadband was vital for competitiveness in the UK economy.
Overall further investment is required for more UK homes to benefit from super fast fibre optic broadband in the years ahead – so any funding from the Government would be welcome.
Price Of Broadband & Mobile Phone Calls Dropping
The price of broadband and mobile phone calls has dropped in the UK, according to a recent study carried out by the European Commission.
This has helped the telecoms industry to actually expand despite the economic downturn – with more customers paying less for the same good quality service.
The EU’s Telecoms Commissioner, Viviane Reding, said “Europe is the continent of mobile communications, with more and more people using mobile phones and mobile broadband services. Despite the global economic crisis, European consumers communicate more than ever with their phones and via the internet. This is good news for a sector that can help Europe defy the downturn.”
The survey revealed that take up of mobile broadband in the UK had reached 28.4% in January 2009 with prices dropping by 19% since 2007.
