Telecommunications

Government launches consultation on next-generation broadband

(GUARDIAN) - The government is seeking public advice on how to spend £1bn to ensure that almost all of Britain gets superfast broadband this decade – should it hook up rural communities first, or the suburbs?

The Next Generation Access (NGA) fund, which would come from a 50p a month levy on all telephone landlines proposed in the Digital Economy bill, is intended to persuade telecoms companies such as BT and Virgin Media to install fibre-optic cable to rural and suburban households where it might otherwise be unprofitable.

But the key question facing the government is whether it would be more effective to encourage telcos to install fibre-optic cable, capable of carrying two-way video and other high-speed internet links, in the most geographically remote areas – or provide funding for installation at locations that are close to those where fibre would be put in anyway without intervention due to market demand.

The two opposing approaches – dubbed “outside-in” and “inside-out” – are outlined in a consultation published today by the Department of Business, Innovation and Skills.

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