Posted: 04th Mar, 2010 By: MarkJ

The Government has today launched a new body, Broadband Delivery UK (BDUK), which will drive forward the Universal Service Commitment (USC) to deliver "
at least" 2Mbps to every household by 2012. It will also manage the spend of its £1bn '
Next Generation Fund' (NGF), which comes from the controversial 50p phone line tax, to deliver next generation broadband to 90% of the country by 2017.
The group, or bureaucracy if you prefer, has been launched alongside a report that forecasts the future reach of next generation broadband across the UK up to 2017 and based on three scenarios (
Download the 114 Page .PDF).
1. A purely market-led approach,
2. A network subsidised by the Digital Britain ‘Next Generation Fund’ and;
3. Local interventions (such as the Yorkshire Forward Digital Region initiative in South Yorkshire) supplementing a subsidised network.
Stephen Timms, Minister for Digital Britain, said:
"Taking advantage of new technologies like next generation broadband is vital to the growth of the UK’s economy and it’s important that all homes and businesses can access the opportunities faster speeds bring.
This report makes clear that without public intervention, some rural areas and less well off communities will be left behind and unable to reap the economic, health and education benefits superfast broadband offers. Our proposed £1billion Next Generation Fund will help bring the benefits of super fast broadband to more communities.
We do not want to risk the digital gap widening, which is why we have put a team of experts in place to ensure further investment is targeted at those people without adequate access."
The report naturally supports the "
effectiveness" of Government’s proposed Next Generation Fund in the form of a 50p +vat monthly tax on all fixed lines in increasing next generation broadband coverage to 90% of the population by 2017 – 20% more than predicted if left to an entirely market-led approach.
Interestingly it also points to a number of ongoing initiatives, which seek to remove barriers to, and increasing the likelihood of, investment in NGA networks. One of these is clarifying the rules surrounding the valuation of fibre assets by the Valuation Office Agency (VOA), who are said to be working with the Broadband Stakeholder Group (BSG) to provide clarity on the current regime. We would rather they just cut it.
UPDATE - 5th March 2010Consumer Focus response to the launch of Broadband Delivery UK.
Jillian Pitt, digital expert at Consumer Focus, said:
"Equality of access and affordability must drive considerations to roll-out next generation broadband across the UK. While we welcome the Government’s commitment on next generation broadband, the gap between the haves and have nots is widening, with the market delivering to affluent and highly populated urban areas.
Delivery of broadband access cannot just be left to the market. It is the areas being left behind that have the greatest need in terms of communication, access to services, and being able to compete commercially. The Government must ensure broadband is available to everyone regardless of location and income.
More also needs to be done to understand why many vulnerable consumers think the internet is irrelevant to them, and to promote the education, work and financial opportunities it can offer."