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Communications Workers Union Wants Spectrum Auction Cash Put into Broadband

Posted: 24th Mar, 2011 By: MarkJ
mobile broadband logoThe UK Communications Workers Union (CWU) has suggested that any proceeds coming out of Ofcom's forthcoming auction for 4G viable Mobile Broadband radio spectrum (i.e. 800MHz and 2.6GHz), which could be worth up to £4bn or possibly more, should be used to help fund the rollout of next generation superfast broadband ISP connections across the country.

At present the government's Broadband Delivery UK (BDUK) office has only allocated £530m to the task until 2015 (could rise to £830m by 2017), which will mostly come from the BBC's 3.5% Digital Switchover budget. We expect that this will still leave roughly 10% of the country without access to a proper next gen broadband connection.

The CWU believes that using money from the auction could also take the pressure off BBC funding cuts by using a different stream to fund broadband, while leaving the TV Licence Fee and digital switchover money where it is.

Andy Kerr, CWU Deputy General Secretary, said:

"We welcome the Ofcom sale of 4G spectrum but urge the government to seize this opportunity to use the funds as a welcome windfall to inject much-needed cash into superfast broadband infrastructure across the UK.

We believe that a government-led programme of investment in superfast broadband infrastructure is essential to prevent the UK slipping behind our European and global competitors. The internet is worth £100bn to the UK economy and that will continue to grow as e-commerce expands. However, the £830 million committed by Government until 2017 is a long way short of what is needed to take superfast broadband to all homes and businesses across the UK.

The current plan will leave remote areas in places such as East Anglia, Scotland and Cumbria with no rollout plans. Residents and businesses in these areas will lose out unless funding arrangements change. It also robs the BBC of funds instead of allocating new money for this important economic investment.

Early investment in universal broadband will pay dividends many times over so we urge swift action to put the UK at the head of the superfast broadband revolution."

On the surface this sounds like a good and fairly logical idea, although it does rather assume that the government hasn't already thought about how to allocate any potential proceeds, such as to help plug the country's massive deficit.

It's sometimes easy to forget that Ofcom's auction process has effectively been in development for several years and as a result the CWU's plea may have come far too late for it to have any real impact. That being said, it's not a bad idea. Credits to Thinkbroadband for spotting the link.
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