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Forum Brief: Broadband
BT has this week submitted evidence to a Commons trade and industry select committee investigation into broadband.
"Too many broadband experts in BT are spending too much time dealing with detailed regulatory inquiries instead of making broadband available to more customers and creating and delivering innovative new services," the company said.
A spokesman for the DTI told ePolitix.com: "We feel that the broadband market in the UK is developing. We want industry to work together with the government to create a 100 per cent take up of broadband in the UK."
Forum Response: Institute of Directors
A spokesman for the IoD told ePolitix.com: "The government set a widely publicised target of having the most competitive and extensive broadband network in the G7 group of industrialised countries by 2005.
"The UK was late to the game and after a slow start we are still playing catch-up to a certain extent. That said, UK business is rapidly waking up to the benefits of fast internet access.
"However, there is still much work to be done in raising awareness of broadband in rural areas. The government must work to close the digital divide."
Forum Response: Country Land and Business Association
Dr Charles Trotman, rural economy adviser, told ePolitix.com: "The one question we are continually asked is when will rural areas get affordable broadband.
"There is no doubt that the rural-urban digital divide will widen unless we see tangible broadband connectivity in rural areas.
"We do not believe that reaching 100 per cent penetration is an ambitious target; it should be the norm.
"The government has undoubtedly made great strides in public sector broadband and we agree that, as long as rural business is able to piggy back onto that infrastructure, the government's goal can be met.
"It is clearly the responsibility of all to ensure that there is access to affordable broadband. But the constraints have to come down: if there are regulatory barriers, they have to be eased.
"The CLA will do its bit by continuing to push for affordable broadband in rural areas and indeed, we are the only nationally based rural organisation to do so.
"Significant progress has been made: now is the time for all of us to push towards that final mile."
Forum Response: Kingston Communications
Huw Saunders, group regulatory affairs and technology development director, told ePolitix.com: "Kingston Communications also gave evidence this week to TISC as part of a delegation from the UK Competitive Telecommunications Association.
"Our submission emphasised that the Alternative Network ('Altnet') sector continues to have a key role to play in the rollout of broadband.
"Broadband is more than just BT provided DSL, encompassing alternative network infrastructure (including wireless) and Unbundled Local Loops.
"The UK needs a level playing field in the regulation of the communications industry so that competition can continue to develop at all levels of the end to end value chain.
"The present regulatory environment has allowed BT to capture significant market share in the provision of broadband, but has not enabled such fully effective competition to develop.
"A key concern is that, in order to be sure to reach its stated goal of 100 per cent coverage in a very short timeframe, government intervenes with subsidy for particular market participants, and distorts competition where no market failure exists.
"Only when it is quite clear that the operation of the competitive market will not deliver the required goal should such intervention be considered, and then only in a technology neutral and 'open tender' manner.
"In the mean time, we have concerns that a lack of "joined up" government is damaging the industry. UKCTA recommended that the Committee investigated the impact of a number of areas of existing or emerging Government policy, that significantly affected the Altnet cost base and ability to compete. These include:
"Traffic management, where additional legislation threatens to dramatically increase the cost or actually prohibit the connection of customers and rollout of broadband infrastructure; and Business rates where there is no level playing field in the taxation of communications networks, with BT and alternative networks being taxed on a different basis, and altnets bearing a proportionately higher burden."
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