UK Broadband Market - Introduction

Background: Broadband is the technology that allows ‘always on’ access to electronic communications at much faster speeds than have been available with traditional ‘dial-up’ internet connections.

Broadband has been seen as a vital component of the ‘knowledge economy’ that the Government has emphasised so strongly, and is also seen as a driver of economic growth and competitiveness.

In its written submission, the DTI cites evidence that suggests that the use of broadband could result in productivity savings of £3.5 billion and £1.2 billion cost savings for SMEs in Britain.

For businesses, broadband can transform the relationship between a company’s employees, and between a company and its suppliers or customers. For domestic users, broadband opens up a range of leisure possibilities such as on-line gaming, and film and music downloads. It also allows easier on-line shopping/banking and has the potential to enable access to information.

The Government has set targets for both the competitiveness and the extensiveness of the UK broadband market. However, in the short term there may be a trade-off, focussing on rolling out broadband may be at the expense of competition.

For take-up of broadband to rise in the UK, potential users need to be convinced of the benefits that they can gain from it. This will require a continued increase in the quality of the goods, services and products.

Content cannot be entirely separated from infrastructure matters and, to ensure that this content continues to develop, the speeds that constitute broadband will have to steadily improve as well.

The Government’s role is to facilitate the roll-out of broadband so that it is available to those who can benefit and to make certain that the regulatory framework ensures that commercial decisions by private companies are aligned with the wider economic and social needs of the country.

> Source: Trade & Industry Committee, UK BB Market, 2nd Report of Session 2003-2004.