Posted: 06th Feb, 2012 By: MarkJ
New Vodafone sponsored research from consultancy firm
AT Kearney has revealed that UK internet traffic is expected to grow by an average of 37% every year until 2015, which rises to 84% for traffic delivered over Mobile Broadband networks. By 2015 mobile internet traffic will account for 11% of all usage (up from 2% in 2010).
According to a summary by the
Financial Times, the
UK internet economy is now valued at
£82bn. Some £45bn of that comes from mobile and ecommerce, while £37bn comes from connectivity services, online search advertising and device manufacturing. In other words every £1 spent on UK internet access (fixed and mobile) generates approximately £5 in revenue.
It's perhaps no coincidence that AT Kearney's report comes in the same week as the UK government is due to release its
Green Paper for a new
Communications Bill, which is intended to replace the
2003 Communications Act (i.e. the rules that govern much of Ofcom UK's remit to regulate).
The new bill is likely to expand Ofcom's regulatory controls beyond existing broadband / ISPs, telecoms and television provisions, potentially giving it more power to govern IPTV content. Internet piracy and related website blocking measures are also likely to be re-examined in the bill.
Ofcom threw out mandatory web blocking provisions from the
Digital Economy Act (DEA) last year (
here), saying they would "
would not be effective", although a voluntary code between ISPs and Rights Holders is still in development (
here). Worryingly the FT suggests that the threat of regulation (i.e. to impose mandatory blocking) could return, assuming the voluntary code was to fail.
This week's Green Paper will be followed by a
White Paper and
Draft Bill before
Spring 2013. The government hopes that its new act would ultimately be put in place by 2015 and "
support the sector for the next 10 years and beyond".