British Broadband too Slow, says Industry Group

Time is running out for Britain to implement it's next generation of broadband says the BSG (Broadband Stakeholder Group). Without these networks the UK could suffer social and economic setbacks within two years, it added.

|QUOTE|Conducting a report into next generation broadband networks, the BSG concluded that the UK's infrastructure needed to be vastly improved in order to keep up to speed with other countries.

"Broadband matters. There's plenty of evidence that broadband itself has had a very beneficial impact on economic performance" said Kip Meek, BSG chairman.

He warned that whilst the move into broadband had been successful, the hard work done to reach that position could count for nothing if the infrastructure was not upgraded to handle higher speeds.

Mr Meek added that there was also a lack of evidence that higher speeds would be possible on the UK's current infrastructure, whilst overwhelming competition made it unlikely that telecoms firms would invest in upgrades unless encouraged.

"The point we have come to, whatever technology is adopted be it fibre, wireless or whatever, is that there will be a hefty bill," said Mr Meek.

Most broadband services within the UK run at only 8 Mbps whilst services offering 100 Mbps are already common in places such as Korea and Japan.

"We have to create the circumstances in the UK where someone is prepared to write out the cheques to do that." continued Mr Meek.

The report recommended that the government should explore models of how it might get involved in the creation of next generation networks - also gaining a deeper understanding of it's importance.

New regulatory frameworks are suggested to encourage telecoms firms to invest whilst not denting the competitiveness within UK's market.

Mr Kip concluded that a two year period remained in which to confront the problem, or be left behind.

"We have to move from saying this is an interesting problem to here are the steps that enable us to move forward" he concluded.

A spokesman from BT commented that it was piloting higher broadband speeds over its 21st Century Network hoping to have them available in 2008.