(Image Credit: iStockPhoto/Ursula Alter)
The UK government has set a national broadband speed target of 10 Mbps by 2020, a goal it expects to meet. While that figure is easily attainable, a new report from the Institute of Directors (IoD) criticizes the government for what it calls a “poverty of ambition” on broadband policy.
Dan Lewis, the report’s author and a senior adviser on infrastructure policy at the IoD, argued that meeting a 10 Mbps Universal Service Obligation is only feasible because the target itself is so low. He warned against repeated, costly upgrades to the legacy copper network and urged policymakers to plan for a modern physical infrastructure capable of sustaining Britain’s leading role in digital business innovation.
Rather than settling for 10 Mbps, the IoD recommends a far more ambitious target: increasing national speeds to 10 Gbps by 2020. The report follows a survey of business directors about how faster broadband would affect their organisations.
“Now is the time to set a bold new target for genuinely world-beating broadband,” Lewis said. “We have the leading internet economy in the G20, yet download speeds are mediocre and fibre optic coverage is inadequate.”
Survey results cited in the report show strong business demand for faster connections: 78% of directors said substantially faster broadband would boost company productivity, 60% believed it would make their business more competitive, and 51% said higher speeds would enable more flexible working arrangements for staff.
Some industry observers point to BT’s control of Openreach, the national broadband network operator, as a factor limiting investment and innovation. Telecoms regulator Ofcom reviewed whether Openreach should be separated from BT, and last week concluded that Openreach can remain part of BT provided new regulatory conditions are applied.
Lewis added that data demand is accelerating rapidly, and emerging technologies such as virtual reality and the Internet of Things will push requirements even higher. “Our network is behind the curve,” he said, repeating the IoD’s critique that the government’s current target lacks ambition.
Business leaders also expressed frustration with Openreach’s service levels. Among IoD members who had dealt with Openreach for installations or repairs, only about one in three reported satisfaction with the service they received.
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