Sunday, September 14, 2008

Govt intervention not needed on high-speed broadband

A review for the government has concluded that there is no need for panic over the speed of Britain's broadband networks compared to the 100Mb/s+ more common in Asia:

The high costs of [Next Generation Access], and high expectations of what it can deliver, tend to raise expectations in some quarters that the Government should make a major intervention — such as a large subsidy or structural change to regulation — to support the market. However, it is the conclusion of this review that the case for such a major intervention is weak at best.

Author Francesco Caio, former chief executive of Cable and Wireless, instead suggests that the government removes obstacles to market provision of this access, for example by coordinating the build-out of fibre optic cables.

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