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August 19, 2011

Scotland not happy with their broadband funding

The Scottish government are not happy with the amount of funding that the UK government has allocated them to help fund their broadband roll-out.

Scotland were allocated £68.8m from the £530m pot that was allocated to help fund the roll-out of broadband across the UK with the aim that we have the fastest broadband network in Europe by 2015.

However, Alex Neil, Scotland’s cabinet secretary for infrastructure said:

“I am disappointed with the allocation from the UK government towards the Scottish government’s ambition for roll-out of next generation broadband across the whole of Scotland.

…this announcement from the UK government has fallen short of the expectations of the Scottish economy to the overall costs of broadband roll-out in the remote and rural parts of Scotland.

For instance the cost to deliver next generation broadband across the Highlands and Islands alone has been estimated at up to £300m, therefore we do not regard the UK government’s allocation as a realistic contribution to meet Scotland’s broadband requirements.”

The rest of the £530m pot that was available through left over money from the digital switchover has also been allocated with England receiving £294.8m, Northern Ireland £4.4m and Wales £56.9m. There is a universal broadband target of 2Mb broadband speeds as a minimum out lined by the government.

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July 15, 2010

Broadband Summit taking place to sort out UK broadband

A “Broadband summit” is taking place today in London, to talk about ways to get fast broadband out to every part of the UK.

A pledge to make Britain the fastest broadband nation in Europe by 2015 has also been made and that a minimum broadband speed of 2Mb should be available to every home in Britain.

However, the Government are not likely to be offering the broadband industry big pots of money to help fund the roll out, there is still the £175 million left over from the digital switchover that is to be used and since the government scrapped Labours 50p per month “broadband tax” that was to be used to help fund next generation broadband and the fact that as a country we have a huge deficit with money the government can’t afford to start spending.

BT are investing £2.5bn of their own money to fund the roll out of fibre broadband to two thirds of the UK, however they say that around £2bn more will be needed to reach the remaining third of the country. These remaining areas being areas where it is not financially viable for BT to fund the roll out themselves.

The CEO of BT Openreach, Steve Robertson said:

As a society we need to make our minds up about what is an essential element of our social fabric. Today not having broadband makes people feel deprived.

The Culture Secretary, Jeremy Hunt said:

“There is currently nothing to stop telecoms or utility companies reaching commercial agreements to share their infrastructure, but very few agreements currently exist.

Before we embark on legislation or start committing scarce public resources, we need to explore these cost-effective ways of achieving our aims so I want to hear from companies about their proposals and willingness to work towards mutually beneficial commercial arrangements.”

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May 18, 2010

New Broadband Minister to be appointed this week

The UK is to get a new Broadband Minister by the end of this week to be part of the Department for Business, Innovation and Skills (BIS).

Ed Vaizey, the Culture Minister is rumoured to be one of the likely candidates for the position. The position will be to make sure that the whole of the country is able to get a minimum 2Mb broadband connection by 2012 as part of the Universal Service Commitment and also to look at ways to get the remaining third of the country that won’t have next generation fibre broadband to be wired up to it.

BT announced last week that they were going to spend an extra £1 billion to roll out a fibre optic network to 66% of the UK making their total investment around £2.5 billion.

Labour had hoped to use a 50p per month Broadband Tax to help fun the roll out of next generation broadband to rural areas that were not in places where it made it financially viable for companies such as BT  or Virgin Media to roll out fibre to these places.
However, the Conservatives had planned before the election on using money from the Digital Switchover which is raised from the BBC License fee to help with the roll out of fibre optic networks, although this would not be available until after 2012.

This new position would keep broadband as an important issue and is one that we feel is a key part to the UK and it’s economy, it may involve some heavy investment but it would also help with the recovery of the economy.

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