{"id":29229,"date":"2021-11-15T10:17:05","date_gmt":"2021-11-15T10:17:05","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=29229"},"modified":"2021-11-15T10:17:05","modified_gmt":"2021-11-15T10:17:05","slug":"next-uk-infrastructure-assessment-to-focus-on-gigabit-broadband-takeup","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/11\/next-uk-infrastructure-assessment-to-focus-on-gigabit-broadband-takeup.html","title":{"rendered":"Next UK Infrastructure Assessment to Focus on Gigabit Broadband Takeup"},"content":{"rendered":"

The National Infrastructure Commission<\/a> (NIC) has today revealed the topics that will sit at the heart of their next (second) major assessment of the UK’s long-term infrastructure priorities, to be published in 2023, which among other things looks set to shift the focus on gigabit broadband from build to take-up.<\/p>\n

The Government’s \u00a35bn Project Gigabit<\/a> programme aims to extend 1000Mbps+ (1Gbps) broadband ISP speeds so that they’re available to at least 85% of UK premises by the end of 2025 and to get “as close to 100% as possible.<\/em>” The scheme assumes that commercial builds will be able to tackle the first 80%, thus leaving public investment to help the final 20% of hardest to reach areas (e.g. rural and semi-rural villages and towns etc.).<\/p>\n

NOTE:<\/strong> Gigabit broadband coverage should hit around 65% by the end of 2021, thanks both to Virgin Media<\/a>’s DOCSIS<\/a> 3.1 upgrade of Hybrid Fibre Coax (HFC) lines and the rapid rollout of Fibre-to-the-Premises (FTTP<\/a>) technology via multiple operators (Summary of UK Full Fibre Builds<\/strong><\/a>).<\/div>\n

The funding released for this will depend upon how the industry responds (i.e. so far only \u00a31.2bn<\/strong> has been released, but more will be unlocked if the industry shows it can deliver). As a complement to that, the Government supported \u00a31bn Shared Rural Network<\/strong><\/a> (SRN) project is also working to help extend geographic 4G<\/a> mobile coverage to 95% of the UK by the end of 2025 (this may also indirectly support the wider 5G<\/a> rollout).<\/p>\n

Broadly speaking, the NIC’s latest report<\/a> reflects the current progress and then attempts to set the tone for their next (second) major assessment of the UK’s national infrastructure (i.e. digital, energy, flood resilience, water and wastewater, waste and transport), which is due to be published in 2023 and will focus on what is needed for the next few decades (they do one of these assessments every 5 years).<\/p>\n

The NIC Identified Nine Key Challenges for the Second Assessment:<\/strong><\/span>
\n\u27a4 all sectors will need to take the opportunities of new digital technologies
\n\u27a4 the electricity system must decarbonise fast to meet the sixth Carbon Budget
\n\u27a4 decarbonising heat will require major changes to the way people heat their homes
\n\u27a4 new networks will be needed for hydrogen and carbon capture and storage
\n\u27a4 good asset management will be crucial as the effects of climate change increase
\n\u27a4 action is needed to improve surface water management as flood risk increases
\n\u27a4 the waste sector must support the move to a circular economy
\n\u27a4 improved urban mobility and reduced congestion can boost urban productivity
\n\u27a4 a multimodal interurban transport strategy can support regional growth.<\/p><\/blockquote>\n

In terms of digital connectivity (i.e. gigabit broadband and mobile), the report states that the second National Infrastructure Assessment will “consider barriers that are preventing the adoption of new digital technologies in infrastructure, and what policy and regulatory interventions may be needed<\/em>” (i.e. for the first time, it won’t focus on fostering rollout and will instead consider adoption and the benefits of use).<\/p>\n

We note that the NIC has previously called on the government to develop a strategy to encourage the take-up of new communications networks and services, although one has yet to emerge. But sadly this report doesn’t tell us anything particularly new or provide much detail on their train of thought, although we did perhaps get a better indication via a recent Westminster eForum speech from James Heath, the NIC’s CEO.<\/p>\n

James Heath, CEO of the NIC, said recently:<\/strong><\/p>\n

“At the Commission, we see two areas in particular where faster progress is needed:<\/p>\n

First challenge: We must avoid areas falling behind. We must avoid a new digital divide in gigabit broadband replacing the old divide in superfast broadband. There are millions of premises in the UK that will be hard to reach and where public funding will be necessary to connect them. These premises are not just in rural areas but also scattered across our towns and cities. While government has set aside \u00a35 billion for this task and BDUK has set out several phases of its public procurement programme, we do need to see a full plan with milestones and a target end-date for completing the rollout of high quality broadband to all hard to reach premises.<\/p>\n

Second challenge: The economic benefits of increased coverage of broadband networks will only be realised if the networks are widely and intensively used. We\u2019d like government to widen its focus from network rollout to demand stimulation particularly among smaller businesses, where we know there is a productivity dividend from technology adoption but where barriers to this adoption persist.<\/p>\n

And, finally, one of the questions that came up repeatedly at the global investor conference \u2013 and which was discussed earlier, is this: Is the UK\u2019s rollout model sustainable, or will gigabit broadband burst like the cable bubble did before it?<\/p>\n

The latter scenario is, of course, possible. There may well be an element of optimism bias in the business plans of some new entrants. And there is certainly a big difference between promising fibre rollout in presentations to investors and actually connecting premises on the ground.<\/p>\n

But I personally think the planning assumption that the vast majority of UK premises will \u2013 by the end of this investment cycle \u2013 have a choice of networks, is a strong one, as long as we maintain the right conditions. Yes, there is likely to be future industry consolidation but there may also be new co-investment and wholesale deals that could create different market dynamics. And if we do end up with a market structure in the UK where competition in new networks replaces the monopoly in the old ones, this should both benefit today\u2019s consumers but also mean that the UK is better placed for the next infrastructure investment cycle.<\/p>\n

…<\/p>\n

In the digital space, we won\u2019t focus this time on broadband rollout. This is because \u2013 as I\u2019ve set out today \u2013 we think the UK has a clear plan in place \u2013 and one that is working so far. We will of course continue to monitor progress against the government\u2019s broadband targets and may decide to do further work if the strategy were to stall.<\/p>\n

What we will focus on in the second Assessment is the potential for digital and data to transform all the other infrastructure sectors in the Commission\u2019s remit. The widespread use of digital technologies and data has the potential to cut costs, enhance service quality, improve resilience, and enable better demand management across a range of infrastructure services.”<\/p><\/blockquote>\n

A Call for Evidence process has been launched alongside today’s report, with interested stakeholders being invited to submit data to the NIC to inform work on the topics it has identified. The Commission will also undertake sector events, regional visits and social research as it develops its future recommendations.<\/p>\n

In terms of demand stimulation, it’s worth noting that the Gigabit Take-Up Advisory Group<\/strong> (GigaTAG), which is supported by Which?, Ofcom<\/a>, the FSB, CBI and other groups, has already published a useful report that proposed several changes to help Ofcom<\/a> and the Government boost take-up of 1Gbps capable broadband services (here<\/a>). We think this did a pretty solid job of highlighting the main issues, which the government are still in the process of “considering<\/em>” (i.e. no action has been taken, yet).<\/p>\n","protected":false},"excerpt":{"rendered":"

The National Infrastructure Commission (NIC) has today revealed the topics that will sit at the heart of their next (second) major assessment of the UK’s long-term infrastructure priorities, to be published in 2023, which among other things looks set to shift the focus on gigabit broadband from build to take-up.<\/p>\n","protected":false},"author":1,"featured_media":25322,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[61,406,471,419,56,38,1997],"class_list":["post-29229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-4g","tag-5g","tag-bduk","tag-docsis3-1","tag-fttp","tag-politics","tag-uk-gigabit-programme"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nNext UK Infrastructure Assessment to Focus on Gigabit Broadband Takeup - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The National Infrastructure Commission (NIC) has today revealed the topics that will sit at the heart of their next (second) major assessment of the UK's\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/11\/next-uk-infrastructure-assessment-to-focus-on-gigabit-broadband-takeup.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Next UK Infrastructure Assessment to Focus on Gigabit Broadband Takeup - 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