Is £28.8 billion a fair price for broadband by 2017?

In terms of getting quotes, the difference of £5.1 billion and £28.8 billion seems a little wide, but those are the figures that the Government is working on when it’s looking at the next generation broadband to at least 90 per cent of homes and businesses by 2017, according to an answer Teignbridge Richard Younger Ross got this week.

Minister of State, Department for Business, Innovation and Skills what estimate he has made of the cost of delivery of next generation broadband to at least 90 per cent. of homes and businesses by 2017; what proportion of that cost will be funded from the public purse; and what arrangements he plans to make for such funding.

The answer he received from financial secretary Stephen Timms was: The Digital Britain Report indicated that around 60 per cent. of homes are likely to be served by next generation broadband purely through market provision. The Government have proposed a supplement of 50p per month on each fixed copper line in order to raise £150 million-£175 million a year.

“This will provide a fund earmarked for supporting delivery of next generation broadband to at least 90 per cent. of homes and businesses by 2017. The exact proportion of public and private investment in relation to those areas not served on a purely commercial basis by the market will be determined by a competitive process. We will bring forward for Parliament’s approval legislation to deliver this fund in Spring 2010.

Richard also asked about the 2012 costs to get every household up to 2 meg per second.

“The Government set out in the Digital Britain report that it would make available £200 million of public funds to support delivery of the universal service commitment of two megabits per second by 2012. This will be drawn from a combination of the underspend on the Digital Switchover Fund (from the TV licence fee) and the £750 million BIS Strategic Investment Fund announced in the budget to support advanced industrial projects of strategic importance,” said Mr Timms.

• Do you want to get all your goods and services from the internet? Do you like getting your news and reading magazines on the web? Is this broadband push a good idea? Comments below please.

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