By: MarkJ - 22 June, 2010 (8:19 AM) - Score: 6053 - Fixed Line Broadband
The UK government appears to be seeking the cheapest, as opposed to the best, solution for our country's many broadband access woes. A newly posted official notice has revealed more about its political thinking on the matter, which looks set to favour any option that minimises public sector investment.Earlier this month the UK Secretary of State for Culture, the Olympics Media and Sport (DCMS), Jeremy Hunt, revealed his preliminary plans to improve UK broadband services (here). This included getting Broadband Delivery UK (BDUK), the delivery vehicle for the governments broadband policies, to hold a special industry event on 15th July where it will provide further details, announce several pilot schemes and discuss the best way forward.
As it stands the UK Government has two key broadband objectives. Firstly, that virtually every community in the UK will have access to basic broadband connectivity with a "minimum" access speed of 2Mbps being implemented by 2012 (Universal Service Commitment). Secondly, that it is committed to the roll-out of "superfast" broadband in remote areas of the UK at the same time as more densely populated urban areas, including public money for areas where the private sector cannot afford to go.
The government recently posted an official notice of their forthcoming industry event to the European Union's Journal and invited anybody with an interest and ability to deploy such services to attend. This included a brief mention about how they view the costing angle.
Quote from the Industry Event Notice
In respect of all USC and Superfast broadband delivery arrangements, the UK Government will remain supplier and technology neutral and, like the ‘Worked Example’ exercise, suppliers will be required to collaborate and partner with each other to deliver complete and integrated solutions.
Future competitions for funding, subsidies and other incentives, and/or procurements for works/service contracts will be developed and carried out in accordance with UK and EC rules and guidelines and so as to minimise the amount of public sector investment required and limit the potential to distort competition. This will be on an open tender basis and may involve different phases and/or lots.
Suppliers will be encouraged to reuse existing infrastructure (including incumbent and public sector networks) wherever possible, and third party access to new subsidised infrastructures and contractual clawback mechanisms to avoid over-compensation will be required to ensure compatibility with State aid rules. Parent company and/or other guarantees of performance and financial covenant may also be required.
In respect of all USC and Superfast broadband delivery arrangements, the UK Government will remain supplier and technology neutral and, like the ‘Worked Example’ exercise, suppliers will be required to collaborate and partner with each other to deliver complete and integrated solutions.
Future competitions for funding, subsidies and other incentives, and/or procurements for works/service contracts will be developed and carried out in accordance with UK and EC rules and guidelines and so as to minimise the amount of public sector investment required and limit the potential to distort competition. This will be on an open tender basis and may involve different phases and/or lots.
Suppliers will be encouraged to reuse existing infrastructure (including incumbent and public sector networks) wherever possible, and third party access to new subsidised infrastructures and contractual clawback mechanisms to avoid over-compensation will be required to ensure compatibility with State aid rules. Parent company and/or other guarantees of performance and financial covenant may also be required.
Nobody will be shocked or surprised by a government wanting to minimise use of public sector cash, especially given our current financial problems. However it could be dangerous if this were to result in the cheapest solutions being given favour, much as BP recently found out in the Gulf of Mexico.
Granted broadband won't be causing a colossal oil slick anytime soon but picking the cheapest option often results in short-term solutions that usually require even more significant investment at a later date to fix. Duct tape can hold a lot of things together but we would rather broadband policy wasn't one of them.
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Comments: 4
PhilTPosted: 22 June, 2010 - 11:49 AM
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The cheapest solution may at least mean more solutions being delivered from what is presumably a fixed budget - I note the USC applies to "virtually all" ie it is not truly universal.
GuyJPosted: 23 June, 2010 - 9:42 PM
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The clawback mechanism can be a useful way to introduce working capital into NGA delivery for those areas where low population density makes the incumbents disinterested.
After attending a (BSG?) workshop late last year on the subject of this USC and particularly the wooliness of the deliverables (upto 2Mbps download, unspecified upload, zero QoS), a colleague commented that giving everyone in a Notspot a 2 way satellite system would do the job.
The problem is that people are left with a better-than-nothing service that is highly contended, bandwidth limited, highly asymmetric upload, noticeable link latency (speed of light, distance to geo-stationary orbit and back and there and back).
If however that same level of funding (upto £200M and may be less) could be provided as gap funding on a least-first basis to deliver BOTH USC and NGA...
Or simply make the USC 2Mbps Symmetrical :)
Leon WolfesonPosted: 24 June, 2010 - 11:36 PM
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Indeed, I've had a friend go back from Satellite to ISDN simply because web browsing on Sat was a painful experience - he says worse than a 56k modem...
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